SHIFT Happens! BIG CHANGE AND WHAT TO DO ABOUT IT

SHIFT Happens
Barbara Shannon
GreatChangeBox.com
Including)insights)from)John%Hurley;%John%Seeley%Brown;%Lang%Davison;%Deloi7e%Center%for%the%Edge;%Robert%J.%Gordon;%Tomas%Sedlacek;%Daniel%Pink;%Richard%Florida%

You$can’t$run$this$business$by$the$le2,$intellectual,$
analy4cal$side$of$the$brain.$We$are$in$the$arts$and$
entertainment$business,$and$we’re$pu<ng$a$huge$
emphasis$on$crea4vity$and$world?class$design.$

GM$Vice$Chairman$Bob$Lutz$$

At$Nike$we$go$beyond$process$eﬃciencies.$Clear$goals,$
great$people,$empowerment$and$trust$move$faster$and$
beKer$than$too$much$process.$$

Nike$CIO$–$Roland$Paanakker$

&Global&Business&Transforma:on&Summit&

TOMAS&SEDLACEK&

&Global&Business&Transforma:on&Summit&

Autonomy!)
Learning!)
Making)a)Diﬀerence!)

CONNECTION
COMPUTING&POWER&
Digital&Storage&
Bandwidth&

The%ShiG%Index%2011%

CONNECTION

INFRASTRUCTURE&
Internet&Users&
Wireless&Subscrip:ons&
&


CONNECTION

ECONOMIC&FREEDOM&
$

FLOW

PHYSICAL&FLOW&
Migra4on$to$crea4ve$ci4es$
Travel$volume$
Movement$of$capital$

VIRTUAL&FLOW&
Inter?ﬁrm$knowledge$
Wireless$ac4vity$
Internet$ac4vity$
$

FLOW


FLOW


AMPLIFIERS&
Worker$passion$
Social$Media$

IMPACT

COMPANIES&
Asset$Proﬁtability$
ROA$Performance$Gap$
Firm$Topple$Rate$
Labor$Produc4vity$


ROA$for$US$Companies(1965$–$2010)$

FIRM$ROA$TOPPLE$RATES$(1965$–$2010)$
Topple$rate$for$companies$>$100M$increased$40%$over$ﬁrms$<$100M$

>$100M$Sales$

Labor&Produc:vity*&

Sta4c$
Decrease$

ROA$

Increase$

Low&Increase&

Moderate&
Increase&

High&Increase&

*%Output%of%
goods%and%
services%per%%
labor%hours%
required%to%
produce%
that%output%

ROA$of$US$companies$=$¼$of$what$it$was$in$1965
$
$

Topple$rate$of$big$companies$accelera4ng$at$3X$rate$of$smaller$ﬁrms
$
$$
$
$

Average$tenure$in$S&P$2011$=$10$–$20$years$VS$50$–$100$YRS$in$1965
$
$
Employees$want$meaning$over$money!
$
$
$

PASSION
When$people$engage$
passionately$with$their$
work,$they$seek$ways$to$
connect$with$others$who$
share$their$passion$and$
who$can$help$them$
improve$faster.$

DeloiTe&ShiU&Index&

Deloi7e%Passionate%Workforce%Study%2011%%

MORE SMALL MORE PASSION
Passionate$
Engaged$
Passive$
Disengaged$

1$–$99$

100$–$999$
$

1000$–$4000$
$

!  5000$

SHIFT Happens! BIG CHANGE AND WHAT TO DO ABOUT IT

NOW!&

THEN&

SMALL&IS&BIG&

BIG&IS&BIG &

Too&big&and&too&fast&fails&
Seek&Sustainability&
Organic&Growth&+&Thoughul&Acquisi:on&

Bigger&is&beTer&
Seeking&Growth&
Acquire&to&Grow&

&
ACCELERATE&THROUGH&RELATIONSHIPS$

ACCELERATE&THROUGH&EFFICIANCY

Structure&to&Scale&Talent&
Customer&Driven&Customiza:on&
Pull&
Partnerships&and&Trust&
Sharing&for&Value&&
Innova:ng&from&the&Core&&
Meritocracies&
Purpose/Mastery/Control&

Structure&to&Scale&Eﬃciency&
Product&Driven&Standardiza:on
Push
&
&
Transac:ons &&
Protec:ng&IP &
&&
Innova:ng&on&the&Edge &
Hierarchies&
Performance&Targets&

&
&&
&

HIGH&VALUE&SKILLS&

HIGH&VALUE&SKILLS

&

&

Tacit&Knowledge&

Explicit&Knowledge
Pursuit&of&Excellence

&
&

&&
&&

Performance&Reviews

&

&&

&

&&

&&

&

Passionate&quests&

Real&Time&Feedback&
$

SHIFT Happens! BIG CHANGE AND WHAT TO DO ABOUT IT

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