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From Top-down control to Ground-up Community Stewardship

IPS Community Forum 2020

An open-source project

With www.oppi.live

santosh@oppi.live

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Enabling the wisdom of crowds to govern the system

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Reinventing Organizations by Frederic Laloux

McKinsey consultant for 10 years, 4 yrs on his own, energy and purpose. He felt soulless and unhealthy

Observation that something is broken with the way we run organizations and the focus on beating competition, gaining market share and increasing profits is probably not the right focus to have.

We are all born artists who are highly creative and innovative. But somehow as the years go by, we get conditioned by the rigidity of the education system and the bureaucracy of our organizations.

Observation that just like from an evolutionary and historical point of view, human beings have evolved along multiple stages of consciousness, so have organizations.

For the next 2½ years, living frugally and mostly on savings, Mr. Laloux researched organizations that fit a series of criteria he developed, with the intention of writing a book about what he found. Over time, he settled on 29 principles that characterized a new model for organizations. He focused on 12 companies he considered models, seven based in the United States and five in Europe; nine for-profit and three nonprofit.
The smallest had 100 employees, the largest 40,000. One was a secondary school; another, a nursing organization. The rest ranged across businesses as disparate as tomato processing, electricity production and distribution, technology consulting and hydraulics cartridge valve and manifold manufacturing.

Global Teal Organisations

Sun Hydraulics - USA, UK, Germany, South Korea, China, India - manufacturer of valves and hydraulic manifolds (which regulate fluid flow between pumps and actuators in a hydraulic system)

Teal Organisations in the UK
We-Q - UK - A survey tool to prompt conversations in the directions of the key teal breakthroughs. Self management, wholeness and evolutionary purpose.
The John Lewis Partnership - Entirely worker-owned democratic organisation in the UK employing ~90,000 people. They consider themselves an ‘experiment in industrial democracy’

Teal Organisations in Europe
Buurtzorg - Netherlands - High-quality, relatively low-cost home nursing care –
Buurtzorg’s patients heal faster, require only half the amount of care, experience one-third fewer emergency hospital admissions and have shorter average stays when they are hospitalized.
Ernst & Young estimated that the Netherlands would save nearly $3 billion a year if all home care organizations achieved Buurtzorg’s results. Scaled to the United States population, the number would rise to $50 billion in savings.

Evangelischen Schule Berlin - Germany
Heiligenfeld - Germany - A mental health hospital
Favi - France - a brass foundry within the car industry
Teal Organisations in the USA
Morning Star - California - Tomato ingredient processor
Patagonia - California - Manufacturer of climbing gear and outdoor apparel

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Reinventing Organizations by Frederic Laloux

Qs. 1. How do implement these principles in our organization?

Qs. 2 How do we address pushbacks and resistance to this new paradigm?

https://thejourney.reinventingorganizations.com/videos.html

In the current model you have a privileged group of leaders at the top who say I know what is best for us, I know where to go, I know what we need to do to get there, and then organizing the workforce under them to get the organization there. I don’t know exactly where I want to go, what I expect of you to help me get there, and I mould you for the organization, the people mould the organization in a process of co-creation.

Everyone has to completely unlearn everything they have learnt and applied in the past and start from zero, from a beginner.

Like previous leaps to new stages of management, the new model comes with a number of important breakthroughs:

• Self-management. Teal organizations operate effectively, even at a large scale, with a system based on peer relationships. They set up structures and practices in which people have high autonomy in their domain, and are accountable for coordinating with others. Power and control are deeply embedded throughout the organizations, no longer tied to the specific positions of a few top leaders.
• Wholeness. Whereas Orange and Green organizations encourage people to show only their narrow “professional” selves, Teal organizations invite people to reclaim their inner wholeness. They create an environment wherein people feel free to fully express themselves, bringing unprecedented levels of energy, passion, and creativity to work.
• Evolutionary purpose. Teal organizations base their strategies on what they sense the world is asking from them. Agile practices that sense and respond replace the machinery of plans, budgets, targets, and incentives. Paradoxically, by focusing less on the bottom line and shareholder value, they generate financial results that outpace those of competitors.

Changing Paradigms at Buurtzorg
Buurtzorg, a large Dutch nursing care provider, is a good example of an organization running with Teal management structures and practices. Since the 19th century, every neighborhood in the Netherlands has had a local nurse who makes home visits to care for the sick and the elderly. These nurses operated largely autonomously until the early 1990s. Then, to maximize efficiency and reduce costs, the government created incentives for care-giving agencies to merge into larger enterprises.
The new agencies, most of which were private companies, gravitated toward an Orange paradigm. Seeking to minimize downtime and allocate staff flexibly, they set up centralized call centers; instead of calling their nurse personally, clients now had to dial the center. Planners were hired to devise daily visiting schedules that minimized travel times. The agencies instituted time standards: 10 minutes for intravenous injections, 15 minutes for bathing, and 2.5 minutes for changing a compression stocking. Barcode stickers, placed on patients’ front doors, tracked the nurses’ progress so central managers could analyze their efficiency. As these organizations consolidated, they added more layers of management, all with the intention of increasing efficiencies and squeezing out costs.
The outcome has been distressing to patients and nurses alike. Clients, who are often elderly, have to cope with new faces in their home at every visit. They must repeat their medical histories to hurried nurses who have no time allotted for listening. The nurses, for their part, find these working conditions degrading. They know they should spend more time trying to understand the changing conditions of their patients, but they simply can’t. The whole system is prone to errors, conflicts, and complaints.
Buurtzorg’s purpose is not to give shots and change bandages efficiently but to help elderly patients live a rich and autonomous life.
Buurtzorg (the name means neighborhood care in Dutch) was founded in 2006 by Jos de Blok, who had experienced these problems firsthand, as a nurse for 10 years and then as a manager. His new organization is extraordinarily successful, having grown from four to 9,000 nurses in its first eight years and achieving outstanding levels of care. He set up the company as a self-managing enterprise. Nurses work in teams of 10 to 12, each team serving around 50 patients in a small, well-defined neighborhood.
Buurtzorg has a distinctive outlook on the nature of care. Its purpose is not to give shots and change bandages as efficiently as they can, but to help its patients live, as much as possible, a rich and autonomous life. Nurses regularly sit down for coffee with their patients. They help them structure their own support networks and reach out to families and neighbors. Patients see the same one or two nurses all the time, and often form deep bonds of trust and intimacy with them.
Clients and nurses love Buurtzorg. Only eight years after its founding, its market share has reached 60 percent. Financially, the results are stellar, too. One 2009 study found that Buurtzorg requires, on average, only 40 percent of the care hours needed by a more conventional approach, because patients become self-sufficient much faster. Emergency hospital admissions have been cut by a third, and the average hospital stay of a Buurtzorg patient is shorter. It’s estimated that the Dutch social security system would save $2 billion per year if the entire home-care industry adopted Buurtzorg’s operations model.

Self-Management and Its Misconceptions
Buurtzorg’s 9,000 employees operate entirely with self-managing practices. Local teams of 10 to 12 nurses decide which patients to serve, how to allocate tasks, where to rent offices, how to integrate with the local communities, which doctors and pharmacies to work with, and how to collaborate with nearby hospitals. They monitor their own performance and take corrective action if productivity drops. Teams don’t have team leaders; management tasks are spread across the members, all of whom are nurses.
One common misconception about self-management is that everyone is equal and decisions are made by consensus, which requires endless meetings. The truth is very different. Self-management requires a whole set of interlocking structures and practices, so that decision rights and power flow to any individual who has the expertise, interest, or willingness to step in to oversee a situation. Fluid, natural hierarchies replace the fixed power hierarchies of the pyramid. This requires explicit training. At Buurtzorg, all new team members take a course called Solution-Driven Methods of Interaction, learning sophisticated listening and communication skills, techniques for running meetings and making decisions, and methods of coaching one another and providing perspective.
You might assume that all this is managed through staff functions — the source of capability and power in many Orange and Green organizations. But Buurtzorg’s 9,000 nurses are supported by fewer than 50 staff people. The nurses do their own recruiting and purchasing, contracting for specialized medical or legal expertise when needed. They align with the larger organization not through rules and procedures, but through the collaboration methods they learned. A powerful internal social network allows them to draw on guidance and medical expertise from fellow nurses in other parts of the country, many of whom they’ve never met.
The Embrace of Wholeness
In Amber, Orange, and Green organizations, people typically show up wearing a mask: the bishop’s robe, the doctor’s white coat, and the executive’s suit all embody subtle, but real, expectations. Leaders fear that if people brought all of themselves to work — their moods, quirks, deepest aspirations, and uncertainties — things would quickly fall into disorder. Most people adopt an air of resolution and determination, favoring their masculine, rational selves. It feels unsafe to reveal the caring, inquiring, intuitive, and spiritual aspects of the self, or to express a desire for meaning. Many of us end up disowning some fundamental aspects of our selves. When an organization feels lifeless, is it because we bring so little life to work?
Teal organizations start from the premise, resonant with many wisdom traditions, that a person’s deepest calling is to achieve wholeness. These organizations engender vibrant workspaces and practices where trust flourishes. People feel they can truly be themselves. Simple management practices foster a sense of personal connection. At Patagonia’s headquarters in Ventura, Calif., for example, the company maintains a child development center for employees’ preschoolers. Children’s laughter and chatter are regularly heard; kids visit their parents’ desks, join adults for lunch at the cafeteria, and run around in the playground outside. One sometimes sees a mother nursing her child during a meeting. At another Teal company, Sounds True, people regularly bring their dogs to work. Meetings often take place with two or three dogs lying at people’s feet. Having children and animals present tends to reconnect people with deeper parts of themselves; they see one another not only as colleagues, but as part of a common humanity.
One harbinger of the rise of consciousness in the business world is the support given to contemplative practices. It’s becoming fashionable, even in Wall Street banks, to offer meditation classes. But these are often treated as add-ons, separate from the real work. At the Heiligenfeld hospital chain inner work is woven deeply into daily life. Every week, colleagues from their five hospitals come together for 75 minutes of intensive, reflective dialogue about a theme such as dealing with risks or learning from mistakes. Heiligenfeld also devotes four days per year to silence. The staff speaks only when needed, in whispers; patients engage in forms of therapy that require no words, such as walks in the woods or painting sessions. People learn to interact from a deep place when words are not at hand.
The quest for wholeness can also be seen on the factory floor. At FAVI, a French automotive supplier, all engineers and administrative workers are trained to operate at least one assembly-line machine. When orders must be rushed out, white-collar workers come in to run the machines for a few hours. It’s a wonderful community-building practice. People in engineering and administrative roles work under the guidance of the machine operators. They see for themselves how hard the work on the machines can be and how much skill it involves.
FAVI also has an in-depth onboarding process that ends with new teammates writing an open letter to the colleagues they have joined. The letters often describe how, perhaps for the first time in their career as a machine operator, their voice counts at work and they are considered worthy of trust and appreciation.
Evolutionary Purpose
Most organizations define a purpose for themselves in the form of a mission statement, which is typically engraved on a plaque in the headquarters lobby. Most of these statements, of course, sound hollow. The espoused purpose can’t compete with the pursuit of profits or competitive advantage.
Buurtzorg’s purpose, as discussed above, is to help sick and elderly patients live a rich and autonomous life. Its competitive advantage is the way it fulfills that purpose, with self-organization and wholeness. If it were a more traditional organization, it would try to keep this competitive advantage secret, and gain market share accordingly. Founder de Blok did the opposite. He wrote a book (Buurtzorg: Menselijkheid Boven Bureaucratie, [Boom Lemma uitgevers, 2010], coauthored with Aart Pool, whose title translates as “Humanity above Bureaucracy”) in which he documented Buurtzorg’s revolutionary ways of operating in great detail. He accepts all invitations from competitors to explain his methods, and acts as an advisor for two direct competitors without compensation.
“The whole notion of competition makes no sense,” says de Blok. “If you share knowledge and information, things will change more quickly.”
Making purpose the cornerstone of an organization has profound consequences for leadership. In today’s dominant management paradigm (Orange), leaders are supposed to define a winning strategy and then marshal the organization to execute it, like the human programmer of a machine who controls what it will do. In the Teal paradigm, founders and leaders view the organization as a living entity, with its own energy, sense of direction, and calling to manifest something in the world. They don’t force a course of action; they try to listen to where the organization is naturally called to go. None of the organizations I researched has a strategy document. Gone are the often dreaded strategy formulation exercises, and much of the machinery of midterm plans, yearly budgets, cascaded KPIs, and individual targets. Instead of trying to predict and control, they aim to sense and respond.
FAVI uses a metaphor to explain this. Other companies look five years ahead and make plans for the next year. They prefer to think like farmers: Look 20 years ahead, and plan only for the next day. A farmer must look far out when deciding which fruit trees to plant or which crops to grow. But it makes no sense to plan a precise date for the harvest. One cannot control the weather, the crops, the soil; they all have a life of their own. Sticking rigidly to plan, instead of sensing and adjusting to reality, leads to having the harvest go to waste, which too often happens in organizations.
Practices based on sensing and responding, combined with self-management, lead to high levels of innovation. Two nurses on a Buurtzorg team found themselves pondering the fact that elderly people, when they fall, often break their hips. Could Buurtzorg help prevent this? Their team created a partnership with a physiotherapist and an occupational therapist from their neighborhood. They advised patients on small changes they could bring to their home interiors, and changes of habit that would minimize the risk of falling. Happy with their success, they approached de Blok to suggest turning “Buurtzorg+” (Buurtzorg + prevention) into a national program.
Had de Blok been a traditional CEO, he might have analyzed the idea and, if he approved it, assigned a team in headquarters to develop a comprehensive implementation plan. His actual answer was much humbler: Why should he, rather than the system itself, decide if this was a wise thing to do? He suggested that the same team of nurses package their approach and disseminate the idea on the company’s internal social network. Hundreds of teams showed interest and the idea quickly caught on. Within a year, almost all teams had incorporated prevention into their work using that model.
In a self-managing, purpose-driven organization, change can come from any person who senses that change is needed. This is how change has occurred in nature for millions of years. Innovation doesn’t happen centrally, according to plan, but at the edges, when some organism senses a change in the environment and experiments to find an appropriate response. Some attempts fail to catch on; others rapidly spread to all corners of the ecosystem.
Becoming a Teal Organization
Some companies, like Buurtzorg, are advanced on all three Teal breakthroughs: self-management, wholeness, and evolutionary purpose. Others are more advanced in one area than others — FAVI in self-management, Heiligenfeld in wholeness. None of the Teal companies I have identified have the scale of the largest Orange companies (such as Walmart) or Green ones (such as Southwest Airlines). This is still the dawn of the Teal paradigm. However, its promise is suggested by the success these organizations are having.
Every stage of organizational evolution is more mature and effective than the previous stage, because of the inherent attitude toward power. A Red leader asks, How can I use my power to dominate? An Amber leader asks, How can I use it to enforce the status quo? An Orange leader asks, How can we win? A Green leader asks, How can we empower more people? A Teal leader asks, How can everyone most powerfully pursue a purpose that transcends us all?
Research suggests that there are two — and only two — necessary conditions for developing a Teal organization.
1. Top leadership. The chief executive must have an integrated world view and psychological development consistent with the Teal paradigm. It is helpful if a few close colleagues share this perspective.
2. Ownership. Owners of the organization must also understand and embrace Teal world views. Board members who don’t get it, experience shows, can temporarily give a Teal leader free rein. But when the organization hits a rough patch or faces a critical choice, owners will want to regain control in the only way that makes sense to them: appointing a CEO who exerts top-down, hierarchical authority.
What about businesses, nonprofits, schools, hospitals, government agencies, and other institutions where these conditions are not in place? Can a middle manager hope to influence an entire enterprise by showcasing Teal practices locally? As much as I would like to believe this is possible, my hopes are not high. Experience shows that it takes more than a successful local example to catalyze this sort of system-wide change.
However, as a middle or senior manager, you can introduce some elements of the new paradigm for your own benefit and that of your colleagues. Practices that encourage people to show more of their true selves might come across as unusual, but are unlikely to raise red flags with top leadership. Some elements of self-management can be introduced; for example, instead of imposing new targets, ask team members to determine, in a peer-based process, which targets could be changed. If the team functions well, don’t attend the meeting. Let them come up with the best solution on their own so the targets will be theirs. Or when it’s time to appoint someone to report to you, don’t do it yourself. Let the team one level below write up the job description, interview candidates, and select their boss. Executives who have tried this find that subordinates take choosing their boss very seriously, and the process gives the boss a much stronger working relationship with the team.
The full benefit, of course, accrues to those organizations that fully embrace the new paradigm. When I spent a day with de Blok in the small headquarters of Buurtzorg, I was struck by how much simpler work life could be. Buurtzorg is a 9,000-person organization growing at breakneck speed. But after several hours of conversation, I realized we hadn’t been interrupted once. No urgent phone calls; no assistant coming in to whisper in the CEO’s ear that something had come up. Work in Teal organizations seems to unfold so easily it sometimes verges on the magical. Control and self-correction is embedded in the system, and no longer requires leaders to be on top of everything at all times.
In the past, with every change in consciousness (from Red to Amber to Orange and to Green), more powerful and life-enhancing forms of management have emerged. After the full emergence of the Teal paradigm, we will probably look back and find the organizational forms and practices of the late 20th and early 21st century alienating and unfulfilling. Already, it’s clear that we can create radically more productive, soulful, and purposeful businesses and nonprofits, schools, and hospitals. We are at an inflection point: a moment in history where it’s time to stop trying to fix the old model and instead make the leap to the next one. It will be better suited to the complexity and challenges of our times, and to the yearning in our hearts.

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Reinventing Organizations by Frederic Laloux

The Buurtzorg model:

Humanity over Bureaucracy

The onion model assembles the building blocks for independence based on universal human values:

People want control over their own lives for as long as possible
People strive to maintain or improve their own quality of life
People seek social interaction
People seek ‘warm’ relationships with others.

Buurtzorg has a distinctive outlook on the nature of care. Its purpose is not to give shots and change bandages as efficiently as they can, but to help its patients live, as much as possible, a rich and autonomous life. Nurses regularly sit down for coffee with their patients. They help them structure their own support networks and reach out to families and neighbors. Patients see the same one or two nurses all the time, and often form deep bonds of trust and intimacy with them.

One common misconception about self-management is that everyone is equal and decisions are made by consensus, which requires endless meetings. The truth is very different. Decision rights and power flow to any individual who has the expertise, interest, or willingness to step in to oversee a situation. Fluid, natural hierarchies replace the fixed power hierarchies of the pyramid.

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Seeking to minimize downtime and allocate staff flexibly, they set up centralized call centers; instead of calling their nurse personally, clients now had to dial the center. Planners were hired to devise daily visiting schedules that minimized travel times. The agencies instituted time standards: 10 minutes for intravenous injections, 15 minutes for bathing, and 2.5 minutes for changing a compression stocking. Barcode stickers, placed on patients’ front doors, tracked the nurses’ progress so central managers could analyze their efficiency. As these organizations consolidated, they added more layers of management, all with the intention of increasing efficiencies and squeezing out costs.
Some patients were seen by more than 30 different healthcare professionals, each administering a different task such as helping with bathing, giving an injection, or caring for a wound. Sometimes, patients were visited several times by different care personnel on the same day. The personal bond between nurses and patients was lost, and no one took ownership for an individual patient’s overall health and wellbeing – they lacked the incentives and autonomy to do so

From 4 to 9,000 nurses in its first years. Nurses work in teams of 10 to 12, each team serving around 50 patients in a small, well-defined neighborhood.
market share has reached 60%. Requires 40% of the care hours needed by a more conventional approach. Emergency hospital admissions have been cut by 1/3. It’s estimated that the Dutch social security system would save $2 billion per year if the entire home-care industry adopted Buurtzorg’s operations model.
Local teams of 10 to 12 nurses decide which patients to serve, how to allocate tasks, where to rent offices, how to integrate with the local communities, which doctors and pharmacies to work with, and how to collaborate with nearby hospitals. They monitor their own performance and take corrective action if productivity drops. Teams don’t have team leaders; management tasks are spread across the members, all of whom are nurses.
9,000 nurses are supported by fewer than 50 staff people. Overhead costs are 8% instead of the 25% that is standard in the industry.
The nurses do their own recruiting and purchasing, contracting for specialized medical or legal expertise when needed. They align with the larger organization not through rules and procedures, but through the collaboration methods they learned. A powerful internal social network allows them to draw on guidance and medical expertise from fellow nurses in other parts of the country, many of whom they’ve never met.

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NCSS & Fuelfor Caregiving Ecosystem

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Open-Source

The world's most popular mobile operating system is Google's Android. It powers more than 86 percent of smartphones in the world. What's even more remarkable is that Android is based on the open source Linux operating system.
That means anyone can view the code at the heart of the vast majority of smartphones, modify it, and, more important, share it with anyone else. This openness enables collaboration. Unlike, say, Microsoft Windows, which was developed and is maintained by a single company, Linux is developed and maintained by more than 15,000 programmers around the world.
Open source is even seeing applications in the next iteration of technology: AI. Google open sourced its artificial intelligence engine, TensorFlow, in 2015, enabling companies and researchers to build applications using some of the same software the search giant used to create tools that search photos, recognize spoken words, and translate languages. Since then, Dropbox has used TensorFlow to recognize text in scanned documents and photographs, Airbnb has used it to help categorize photos in its listings, and a company called Connecterra has used it to help dairy farmers analyze their cows' health.

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Open-Source

Why would Google give away something so central to its business? Because it hoped outside developers would make the software better as they adapted it to their own needs. And they have: Google says more than 1,300 outsiders have worked on TensorFlow. By making it open source, Google helped TensorFlow become one of the standard frameworks for developing AI applications, which could bolster its cloud-hosted AI services. In addition to garnering outside help for a project, open source can provide valuable marketing, helping companies attract and retain technical talent.
So Google stands to benefit, but why would an outsider contribute improvements to TensorFlow? Let's say a company makes its own version of TensorFlow with unique elements, but keeps those elements private. Over time, as Google made its own changes to TensorFlow, it might become harder for that other company to integrate its changes with the official version; also, the second company would miss out on improvements contributed by others.

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Ethereum

We’ve already mentioned that Ethereum has the biggest and most active technical blockchain community in the world with over 300K+ developers and infrastructure experts globally and over 2,000 decentralized applications (dApps). The Enterprise Ethereum Alliance is also the world’s largest business blockchain consortium with over 450 members including Microsoft, JP Morgan, Accenture, ING, Intel, Cisco, and many more.

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The Healing Organization – Conscious Capitalism

Besides being profitable, these organizations all have the following key elements in common:

- Their employees love coming to work

- They have passionately loyal customers

- They make a significant positive difference in the communities they serve

- They preserve and restore the ecosystems in which they operate

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Indicators and Incentives in a Top Down Environment can be detrimental

From “hitting targets” to “ doing the right thing”.

https://www.centreforpublicimpact.org/hitting-target-right-thing-paradigm-shift-measurement-complex-environments/

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ING

https://www.bcg.com/digital-bcg/agile/ing-agile-transformation.aspx

Instead of organising around functional departments ING staff are organised into about 350 nine-person ‘squads’ and 13 ‘tribes

Guilds: Interest groups or communities of practice e.g. Innovation, Wine, Cycling, Theatre, etc.

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Deloitte’s Gov Cloud to Tri-Sector Cloud

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Dual Transformation

“You never change things by fighting the existing reality.�To change something, build a new model that makes the existing model obsolete.”�― Buckminster Fuller

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Dual Transformation

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Haier’s RenDanHeYi

World’s largest appliance maker.
$35 billion annual revenue
75,000 employees globally.
23% annual growth in gross profits for core biz

18% annual growth in revenue for core biz
$2 billion in market value from new ventures.
10,000 employees dismissed in recent years.
Tens of thousands of new jobs e.g. 90,000 independent drivers

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Haier’s RenDanHeYi – “Leading to become obsolete”

From	To
Linear Value Chain	Value Networks
Monolithic Businesses	Microenterprises
Employees	Owners
Paid by Company	Paid by Customers/Market
Incremental Goals	Leading Targets
Internal Monopolies	Internal Contracting
Top-down Coordination	Voluntary Collaboration
Rigid Boundaries	Open Innovation
Innovation Phobia	Entrepreneurship at Scale

Zhang Ruimin

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Haier’s RenDanHeYi

1. 4,000 autonomous microenterprises, or MEs:

- ~10 to 15 employees

- 200 “transforming” MEs�- 50-plus “incubating” MEs

- 3,800 “node” MEs

2. Haier Open Partnership Ecosystem (HOPE):

- 400,000 global “solvers” or institutions and technical experts in 1,000 domains.

- >200 problems are posted annually

- Reduced time from concept to market by 70%

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Adhocracy

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Adhocracy – 3 Features

Feature	Coordinate activities around opportunities	Decisions through experimentation	Motivate through achievement and recognition
What it means?	Act on tangible external opportunities and spend less time deliberating	No stage-gate processes and committees. Instead, release unproven ideas in market quickly	Employees have high levels of responsibility. Peer evaluation
Example	Mundipharma (mid-sized pharma) has BUs around drug opportunities	Costa Coffee’s Project Marlow intuition/instinct-based decision-making instead of analysis-paralysis. Ask forgiveness, and not permission. Target is revealed as we move.	Valve gives employees the power to “green-light” projects and ship products. Hiring great colleagues is their most important role. Forced-ranking system

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Holocracy

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Holocracy

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Reciprocity Ring, Interest Groups, Brownbags & Sharing Circles

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From the Mechanics of Change to “Touchy-Feely” of Change

Science	Arts
Left Brain (Logic)	Right Brain (Emotions)
Objective & Rational	Subjective and Non-Rational
Mechanics: Structure, Systems, Processes, Optimization	Culture: Interpersonal Dynamics, Relationships, Interactions, Conversations, Politics, Sociology, Psychology
Machine, Control, Industrialized	Garden, Conditions, Cultivation
Quantifiable, Tangible	Difficult to quantify, Intangible
Hard Skills	Soft Skills
Intellect, Mind, Body	Heart, Soul, Spirit,

Frederic Laloux, Ken Wilber Blind Spots and Preferences, AQAL – Integral Theory

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Overview of Solution - Re-engineering Innovation Culture

Mind

Self-Awareness
Autonomy & Ikigai Job crafting
Growth & Mastery
From employee reaching company vision to company reaching employee vision
Employee engagement
Mindfulness
Shoshin (Beginners’ Mind)
Healing from our shadows

Body

Transcendental Purpose to World and Future Generations (the Soul of the Organization)
Meaning in everyday life
Empathy & Emotional Connection to Client
Recruit for Diversity

Heart

Psychological Safety
Vulnerability
Social and Emotional Sensitivity
Significance and Validation (“I matter”)
From Leader empower employee to Employee power Organization
Radical Transparency & Candour

Spirit

Wisdom
Wonder
4 Pillars of Energy
Surrender to the emergent and collective consciousness
The whole is beyond the sum of its individual parts

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The link between Culture, Creativity and Innovation

- Inductive reasoning

- Mind Wandering

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The Culture Code – Daniel Coyle

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The Business Case for Purpose – EY & HBR

In the 1994 classic "Built to Last," Jim Collins and Jerry Porras reveal that over a more than 60-year period, purpose-guided companies earned six times more for their shareholders than their narrowly profit-focused competitors.

https://www.ey.com/Publication/vwLUAssets/ey-the-business-case-for-purpose/$FILE/ey-the-business-case-for-purpose.pdf

This survey suggests that purpose is a powerful though underutilized tool: • Most executives believe purpose matters. Eighty-nine percent of executives surveyed said a strong sense of collective purpose drives employee satisfaction; 84 percent said it can affect an organization’s ability to transform, and 80 percent said it helps increase customer loyalty. • … but only a minority said their company currently runs in a purpose-driven way. Forty-six percent said their company has a strong sense of purpose while another 44 percent said their company is trying to develop one.

Duracell sets itself apart from its competitors through its PowerForward program, which helps communities recover from natural disasters by providing internet access, charging phones, and offering free batteries during power outages. Duracell's "Island Without Power" ad talked about Puerto Rico's struggles in the aftermath of Hurricane Maria.
M&S launched its Frazzled Café with leading mental health campaigner Ruby Wax. The brand recognised the opportunity to use its spaces to bring people together, creating a sense of belonging and comfort that the brand is known for.
Ikea staged a 6-day festival during Milan design week, bringing its brand philosophy to life for customers to share. Its ‘Let’s Make Room For Life’ activation showcased the brands hospitality and new designs. It included elements of wellness such as morning yoga in the future living room, and chill out areas for weary design week visitors, all designed to make people feel at home with Ikea.

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Purpose, Autonomy & Job-Crafting within the organization

When companies trust employees to choose which projects they’ll work on, people focus their energies on what they care about most. As a result, organizations like the Morning Star Company—the largest producer of tomato products in the world—have highly productive colleagues who stay with the company year after year. At Morning Star, people don’t even have job titles; they self-organize into work groups.

Schwartz Theory of 10 Values

Jared: Theory of 10 Values

Gaming software company Valve gives employees desks on wheels and encourages them to join projects that seem “interesting” and “rewarding.” But they’re still held accountable. Clear expectations are set when employees join a new group, and 360-degree evaluations are done when projects wrap up, so that individual contributions can be measured.ve people discretion in how they do their work.

In an analysis of 50 global companies, consulting firm Towers Watson found that companies with low engagement scores had an average profit margin of just under 10 percent. But those firms with high engagement had a slightly higher margin of 14 percent. The superstar firms with the highest engagement scores had an average profit margin of 27 percent.

Measuring and building engagement is seriously big business. The biggest workplace survey in the world is conducted by Gallup – almost 2 million workers across more than 70 countries. Work units in the top quartile in employee engagement outperformed bottom-quartile units by 10% on customer ratings, 17% in productivity, 20% in sales, and 21% in profitability.

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Employee empower Leader, not Leader empower Employee

“Look your people do not need to be empowered, your people are powerful. They are powerful as soon as they walk in through the door. Your goal is to let them use this power.” Now that is a very key aspect of how I run. I try to bring in the most powerful people I can.

10% of the people I bring in don’t work out. They are a mis-hire and we move them to a different place or in certain situations we have to let them go, but 90% have this thing that they’re bringing in. And my job is to ensure they can use this power.

Here’s how we can do that. I tell them, look I want you to do something so fricking powerful that 1-2 years from now, I won’t be able to afford you. I want you to create software that’s so revolutionary that Google wants to poach you or create a marketing team that is so incredible that you can leave knowing that you never have to worry about a job again, because every damn advertising agency will want you at their table. I challenge people to do that, and sometimes people do that and they leave and that’s great and we stay friends.”

Patty McCord is the woman who worked with Reed Hastings to create the culture for Netflix. Author of book “Powerful”

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Pixar’s Brain Trust - Radical Transparency, and Diversity

As additive, not competitive. A competitive approach measures other ideas against your own, turning the discussion into a debate to be won or lost. An additive approach, on the other hand, starts with the understanding that each participant contributes something (even if it’s only an idea that fuels the discussion — and ultimately doesn’t work).

According to Ed, the job of the Braintrust is to “push towards excellence, and root out mediocrity.”
Let’s take a closer look at the Braintrust process at Pixar, and how it helps Pixar’s filmmakers with their creative process. The Braintrust starts with the premise that an initial starting point for a movie usually sucks. Ed writes:
“Early on, all of our movies suck. Pixar films are not good at first, and our job is to make them… go, as I say, ‘from suck to non-suck.’”

The key is to look at the viewpoints being offered, in any successful feedback group, as additive, not competitive. A competitive approach measures other ideas against your own, turning the discussion into a debate to be won or lost. An additive approach, on the other hand, starts with the understanding that each participant contributes something (even if it’s only an idea that fuels the discussion — and ultimately doesn’t work).”

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Project Aristotle - Google

The researchers found that what really mattered was less about who is on the team, and more about how the team worked together.

Psychological safety refers to an individual’s perception of the consequences of taking an interpersonal risk or a belief that a team is safe for risk taking in the face of being seen as ignorant, incompetent, negative, or disruptive. In a team with high psychological safety, teammates feel safe to take risks around their team members. They feel confident that no one on the team will embarrass or punish anyone else for admitting a mistake, asking a question, or offering a new idea.

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Manage your 4 Pillars of Energy, not Time, not Demands

Age

https://theenergyproject.com/solutions/

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Inside-out models of change are more sustainable and enduring as outside-in models. Inner, outer & interpersonal work

It is absolutely important to hold space for introspection/contemplation. More Being, less Doing.

A process with fewer workshops or workshops that are shorter or closer together will be unlikely to provide enough time for the team to go deep enough (and get lost enough) to transform their understandings, relationships, and intentions. (My partner Bill O’Brien said about the time needed for transformational work: “It takes nine months to make a baby, no matter how many people you put on the job.”⁶) A process with more workshops or workshops that are longer or more spread out will find it difficult to maintain the requisite energy and momentum.

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The container holds safe and sacred space for perceptions, metaphors, intentions, relationships & narratives to transform in a sustainable & enduring manner

When we change the way we look at things, the things we look at change. The real voyage of discovery consists not in seeking new landscapes, but in having new eyes: Marcel Proust

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The Story of the 5^th Monk

In deep despair, the monks realized that they needed to transform themselves and their society in some very fundamental way— like a caterpillar changing into a butterfly. With little idea of how to begin, the monks invited groups of leaders to sit with them in contemplation and dialogue. Over time, a special type of relationship, spirit and collective wisdom emerged within the groups and between the groups and a higher power that they began to call “the fifth monk.” With her help and following her guidance, the groups began to catch glimpses of the butterfly within themselves and society. These images began to form a new story about who they were and how they were to live together in new types of compassionate communities. Simultaneously, new processes of healing and reconciliation emerged from their process that helped them let go of old wounds and patterns. This catalyzed a new spirit of innovation and hope that, step-by-step and year-by-year, helped build a fundamentally different society where the once inevitable and recurring problems of the past were now obsolete.

http://www.tomcallanan.com/fifth-monk/

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Surrendering to the Collective & Emergent Consciousness

The most beautiful and deepest experience a man can have is the sense of the mysterious…

�To sense that behind anything that can be experienced there is a something that our mind cannot grasp and whose beauty and simplicity are but a feeble reflection…��To me it suffices to wonder at these secrets and to attempt humbly to grasp with my mind a mere image of the lofty structure of all that there is…�Albert Einstein

“There is nothing in a caterpillar that tells you it's going to be a butterfly.”

�― Buckminster R. Fuller

Theory U: Leading from the future as it emerges, holding space to what life calls us

Limited individual minds to infinite Higher Intelligence

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