Delta Dental Feb252010 Sviokla
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It's time to unlock the power of self-organization. The world has changed -- with the vast internet, resources, and social media. Great leaders will tap this capability to energize and release the power of their people, their customers and their business partners.
Delta Dental Feb252010 Sviokla
- 1. Delta Dental: Unleashing the power of your people, ideas, customers and capitalFebruary, 2010Dr. John J. Svioklajohn.sviokla@diamondconsultants.comBlog: www.sviokla.comHarvard Business Review blog: blogs.hbr.org/sviokla/twitter: jjsvioklacell: 617.510.3565
- 2. Whats Possible?Setting the Stage for the Self-Organization Revolution: 3-CloudsInternet a connectivity utility Capitalism by its nature connectsCloud 1Source: David Reed
- 3. Whats Possible?Can you believe this has happened in less than 20 years!
- 4. Whats Possible The Infinite Bazaar! Everything a company could want!Cloud computing ... a resource utility competition brings new resourcesCloud 2Cloud 1Source: David Reed
- 5. The owner of the memex, let us say, is interested in the origin and properties of the bow and arrow. Specifically he is studying why the short Turkish bow was apparently superior to the English long bow in the skirmishes of the Crusades. He has dozens of possibly pertinent books and articles in his memex. First he runs through an encyclopedia, finds an interesting but sketchy article, leaves it projected. Next, in a history, he finds another pertinent item, and ties the two together. Thus he goes, building a trail of many items.Whats Possible?As we may think -- Vannevar Bush Conceived of the MemexSource: the Atlantic, http://www.theatlantic.com/doc/194507/bush
- 6. Whats Possible? Everyone: Customers, Employees, & Suppliers are Always OnThe 3rd cloud mobile, social interaction utility Human connection is the Killer App of all Killer AppsCloud 2Cloud 1Cloud 3Source: David Reed
- 7. Whats Possible? Reeds Law: Self-Organization Dominates ALL other ApproachesSelf organizing networks Dominate all other network formsValue=2Ne.g. Face bookValue=N2e.g. OthersValue of a NetworkValue=Ne.g. xxxNumber of Users = N
- 8. Competitive advantage derives from the optimal mix.Choices for Executives In order to unlock the power of self-organization you need to examine where you are open and where you are closed!Degree of OpennessClosedOpenDimensionsTalentHire and train internally Outsource everythingProprietary solutions with captive resources Open innovationInnovationDell storm with wikis, self-help, and other peer to peer solutionsInternal service staff, all contacthandled by the companyServiceOpen capital, where people finance anything, as with Indie GoGoCapitalInternal to the companyInfrastructureRent everything from Amazon & UPSCompany owned technology and logisticsWe engage the audience ala Seth Godin, and American Idol.MarketingWe control it all and make the messageLeadershipGetting people to look in and buildGetting people to look out and linkβ
- 9. Productivity is the key TargetEBITDA/Employee by No. of Employees P&C and Multiline Insurers - 2004-2008 Avgs.Quadrant 4Higher labor productivity, Larger4Quadrant 3Higher labor productivity, Smaller3Median $113K EBITDA per employeeLess productive More productiveQuadrant 2Lower labor productivity, Larger2Quadrant 1Lower labor productivity, Smaller1Median 4,100 employeesSmaller Larger
- 10. Implications Implications for your BusinessHow efficient is your self service?
- 11. How well are your marketing your firm?
- 12. Do you rent or own your infrastructure?
- 13. Do you take advantage of the whole world of talent?
- 14. Where do your innovations come from?
- 15. Whose money do you use?
- 16. Are you and open or a closed leader?Successful Self-Organized Systems Have the FollowingDeep skills
- 17. Shared purposed
- 18. Trust
- 20. Clear limits and boundaries
- 22. Shared valuesConclusionUnlock the talent of your people and the passion of your customers1Educate the organization on what is possible 2Review your organization from a open versus closed perspective.3Consider the places with the highest return and least difficulty: Likely first place: Customer Service4Perform an integrated plan and execute, execute, execute
- 23. Lets Continue the ConversationEmail: John.Sviokla@DiamondConsultants.com
Editor's Notes
- #3: Source: http://steeljawscribe.com/2009/01/26/how-big-is-the-internet1.3 billion The number of email users worldwide.210 billion The number of emails sent per day in 2008.70% The percentage of emails that are spam.53.8 trillion The number of spam emails sent in 2008 (assuming 70% are spam).Internet users1,463,632,361 The number of Internet users worldwide (June 2008).578,538,257 Internet users in Asia.384,633,765 Internet users in Europe.248,241,969 Internet users in North America. (Hello, Senator about the infrastructure part of the National Pork Recovery Act, I have a suggestion or two)139,009,209 Internet users in Latin America/Caribbean.51,065,630 Internet users in Africa.41,939,200 Internet users in the Middle East.20,204,331 Internet users in Oceania/Australia.Blogs133 million- The number of blogs on the Internet (as tracked by Technorati).900,000 The number of new blog posts in a day.329 million The number of blog posts in 2008.Images10 billion- Photos hosted by Facebook (October 2008). (ed: to put in perspective, if all those images were printed as 35 pics, they could be lined up end-to-end from the center of the Earth to the center of the Moon three times with enough left over to get back to the vicinity of the space station in low Earth orbit. SJS)