WEBVTT 1 00:00:00.429 --> 00:00:03.429 (slow upbeat music) 2 00:00:06.540 --> 00:00:09.350 We've been talking about the bionic company. 3 00:00:09.350 --> 00:00:12.060 Now we're going to go deep on organization structures 4 00:00:12.060 --> 00:00:13.733 and the platform organization. 5 00:00:14.930 --> 00:00:17.200 The basics of the new organization model 6 00:00:17.200 --> 00:00:19.350 is a platform organization, 7 00:00:19.350 --> 00:00:22.870 and it has as its components front-end agile teams 8 00:00:22.870 --> 00:00:26.160 supported by modular, tech, and data infrastructure 9 00:00:26.160 --> 00:00:27.773 and bionic processes. 10 00:00:28.760 --> 00:00:31.000 Building and managing bionic processes 11 00:00:31.000 --> 00:00:34.080 will require a fundamentally new way of working. 12 00:00:34.080 --> 00:00:37.180 These processes are most rapidly built and innovated 13 00:00:37.180 --> 00:00:40.770 by empowered teams with multi-disciplinary skills 14 00:00:40.770 --> 00:00:45.770 that cover the functions, the data, technology, and design. 15 00:00:45.820 --> 00:00:48.450 They have a product owner, a clear mission, 16 00:00:48.450 --> 00:00:50.533 and work with an agile methodology. 17 00:00:53.740 --> 00:00:54.830 In our experience, 18 00:00:54.830 --> 00:00:57.310 we see that companies can typically identify 19 00:00:57.310 --> 00:01:01.960 30 to 50 major units of work or bionic processes. 20 00:01:01.960 --> 00:01:04.360 These can be customer-facing processes, 21 00:01:04.360 --> 00:01:06.226 frontline support, operations, 22 00:01:06.226 --> 00:01:08.890 or even back-office processes. 23 00:01:08.890 --> 00:01:12.780 And in this model, process ownership shifts. 24 00:01:12.780 --> 00:01:15.530 Bionic processes are no longer owned, 25 00:01:15.530 --> 00:01:19.520 whether fully or partially, by the previous business units, 26 00:01:19.520 --> 00:01:21.460 which makes them really different 27 00:01:21.460 --> 00:01:23.573 from the shared services models of today. 28 00:01:24.460 --> 00:01:27.410 Rather, they're built and managed by agile teams, 29 00:01:27.410 --> 00:01:31.303 who have clear service levels and clear business missions. 30 00:01:32.570 --> 00:01:35.380 Taken together, they form a platform 31 00:01:35.380 --> 00:01:37.170 that supports the frontline, 32 00:01:37.170 --> 00:01:40.450 operations teams, and customers. 33 00:01:40.450 --> 00:01:43.510 Done right, the go-to-market and operations teams 34 00:01:43.510 --> 00:01:46.250 are freed from much of their internal focus. 35 00:01:46.250 --> 00:01:48.720 They could be even more intensely committed 36 00:01:48.720 --> 00:01:50.420 to their core missions of sales, 37 00:01:50.420 --> 00:01:52.913 marketing, service, or operations. 38 00:01:53.880 --> 00:01:56.990 In the future, in a more modular economy, 39 00:01:56.990 --> 00:01:58.760 bionic organization structures 40 00:01:58.760 --> 00:02:02.870 will even extend beyond traditional employer walls. 41 00:02:02.870 --> 00:02:06.530 Through ecosystems, companies will fill capability gaps 42 00:02:06.530 --> 00:02:09.270 in order to access different types of talents. 43 00:02:09.270 --> 00:02:12.350 They'll be able to provide specific bionic processes 44 00:02:12.350 --> 00:02:13.380 in their platforms. 45 00:02:13.380 --> 00:02:16.560 Think for example, Salesforce providing CRM 46 00:02:16.560 --> 00:02:18.950 or Amazon providing AWS. 47 00:02:18.950 --> 00:02:20.620 And you'll even have situations 48 00:02:20.620 --> 00:02:23.620 in which workers work on top of the platform 49 00:02:23.620 --> 00:02:25.610 without joining the company officially, 50 00:02:25.610 --> 00:02:28.763 such as the case of Uber and Lyft drivers today. 51 00:02:36.000 --> 00:02:38.010 Leading a bionic organization, 52 00:02:38.010 --> 00:02:40.560 one built of modular, agile teams, 53 00:02:40.560 --> 00:02:43.650 looks very different than leading a company today. 54 00:02:43.650 --> 00:02:46.100 Leaders will no longer be thinking of themselves 55 00:02:46.100 --> 00:02:47.720 as controllers of hardwired 56 00:02:47.720 --> 00:02:50.330 organizational structures and processes. 57 00:02:50.330 --> 00:02:54.000 Instead, they will be much more like jazz orchestrators 58 00:02:54.000 --> 00:02:56.300 that are able to unleash employee's potential 59 00:02:56.300 --> 00:03:00.060 through fluid governance and behavior-shaping practices. 60 00:03:00.060 --> 00:03:02.740 At the top of the organization, this ends up looking 61 00:03:02.740 --> 00:03:05.360 much more like what we see in Silicon Valley, 62 00:03:05.360 --> 00:03:08.110 leaders play a venture capital-like role. 63 00:03:08.110 --> 00:03:09.820 They understand key objectives, 64 00:03:09.820 --> 00:03:12.100 they set up the modular and agile teams 65 00:03:12.100 --> 00:03:13.890 with the necessary resources, 66 00:03:13.890 --> 00:03:15.830 but they give them significant autonomy 67 00:03:15.830 --> 00:03:17.610 to do what they think is in the best interests 68 00:03:17.610 --> 00:03:18.940 of the business. 69 00:03:18.940 --> 00:03:21.120 Then frankly, the job of the senior leaders 70 00:03:21.120 --> 00:03:23.780 is to remove roadblocks and ensure that the teams 71 00:03:23.780 --> 00:03:26.724 have the talent and capabilities to operate. 72 00:03:26.724 --> 00:03:29.501 In this world, the concept of middle-management, 73 00:03:29.501 --> 00:03:32.340 as we know it, really goes away. 74 00:03:32.340 --> 00:03:35.570 At the lower-levels, leaders are player coaches 75 00:03:35.570 --> 00:03:37.510 working in the trenches with the teams, 76 00:03:37.510 --> 00:03:39.680 as they develop new products and services. 77 00:03:39.680 --> 00:03:41.170 They lead with new routines, 78 00:03:41.170 --> 00:03:43.400 like daily standups and retrospectives, 79 00:03:43.400 --> 00:03:45.010 and they're ultimately accountable 80 00:03:45.010 --> 00:03:46.673 for the results of their teams. 81 00:03:47.640 --> 00:03:48.710 They're chapter leads 82 00:03:48.710 --> 00:03:50.930 who focus on human capital recruitment, 83 00:03:50.930 --> 00:03:53.970 development, deployment, and retention. 84 00:03:53.970 --> 00:03:55.500 In the bionic company, 85 00:03:55.500 --> 00:03:58.190 there is an increasing need for expert resources 86 00:03:58.190 --> 00:04:01.420 to be deployed on cross-functional agile teams. 87 00:04:01.420 --> 00:04:03.250 All leaders in this new model 88 00:04:03.250 --> 00:04:06.730 will need to participate in what we call Nudges at Scale. 89 00:04:06.730 --> 00:04:10.210 This is combining data, technology, and neuroscience 90 00:04:10.210 --> 00:04:13.100 to help every employee reach their full potential 91 00:04:13.100 --> 00:04:14.630 and to shape their behavior 92 00:04:14.630 --> 00:04:17.970 in a more nuanced and targeted way than ever before. 93 00:04:17.970 --> 00:04:19.050 With Nudges at Scale, 94 00:04:19.050 --> 00:04:21.890 the possibilities to influence behavior are growing, 95 00:04:21.890 --> 00:04:24.810 and leaders will spend an increasing portion of their time 96 00:04:24.810 --> 00:04:27.470 focused on creating the context for employees 97 00:04:27.470 --> 00:04:30.420 to be their most productive and to truly thrive. 98 00:04:30.420 --> 00:04:32.440 The leadership model in the bionic company 99 00:04:32.440 --> 00:04:34.750 represents a major shift from today 100 00:04:34.750 --> 00:04:36.950 and one that I hope you will all engage in.