Defining the Operating Model

for the Digital Enterprise
IOM Summit, Köln, September 2016
Lee Bryant POST*SHIFT
POST*SHIFT
ConsultingSoftwareResearch
SOCIAL
TECHNOLOGY
‣Social Business strategy

‣E2.0 / SocBiz platforms

‣Use cases / process surrounds

‣Adoption & awareness
Social technology is an enabler for the future of work
ORG
DESIGN
‣Agile / podular teams

‣Networks and communities

‣Open / data-driven working

‣Customer / market pull
SOCIAL
TECHNOLOGY
FUTURE
OF WORK
‣New roles and tasking

‣Network-centric leadership

‣Business model innovation

‣New business structures
ORG
DESIGN
SOCIAL
TECHNOLOGY
Social tech in the workplace: necessary but not sufficient
http://www.margolis.co.uk/enterprise-social-networks-study
Progress happening, but internal structure still a blocker
The world is changing faster than our organisations
Connected products require a connected company
As products change, so must the organisation
Agility is now the number one change goal for large orgs
Source: Jon Husband's logo for Wirearchy
We have some great new
theories and models of
the organisation…
Circle-based structures (e.g. Medium)
SUB-CIRCLE:

Dedicated to a function
SUPER-CIRCLE: 

Responsible for the overall purpose
ROLE: 

A task related to a function
Tribes & Guilds Model (e.g. Spotify)
TRIBE
SQUADGUILD
CHAPTER
Autonomous Business Units model (e.g. Haier)
CUSTOMERS
VALUE CREATING FUNCTIONS: Marketing, R&D, Manufacturing etc.
SHARED SERVICES PLATFORM: IT, HR etc.
SERVANT LEADERSHIP: Execs, Management
But in large firms, any new model hits major barriers
• leadership culture & hierarchy
• central departments & bureaucracy
• top-down approach to change 
• digital skills & employee culture
• poor / centralised tech
• competing owners of topics
• focus on tech, not the org & people
But in large firms, any new model hits major barriers
• leadership culture & hierarchy
• central departments & bureaucracy
• top-down approach to change 
• digital skills & employee culture
• poor / centralised tech
• competing owners of topics
• focus on tech, not the org & people
Here’s how I think you
can overcome the
biggest barriers…
… by helping create the
two key foundations of
the adaptive enterprise…
1An Organisational

Operating System
that embodies
core services in a
shared platform
2A distributed

Operating Model
that enables
evolutionary
improvement
1A new Organisational

Operating System
(why organisations should
be more like software)
FrameworkFrom vertical integration to pace layering, services, APIs
Platforms and a service-oriented architecture
Platforms and a service-oriented architecture
Iterative & agile approaches beat central planning
Connected software: more value from human interaction
Amazon: great example of ‘business as a platform’
But this is not just confined to tech firms
But this is not just confined to tech firms
Platforms are the most viable alternative to hierarchy
Digital Enterprise needs a better way to coordinate work
From puppets to actors…
Platforms: the stage on which people & teams can shine
SHARED SERVICE PLATFORM
A service-oriented architecture for the organisation
Platform services as a base for app-like user experiences
Platforms enable new management methods
Platforms enable new management methods
Rules, processes, directives can be embedded in software
AI needs connected data and service platforms to work
Platforms for people and things to work together
ESNs, intranets, data and
collaboration systems are a
good starting point for
creating the service layers
required by the platform
2A new distributed

Operating Model
38
Market
V U C AVolatility: unexpected
and unstable market
conditions
Uncertainty: lack of
information to foresee
changes
Complexity: many
interconnected parts
and variables
Ambiguity: casual
relationships are
unclear or unknown
A VUCA future needs constant adaptation / evolution
How can we use our
existing ESNs & intranets to
become more adaptive?
A human sensor network for distributed transformation
Sheeren mosaic 2 by Paul Wells
Existing adoption metrics alone don't tell us very much
Structure
•	Decentralised
	•	Resilient
	•	Adaptive & Emergent
	•	Networked
	•	Service-oriented
Culture
	•	Open
	•	Customer-centric
	•	Innovative
	•	Experience-led
	•	Passion & purpose
Practice
	•	Agile & Iterative
	•	Data-driven
	•	Collaborative
	•	Task-focused
	•	Podular
© Postshift LLP, 2014
Target organisational capabilities, not adoption metrics
‘Quantified self’ continual improvement for the organisation
Some practical small steps for
owners of internal platforms
Gather and share stories of change
Princess and the Frog by Joana Coccarelli
Recruit and animate an internal change agent network
Consider scale & intimacy: networks / communities / teams
Ask the org what new capabilities it needs at each level
Always be capturing ideas, pain points, needs & data
Write agile user stories for new organisational capabilities
Coordinate & measure change actions that target them
Do > Observe > Think: distributed, agile transformation
We need to go beyond simple
communication use cases for
internal systems and make the
case that they should become
part of the platform for a new
organisational operating system
thank you for listening :)
{ }Please continue the
conversation with us:
• @leebryant / @postshift
• lee@postshift.com
• www.postshift.com
POST*SHIFT
Additional image credits and references
https://flic.kr/p/foH23g
https://flic.kr/p/6ukbKf
https://www.flickr.com/photos/davegray/6865783407/
https://www.flickr.com/photos/davegray/8614115016/
https://www.flickr.com/photos/mattpaish/8110496706/
https://developmentofwindows.files.wordpress.com/2014/09/windows3.jpg
http://www.engadget.com/2015/10/04/daimler-self-driving-truck-test/
https://www.flickr.com/photos/peasap/655111542/sizes/l/
https://www.flickr.com/photos/81133120@N06/14911009117
https://www.flickr.com/photos/tinkerszone/3948664111/
https://www.flickr.com/photos/89850576@N08/8164065982/
https://www.flickr.com/photos/dplanet/94442623/
http://www.slideshare.net/RachelDavies/spa-conference-implications-of-conways-law
https://www.flickr.com/photos/330thbg/14303493780/
https://www.flickr.com/photos/nate2009/12436753284/
https://www.flickr.com/photos/fabolous/15728923718
http://mergy.org/wp-content/uploads/wpid-IMG_20131030_082022.jpg
http://intenseminimalism.com/2010/the-dot-loop-the-simplest-process-possible/
https://www.flickr.com/photos/blakespot/3029273217/
http://www.telegraph.co.uk/sponsored/china-watch/business/12006363/zhang-ruimin-haier-group.html
http://www.mckinsey.com/business-functions/business-technology/our-insights/the-digital-tipping-point-mckinsey-
global-survey-results
http://news.nationalgeographic.com/2016/05/financial-times-meet-the-cobots-humans-robots-factories/

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Defining the Operating Model
 for the Digital Enterprise

  • 1. Defining the Operating Model
 for the Digital Enterprise IOM Summit, Köln, September 2016 Lee Bryant POST*SHIFT
  • 3. SOCIAL TECHNOLOGY ‣Social Business strategy ‣E2.0 / SocBiz platforms ‣Use cases / process surrounds ‣Adoption & awareness Social technology is an enabler for the future of work ORG DESIGN ‣Agile / podular teams ‣Networks and communities ‣Open / data-driven working ‣Customer / market pull SOCIAL TECHNOLOGY FUTURE OF WORK ‣New roles and tasking ‣Network-centric leadership ‣Business model innovation ‣New business structures ORG DESIGN SOCIAL TECHNOLOGY
  • 4. Social tech in the workplace: necessary but not sufficient http://www.margolis.co.uk/enterprise-social-networks-study
  • 5. Progress happening, but internal structure still a blocker
  • 6. The world is changing faster than our organisations
  • 7. Connected products require a connected company
  • 8. As products change, so must the organisation
  • 9. Agility is now the number one change goal for large orgs Source: Jon Husband's logo for Wirearchy
  • 10. We have some great new theories and models of the organisation…
  • 11. Circle-based structures (e.g. Medium) SUB-CIRCLE:
 Dedicated to a function SUPER-CIRCLE: 
 Responsible for the overall purpose ROLE: 
 A task related to a function
  • 12. Tribes & Guilds Model (e.g. Spotify) TRIBE SQUADGUILD CHAPTER
  • 13. Autonomous Business Units model (e.g. Haier) CUSTOMERS VALUE CREATING FUNCTIONS: Marketing, R&D, Manufacturing etc. SHARED SERVICES PLATFORM: IT, HR etc. SERVANT LEADERSHIP: Execs, Management
  • 14. But in large firms, any new model hits major barriers • leadership culture & hierarchy • central departments & bureaucracy • top-down approach to change  • digital skills & employee culture • poor / centralised tech • competing owners of topics • focus on tech, not the org & people
  • 15. But in large firms, any new model hits major barriers • leadership culture & hierarchy • central departments & bureaucracy • top-down approach to change  • digital skills & employee culture • poor / centralised tech • competing owners of topics • focus on tech, not the org & people
  • 16. Here’s how I think you can overcome the biggest barriers…
  • 17. … by helping create the two key foundations of the adaptive enterprise…
  • 18. 1An Organisational
 Operating System that embodies core services in a shared platform 2A distributed
 Operating Model that enables evolutionary improvement
  • 20. (why organisations should be more like software)
  • 21. FrameworkFrom vertical integration to pace layering, services, APIs
  • 22. Platforms and a service-oriented architecture
  • 23. Platforms and a service-oriented architecture
  • 24. Iterative & agile approaches beat central planning
  • 25. Connected software: more value from human interaction
  • 26. Amazon: great example of ‘business as a platform’
  • 27. But this is not just confined to tech firms
  • 28. But this is not just confined to tech firms
  • 29. Platforms are the most viable alternative to hierarchy
  • 30. Digital Enterprise needs a better way to coordinate work
  • 31. From puppets to actors…
  • 32. Platforms: the stage on which people & teams can shine
  • 33. SHARED SERVICE PLATFORM A service-oriented architecture for the organisation
  • 34. Platform services as a base for app-like user experiences
  • 35. Platforms enable new management methods
  • 36. Platforms enable new management methods
  • 37. Rules, processes, directives can be embedded in software
  • 38. AI needs connected data and service platforms to work
  • 39. Platforms for people and things to work together
  • 40. ESNs, intranets, data and collaboration systems are a good starting point for creating the service layers required by the platform
  • 42. 38 Market V U C AVolatility: unexpected and unstable market conditions Uncertainty: lack of information to foresee changes Complexity: many interconnected parts and variables Ambiguity: casual relationships are unclear or unknown A VUCA future needs constant adaptation / evolution
  • 43. How can we use our existing ESNs & intranets to become more adaptive?
  • 44. A human sensor network for distributed transformation Sheeren mosaic 2 by Paul Wells
  • 45. Existing adoption metrics alone don't tell us very much
  • 46. Structure • Decentralised • Resilient • Adaptive & Emergent • Networked • Service-oriented Culture • Open • Customer-centric • Innovative • Experience-led • Passion & purpose Practice • Agile & Iterative • Data-driven • Collaborative • Task-focused • Podular © Postshift LLP, 2014 Target organisational capabilities, not adoption metrics
  • 47. ‘Quantified self’ continual improvement for the organisation
  • 48. Some practical small steps for owners of internal platforms
  • 49. Gather and share stories of change Princess and the Frog by Joana Coccarelli
  • 50. Recruit and animate an internal change agent network
  • 51. Consider scale & intimacy: networks / communities / teams
  • 52. Ask the org what new capabilities it needs at each level
  • 53. Always be capturing ideas, pain points, needs & data
  • 54. Write agile user stories for new organisational capabilities
  • 55. Coordinate & measure change actions that target them
  • 56. Do > Observe > Think: distributed, agile transformation
  • 57. We need to go beyond simple communication use cases for internal systems and make the case that they should become part of the platform for a new organisational operating system
  • 58. thank you for listening :) { }Please continue the conversation with us: • @leebryant / @postshift • [email protected] • www.postshift.com POST*SHIFT
  • 59. Additional image credits and references https://flic.kr/p/foH23g https://flic.kr/p/6ukbKf https://www.flickr.com/photos/davegray/6865783407/ https://www.flickr.com/photos/davegray/8614115016/ https://www.flickr.com/photos/mattpaish/8110496706/ https://developmentofwindows.files.wordpress.com/2014/09/windows3.jpg http://www.engadget.com/2015/10/04/daimler-self-driving-truck-test/ https://www.flickr.com/photos/peasap/655111542/sizes/l/ https://www.flickr.com/photos/81133120@N06/14911009117 https://www.flickr.com/photos/tinkerszone/3948664111/ https://www.flickr.com/photos/89850576@N08/8164065982/ https://www.flickr.com/photos/dplanet/94442623/ http://www.slideshare.net/RachelDavies/spa-conference-implications-of-conways-law https://www.flickr.com/photos/330thbg/14303493780/ https://www.flickr.com/photos/nate2009/12436753284/ https://www.flickr.com/photos/fabolous/15728923718 http://mergy.org/wp-content/uploads/wpid-IMG_20131030_082022.jpg http://intenseminimalism.com/2010/the-dot-loop-the-simplest-process-possible/ https://www.flickr.com/photos/blakespot/3029273217/ http://www.telegraph.co.uk/sponsored/china-watch/business/12006363/zhang-ruimin-haier-group.html http://www.mckinsey.com/business-functions/business-technology/our-insights/the-digital-tipping-point-mckinsey- global-survey-results http://news.nationalgeographic.com/2016/05/financial-times-meet-the-cobots-humans-robots-factories/