The first of the internal exponential attributes is Interfaces. In Chapter 4 of Exponential Organizations you can read more about this.
Interfaces bridge the external and internal attributes, they take all the data created by the SCALE attributes and make sense of this internally. Interfaces ensure maximum efficiency and give stakeholders the ability to automate processes. It is for this reason that interfaces are mission critical for ExO’s to scale.
A good example of an effective interface as described in Exponential Organisations is that of the Apple App Store. The App Store allows the nine million strong developer network to develop apps and submit these automatically to the App Store, these are ranked and categorised automatically and this has allowed Apple to scale the App Store to where it is now. From January to June 2018 Revenue generated by App developers was over $100 Billion.
Interfaces are required to manage abundance, mainly to filter and match. The thinking that is required is quite different to the business processes that are put in place to manage scarcity and efficiency.
Exponential Transformation indicates 6 steps to implement Interfaces within your business:
- Identify the sources of abundance you are Accessing
- Humanise the interaction to define the right UX or automate the interaction to define the right API
- Create standardised processes
- Apply algorithms to automate processes
- Test interfaces with pilot populations
- Update interfaces regularly
Some questions that you can ask to ensure that your interfaces will be successful are:
- Will the interface allow the business to Scale
- Do the interfaces create value?
- Can all of the SCALE attributes be enables with interfaces?
- Is the effectiveness of algorithms and automated workflows being measured?
- Are interfaces engaging users?
The interfaces that you create for your ExO are most likely going to be specific for your company. You need to look at what can be automated and how the abundance of information needs to be filtered and matched best to optimise your business process. Look at the interfaces of Google Adwords, Airbnb, Uber, etc. to get a better understanding and get going on creating interfaces that optimise the abundance outside of your organisation allowing you to scale.
If you find this helpful then comment and share this with people in your network. If more organisations can tap into abundance we can ensure that we improve the planet for all!
On Thursday the 20th of September Exponential Transformation a follow up to Exponential Organisations will be launched, with the book being officially released on the 25th of September. This is your opportunity to be a part of the launch and to be at the forefront of 21st century business practice. ExO Lever will be hosting a virtual book launch and you can join. Click here to register! Both Salim Ismail and Peter Diamandis will be speaking at this event.
Exponential Transformation outlines the sprint process that was developed to assist corporates in implementing the Exponential Organisational framework. This is a fancy way of saying that this is the book that will transform your organisation and allow you to thrive. The ecosystem know that the way for us to make a massive impact on the planet is to give everyone the tools to be able to implement this methodology.
If you you run an organisation and want to take advantage of exponential technologies and have a 10X improvement, then I highly recommend that you join the book launch and learn about how you can take your organisation to the next level.
Follow the Book on Twitter or visit http://www.exponentialtransformationbook.com/
In a recent blog post by Peter Diamandis, he speaks about the fact that an abundance of data is leading to “Radical Transparency”. This is a transparency that is essentially forced onto people due to the large number of sensors and internet connected devices that will be constantly monitoring everything. When one reads a blog like this there are a number of thoughts and differing thought streams that go through your head.
First there is the issue of privacy, Peter suggests that potentially privacy may become a thing of the past. Next there is the fact that with all this data it is possible to program what is shown around us and the question of brainwashing comes up. Interestingly due to the primitive parts of our brain we do tend to think about the negative consequences of these technology advancements. But what about the positive ones where we are for example able to reduce traffic accidents to zero, crime drops dramatically due to the fact that AI enabled drone cops will see what you are doing, fatalities from natural disasters is dramatically reduced due to early warning systems and potentially stopped altogether.
Technology is advancing rapidly and whilst we cannot be naive to the fact that there is potential for these technologies to be used negatively, the positive effects will outstrip the negative. Radical Transparency can in fact be used very successfully in your favour. If you are a manufacturing company that wants to ensure that your customers trust you then use technology to show them how you produce your products. A simple live stream of your factory floor is a simple way to do this. An online dashboard of safety or cleanliness metrics can imbue trust.
Do not wait for radical transparency to be used as a tool against you it is time for you to be ahead of the curve and to show that your company can be trusted by being open to radical transparency. I have written previously about idea meritocracy and the need for radical transparency here. I also suggest watching Ray Dalio’s TED talk
If you are unsure how to go about taking advantage of these exponential technologies and business models and culture then I highly recommend that you do a deep dive into the available online resources of books, podcasts, videos, courses and advisory services. I am being radically transparent now to say that together with ExO Works I can help you and your business to navigate this terrain in order to future proof your business.
It is important to realise that technology can be a great enabler for your business and your life. Whatever you do I ask that you embrace this and start learning!
In order to build and run an exponential organisation, Salim Ismail, author of Exponential Organisations, suggests that a company must have an MTP and at least 4 of the 11 attributes depicted in the diagram above. In order to determine whether you can consider yourself exponential they developed an exponential quotient and a test to determine your exponential quotient. You can take the test here. Once you have completed the test share your results so that we can improve the score and celebrate the road to exponential.
The one non negotiable of an Exponential Organisation is an MTP. This is a Massive Transformative Purpose. People have called this a Big Hairy Audacious Goal (BHAG) or a company Vision and Mission. It is vital to understand that whatever you call it the Purpose of the organisation must be something that is massive and transformative and all the values of the organisation and the goals must work towards achieving it. This is not a nice to have slogan on the wall. This is what the organisation must live by. Some Examples of MTP’s are:
- SpaceX: “Humans must become a multi-planetary species”
- TED: “Ideas worth spreading.”
- X Prize Foundation: “Bring about radical breakthroughs for the benefit of humanity.”
- Google: “Organize the world’s information.”
Once you have developed your MTP the next step in being exponential is to understand the internal and external Characteristics that make an organisation exponential. The internal characteristics are Interfaces, Dashboards, Experimentation, Autonomy and Social. The acronym used is IDEAS. The external attributes are Staff on demand, Community and crowd, Algorithms, Leveraged assets and Engagement. The acronym used is SCALE. The tables below summarise these attributes.
|IDEAS – The Internal Characteristics of ExO’s
||What is it?
||Provide the bridge between external activities and internal control frameworks, e.g. platforms, user interfaces, API’s
||•Filter external abundance into internal value
•Link external growth drivers to internal stabilizing factors
•Automation allows scalability
||Metrics to measure, real time and meaningful
||•Track critical growth drivers in real time
•Objective-Key Results (OKR) as management framework
•Minimise errors by short feedback loops
|•Real time metrics
•Cultural acceptance by employees
||Lean startup methods of testing assumptions and consistently experimenting with controlled risks
||•Keeps processes aligned with rapidly changing externalities
•Maximised value capture
•Faster time to market (Minimal Viable Product)
•Risk taking provides an edge and faster learning
|•Measurement and tracking of experiments
||New “empowered” or team based organisational forms
•More accountability at customer face
•Faster reactions and learning times
•Self starting employees
||Create horizontal interactions in vertical organised businesses
•Faster decision cycles
•Cloud social tools
|SCALE – The External Characteristics of ExO’s
||What is it?
|Staff on Demand
||More part time, specialised,
mission based staff
|•Best skills for the job
•Learning of core team
•Stronger bonds in core team
|•Capability to hire services on demand
•Clear task specifications
|Community & Crowd
||Harness the power of the community and crowd by engaging with them through whatever means
•Enable exponential growth
•Validate new ideas and learn
•Agility & rapid implementation
•Create new ideas
•Easy to participate for outsiders
•Peer to peer capabilities
||Use data and automate decisions or reduce human biases while making decisions
||•Scalability of products and services
•Leverage connected devices/ sensors
•Lower error rate & stabilize
•Easy to update
|•Machine or deep learning
||Use assets, do not own them unless they are scarce
||•Scalability of products and services
•Lower marginal costs of supply
•Removes having to manage assets
|•Easy available assets
||Engage community and crowd
•Converts crowd to community
•Play & Learn
•Digital feedback loop to customers
•Clearness & fairness
How Exponential is your company and what is your MTP?
Technology is advancing but it has to start at zero and move from there. The Exponential technologies that are in the mainstream right now are all many years into their development and we are only seeing them in the mainstream now because they have moved out of the deceptive phase. The graph below depicts the 6 D’s that you find along the exponential curve. Peter Diamandis from Singularity University put together the 6 D’s as a way of showing people what to expect when it comes to Exponential technology.
The six D’s are unpacked further below:
Digitized | Initial stage where digitalization of physical processes takes place. Many services have already been digitised and at the moment thanks to Blockchain technology even more is being digitized.
Deception | It takes a while to get up to speed. People often loose hope at this stage as it seems that the technology is not taking off. Virtual Reality was in this deceptive phase during the 2000’s, as was 3D printing a technology that is over 30 years old. Use of blockchain and smart contracts is in this stage right now.
Disruptive | This is when the technology starts make a real difference as the exponential doublings are significant. For the digital camera when the quality was 0.1, 0.2, 0.4, 0.8, 1.6 this was not disruptive but when it reached 3.2 megapixels this essentially killed film.
Demonetization | This occurs when money is taken out of the equation. The reduction of fees due to technology use is partial demonetization although the complete elimination of cost that digital photography brought about is a good example. With film camera’s there was a cost before photographs could be viewed.
Dematerialization | This occurs when physical assets disappear. The mobile phone is a perfect example of how many products have dematerialised. A mobile phone contains $1000’s of dollars of equipment from a GPS to a video camera, books and maps etc.
Democratization | This occurs when the technology becomes ubiquitous generally because the costs are reduced significantly and this gives many more people access. The mobile phone is an example of this with smart phones following suit and almost every person on the planet owning a mobile phone. Think about the planet when technologies such as the Internet, Renewable Energy, AI, etc reach democratization.
Here is a video of Peter Diamandis explaining this further.