Tbo revisitedv final

1. The Boundaryless Organization
Ron Ashkenas
July 4, 2016
Executive Leadership Teams
Meeting

2. Copyright Schaffer Consulting 2015 2

3. Who is here today?

4. Different industries same challenges
Need to do “more
with less”
Be more
innovative
Shorten time to market
and be more agile
Increase customer
intimacy
Regulation
Aggressive
competition
Technology
War for talent
Globalization
Digital lifestyle
Environmental issues
Multiple stakeholders

5.  Thinking beyond functional expertise
 Eliminating “silo” mentality
 Relying on multi-functional teams
 Building strong partnerships
 Developing a sense of ownership and
accountability at all levels
Organizational Edge
From focusing on handing
off the stick
To practicing teamwork

6. Adaptive Change
This requires leaders and
organizations to touch the
“Source Code” of how they think,
act, operate and lead

7. ‫ה‬ ָּ‫ת‬ ַ‫ְא‬‫ו‬‫ָּל‬‫כ‬ ִ‫מ‬ ‫ֶה‬‫ז‬ ֱ‫ח‬ ֶ‫ת‬-‫י‬ ֵׁ‫ש‬ְ‫נ‬ ַ‫א‬ ‫ם‬ ָּ‫ע‬ ָּ‫ה‬-‫י‬ ֵׁ‫א‬ ְ‫ִר‬‫י‬ ‫ִל‬‫י‬ ַ‫ח‬‫ים‬ ִ‫ֹלה‬ֱ‫א‬,‫ת‬ ֶ‫מ‬ֱ‫א‬ ‫י‬ ֵׁ‫ש‬ְ‫נ‬ ַ‫א‬--‫ע‬ַ‫צ‬ ָּ‫ב‬ ‫י‬ ֵׁ‫א‬ְ‫ֹׂנ‬‫ש‬;
ָּ‫ת‬ ְ‫מ‬ ַ‫ְש‬‫ו‬‫ם‬ ֶ‫ה‬ ֵׁ‫ל‬ֲ‫ע‬,‫אֹות‬ ֵׁ‫מ‬ ‫י‬ ֵׁ‫ר‬ ָּ‫ש‬ ‫ים‬ ִ‫פ‬ ָּ‫ל‬ֲ‫א‬ ‫י‬ ֵׁ‫ר‬ ָּ‫ש‬,‫ים‬ ִ‫ש‬ ִ‫מ‬ ֲ‫ח‬ ‫י‬ ֵׁ‫ר‬ ָּ‫ש‬,‫ֹׂת‬‫ר‬ ָּ‫ש‬ֲ‫ע‬ ‫י‬ ֵׁ‫ר‬ ָּ‫ְש‬‫ו‬.
‫ָּה‬‫י‬ ָּ‫ְה‬‫ו‬‫ָּל‬‫כ‬-‫יָך‬ ֶ‫ל‬ ֵׁ‫א‬ ‫יאּו‬ ִ‫ָּב‬‫י‬ ‫ֹׂל‬‫ד‬ָּ‫ג‬ ַ‫ה‬ ‫ר‬ ָּ‫ב‬ ָּ‫ד‬ ַ‫ה‬,‫ָּל‬‫כ‬ְ‫ו‬-‫טּו‬ ְ‫פ‬ ְ‫ִש‬‫י‬ ‫ן‬ֹׂ‫ט‬ ָּ‫ק‬ ַ‫ה‬ ‫ר‬ ָּ‫ב‬ ָּ‫ד‬ ַ‫ה‬-‫ם‬ ֵׁ‫ה‬;
(‫פרק‬ ‫שמות‬‫יח‬)
Copyright Schaffer Consulting 2015 7
The first Management Consultant

9. The Boundaryless Organization Revisited:
Why Breaking Down Silos Matters More Today Than
Ever Before
Ron Ashkenas
July 4, 2016

10. Copyright Schaffer Consulting 2015 10

11. Background
• Partner Emeritus with Schaffer Consulting
• Part of team that worked with Jack Welch to
develop GE Work-Out
• Author or co-author of 5 books, 7 HBR articles
• Transformational impact with clients around the
world, including Israel
• Former Executive-in-Residence at Berkeley
Page | 11

12. The Boundaryless Organization Revisited
• How has the idea evolved over the past 20 years?
• Are we there yet?
• To what extent do we still need to break down boundaries and silos in
today’s environment?
• What can we do in our companies to foster more flexible boundaries?
12

13. Let’s take a ride back to 1995 - 1996

14. The world in 1996
14

15. And in the technology realm…
15

16. Welch discovers boundarylessness
“We quickly began to learn from
one another: Productivity solutions
from Lighting, transaction
effectiveness from GE Capital,
cost reduction techniques from
Aircraft Engines, global account
management from Plastics.”
Jack Welch

17. The Boundaryless Organization …

18. Key Messages: Need to redefine success factors of organizations
From
• Scale
• Role clarification
• Specialization
• Control
To
• Speed
• Flexibility
• Integration
• Innovation

19. Key Messages: To succeed, boundaries need to be more
permeable
Vertical (Hierarchies)
Horizontal
(Products/Functions)
External
(Customers/Suppliers)
Global (Cultural)

20. Key Messages: Boundaryless, but not boundary free
Permeable Structure

21. Permeable Structure
What are some
examples of
unnecessary
boundaries in your
organization?

22. Finished files are the
result of years of scientific
study combined with the
experience of many years.
F’s Exercise Worksheet
22

23. 23

24. Finished files are the
result of years of scientific
study combined with the
experience of many years.
F’s Exercise Worksheet
24

25. Count the little black balls….
25

26. Key Messages: Levers for Action
Information
Capability
to Use
Information
Authority to
Act
Rewards/
Accountability
Delayered
Structures
Forums for
Communication

27. Now 20 years later… how has the world changed?
• New Technologies Have Created Opportunities …
and Challenges
• Pace of Disruption Has Accelerated
HOW IS THE BUSINESS ENVIRONMENT DIFFERENT TODAY
… AND WHAT DO WE
NEED TO DO DIFFERENTLY IN ORDER TO BE SUCCESSFUL?

28. New technologies creating opportunities … and challenges
Global Economy Max-Matrix Structures Internet of Everything
Mobility Millennials Sustainability
Social Media Cloud Start-up Culture
28

29. Framework
Example: Common consumer decisions move
through a changing ecosystem of providers …..
Buying
Awareness Interest Choose
Using
Use Manage Pay
Sharing
Renew Recommend Leave
29

30. New technologies have disrupted whole industries
Retail/commerce News and Information
Music &
Entertainment
Transportation
Healthcare

31. Pace of disruption accelerating…
a battery company and a “search engine” can make cars ….
31

32. … and a retailer can be an IT vendor ….
… and an app developer can control taxis

33. More disruption to come
33

34. Quick Poll
Copyright Schaffer Consulting 2015 34

35. Instructions
1. Put your mobile on “Silence” mode
2. Get into the internet site - “Kahoot”
3. Enter the relevant “game pin” – you will see it here on the
screen
4. Write your name and enter “ok, go”
5. When you’re in wait for questions
35

36. Quick Poll
1. To what extent do you think that people want to be able to
collaborate even more effectively across organizational boundaries?
a. Strong desire
b. Would be OK if it happens
c. Not that interested
2. My organization is already boundaryless?
a. We’re already there
b. We’re partly there
c. We still have a long way to go
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37. Quick Poll
3. Becoming more boundaryless is a cultural/social issue or a
technology issue?
a. Mostly cultural/social
b. A mix of both
c. Mostly technological
4. Becoming more boundaryless will enable us to innovate faster and
more effectively?
a. Definitely enables
b. It can help
c. It doesn’t make much difference
37

38. Structure
What are the main barriers for
breaking down silos and
boundaries?

39. The Challenges to Boundaryless Behavior:
What Has Not Changed?
39
• Size of human brain
• Ability to process information
• Basic tribal instincts
• Personal anxieties and concerns
• Interpersonal relationships
Essential Human Behavior

40. Example: Health Care …
Copyright Schaffer Consulting 2015 40

41. Survey of 250 senior IT people in global organizations … 2015
Only a quarter of participants believe they “get the right
information at the right time” to support decision making
About 40% of participants think their colleagues see
“different information at different times”, depending on level,
function, and business unit
Participants think information flow is slightly better between
geographies – 33% of participants think their colleagues in
other locations see “different information at different times”
Only 16% of participants believe customers, suppliers, and
business partners have access to “the same information at
the same time”
41

42. So How Do “Same Old Humans” Take Advantage of New Technologies and
Opportunities …
How Do We Accelerate Our Development?
42
1. Combine old and new success factors … “both-and” thinking
2. Double down on boundaryless action levers
3. Drive boundaryless behavior across even more boundaries

43. Combine Old and New Success Factors:
“Both-And” vs. “Either-Or” Thinking
Need Speed and
Scale
Need Integration with
Specialization
Need Innovation with
Appropriate Controls
Need Flexibility with
Role Clarity
43

44. Double Down on Boundaryless Action Levers
Information
Capability
to Use
Information
Authority to
Act
Rewards/
Accountability
Delayered
Structures
Forums for
Communication

45. Drive Boundaryless Behavior Across Even More Boundaries
Not just connecting systems within a company … but across companies
Not just working across geographies within a company … but across
geographies with partners
Reshape the boundaries of industries … find solutions by combining
capabilities
Solve global problems (terror, security, environment) by teaming up across
industries and governments
Maintain global stability while encouraging disruptive innovation
And do all of this with greater speed and effectiveness

46. Example: Evolution of Airports and
Travel
The 1995 practice of …..
gate assignment
Each airline company submits its
next day flight plan to airport's
flight planning department before 6:00 p.m. each day
Staff of the airport then assign gate to each scheduled arrival airplane
(slow, manual, inflexible)
The emerging solution: A Simulation Model for Airport Gate Assignment
By arrival schedule
By gate occupancy time
By number of passengers on board
by minimum elapse time between gate use
46
Source: Journal of the Eastern Asia Society for Transportation Studies,
Vol 1, No. 1, Autumn 1995. Figure 3. Structure of Gate Assignment Simulation

47. 47
Gate Layout Gate Operations
Requirements
Gate Assignment
Procedure
Fixed Interval Permitted
Overlap
Generate
Attributes
Arrival Type Passengers Occupancy
Time
Departures
by
elapse time
by
occupancy
by
passengers
by
arrival
Gate
Characteristics
Arrival/Departure
Characteristics
Gate
Assignment
Source: Journal of the Eastern Asia Society for Transportation Studies,
Vol 1, No. 1, Autumn 1995. Figure 3. Structure of Gate Assignment Simulation

48. 2016 Solution
48
Airlines & Aircraft
Core Airport Operations
Creation of tasks and allocation of resources according
to constantly changing flight schedules
Real-time updates of ETA’s
Passengers
In-time updates of departure
times and gates
Any Device Anywhere
Right information Right time
Open API’s IoT

49. We have the technology … but making this a reality will mean …
Collaboration across airlines …
Sharing of information within and across countries and security services ...
Changes in consumer behavior ...
Incorporation of new technologies into airport operations ...
Shifts in incentives, measures, and rewards ...
And more ...
49

50. Discussion Groups:
1. What questions have been raised by this discussion so far?
2. How could your company benefit from more permeable boundaries?
3. What are specific steps that you could take? What gets in the way?
4. What can you do to enable and encourage more boundaryless
behavior both within your company and on a greater global scale?
50

51. Summary of Key Points
Over the past 20 years … even though we've made tremendous progress and
introduced new technologies, basic human capabilities have not changed.
Therefore, organizations and leaders need to deal with many of the same
issues from the past 20 years … but do it faster and at a more global scale ...
In particular:
the need to think and act in a boundaryless way is still critical…. with necessary
attention to security, timeliness, relevance and information value
the need to focus on a broader range of boundaries is more critical as companies
function in a more globally and locally interconnected eco-system….
the need to integrate IT and technology changes with the social structure of
organizations is even more critical as we create cultures that can embrace even
more rapid change ..
51

52. Questions?
52

53. 53

54. Thank You !!