2. • The people economy & co-creation of meaning
• Organization & people engagement (the formal organization)
• Leaders' Influence on the people engagement
• Social and moral connections (the 'real' organization)
• Key components to create social and moral connections
• Connected Leadership goals
2
The Connected Leadership Concept
3. Highlights
• Connected Leadership (people – organization engagement)
• Change in Human Needs (deficiency & growth needs)
• Change in Business (and economy)
• Organizational Change (formal to agile to community)
• People mindset (to do, to want, to be)
• Performance (Organization, People)
• Profit (Value)
• Connectedness (Connected Leadership)
3
4. 4
Good Leader as the war hero
Not Great Leader as the Conservative Party leader
wartime leader rejected by peacetime electors - failed to sense the broader context of change.
5. • Birth of a new context (Economic drivers change)
5
The People Economy
CONSUMPTION
ECONOMY (B2C)
EXPERIENCE
ECONOMY(B2B)
PEOPLE
ECONOMY (C)
• My life – my experience (A new breed of customers – In charge)
• Hence Leadership must change (New form of Leadership)
6. Business:
The process of creating
and capturing value.
A basic activity that is the basis for
the survival, stability and quality of
life of people and modern nations.
6
10. Economics
10
The science of explaining markets, value
creation and wealth.
Economies are essentially a set of rules
for production, employment, exchanging
value, distributing and storing wealth.
11. Economic Sector
(Level of value creation)
11
Primary: Production of raw materials
Secondary: Production of Tangible goods
Tertiary: Intangible Value (Services)
Quaternary: Knowledge Economy
People Economy: Co-creation of Meaning
13. 10 Intrinsic Desires
The need to think (Curiosity)
The need to feel capable (Mastery / Competence Mastery / Competence)
The need for influence of will (Power)
Being an individual (Freedom / Independence / Autonomy)
The need for friends (Relatedness / Social Contact)
The need for social standing (Status)
The need for approval (Acceptance)
Being loyal to a group (Honor)
The need for purpose (Goal / Idealism / Purpose)
14. What do people want?
• They want to be engaged in something bigger
than themselves, yet they are distrustful of
organizations.
• They are looking for meaning in their lives, yet
they reject organization dictated experiences.
• They are becoming ever more focused on
themselves as individuals, yet they yearn to be
members of communities.
• They want to be secure in deep relationships,
yet they do not want to be dependent.
14
16. 16
Economic Shift
Consumption Economy Experience Economy People Economy
Drivers of Value Fulfilling wants/needs
through products.
Fulfilling wants and increasing
needs through experiences.
Search for meaning and
identity through
relationships.
Idea Generation The responsibility of the
organization generated by its
understanding of what it sees
as fit-for-purpose
products.
The responsibility of the
organization primarily through
research contacts with
consumers and information
exchange with suppliers.
Co-created by users through
deep relationships.
Product and
Services Creation
Defined by the organization’s
internal resources.
Defined by the organization’s
marketing department with
involvement from the
organization’s network.
Resulting from ideas gathered
by the customer through
own network of experience
and providers.
Execution Organization based. Organization and supplier
network based.
Individuals’ network based.
17. • If good leadership is about getting your staff to follow
then, surely, great leadership has to be about getting
your customers to do the same.
• But here is the problem: the very actions that ensure
good leadership are the ones that will stop you from
being a great leader.
Welcome to the ultimate leadership paradox.
17
The leadership paradox
21. Agile Organization
Agility requires all members of an
organization to be fully engaged in
order to respond to the changes they
sense (whether or not these fall
within their remit)
21
22. Community
• Social unit with commonality such as norms,
religion, values, customs, or identity.
• Share a given geographical area e.g., town, country,
(national communities) or virtual space through
communication platforms (virtual communities).
• Have relations that extend to their identity,
practice, and roles in social institutions such as
family, home, work, government, society, or
humanity at large
22
23. Real Organization
• An organization designed for engagement based
on horizontal relations of reciprocity – and the
behaviors that foster these relationships.
• Relationships between individuals can be
represented as networks of connections or
interactions that are not hierarchical in form
• Each node in the network connects to several or
many other nodes. Building of social and moral
incentives
23
24. 24
Creating value in the Formal and Real Org
Formal Real
Focus Consistency in delivery of core offering.
Executing to defend, extend and increase
profitability of existing business.
Generation of co-creation opportunities to deepen engagement
through community of value.
Layer Purpose Control through functional structure. Co-creation through networks.
Input
– Supplier Role
– Customer Role
– Employee Role
Clearly defined economic roles.
- Supply at lowest-possible cost.
- Purchase at price.
- Conform and obey.
Networks of connections to ease integration and respond to insights.
- Engage in co-creation process driven from compatible unique
purpose and help write co-creation script.
- Orchestrate co-creation.
- Sense co-creation opportunities and manage co-creation risks.
Output Annual operating plans, tactical plans,
investment budgets.
Business change-building strategies, investment budgets, detailed co-
creation plans for change ventures, organization values.
Financial Focus Near bottom-line results and cash flow. Size of pay-off and probability of success
Economic
Measures
Planned profit achievement. Return on
capital invested. Costs. Productivity and
efficiency. EVA.
Project-based milestones. Rate of conversion from idea to co-created
business launch. Number of initiatives
26. • Focusing effort on the networks of value-added
relationships currently happening informally
• Helping customers release their full humanity as opposed
to just fulfil their role accountabilities.
• Humanity is released in networks of trust (Communities
based on social and moral obligations rather than rules).
These networks form the ‘real’ organization
26
Focus on relationships not structures
27. • Connected leaders use their personal influence to reconstruct the
social networks inside the organizations.
• Webs of informal connections (the ‘real’ organization) are critical
to effective organizations because they lubricate the formal
structure, spread expertise & innovation and create the flexibility
needed to respond to the demands of the people economy.
• Effectively ensure that customers fully engage with the
organization.
27
Connected Leaders and real organization
28. • Co-creation of meaning is different from product or service co-
creation in that it requires organizational activities to be shared.
• No longer do customers respond to products and services sold on
economic incentives but rather, if they are to engage fully with and
remain loyal to the organization, they seek reciprocity through
moral and social obligations.
• The people economy is characterized by the need of customers to
engage with communities that enable them to co-create meaning.
28
Co-Creation of meaning
29. In order to self-actualize, people are seeking to
reconnect with their humanity (rather than just
playing the roles of customer or employee) and
fulfill themselves through the relationships they
form within communities.
29
The Organization is a community of
individuals looking to co-create
30. They are trustworthy and have trust in others. This enables the
organization to manage the risks of co-creation with the
customer.
They give meaning to relationships by uniting stakeholders
around a shared agenda.
They encourage dialogue and powerful conversations as a way
to secure engagement.
30
Three key components of connected leadership
that create social and moral connections
31. 31
• What do people want ?
• How do organization Respond ?
The case for connection
32. • Motivation exists in everyone – it is your job to find it
• Your organization is a community of individuals looking to co-
create, not a collection of human resources waiting to deliver.
32
Leadership Takeaway
33. Leaders influence the engagement of people in two ways:
Traditionally, through the formal authority conferred upon them
by their position, and, as well as this, through the informal
authority rooted in their personal credibility.
It is this informal authority that is critical to the success of
leaders who are faced with responding to a new context
(the people economy)
33
Formal authority and Informal Authority
34. To be successful, leaders need to focus on others’
perceptions and needs.
They will therefore need not only the courage to stand
firm for what they believe but also the willingness to
support and challenge others in their search for
meaning.
34
Leadership is about being followed.
35. 35
• Both the consumption and experience economies rely
on organizations to generate the idea, create the
product and experience, and execute.
• By doing so, they limit What Do People Want?
• The Case for Connections their stakeholders’
involvement to capital, data or labor provision (thus,
creating the ‘disconnects’).
Consumption & Experience Economies
36. Your organization is a community of individuals
looking to co-create, not a collection of human
resources waiting to deliver.
36
The Organization is a community of
individuals looking to co-create
37. That engagement is achieved through a process of co-
creation.
To treat people as resources (human resources in the case
of employees and data in the case of customers) who play a
part in the creation of a product, or a service diminishes the
level of engagement possible.
37
The Organization is a community of
individuals looking to co-create
38. It is the role of the leader to build organizations that
provide the opportunity for individuals to be involved in the
creation of meaning.
38
The Organization is a community of
individuals looking to co-create
39. 39
For an organization to become a community in which
people search for meaning, they will need to be engaged
and involved in idea generation and creation at a deeper
level than simply through the provision of data and
information.
Search of Meaning
40. 40
Good Leadership : About getting staff to follow
Great Leadership: About getting customers to do the same
But here is the problem: the very actions that ensure good
leadership are the ones that will stop you from being a
great leader.
Welcome to the ultimate leadership paradox.
Good Leadership vs Great Leadership
41. 41
Great leaders get customers to follow them by creating
communities and connections that sense changes and
co-create responses to them.
Great Leadership
42. 42
Co-creation, in the context of a business, refers to a
product or service design process in which input from
consumers plays a central role from beginning to end.
Less specifically, the term is also used for any way in
which a business allows consumers to submit ideas,
designs or content.
Co-creation of Product & Services
43. 43
Co-creation of meaning is different from product or
service co-creation in that it requires organizational
activities to be shared.
Product and services versus
meaning and identity
44. Organizations built on formal accountabilities not only find it
hard to cope with reciprocity, but they actively destroy it.
This is what creates a disconnection between organization and
people.
Unaddressed, this disconnect will only grow as the people
economy strengthens
44
Disconnection between organization and people
(employee - customer)
45. Step 1: Understand the ‘real’;
Step 2: Map out the ‘formal’/’real’ gap;
Step 3: Evaluate your impact;
Step 4: Develop connected leadership characteristics;
Step 5: Build a supporting context.
45
Developing connected leadership
50. Business Model Canvas
(Agile Organization)
The business model canvas is a
shared language for describing,
visualizing, assessing and changing
business models. It describes the
rationale of how an organization
creates, delivers and captures value.
65. The ‘real’ organization is developed and cultivated, either by
increasing the web of connections and deriving general benefits, or by
realigning connections to match the formal organization.
Both approaches build sufficient agility to ensure customer
engagement and resilience to context change.
Leaders facing increasing role ambiguity, perform more effectively to
benefit their organization and themselves.
65
The characteristics of connected leaders and goals
achieved by developing Connected Leadership
66. Every healthy human being is motivated and engaged.
Humans possess energy that they will allocate to any
task provided it is closely aligned to their goals.
.
66
Motivation exists in everyone – it is your job
to find it.
67. As leaders it is our job to tap into that energy by
understanding what drives each and every one of our
stakeholders.
Whilst needs are complex and varied, the goal of all
human beings is to self-actualize.
67
Motivation exists in everyone – it is your job
to find it.
74. Business Model Canvas
(Formal Organization)
The business model canvas is a
shared language for describing,
visualizing, assessing and changing
business models. It describes the
rationale of how an organization
creates, delivers and captures value.
No matter how big or small your company, leadership is the lynchpin of organizational life.
Today, organizations thrive through connected leadership, where leaders are not afraid to be vulnerable, genuinely care about people, and encourage collaboration and innovation.
The people economy & co-creation of meaning: Customers (and employee) no longer respond to products and services sold on economic incentives
They seek reciprocity (the practice of exchanging things with others for mutual benefit, especially privileges granted by one person or organization to another) through moral and social obligations. They want to engage fully with and remain loyal to organization. The people economy characteristics: Need of customers (and employee) to engage with communities that enable them to co-create meaning.
Formal Organization
Organization built on formal accountabilities do not cope with reciprocity but actively destroy it. Creates a disconnection between organization and people. As people economy strengthens disconnect will grow.
Leaders' Influence on the engagement through: Formal authority conferred upon them by position, or Informal authority rooted in their personal credibility
Informal authority is critical to success of leaders who are faced with responding to a new context called - The people economy
Social and moral connections: To ensure that customers fully engage with organization, leaders need to use their personal influence to reconstruct the social networks inside the organizations. This webs of informal connections (the 'real' organization) are critical to effective organizations and allows lubricate formal structure, spread expertise and innovation and creates flexibility needed to respond to the demands of the people economy.
Key components to create social and moral connections: Connected leaders must develop three key components of connected leadership that create social and moral connections
1. To be trustworthy and have trust in others. (enabling the organization to manage risks of co-creation)
2. Give meaning to relationships by uniting stakeholders around shared agenda.
3. Encourage dialogue and powerful conversations as a way to secure engagement.
Connected Leadership goals
By understanding the characteristics of connected leaders and developing them, two valuable goals are achieved
1. The 'real' organization is developed and cultivated, either by
A. Increasing the web of connections and deriving general benefits or
B. By realigning connections to match the formal organization.
Both approaches build sufficient agility to ensure customer engagement and resilience to context change.
2. Leaders facing increasing role of ambiguity perform more effectively to benefit their organization and themselves.
As night fell on Downing Street, London on 26 July 1945, it must have been hard for Winston Churchill to believe that the British people he had led to victory in the Second World War had so unanimously rejected him as a leader. Churchill the leader of the Conservative Party wasn’t as appealing as Churchill the war hero.
His campaign posters said ‘Let him finish the job.’ The British people didn’t let him.
Most leaders know that leadership is situational. It is about using the right style, with the right person, in the right situation. They are masterful in their reading of situations, but fail to respond to was not so much a change in situation as a much more fundamental change – a change in context. Focused on responding to situations, faile to sense the broader change.
Economic drivers change:
The consumption economy had an elegant simplicity. You built something. They wanted it. They bought it.
Over time, oversupply made things more difficult and brands (in one form or another) were established as the key differentiators. The idea was simple. You still built the product, but now you branded it. They wanted it because it had your brand on it. They bought it.
But a brand that isn’t lived is an empty slogan. Tired of deaf and mute brands, customers demanded more. The experience economy was born. Here is how it works. You build a product, but now you create an experience to go with it. They want it because the experience makes them want to belong. They buy it. This is not dissimilar to the consumption economy, but simple ideas find it hard to go away!
But slowly, almost as surreptitiously as changes in the mood of the war generation, customers have learnt to like the experience so much that they no longer want it to be yours. They want to be in charge.
A new breed of customers is being born, one that is changing the very foundation of how business is done.
We are witnessing the arrival of a new economy, not technology driven this time but meaning driven.
No longer are customers looking for an experience or employees wanting a salary.
Human beings now long for meaning.
This has profound implications for the way we as human beings approach consumerism and consumption.
The people economy is an economy where people rather than organizations are in charge.
It is now futile for the organization to build a product betting on a customer wanting to buy it.
The people economy requires organizations to co-create with customers.
This they can only do if they transform themselves into communities that are of value to the self-actualizing customer.
For this to happen, leadership must change.
All viable businesses are based on a business model that represents a method for creating value for customers and capturing this value as revenue in a competitive market.
Explains the limits of our traditional thinking about how people get engaged by organizations. It sets out the conditions for successful engagement of individuals beyond what they have to do to what they want to do. This will show you why current leadership tactics are limited to the current context and why your organization needs to be able to adapt to a new context that I will call the people economy.
The rules of engagement: ‘People in flow are exhilarated and are remarkably unstressed even when doing challenging work. They lose themselves in a task they love and feel “out of time”. Their brains work efficiently and precisely. Working on exciting projects, completing a life-affirming task or simply shopping has led many to that ‘out of time’ state where people are fully invested. Flow occurs most often when tasks are tightly aligned with a person’s goals. Leaders must find a way to understand the goal of human beings.
The search for meaning: To self-actualize – to search for their true identity. Most of us have learnt about Maslow’s hierarchy of needs. The hierarchy of needs is a great way to segment the world. We don’t even think about it any more; it’s just part of our shorthand for understanding people. He divided human needs into two categories: deficiency needs and growth needs. The idea is that, until you have satisfied your deficiency needs, you will not begin to focus on your growth needs.
The individualistic society & The need for communities:
Leadership is a strange paradox: In order to be successful, leaders must adapt to the situations they face. Yet, by focusing on these situations, they often miss the radical shifts that are occurring around them. In effect, whilst trying to spot and adapt to changing events, leaders run the risk of missing a change in era. In an effort to address short-term challenges, they are forced to become short-sighted.
Good leaders always develop customer insights in the same way: They read the situation, bring back their understanding internally, conduct some analyses to establish the best response and deploy a solution through their structural teams (eg functions, geographies). This not only takes time but makes every situation appear more linear than it truly is. Good leaders are good at engaging staff, so they willingly follow, but that’s no longer enough. To be agile enough to respond to context change, the whole organization, not just its leaders, needs to be attuned to stakeholders’ changing expectations.
As internal and external complexity grows, structural teams no longer have either all the answers or the solutions: To sense a change in context and have the agility to respond, leaders must rely on people outside the boundaries of their functions, geographies and organizations. Their ‘intact’ team must give way to ‘impact’ teams. Great leaders get customers to follow them by creating communities and connections that sense changes and co-create responses to them.
A Goal Oriented entity that exist to accurate the efforts of individuals and it refers to the structure of jobs and positions with clearly defined functions, responsibilities and authorities
Organizational culture is a set of principles, values, language, history, symbols, norms and habits of an organization that collectively represent a competitive advantage or disadvantage.
Bureaucracy is a system that is largely controlled by unelected administrators without direct accountability to stakeholders. This is a common arrangement for government departments or entire governments. It is also common for international governance bodies, non-profit organizations, standards organizations, government monopolies and academic institutions to resemble a bureaucracy. Less commonly, private commercial entities such as large companies have a bureaucratic structure.
Corporate governance is a term for the accountability and responsibilities of the leaders of an organization including boards of directors and executive management. Leaders have a responsibility to investors, employees and communities to direct an organization with care to achieve stated goals while complying with laws, regulations and reasonable ethical standards.
Team culture are the collective behaviors of a team that emerge over time as a result of shared experiences and leadership.
Formal authority is a right to control resources and direct people that applies to a particular context. This term implies that authority is widely recognized and highly enforceable. This can be contrasted with informal authority such as influence that is based on soft power.
A strong culture is an organizational culture that has a significant influence on the behavior of employees. This can be contrasted with a weak culture, whereby people behave as individuals without shared norms.
A self-organizing team is a team that is managed according to what they deliver without management interference as to how delivery is achieved. It is associated with small teams of knowledge workers who are trusted to self-manage. Self-organization tends to function best when teams embrace a particular team culture such as agile.
Organizational culture is a set of principles, values, language, history, symbols, norms and habits of an organization that collectively represent a competitive advantage or disadvantage.
Bureaucracy is a system that is largely controlled by unelected administrators without direct accountability to stakeholders. This is a common arrangement for government departments or entire governments. It is also common for international governance bodies, non-profit organizations, standards organizations, government monopolies and academic institutions to resemble a bureaucracy. Less commonly, private commercial entities such as large companies have a bureaucratic structure.
Corporate governance is a term for the accountability and responsibilities of the leaders of an organization including boards of directors and executive management. Leaders have a responsibility to investors, employees and communities to direct an organization with care to achieve stated goals while complying with laws, regulations and reasonable ethical standards.
Team culture are the collective behaviors of a team that emerge over time as a result of shared experiences and leadership.
Formal authority is a right to control resources and direct people that applies to a particular context. This term implies that authority is widely recognized and highly enforceable. This can be contrasted with informal authority such as influence that is based on soft power.
A strong culture is an organizational culture that has a significant influence on the behavior of employees. This can be contrasted with a weak culture, whereby people behave as individuals without shared norms.
A self-organizing team is a team that is managed according to what they deliver without management interference as to how delivery is achieved. It is associated with small teams of knowledge workers who are trusted to self-manage. Self-organization tends to function best when teams embrace a particular team culture such as agile.
Theory X and Theory Y are theories of human work motivation and management.
Transactional leadership: Promote compliance by followers through both rewards and punishments.
Transformational leadership: Inspire positive changes in those who follow.
The leader–member exchange (LMX): Focuses on the two-way (dyadic) relationship between leaders and followers. Mutual respect for competence, trust in character and benevolence toward each other
Ethical leadership: Directed by respect for ethical beliefs and values and for the dignity and rights of others.
Authentic: Transparent behavior in order to build strong relationships.
A servant leader: Shares power, puts the needs of the employees first and helps people develop and perform as highly as possible. Focus on the needs of others before you consider your own.
Distributed leadership is a form of shared leadership. In a rapidly changing environment.
Complexity leadership focuses on emergent processes within complex systems and suggests that leadership needs to operate at all levels in a process-oriented, contextual, and interactive fashion. Emphasizes the importance of social interactions within organizations yet also illustrates the key role of the leader in enabling change.
Adaptive leadership means teams and organizations need to constantly assess their actions, recognizing that they will have to continuously iterate and adapt their interventions as they learn more about the outcomes of decisions.
A connected leader is someone with high levels of self-awareness, someone who comes across as human, someone who is not afraid to be vulnerable. A connected leader collaborates with their team and encourages honest dialogue and input from them in return. A connected leader is someone who will elevate people to be the best version of themselves.
Leaders must therefore focus their effort on helping customers release their full humanity as opposed to just fulfil their role accountabilities. This alone will lead to engagement. – In the people economy humanity is released in networks of trust (ie communities based on social and moral obligations rather than rules). These networks form the ‘real’ organization (ie the way people get things done and why they do them). – Your role is to ensure that these communities are created by focusing your effort not on creating formal structures but on helping the ‘real’ organization (ie the networks of value-added relationships currently happening informally in your business) to be expressed and aligned to your organization’s formal objectives.
Builds the case for a new form of leadership. It explores why connections are the only way to make a business agile through being able to
respond constantly to customers’ changing needs. It also shows how organizations can adapt to this challenge
Every healthy human being is motivated and engaged. Humans possess energy that they will allocate to any task provided it is closely aligned to their goals. As leaders it is our job to tap into that energy by understanding what drives each and every one of our stakeholders.
Whilst needs are complex and varied, the goal of all human beings is to self-actualize.
In order to self-actualize, people are seeking to reconnect with their humanity (rather than just playing the roles of customer
or employee) and fulfil themselves through the relationships they form within communities. That engagement is achieved
through a process of co-creation.
To treat people as resources (human resources in the case of employees and data in the case of customers) who play a part
in the creation of a product or a service diminishes the level of engagement possible. It is the role of the leader to build organizations that provide the opportunity for individuals to be involved in the creation of meaning
If good leadership is about getting your staff to follow then, surely, great leadership has to be about getting your customers to do the same.
looks more closely at the kind of leadership needed to respond to the needs of the people economy
The business model canvas is a shared language for describing, visualizing, assessing and changing business models. It describes the rationale of how an organization creates, delivers and captures value.
Defines the role of leader in the people economy. It shows how a leader’s impact is the new currency of engagement. It describes the key areas people focus on when deciding whether they will engage with a leader or not.
Describes the drivers of a leader’s impact. It shows how a leader’s impact comes from that leader’s beliefs about what is desirable or not. It shows how these beliefs (which made leaders successful in the past) are now stopping leaders from becoming resilient to the new context. It offers a set of beliefs that underpins success in the people economy
Details the key components of connected leadership and what connected leaders do to capitalize on each of these.
the three critical building blocks of connected leadership impact (trust, meaning and dialogue). They show you what connected leaders are doing to create engagement. These are the tactics that will help you build new connections and ensure your resilience within the people economy by changing the nature of your impact.
the three critical building blocks of connected leadership impact (trust, meaning and dialogue). They show you what connected leaders are doing to create engagement. These are the tactics that will help you build new connections and ensure your resilience within the people economy by changing the nature of your impact.
the three critical building blocks of connected leadership impact (trust, meaning and dialogue). They show you what connected leaders are doing to create engagement. These are the tactics that will help you build new connections and ensure your resilience within the people economy by changing the nature of your impact.
Economic drivers change.
The consumption economy had an elegant simplicity. You built something. They wanted it. They bought it.
Over time, oversupply made things more difficult and brands (in one form or another) were established as the key differentiators. The idea was simple. You still built the product, but now you branded it. They wanted it because it had your brand on it. They bought it. But a brand that isn’t lived is an empty slogan. Tired of deaf and mute brands, customers demanded more.
The experience economy was born. Here is how it works. You build a product, but now you create an experience to go with it. They want it because the experience makes them want to belong. They buy it. This is not dissimilar to the consumption economy, but simple ideas find it hard to go away! But slowly, almost as surreptitiously as changes in the mood of the war generation, customers have learnt to like the experience so much that they no longer want it to be yours. They want to be in charge.
