This document outlines the seven habits of highly effective organizations: 1. Trust people - Valve Software and Morning Star trust their employees and embrace failure. 2. Tolerate and embrace failure - Many successful people like Edison, Jordan, and Einstein have failed numerous times but learned from failures. 3. Be brutally honest with yourself - Organizations should have alignment and autonomy, not force conformity or allow chaos. 4. Allow autonomy at all levels - Like the German military doctrine of "mission command," organizations should set clear goals but allow flexibility. 5. Think big, stay small - Companies like W.L. Gore stay small while thinking big through decentralized operations. 6. Simplify

1. The Seven Habits of
Highly Effective Organisations
Erwin van der Koogh
Principal Consultant
evanderkoogh
Growing software

2. The World is Changing

3. “You are not prepared!”
- Illidan Stormrage

4. Source: Gallup (http://www.gallup.com/poll/165269/worldwide-employees-engaged-work.aspx)Icon made by Freepik
13% of employees engaged at work

5. “When the task required
even rudimentary cognitive
skills, increased pay led to
poorer performance.”
- Dan Ariely

7. The cost of just the disengaged
employees in the US alone is
estimated to be $350 billion
Source: Gallup (http://www.gallup.com/businessjournal/247/high-cost-disengaged-employees.aspx

8. - William Gibson
The future is already here.
It is just not very evenly
distributed

9. 7 Habits

10. People

11. 1Trust People

12. Valve Software

13. Morning Star

14. 2Tolerate Embrace Failure

15. I have not failed.
I have just found 10,000
ways that won’t work
Thomas Edison
Image © https://www.flickr.com/photos/besz/

16. I've missed more than 9000 shots
in my career. I've lost almost 300
games. 26 times, I've been trusted
to take the game winning shot
and missed. I've failed over and
over and over again in my life. And
that is why I succeed.
Michael Jordan
By Diegoestefano97 (Own work) [CC BY-SA 3.0]

17. Anyone who has never made
a mistake has never tried
something new
Albert Einstein

19. The Organisation

20. 3Be Brutally Honest
with yourself

22. VS.

23. VS.

24. 4Allow Autonomy
At All Levels

26. The tactical result of an
engagement forms the base for
new strategic decisions because
victory or defeat in a battle changes
the situation to such a degree
that no human acumen is able to
see beyond the first battle.
Helmuth Moltke the Elder

27. “A military doctrine where commanders
give subordinate leaders a clearly
defined goal instead of a detailed order.”
Auftragstaktik (Mission Command):

28. Alignment)&)Autonomy)
Alignment
False dichotomy!
Do what
I say!
Autonomy
Do
whatever
Source: Stephan Bungay. Image © Hendrik Kniberg
X

29. Alignment)enables)Autonomy)
High
Alignment
High Autonomy
Build a
bridge!
Micromanaging
organization
Indifferent
culture
Entrepreneurial
organization
Chaotic
culture
Authoritative
organization
Conformist
culture
Innovative
organization
Collaborative
culture
We need to
cross the river
Figure out how!
We need to
cross the river
Low
Alignment
Low Autonomy
Hope someone is
working on the
river problem…
Source: Stephan Bungay. Image © Hendrik Kniberg

31. Jan Wallander - Former CEO of Svenska Handelsbanken
“The branch is the bank”

32. 5Think Big, Stay Small

33. W.L. Gore & Associates

36. What you do

37. 6Simplify All the Things

39. Consumers Professionals
Desktop iMac Power Mac
Laptop iBook PowerBook

41. 7Relentless Customer Focus

42. Audience Participation
Q: What are typical customers of Facebook?
A: Advertisers
Q: What does that make us?
A: The Product

44. Now what?

45. Image © John Shepherd https://www.flickr.com/photos/johnrobertshepherd

46. “The only lasting
competitive advantage
left in the 21st century is
adaptability.”

48. “Management by
objectives is an outdated
technology”