Watch video here: https://youtu.be/r-vh4xXBV6I The Future of Organizations is Responsive // How to Unlock Your Organization’s Potential to Change the World // Presented at Telstra Retail Innovation Summit in Sydney, February 2016. // Presenter notes available here: https://medium.com/@mikearauz/5e2e9b5af16a

1. What’s stopping your
organization from
changing the world?

2. Hi. I’m Mike Arauz.
@mikearauz www.aug.co
This is where I work.

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President knows best…

4. DO YOU WORK WITH SOMEONE WHO…
Haggles over the precise wordings of
communications, minutes, resolutions.
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5. DO YOU WORK WITH SOMEONE WHO…
Refers back to matters decided upon
at the last meeting and attempts to
re-open the question of the advisability
of that decision.
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6. DO YOU WORK WITH SOMEONE WHO…
Insists on doing everything through
“channels.” Never permits short-cuts to
be taken in order to expedite decisions.
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7. CIA GUIDE
FOR SIMPLE SABOTAGE
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8. Work doesn’t work.

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24%
63%
13%ACTIVELY
DISENGAGED
ENGAGED
NOT ENGAGED
SOURCE: GALLUP “STATE OF THE GLOBAL WORKPLACE REPORT”

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-4.0
0.0
4.0
8.0
1949 1970 1991 2012
SOURCE: UNIVERSITY OF NOTRE DAME
PRODUCTIVITY GROWTH
AS A FACTOR OF GLOBAL OUTPUT

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0.0%
1.7%
3.3%
5.0%
1965 1980 1995 2010
RETURN ON ASSETS
SOURCE: DELOITTE SHIFT INDEX

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0
18
35
53
70
1958 1982 2006 2030
AVERAGE COMPANY LIFESPAN
ON S&P 500 INDEX
61YEARS
15YEARS
SOURCE: RICHARD FOSTER AT INOSIGHT

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0.0%
16.7%
33.3%
50.0%
2001 2004 2007
DIFFERENCE IN LABOR PRODUCTIVITY
FRONTIER FIRMS
v.
SERVICES
MANUFACTURING
EVERYONE ELSE
MANUFACTURING
SERVICES
SOURCE:“THE FUTURE OF PRODUCTIVITY,” OECD 2015

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Exponential Change

15. Exponential
Innovation →
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3D PRINTER SENSORS DNA SEQUENCING
$40,000 → $100
400x in 7 yrs
$20,000 → $79
250x in 5 yrs
$10MM → $1,000
10,000x in 7 yrs

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2
4
6
8
10
12
14
16
18
20
TYPICAL
FORTUNE 500
COMPANY
GOOGLE FACEBOOK TESLA UBER WHATSAPP SNAPCHAT OCULUS
RIFT
20
8
5
4
2 2 22m 14m
YEARS TO REACH $1B MARKET CAP

17. Exponential
Growth →
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PHONE
NETWORK FACEBOOK ANDROID
89 years →
150 million users
8 years →
1 billion users
5 years →
1 billion users

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Our way of working
is out of date.

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Closed
ControlledEfficient
++
+
Industrial
Model
Purpose

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Certain Uncertain

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Certain Uncertain
What Most Companies
Are Designed For

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Certain Uncertain
What Most Companies
Are Designed For
What Computers
Are Good At

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Certain Uncertain
What Computers
Are Good At
What Humans Need
To Be Good At
What Most Companies
Are Designed For

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Open
NetworkLearning
++
+
Responsive
Model
Purpose

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It goes by many labels:
RESPONSIVE ORG
EXPONENTIAL ORG
REINVENTING ORGS
THE 5TH DISCIPLINE
AGILE
LEAN STARTUP
THE B TEAM / B CORP
HOLACRACY
Leading to a revolutionary shift

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Closed
ControlledEfficient
+
+
+
Open
NetworkLearning
+
+
+
How do you change
from one paradigm to another?
PurposePurpose

28. Purpose

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A capable team for every
meaningful mission

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Accelerate the advent of
sustainable transportation

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Build the best product, cause no unnecessary harm,
use business to inspire and implement solutions to
the environmental crisis.

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(1975)
A computer on every desk.

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(2015)
Empower every person and
every organization on the planet
to achieve more.

34. Get Started: A good Purpose is…
‣ User/Customer-centric: express the impact you aim
to make for those you serve
‣ Brief: ~140 characters or less
‣ Clear: jargon-free and easily understood
‣ Ambitious: inspire the team to be their best
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35. Open

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public.aug.co

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A knowledge exchange platform
that intelligently matches
questions to answers

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70% turnover every 2 months
17 customer visits per year

39. Get Started: Working in public
Tools to try
‣ Cloud-based documents: MS OneDrive, Box, GoogleDocs
‣ Collaborative project management: Trello, Asana, Basecamp
‣ Chat applications: Slack, Hipchat
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40. Learning

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Running consulting services as
an agile software product

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Over 2,000 experiments per year,
live, with real customers

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Shut down every store
for a full day

44. Get Started: What/Where/What Review Process
3 simple questions
‣ What worked?
‣ Where did we get stuck?
‣ What might we do differently?
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45. Network

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Open compensation model

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80% performance improvement
$20mm in savings for customers

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Serving 1,800 customers per
employee, and over $40,000
in deposits per employee

49. Get Started: Rules for your next project team
‣ Lean: 7 ±2 people
‣ Multi-disciplinary: Mix of necessary skills
‣ Clear timelines: specific goal, testable within <3m
‣ Self-organizing: decides for themselves who does what
‣ Independent: able to ship without external approvals
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Open
NetworkLearning
++
+
Change is
possible
Purpose

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Thank you.
Get in touch: mike@aug.co
Subscribe: aug.co/newsletter

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