CLOSING the KNOWLEDGE DIVIDE

Kyle Lacy (@kyleplacy)

Steps to Building the Business of the Future

http://bit.ly/TrueU2017

My Career

Lessonly is used by thousands of teamsto translate important work knowledgeinto lessons that accelerate productivity.

The Reality of Business in 2017

THE ORGANIZATIONS OF THE FUTUREThe rules are crusty and old.

OLD RULES

Organized for efficiency and effectiveness

Company viewed as a hierarchy, with decision rights, structure, and leadership progression

Structure based on business function with functional leaders and global functional groups

People “become leaders” through promotion

Lead by direction

Culture ruled by fear of failure and perceptions of others

Roles and job titles clearly defined

Deloitte University Press | dupress.deloitte.com

We must understand change.

$205,000,000,000total estimated cash reserve

Technology

Highest Performing Teams and Businesses

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Typical Businesses

Deloitte University Press | dupress.deloitte.com

My morning before 8am…

Deloitte University Press | dupress.deloitte.com

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IndividualsTechnology

Highest Performing Teams and Businesses

Typical Businesses

Deloitte University Press | dupress.deloitte.com

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IndividualsTechnology

Highest Performing Teams and Businesses

Typical Businesses

KNOWLEDGEDIVIDE

KNOWLEDGE DIVIDE: the gap between those who can find, create, manage, process and disseminate information and those who are impaired in the process.

The impact of this divide is real.

“People are falling behind because technology is advancing so fast and our skills and organizations aren’t keeping up.”

— Erik Brynjolfsson, MIT

Netflix vs. Blockbuster (2004 - 2010)

$6 Billion

Time

$4 Billion

$2 Billion

$0

Blockbuster Revenue

Netflix Revenue

“Companies rarely die from moving too fast,and they frequently die from moving too slowly.”

—Reed Hastings, Netflix

Netflix is a $60 billion company.That’s 12x Blockbuster’s peak value.

Deloitte University Press | dupress.deloitte.com

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KNOWLEDGEDIVIDE

SPEED ACCESS ANALYTICS

SPEED

RULES AROUND SPEED

Empower Change

Share Before Your Are Ready

Minimum Barrier to Entry

EMPOWERING CHANGEOld way vs the New way

OLD WAYCompany viewed as a

hierarchy, with decision rights, structure, and

leadership progression

NEW WAYCompany viewed as an agile

network, empowered by team leaders and fueled by

collaboration and knowledge-sharing.

EMPOWERING CHANGETechnology to bridge the gap.

Summary of Freedom & Responsibility

◦ As We Grow, Minimize Rules◦ Inhibit Chaos with Ever More

High Performance People◦ Flexibility is More Important

then Efficiency in the Long Term

Minimum Barrier to Entry

1999

VENMO GROWTH CONTINUES TO CLIMBTotal payment volume over time (2013-2016)

In Q116 alone, Venmo processed 3.2 billion, a 154% increase from Q1 2015

BETTERMENT REDEFINES INVESTING

RULES AROUND SPEEDChange is happening. It’s just a matter of how fast.

Embrace the speed of change: How do you speed up the slower traditional operating model? Understand how strategy, connectedness, customers, and talent pools are all changing as part of the digital transformation. (Deloitte)

Make MVP a core value: Share before you are ready. Your customers are your best sales people. Build in processes to support simplicity in product design.

Examine new communication tools: Consider technologies like Workplace, Slack, Base- camp, Asana, Trello, Workboard, and others. (Deloitte)

ACCESS

RULES AROUND ACCESS

Just-in-Time Knowledge

Personalization Matters

Experience Driven

ACCESS MATTERSThere are two areas of impact…

KNOWLEDGE LEADERSHIP

When you need it now

Type to search

Google Search I’m Feeling Lucky

JUST-IN-TIME: denoting a manufacturing system in which materials or components are delivered immediately before they are required in order to minimize inventory costs.

AMAZON IS PURE GENIUSAnticipatory shipping.

“Amazon says it may box and ship products it expects customers in a specific area will want—based on previous orders and other factors…”

Higher productivity40%

ACCESS TO LEADERSHIPOpen the lines of communication and transparency

In 2007, Dorsey started sending out a weekly email to everyone at ExactTargetcalled “My Friday Note.” Typically, it included a variety of personal notes and photos from his travels, as well as reflections on the previous week, key company metrics (nothing was off limits), and important changes to growth strategy.

ACCESS TO LEADERSHIPOpen the lines of communication and transparency

In five years, Scott never missed a weekly email — even if he was on vacation, or dealing with the rigors of fundraising and scale — and that had a hugely positive impact on employee engagement.

ANALYTICS

“We all have beliefs, tendencies, and desires that are formed and sustained—not by data—but by some combination of our past and our pride. When we deem any one of these beliefs, tendencies, or desires to be incontrovertibly true, the result is dogma.”

— Max Yoder

“We must move from numbers keeping score to numbers that drive better actions.”

— David Walmsley

METRICS THAT MATTERData helps the company focus.

Quantitative Qualitative• Churn Analysis• Sales & Marketing KPIs

• Win/Loss Reviews• Customer Surveys• Employee Surveys• Product Usage Stats

WATERFALL GOAL

ORIENTATION

We believe providing (individual) with this (service) will result in this (outcome).

We will know this when we see (measureable result).

@JimKalbach

- Jim Kalbach

THE ORGANIZATIONS OF THE FUTUREOld vs New

Old rules New Rules

Organized for efficiency and effectiveness

Company viewed as a hierarchy, with decision rights, structure, and leadership progression

Structure based on business function with functional leaders and global functional groups

People “become leaders” through promotion

Lead by direction

Culture ruled by fear of failure and perceptions of others

Roles and job titles clearly defined

Deloitte University Press | dupress.deloitte.com

THE ORGANIZATIONS OF THE FUTUREOld vs New

Old rules New Rules

Organized for efficiency and effectiveness Organized for learning, innovation and customer impact

Company viewed as a hierarchy, with decision rights, structure, and leadership progression

Company viewed as an agile network, empowered by team leaders and fueled by collaboration and knowledge-sharing.

Structure based on business function with functional leaders and global functional groups

Structure based on work and projects, with teams focused on products, customers, and services

People “become leaders” through promotion People “create followers” to grow in influence and authority

Lead by direction Lead by orchestration

Culture ruled by fear of failure and perceptions of others Culture of safety, abundance, and importance of risk- taking and innovation

Roles and job titles clearly defined Teams and responsibilities clearly defined, but roles and job titles change regularly

Deloitte University Press | dupress.deloitte.com

The company is viewed as an agile network, empowered by team leaders and fueled by collaborationand knowledge-sharing.

http://bit.ly/TrueU2017