-: 7.5, shaping the organisation for new business models.
All right, dynamic capabilities,
just please have a look at the clip in guided learning.
You can jump in the forum
if you have a specific question.
Which of the following is not one of the features
of an agile organisation?
Pause the video, and complete the quiz.
All right, it's three,
a waterfall approach to project management and delivery.
The other three, it's number C.
The other three I mentioned,
and we know waterfall from project management
and stuff is a very rational technique.
It's not an agile technique at all, it's the opposite.
The key difference between agile and lean startups
is to me pretty much nothing.
Agile did start in software development.
It's now moved though to be more of a management philosophy,
and it's much, much harder to do than it looks,
that it looks, apologies.
Agile organisations.
Here is a diagram that you can reference from McKinsey.
Out of this diagram, from organisations as machines
to being organisations,
no, it's a living organism, okay.
Okay, so saying what we're saying before is that,
if you're agile,
then you've got to be more fluid,
you've got to be more flexible,
I suppose a living organism.
You have to these things,
quick changing flexible resources, boxes and lines,
less important folks.
That means planning is less important.
Action making decisions moving on.
I suppose I would say KnowledgEquity
has been an agile organisation.
We did not have time
for more than 10 or 20 minute discussions about something
would be quite an important strategic decision
before we just made the decision and moved on.
And if we saw that things were not working out well,
we'd make another decision
and then we'd make another decision.
That's what it's about to me.
You make decisions, you monitor closely,
you accept that you get some things wrong,
and you keep making more decisions.
There is also figure 7.15 that gives you more detail
about the trademarks of agile organisations,
from strategy through to tech.
You could easily get a question based on this.
So yeah, go back and look at it.
Some of it should be fairly obvious.
Agile have flat structures.
Agile do rapid iteration, experimentation.
Agile have evolving architecture systems and tools.
Agile have an entrepreneurial drive.
They're mobile, they're continuous learning.
All of those things.
Entrepreneurial orientation.
Obviously going to be closely related to agile.
There's three dimensions, innovativeness,
proactiveness and risk taking.
I'm not going to go into it further,
please read that short section.
Should make sense because if you got to be entrepreneurial,
you have to innovate, you have to make decisions,
and just keep moving
and you have to be willing to take risks.
Then there's 7.16, strategic innovation.
As a CPA one, strategizing, entrepreneuring,
investing, and changing.
I don't have too much to say about this.
Be able to reference it in your index and get to it.
And there's a short section after it.
I don't know.
Look, a lot of module seven
seems a bit like a literature review to me.
Sorry, moving on, intrapreneurship.
This one's a little bit more well known.
Someone who does it from the inside the organisation.
The entrepreneur that's not putting
their house on the line and risking everything
and they're not going to become a billionaire out of it,
but they're passionate about thinking this way.
And so they do it from inside the organisation,
but it doesn't work.
This is really important.
They can't take innovation from an idea to realisation
without the supporting culture.
And that means leadership, commitment of resources,
good decision making.
But to be honest,
all the things are good organisations should do.
We know these organisations like Google,
20% of your time, 3M at the 15%, is there one?
Dedicated to just doing your own thing.
And it doesn't matter if your own thing
ends up eventually nothing,
then try another, do your own thing.
Try another idea, okay?
So the point about the intrapreneurship here is that,
it can work but organisations have to support it.
Lots of them, I think say that they do,
but then you don't always see the necessary structure
and processes behind.
Open innovation, again, it's got aspects of intrapreneurship
because Phillips are doing it within themselves.
Four things here, value provision,
sharing your resources and knowledge with others.
So it talks about how they have the MI Plaza
and they invite others in to work on that.
But negotiation is about what IP are they going to retain?
And this one does link closely to value partake
because you've got to allow your collaborators
to get some value at the end of this.
But at the same time, you've still got to retain IP
so that you have your value.
If these guys are putting up all the money
for people to come in and do this work
and they're getting Phillips IP, some of Phillips IP
and they're getting infrastructure to be able to do it
and then they're going to want to retain the IP.
And realisation is also linking it
to a corporate social responsibility,
linking it to more of a stakeholder view of ethics
than a classical view of ethics, all right?
That value is beyond the profit loss statement.
7.6, we are getting there, we are getting there.
This is the last one.
There's still a lot of this as well.
So, bang, bang, bang.
Leading business model innovation,
to me, when I read it,
it's the same as providing good leadership
for any organisation.
Break down barriers to knowledge sharing.
Mentioned, I think knowledge sharing was in module four.
I'm not sure it's almost in module one as well.
Sorry if I got that wrong.
Overcome behavioural and social barriers to change,
module six, dealing with change.
Create a culture and process for organisational learning,
modules one, bit in module five.
Create an environment that supports creativity,
experimentation, design thinking, stuff like that.
Module four, you have already covered lots of this
across the other modules.
So when you read this, you should be able to go,
"Ah, yep, yep, I get that."
All right, leadership and management implications
of tech-enabled business models.
So, some of this is covered start of module seven,
but the extra bits I think they're trying to say here
is yes, automation will change how we work.
Leaders need to be aware of how to harness that.
One aspect of that is organisations
will become more decentralised, why can they do it?
Well, if you think about all the administrative processes,
if you think about the things
that could be negatives or go a bit wrong
with decentralised organisations back to module six,
then you get aspects like decision making
becoming inconsistent.
Communication channels not working well,
or performance management
not being consistent across different divisions.
If you use tech and it becomes more and more accurate
with your systems and faster with your coms,
then you can take some of that out of people's hands
and things just run automatically,
but you can also then develop more consistency
and then you can be more robust.
If you can do that, you can be more decentralised.
Investments in tech have to be robust,
but you got to weigh up risk and reward.
What's the study guide saying here
is that you have to be prepared to go down a path
of complete failure in something to do with tech,
because even though the risk factor
when you present it to the board
is higher than you would like,
if the board has decided,
they have to decide that it's going to be
within their risk tolerance range
because if they don't,
then they'll never find any disruptive technology.
An example, I think we once talked about Amazon and Bezos,
Amazon Fire Phone, look, it was a huge flop.
Jeff Bezos isn't a stupid man.
He is almost the world's richest man.
So he's done okay.
And so there's a point you would think
that where they looked at that and went,
there is a big risk with this,
where want to take on apple in the phone market,
and we sell stuff online.
We're just the world's biggest with Alibaba online retailer.
So they still have to make that decision of going,
this could all go wrong, but this is an investment in tech,
we've done as much analysis as we can.
That is worth a shot.
Something like that.
And technology also brings risks.
It mentions there in the study guide
things like the hacking of systems and whatnot,
that has increased a little bit more the exposure
to that risk because of things like the internet of things,
everything being connected to everything
and also reliance on third party providers,
app developers and whatnot.
So they develop stuff that links to your system,
but who's the one that gets hacked?
So, figure 7.17,
sorry, I don't have any further information on this
other than I want you to take note of it,
be able to get to it.
You have got your five different parts of the roadmap
for successful digital transformation
within your company,
and look, some of it is stuff that you're going to know.
You've got to have good goals,
you've got to use tech,
you've got to involve customers,
you've got to think about leadership support
and have a culture.
Some of these link pretty closely to the five factors
for successful product development, all right?
There's overlap, sorry, but it's there.
Oh, the New York Times case,
we don't have time to go through it because it's big,
but it's a good in-depth case.
So take note, please though,
was raised in the full study guide answers
are polling numbered.
So there's confusion.
It's not that they're incorrect,
it's mixed around a bit
and I'm sure CPA will get that fixed in the next edition,
but just be aware of that, all right?
But it's a good one to do.
All right, so moving on, decision making.
So decision making is in a couple of different place
in the study guide,
but here it is saying you need to have enough information
and good information before you make your decision.
You have to understand the causation,
how decisions you'll make now,
how they will affect future decisions you have to make.
It says make more small decisions and make more of them.
Again, we're talking about disruption,
emerging business models,
and how companies
have to perhaps modify the decision making slightly
and you got to have good governance, right?
It talks about people involved in decisions,
assigning the people to the right decisions,
managing the risk, putting the decision responsibility
or decision rights with the groups
that we will get the most value
so that they pay more attention to it.
It's potentially another thing.
But don't forget this all does relate
back to rational decision making in module one, right?
There's similarities there.
If anything, I think for me,
I look at some of these and go, it's the same concept,
but there's these nuances, there's little changes
here and there where we are considering
the really intense competition
and the faster and rapid change
and how that might affect going about decision making.
If anything, the main part is you make them
with more risk, more ambiguity.
You have to make them more often.
And I think this one's quite good.
You make small decisions, but you just do it all the time.
Other areas of module seven, build your index,
leadership for startups.
To an extent,
this is already covered other areas of the study guide.
So I wouldn't worry too much about it.
Managing disruption, links to early content in module seven
and this idea of the innovators dilemma, right?
But have the bits there in the index
so you can go to this section
in module seven if you need to.
Stakeholder management is a wide variety of stakeholders
and interest to company strategy.
We know that, in terms of emerging business models
and hyper competition or disruption,
these new business models can be seen to be riskier.
So stakeholders may have to be managed more carefully
because if you think about the main stakeholder
involved here, the investor,
it can be harder to convince them
in an emerging business model
where they don't know it.
They don't know how successful it's been,
they don't know who's going to come and compete against it.
Especially if you're doing something more architecture,
you're creating a new little mini value chain
within a larger one, you've got to convince investors
that this is going to take off.
That's why, not hedge funds,
no, venture capital, sorry.
Venture capital 125% return
and why they might invest $100 million in someone,
but they have very close control of the company
because there's a very high risk
that that new business model,
that disruptive business model is not going to work.
Right, so that links the same one there.
You can look a bit further,
perhaps the examples of Virgin gala,
galactic and lime scooters.
So read about that straight
after this section in the study guide.
Know those two because you could, I read that and went,
yeah, I can write a couple of questions,
exam questions against these examples,
'cause I can use the example
to ask a student to apply theory.
Build your index more,
yes, so self-awareness, emotional intelligence,
just taken directly out of CBI,
as far as I can see, this one here.
It's these things here, just worry about that.
Self-awareness, self-management,
social awareness, social skills.
I can't remember who I talked about in CBR.
I think I talked about the challenge
for someone like Elon Musk,
'cause he had self-awareness, self-management,
social awareness, and social skills as the leader of Tesla.
Again, know these four terms
and how to get to that in your index.
And finally, I think I'm close to the end,
formal leadership and informal leadership.
So formal leadership, there's a bunch of bullet points here,
follows through from getting the interpersonal skills right
to the understanding of emotional intelligence.
Getting, how do you be personalised as a leader to people
without having to have a personal relationship
with every single person in your organisation?
Again, interpersonal skills.
So a bit repeated there, interactive and social environment.
Yes, and in this one, this is so important too.
Informal leadership happens through two main ways,
using networks, management, hanging out with management,
not always necessarily in a company workshop,
but also just hanging out.
It actually does happen over the coffee break.
It actually does sometimes happen
over the Friday drinks with management.
Because sometimes, I be in the situation,
you feel a bit on your own,
whether you're in middle or senior,
more on your own senior management.
And you sometimes just need to talk to other people,
but have an open and transparent conversation.
And also by doing that, you get this thing.
Remember, tacit knowledge that transfer
through being with others and learning with others.
That's the big difference between the informal
and there's more processes and whatnot informal leadership.
All right, wow.
Module seven, emerging business models,
but lot crammed in there.
We have looked at the drivers of change and tech,
the idea of extension transformation.
We have looked at different business models
and strategy from the business model canvas.
That's probably the biggest one in that,
take that key one away with you.
We have thought about the implications for strategy,
how organisations are understanding things
like disruption, right?
What that means?
New business models can disrupt organisations,
low end disruption, new market disruption.
How are you going to respond to that disruption?
You're going to milk it, block it,
go back to core competencies,
accept your businesses to put in your borders and yet out.
We also have to think about how organisations
are shaping for new business models, right?
That includes everything
from understanding value based strategy
to the strategy compass,
or strategy compass is more back in the implications, sorry.
But the value based strategy
and how you are still trying to extract value,
how you go about changing your organisation
because it links the cost to leadership.
There's just a lot of different leadership
sure concepts in there.
And most of it's relating to new ventures and startups.
I'm sorry if this feels like a whirlwind tour
of module seven,
but I felt it was a whirlwind tour myself of the module.
Please don't worry.
There is a lot in it.
So don't feel like that you are worse off
after you've read module seven.
There's a hell of a lot in it crammed in there.
And so you're just going to have that good index.
You may have to apply something in a written question.
I don't know, or in a case vignette,
but have a really good index
and maybe some summary notes
to be able to get you the right section at the right time.
And that is the end of the global strategy
and leadership webinar series for 2020.
Thank you for being with me,
I appreciate it.