Exponential Organizations: Why new organizations are ten times better, faster, and cheaper than yours (and what to do about it)

by Salim Ismail

the lightweight OKR approach will gradually replace traditional top-down managerial oversight.

“We start from the presumption that our people are talented and want to contribute.

“There are still hierarchies in a network, but the hierarchies tend to be competence-based hierarchies, relying more on peer accountability than on authority-based accountability—that is, accountability to someone who knows something, rather than to someone simply because they occupy a position, regardless of competence. It is a change in the role of the manager, not an abolition of the function.”

A century ago, competition was mainly driven by production. Forty years ago, marketing became dominant. And now, in the Internet era, as production and marketing have been commoditized and democratized, it is all about ideas and ideals.

“somebody who tells you why something cannot be done”

The only solution is to establish a big vision (i.e., an MTP), set an ExO structure into place, implement a one-year plan (at most) and watch it all scale while course-correcting in real time.

Peter Thiel and Blake Masters’ recent publication, Zero to One: Notes on Startups or How to Build the Future.

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While we recommend reading the entire article

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Those who really want something will find options. Those who just kind of want it will find reasons and excuses.

Osterwalder’s new book, Value Proposition Design: How to Create Products and Services Customers Want.

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“An invention needs to make sense in the world in which it is finished, not the world in which it is started.”

Holacracy model (OKRs, Lean, open, transparent).

Research

execution eats strategy for breakfast.

Remember

The authors tracked Haier for over a decade, along the way identifying four key stages that large organizations must navigate to reinvent their cultures: Build quality Diversify Re-engineer the business process Reduce distance to customer

“If you’re competitor-focused, you have to wait until there is a competitor doing something. Being customer-focused allows you to be more pioneering.”

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