Exponential Organizations Quotes

Today, if you’re not disrupting yourself, someone else is; your fate is to be either the disrupter or the disrupted. There is no middle ground.

The great differentiator going forward, the next frontier for exponential growth, the place where individuals and organizations will find a new and sustainable competitive edge, resides in the area of human connectivity.

in the future, the defining metric for organizations won’t be ROI (Return on Investment), but ROL (Return on Learning).

While exponential growth is a remarkable manifestation of our extraordinary accomplishments as a species, built into it are the potential seeds of our demise and the portent of big troubles just around the next corner.

The ultimate objective is what the Gartner Group calls a zero latency enterprise—that is, a company in which the time between idea, acceptance and implementation all but disappears—and implementing

Most [organizations] think the key to growth is developing new technologies and products. But often this is not so. To unlock the next wave of growth, companies must embed these innovations in a disruptive new business model.

As Eric Ries explains, “The modern rule of competition is whoever learns fastest, wins.

when you move from point A to point B, you can then see point C. But you can’t see point C from point A. Iteration/experimentation is the only way.

The late maverick economist Kenneth Boulding perhaps best summed it up when testifying before the U.S. Congress, declaring that “anyone who believes exponential growth can go on forever in a finite world is either a madman or an economist.

Martin Seligman, a leading expert on positive psychology, differentiates between three states of happiness: the pleasurable life (hedonistic, superficial), the good life (family and friends) and the meaningful life (finding purpose, transcending ego, working toward a higher good). Research shows that Millennials—those born between 1984 and 2002—are showing an orientation towards seeking meaning and purpose in their lives.

as data becomes the new oil, many business models will be transformed from hardware to software to services.

In an ExO world, purpose trumps strategy and execution overrides planning.

In general, if an organization needs to do something that uses computation, and that task is too expensive today, it probably won’t be too expensive in a couple of years.

McKinsey & Company advised AT&T not to enter the mobile telephone business, predicting there would be fewer than one million cellular phones in use by 2000. In fact, by 2000, there were one hundred million mobile phones.

An Exponential Organization (ExO) is one whose impact (or output) is disproportionally large—at least 10x larger—compared to its peers because of the use of new organizational techniques that leverage accelerating technologies.

as technology brings us a world of abundance, access will triumph over ownership.

Today, if you’re not disrupting yourself, someone else is;

It is our opinion that in the future, the defining metric for organizations won’t be ROI (Return on Investment), but ROL (Return on Learning).

The world has over a trillion hours a year of free time to commit to shared projects,

In 2013, Reddit, which has just fifty-one employees, most of whom manage the platform, saw 731 million unique visitors cast 6.7 billion votes on 41 million stories.

When failure is not an option, you end up with safe, incremental innovation, with no radical breakthroughs or disruptive innovations.

According to noted hotelier Chip Conley, “Culture is what happens when the boss leaves.

You have to be self-aware and look for that startup idea and purpose that is a perfect fit with you—with you as a person, not as a business[person].

Any company designed for success in the 20th century is doomed to failure in the 21st.

6Ds: Digitized, Deceptive, Disruptive, Dematerialize, Demonetize and Democratize. Any technology that

The biggest risk is not taking any risk.

If you really want to know what an organization or a team values, just study their culture.

In fact, the best definition we’ve found for a startup comes from Ries: “A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty.

To demonstrate, consider the number of times the founders of the following companies pitched investors before finally succeeding: Company Number of Investor Pitches Skype 40 Cisco 76 Pandora 300 Google 350

Jerry Michalski notes that in the past, scarcity meant value. That is, without scarcity, you didn’t have a business. Now that notion has been upended. Dave Blakely of IDEO thinks about ExOs in the following way: “These new organizations are exponential because they took something scarce and made it abundant.” Nokia bought Navteq, trying to buy, own and control scarcity, only to be leapfrogged by Waze, which managed to harness abundance.

In all of these areas, the human brain is asked to do and handle more than ever before. We are dealing with several fields of knowledge constantly intersecting with our own, and all of this chaos is exponentially increased by the information available through technology. What this means is that all of us must possess different forms of knowledge and an array of skills in different fields, and have minds that are capable of organizing large amounts of information. The future belongs to those who learn more skills and combine them in creative ways. And the process of learning skills, no matter how virtual, remains the same. In the future, the great division will be between those who have trained themselves to handle these complexities and those who are overwhelmed by them—those who can acquire skills and discipline their minds and those who are irrevocably distracted by all the media around them and can never focus enough to learn. The Apprenticeship Phase is more relevant and important than ever, and those who discount this notion will almost certainly be left behind. Finally, we live in a culture that generally values intellect and reasoning with words. We tend to think of working with the hands, of building something physical, as degraded skills for those who are less intelligent. This is an extremely counterproductive cultural value. The human brain evolved in intimate conjunction with the hand. Many of our earliest survival skills depended on elaborate hand-eye coordination. To this day, a large portion of our brain is devoted to this relationship. When we work with our hands and build something, we learn how to sequence our actions and how to organize our thoughts. In taking anything apart in order to fix it, we learn problem-solving skills that have wider applications. Even if it is only as a side activity, you should find a way to work with your hands, or to learn more about the inner workings of the machines and pieces of technology around you. Many Masters

many ExOs are adopting the Objectives and Key Results (OKR) method. Invented at Intel by CEO Andy Grove and brought to Google by venture capitalist John Doerr in 1999, OKR tracks individual, team and company goals and outcomes in an open and transparent way. In High Output Management, Grove’s highly regarded manual, he introduced OKRs as the answer to two simple questions: Where do I want to go? (Objectives) How will I know I’m getting there? (Key Results to ensure progress is made)

Think of ownership design like organizing dinner for a group of friends. The task gets exponentially harder as the crowd grows. He’s vegan; she’s gluten free; they eat only sushi; this one’s on a juice cleanse; and the other is only free on Tuesdays. If everyone gets a dinner veto, no one dines together. The Senate works this way, with every senator able to filibuster the chamber into gridlock on most issues; similarly, the United Nations is often paralyzed, with the five permanent members of the Security Council—China, France, Russia, the United Kingdom, and the United States—each able by design to veto the others’ agendas.

Many organizations and militaries use VUCA as an acronym to describe the disruptive state of the world, given its Volatility, Uncertainty, Complexity, and Ambiguity. UN-VICE is an updated way of capturing the state and velocity of the world, with our acronym for UNknown, Volatile, Intersecting, Complex, and Exponential: - UNknown: Recognizing that you can’t know anything perfectly, and that many of our decisions are based on assumptions. Increased uncertainty lowers the value of ad-vice and requires increased self-reliance. - Volatile: Our world, and change itself, is evolving faster than ever before. Volatility is not inherently good or bad; it is simply impactful. In volatility we see shifting speed, texture, and magnitude of the changing environment. - Intersecting: The broader our filters, the more we realize that what we observe overlaps with other things. Boundaries are disappearing, connecting new areas through combinations. - Complex: These more-than-complicated systems have unreliable input-output relationships and cannot be summarized or modeled without losing their essence. Unpredictable situations with unknown unknowns. - Exponential: A nonlinear type of change that increases in its growth rate. To an observer, this change may happen gradually, then suddenly. Rapid acceleration of seemingly-small shifts.

The secret to living in the rush of the world with a minimum of pain is to get as many people as possible to string along with your delusions; the trick to living alone up here, away from all agitating entanglements, allurements, and expectations, apart especially from one’s own intensity, is to organize the silence, to think of its mountaintop plenitude as capital, silence as wealth exponentially increasing. The encircling silence as your chosen source of advantage and your only intimate. The trick is to find sustenance in (Hawthorne again) “the communications of a solitary mind with itself.” The secret is to find sustenance in people like Hawthorne, in the wisdom of the brilliant deceased.

I know that the consequences of scientific illiteracy are far more dangerous in our time than in any that has come before. It’s perilous and foolhardy for the average citizen to remain ignorant about global warming, say, or ozone depletion, air pollution, toxic and radioactive wastes, acid rain, topsoil erosion, tropical deforestation, exponential population growth. Jobs and wages depend on science and technology. If our nation can’t manufacture, at high quality and low price, products people want to buy, then industries will continue to drift away and transfer a little more prosperity to other parts of the world. Consider the social ramifications of fission and fusion power, supercomputers, data “highways,” abortion, radon, massive reductions in strategic weapons, addiction, government eavesdropping on the lives of its citizens, high-resolution TV, airline and airport safety, fetal tissue transplants, health costs, food additives, drugs to ameliorate mania or depression or schizophrenia, animal rights, superconductivity, morning-after pills, alleged hereditary antisocial predispositions, space stations, going to Mars, finding cures for AIDS and cancer. How can we affect national policy—or even make intelligent decisions in our own lives—if we don’t grasp the underlying issues? As I write, Congress is dissolving its own Office of Technology Assessment—the only organization specifically tasked to provide advice to the House and Senate on science and technology. Its competence and integrity over the years have been exemplary. Of the 535 members of the U.S. Congress, rarely in the twentieth century have as many as one percent had any significant background in science. The last scientifically literate President may have been Thomas Jefferson.* So how do Americans decide these matters? How do they instruct their representatives? Who in fact makes these decisions, and on what basis? —

Now I’m not trying to sound big-headed or anything but my sensuality has benefited a lot of people in more ways than I can quantify. It has served people not only in romantic relationships but in businesses, organizations and professional lives as well. (People got big promotions at work and major business deals). This was brought to my attention recently by a very close friend of mine in a conversation we had while we were sitting in a coffee shop. She said, “Lebo, have you noticed how so many people who got close to you either through work or relationship have had major transformations in their personal lives within the shortest space of time, that includes myself?” I paused for a moment and remembered the same words being said by one ex of mine, another lady I helped on her project not so long ago echoed the same notion. To some of you this might seem like... c’mon Lebo, anything could have led to any of those transformations. To even associate it with my sensuality seems utterly absurd, it’s like I’m trying to bolster my significance, but I know better now. I know the value I’m bringing into people’s lives whether they acknowledge it or not. Our conversation also made me recall how I had been exploited by others who saw value in me which I, at the time, was still oblivious of. The thing about human beings is that, usually they won’t show you your true value from which they’re secretly benefiting because they know that once you wake up and start realizing it, you won’t supply it for free anymore. So after I had woken up to my true value I decided to start making my sensuality EXCLUSIVE. Now when you make your sensuality exclusive it automatically makes your company highly priced. Consequently, it makes you highly sought after BY PEOPLE WHO SEEK TRUE VALUE AND KNOW WHAT IT LOOKS LIKE. When you make your sensuality exclusive, it increases your value exponentially as well as your desirability, not to everyone, but only TO THE RIGHT PEOPLE. You become the catch. Now I’m saying this to show you the hidden power of the world of sensuality that most people aren’t aware of. Almost every successful luxury industry in the world essentially thrives on sensual principles whether they’re aware of it or not.

This is what happened when I cofounded LinkedIn. The key business model innovations for LinkedIn, including the two-way nature of the relationships and filling professionals’ need for a business-oriented online identity, didn’t just happen organically. They were the result of much thought and reflection, and I drew on the experiences I had when founding SocialNet, one of the first online social networks, nearly a decade before the creation of LinkedIn. But life isn’t always so neat. Many companies, even famous and successful ones, have to develop their business model innovation after they have already commenced operations. PayPal didn’t have a business model when it began operations (I was a key member of the PayPal executive team). We were growing exponentially, at 5 percent per day, and we were losing money on every single transaction we processed. The funny thing is that some of our critics called us insane for paying customers bonuses to refer their friends. Those referral bonuses were actually brilliant, because their cost was so much lower than the standard cost of acquiring new financial services customers via advertising. (We’ll discuss the power and importance of this kind of viral marketing later on.) The insanity, in fact, was that we were allowing our users to accept credit card payments, sticking PayPal with the cost of paying 3 percent of each transaction to the credit card processors, while charging our users nothing. I remember once telling my old college friend and PayPal cofounder/ CEO Peter Thiel, “Peter, if you and I were standing on the roof of our office and throwing stacks of hundred-dollar bills off the edge as fast as our arms could go, we still wouldn’t be losing money as quickly as we are right now.” We ended up solving the problem by charging businesses to accept payments, much as the credit card processors did, but funding those payments using automated clearinghouse (ACH) bank transactions, which cost a fraction of the charges associated with the credit card networks. But if we had waited until we had solved this problem before blitzscaling, I suspect we wouldn’t have become the market leader.

Correlation is enough,” 2 then-Wired editor in chief Chris Anderson famously declared in 2008. We can, he implied, solve innovation problems by the sheer brute force of the data deluge. Ever since Michael Lewis chronicled the Oakland A’s unlikely success in Moneyball (who knew on-base percentage was a better indicator of offensive success than batting averages?), organizations have been trying to find the Moneyball equivalent of customer data that will lead to innovation success. Yet few have. Innovation processes in many companies are structured and disciplined, and the talent applying them is highly skilled. There are careful stage-gates, rapid iterations, and checks and balances built into most organizations’ innovation processes. Risks are carefully calculated and mitigated. Principles like six-sigma have pervaded innovation process design so we now have precise measurements and strict requirements for new products to meet at each stage of their development. From the outside, it looks like companies have mastered an awfully precise, scientific process. But for most of them, innovation is still painfully hit or miss. And worst of all, all this activity gives the illusion of progress, without actually causing it. Companies are spending exponentially more to achieve only modest incremental innovations while completely missing the mark on the breakthrough innovations critical to long-term, sustainable growth. As Yogi Berra famously observed: “We’re lost, but we’re making good time!” What’s gone so wrong? Here is the fundamental problem: the masses and masses of data that companies accumulate are not organized in a way that enables them to reliably predict which ideas will succeed. Instead the data is along the lines of “this customer looks like that one,” “this product has similar performance attributes as that one,” and “these people behaved the same way in the past,” or “68 percent of customers say they prefer version A over version B.” None of that data, however, actually tells you why customers make the choices that they do.

Indeed, the rate of change is so high everywhere these days that you now must assume that someone will disrupt you, and often from a direction you least expect. As Steve Forbes sees it, “You have to disrupt yourself or others will do it for you.” This applies to every market, geography and industry

Change the game: 1. Adjust the arena. 2. Re-rig the rules. 3. Attack the plan. Change the story: 1. Describe the alternative. 2. Organize in narratives. 3. Make your fight a fable. Change the equation: 1. Act exponentially. 2. Act reciprocally. 3. Perform your power.

the fantastic power and ultimate absurdity of unchecked exponential growth.

So, of the three major risk areas, execution risk remains the only real issue in building a company. How will the enterprise organize itself to maximize performance from its founders and management team? How will it leverage technology and information to create a unique and sustainable advantage and business model? Answering these questions correctly is the key to building a successful Exponential Organization. For this reason, we need to look more closely at each of the steps in building a powerful and effective team.

Ray Kurzweil says: “An invention needs to make sense in the world in which it is finished, not the world in which it is started.

There is a fundamental DNA path dependency here. Are you primarily a community or are you primarily a company? The reason you have to ask yourself this is because sooner or later the two will come in conflict. We [DIY Drones] are primarily a community. Every day, we make decisions that disadvantage the company to bring advantage to the community.

IdeaScale, eYeka, Spigit, InnoCentive, SolutionXchange, Crowdtap and Brightidea. Validation is achieved by obtaining measurable

I think up through probably 35, I was very much a control freak, because the size of the organizations I commanded, and I was part of, were small enough where I could micromanage them. I had a fairly forceful personality, and if you worked hard and studied hard, you could just about move all the chess pieces, no problem. Around age 35 to 40, as you get up to battalion level, which is about 600 people, suddenly, you’re going to have to lead it a different way, and what you’re really going to have to do is develop people. The advice I’d give to anyone young is it’s really about developing people who are going to do the work. Unless you are going to go do the task yourself, then the development time you spend on the people who are going to do that task, whether they are going to lead people doing it or whether they are actually going to do it, every minute you spend on that is leveraged, is exponential return.

Many skills make for an effective minister, but there is one without which everything else we do is useless: make disciples. Apart from that, all the money we raise, buildings we build, ministries we organize, sermons we preach and songs we write won’t move the mission forward. Without that one thing, we fail.

The word “exponential” signifies not just a theory but also a warning: the business world is beginning to move so quickly and so purposefully that if you’re not already changing your business model and thinking differently (and way bigger), you are going to be fatally left behind. ExO: Second Generation The original Exponential Organizations book was published in 2014.

Doing anything significant, big, and bold requires a TON of hard work. It also involves countless risks, setbacks, and restarts. While some people are lucky, most success stories require recovering one more time, facing the challenge, and beginning again. Over and over.

Don Reinertsen has written extensively on the need for people in a system to have “slack time” in software development. The wait time for a service (such as a functional expert working on a job) increases exponentially as their utilization goes up. For instance, the wait time is nine times longer when that resource is 90% utilized versus 50% utilized. (For the curious reader, this is a property of queues such as those at supermarket checkouts and customer service calls, known formally as M/M/∞ queues.)

The gut was not a long-range organ. Its grasp of culpability degraded exponentially with distance; there

High-traffic areas are the most problematic. Australian researchers recently asked test subjects to jog back and forth alongside a four-lane highway and found elevated blood levels of volatile organic compounds, commonly found in gasoline, after just 20 minutes. But pollution levels drop exponentially as you move away from a roadway, according to a 2006 study in the journal Inhalation Toxicology. Even just 200 yards from the road, the level of combustion-related particulates is four times lower, and trees have a further protective effect—so riverside bike trails, for instance, have dramatically lower pollution levels than bike lanes along major arteries.

And while not owning assets has been standard practice for heavy machinery and non-mission-critical functions (e.g., copiers) for decades, recently there’s been an accelerating trend towards outsourcing even mission-critical assets.

The world now belongs to smarter, smaller and faster-moving enterprises.

Deep Learning algorithms can even play video games by figuring out the rules of the game and then optimizing performance.

Digitized, Deceptive, Disruptive, Dematerialize, Demonetize and Democratize.

When assessing a startup for funding, investors typically categorize three major risk areas: Technology risk: Will it work? Market risk: Will people buy the product? Execution risk: Is the team able to function and pivot as needed?

In 2010, the world had 1.2 billion people online globally. By 2020, that number will reach five billion. Nearly three billion more people and their brains will be available to work via smartphones, tablets or at Internet cafes.

There’s an important and foundational lesson illustrated in each of these anecdotes, which is that an information-based environment delivers fundamentally disruptive opportunities.

SCALE:

marketing have been commoditized and democratized, it is all about ideas and ideals.

Enables coherent exponential growth • Binds collective aspirations • Attracts top talent across the ecosystem • Supports a cooperative/non-political culture • Enables agility and learning

An Exponential Organization is one whose impact (or output) is disproportionally large—at least 10x larger—compared to its peers because of the use of new organizational techniques that leverage accelerating technologies.

Nature normally hates power laws. In ordinary systems all quantities follow bell curves, and correlations decay rapidly, obeying exponential laws. But all that changes if the system is forced to undergo a phase transition. Then power laws emerge-nature's unmistakable sign that chaos is departing in favor of order. The theory of phase transitions told us loud and clear that the road from disorder to order is maintained by the powerful forces of self-organization and is paved by power laws. It told us that power laws are not just another way of characterizing a system's behavior. They are the patent signatures of self-organization in complex systems.

(If you own a car, it sits empty about 93 percent of the time.)

Millennials—those born between 1984 and 2002—are showing an orientation towards seeking meaning and purpose in their lives.

Computer Sciences Corporation believes that by 2020 we’ll have created a total 73.5 zettabytes of data—in

more than seven hundred million people around the world play online games—159 million in the U.S. alone—and most play for more than an hour each day.

In 2011, Insurance giant Allstate, with forty of the best actuaries and data scientists money could buy, wanted to see if its claims algorithm could be improved upon, so it ran a contest on Kaggle.

5P benefits of big data: productivity, prevention, participation, personalization and prediction.

it now takes an average of between two hundred fifty and three hundred days for a typical Consumer Packaged Goods (CPG) company to move a new product from invention to retail stores’ shelves—and

classic example is Google’s AdWords, which is now a multi-billion dollar business within Google. A key to its scalability is self-provisioning—that is, the interface for an AdWords customer has been completely automated such that there is no manual involvement.

A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty.

Don’t just ask what the world needs. Ask what makes you come alive and go do it. What the world needs is people who have come alive.

One exemplar of that pending disruption is teenager Jack Andraka, who at the age of fourteen single-handedly developed an early-stage detection test for pancreatic cancer that costs just three cents. His approach (awaiting peer review) is 26,000 times cheaper, 400 times more sensitive, and 126 times faster than today’s diagnostics. Big Pharma has no idea how to deal with Jack, who is one of many wunderkinds emerging globally, all of them with the potential to disrupt great companies and long-established industries. The Jacks of the world bring exponential

The Secrets of Skunk: Part Two At the Lockheed skunk works, Kelly Johnson ran a tight ship. He loved efficiency. He had a motto—“be quick, be quiet, and be on time”—and a set of rules.6 And while we are parsing the deep secrets of skunk, it’s to “Kelly’s rules” we must now turn. Wall the skunk works off from the rest of the corporate bureaucracy—that’s what you learn if you boil Johnson’s rules down to their essence. Out of his fourteen rules, four pertain solely to military projects and can thus be excluded from this discussion. Three are ways to increase rapid iteration (a topic we’ll come back to in a moment), but the remaining seven are all ways to enforce isolation. Rule 3, for example: “The number of people with any connection to the project should be restricted in an almost vicious manner.” Rule 13 is more of the same: “Access by outsiders to the project and its personnel must be strictly controlled by appropriate security measures.” Isolation, then, according to Johnson, is the most important key to success in a skunk works. The reasoning here is twofold. There’s the obvious need for military secrecy, but more important is the fact that isolation stimulates risk taking, encouraging ideas weird and wild and acting as a counterforce to organizational inertia. Organizational inertia is the notion that once any company achieves success, its desire to develop and champion radical new technologies and directions is often tempered by the much stronger desire not to disrupt existing markets and lose their paychecks. Organizational inertia is fear of failure writ large, the reason Kodak didn’t recognize the brilliance of the digital camera, IBM initially dismissed the personal computer, and America Online (AOL) is, well, barely online. But what is true for a corporation is also true for the entrepreneur. Just as the successful skunk works isolates the innovation team from the greater organization, successful entrepreneurs need a buffer between themselves and the rest of society. As Burt Rutan, winner of the Ansari XPRIZE, once taught me: “The day before something is truly a breakthrough, it’s a crazy idea.” Trying out crazy ideas means bucking expert opinion and taking big risks. It means not being afraid to fail. Because you will fail. The road to bold is paved with failure, and this means having a strategy in place to handle risk and learn from mistakes is critical. In a talk given at re:Invent 2012, Amazon CEO Jeff Bezos7 explains it like this: “Many people misperceive what good entrepreneurs do. Good entrepreneurs don’t like risk. They seek to reduce risk. Starting a company is already risky . . . [so] you systematically eliminate risk in those early days.

A final and critical pre-requisite for experimentation is a willingness to fail. Thirty

knowledge-based one. And this is just beginning. Ten years ago we had five hundred million Internet-connected devices. Today there are about eight billion. By 2020 there will be fifty billion and a decade later we’ll have a trillion Internet-connected devices as we literally information-enable every aspect of the world in the Internet of Things. The Internet is now the world’s nervous system, with our mobile devices serving as edge points and nodes on that network. Think about that for a second: we’ll be jumping from eight billion Internet-connected devices today to fifty billion by 2025, and to a trillion a mere decade later. We like to think that thirty or forty years into the Information Revolution we are well along in terms of its development. But according to this metric, we’re just 1 percent of the way down the road. Not only is most of that growth still ahead of us, all of it is. And everything is being disrupted in the process.

The platform can be thought of as a combination of Quirky (product development) and Kaggle (incentive competitions), but for cars and other vehicles.

Eliminate all expenses with any goal other than the creation of value for the end customer.”)

It used to require millions of dollars in servers and software to launch a software company. Thanks to Amazon Web Services (AWS), it now costs just a tiny fraction of that amount.

the fact remains that most large organizations punish failure quite severely.

We’ve learned how to scale technology; now it’s time to scale the organization.

OKR tracks individual, team and company goals and outcomes in an open and transparent way.

We define Experimentation as the implementation of the Lean Startup methodology of testing assumptions and constantly experimenting with controlled risks.

A common saying around Silicon Valley is execution eats strategy for breakfast.

small, independent and interdisciplinary teams are critical to future organizations, especially at the edges.

within a decade, the Chinese economy could be under serious threat from 3D printing technology.

don’t try to wedge the emerging business back into the mother ship.

Rapid or disruptive change is something that large, matrixed organizations find extremely difficult.

Specificity and rapid feedback cycles energize, motivate and drive company morale and culture.

At Google, for example, all OKRs are completely transparent and public within the company.

Seely Brown: “Companies may promote the idea of new business creation, [but] in the end they are all in the business of reducing risk and building to scale—which is, of course, the antithesis of entrepreneurship and new ventures.

If you are relying on innovation solely from within your company, you’re dead.

Mark Zuckerberg agrees, noting, “The biggest risk is not taking any risk.” Constant

In his book The Singularity is Near: When Humans Transcend Biology, Kurzweil identified a hugely important and fundamental property of technology: when you shift to an information-based environment, the pace of development jumps onto an exponential growth path and price/performance doubles every year or two.

Not immediately, but a decade after Mandelbrot published his physiological speculations, some theoretical biologists began to find fractal organization controlling structures all through the body. The standard "exponential" description of bronchial branching proved to be quite wrong; a fractal description turned out to fit the data. The urinary collecting system proved fractal. The biliary duct in the liver. The network of special fibers in the heart that carry pulses of electric current tot he contracting muscles. The last structure, known to heart specialists as the His-Purkinje network, inspired a particularly important line of research. Considerable work on healthy and abnormal hearts turned out to hinge on the details of how the muscle cells of the left and right pumping chambers all manage to coordinate their timing. Several chaos-minded cardiologists found that the frequency spectrum of heartbeat timing, like earthquakes and economic phenomena, followed fractal laws, and they argued that one key to understanding heartbeat timing was the fractal organization of the His-Purkinje network, a labyrinth of branching pathways organized to be self-similar on smaller and smaller scales.

We wrote Shift Ahead to document how the smartest companies and organizations shift their strategies in order to stay relevant in the face of swift and exponential changes in everything from technology to the forces of globalization, from politics and culture, from consumer tastes to human behavior. We wanted to find out how they shift ahead – how they stayed ahead of the curve, the competition, and the evolving requirements of their customers – given the barrage of evolving challenges.

Program. Some