The Operating Model That is Eating the World

THE OPERATING MODEL THAT IS EATING THE WORLD

2004 2013

GOOGLE SEARCHES OVER TIME

NETFLIX

BLOCKBUSTER

TODAY’S DOMINANT VIDEO SERVICE IS A DIGITAL COMPANY.

2004 2013

GOOGLE SEARCHES OVER TIME

ITUNES

TOWER RECORDS

TODAY’S DOMINANT MUSIC SERVICE IS A DIGITAL COMPANY.

TOP PERFORMING AUTO STOCK? DIGITAL COMPANY.

DIRECT MARKETING, GAMING, RECRUITING, TELECOM, AND RETAIL? !

DIGITAL COMPANIES.

TODAY’S FASTEST GROWING, MOST PROFOUNDLY IMPACTFUL COMPANIES ARE USING A COMPLETELY DIFFERENT OPERATING MODEL

A new value set.

THE RESPONSIVE OPERATING SYSTEM

LEARNINGOPEN

LEAN

VISIONARYVS. COMMERCIAL

EMERGENTVS. CONTROLLED

VS. SUSTAININGVS. CLOSED

VS. LARGE

Expressed across multiple dimensions of an organization.

PURPOSE PROCESS PEOPLE PRODUCT PLATFORM

VISIONARY

vs. COMMERCIAL !!

Responsive companies approach their work with a long-term, ambitious view to everything from employee experience, to market position, to impact.

LEAN vs. LARGE

!!Responsive companies have a bias toward simplicity and leanness,

in service of speed, understanding, and resourcefulness.

LEARNING

vs. SUSTAINING !!

Responsive companies focus on learning and improvement as their primary driver in operations and innovation, as opposed to preserving/protecting status quo.

EMERGENT vs. CONTROLLED

!!Responsive companies accept the idea that things should be fluid,

– that they should serve the business based on circumstance, and that what works will shape/reveal itself.

OPEN

vs. CLOSED !!

Responsive companies favor highly networked configuration resulting in increased transparency and information flow, for both internal and external audiences, partners, and communities.

ADVENTURES IN OS TRANSFORMATION