The Boundaryless OrganizationRon Ashkenas

July 4, 2016

Executive Leadership Teams Meeting

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Who is here today?

Different industries same challenges

Need to do “more with less”

Be more innovative

Shorten time to market and be more agile

Increase customer intimacy

Regulation

Aggressive competition

Technology

War for talent

Globalization

Digital lifestyle

Environmental issues

Multiple stakeholders

Thinking beyond functional expertise Eliminating “silo” mentality Relying on multi-functional teams Building strong partnerships Developing a sense of ownership and

accountability at all levels

Organizational EdgeFrom focusing on handing

off the stick To practicing teamwork

Adaptive Change

This requires leaders and organizations to touch the

“Source Code” of how they think, act, operate and lead

ואתה תחזה מכל-העם אנשי-חיל יראי אלהים, אנשי אמת--שנאי בצע;

ושמת עלהם, שרי אלפים שרי מאות, שרי חמשים, ושרי עשרת.  בר הקטן ישפטו-הם; בר הגדל יביאו אליך, וכל-הד והיה כל-הד

)שמות פרק יח(

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The first Management Consultant

Who is managing

the “White

Space”?

The Boundaryless Organization Revisited: Why Breaking Down Silos Matters More Today

Than Ever Before

Ron AshkenasJuly 4, 2016

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Background

• Partner Emeritus with Schaffer Consulting

• Part of team that worked with Jack Welch to develop GE Work-Out

• Author or co-author of 5 books, 7 HBR articles

• Transformational impact with clients around the world, including Israel

• Former Executive-in-Residence at Berkeley

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The Boundaryless Organization Revisited• How has the idea evolved over the past 20 years?• Are we there yet?• To what extent do we still need to break down boundaries and

silos in today’s environment?• What can we do in our companies to foster more flexible

boundaries?

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Let’s take a ride back to 1995 - 1996

The world in 1996

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And in the technology realm…

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Welch discovers boundarylessness

“We quickly began to learn from one another: Productivity solutions from Lighting, transaction effectiveness from GE Capital, cost reduction techniques from Aircraft Engines, global account management from Plastics.”

Jack Welch

The Boundaryless Organization …

Key Messages: Need to redefine success factors of organizations

From• Scale

• Role clarification

• Specialization

• Control

To

• Speed

• Flexibility

• Integration

• Innovation

Key Messages: To succeed, boundaries need to be more permeable

Vertical (Hierarchies)

Horizontal (Products/Functions

)

External (Customers/Supplie

rs)Global (Cultural)

Key Messages: Boundaryless, but not boundary free

Permeable Structure

Permeable Structure

What are some examples of unnecessary

boundaries in your organization?

Finished files are theresult of years of scientificstudy combined with the experience of many years.

F’s Exercise Worksheet

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Finished files are theresult of years of scientificstudy combined with the experience of many years.

F’s Exercise Worksheet

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Count the little black balls….

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Key Messages: Levers for Action

Information

Capability to Use

Information

Authority to Act

Rewards/ Accountabili

ty Delayered Structures

Forums for Communicatio

n

Now 20 years later… how has the world changed?

• New Technologies Have Created Opportunities …and Challenges

• Pace of Disruption Has Accelerated

HOW IS THE BUSINESS ENVIRONMENT DIFFERENT TODAY … AND WHAT DO WE

NEED TO DO DIFFERENTLY IN ORDER TO BE SUCCESSFUL?

New technologies creating opportunities … and challenges

Global Economy Max-Matrix Structures Internet of Everything

Mobility Millennials Sustainability

Social Media Cloud Start-up Culture

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Framework

Example: Common consumer decisions movethrough a changing ecosystem of providers …..

BuyingAwarenes

sInteres

t Choose

UsingUse Manag

e Pay

SharingRenew Recommen

d Leave

New technologies have disrupted whole industries

Retail/commerce News and Information

Music & Entertainment

Transportation

Healthcare

Pace of disruption accelerating…a battery company and a “search engine” can make

cars ….

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… and a retailer can be an IT vendor ….

… and an app developer can control taxis

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More disruption to come

Quick Poll

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Instructions 1. Put your mobile on “Silence” mode2. Get into the internet site - “Kahoot”3. Enter the relevant “game pin” – you will see it here

on the screen4. Write your name and enter “ok, go”5. When you’re in wait for questions

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Quick Poll1. To what extent do you think that people want to be

able to collaborate even more effectively across organizational boundaries? a. Strong desire b. Would be OK if it happens c. Not that interested

2. My organization is already boundaryless? a. We’re already there b. We’re partly there c. We still have a long way to go

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Quick Poll3. Becoming more boundaryless is a cultural/social

issue or a technology issue? a. Mostly cultural/social b. A mix of both c. Mostly technological

4. Becoming more boundaryless will enable us to innovate faster and more effectively? a. Definitely enables b. It can help c. It doesn’t make much difference

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Structure

What are the main barriers for breaking down silos and

boundaries?

The Challenges to Boundaryless Behavior: What Has Not Changed?

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• Size of human brain• Ability to process information• Basic tribal instincts• Personal anxieties and concerns• Interpersonal relationships

Essential Human Behavior

Example: Health Care …

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Survey of 250 senior IT people in global organizations … 2015

Only a quarter of participants believe they “get the right information at the right time” to support decision making

About 40% of participants think their colleagues see “different information at different times”, depending on level,

function, and business unit

Participants think information flow is slightly better between geographies – 33% of participants think their colleagues in

other locations see “different information at different times”

Only 16% of participants believe customers, suppliers, and business partners have access to “the same information at

the same time”

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So How Do “Same Old Humans” Take Advantage of New Technologies and Opportunities … How Do We Accelerate Our Development?

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1. Combine old and new success factors … “both-and” thinking2. Double down on boundaryless action levers3. Drive boundaryless behavior across even more boundaries

Combine Old and New Success Factors:“Both-And” vs. “Either-Or” Thinking

Need Speed and Scale Need Integration with Specialization

Need Innovation with Appropriate Controls Need Flexibility with Role Clarity

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Double Down on Boundaryless Action Levers

Information

Capability to Use

Information

Authority to Act

Rewards/

Accountability

Delayered

Structures

Forums for

Communication

Drive Boundaryless Behavior Across Even More BoundariesNot just connecting systems within a company … but across companiesNot just working across geographies within a company … but across geographies with partnersReshape the boundaries of industries … find solutions by combining capabilities Solve global problems )terror, security, environment( by teaming up across industries and governmentsMaintain global stability while encouraging disruptive innovation

And do all of this with greater speed and effectiveness

Example: Evolution of Airports and TravelThe 1995 practice of ….. gate assignment Each airline company submits its next day flight plan to airport's flight planning department before 6:00 p.m. each dayStaff of the airport then assign gate to each scheduled arrival airplane(slow, manual, inflexible)

The emerging solution: A Simulation Model for Airport Gate AssignmentBy arrival scheduleBy gate occupancy timeBy number of passengers on boardby minimum elapse time between gate use

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Source: Journal of the Eastern Asia Society for Transportation Studies, Vol 1, No. 1, Autumn 1995. Figure 3. Structure of Gate Assignment Simulation

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Gate Layout

Gate Operations

Requirements

Gate Assignment Procedure

Fixed Interval Permitted Overlap

Generate Attributes

Arrival Type Passengers

Occupancy Time

Departures

by elapse time

by occupancy

by passengers

by arrival

GateCharacteristics

Arrival/DepartureCharacteristics

GateAssignment

Source: Journal of the Eastern Asia Society for Transportation Studies, Vol 1, No. 1, Autumn 1995. Figure 3. Structure of Gate Assignment Simulation

2016 Solution

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Airlines & Aircraft

Core Airport Operations

Creation of tasks and allocation of resources according to constantly changing flight schedules

Real-time updates of ETA’sPassengers

In-time updates of departure times and gates

Any Device Anywhere

Right information Right time

Open API’s IoT

We have the technology … but making this a reality will mean … Collaboration across airlines …

Sharing of information within and across countries and security services ...

Changes in consumer behavior ...

Incorporation of new technologies into airport operations ...

Shifts in incentives, measures, and rewards ...

And more ...

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Discussion Groups:

1. What questions have been raised by this discussion so far?

2. How could your company benefit from more permeable boundaries?

3. What are specific steps that you could take? What gets in the way?

4. What can you do to enable and encourage more boundaryless behavior both within your company and on a greater global scale?

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Summary of Key Points

Over the past 20 years … even though we've made tremendous progress and introduced new technologies, basic human capabilities have not changed.

Therefore, organizations and leaders need to deal with many of the same issues from the past 20 years … but do it faster and at a more global scale ... In particular:

the need to think and act in a boundaryless way is still critical…. with necessary attention to security, timeliness, relevance and information value

the need to focus on a broader range of boundaries is more critical as companies function in a more globally and locally interconnected eco-system….

the need to integrate IT and technology changes with the social structure of organizations is even more critical as we create cultures that can embrace even more rapid change ..

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Questions?

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Thank You !!