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Posts Tagged ‘Open Organization’

The Open Organization – 2nd Edition

OpenOrgCover2ndEditionIn 2014 I published what is thought to be the seminal work on the subject of Open Organizations. My goal was to present a text that provided a template for developing an Open Organization.

Nearly a year after my book was published, Jim Whitehurst CEO or Red Hat published his book The Open Organization. Igniting Passion and Performance. What I love about Jim’s book aside from the cool title is that he approached the subject from his perspective as a leader leading an Open Organization. Jim’s book put skin on the idea of Open. I would argue that Jim humanized the concepts. It is one thing to write about an organization from a case study perspective and an entirely new experience when the writer is living it out in real time.

Since the publication of my book, I have continued researching and writing on the subject of Open. I am proud to say that I am now an active member of the OpenSource.com group as an Ambassadors and Open Evangelist. Because the idea of an Open Organization is still evolving I felt it time to produce a 2nd edition of my book and address some of the changes. While most of the text remains the same and changes were mostly mechanical in nature, there are four major changes in this edition. They are:

  1. The book is now in softback and the price is much more reasonable than the original text. $30.00 on Amazon.
  2. More detail was added to Chapter 4 under the heading of Meritocracy. I begin to address some of the early challenges researchers have noted in Meritocratic organizations.
  3. More detail was added under the heading of Holacracy in Chapter 4. Where in the early text I recognized Holacracy as a form of Open, I have since stepped back from that idea and no longer consider it to be a pure Open system.
  4. In this text I begin to more deeply address the concepts of a distributed workforce. The implication of a growing distributed workforce is central to the expansion of the 21st century workforce.

You might be wondering what comes next. I will continue to publish articles, blogs, and videos on the evolution of Open Organizations. I am also writing my next book which will focus in on some key elements of the 21st century organization.

To get a copy of The Open Organization 2nd Edition – visit Amazon HERE.

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Dr. Philip A. Foster is considered a Thought Leader in Business Operations, Organization and Strategic Leadership. He is a prolific writer, International Lecturer and Best Selling Author of “The Open Organization” – now available on Amazon. Philip is certified in both Leadership and coaching. He is the Founder and CEO of Maximum Change Consulting, serving clients from around the world. He holds a Doctorate in Strategic Leadership with emphasis in Strategic Foresight from Regent University, Virginia. You can contact him at http://www.maximumchange.com

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The Rise of the Remote Workforce

remote-workforce-360x260We live in an emerging globalized mobile world of dispersed cloud workers. More than ever we see individuals and organizations trading in their traditional offices to work from home, coffee houses and just about anywhere in the world in which they can connect to the Internet. Leading the 21st century dispersed workforce brings its own challenges and requires new attitudes, approaches, and technologies. It requires leadership that is willing to step out of the comfort of the corner office and explore rich new possibilities of workforce engagement. It requires a higher degree of understanding communication, culture, collaboration, and empowerment.

“We live in a time of unprecedented globalism. Businesses, people, and economies are tied together in ways we could not have imagined 40 years ago. Organizations must now compete within a global landscape where clients and even the workforce are culturally diverse and geographically dispersed. Organizations are networked and interlaced around the globe through the Internet and mobile technologies. Crossing and operating within cultural boundaries must­­­ become a skill of the leaders and followers of the future. Organizations of the future must become culturally literate if they are to successfully compete under these emerging paradigms.” – Philip A Foster, The Open Organization, 2014

As we witness the emergence of a globalized mobile world of dispersed cloud workers, more than ever we see individuals and organizations trading in the traditional offices for the coffee house office or what I like to call the Coffice. A cloud based workforce is nothing more than a distributed or remote employee who is not bound by geography, time zone, or national boundaries. These employees are connected to colleagues via technology and therefore are able to work more flexibly via the internet.

Leader flexibility is the key to creating an atmosphere where each employee can become more excited about where they work and more importantly what they are working on. As the world becomes more globalized, the need for a flexible cloud optimized workforce is more evident. With a remote workforce comes the need to re-imagine and retool leadership for the remote worker. What is certain is that the way we approach and engage leaders and followers is quickly changing. There are challenges ahead as we assimilate into the new realities of a distributed cloud based workforce. Leading the charge for change is and will continue to be our Millennials. By the year 2025, it is estimated that nearly 75% of all work will be held by this generation. What is certain – change will happen whether we embrace it or not. As the 21st century organization continues to seek greater flexibility, organizational leadership must also evolve to the pressures and realities of a globalized economy.

While traditional leadership relies on formality, power, and proximity to followers; the Organization of the 21st century is emerging as a nontraditional structure in which authority is not vested in positions and human capital is dispersed geographically. Organizations will begin to abandon traditional leadership pedagogue for leaderless, self-led, and an empowered autonomous workforce. As hierarchies begin to collapse, leaders must learn to adapt to new realities and what it means to lead a more culturally diverse dispersed workforce from a distance.

As our reality shifts, leaders must learn how to communicate more effectively; engage human capital differently; embrace cultural nuances with diplomatic precision; and empower employees. The shift toward a dispersed workforce requires confidence and an abandonment of old models of employee engagement. The new way of working is not for everyone.  These changes will require discernment in the on-boarding process. Because Communication is so different in the dispersed setting, employees must leave ego behind and walk with assurance that they questions are important enough to ask.

Things are shifting – organizations are changing. Engagement of employees will change. We can either prepare for the inevitable or bury our heads in the depths of a 19th century hierarchical structure. In the end, you can change or you can become irrelevant. The choice is up to you.

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 Dr. Philip A. Foster is considered a Thought Leader in Business Operations, Organization and Strategic Leadership. He is a prolific writer, International Lecturer and Best Selling Author of “The Open Organization” – now available through Ashgate Publishing. Philip is certified in both Leadership and coaching. He is the Founder and CEO of Maximum Change Consulting, serving clients from around the world. He holds a Doctorate in Strategic Leadership with emphasis in Strategic Foresight and a Master of Art in Organizational Leadership, both from Regent University, Virginia.

Twitter: @maximumchange, E-mail: philip@maximumchange.com.

Book Review: Under New Management

Under New Management Book CoverI have been saying for some time now that the way we do business is broken. I guess I should say that our models for achieving success are no longer sustainable. In fact, we have outgrown our one-size-fits-all approach to business process, leadership, and structure.  Something has to give…. and it has.

In his new book, Under New Management, Author David Burkus peels back our stale expectations of leading and managing and opens our eyes to new and innovative approaches to business. To the classically trained leader, his concepts can be downright provocative and will challenge the very core of their beliefs. Some mind bending examples include outlawing email, paying people to quit, ditching performance appraisals, firing the managers, and writing org charts in pencil. The managerial curmudgeon might scoff at these ideas as fantasy and think they will never work.

Burkus anticipates these arguments and takes the additional steps needed to move the reader from ethereal to relative by offering examples of organizations who are successfully embracing these very ideas. While many of these new concepts may be born out of the technology industry, Burkus offers examples outside of the tech field. Real case studies from Volkswagen, Wegmans Food Markets, Shake Shack, Starbucks and Whole Foods.

Gone are the days of “this is not how we do things around here” and I couldn’t be happier. The 21st Century will require new ways of thinking and new approaches. These approaches may very well go beyond the ideas of outlawing email and losing the standard vacation policies. We don’t have to agree with everything in the book – but I think Burkus invites us into something deeper. He invites us to free ourselves to pave the way and come up with new and creative ideas that feed the human spirit and engage human happiness and productivity in the process. Under New Management should be one of the keys that release us from the old ways of thinking and finally give us permission to break the rules.

I strongly recommend that every leader read this book and then imagine the possibilities when we begin to “redesign the factory” and develop meaningful change in our own companies. Under New Management is Available now on Amazon http://tiny.cc/fvz29x. You can reach David through his website at http://davidburkus.com/.

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Dr. Philip A. Foster is considered a Thought Leader in Business Operations, Organization and Strategic Leadership. He is a prolific writer, International Lecturer and Best Selling Author of “The Open Organization” – now available through Ashgate Publishing. Philip is certified in both Leadership and coaching. He is the Founder and CEO of Maximum Change Leadership and Business Consulting, serving clients from around the world. He is a Doctor of Strategic Leadership with emphasis in Strategic Foresight and holds a Master of Art in Organizational Leadership, both from Regent University, Virginia. Twitter: @maximumchange, E-mail: philip@maximumchange.com.

Always On – The 24/7 world we live in.

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Recently I traveled to the West Coast for a conference; passing through three airports in a matter of hours. People everywhere were focused on some form of technology. It is now common place to see these tech-zombies wandering hallways and sidewalks looking down and focused on their smart-devices. We live in an emerging globalized mobile world of dispersed cloud workers. More than ever we see individuals trading in the traditional offices for the coffee house office or what is now known as the Coffice. Even I have to admit my assimilation into this mobile 24/7 world as much of my work is on the go. In fact, this article was written from a coffee house. If you’ve read any of my work you already know that I am advocate for flat, agile, open organizational structures which require new attitudes toward work and the humans that produce it. When we think about the realities of a 21st century work environment, we begin to realize that the age of the time-clock is coming to a close. In the United States the idea of an 8-hour workday has been around for nearly 150 years. It has its roots in a labor fight for more equitable and fair work conditions, yet it wasn’t until the 1950s that workers finally obtained a true 8-hour work day. The 8-hour day was hard fought by labor unions to bring about more equitable work days. Now that we are emerging into a knowledge based economy, we are very much witnessing the decay of the 8-hour work day into an on-the-go, flexible work schedule. I would argue that the more creative and innovative a company must be, the less likely it is to have a set standard of hours required for its workforce. I believe the idea of a standard day is melting away before our very eyes. Emerging 21st century organizations are going to need their employees to be in their creative sweet space as much as possible. When we begin to mandate specific times of work and work hours, we begin to hurt the creativity of the new millennial workers. Flexibility is the key to creating an atmosphere where each employee can become more excited about where they work and more importantly what they are working on. My study of the tech industry has shown that the new knowledge economy outright rejects the idea of the time clock economics. They don’t operate within the context of a 9-to-5 time clock punching world. As the world becomes more globalized, the need for a flexible cloud optimized workforce is more evident. While I very much advocate the emergence of the flexible work day, it is not without its challenges. Work-life balance can be a challenge in a flex-optimized work day. Another question we should ponder sooner than later is related to ethics in the self-led era of the Open Organization. What is certain is that the way we approach and engage leaders and followers is quickly changing. There are challenges ahead as we assimilate into the new realities of a distributed cloud based workforce. Will traditional business schools catch on to the evolution of management into self-leadership? Will B-Schools be able to stay relevant in a rapidly changing ecosystem? Leading the charge for change is and will continue to be our Millennials. By the year 2025, it is estimated that nearly 75% of all work will be held by this generation. What is certain – change will happen whether we embrace it or not.

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Dr. Philip A. Foster is considered a Thought Leader in Business Operations, Organization and Strategic PIC3Leadership. He is a prolific writer, published author and lectures internationally. His most recent book “The Open Organization” is now available through Ashgate Publishing.  Philip is certified in both Leadership and coaching and serves as Adjunct professor at Middle Tennessee State University, Murfreesboro, TN. He is the Founder and CEO of Maximum Change Leadership and Business Consulting, serving clients from around the world. He is a Doctor of Strategic Leadership with emphasis in Strategic Foresight and holds a Master of Art in Organizational Leadership, both from Regent University, Virginia. He can be reached at philip@maximumchange.com or (615) 216-5667.

4 Steps to Success in 2014

4 Steps to Organizational Success in 2014 | http://www.maximumchange.com

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Welcome to the Meritocracy

mq1I took a lot of heat for my last two blogs: “Death of the Manager: The coming extinction.” and “Three Reasons your Org Chart is Worthless”. I figure I must be on the right track if so many “old school” leaders call me crazy. Just when I could begin to take it personal, I realized I am not barking up the wrong tree. More than ever, a great deal of attention is given in the press to the manager-less, leader-less, agile, flat, flexible, Open Organization style of organization structure. Whatever you wish to call it, the bottom line is that the landscape of organization structure is changing. For some the new world order comes in the form of consolidation of power. I, on the other hand see a dissemination of power coming. The days of top-down, formal, rigid structures are numbered. Maybe not for all, but for many, the era of Meritocracy is arriving on track number 3. Webster’s defines a meritocracy as a group of people whose progress is based on ability and talent rather than on class privilege or wealth. My thesis for some time has been that the people doing the work know better how to do their jobs than the leaders demanding the work from their employees. When we begin to listen to our employees, a new dynamic enters. Structures are weakened and human capital is strengthened through empowerment.  The argument against self-managed, manager-less organizations is rooted in the false assumption of chaos. In fact, my research shows that an Open Organization is not only more flexible but stronger than its more rigid hierarchical counterpart. If we were using terms of physics – the tensile strength of an Open Organization is much better than a rigid top-down organization design.  Open Organizations are built on the platform of First Principles and a simple but strong set of rules better known as a Governance. An Open Organization Governance outlines how decisions are made within the community. It also expresses how things are done and by whom. By arguing for a Governance, we are not necessarily implying some sort of hierarchy or procedure, but more the expression of sharing ideas, responsibilities and decisions. In the case of an Open Organization or meritocracy, members are rewarded based on their own intrinsic motivators. Some are rewarded by completing something cool and some by being part of something bigger than themselves. Governance should not be a list of restrictions and don’ts insomuch as it is a methodology for flow and control of information within and sometimes outside of the organization. An Open Organization removes silos or divisions of business and creates one merged mass of an organization. A structure in which everyone makes decisions and all participate in the direction of the organization. An Open Organization creates stakeholders of all members of the organization. I find humor in those who believe that there is no such thing as a manger-less organization. Those who doubt the validity of a manager-less organization miss the key attributes of Open. Open does not equal chaos. Open does equal efficiencies, happiness, creativity, flexibility, and a higher degree of competitiveness. I would ask this question, why should only tech firms benefit from the power of Openness? It is there for taking… but, it requires a leader to enter into a place of vulnerability. Once we can get beyond the uneasy feelings, we realize that the idea of Open means that we have more capacity and a great deal of pressure off our shoulders as leaders. Going Open requires us to focus on the happiness of the workforce before the happiness of the shareholders. It requires a change of mindset. The greatest distance we must travel is those 6 inches between our ears. I say, make the decision and jump in, the water is fine! No! The water is AWESOME!

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PIC3Dr. Philip A Foster is considered a Thought Leader in Business Operations, Organization and Strategic Leadership. He is a prolific writer, published author and lectures internationally. His most recent e-book “Organization 3.0 – The Evolution of Leadership and Organizational Theories Toward an Open System for the 21st Century” is available exclusively on Amazon.  Philip is certified in both Leadership and coaching and serves as Adjunct professor at Middle Tennessee State University, Murfreesboro, TN. He is the Founder and CEO of Maximum Change Leadership and Business Consulting, serving clients from around the world. He is a Doctor of Strategic Leadership with emphasis in Strategic Foresight and holds a Master of Art in Organizational Leadership, both from Regent University, Virginia. He can be reached at philip@maximumchange.com.

3 Reasons Your Org Chart is Worthless

AA008821I know it’s your sacred cow. You spent hundreds of hours perfecting your org chart. It is a visual flexing of your organizational design prowess. It explains in detail the channels of decision making and communication in your organization. I am here to tell you that your org chart is worthless. It isn’t worth the paper it is printed on. While some may wax eloquent of the virtues of your creation – I say it’s a waste of time. Most all org charts are nothing more than idols we pay homage. Org charts represent a 19th century ideal of command-control with focus mainly on the leader(s) at the pinnacle of the chart. Even in a matrix org chart there is a top and bottom. No matter how flashy. No matter how descriptive your chart is – it is worthless.

First – org charts represent a structure that bottle-necks decision making and limits agility. If you want to see where the problems are in your organization, you need not look any further than your org chart (if you can find it). If you were to take an earnest survey of your organization you might find that your structure slows down decisions making and impacts the overall agility of your organization. The truth of the matter is that the 21st century organization will seek greater flexibility as its access to full time human capital diminishes. Your organization can’t be any better IF your organizational structure is cumbersome. Your org chart is a safety blanket that gives you absolutely no real coverage. Ask yourself this… how long does it take for a decision to be made. Does your front line have to ask their manager for approval for everything? Are you hiring based on an outdated slot on your org chart or are you hiring the best and empowering them to do their jobs?

Second – This is not how systems work in the natural world. Organizations are flattening and embracing self-leadership and a more open approach to the process of business. Organizations must find organic approaches to dealing with change and innovation. One such emerging concept is that of a decentralized organization, otherwise defined as the Open Organization. The end result is not to abolish organizational structures but to create a more flexible flow of ideas and processes that meets the needs of each individual within the organization as they pursue the goals of the organization and its stakeholders. Because of the complexity of business today, it is difficult to visually chart an Open Organization or organic forming structure.

Third – we don’t use them. The sad reality is this. Few organizations spend countless hours to actually USE their org chart. That’s right, we design them and then we stick them in a notebook somewhere and will rarely engage them again. I would argue that by the time the proverbial ink dries, your market silo has shifted and your org chart is now out of date. In our globalized economy, your org chart has the shelf life of milk at room temperature.

Here is a simple test. If you feel that you will lose control of your employees and your organization, then you’re running your organization based on command-and-control. This is a strong hierarchical approach where your organization is very much a top-down approach to leading where the bottom of the org chart is focused on completing the commands of the upper tier of the organization. The problem with this approach is that the bottom tier should be focused on the client and their needs rather than the objectives of the leadership. Like it or not, organizations are forced to become more competitive. If you don’t hire the best, empower them, and then get out of their way so that they can do their job – your organization is in trouble.

While I believe that org charts will be with us for some time. I believe that there will be a day when the only org charts we encounter will be in highly regulated industry, government institutions, and the military.  I challenge you… don’t waste one more moment on an org chart. Spend that time exploring how you can create agility and openness in your organization. It’s a new era… it’s the 21st century. It is time we starting acting like a 21st century organization.

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PIC3Dr. Philip A Foster is considered a Thought Leader in Business Operations, Organization and Strategic Leadership. He is a prolific writer, published author and lectures internationally. His most recent e-book “Organization 3.0 – The Evolution of Leadership and Organizational Theories Toward an Open System for the 21st Century” is available exclusively on Amazon.  Philip is certified in both Leadership and coaching and serves as Adjunct professor at Middle Tennessee State University, Murfreesboro, TN. He is the Founder and CEO of Maximum Change Leadership and Business Consulting, serving clients from around the world. He is a Doctor of Strategic Leadership with emphasis in Strategic Foresight and holds a Master of Art in Organizational Leadership, both from Regent University, Virginia. He can be reached at philip@maximumchange.com.