What’s your recipe?

1. What’s your recipe? Charles Leadbeater

2. Which are you? What’s Your Recipe?

3. Everything seems to be changing • Science and technology • Values • Demography • Environment • Geography • Social structures What’s Your Recipe?

4. Change : a cause for pessimism • Environment degrading • Morals in disarray • Family collapsing • Culture dumbing down • Politics by media sound bite • Democracy corrupted • War always on the horizon • Globalisation = a gale of disorder What’s Your Recipe?

5. Change : causes for optimism • People living much longer lives • Democratic cultures spread by media, Internet • World more interconnected • Education spreading • Position of women improving, somewhat • Technological innovation critical to environment • Asia: tens of millions lifted from poverty every year What’s Your Recipe?

6. Change : optimism & pessimism • Private optimism, about our lives, families • Public pessimism about the state of the world • The two come together in organisations • Organisations provide people with a sense of private identity • But critical to how we cope with the world together What’s Your Recipe?

7. Change : optimism & pessimism in society ConfrontationRetreat Radical Reactionary What’s Your Recipe?

8. Change :optimism, pessimism & organisations ConfrontationRetreat Radical Reactionary What’s Your Recipe?

9. Why change? • Is it really necessary? Leadership as teaching, breaking up closed mindsets What’s Your Recipe?

10. Why change? • Is it really necessary? Leadership as teaching, breaking up closed mindsets • Is it really rational? Confronting conventional wisdom in successful organisation What’s Your Recipe?

11. Why change? • Is it really necessary? Leadership as teaching, breaking up closed mindsets • Is it really rational? Confronting conventional wisdom in successful organisation • Is it really possible? Building capacity for it: the more you do the easier it gets What’s Your Recipe?

12. Why change? • Is it really necessary? Leadership as teaching, breaking up closed mindsets • Is it really rational? Confronting conventional wisdom in successful organisation • Is it really possible? Building capacity for it: the more you do the easier it gets • Does it make sense? Companies often act to confirm their view of the world What’s Your Recipe?

13. Why change? • Karl Weick: Sensemaking in Organisations • Rational sense making only works when conditions are stable • Often rational sensemaking is a façade • We make sense of the world to justify the roles we play • Live life forwards but make sense of what we do backwards • Act first, make sense later • Changing how we make sense of world is v protracted and emotional • Not just because the world is hard to understand but we are What’s Your Recipe?

14. Understanding forces of change • Systematic • Accelerating • Non-linear • Viruses and epidemics • Margins become the mainstream • From complicated to complex systems What’s Your Recipe?

15. Rise of the knowledge economy • 1912 • US Steel Anaconda • Exxon General Electric • Coats Singer • Pullman Navistar • Shell Sears What’s Your Recipe?

16. Rise of the knowledge economy 1998 Microsoft Intel General Electric Shell Merck Exxon Toyota IBM Novartis Coke What’s Your Recipe?

17. Rise of the knowledge economy 1912 1998 US Steel Microsoft Exxon General Electric Coats Merck Pullman Toyota Anaconda Novartis General Electric Intel Singer IBM Navistar Shell Shell Exxon Sears Coke What’s Your Recipe?

18. Organisations of change • Adaptive, nimble, agile organisations able to learn fast about environment around them, sense opportunities and mobilise resources to exploit them What’s Your Recipe?

19. Organisations of change • Adaptive, nimble, agile organisations able to learn fast about environment around them, sense opportunities and mobilise resources to exploit them • But organisations that just do that would be in perpetual turmoil, constantly reinventing themselves What’s Your Recipe?

20. Organisations of change • So as well as being adaptive, nimble and agile organisations need to have a sense of stability, continuity and purpose • But a sense of stability that does not inhibit ability to adapt • What does that optimum mix of stability and flux come from? What’s Your Recipe?

21. Recipes and cakes • Are you a cake maker? • Find the one best way to make your cake as cheaply as possible • Markets with low innovation and uncertainty • Structured, hierarchical coordination What’s Your Recipe?

22. Recipes and cakes • Are you a recipe maker? • Combine ingredients to create new services and markets • Markets with faster, fundamental innovation and more uncertainty • New business recipes require new business models What’s Your Recipe?

23. Recipes and cakes • Can you make cakes and create new recipes, one feeding the other? • Being a cake maker is increasingly competitive • And new ideas are going to come from many more sources What’s Your Recipe?

24. Organisations that change and stay stable • Simplicity and reliability • Efficient and low cost • Limited hierarchy and bureaucracy • But also capable of learning and adapting at all levels What’s Your Recipe?

25. US Army • Lessons learned to simple rules What’s Your Recipe?

26. e-Bay • The community leads the company What’s Your Recipe?

27. Heathrow Airport • How would you stay in control if you were running it? What’s Your Recipe?

28. Nokia • Common culture and values, networks and open leadership What’s Your Recipe?

29. Lego organisations • Modularity allows many different tasks to proceed in parallel • Central architecture allows the modules to click together • Arup: The Second Avenue subway project What’s Your Recipe?

30. Southwest Airlines • Dare to have a point of view…what’s your recipe = what’s your story? What’s Your Recipe?