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WHAT IS THE PROBLEM?

WHY ORGANIZATIONS NEED TO BE TRANSFORMED


History Root causes Intermediate causes Symptoms & consequences

Goal of firm Incentives Pay without


The is to for C-suite
Enlightenment performance
maximize C-suite takes the
shareholder to cream
value maintain Measure
“Adapt” is status quo the Focus on
missing mergers. Financial
wrong
from acquisitions sector
things
empiricism takes
What is more
measured Foreign cream
changes outsourcing
perceptions,
Belief that Share-
Short attitudes &
what Cost- holders
Mechanistic term actions
you Processes, cutting Firms get
linear thinking
measure standardization not only
is real thinking learning crumbs

Kill
jobs ROA/
Economies ROIC
Belief of scale only Shareholders,
in Firm
models 25% of & workers.
Innovations Reduce culture
Leadership
don’t stick risk is hard
1965 Workers & customers
skills
to are are ALL
missing in pain
change doing
in today’s
People at Unsuitable managers
Failure
Units Fear, Firms poorly
the top leadership compete avoid
to tap can’t
know model with blame
collective innovate
best each Firm
intelligence other
of workers, culture
Firm does
customers,,
culture not fit
does Firms
work
not fit dying
Only 1 in Gen Y
workers faster &
5 workers hate
faster
fully the
engaged workplace
Balance of Workers
E Internet power in are
X & social market networked
T networks place
E shifts from
R seller to New firms New firms
N buyer Customers Innovate disrupt
A Ignore Globalization are Depressed incumbents
L environment, networked communities; Depressed
community enviromental economy
impacts Draft r4 Jan 10 2012 Steve Denning damage

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