BookMarks #46: Exponential Organizations

Title: Exponential Organizations

Author: Salim Ismail

Genre: Non-Fiction, Management, Strategy

Published: 2014

BookMarks

In this book, the author attempts to define what would enable an organization to keep growing. He provides the concept of an Exponential Organization. An Exponential Organization is defined as one whose impact (or output) is disproportionally large—at least 10x larger—compared to its peers because of the use of new organizational techniques that leverage accelerating technologies. 

For an organization to be considered exponential, it needs to have a Massive Transformative Purpose. The vision statement should be simple yet provide a large scope. The author has also provided 10 attributes which an Exponential Organization should have. These are acronymed as SCALE & IDEAS. 

• SCALE: Staff on Demand; Community & Crowd; Algorithms; Leveraged Assets; Engagement, 
• IDEAS: Interfaces; Dashboards; Experimentation; Autonomy; Social

He goes on to measure different global organizations and provide how they compare on these 10 attributes. Examples are from both tech & manufacturing industries including Google, Coca Cola, Uber, Amazon etc. And there are companies and ideas which failed to keep up like Kodak, Nokia.

According to the author, Big Data analytics plays a key role in the success of such organizations. The 5P benefits of big data being Productivity, Prevention, Participation, Personalization and Prediction.

Some of the key Qualities of Exponential Organizations have been identified as follows.

• They are not swayed by the HiPPO (“highest paid person’s opinion”). 
• Information accelerates everything. Everything is being turned into information—and is thus measurable and knowable.
• Everything is being disrupted, and disruptions can come from unexpected quarters.In a disruptive world, smaller is better.
• Rent, don’t own, assets. E.g. Uber & AirBnB. Marginal cost of supply is dropping exponentially for the first time ever.

Couple of interesting observations from the book.

• “Execution eats strategy for breakfast”
• “Biology has the unique trait of being software that can create its own Hardware”.

An interesting book giving real world examples on what an organization must to do survive and thrive in this increasingly VUCA world. 

Previously on BookMarks: 36 Stratagems