The Connected Company by Gray, Dave -- Read -- Imperial Library of Trantor

Index

The Connected Company Dedication Introduction

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Acknowledgments Foreword One. Why change?

1. The connected customer

The Balance of Power is Shifting A Wake-up Call at Starbucks Something’s Happening Here

Cascading Effects Can be Initiated by Customers Cascading Effects Can be Initiated by Employees Cascading Effects Can be Initiated by Enemies or Competitors Cascading Effects Can be Initiated by Senior Executives

The ATM Revolt Power in the Network

2. The service economy

The Great Reset An Age of Abundance An Emerging Service Economy

Product Saturation Information Technology Urbanization

3. Everything is a service

The Industrial Model Service-Dominant Logic A Product is a Service Avatar

Products as Verbs Products as Job Descriptions

Services are Co-created A Process is Not a Service Service Networks

4. Services are complex

Demands on Companies are Increasing in Volume, Velocity, Variety Customers Introduce Complexity and Variability into Operations Why is it So Hard to Keep Your Service Promises? Customers Resist Standardization Customer Support: Efficient for You, Painful for Them Cost and Quality are Not Mutually Exclusive Customer Service Doesn’t Have to be Painful Control at the Edge

5. How companies lose touch

Why Do Companies Lose Touch? Over-Expansion

How Starbucks Lost Touch How Krispy Kreme Flamed Out

Blind Spots

How Xerox Missed the PC Revolution How Kodak Faded Away

Risk-Avoidant Cultures

How GE Revitalized its Business How IBM Rediscovered Customers

When in Doubt, Get in Touch with Your Customers

6. Structural change is necessary

How Did We Get Here?

Dividing Work Interchangeable Parts

Conflicting Constraints Lead to Rigidity

7. Complexity changes the game

Return on Assets is Dwindling Fewer and Fewer Companies are Surviving in the Long Term What is Causing this Increase in Death Rates?

Faster Change Competition Increasing Complexity

The Red Queen Race: If You’re Not Running, You’re Falling Behind

The Red Queen Race

What is a Coevolutionary Process? Every Adaptive Move by One Organization Affects Others Adaptive Moves Can be Competitive—and Cooperative Adaptive Moves Can Create Opportunities for Others Coevolutionary Relationships Can be Very Complex Optimization is a Journey that Leads to a Few Fitness Peaks We are Reaching a Complexity Tipping Point The Future is Connectedness

Two. What is a connected company?

8. Connected companies learn

The Company as a Machine

Intrinsic Rewards Drive Productivity People Resist Being Controlled What Drives Growth?

Closed and Open Systems Complex Adaptive Systems The Long-lived Company Design by Division Design for Connection

9. Connected companies have a purpose

Purpose Accelerates and Focuses Learning What is the Purpose of a Company? How Profits Can Destroy Your Company Purpose Sets the Context for Organizations to Learn Purpose is a Moving Target

10. Connected companies get customer feedback

Performance is How Well You are Doing The One Judge of Service Quality Balancing Promise, Purpose, and Performance Service Quality is a Moving Target Promoters and Detractors Building Long-Term Relationships with Customers The Net Promoter Score Net Promoter at Enterprise

Consistent Granular and Timely Serious

Net Promoter at Apple Net Promoter at Logitech

11. Connected companies experiment

Moments of Truth The Problem with Procedures The Front Line is not a Production Line The Law of Requisite Variety Reducing Variety Absorbing Variety Freedom to Experiment

Three. How does a connected company work?

12. Wrangling complexity

The Complexity Issue Agile Development Service Orientation

Service Contracts Composability Loose Coupling

Organizing for Agility

Netflix, a City of Services Whole Foods, an Agile Team of Agile Teams

Most Companies are Not Built for Agility

13. The future is podular

The Parable of the Watchmakers The Podular Organization Morning Star’s Self-Organizing Marketplace The Nordstrom Way Self-Organizing Teams at Rational Software Democratic Management at Semco Can Your Company Go Podular?

14. Pods have control of their own fate

What is a Pod?

Process to Pod Chains Versus Nets Pods are Flexible, Pods are Fast Pods Can Fail Pods Can Scale Up Fast

What Kinds of Companies have been Successful with a Podular Approach?

3M is Podular Amazon is Podular

A Podular System Trades Flexibility for Consistency Why aren’t more Companies Going Podular?

15. Pods need platforms

What is a Platform? What is the Value of a Platform? A Platform is a Government

Standards Attractors Support Governance Balancing the Needs of Constituents You don’t have to be Big Well-Designed Platforms Absorb Variety

16. How connected companies learn

The Growth Spiral Level One: How Entrepreneurs Learn Level Two: How Organizations Learn

Tacit and Explicit Knowledge Learning Fields

Level Three: How Platforms Learn

Pace Layers Front Stage and Back Stage Balancing the Front Stage and the Back Stage Making Platform Decisions

Growth Spirals in the Connected Company

17. Power and control in networks

Linking Things Changes Them What is a Social Network?

Small Worlds Scale-free Networks

Power and Control in Networks

Power in Networks Control

Exercising Power in Networks

Situation Awareness Influence Compatibility The Platform Three Principles of Network Power

Four. How do you lead a connected company?

18. Strategy as a Pool of Experiments

Strategies Don’t Last Forever Let a Thousand Flowers Bloom A Portfolio of Experiments

Small Bets: Set a Low Bar for Initial Experimentation Medium Bets: Many Sources of Funding Big Bets: The Responsibility of Senior Leaders More Experiments Means More At-Bats

Be Connectable to Everything Strategy by Discovery

19. Leading the connected company

Leading from the Edge

Three Types of Strategy

Edge Leadership

People First Awareness Adaptive Tensions Diversity Matters

You are a Learning Field Influence—Give Meaning and Moral Authority to the Purpose

Purpose What You Stand For Moral Authority Principles Trump Processes It Takes Trust to Build Relationships

20. Managing the connected company

Management is a Support System Designing the System

Balance the Individual Freedom with the Common Good Participation Build Slack into Central Resources to Ensure Availability Rely on Peer-to-Peer Reinforcement Whenever Possible

Operating the System

Critical Values in Complex Adaptive Systems Symptoms

Tuning the System

Adaptive Tensions Attractors Information Transparency Density Diversity Permeability Rate of Flow Parameters Structural Change Emergent Leadership

The Job of Managers

Five. How do you get there from here?

21. The Risks of Connectedness

Networks are Neutral Pod Failure Too Much Autonomy Not Enough Autonomy Platform Failure

Failure to Invest in the Platform Over-Controlling the Platform

Failure of Purpose Customers First

22. Starting the journey

How to Get there from Here

It Won’t be Easy Do You Work at a Place that Ignites Your Passion? Design Around Customers Taking Steps Versus Crossing Chasms

The Organic Path Top-Down, Leader-Driven Change

Connecting an Internal Group at Marriott Connecting with Customers at U.S. Cellular Common Threads

Pilot Pods

Launch a Pilot Pod to Shift to a New Business Model Launch a Pilot Pod to Serve Unmet Customer Needs Disrupt Yourself Before Someone Else Does Disrupting Desktop Software at Autodesk Disrupting Full-Service Telecom at O2 The Difference Between a Proof-of-Concept and a Pilot

Network Weaving It’s Time to Change

A. Bibliography Index B. Discussion Questions About the Authors Copyright

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