Barbara Shannon: Shift Happens--Getting Ready for Great Big Change
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Barbara Shannon explains why consultants and smaller businesses are poised to take advantage of the flow economy at the June 2013 Bay Area Consultants Network (BACN) meeting
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Barbara Shannon: Shift Happens--Getting Ready for Great Big Change
- 1. SHIFT Happens! Including insights from John Hurley; John Seeley Brown; Lang Davison; Deloitte Center for the Edge; Robert J. Gordon; Tomas Sedlacek; Daniel Pink; Richard Florida
- 2. “What we’ve got at GM now is a general comprehension that you can’t run this business by the left, intellectual, analytical side of the brain. You have to have a lot of right side, creative input. We are in the arts and entertainment business, and we’re putting a huge emphasis on world-class design.” GM Vice Chairman Bob Lutz “There is more competition now than ever before. We keep a laser focus on our customers. We go beyond “process efficiencies”. Clear goals, great people, empowerment and trust move faster and better than too much process.” Nike CIO – Roland Paanakker Interviewee – The DNA of Great Big Change
- 3. SAP Global Business Transformation Summit
- 4. Relentless growth = death!
- 7. Topple rate for companies with more than $100M in net sales increased almost 40% over firms in the lower decile. > 100M Sales TOPPLE RATE (1965 – 2010) Bigger is NOT better…!
- 8. ROA for US Companies(1965 – 2010) Houston, we have a problem…!
- 9. Productivity isn’t helping…! Low Increase Moderate Increase High IncreaseIncreaseStaticDecrease ROA Labor Productivity Productivity isn’t helping…! ROA and Labor Productivity Changes 1987 - 2010
- 10. WE’RE NOT IN KANSAS ANYMORE! ROA of US companies = ¼ of what it was in 1965 Topple rate of largest companies is accelerating at three times the rate of smaller firms Average tenure in S&P 1965 = 50 -100 years Average tenure in S&P 2011 = 10 – 20 years Growth in per capita GDP has steadily declined since 1972 The long-term trend is toward higher short-term stock price volatility
- 12. Wave One Wave Two Wave Three The Shift Index 2011 The Shift Index 2011
- 13. Wave One Wave Two Wave Three The Shift Index 2011 Wave One: Foundation
- 14. Digital Infrastructure Adoption vs. Previous Infrastructure Innovations 5X 2X Wave One: Foundation
- 15. Wave One Wave Two Wave Three The Shift Index 2011 Wave Two: Flows
- 16. Wave One Wave Two Wave Three The Shift Index 2011 Wave Two: Flows
- 17. Wave One Wave Two Wave Three The Shift Index 2011 Wave Three: Impact
- 18. Wave One Wave Two Wave Three The Shift Index 2011 Wave Three: Impact
- 19. ROA for US Companies(1965 – 2010)
- 20. Topple rate for companies with more than $100M in net sales increased almost 40% over firms in the lower decile. > 100M Sales Topple Rate for US Companies 1965 – 2010
- 21. Low Increase Moderate Increase High Increase IncreaseStaticDecrease ROA Labor Productivity ROA and Labor Productivity Changes 1987 - 2010
- 22. Flow, not productivity or size is what matters most now Wave One Wave Three “As technology and culture change make sharing knowledge easier, flows become increasingly important drivers of competition.” Deloitte Passionate Workforce Study 2011
- 23. Worker PASSION drives FLOWS and can significantly improve firm performance. PASSION Drives FLOWS “When people engage passionately with their work, they seek ways to connect with others who share their passion and who can help them improve faster.” Deloitte Passionate Workforce Study 2011
- 25. 1 – 99 100 – 999 1000 – 4000 5000 Worker Passion by Size of Firm Passionate Engaged Passive Disengaged
- 26. THEN Size Matters – Bigger is better – Seeking Growth – Acquire to Grow Accelerate through efficiencies – Structure to Scale Efficiency – Product Driven Standardization – Push – Transactions – Protecting IP – Innovating on the Edge – Hierarchies – Performance Targets Left Brain Centric – Explicit Knowledge – Pursuit of Excellence – Performance Reviews NOW Size Kills – Too big and too fast fails – Seeking Sustainability – Organic Growth + Thoughtful Acquisition Accelerate through relationships – Structure to Scale Talent – Customer Driven Customization – Pull – Partnerships and Trust – Sharing for Value – Innovating from the Core – Meritocracies – Purpose/Mastery/Control High Value Skills – Tacit Knowledge – Passionate quests – Real Time Feedback WHAT’S DIFFERENT
- 27. THEN Size Matters – Bigger is better – Seeking Growth – Acquire to Grow Accelerate through efficiencies – Structure to Scale Efficiency – Product Driven Standardization – Push – Transactions – Protecting IP – Innovating on the Edge – Hierarchies – Performance Targets Left Brain Centric – Explicit Knowledge – Pursuit of Excellence – Performance Reviews NOW Size Kills – Too big and too fast fails – Seeking Sustainability – Organic Growth + Thoughtful Acquisition Accelerate through relationships – Structure to Scale Talent – Customer Driven Customization – Pull – Partnerships and Trust – Sharing for Value – Innovating from the Core – Meritocracies – Purpose/Mastery/Control High Value Skills – Tacit Knowledge – Passionate quests – Real Time Feedback WHAT’S DIFFERENT
- 28. What Can Consultants Do?
- 29. “Recovery from the economic downturn within the Management Consulting industry is driven by human resources segments, niche consulting and the emergence of new consultants acting flexibly as independent contractors. Large consulting companies will face fierce competition from smaller, niche companies.” Source: IBIS Management Consulting Market Research Report | NAICS 54161 | Apr 2013 Good News!
- 30. Left Brain Skills = Commoditization Right Brain Skills = Differentiation SHIFT to the Right
- 31. Mind the Gap!
- 32. GreatChangeBox.com Gives Away Consulting Assets for FREE! Barbara’s Big SHIFT
- 33. MARKET AND LABOR FORCES Clients PAY for integrated hands on CHANGE MANAGEMENT designed to drive FLOW STRATEGY ALIGNED BUDGETS AND DEPARTMENT PLANS PRIORITIZED PROJECT PORTFOLIO WELL POSITIONED PROJECT IMPLEMENTATIONS COMPETITIVE PERFORMANCE Integrating FLOW 4. Agile Project Management 3. Now-Next-Later Prioritization 2. Aligned Plans1. Voice of the Customer Barbara’s Big SHIFT
- 34. What’s Your Biggest Consulting Challenge? barbara@greatchangebox.com
- 35. HANDOUTS
- 36. WE’RE NOT IN KANSAS ANYMORE! ROA of US companies = ¼ of what it was in 1965 Topple rate of largest companies is accelerating at three times the rate of smaller firms Average tenure in S&P 1965 = 50 -100 years Average tenure in S&P 2011 = 10 – 20 years Growth in per capita GDP has steadily declined since 1972 The long-term trend is toward higher short-term stock price volatility
- 37. Wave One Wave Two Wave Three The Shift Index 2011 The Shift Index 2011 The Shift Index is a data rich study by John Seeley Brown and John Hurley suggesting that a wave of change in the foundations of our business and society is expanding flows of knowledge which is affecting corporate performance.
- 39. THEN Size Matters – Bigger is better – Seeking Growth – Acquire to Grow Accelerate through efficiencies – Structure to Scale Efficiency – Product Driven Standardization – Push – Transactions – Protecting IP – Innovating on the Edge – Hierarchies – Performance Targets Left Brain Centric – Explicit Knowledge – Pursuit of Excellence – Performance Reviews NOW Size Kills – Too big and too fast fails – Seeking Sustainability – Organic Growth + Thoughtful Acquisition Accelerate through relationships – Structure to Scale Talent – Customer Driven Customization – Pull – Partnerships and Trust – Sharing for Value – Innovating from the Core – Meritocracies – Purpose/Mastery/Control High Value Skills – Tacit Knowledge – Passionate quests – Real Time Feedback WHAT’S DIFFERENT