2. THE BOOK
“Manifesto of what our time requires from
business firms and their leaders“
Key words:
Global Village
Talent
Competitive advantage
Tribalization
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3. THE AUTHORS
Dr. Kjell A. Nordström Dr. Jonas Ridderstrale
• Consultant, writer and public speaker. • Business speaker, writer and thinker.
• Focused on corporate strategy, • Specialized in international business,
multinational corporations and global innovation, and product
globalization. development efforts in multinationals
• Responsible for the International • Visiting professor at Ashridge Business
Business course at Stockholm School School (UK) and IE Business School
of Economics. (Spain).
The 2005 Thinkers 50 ranked Nordström and Ridderstråle at number nine internationally
and put them on number one of Europe business gurus.
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4. OUTLINE
FUNKY BUSINESS F
FUNKY TIMES FUNKY S.A.
FORCES OF FUNK YOU FUNKY
THE FUNKY VILLAGE FEELING FUNKY
CONCLUSION
DISCUSSION
PROPOSALS FOR NEXT R.C.
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5. FUNKY TIMES (I/II)
In the past, a company had a great idea and exploited it for years before
competitors. Then, the original idea was repeated in another country for
more years.
PRESENT: making the difference gets harder
Talent Highly qualified employees
Globalization No borders
Time Living in real time
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6. FUNKY TIMES (II/II)
FUNKY FUTURE
Future is unknown, but who is going to create it?
People able to develop change, evolve, innovate!
But in a society of high diversity, is innovation enough?
Change must be fast and unique to maintain competitive advantage
FUNKY BUSINESS should renew its organization:
Management
Leadership
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7. FORCES OF FUNK (I/II)
Socio-economic landscape is changing rapidly so it’s required
to understand the main forces behind:
INSTITUTIONS
TECHNOLOGY DRIVE VALUES
CHANGE
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8. FORCES OF FUNK (II/II)
TECHNOLOGY
IT get better and faster
High connectivity Total Transparency POWER
INSTITUTIONS
The evolution in institutions is slow but has great impact on our world.
Capitalism, nations, companies, family concept are being renewed.
VALUES
In the past, the values where local, currently are global
But still move the individual, the society, the corporations.
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9. FUNKY VILLAGE (I/II)
Who can define the world today?
Deregulated global economy
Surplus of everything
Fusion (ideologies, food, product/services…)
Customization: the customer as a co-designer/producer
Tribalization: new tribes based on attitudes, experiences or knowledge
Personalization: everybody can be absolutely unique
CONFUSION
How to compete in this world?
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10. FUNKY VILLAGE (II/II)
Anybody knows Wally Masur?
He’d been among the 50 best tennis players.
He never signed a publicity contract.
What about Sampras, Agassi or Nadal?
Being the best is an ADDED VALUE
FIRMS WANT THE BEST ONES!
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11. FUNKY S.A. (I/V)
How the future firm will be and operate?
“The future firm must thrive on its ability to be different and add value in
new ways.”
The company of tomorrow profits from the changing circumstances and the
unpredictability of our times, FUNKY S.A. is:
INNOVATIVE
FOCUSED LEVERAGED
HETERARCHICAL CITEXVI - 8 NOVEMBER 2011
12. FUNKY S.A. (II/V)
FUNKY S.A. FOCUSED:
The future company won’t try to do everything for everybody; they try to
make meaning to concrete persons.
MARKET
NICHE
FOCUSED
PRECISE TRIBE
BUSINESS ORIENTED
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13. FUNKY S.A. (III/V)
FUNKY S.A. LEVERAGED (reinforcement):
INTERNAL (responsibility of each employee)
Knowledge exchange GAS LIQUID SOLID
Transforming knowledge
IDEAS EXPLANATION PROPOSAL
INDUSTRIAL
Entering new industries based on identified customer’s attitudes.
Example: merchandising for fans, in addition to music products.
INTERNATIONAL
Global thinking and action
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14. FUNKY S.A. (IV/V)
FUNKY S.A. INNOVATIVE:
Re-inventing strategy
Fast actions
Innovate with intelligence
Combine homogeneity with
heterogeneity
Each company should
find the special receipt Richard Branson - Owner
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15. FUNKY S.A. (V/V)
FUNKY S.A. HETERARCHICAL:
Hierarchies of different classes.
Spaguetti structure: apparently is chaotic but each
employee correspond to a set of resources.
Features of the Funky structure:
o Smaller: more creativity
o Flat: problems and process are solved faster
o Temporal: based on projects and teamworks
o Horizontal: any event implies several areas
o Circular: 360⁰ perspective to enhance auto-organization
o Open: partnering, networking
o Measured: to identify achievements CITEXVI - 8 NOVEMBER 2011
16. YOU FUNKY (I/II)
How to organize a funky company?
Forces: dynamism, risk and constant value creation
Leaders
First step: getting the right workers
Must lead employees to creativity
Workers demand:
Orientation
Tolerance
Interest
Attention
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17. YOU FUNKY (II/II)
Successful FUNKSTER:
• BEING UNIQUE
• BEING A BRAND
• BEING CONNECTED
Management of Dreams
Power consists on providing interesting dreams to move
the persons.
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18. FEELING FUNKY
The Holy Grail of Business
Temporal monopoly (meaning market niche)
How?
Making the difference:
o Low cost
o Added value
Exclusivity: an idea, marketing strategy, packaging, culture…
Based on Emotional Competence (emotions and imagination) to
understand the customer and coworkers.
Infinite Innovation
Emotional Company
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19. FUNKY EXAMPLE
GOOGLE FORMAL FRIDAY
http://bcove.me/wvi5p2hr
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20. CONCLUSIONS
Importance of teamwork:
Innovation starts with each worker
Leaders must propitiate creativity
Funky structure: flat and circular
Defining core values is a step to motivate and encourage
employees TRIBALIZATION
Thinking global is the key, ideas have no limits
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