by Aaron Dignan
Buurtzorg in, 13, 34–36, 38, 79, 105, 144, 218
Heath, Chip and Dan, 212
Heppner, Frank, 46
Herzberg, Frederick, 165
hierarchies, 77–78, 258
High Line, 188
Hillaker, Harry, 88
Hillman, James, 36
hiring, 79, 142–43
Hoffman, Reid, 88
Holacracy, 71, 122, 202
HolacracyOne, 89
Human Side of Enterprise, The (McGregor), 39–41
Husney, Jordan, 89
Huxley, Aldous, 22
hygiene factors, 165, 173
ICBD (Intentions, Concerns, Borders, and Dreams), 222–23
IDEO, 142–43
incentive compensation, 171–72
Indie.vc, 253–54
influence, 78
information, 14, 54, 127–37
information symmetry, 130, 134, 170, 190
initial public offerings (IPOs), 254, 255
Innosight, 29
innovation, 14, 54, 102–9, 188
innovator’s dilemma, 91
integration vs. functions, 79–80
Integrative Decision Making (IDM), 71–73
internet, 84, 131
Intrinsic Motivation (Deci), 42
investment, 251–55
James, LeBron, 143, 172
Jamieson, Alex, 222
Jobs, Steve, 103
job satisfaction, 165
Johnson, Steven, 189
Joint Special Operations Command (JSOC), 128–29, 130
Kahneman, Daniel, 165
Kanigel, Robert, 22
Kegan, Robert, 152–53
knee-jerk reactions, 28
Kotter, John, 186
KPMG, 32
Kroger, 59
Kroghrud, Ivar, 147
labor productivity growth, 33–34
Lahey, Lisa, 152–53
Laloux, Frederic, 105
language, 217
Lasseter, John, 191
lattice organizations, 142
leader, role of, 223–28
leadership gap, 166
Leading Change (Kotter), 186
Lean Change Management (Little), 201
Lean Startup method, 107–8
learning, 152, 153, 156–57, 160, 162, 200
by doing, 230–31
faster, 88
games and activities for, 200
retrospectives and, 123–24
validated, 108
Legacy Organizations, 5, 21, 38, 47, 59, 237, 258
authority in, 66
decision making in, 69
information in, 129, 131
measurement in, 60
membership in, 140
operating systems of, 12
performance targets and, 97
strategy in, 86
liminal space, 196, 197, 201
Little, Jason, 201
Little Book of Beyond Budgeting, The (Morlidge), 96–97
locus of control, 154, 155
Long-Term Stock Exchange (LTSE), 254–55
looping, 193, 201–16, 229, 236
and conducting experiments, 213–16
and proposing practices, 207–12
and sensing tensions, 202–6
Lyft, 169
Machiavelli, Niccolò, 248
Made to Stick (Heath and Heath), 212
management, 26–27, 81
innovations in, 20
open-book, 130
org charts for, 7–9, 24, 77, 78, 81, 114, 189
market pay, 167–68
Marquet, David, 67
Maslow, Abraham, 38
Masters of Scale, 88
mastery, 14, 54, 151–62
maturity, 154, 155–56, 255–56
McChrystal, Stanley, 128–29, 130, 197
McGregor, Douglas, 39–41, 158
McKeown, Greg, 62
McKinsey, James O., 24–25, 95
McKinsey & Company, 24, 32, 143, 187
Medium, 84–85, 86
meetings, 3–4, 6, 119
moratorium on, 123
in OS Canvas, 14, 54, 118–26
structures in, 124–25
membership, 14, 54, 138–50
mergers and acquisitions (M&A), 32, 33
metrics, 60–61
Meyer, Erin, 258
Microsoft, 170
microwave, 103
Mindset (Dweck), 154
mindsets:
fixed and growth, 154–55
see also Complexity Conscious mindset; People Positive mindset
minimum viable policy, 68–69
Mitchell, Melanie, 129
Mitra, Sugata, 257
Morlidge, Steve, 96–97
Morning Star Company, 13, 55–56, 99, 168
motivation, 41–42, 64, 74, 165, 173
multiplayer software, 135
Münsterberg, Hugo, 25
murmuration, 194
Netflix, 113, 167–68, 219
Netscape, 59
networks, dynamic, 77–78
New York Summit, 147
New York Times, 147, 165
Nietzsche, Friedrich, 179
noncompete clauses, 144
Office of Strategic Services, U.S., 6–7
Ohno, Taiichi, 20, 111
OKR (objectives and key results), 87–88
Oktogonen Foundation, 94
Olympic basketball team, U.S., 172
one-on-ones, 121–22
OODA loop, 88, 90
Operating Manual for Spaceship Earth (Fuller), 247
operating system, organizational (OS), 12–13, 17, 18, 43, 215
agility and, 19
changing, see change
economic, 246–47, 248
evolutionary, see Evolutionary Organizations
management innovations and, 20
Operating System Canvas (OS Canvas), 14, 53–57
authority, 14, 54, 63, 65–74
compensation, 14, 54, 163–73
how to use, 174, 270–72
information, 14, 54, 127–37
innovation, 14, 54, 102–9, 188
mastery, 14, 54, 151–62
meetings, 14, 54, 118–26
membership, 14, 54, 138–50
purpose, 14, 54, 68–64, 67, 85
resources, 14, 54, 93–101
strategy, 14, 54, 83–92
structure, 14, 54, 75–82, 111
workflow, 14, 54, 110–17
operating systems, 9
for traffic flow, see traffic flow
organizational debt, 27–29, 91
organizations, 255
agility in, 19, 20, 28–29
as complex systems, 45, 187–88
cooperatives, 250
decentralized autonomous, 250–51
entry/exit rates of, 33
evolutionary, see Evolutionary Organizations
governance of, 122
investment and, 251–55
lattice, 142
legacy, see Legacy Organizations
longevity of, 29–30
mergers and acquisitions, 32, 33
new forms of incorporation, 248–51, 252
operating systems of, see operating system, organizational
org charts, 7–9, 24, 77, 78, 81, 114, 189
return on assets of, 31, 32
as set of membranes, 139–40
three structures of, 78
OS Canvas, see Operating System Canvas
Ostrom, Elino
r, 98
over statements, 89
Page, Larry, 136
Patagonia, 85, 130–31, 133, 249, 259
pay, see compensation
People Positive mindset, 13, 36–43, 53, 55–57, 190, 195, 199, 244, 258–59, 267
authority and, 74
compensation and, 173
information and, 137
innovation and, 109
mastery and, 162
meetings and, 126
membership and, 150
purpose and, 64
resources and, 101
strategy and, 92
structure and, 82
workflow and, 117
Percolate, 131–32
performance, 46
individual, 158–60, 172
Petrarch, 224
Pflaeging, Niels, 78, 180, 189–90
Pixar, 119–20, 191–92
planning, 91, 95, 96, 100
see also strategy
Plato, 3
Play-Doh, 103
polycentric governance, 98
PopSugar, 135
practices, proposing, 207–12
priming, 193, 197–201, 236
Principles (Dalio), 152
Principles of Scientific Management, The (Taylor), 23–24, 29
priorities, 88–89
profit, 59–60
Project Aristotle, 221
projects, 113, 114, 117
management of, 112, 237
sprints and, 115, 237–38
status of, 121, 132
work in progress and, 115–16, 132
proposing practices, 207–12
psychological safety, 219–23, 236
purpose, 14, 54, 68–64, 67, 85
push vs. pull, 131–32
Quaroni, Guido, 192
railroads, 8, 22–23
Raworth, Kate, 246–47
Ready, The, 17–19, 123, 125, 143, 149, 174, 190, 217
recruiting and hiring, 79, 142–43
Reddit, 135
red team, 90–91
REI, 85
Reinventing Organizations (Laloux), 105
relatedness, 42
relief, 236–37
reputation, 78
resistance, 233–34
resources, 14, 54, 93–101
retrospectives, 123–24
return on assets (ROA), 31, 32
Rework (Fried and Hansson), 68–69
Ries, Eric, 107–8, 254, 255
risk, 68, 122, 132, 231
barbell strategy and, 86–87, 105–6
ritual, 143
Robertson, Brian, 202
Rogers, Carl, 38
roles, 72, 77, 80, 81, 111, 141, 157
decision making and, 72, 73
mixing of, 157–58
Rotter, Julian B., 154
roundabouts, 10–12, 13, 47, 55
Ruimin, Zhang, 76
Russell, Bertrand, 247
Ryan, Richard, 42
sabotage, 5–7
safety, psychological, 219–23, 236
Sahlberg, Pasi, 12
Saint-Exupéry, Antoine de, 212
salary, 164, 165, 168
see also compensation
Salary.com, 170
Salesforce, 119
S&P 500, 29–30, 60
Santa Fe, USS, 67
Santa Fe Institute, 29
scaling change, 234–39
scenario planning, 90
Schaar, Tom, 259
Scientific Management, 22–24, 26, 48
Scott, Kim, 120
scribes, 122–23
Securities and Exchange Commission (SEC), 104, 255
self-determination theory, 42
self-employment, 33
self-evaluation, 154
self-management, 16–17
self-set pay, 168
Semler, Ricardo, 245, 258
Seneca, 189
Senge, Peter, 153, 202
sensing, 202–6, 231–32
signal-controlled intersections, 9–12, 13, 46, 55
Simple Sabotage Field Manual, 7
Sinek, Simon, 222
Sisodia, Raj, 60
Slack, 119, 134, 135
SLAM teams, 80
Snowden, Dave, 156, 188–89
Sociocracy, 70–71, 122
space:
creating, 224–26, 228
holding, 226–28
liminal, 196, 197, 201
Spencer, Percy, 103
Spotify, 112–13, 160, 218
spread, 217–18
sprints, 115, 237–38
standards vs. defaults, 106–7
Starbucks, 85
startups, 27–28, 33, 76–77, 107, 197, 254
Lean Startup method, 107–8
status quo, 48, 90–91, 233
steering metrics, 60–61
stocks, 30–31
strategy, 14, 54, 83–92
strategy+business, 76
strategy review meetings, 3–4
structure, 14, 54, 75–82, 111
Svenska Handelsbanken, 13, 94, 227–28
Taleb, Nassim Nicholas, 86–88, 106
targets, 95, 97, 101
Taylor, Frederick Winslow, 21–24, 26, 29, 111, 153, 186, 257
teams, 79, 82, 113, 117, 141, 142, 172, 225–26
Ballpoint game for, 199–200
charters for, 144–45
dynamic, 81
gratitude and, 148
ICBD technique for, 222–23
red, 90–91
retrospectives and, 123–24
rituals and, 143
SLAM, 80
sprints and, 115, 237–38
status updates and, 121
teams of, 77, 197
work in progress and, 115–16, 132
technology, 256–57
TED, 128, 246, 257
telephone, 103
Teller, Astro, 49
tensions, sensing, 202–6
Tesla, Inc., 62, 86
Theory X and Theory Y, 39–41, 130
Thomison, Tom, 89
tipping point, 216
Torvalds, Linus, 132
Toyota, 20, 111, 235
TPG, 253
traffic flow, 9–12, 45
roundabouts for, 10–12, 13, 47, 55
signal-controlled intersections for, 9–12, 13, 46, 55
tragedy of the commons, 98
training, 6, 156–57
transparency, 129, 130–31, 134, 136, 190, 195, 258
compensation and, 168, 169–71, 173
radical, 152, 154
trust, 236
twenty percent time, 107
Twitter, 84
Urwick, Lyndall, 25
User Manual to Me, 147–48
value creation, 78, 111–14, 160
Valve Software, 66, 107
Vang-Jensen, Frank, 227
Vanguard, 48
venture capital, 253
Vrba, Elisabeth, 103
VUCA, 43
wages, 34, 166
see also compensation
Wallander, Jan, 94, 227
Warby Parker, 96
waterline principle, 69–70, 72
Weber, Max, 25
WeWork, 87
Whole Foods, 59, 61, 170, 259
Wikipedia, 140
Williams, Ev, 84–85
workflow, 14, 54, 110–17
working in public, 132
work in progress (WIP), 115–16, 132
&
nbsp; World War II, 6–7
Wright, Orville and Wilbur, 103
Y Combinator, 230
Zanini, Michele, 26
Zappos, 144
al-Zarqawi, Abu Musab, 129
Zobrist, Jean-François, 37, 42–43
Zuckerberg, Mark, 88
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About the Author
Aaron Dignan is the founder of The Ready, an organization design and transformation firm that helps institutions like Johnson & Johnson, Charles Schwab, Kaplan, Microsoft, Lloyds Bank, Citibank, Edelman, Airbnb, Cooper Hewitt Smithsonian Design Museum, and charity: water change the way they work. He is a cofounder of responsive.org, an investor in purpose-driven startups, and a friend to misfit toys. He lives in Colorado with his wife and son.
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