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DARE SESSION THREE ORGANISATION 3.0
3rd July 2012
STRUCTURE CULTURE PROCESS
key themes PEOPLE
key themes INNOVATION
TODAY WE WILL COVER MOVE FAST, BREAK THINGS
ORGANISATION 3.0
ORGANISATION 3.0, CASE STUDIES
AGENCY 3.0
AGENCY 3.0, CASE STUDIES
Eric Edge, Facebook
Neil Perkin, Only Dead Fish
Arwa Mahdawi, Contagious
Neil Perkin, Only Dead Fish
Nadya Powell, Dare
TIME FOR DISCUSSION
TODAY WE WILL COVER MOVE FAST, BREAK THINGS
ORGANISATION 3.0
ORGANISATION 3.0, CASE STUDIES
AGENCY 3.0
AGENCY 3.0, CASE STUDIES
Eric Edge, Facebook
Neil Perkin, Only Dead Fish
Arwa Mahdawi, Contagious
Neil Perkin, Only Dead Fish
Nadya Powell, Dare
To view Eric’s slides, please go to the IPA Creative Pioneers
presentation, here:
http://www.youtube.com/watch?v=kGbzn8W8LGE
TODAY WE WILL COVER MOVE FAST, BREAK THINGS
ORGANISATION 3.0
ORGANISATION 3.0, CASE STUDIES
AGENCY 3.0
AGENCY 3.0, CASE STUDIES
Eric Edge, Facebook
Neil Perkin, Only Dead Fish
Arwa Mahdawi, Contagious
Neil Perkin, Only Dead Fish
Nadya Powell, Dare
• Organisations felt bombarded by change - many are struggling to keep up.
• 8 out of 10 CEOs saw significant change ahead, yet the gap between the expected level of change and the ability to manage it had almost tripled since the previous study
http://www-935.ibm.com/services/uk/gbs/html/ceostudy
THE ONLY CONSTANT IS CHANGE
Source: “From Stretched to Strengthened – Insights from the Global Chief Marketing Officer Study”, October 2011, IBM, CMO C-Suite Studies, 1700 CMOs
4 out of 5 CMOs anticipate a high/very
high level of complexity over the next 5 years,
but only half felt ready to handle it.
Percentage of CMOs reporting under preparedness
THE ONLY CONSTANT IS CHANGE
PAID
OWNED EARNED
ADVERTISING Paid search, display, affiliate
DIGITAL PROPERTIES Websites, blogs,
microsites, Social presence
PARTNER NETWORKS Word of mouth,
Digital PR, Influencer outreach
Paid placements Atomisation of content into ads
Atomisation of conversation through APIs and social widgets
The average half life of 1,000 popular bitly links was 3 hours
Disintermediation & disruption: A journey away from linear, one way, interruption, frequency,
inflexibility…towards what?
http://russelldavies.typepad.com/planning/2007/04/beta_tees_and_l.html
THE CHALLENGE: AGILITY, RESPONSIVENESS, PACE OF INNOVATION
NO SILOS
The need to break down organisational
silos is very real
The Eureka Myth – the myth of the lone-creative genius with a spark of sudden inspiration. Ideas take a long time to mature, sometimes laying dormant (in the form of 'partial hunches' or half-ideas) for years. It is the collision of these half-ideas that enables breakthroughs to happen. Rather than being a single thing, ideas are networks, or new configurations.
POROUS ENTERPRISE: CHANCE FAVOURS THE CONNECTED MIND
The great driver of innovation has been the historic increase in connectivity between us that creates infinite possibilities for ideas to be swapped Agile enterprises that understand this create and enable spaces (physical and virtual) where ideas can mingle (in the way that coffee houses did in The Enlightenment)
POROUS ENTERPRISE: CHANCE FAVOURS THE CONNECTED MIND
• Connected employees bring new thinking into the organisation
• Allows for innovation at the edges – non-core thinking
• Relationships seen as valuable assets
• Flow of ideas into and within organisations
• Companies less reliant on ‘stocks’ of knowledge, and more connected to ‘flows’ of knowledge
POROUS ENTERPRISE:
A new class of company is emerging—one that uses
collaborative Web 2.0 technologies intensively to connect the internal efforts of employees and to extend
the organization’s reach to customers, partners, and suppliers
THE NETWORKED ENTERPRISE
“…fully networked enterprises are not only more likely to be market leaders
or to be gaining market share but also use management practices that lead
to margins higher than those of companies using the Web in more
limited ways.”
THE AGILE MANIFESTO
http://agilemanifesto.org/
INDIVIDUALS AND INTERACTIONS
WORKING OUTPUTS
COLLABORATION
RESPONDING TO CHANGE
PROCESSES AND TOOLS
COMPREHENSIVE INPUTS
CONTRACTS AND HIERARCHY
FOLLOWING A PLAN
over
over
over
over
Concept
Detailed Design
Build
TRADITIONAL ‘WATERFALL’ APPROACH
Concept
Detailed Design
Detailed Design
Build Build
Detailed Design
Detailed Design
Build Build
SPRINT REVIEW
SPRINT REVIEW
SPRINT REVIEW
SPRINT REVIEW
AGILE PROCESSES
• Improved speed of decision-making, more in-tune with agile tech teams
• Concept of ‘being in beta’, using data to adopt a more prototypical approach
• Involve feedback from customers early in the process to mitigate risk
• Work in more flexible ways with digital talent e.g. talent networks
http://startupquote.com/
• Disruptive innovation is everywhere
• Every company, regardless of size needs to act like a start-up
• Not just innovation, but continuous innovation
• Combine of the use of open-source software, agile development methodologies and ferocious, customer-centric, rapid iteration.
"My own definition of a start-up is an institution asked to create something new under conditions of high uncertainty…This has nothing to do with company size.” Eric Ries
THE LEAN START-UP MOVEMENT
http://madebymany.com/signals/the-lean-startup-movement
TECH & BUILD TEAMS
DIGITAL MARKETING
TEAM
WIDER MARKETING
TEAM
RELATED TEAMS/REST OF THE BUSINESS
As the benefits of agile principles (e.g. test and learn) become apparent to those most often interfacing with agile teams, adoption spreads
THE PROGRESSION OF AGILE
“The notion of ideas as this singular thing is a fundamental flaw. There are so many ideas that what you need is that group behaving creatively. And the person with the vision I think is unique, there are very few people who have that vision.. but if they are not drawing the best out of people then they will
fail.” - ED CATMULL, PRESIDENT OF PIXAR
CREATIVE PROCESS INVOLVING A LARGE NUMBER OF PEOPLE OFTEN FROM DIFFERENT DISCIPLINES MARSHALLED AROUND A VISION WORKING AS A TEAM
CREATIVE CULTURE…
http://www.flickr.com/photos/daviddelarosa/
"We say we are director led, which implies they make all the final decisions, [but] what it means to us is the director has to lead.. and the way we can tell when they are not leading is if
people say 'we are not following'.” - ED CATMULL, PIXAR
CREATIVE CULTURE…
• Resourcing for projects is purely voluntary
• Project leaders pitch developers to generate interest
• Engineers decide which projects sound interesting to work on
ENGINEERING CULTURE…
Agile Development is often centred around the belief that the best results come from self-organising, small, nimble teams.
What if we worked like that in communications?
• A way of remaining agile as the company scales
• Large number of small, multidisciplinary teams, 8-10 people
• Each responsible for a focused area of service
• Customer-centric, focused improvement, speed of innovation
AMAZON AND THE ‘TWO-PIZZA’ TEAM
• Research into marketing structures and resourcing - 30 in-depth interviews, quant survey 170 respondents
• A new phase: not just change, but continuous change
• Economic pressures - constant evaluation of organisational structures, processes, roles, skills
THE ONLY CONSTANT IS CHANGE
http://econsultancy.com/uk/reports/digital-marketing-organisational-structures-and-resourcing-best-practice-guide
Identified 4 distinct types of online presence:
1.Transactional e-commerce site
2.Services-oriented relationship building site
3.Brand building site
4.Publisher, portal or media site
A KEY SHIFT IN MINDSET
Several key trends behind this:
• Product owners establishing direct relationships with consumers
• Increasing role of owned media, brands and retailers becoming content producers, and more skilled in merchandising, editorialising, content marketing and service provision
• Publishers and content owners seeking new revenue streams and moving toward e-commerce models, applications and services
Mediated Direct to consumer
Campaigning Always-on
= increasing blurring of lines between these distinctions, enhanced merging of roles, functions, and skills required
A KEY SHIFT IN MINDSET
• Competitive, rapidly changing markets and increasing channel complexity
• Multiple and sometimes competing internal priorities
• Balancing outsourcing with in-sourcing, and specialism with generalism
• How best to apply adaptive resourcing to emerging channels
• The tensions created by blurred boundaries, and notably the delineation between Global, Regional and Local
The challenge of resourcing:
A KEY SHIFT IN MINDSET
Hub-and-spoke – 35%
Centre of Excellence – 42%
Multiple Hub-and-spoke – 3%
Fully integrated – 0%
Dispersed – 20% A MODEL FOR DIGITAL STRUCTURAL MATURITY
Ecommerce
Digital Marketing
E-Business
Strategy & Planning
SEO PPC
CRM
Affiliates Display
Analytics/data
Content Marketing
Social media
UX
Design
Content/UX
Mobile
Operations CMS
Small change
request
Tech/Build
Brand
Customer
Insight
Brand strategy
Large scale
request
Web Build
(Social
Media)
In organisations with a heavy Etail focus, digital marketing is a part of e-commerce
MARKETING & TECHNICAL
• No single dominant structure for how technical infrastructure and web build capability is positioned in relation to the digital marketing
• But a common challenge in how best to prioritise digital projects across the business, and ensure agility within these structures.
• In some instances this has led to the growth in the role of intermediary product or project manager positions.
• Increasing demand/potential shortage: data/analytics, social media
• Increasing requirement for ‘T-Shaped’ people
• Both depth of experience in particular disciplines and an inherent understanding of the broader context of their work
TALENT
• Owns the whole process of creating and executing products that audiences love
• From product strategy/vision to the detailed delivery and ongoing running
• T-Shaped people who can both co-ordinate and inspire
• Tech to media to…?
THE RISE OF PRODUCT MANAGEMENT
Tech build
UX
Strategy
Content marketing
Customer insight
Ecommerce
Product management
Tech build
UX
Strategy
Content marketing
Customer insight
Ecommerce
Product management
Tech build
UX
Strategy
Content marketing
Customer insight
Ecommerce
Product management
Tech build
UX
Strategy
Content marketing
Customer insight
Ecommerce
Product management
Tech build
UX
Strategy
Content marketing
Customer insight
Ecommerce
Product management
Tech build
UX
Strategy
Content marketing
Customer insight
Ecommerce
Product management
Tech build
UX
Strategy
Content marketing
Customer insight
Ecommerce
Product management
MAKING ROOM FOR INNOVATION
• Walmart buy a small Silicon Valley start up (Kosmix) & turn it into WalmartLabs
• A unit designed to push Walmart’s capabilities in mobile and social R & D
• Protects culture, allows for agility, attracts tech talent, space to create the future
MAKING ROOM FOR INNOVATION
McKinsey :`Boosting Returns on Marketing Investment’ Recommends brands spend 80% of their budget on banker strategies and tactics, and 20% on learning through well
structured tests.
https://www.mckinseyquarterly.com/Boosting_returns_on_marketing_investment_1602
A WAY IN TO AGILE…
70% of the content should be low risk, bread and butter marketing
20% should innovate off what works
10% should be high risk ideas that will be tomorrow's 70% or 20%
THE 70, 20, 10 MODEL
TODAY WE WILL COVER MOVE FAST, BREAK THINGS
ORGANISATION 3.0
ORGANISATION 3.0, CASE STUDIES
AGENCY 3.0
AGENCY 3.0, CASE STUDIES
Eric Edge, Facebook
Neil Perkin, Only Dead Fish
Arwa Mahdawi, Contagious
Neil Perkin, Only Dead Fish
Nadya Powell, Dare
DIFFERENT APPROACHES TO ORGANISATIONAL INNOVATION
60% under 10 years old
36% under 5 years old
66% tech manufacturers or web-based
ENTITLEMENT KILLS
Disruptive Small-d democratic Transparent Tech savvy Design savvy Local and global Nimble Values-driven
Inside-out
Outside-in
Boxed-out
INNOVATION CAN BE
INSIDE-OUT INNOVATION
“The Chipotle burrito is very similar to the iPhone.” - SLATE MAGAZINE
CHIPOTLE / THE APPLE OF THE FAST FOOD INDUSTRY?
Chipotle / Going back to the start
http://www.youtube.com/watch?v=aMfSGt6rHos
CHIPOTLE / RESULTS
$2.2 billion in revenues. Revenues have tripled since 2006.
1200 restaurants across the US, UK and Canada. Plans to open 165 more this year.
11.2% increase in same-store sales last year
25.9% restaurant operating margins
500% Chipotle stock up 50% on the year and over 500% over 5 years
Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.
- PATAGONIA MISSION STATEMENT
PATAGONIA / WEAVING VALUE-DRIVEN INNOVATION INTO THE FABRIC OF YOUR COMPANY
PATAGONIA / TRAIL-BLAZING TRANSPARENCY
PATAGONIA / RESULTS
$500 million in 2011 sales
30% growth over the last two years
$500,000 worth of product recycled in The Common Threads Initiative, with over 25,000 pledging to change their consumption patters
KLM / TRANSPARENCY, FALLIBILITY & THE HUMAN TOUCH
OUTSIDE-IN INNOVATION
“It’s people united, and one problem as a springboard for innovation. It’s taking generous collaboration to action. The power of this is unlimited.” - MARIA MUJICA, DIRECTOR FOR GUM AND CANDY, KRAFT LATAM
SOURCING THE CREATIVITY OF THE WORLD
Procter and Gamble aims for at least 50% of all new product and service ideas to come from outside the organisation.
BOXED-OUT INNOVATION
“GG is different and its unique in how its structured. I'm totally up for the way its structured, its like as a community we're challenging the big boys!!!” - MEMBER COMMENT
GIFFGAFF/ BUILDING A BRAND AND THEN GIVING IT TO YOUR CUSTOMERS
GIFFGAFF / COMMUNITY-LED INNOVATION THAT PAYS
24/7 support in avg. 90 seconds
100% of questions asked answered by the community
Top earner - £17,000 over 12 months
Highest Customer Satisfaction (CSI) in the sector
Highest Community Health Index in the world
SO, IN CONCLUSION…
EVOLVE IMMEDIATELY. ENTITLEMENT KILLS. “Don't be a sitting duck. See the
big picture. Find the pain points, see patterns taking shape and act.
Evolve immediately. Entitlement kills.” - AJAZ AHMED & STEFAN OLANDER
BE ALL-IN “The difference between a company whose CEO and leadership team have an "all-in" mentality regarding innovation, and one whose leadership supports innovation merely at an abstract level, is unmistakable—and so is the impact on the company's culture and results.” - JAMES P. ANDREW; SENIOR PARTNER & MANAGING DIRECTOR AT THE BOSTON CONSULTING GROUP
DEFAULT TO OPEN
Smart organisations default to open, rather than closed ways of working.
BE BRAVE
“The most important thing we do to encourage innovation is give people the freedom to fail” - ROBERT KOTICK, ACTIVISION BLIZZARD (NAMED ONE OF FORBES’ MOST INNOVATIVE LEADERS)
TODAY WE WILL COVER MOVE FAST, BREAK THINGS
ORGANISATION 3.0
ORGANISATION 3.0, CASE STUDIES
AGENCY 3.0
AGENCY 3.0, CASE STUDIES
Eric Edge, Facebook
Neil Perkin, Only Dead Fish
Arwa Mahdawi, Contagious
Neil Perkin, Only Dead Fish
Nadya Powell, Dare
http://econsultancy.com/uk/reports/the-progression-of-agency-value
21 in-depth interviews with senior agency contacts
across Europe: Creative, Media, Direct, Digital, Marketing Technology
• What is the role of the agency?
• Commoditisation of services
• Divergence/Convergence of services
• Complexity/proliferation of devices
• Big data – joining it up, real-time, automation, attributing value
• Shift to platforms
• Speed of adoption/transition
•Delivering services •Staging experiences •Guiding transformations
THE PROGRESSION OF AGENCY VALUE
Delivering Services Staging Experiences Guiding Transformations
Data Siloed data sources, basic
data analysis tools
Multichannel, Joining up data, basic attribution,
automation
Integrated digital and online/offline, real-time decisions, sophisticated
analysis
Technology Technology restricts, legacy
platforms Agile development,
software-as-a-service tech
Customised dashboards, scalability of the cloud, actionable attribution
modeling
Skills Paid media skills, vertical
skill sets, poor training
Specialists & Generalists, Creative Technologists,
Tech skills
T-shaped, deep knowledge, human layer over tech,
knowledge sharing
Culture Rigid structure, Push not
Pull, Waterfall project mgt
More fluid structure, collaborative environment,
more project work
Interdisciplinary, cross-functional, small, nimble teams. Permission to fail.
Entrepreneurial
THE PROGRESSION OF AGENCY VALUE
TODAY WE WILL COVER MOVE FAST, BREAK THINGS
ORGANISATION 3.0
ORGANISATION 3.0, CASE STUDIES
AGENCY 3.0
AGENCY 3.0, CASE STUDIES
Eric Edge, Facebook
Neil Perkin, Only Dead Fish
Arwa Mahdawi, Contagious
Neil Perkin, Only Dead Fish
Nadya Powell, Dare
Free range creativity
Craft collective
Agile
AGENCY 3.0: DARE 24
"teams are formed around individual client needs, and when those needs are satisfied, the team is dispersed"
http://www.cocollective.com/
AGENCY 3.0: CO:COLLECTIVE
AGENCY 3.0: PARTY
Creative is at the
heart of everything
They follow the “cloud
model”
They’re not an
advertising agency
STRUCTURE CULTURE PROCESS
key themes PEOPLE
key themes INNOVATION
PLEASE FEEDBACK
DARE SESSION FOUR 27th September 2pm – 6pm