Leadership for a Networked World Leadership for a Networked World
ΔΔI I ++ ΔΔWW + ΔΔLL ΔΔVV
AgendaAgenda
1. Concepts
2. Practitioner Guidelines
3. The Future
ΔΔI I ++ ΔΔWW + ΔΔLL ΔΔVVConcepts• systems analysis• productivity, equity, legitimacy• risks versus returns• information and technology• specialization and scale• the role of authority• remote-service, self-service, and outsourced service• support: confusion X conflict• change: size X frequency• learning curve• Eight Imperatives• Cross-Boundary Leadership
ΔΔV:V: Systems AnalysisOPTIONS, MEANSOPTIONS, MEANS VALUES, ENDSVALUES, ENDS
1. Technology1. Technology2. Org design2. Org design3. Leadership3. Leadership4. Etc.4. Etc.
1. Productivity1. Productivity2. Equity2. Equity3. Legitimacy3. Legitimacy4. Etc.4. Etc.
++
Other VariablesOther Variables
1.Value? What do we care About?2.Options: What can we do?3.Relationships: What is known, unknown?4.Decisions: For action? For Further study?
1.Value? What do we care About?2.Options: What can we do?3.Relationships: What is known, unknown?4.Decisions: For action? For Further study?
ΔΔV:V: Productivity, Equity, Legitimacy1. Productivity ($/capita): IT as #1 investment since 1995; the major factor behind recent
productivity growth huge long-term potential for global, knowledge-based
economy; but major risks (need for CEO + CIO teams)2. Equity/Fairness (Gini coefficient): easier to reach dispersed poor, but major educational
challenges (with troubling trends)3. Legitimacy/Transparency (trust): capacity for transparency, but suspicious of control by
incumbents and failures
Much at stake, both positive and negativeMuch at stake, both positive and negative
ΔΔV:V: Risks vs. ReturnsLearn values (preferences), options, and relationships
Make tradeoffs (across values, time, etc.)
And every action involves uncertainty and risk…
Value
Probability Now
Downside risk
Upside potential
Distribution of results
Balance risk and return; judge when to actBalance risk and return; judge when to act
ΔΔI:I: Information and Technology• ElectronicElectronic – efficient, fast, interactive• DigitalDigital – yes or no; extremely accurate; for data, voice, video,
integration• Processing Processing – if then, a reduced need for “handoffs”• Over networksOver networks – here there, remote and asynchronous
handoffs• With incredible productivity growthWith incredible productivity growth -- through Moore’s law
and Metcalfe’s law
Digital information processing over nets Digital information processing over nets
ΔΔW:W: Specialization and Scale
Group action supports economies of:• scale – e.g., armies• specialization – matching skills and interests• specialization – learning via repetition
VALUE
But coordination difficult: Who gets the value?• Let trades motivate voluntary adjustment• But what about public valuepublic value and threats from:
• slow decisions, externalities, inequities?
Take advantage of specialization and scale.Take advantage of specialization and scale.
ΔΔW:W: The Role of Authority
hierarchy of authority
shared goals,transparency
Authority to govern, protecting the public interest against Authority to govern, protecting the public interest against stalemates, spillovers, and inequitiesstalemates, spillovers, and inequities
rules rules rules rules rules rules
ΔΔW:W: The Role of Authority
hierarchy of authority
shared goals,transparency
rules rules rules rules rules rules
Authority to govern, protecting the public interest against Authority to govern, protecting the public interest against stalemates, spillovers, and inequitiesstalemates, spillovers, and inequities
ΔΔW:W: Divisions of Labor
2. Self-service, redesigned service – fewer handoffs/delays
x x hierarchy of authority
rules rules rules rules rules rules
1. Remote, asynchronous service – fewer interruptions/trips
ΔΔW:W: Divisions of LaborBoundaries: program, agency, enterprise, jurisdiction, industry, nation; define areas of accepted authority
Supplier/Partner NEW ORG (core functions only)
rules rules rules rules rules rules
1. Remote, asynchronous service – fewer interruptions/trips
2. Self-service, redesigned service – fewer handoffs/delays
3. Transparent, outsourced service – better specialization
ΔΔW:W: Targets of Innovation
Supplier/Partner NEW ORG (core functions only)
rules rules rules rules rules rules
1. Remote, asynchronous service – fewer interruptions/trips
2. Self-service, redesigned service – Enterprise integration
3. Transparent, outsourced service – better specialization
Expand networked relationships and negotiation.Expand networked relationships and negotiation.
ΔΔL:L: Change: Size X FrequencyEVOLUTIONARY
Total Quality Management(significant investment)
???The Learning Organization
(most investment)
TURBULENT
STABLE
Specialized Planning Staff(least investment)
2 31
REVOLUTIONARY
Reengineering(very significant investment)fr
equ
ency
of
steps
take
n
size of steps taken
Add effort and authority as turbulence increasesAdd effort and authority as turbulence increases
ΔΔL:L: Confusion X Conflict
Vision: plans, pilots; stake-holder involvement and education
Judgment: care, commitment;
“slow trigger, fast bullet”
Action: Just do it; line leadership for projects
Negotiation: negotiation, control;
align incentives,maintain focus.
conf
usio
n
conflict
Resolve barriers of confusion and conflictResolve barriers of confusion and conflict
Concepts, in Sum…• Maximize value…
Analyze the system, balance risks and returns• … by working together
Take advantage of specialization and scale• … in well-governed groups
Establish controls for stalemates, spillovers, inequities• … using information and technology
Digital information with electronic processing over nets• … for improved divisions of labor
Remote service, self-service, outsourced service• … through investments in innovation
Add effort and authority as turbulence increases• … and successfully implemented change.
Resolve barriers of confusion and conflict
The Learning Curve
Extension by “fast followers”
Invention by “first movers”
Economies of innovation
Economies of standardization
The GAP –a HUGE problem
Ado
ptio
n
Build bridges via deeper, trusted communicationsBuild bridges via deeper, trusted communications
Now Moving to the Next Wave…
pen
etr
atio
n a
nd b
en
efits
VALUE
time and effort
ACCESSonline,
not in line
REDESIGNcross-boundarytransformation
On a curve: • A step• Normal change
Changing curves:• A leap• Crisis change
TIME
……with new leadership/governance challengeswith new leadership/governance challenges
On a curve: • A step• Normal change
Changing curves:• A leap• Crisis change
Major leadership mistakes…
• Head in the sand– IT “not strategic”– “Don’t bother me”
• Silver bullet– IT as the solution– “Don’t bother me”
• Boiled frog– Misses the real problem– Can’t respond in time
Cross-boundary Challenges…For Planning --For Planning --1. Explore new technologies, especially for cross-boundary collaboration. 2. Engage larger groups: customer groups, the enterprise, and entire industries
and policy communities.3. Honestly assess strategic risks, including the risks of inaction.4. Keep the pressure on for change: high enough but not too high.
For Implementation --For Implementation --5. Focus on communication and negotiation, working especially with external
stakeholders to string successes together.6. Develop new business models that overcome budgeting myopia. 7. Develop and apply flexible open standards to promote self-organization and
innovation.8. Sustain relationships through new governance as required.
Needed = active, adaptive, partner-oriented leadership.Needed = active, adaptive, partner-oriented leadership.
Major Trends
B/C growth = 1,000,000 timesB/C growth = 1,000,000 times over past 30 years over past 30 yearsB/CB/C
1.01.0
high volume, routine high volume, routine authorityauthority
low volume, non-routine low volume, non-routine negotiationnegotiation
…from automation to innovation…from delegation to leadership
Next Step: Data Processing
Faster processors – 64 bit, multi-Ghz, clusteredVoice and video processing, complex simulationsAgents, data mining, more powerful search
Better storage – disks, flash, glyphsiPod for classes, RAID technology, your life in video
Better I/O – voice, language, visualizationDictation, Chinese, teaching physical skills
Better (and much, much more) dataXML, sensors (every tree in the forest), wikis
Next Step: Communications
Wireline bandwidth: fiber, DSL, cable modemsThe power of video and “talking heads”
Wireless: WiFi, meshFor field work, the home, equity
Peer to peer architecturesUnleashing vacant capacity, security concerns
Satellites: stationary and low earth orbitalBroadband, even broadband interactive, everywhere
Next Step: Applications
ERP: COTS standardization for “non-strategic” apps
VoIP: voice is “free”? Skype ++
Identity authentication: with biometrics (but difficult)
GIS: the way governments see things
Collaboration tools, innovation: new ways to work with Web 2.0 ++
Parting Thoughts . . .1. Value from innovation, not just automation; the technicians can’t do it alone.
2. The vision must be shared (confusion resolved) and the leadership must be committed (conflict resolved).
3. Net-enabled service & new funding options can be high-value moves.
4. “The” issue: Government as partner in the shift to global electronic commerce.
5. These will be your issues…
It is time for a new generation of It is time for a new generation of leadership to cope with new problems leadership to cope with new problems and new opportunities. For there is a and new opportunities. For there is a
new world to be won.new world to be won.ΔΔI+I+ΔΔW+W+ΔΔL L ΔΔVV
It is time for a new generation of It is time for a new generation of leadership to cope with new problems leadership to cope with new problems and new opportunities. For there is a and new opportunities. For there is a
new world to be won.new world to be won.ΔΔI+I+ΔΔW+W+ΔΔL L ΔΔVV