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11 of 11 people found the following review helpful.
By Robert Morris
The term "gazelle" was coined by the economist David Birch. His identification of gazelle companies followed from his 1979 report titled "The Job Generation Process" (MIT Program on Neighborhood and Regional Change), wherein he identified small companies as the biggest creators of new jobs in the economy. In 1994, however, Birch revised his thesis, isolating job-creating companies he called "gazelles." Characterized less by size than by rapid expansion, Birch defined the species as enterprises whose sales doubled every four years. By his estimates, these firms, roughly 4% of all U.S. companies, were responsible for 70% of all new jobs. The gazelles beat out the elephants (like Walmart) and the mice (corner barbershops). When you hear politicians say, "Small businesses create most of the new jobs," they're really talking about young and growing firms. They are talking about gazelles.As Salim Ismail explains in his eponymous book, an exponential organization (ExO) "is one whose impact (or output) is disproportionately large -- at least 10 times larger -- than its peers because of the use of new organizational techniques that leverage accelerating technologies."These are its core values, accompanied by my brief annotations:1. Information Accelerates Everything: But be certain that the information is correct, relevant, and sufficient.2. Drive to Democratization: True, at least in terms of opportunity and access but establish a meritocratic rewards system.3. Disruption Is the New Norm: Again true, but meanwhile, remember that revenue pays the bills4. Beware the "Expert": Wisdom is eternal but expertise must accommodate the work to be done now.6. Smaller Beats Bigger: Unless the subject is profits. I do agree that not all growth is progress.7. Rent, Don't Own: This creates options and alternatives while minimizing fixed, depreciating costs.8. Trust Beats Control and Open Beats Closed: Trust lubricates mutually beneficial collaboration.9. Everything Is Measurable and Anything Is Knowable: That is true more often than not but not absolute.Here are the six characteristics of exponential leadership, accompanied by Ismail's comments:1. Visionary Customer Advocate. "If customers see their needs and desires being attended to at the highest levels, they are much more willing to persevere through the chaos and experimentation that often happens with exponential growth."2. Data-driven Experimentalist: "To create order out of high-speed chaos requires a process-oriented approach that is ultimately nimble and scalable."3. Optimistic Realist: "Leaders able to articulate a positive outcome through any scenario, even downside scenarios, will be able to help maintain objectivity within their teams."4. Extreme Adaptability: "As a business scales and its activities morph, so too must its management...Constant learning is critical to staying on the exponential curve."5. Radical Openness: "While many [most?] leaders and their organizations ignore most of the criticism and suggestions [from within and beyond], creating an open channel to the crowd [outside of the given C-Suite] and the mechanisms to determine signal from noise can provide new perspectives and solutions, allowing access to whole new layers of innovation."6. Hyper-Confident: "Two of the most important personality traits for an exponential leader to have are the courage and perseverance to learn, adapt and ultimately, disrupt the given business."In my opinion, after only a few modifications, these are also the defining characteristics of those who lead small-to-midsize companies as well as those who head divisions, business unites, and even departments in Fortune 100 companies such as those that Ismail examines in Chapter Nine of this book, notably Coca-Cola Company, General Electric, Amazon, Zappos (owned by Amazon), and Google Ventures.As Ismail explains in Chapter Nine, these forward-looking companies "are implementing the ideas discussed in the previous chapter ["ExOs for Large Organizations"]. Some are building ExOs at their edges; some are acquiring or investing in ExOs in their current market space; still others are implementing ExO Lite [see Pages 228-239].Long ago, Ezra Pound urged aspiring writers to "make it new." I was again reminded of that challenge as I noted the reference to "new organizations" in this book's subtitle. Salim Ismail urges business leaders not only to make their organizations new but also to make them "ten times better, faster, and cheaper" than their competition. In fact, I presume to suggest that a company's greatest competitor tomorrow will be who it is, what it does, and how it does it today. With organizations as with individuals, most limits are self-imposed.
0 of 1 people found the following review helpful.
By Kasper Schnedler
changes the view you have on the world of firms & organizations
3 of 5 people found the following review helpful.
By BookBuzz
Five steps to cope with the digital asteroid coming your way soonby Ron Immink on November 6, 2014 in BlogWhat happens when all technologies cross collide and digitisation, demonetisation and dematerialisation come together at exponential speed?Exponential changeIt goes back to what “The second machine age” explains as the difference between linear change and exponential change. One is gradual, the other one doubles every 6 or 12 months. And with exponential change we are on the second part of the chessboard. We are now talking the laws of accelerating returns. Here are some examples of what that means.If you are in computing; $ 2.7 billion to sequence DNA in 2000. Now it costs $ 1,000. It will cost a penny by 2020. It will be cheaper to sequence your DNA than flushing your toilet.If you are in data; by 2020 we will have created 73.5 zettabytes of data (21 zeros).If you are in transport; a Predator drone cost 4 million. The crowd can build if for $ 300. The development of drones is accelerating at twice the speed of Moore’s law.If you are in farming or retail; in 3 years there will be nano fridges that can print broccoli.If you are in pensions; in 5 years there will be at least 2 million people that are completely digitized. DNA, neuro-profiles, bio markers, bacteria, food intake, etc. You will live to be 200 years. That is the current pension system gone.If you are an accountant; Bitcoin will make accounting obsolete.Builders need to be aware of 3D and 4D printing. By 2020 there will be fifty billion connected devices. A trillion by 2030. We will have robots, virtual technology, sensors everywhere, augmentation, AI, solar, nano, collaborative consumption, open innovation, local Techshops everywhere, neuro-enhancements, drones, Bitcoin, quantified self (everything in your life is measured). Name it. Impacting every industry. Doubling the speed of development every year. Getting cheaper, better, smarter.Are you ready?Is your company organised for something like that? Can your top down, hierarchical, linear, large, financial outcome driven organisation, asset based, with unengaged staff with a five year strategic plan, cope with this? The answer is a resounding “no”.Exponential organisation“Exponential organisations” looks at how organisations should be organised if they are to survive the oncoming tsunami of change or what they call the asteroid of digitised information. Helping you to avoid becoming the dinosaur that will be extinct.Disruption is the normBecause disruption will be the new norm. Everywhere! You can either do it yourself, or someone will do it for you. The outsider has all the advantage. And forget about the experts. They don’t understand exponential either (neither do economists).How quick are you?How long does it take to get your new product to market? Apparently the average is about a year. Quirky can do it 29 days. Airbnb owns no physical assets and is worth $10 billion, which is bigger than Hyatt Hotels. Hyatt Hotels has 45,000 staff and 549 hotels. Airbnb has 1,300 staff, 500,000 listings in 33,000 cities. And it is only 6 years old.What to do?Step 1. Define a massive transformative purpose, in order to capture the heart, minds, ambition and imagination of staff and clients.First mover advantageRecruitmentCSR at heart of organisationMeaning and purposeThere are now 668,000 social enterprise, generating $ 270 billion per yearStep 2. Create a communityStaff on demandOpen innovationCollective intelligence“The smartest people in the world are not working for you”Net Promoter Score (if your NPS is very high, your sales function is free)“The world has over a trillion hours a year of free time to commit to shared projects”SerendipityStep 3 Algorithms and dataAutomate as much as you canMeasure as much as you canMachine learning and deep learning16,000 computers connected, started to recognise cats in 3 daysComputers detect video episodes and describe themGoogle XQuantified employeeQuantified workforceStep 4 Leverage assetsTechshop has already created 6 bln of products and is now used by large companies as part of their innovation infrastructureQuirky has signed up with GEUse the platormsCollaborative consumption, peer to peer, etc.If your Net Promoter Score is high, your sales cost are minimal. If you have a peer-to-peer community, your service costs are low. You do not own anything. You leverage what is already there. If you are really good and successful, you become the platform.Step 5 OrganiseOKR (objective and key results)Dashboards of value metrics, which will include IQ, EQ and SQComplete openness transparencyDecentraliseAutonomy and cooperationSocial sharingFocus on experimentationInnovateHolacracy (system where authority and decision making are distributed via fractal, self organising teams).Importance of diversitySerendipityHire on potential and passionThe ultimate aim is to build a zero latency business. The time between idea, acceptance and implementation disappears.The rulesTrust beats controlAverage is overOpen beats closedEverything is measurable and anything is knowableFrom scarcity to abundanceThree years of BookbuzzIt is a cracking book. It is “future vision” on steroids. In fact it is the best we have read in years. There is 3 years of Bookbuzz in this book. Here are some links (and we would be happy to send you more on request):http://www.bookbuzz.biz/build-billion-dollar-euro-company/http://www.bookbuzz.biz/google-works/http://www.bookbuzz.biz/not-change-management-just-staff-engagement/http://www.bookbuzz.biz/decoding-company/http://www.bookbuzz.biz/bioteams-better-acting-like-amoeba-jellyfish/http://www.bookbuzz.biz/are-you-designed-to-deliver-customer-delight/http://www.bookbuzz.biz/makers-and-the-new-industrial-revolution/http://www.bookbuzz.biz/business-lessons-from-antifragile/http://www.bookbuzz.biz/why-is-innovation-not-working/http://www.bookbuzz.biz/innovation-tweaking-is-not-enough/Forget everything you have been learning in university or at your MBA (all based on scarcity models). Find your transformative purpose and go for it.
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