Cracking the exponential code:
5 Keys.

Linear progress
is no longer progress

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  • Metaverse
  • AI
  • Cognitive Computing
  • Internet of Everything
  • 3D Printing
  • Autonomous Transportation
  • Blockchain
  • Extended Reality
  • Digital Biology
  • Digital Neuroscience
  • Quantum Computing
  • Nanotechnology
What is this all for?
Why can´t we just keep the status quo, we are quite successful.
No need to dive deeply into higher mathematics or physics to translate the impact of exponentiality to business processes and outcomes. There is no room for a “quite”.

On the other hand, it´s this unbelievable doubling of small numbers to astronomical magnitudes that by far exceeds the imaginative power of our thinking. Since human brains can hardly bridge the gap between the linear and exponential reality, we perceive that the present has surprises in store for us and the future is uncertain. The latter causes fear – evident in the changes currently on the agenda and even more so when it comes to planning and shaping the future.

This is why many business people are afraid of taking any risk to make their company future-proof now. Playing safe with the drawback of losing the future: Learning from past experiences how much change is feasible at a time to the benefit of both company and the associates and keep on doing transformations step-by-step – no option if you are aiming at staying a leading company in your sector and beyond. It´s the big picture that has to be drawn: a paradigm shift or in other words innovation.

This is what we do with customers around the globe at ActioGlobal. We do not believe in telling the future from the magic crystal ball, we focus on shaping it through business practice, partnership with our clients and common learning – and an exponential mindset.

New business challenges require unprecedented business perspectives

In the last decade we’ve partnered with the best organizations on the planet to crack the exponential code.

Here the 5 fundamental keys we learned:

First and foremost: be prepared to disrupt the status quo and the bystanders protecting it.
Then, fuel the exponential flywheel:

01.

Define a Massive Transformation Purpose (MTP),

a really massive one, and live for it like Google: “Organize the world´s information.” Doesn´t sound modest. Modesty won´t get you far. Be ambitious, aspirational, dare! In fact, you want nothing less than to make a positive impact for the planet! It´s the first step to approach a future-oriented transformation.

Your target is to unite leadership, associates and customers for making an impact for the futures as well as to have an impact on your organization itself. Throw away yesterday´s trophies and start innovating. Get the hearts & minds of your people to shape their future. It´s not only prioritizing valuable business objectives objectives, it´s also passion that matters. Get exponential to make an impact, not just to touch the stars.

02.

Build an exponential organism

a network of Agile High Performing Teams. They will become the core of the evolving living organism “organization”.

Giuseppe Pasceri

CEO Subito (an Adevinta company)

“I can honestly disclose, due to 20 years of leadership in digital companies, that I haven’t ever been working so effectively like in these days while I am using the PEAK framework and the support of ActioGlobal. Moving the needle for really creating value at every Gemba, doing it in the fastest way possible, with a broad consensus from the people who are working with me… well, this is a true luxury!”

This network needs to be designed to maximize autonomy while fully attuned to the Massive Transformation Purpose (MTP).

The ability to ‘self-organize’ and work interdependently, understanding, trusting and actualizing the expertise and contributions of each individual yields a sum far greater than its parts.
Prerequisites for building this living organism include:

A] A clear and shared understanding of the Massive Transformation Purpose (MTP), and

B] Crystal clarity of the necessary outcomes [prioritized through your OKRs].

An inclusive transparent communication enables each team member to be part of the impact needed to realize the MTP. The teams define their OKR regarding outcomes, they experiment, fail and learn, the organizational Drumbeat propels an initiative to the teams.
Mutual Radical Candor keeps them on the right track. The intrinsic and extrinsic reward system is a cornerstone. Finally the teams are not only self-organizing but autonomous!

Self-organized teams rather than functional silos are a paragon of exponentiality.

03.

Develop a growth oriented mindset

in the associates and make them embrace challenges, give and receive radical candor,
co-create collaborate with each other – without fear.

Cocreation among each other for the benefit of individual and the company’s growth means sharing information, collaborating, innovating, seeking feedback, or admitting errors. Over time, associates as well as leaders will pursue challenging goals, think outside the box.

The motto must be: Linear progress is no longer progress

Build. Try. Learn. Each time faster.

Fear inhibits growth.

04.

Embrace GRIT

Evolutionary teams and the organization itself learn by regularly iterating after one goal achieved, then they advance to a higher level, a higher level of learning that is, followed by an acceleration of progress, resulting in an exponential evolution. Indispensable travel companions.

Watch out: Avoid the common mistake of overestimating the speed of exponentiality and mind the importance of being long-term oriented and resilient in the journey. Our initial comparison between linear and exponential does not show a time frame but it is quite obvious that nothing will be achieved in the short term, but a quantum leap in the long term.

This is where GRIT comes in: don’t give up, persevere, believe in your vision … Although it will take long, meet the challenge(s) and be rewarded for all the trouble and patience by success.

Since GRIT is a term in psychology, it is referring to lifetime goals rather than to short term success.

The success story of Pixar shows that entrepreneurship never follows the linear road:

Pixar, now a Walt Disney Company group, was co-founded in 1986 by those shining lights of exponentiality like Steve Jobs, Edwin Catmull and Alvy Ray Smith. They were sure that it would eventually be feasible to produce full-length animated films by computer. But they were also clear that first the hardware would have to be built for producing these films. Waiting until the time is right is part of exponential thinking before embarking on the journey. Once the technology was in place and the time was right, in 1995, Pixar brought Disney Studios on board to make “Toy Story”, the first feature-length film made entirely on computer, Both made millions on it. After that Disney Studios took over Pixar for about 7 billion dollars.

Take Airbnb: Mr Chesky, Mr Blecharczyk and Mr Gebbia really suffered on their way from 2008 when they founded their company. The year before, Brian Chesky and Joe Gebbia rented their own spare bedrooms to B&B guests The year after, during SXSW they realized 2 – in words TWO – bookings on their Airbnb-platform. To make their vision survive, they developed the high-price Obama and McCain cereals (a political allusion), but things were not growing. They went begging and were rejected by VCs. In 2021, Airbnb has a market capitalization of $110B. Bad luck for the VCs.

Also see the life and business stories and the final outcomes of GRIT entrepreneurs like Elon Musk, Bill Gates, Richard Branson, Mark Zuckerberg, Larry Page and Sergey Brin … They have a mindset for
Guts. Resilience. Initiative. Tenacity
and they are/were a bit crazy, too.

Have a MTP – experiment – fail – learn – (fail again) – experiment – learn …. iterate this cycle again and again – win and see the next point below.

People need to understand how exponential technologies are impacting the business landscape. They need to do some future-casting and look at how industries are evolving and being transformed.

Peter Diamandis

05.

Unlock the power of exponentials and start over again

Manufacturing Company A is a typically linear organization, but successful although it´ s constrained by limited resources. Each time it wants to increase business, physical assets have to be bought, facilities have to be bought or built, local staff hired and much more. Company growth depends on scarce assets.

Digital Company B shaping digital marketplaces for private people to offer, buy or rent cars, real estate, consumer goods but also platforms to match company and talent has only low organizational demands but a huge business potential. They do not have to own facilities and warehouses, their assets are customers: listings and clicks. They take advantage of abundance, abundance of consumers and goods. This business model multiplies everything else about the company’s underlying value proposition.

Today, ALL organizations are given every opportunity to use the abundance of exponential technologies, which gets cheaper and cheaper but powerful and more powerful. Small self-organized teams in organizations acting like startups when it comes to agility, lean and digital, apply them, achieve peak performance faster and more effectively. It is almost impossible for the competition to outmaneuver them.

Agility is not enough.
PEAK Agility is the next.

Previously, we outlined that the journey to being competitive takes time. But not only are exponential organizations more competitive, in the long run they are also set up for long-term survival. That is inherent to the word “exponential”.

The ever rising opportunities of the digital revolution visible in the rapid development of mobile devices and mobile application software a well as the Internet of Things, or better said the Internet of Everything, provide an inconceivably large abundance of data. Only companies in which all staff share an exponential mindset are capable of exploiting the full potential of the digitized economy that is currently establishing itself. Collecting and processing data to the realization of innovations, democratizing the access to data, information, communication capabilities for each member of the staff makes the company´s exponential purpose a reality – and it´s not an augmented or virtual one.

More tailor-made transformations by ActioGlobal®

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