Tag: organisation design

  • Efficiency, a zero sum game?

    In vs Amazon, I had cited Simon Andrews’ article – it might be “easy” to get about $50m, the journey to $100m and beyond gets tougher because efficiencies start maxing out. In this context, “efficiencies” relate to acquisition when building a DTC business. It led me to think of “maxing out efficiencies” in the broader context of the organisation and the business environment it operates in. (more…)

  • Evolving against entropy

    ​In the last fortnight, I had two interactions with customer care teams. The first was Kotak, for a bank account. There were failures at multiple levels, but the biggest takeaway was how difficult it was to get through to a human. Chatbots have their uses but this was extreme! Twitter DMs weren’t a help either. The second was Amazon, and that surprisingly included being put on hold for about 15 minutes and transferred 5 times! Thankfully, the problem was resolved in 30. But given the famed Amazon customer-centricity, this was a disappointment, and I wondered if at scale, it was inevitable. 

    What causes it? The best frame I have seen is entropy. (via) Yes, that physics and thermodynamics thing – the degree of disorder/randomness in the system. Though the meaning remains the same, the application changes. In the context of a business, it is the tax applied by the system between input and output. Just imagine the effort that is required to get things done in a corporate structure as against a startup. While it is theoretically possible for a complex system to have lesser entropy than a simple system, I have not seen it in practice. I can imagine why it is so – the randomness that can be generated by different touchpoints, and their optimization for following rules as opposed to providing solutions. What happened to me with Kotak and Amazon were examples of that.   (more…)

  • Designs on Data

    In the last post, I’d written about the massive amounts of data that is already being generated and will grow, whether or not organisations track/capture/use it. The question then becomes one of ‘ownership’, within the organisation’s structure.

    The consumer, irrespective of his touch point, will expect a consistent and probably even a customised experience,  basis preferences communicated earlier, and transactions which can only happen if the functions talk to each other. And it is in that context that I found this (slightly dated) post by Dave Gray very interesting.

    He cites a talk by John Hagel, in which it was mentioned that “the average life expectancy of a company in the S&P 500 has dropped precipitously, from 75 years (in 1937) to 15 years in a more recent study.” In this context, he then goes on to dissect the design of companies – from a machine like structure with focus on control, maintenance and leading to eventual wearing out… to a design based on organisms or complex structures built by humans, like cities where there exist flexible ecosystems, a shared identity and an early seizing of opportunities to grow.

    Within the same analogy, he also then shows how a ‘machine’ design also brings in a “design by division”, resulting ultimately in function based silos. The alternative is “design by connection” which goes on to the Social Business Design concept and includes crucial elements like culture, starting small and scaling and so on.

    There is another interesting angle to this – the way much of this data (I have only social platforms to rely on now) seems to be flowing, it does not necessarily have to be the organisation that uses it best. It could be any of the middlemen – from retailers armed with sensors to a platform like Facebook/Foursquare/Twitter/Groupon (the last entity is talking to cash register manufacturers to have their button pre-installed at retail cash registers!) to super users. So perhaps it is time for brands to take a more structured view of data and its custodians. I have a feeling that it will have to be a hybrid model of design by division and connection.

     

    until next time, data open