The Exponential Organization: New Business Model for Hyper-Growth
- Paper number
IAC-17,E6,1,10,x41632
- Author
Ms. Farnaz Ghadaki, ExO Works; Fastrack Institute, Canada
- Year
2017
- Abstract
In a time of exponential change, companies - whether a startup or large corporation - need to adopt an exponential mindset and business model in order to achieve hyper-growth and success. The saying these days is “disrupt yourself or be disrupted”. There is a new breed of company, the “Exponential Organization” (ExO) that is ten times better, faster, and cheaper than a traditional company which often operates in linear terms. The ExO is able to accelerate its growth by leveraging exponential technologies, such as Artificial Intelligence, Robotics, Computing, Sensors, 3D Printing, and Virtual Reality, and by innovating at the edge as well as the core. Three luminaries in the business world - Salim Ismail, Yuri van Geest, and Mike Malone - have researched and analyzed this phenomenon and come up with a business framework in their book “Exponential Organizations”. This paper explains the characteristics of ExO’s, including Massive Transformative Purpose (MTP), five external attributes (I.D.E.A.S), and five internal attributes (S.C.A.L.E). The external attributes consist of Interfaces, Dashboards, Experimentation, Autonomy, and Social, bringing in order, control and stability to the organization. The internal attributes consist of Staff on Demand, Community & Crowd, Algorithms, Leveraged Assets, and Engagement, managing creativity, growth, and uncertainty. These elements along with MTP make up the ExO canvas, and serve as a powerful tool for organizations to accelerate their growth a factor of times faster than their peers. This paper highlights a few examples where the ExO framework has been applied, including in companies going through the “ExO Sprint” 10-week program to leapfrog their organization’s mindset forward by two years, and scaling their performance many-fold. The ExO framework has also been applied at the city level, as for example in Medellin, Colombia, where four problem areas of financial inclusion, mobility, health, and education were put through the process yielding novel and innovative approaches for the city to make transformative implementations. The ExO framework and case studies serve as an inspiration and valuable model for any organization or business venture in the space sector to follow in order to achieve high growth and high performance in exponential times.
- Abstract document
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