How to Decentralize Your Organization

How to Decentralize Your Organization

Derived from…
Ori Brafman & Rod A. Beckstrom; The Starfish and the Spider

The Five Things You Need to Create a Decentralized Organization

RAP5: Creating Fusion
To fuse the best of spiders and starfish two primary strategies are available.
Firstly, decentralize the
customer experience by letting them have a role in business.
Secondly, decentralize internal parts of the business into separate independent business units.
Here’s some suggestions as how you can decentralize your organization.

? Decentralize the Customer Experience
The Playgroun
Creating a Fusion Organization is like building a playground.
First, you need to add a slide, then a swing, a climbing frame and make sure you build a fence around the playground.
Second, we want the kids to play fair so we need to make some rules.
How about… only one person on the swing at a time, no kicking, no foul language…

Third, we want to let the kids play.
That’s it, just let ‘em go and enjoy themselves.

Three Steps to Creating a Fusion

  1. Create the Structure : Define the system or process of the organization. Ebay built a website; Big Brother built a house and Skype built peer-to-peer software.
  2. Design the Cultural Rules : Share your ideology and design some rules to represent it. Ebay has feedback points to build trust; Alcoholics Anonymous has the 12 step process and the Internet has software standards.
  3. Let People Play : That’s it just let ‘em loose… Ebay provides DIY tools for buying and selling; Skype lets you make calls to who ever you want and Amazon lets customers make recommendations.

? Spin-off Business Units

  • Run the business unit ‘as if’ they are stand alone businesses with their own profit/loss statement.
  • Start by spinning off a project team.
  • Give them a separate budget, separate facilities and their own team.
  • Encourage them to be innovative and create their own objectives.
  • Let them establish their own cultural rules.
  • Let business units compete against each other paying full retail prices for services.

Actions: How to let your customers contribute…

  1. Instruct : Let customers provide instruction to others through a forum or a wiki eg Quicken, Adobe
  2. DIY : Give your customers tools to help themselves or help you, For instance, let customers police your website eg Ebay, Wikipedia
  3. Create : Let customers make their own products or serve themselves eg IBM’s support of Linux, Sun Microsystems making its software open-source
  4. Shape : Let customers shape your products eg Google’s Page Rank/News – user habits define the rankings; Brewtopia lets users design their own beer
  5. Voice : Give your customers a voice eg Oprah’s Book Club and Amazon’s Recommendations

More Updates

The Ultimate Way to Align Your Vision Mission Purpose

What’s the difference between vision mission and purpose? And most importantly, what’s the best way to align them to drive your success? Vision, mission and

The Best 11 Purpose Quotes to Inspire Your Life

Do you want some inspiration for your life? Here are 15 of the best Purpose Quotes to get you moving. These purpose quotes have been

Nine Purpose Synonyms exposed - spice up your life

Purpose synonyms are other words that have a similar meaning to purpose. And this is a great way to deepen our understanding of the meaning