Exponential
Transformation
Guide
A Guide to leveraging the Exponential Attributes to build an
organization that thrives in the 21st century.
Introduction
We are living in
extraordinary times.
It could be argued that this is the best time to be alive.
Technology allows people to do things that were simply
impossible just a few years ago. Private companies are
going to space, ordinary people connect via video across
the globe all the time and small groups of people are able
to disrupt large existing organizations. The reason for all
of this is because of Exponential change.
1956
5MB
2005 2014 2016 2018 2020
128MB 128GB 256GB 512GB 1TB
2000
8MB
Using the example of data storage the images above show you how the size of data storage has changed
over time. A 1TB micro SD card the size of your fingertip has 200 000 times the storage capacity of the hard
drive from 1956. If you look at the cost the 5MB IBM 305 RAMAC had an annual cost $35 000 in 1956. The
cost per MB was $7000. This price is $0.0000194 per MB today (2021).
That is over 360 Million times cheaper!
This is a number that our linear brains cannot even comprehend and this is one of the reasons we do not
leverage exponential or see the disruption until it has happened.
Introduction
This Exponential change is happening in a number of industries and verticals. Salim Ismail speaks about
at least 25 Gutenberg moments that are shifting the way the world works. It is important that as an
organization you are able to leverage this and have the attributes in place to do so.
We are experiencing 25+ Gutenberg moments
Society is not absorbing technology fast enough.
1. Wearable Tech 14. CRISPR
2. Mixed Reality 15. Gene Sequencing
3. Digital Twins 16. AI/ML/DL
4. Bionics 17. Energy Storage
5. Nanotechnology 18. Neural Imaging
6. Cultured Protein 19. Autonomous Cars
7. Solar 20. Blockchain
8. Anti Aging 21. Robotics
9. Social Media 22. Drones WehavecalledthistheDecadeoftheExO
10. Sensors 23. 3D Printing as we have seen how organizations that
11. Privatized Space 24. Microbiome leverageExOareabletobuildinnovative
12. Digital Governance 25. Bitcoin and sustaining organizations. Our
13. Cloud Computing 26. Quantum Computing Fortune100ExponentialQuotient(ExQ)
research shows how organizations
that have high ExQ scores ie those that
leverage more Exponential attributes
outperform those that have low scores.
Top 10 ExOs outperform their
bottom 10 ExO peers by having
3X Better revenue growth 10.9X Higher asset utilization
6.4X More profitability 40X Higher total shareholder returns
Why you need Exponential Transformation rather than Linear Digital Transformation
Digital Transformation is in the news and on
the lips and screens of boards members and
C-suites across the world.
Governments are talking about it and the term 4th industrial
revolution is everywhere. There are also a number of publications
about how over 70% of digital transformations fail. As a leader in
an organization it can therefore be easy to get stuck in terms of the
best way to move forward.
Now your organization is going to have to embrace technology
but in doing this you need to ensure that your organization has a
mindset that can best leverage the exponential age that we are
living in. This is where Exponential Transformation comes in. Too
many organizations are digitizing linear processes and not getting
the results that they hoped for. Starting with digitization is not the
way to go.
Why you need Exponential Transformation rather than Linear Digital Transformation
A simple example
An organization that currently uses a manual order book for ordering consumables. This is a time consuming process
and has additional costs of books. The organization therefore wants to remove the manual order book.
A digital transformation approach is to digitize the book, the team essentially takes the manual process and creates
a digital version of it. You end up with a system that likely takes just as long or longer as people need to learn a new
system and is maybe 10% more efficient and the team does not really want to use it. You need to be 10x more efficient,
not 10% more efficient.
Some of the Organizations using this approach
Why you need Exponential Transformation rather than Linear Digital Transformation
Exponential Transformation
For Exponential Transformation
you would use the data on all
consumables ordered in the
past and through algorithms Exponential Companies
Value Creation
you develop a system that self ExO Sprint
orders the consumables based on
historicaldata,youthentweakthe
s
algorithm over time, this allows panie Traditional
Com
your team to focus on more value Linear Innovation Projects
adding tasks as the system self
orders and the improvement is Time
most likely a 10X improvement.
This shift in thinking to more We have developed a number of programs that can help
exponential thinking does not come your organization to achieve this. The flagship being
naturally. the 10 Week Exponential Transformation Sprint. This
process allows an organization to move 3 years ahead in
Your organization needs to have a mindset shift in 10 weeks. For a deeper understanding of the Sprint click
order to be able to leverage Exponential. on the image below.
Understanding how to leverage ExO Attributes within your organization is critical to remain relevant in this decade.
Why you need Exponential Transformation rather than Linear Digital Transformation
Client Feedback
“I have found ExO to be extremely valuable. “This initiative is a prime example of how
I’ve made the book required reading for senior public/private partnerships are beneficial to
management and we are implementing many the community.”
of its principles.”
Paul Polman Carlos A. Gimenez
Former CEO, Unilever Mayor of Miami-Dade County
“ExponentialOrganizationsshouldberequired “90% of the challenge of transformation is
for anyone interested in the ways exponential bringing the company along. It’s easy to get the
technologies are reinventing best practices in top of the organization excited. It’s the frozen
business.” middle that’s the problem. The ExO Sprint was the
solution to unfreezing it.“
Ray Kurzweil Tony Saldanha
Director of Engineering, Google VP Global Business Services, P&G
“I will turn Gucci into an “We will turn Thailand into
Exponential Organization.” Exponential Thailand.”
Marco Bizzarri Prayut Chan-o-cha,
CEO, Gucci Thailand Prime Minister
The Exponential Organizations Model
The Model can be remembered using this simple
After a number of years of research
equation ExO = MTP + SCALE + IDEAS The Three
into hundreds of organizations, the components are a Massive Transformative Purpose
Exponential Organizations (ExO) and then 5 Attributes that Leverage Abundance
Model was created. outside your organization and 5 Attributes that allow
you to manage that abundance internally.
The one non negotiable of an
ExponentialOrganisationisanMTP.
The Purpose of the organisation
must be something that is massive
and transformative and all the
values of the organisation and the
goals must work towards achieving
it. This is not a nice to have slogan
on the wall.
This is what the
organisation must live by.
Some SpaceX: “Humans must become a multi-planetary species”
TED: “Ideas worth spreading.”
Examples of
X Prize Foundation:“Bring about radical breakthroughs for the benefit of humanity.”
MTP’s are Google: “Organize the world’s information.”
Once you have developed your MTP the next step in being exponential is to understand the internal and external
Characteristics that make an organisation exponential. The internal characteristics are Interfaces, Dashboards,
Experimentation, Autonomy and Social. The acronym used is IDEAS. The external attributes are Staff on demand,
Community and crowd, Algorithms, Leveraged assets and Engagement. The acronym used is SCALE.
The Exponential Organizations Model
IDEAS - The Internal Characteristics of ExO’s
Characteristic What is it? Advantages Requirements
Interfaces Provide the bridge • Filter external abundance into • Standardised
between external internal value processes
activities and internal • Link external growth drivers to • Scalable externalities
control frameworks, internal stabilizing factors • Algorithms
e.g. platforms, user • Automation allows scalability
interfaces, API’s
Dashboards Metrics to measure, real • Track critical growth drivers in • Real time metrics
time and meaningful real time • Analytical capability
• Objective-Key Results (OKR) as • OKR’s
management framework • Cultural acceptance by
• Minimise errors by short employees
feedback loops
Experimentation Lean startup methods • Keeps processes aligned with • Measurement
of testing assumptions rapidly changing externalities and tracking of
and consistently • Maximised value capture experiments
experimenting with • Faster time to market (Minimal • Cultural acceptance
controlled risks Viable Product)
• Risk taking provides an edge and
faster learning
Autonomy New “empowered” • Increased agility • MTP
or team based • More accountability at customer • Self starting employees
organisational forms face • Dashboards
• Faster reactions and learning
times
• Better morale
Social Technology Create horizontal • Faster Conversations • MTP
interactions in vertical • Faster decision cycles • Cloud social tools
organised businesses • Faster learning • Co-operative culture
• Stabilizes team
The Exponential Organizations Model
SCALE - The External Characteristics of ExO’s
Characteristic What is it? Advantages Requirements
Staff on Demand More part time, • Best skills for the job • Capability to hire
specialised, mission • Agility services on demand
based staff. • Learning of core team • Clear task
• Stronger bonds in core team specifications
Community & Harness the power of • Increase loyalty • MTP
Crowd the community and • Enable exponential growth • Engagement
crowd by engaging with • Validate new ideas and learn • Authentic leadership
them through whatever • Agility & rapid implementation • Easy to participate for
means • Create new ideas outsiders
• Peer to peer
capabilities
Algorithms Use data and automate • Scalability of products and • Machine or deep
decisions or reduce services learning
human biases while • Leverage connected devices/ • Cultural acceptance
making decisions. sensors
• Lower error rate & stabilize
• Easy to update
Leveraged Assets Use assets, do not own • Scalability of products and • Easy available assets
them unless they are services • Interfaces
scarce • Lower marginal costs of supply
• Removes having to manage
assets
• Agility
Engagement Engage community and • Increase loyalty • MTP
crowd • Gain ideas • Clearness & fairness
• Converts crowd to community
• Leverage Marketing
• Play & Learn
• Digital feedback loop to
customers
The Exponential Organizations Model
You can map out how your organization is leveraging the Attributes on the ExO Canvas.
How you can
leverage ExO One of the best places to begin is
to understand how Exponential your
organization currently is. This can be
done by completing the Exponential
Quotient Survey. You want to achieve
a score of at least over 65. Next would
be to get a better understanding of
the ExO Attributes, you can watch the
ExO Foundations Training or read the
Exponential Organizations Book.
Once you have a good understanding you can then look at mapping how your organization is leveraging the Attributes
using the ExO Canvas. In order to drive Exponential Transformation you can run an ExO Sprint. You can see below in the
How we can help you section how you can leverage the OpenExO community to drive this initiative or you can purchase
the Exponential Transformation workbook and implement it within your organization.
How we can help you We have built a global community of ExO coaches
and consultants, technology thought leaders and
innovators and disruptive doers that are helping
organizations from across the world to leverage
Exponential transformation. We have a number of
programs and opportunities for organizations of
Scan this QR code or all sizes. You can reach out to us here and we will
follow this link to get be in touch to work on developing your Exponential
started. Transformation.
