If you’ve ever heard the term ‘exponential organisation’ (ExO) before but never quite understood what it is and why they’re able to grow so fast, this article should shed some light on the subject for you. After learning a little about ExOs in this article, you may want to learn more. I would highly recommend reading Salim Ismail’s book – Exponential Organisations if you’d like to really delve into what an ExO looks like. Who knows, you might even be interested in making your business an exponential organisation in its own right…
Why are Exponential Organisations needed?
In a world that is constantly changing and evolving, it is important to have organisations that can adapt and change quickly. Exponential organisations are designed to do just that. They are nimble and adaptable and can scale quickly to meet the needs of a rapidly changing world. This makes them ideal for responding to crises and for taking advantage of new opportunities as they arise. In short, Exponential Organisations are the future of business, and they are needed now more than ever.
How to set up your own Exponential Organisation
Exponential Organisations use technology to solve problems and grow at a rapid pace. These organisations are often characterised by their flat hierarchies, flexible workflows, and ability to scale quickly. If you’re looking to set up your own exponential organisation, here are a few things you’ll need.
– Flat Hierarchy: Don’t be afraid to promote or hire people who have skills in areas other than what your initial need is. Hire for attitude and give these people access to the best and brightest in the business and watch them grow. If they can learn well, they will be adaptable.
– Flexible Workflow: Offer remote positions where possible, as well as flex hours for those who want them.
– Create opportunities for people from different departments to work together so they can learn from each other and better understand how all aspects of the business interact with each other.
– Finally, create a culture of ownership which encourages employees to make mistakes and learn from them, and come up with new ideas. In turn, implement an idea bank for suggestions that don’t quite make the cut but still show promise.
What an exponential organisation looks like
These organisations are often characterised by their use of data and analytics, their lean and agile structure, and their ability to rapidly test and iterate. They are also defined by their speed-to-market and the high-quality standards they maintain.
One example is Google’s parent company, Alphabet. In 2015 Alphabet was able to reach $100 billion in revenue, but today it generates more revenue than Amazon or Facebook combined. From 2000-2009, its workforce increased from less than 10,000 employees to more than 70,000. This shows that exponential organisations work differently from any other type of business.
Some things to bear in mind when setting up an exponential organisation
These organisations use technology to grow and scale at a rate that is unprecedented. To be successful, an exponential organisation must have a few key things in place: a mission (or MTP) that inspires and motivates, a team of passionate and talented individuals, and the right technology.
The right technology is essential for an exponential organisation because it allows the organisation to reach more people, do more with less, and scale quickly. Once you are set up, you need to find your customers and find out what they want so you can provide them with what they need.
Finally, make sure that as your exponential organisation grows, you don’t lose sight of your original goals or those who helped get you there!
If you would like to learn more about how HRLocker is developing as an Exponential Organisation, get in touch, I’d be happy to talk you through our journey so far.
Adam Coleman