Thinking Fast and Thinking Slow Organisation Design

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'Thinking Fast, Thinking Slow' Organisation Design.

A valuable strategy for established businesses facing stiff competition from fast moving digital market entrants.

In a recent podcast, Airtable's CEO Howie Liu shared how he split his organisation into 'Thinking Fast' and 'Thinking Slow' teams.

I've considered something similar before on a corporate strategy project. An established services business wanted to enter the digital market. New digital entrants were quickly taking market share.

Startups have a big speed advantage:

• Developing & launching products
• Changing direction
• Reacting to customer feedback.

They also worry less about statutory and regulatory issues.

On the other hand, established organisations are slowed by:

• Approval processes
• Layered and consensus based decision-making
• Internal controls
• Stringent IT architecture

These create a stable, viable long-term operation, but they hamper innovation.

The solution, might be to set up a 'Thinking Fast' business unit.

To get these units started consider:

• They should be separate legal entities (limited liability)
• They have their own separate IT environment (open source, flexible)
• Board members a mix of seniors from 'slow' and proven entrepreneurs
• Entrepreneurship oriented staff reward packages
• In general, segregation between speed and stability.

But, make a plan to transition successful launches form Fast to Slow:

• Don't let 'Fast' debt build
• Leverage 'Slow' scale & expertise (finance, HR, support, controls etc.)

Don't forget culture.

The terms 'Fast' and 'Slow' can have different positive and negative connotations. People may feel 'Slow' isn't exciting. In reality, it's likely the more strategic part. Make sure there is a strong brand and culture for both units. Ensure leadership treats both equally.

I'd suggest work rotations between the two. This can ensure products and services developed 'fit' in both operations, and avoid blind spots.

Here's the podcast:

https://lnkd.in/eQiBgB6f

(Also posted on LinkedIn)