Assertion Supported AI assessment confidence: 90% certainty 4/5 debate potential 2/5

Ismail: Haier split 80,000 employees into 2,000 autonomous micro-enterprises

Salim Ismail · The Rise of the Exponential Organization with Peter Diamandis and Salim Ismail · May 25, 2023 · at 33:50

Salim Ismail, co-author of Exponential Organizations, highlights corporate decentralization case studies.

0:00 / 0:24exact quote · 24.9s
▶ Watch the full episode on YouTube → 720p mp4 · rendered on demand · StarZero watermark
“They make fifty-five million fridges and ovens a year. There were 80,000 people in a classic pyramid structure, command and control, top-down, etc. CEO one day wakes up and goes, can't meet my corporate goals using this structure. Blows it up. Turns 80,000 people into 2000 individual teams of about 40 people each. Okay, each team has a P&L, each target, each team elects their own leader, and each team decides to do whatever they want to do.”

quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →

More from Salim Ismail

Opinion
Ismail: Coase's Law is obsolete due to cheap web service transaction costs
“So in the book, we actually declare Coase's Law, which has been, ah, very touted for a hundred years, essentially gone. Because the pay, the need to control a big company makes it too slow to navigate all these massive changes that are happening. And B, the tr…”
Salim Ismail May 25, 2023 ▶ 15:18 The Rise of the Exponential Organization with Peter Diamandis and Salim Ismail
Prediction Open · timeframe May 2028
Ismail: Generative AI will replace most lawyers
“The best benefit is we'll replace most of the lawyers. Because you could just say, generate me a contract that has these characteristics and it'll throw in the clauses and et cetera.”
Salim Ismail May 25, 2023 ▶ 52:45 The Rise of the Exponential Organization with Peter Diamandis and Salim Ismail
Assertion Not checkable as stated
Ismail: Amazon penalizes employee bonuses if their experiments do not fail enough
“We saw, for example, an Amazon that every team is measured on how many experiments they ran this quarter, how many succeeded, how many failed. If you're not running enough experiments and not enough for failing, you're actually, your bonus gets dinged, right?”
Salim Ismail May 25, 2023 ▶ 30:57 The Rise of the Exponential Organization with Peter Diamandis and Salim Ismail
Assertion Partly supported
Ismail: GE sold its appliance business to Haier after failing to compete
“GE actually gave up and sold GE appliances to them because they couldn't compete.”
Salim Ismail May 25, 2023 ▶ 34:43 The Rise of the Exponential Organization with Peter Diamandis and Salim Ismail
Assertion Supported
Ismail: Top exponential Fortune 100 companies outperformed bottom 10 by 40x
“Over a seven-year period, the top 10 did better than the bottom 10 by three x on revenue growth 6.4 times on profitability, 10.9 times on return on assets, but shareholder returns, compound annual growth rate, top 10 outperformed the bottom 10 by 40 x.”
Salim Ismail May 25, 2023 ▶ 40:47 The Rise of the Exponential Organization with Peter Diamandis and Salim Ismail
Prediction Not checkable as stated
Ismail: Companies without generative AI will not survive
“If you're not building generative AI into your products and services going forward, you're not going to last.”
Salim Ismail May 25, 2023 ▶ 45:43 The Rise of the Exponential Organization with Peter Diamandis and Salim Ismail
Made with StarZero

Turn any episode into a week of clips.

This entire site, over 1,000 episodes transcribed, diarized, checked and made playable, runs on the StarZero media pipeline. Drop in your own episode and the podcast clipper finds the moments worth sharing, cuts them, captions them, and reframes them for every feed.