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The business world is always looking for new concepts to optimize operations and explore ways to scale organizations. When innovation emerges, it creates many changes across different sectors, creating business branches that can change people’s habits—and, as a result, generate significant profit.

A good example of this transformation is storage media. How many floppy disks were used to store information twenty years ago? That medium evolved into CDs, USB flash drives, and today data is stored in the cloud.

There’s no way to stop technological change, but there are ways to benefit from it exponentially. Organizations that break multiple models, create new concepts, and transform the way business is done can attest to that.

If your goal is to become an exponential organization, know this: the best way to enter this new culture is by adapting to it.

What are Exponential Organizations?

Exponential Organizations (ExOs) are those whose output is disproportionately larger than their peers due to the use of new organizational techniques. They benefit from the rapid growth of technology, developing solutions that are ten times better, faster, and lower-cost than traditional linear companies.

The difference between exponential organizations and traditional companies is that ExOs don’t invest in rigid structures with many employees, large physical facilities, and impenetrable hierarchies. ExOs “dematerialize” what used to be physical and shift it to the digital world on demand.

Organizations that want to remain competitive need to understand that becoming an ExO is an urgent necessity—pure and simple survival.

What matters for ExOs?

What drives exponential organizations is the search for modern technology solutions. On the opposite side of innovation are traditional linear companies that use obsolete models with technological lag, preventing them from expanding.

ExOs are recognized for developing new solutions to deal with old problems. Want an example? Taxi apps, which increased and democratized access to this kind of transport.

Innovating doesn’t mean getting rid of all existing infrastructure. It means using what already exists, applying simple solutions that deliver effective results, and continuing to evolve in your area.

Below are a few steps to transform your organization into an ExO.

1 – Massive Transformative Purpose (MTP)

Think about something that needs to be transformed and ask: “What is the biggest problem I would like to see solved?” Identify the core of the problem and then create an MTP—Massive Transformative Purpose.

Ideally, the MTP should be created through a deep exercise and reviewed during the conception of the ExO. To build an MTP, answer the following questions:

• Why does this organization exist?
• What is its purpose?
• What is its objective?
• Does everyone understand its purpose and objective?

2 – Build an exponential business model

It’s not enough to have a good understanding of exponential organizations if you’re still tied to an old methodology that takes too long to generate profit. If that’s your case, focus on modern project management and create the right standards to scale the business.

3 – Staff on demand

Fast-growing companies focus on IT outsourcing, which is more agile and effective—especially with the rise of cloud computing and mobility.

As a result, modern organizations stopped working with large teams that are often not very productive. Because of that, the concept of staff on demand emerged, hiring people according to the needs of the moment.

This concept advanced because many businesses operate in a home-office model and because hiring peaks during high-demand periods. To keep the business viable and costs under control, outsourcing services becomes a key option.

4 – Outsource IT services

Having an IT department aligned with the company’s goals—and that truly makes a difference for the business—requires dedication, good infrastructure, and highly qualified professionals.

Maintaining such a structure generates expenses that can impact results. In that sense, outsourcing IT may be the ideal alternative; you just need to understand the conditions involved and follow the process closely.

With the availability of cloud computing services, your business gains more processing and storage capacity, better backup security, and greater accessibility to business information.

Cloud-based services allow the company to pay only for what it uses, with access to data center structures and state-of-the-art computers to manage data. This increases IT’s potential and helps ensure that outsourcing produces a return on technology investment.

Want to learn more about how to turn your company into an exponential organization? Contact X-Apps!