What is DXO that Turns into an Evolutionary Organization?

This time, I introduce the core of Tebanasu Management Laboratory, DXO.
What is DXO, this unfamiliar name? Since around 2020, the two letters “DX” have become increasingly common in Japan as an abbreviation for digital transformation. But DXO has an “O” at the end. According to the DXO website:

“Design x Organization”
DX: Utilizing Digital Transformation,
D: Decentralized autonomous
O: Organization

While the commonly heard DX is about improving company efficiency with digital tools, DXO is about changing organizational relationships with digital tools.

Today, I will introduce this DXO in the following steps

1. Why DXO is the core of the lab
2. DXO as a mechanism for becoming an evolutionary organization
3. What happens when you install DXO

1. Why DXO is the core of the lab

I think it’s because DXO very well represents the lab’s WWH. The lab’s WWH (management philosophy) is “To awaken the world cheerfully, we weave differences between workers and organizations in a more interesting, slightly quirky way.” And through DXO, the main source person of weaving these organizational differences is, well, quite interesting and a bit quirky. Here’s a real photo (not edited) of him living with a real traditional topknot hairstyle!

“Hey, who decided that company dress codes have to be suits and dress shirts? Why do women have to wear makeup? Why can’t we work with our natural faces?” These questions challenge us. You might wonder if DXO is okay with such a quirky approach, but what they do is very serious, which unexpectedly earns respect. From here, I’d like you to be surprised by the serious content of DXO provided by this seemingly quirky source.

2. DXO as a mechanism for becoming an evolutionary organization

DXO is said to be systematized by Hirozo Takei, who has been practicing Teal organizations and decentralized autonomous management in Japan for over 17 years, combining his insights as a management enthusiast.
With many unfamiliar terms, let’s once again organize these words and their relationships.

In short, “evolution” in an evolutionary organization refers not to something that becomes outdated over time like the latest management styles or evolved organizational theories advertised, but to an organizational structure that can flexibly adapt over time and to circumstances, like flora and fauna in nature.
And at its faundation is first loosening the organization into a natural state (Being | Natural Management). Then, reassembling the organization anew (Doing | Holacracy). This naturally brings out the wholeness of the organization, and each individual sets the direction for their evolution and management purpose (Having | Teal Organization).
DXO supports the Being and Doing of an evolutionary organization to become Having.

Regarding the final stage of Teal, I’m not that knowledgeable, but the Tebanasu lab’s site features a detailed discussion with Kenshu Kamura, who provided the Japanese commentary for the book “Reinventing Organizations” ,” Mr.Nui from DXO source, Take-chan who created the natural management foundational to DXO, and Ban-chan, the lab’s founder. Here is an excerpt:

Often, when asked to “introduce the company,” people only explain the mechanisms of a Teal organization, but that doesn’t fit Frederick’s (author of “Reinventing Organizations”) definition of Teal. Because the people in the overseas examples listed in the book never call their organizations Teal organizations. They say, “By doing this, our customers and this region will become wonderful.” That’s the world they aim for. That’s primary.

Organizations are narrowed down to those that simultaneously have an “existential purpose” and a “wish to engage with people humanely.”

It might feel like Teal organizations are a narrow path. While many companies have an “existential purpose,” creating the latter state of “engaging with people humanely” within a company seems quite difficult.
As participants, it’s hard to recognize the current situation and transform effectively. That’s why companies have consultants, and individuals have mentors. In the lab, DXO is viewed as an application, and it’s expressed as “installing” DXO in the organization. Through the process of installing DXO, it stimulates the organization’s wish to engage with people humanely. What changes occur in the organization then?

3. What happens when you install DXO

Here is an example of a company after installing DXO.

If revenue increases by 1.4% and salaries and bonuses rise by more than 15%, both the company and its employees would be delighted! What kind of mechanism is this DXO installed with?
What kind of magic does the topknot samurai possess?
The content of such DXO will be explained in the next part.