What Is an Exponential Organization?

Any company designed for success in the 20th century is doomed to failure in the 21st.

– David Rose

A new breed of business proven to be capable of unlocking the abundance provided by emerging technologies and readily adaptable to a rapidly changing business environment has emerged. These companies have been coined Exponential Organizations for their ability to grow 10 times (10x) as fast as traditional organizations.

Salim Ismail's best-selling Exponential Organizations launched the global ExO movement. In it, he offers the following definition:

An Exponential Organization (ExO) is one whose impact (or output) is disproportionately large—at least 10x larger—compared to its peers because of the use of new organization techniques that leverage accelerating technologies.

After studying ExOs for several years, Ismail distilled their characteristics into 11 components, which today comprise the ExO model. This model provides a structure for understanding how to recognize and adapt to the ExO age and ultimately become a leader in it.

What does an Exponential Organization look like? Classic examples include Amazon, Google, Airbnb, Uber, Facebook, and Skype. ExOs are transforming industries across the board, from manufacturing to retail to services—even philanthropy.

The ExO model allows organizations to adapt to the changes brought about by the Fourth Industrial Revolution, since ExOs are built to capitalize on accelerating technologies. Exponential ...

Get Exponential Transformation now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.