organize for complexity - keynote by niels pflaeging at stretch leadership & management...
TRANSCRIPT
Stretch Leadership & Management Conference, Budapest, 09.12.2015
#stretchcon @NielsPflaeging
Culture
• Fixed, individual targets • Management by Objectives • Budgets and Plans • Performance Appraisal • Hierarchical Pressure • Pay by Position or Performance • Incentives and Bonuses • …
Formal part of value creation Solution: Machine
Dynamic part of value creation Solution: Man
high dynamics
Local markets, high customization
Sluggish/dull, low dynamics
high dynamics
Spacious markets, little competition
Local markets, high customization
Sluggish/dull, low dynamics
high dynamics
high dynamics
Spacious markets, little competition
“Outperformers” exercise market pressure over conventional companies
Local markets, high customization
Formal part of value creation Solution: Machine
Dynamic part of value creation Solution: Man
Sluggish/dull, low dynamics
high dynamics
high dynamics
Age of Crafts Manu- facturing
Industrial Age/ Age of
Tayloristic Industry
Age of Global Markets
1850/1900
Spacious markets, little competition
“Outperformers” exercise market pressure over conventional companies
Local markets, high customization
1970/80 today
Periphery
Market
Center
1 Impulse 4 Command
3 Decision
2 Information
5 Reaction
Center
Market
Periphery
Client
Is in charge!
1 Impulse 2 Decision
3 Reaction
Center
Market
Periphery
Client
Serves the periphery, if needed
Is in charge!
Transformación tipo 2: “Profundización“
Transformación tipo 1: “Burocratización“
Transformación tipo 3: “Transformación Beta“
Young organization Older organization
1. Start-up phase or “Pioneer phase“
2. Alpha phase or “Differentiation phase“
3. Beta phase or “Integration phase“
Transformación tipo 2: “Profundización“
Transformación tipo 1: “Burocratización“
Transformación tipo 3: “Transformación Beta“
Young organization Older organization
1. Start-up phase or “Pioneer phase“
2. Alpha phase or “Differentiation phase“
3. Beta phase or “Integration phase“
Transformación tipo 2: “Profundización“
Transformación tipo 1: “Burocratización“
Transformación tipo 3: “Transformación Beta“
Young organization Older organization
1. Start-up phase or “Pioneer phase“
2. Alpha phase or “Differentiation phase“
3. Beta phase or “Integration phase“
Transformación tipo 2: “Profundización“
Transformación tipo 1: “Burocratización“
Transformación tipo 3: “Transformación Beta“
Young organization Older organization
1. Start-up phase or “Pioneer phase“
2. Alpha phase or “Differentiation phase“
3. Beta phase or “Integration phase“
Type 2 transformation “Deepening“
Type 1 transformation: “Bureaucratization“
Type 3 transformation: “Beta Transformation“
Industry
Retail
Services
Government/ NGOs
It is possible.
Theory X Theory Y
People need to work and want to take an interest in it. Under right conditions, they enjoy it
People dislike work, find it boring, and will avoid it if they can
Attitude
Direction
Responsibility
Creativity
Motivation
People will direct themselves towards a target that they accept
People will seek and accept responsibility, under the right conditions
Under the right conditions, people are motivated by the desire to realize their own potential
Creativity and ingenuity are widely distributed and grossly underused
People must be forced or bribed to make the right effort
People would rather be directed than accept responsibility, (which they avoid)
People are motivated mainly by money and fears about their job security
Most people have little creativity - except when it comes to getting round rules
Behaviors
Context
Human Nature
”Meritocracy“
Budgeting Planning
Control of work hours Job Descriptions
Competencies Management
Incentives
Individual targets
Performance Appraisal/360°
Salary Ranges
Training budgets
Personnel Development
Org charts
Target negotiation
Holiday applications
”Personnel Expenses“
Suggestion boxes
Assessment Centers
Knowledge Management
Pay for Performance
Paid extra hours
Bonus Systems
Sales Quotas
Dress codes
Job titles
HR
Allocations
Cost Management
Plan-Actuals variances
Forecasting
MbO
Development Centers
Bosses/HR hire
Strategic Planning
Travel policies Jours fixes
Earnings Guidance
Matrix Structures
Key Accounting, Business Areas
Business Partners
SWOT Analysis …
Succession planning Flat structure
Flexible work hours
Casual Fridays
COO Rules
Supervision
Positions
Standard Costing
Investment planning
Employee Surveys
Sales Department
Reporting lines
Product management
Project management Milestones
• Fixed, individual targets • Management by Objectives • Budgets and Plans • Performance Appraisal • Hierarchical Pressure • Pay by Position or Performance • Incentives and Bonuses • …
• Transparency & Improvement • Comparisons between peers • Comparisons with previous periods • Dialog and Dissent • Social and group pressure • Pay by market value • Results Sharing • …
Low dynamics
High dynamics
Law Beta Alpha §§1 Freedom to act Connectedness not Dependency §2 Responsibility Cells not Departments §3 Governance Leadership not Management §4 Performance climate Result culture not Duty fulfillment §5 Success Fit not Maximization §6 Transparency Intelligence flow not Power accumulation §7 Orientation Relative Targets not Top-down prescription §8 Recognition Sharing not Incentives §9 Mental presence Preparedness not Planning §10 Decision-making Consequence not Bureaucracy §11 Resource usage Purpose-driven not Status-oriented §12 Coordination Market dynamics not Commands
Data Information Knowledge ?
Formal Structure
Informal Structure
Value Creation Structure
Compliance, Power Social Work/Value Creation
Formal Structure Informal Structure Value Creation Structure
Knowledge Age
Systemic, alive Integrated, team-based Work the work Outside-in, led With-each-other-for-each-other Complexity-robust
Industrial Age
Mechanistic, dead Differentiated, individualizing Work the people Top-down, managed In parallel, in line Efficiency-oriented
@NielsPflaeging nielspflaeging.com
organizeforcomplexity.com betacodex.org
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