Organize for Complexity - Keynote by Niels Pflaeging at Spark the Change (Toronto/CA)

1. SparktheChange Toronto,09.06.2016 @NielsPflaeging willbecomeagile,radicallydecentralized Howourorganizations andnetworked.Soonerthanwethink

2. Complexityisliketheweather.

4. Culture

10. •  Fixed,individualtargets •  ManagementbyObjectives •  BudgetsandPlans •  PerformanceAppraisal •  HierarchicalPressure •  PaybyPositionorPerformance •  IncentivesandBonuses •  …

11. Dynamicpartof valuecreation Solution:Man Formalpartof valuecreation Solution:Machine

12. Localmarkets, highcustomization high dynamics

13. Localmarkets, highcustomization Spaciousmarkets, littlecompetition Sluggish/dull, lowdynamics high dynamics

14. “Outperformers”exercise marketpressureover conventionalcompanies Localmarkets, highcustomization Spaciousmarkets, littlecompetition Sluggish/dull, lowdynamics high dynamics high dynamics

15. “Outperformers”exercise marketpressureover conventionalcompanies Localmarkets, highcustomization Spaciousmarkets, littlecompetition Sluggish/dull, lowdynamics high dynamics high dynamics Dynamicpartof valuecreation Solution:Man Ageof CraftsManu- facturing Ageof Global Markets IndustrialAge/ Ageof TayloristicIndustry Formalpartof valuecreation Solution: Machine 1970/80today 1850/1900

17. Market Periphery Center

18. Market Periphery Center Isin charge! 3Decision 2Information 1Impulse 4Command 5Reaction Client

19. Market Periphery Center Servesthe periphery, ifneeded Isin charge! 2Decision 1Impulse 3Reaction Client

22. 3.Fase„beta“ o“fasedeintegración“ 1.Start-upphase or“Pioneerphase“ Transformacióntipo2: “Profundización“ Transformacióntipo1: “Burocratización“ Transformacióntipo3: “TransformaciónBeta“ 2.Fase„alpha“ o“fasedediferenciación“ Youngorganization Olderorganization

23. 3.Fase„beta“ o“fasedeintegración“ 1.Start-upphase or“Pioneerphase“ Transformacióntipo2: “Profundización“ Transformacióntipo1: “Burocratización“ Transformacióntipo3: “TransformaciónBeta“ 2.Alphaphase or“Differentiationphase“ Youngorganization Olderorganization

24. 3.Betaphase or“Integrationphase“ 1.Start-upphase or“Pioneerphase“ Transformacióntipo2: “Profundización“ Transformacióntipo1: “Burocratización“ Transformacióntipo3: “TransformaciónBeta“ 2.Alphaphase or“Differentiationphase“ Youngorganization Olderorganization

25. 3.Betaphase or“Integrationphase“ 1.Start-upphase or“Pioneerphase“ Type2transformation “Deepening“ Type1transformation: “Bureaucratization“ Type3transformation: “BetaTransformation“ 2.Alphaphase or“Differentiationphase“ Youngorganization Olderorganization

26. Indústry Retail Itispossible. Servicies Government/ NGOs

27. TheoryY TheoryX Attitude Peopledislikework, Peopleneedtoworkandwanttotakeaninterest init.Underrightconditions,theyenjoyit Direction Peoplewilldirectthemselves towardsatargetthattheyaccept tomaketherighteffort finditboring,andwillavoiditiftheycan Peoplemustbeforcedorbribed Responsibility Peoplewillseekandacceptresponsibility, undertherightconditions Peoplewouldratherbedirectedthanaccept responsibility, (whichtheyavoid) Motivation Undertherightconditions,peoplearemotivated bythedesiretorealizetheirownpotential Peoplearemotivatedmainlybymoney andfearsabouttheirjobsecurity Creativity Mostpeoplehavelittlecreativity-except whenitcomestogettingroundrules Creativityandingenuityarewidelydistributed andgrosslyunderused

28. Behaviors Context Human Nature

30. … SWOTAnalysis Dresscodes Orgcharts Plan-Actualsvariances PerformanceAppraisal/360° StrategicPlanning BusinessPartners ”Meritocracy“ BudgetingPlanning HR KeyAccounting,BusinessAreas Holidayapplications Paidextrahours CostManagement SalesQuotas Incentives Individualtargets Targetnegotiation Jobtitles Controlofworkhours JobDescriptions PayforPerformance Travelpolicies MbO Bosseshire Joursfixes Bonuses SalaryRanges EarningsGuidance CompetenciesManagement Suggestionboxes Allocations MatrixStructures KnowledgeManagement Trainingbudgets PersonnelDevelopment DevelopmentCenters Forecasting ”PersonnelExpenses“ AssessmentCenters

31. •  Transparency&Improvement •  Comparisonsbetweenpeers •  Comparisonswithpreviousperiods •  DialogandDissent •  Socialandgrouppressure •  Paybymarketvalue •  ResultsSharing •  … Highdynamics •  Fixed,individualtargets •  ManagementbyObjectives •  BudgetsandPlans •  PerformanceAppraisal •  HierarchicalPressure •  PaybyPositionorPerformance •  IncentivesandBonuses •  … Lowdynamics

32. Law §§1Freedomtoact §2Responsibility §3Governance §4PerformanceclimateResultculture §5Success §6Transparency §7Orientation §8Recognition §9Mentalpresence §10Decision-making §11Resourceusage §12Coordination Beta Connectedness Cells Leadership Alpha notDependency notDepartments notManagement notDutyfulfillment notMaximization notPoweraccumulation notTop-downprescription notIncentives notPlanning notBureaucracy notStatus-oriented notCommands Fit Intelligenceflow RelativeTargets Sharing Preparedness Consequence Purpose-driven Marketdynamics

34. Information Data Knowledge ?

35. FormalStructure

36. InformalStructure

37. ValueCreationStructure

38. Compliance,Power Social Work/ValueCreation FormalStructure InformalStructure ValueCreationStructure

39. IndustrialAge Mechanistic,dead Differentiated,individualizing Workthepeople Top-down,managed Inparallel,inline Efficiency-oriented KnowledgeAge Systemic,alive Integrated,team-based Workthework Outside-in,led With-each-other-for-each-other Complexity-robust

40. @NielsPflaeging nielspflaeging.com organizeforcomplexity.com betacodex.org slideshare.net/npflaeging willbecomeagile,radicallydecentralized Howourorganizations andnetworked.Soonerthanwethink