Complexity Management
through
Structural Change ©
By Alfonso Cornejo
Author of the Book
Complexity and Chaos:
A Guide for XXI Century Management

Structure-Process
Model
some characteristics
September 2007 Alfonso Cornejo CM~SC © 2

Environment
Environment
Structures Processes
Struct Proc
System frontier
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Some Structure-Process Model
principles
• You can use S-P Model as a tool to
understand organizational behavior
• Processes (behaviors) are structures in
movement
• Complex organizational behaviors are the
result of structures and its interactions
• Responsibility of managers is to create
structures for the emergence of
fundamental processes: Operation,
Maintenance, Learning, Adaptation and
Growth (a systemic perspective for
viability).
September 2007 Alfonso Cornejo CM~SC © 4

Some Structure-Process Model
principles
• If leaders want to create a lasting change
over organizational behaviors, they must
change structures
• Based on a systemic perspective,
Structures are present at different
levels:
– Organizational
– Cultural
– Groups / Teams
– Individual
September 2007 Alfonso Cornejo CM~SC © 5

Some Structure-Process Model
principles
• Working with S-P Model is also a Design
perspective: Every organization is
perfectly designed to the results it gets.
• Time and absence of structure care
(towards fundamental processes) could
carry system degradation and as a result
ineffective and inefficient processes
(complexity increase and that derives in
organizational entropy).
September 2007 Alfonso Cornejo CM~SC © 6

Some Structure-Process Model
principles
• Organizations must maintain a dynamic
balance between its components to reach
synergy and to cope effectively to
environment
• Organizations must use resources
efficiently and justified by assignation
to support fundamental processes.
• Increasingly organizational complexity
means and increase of resources
• Organizational structure should reflect
its learning over time.
September 2007 Alfonso Cornejo CM~SC © 7

Structure and Process Model
and its interactions
4 16
13
11 6
10
7 9
S P
E P
1 3
8
5 12
15 14
2
September 2007 Alfonso Cornejo CM~SC © 8

Structure and Process Model
and its interactions
1.- Structures
2.- Structures that generate processes
3.- Processes
4.- Processes that affect Structures
5.- Structures that influence Cultural Processes
6.- Processes that affect Cultural Structures
7.- Cultural Structures
8.- Cultural Structures that generate Cultural Processes
9.- Cultural Processes
10.- Cultural Processes that affect Cultural Structures
11.- Cultural Processes that affect Structures
12.- Cultural Structures that influence Processes
13.- Structures that influence environment processes
14.- Processes that affect environment structures
15.- Environment Processes that affect Structures
16.- Processes that affect environment Structures
September 2007 Alfonso Cornejo CM~SC © 9

Fundamental
Processes:
ACrOMA
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The need of Fundamental
Processes
We need to create, modify and
align organizational structures
… but what kind of processes
should organizations maintain in
order to survive and success in
a turbulent and increasingly
demanding environment?
September 2007 Alfonso Cornejo CM~SC © 11

ACrOMA
• Adaptación: Adaptation
• Crecimiento: Growth
• Operación: Operation
• Mantenimiento: Maintenance
• Aprendizaje: Learning
September 2007 Alfonso Cornejo CM~SC © 12

Five Fundamental Processes
1. Adaptation
D
Organizational evolution.
Indicators and mechanisms
to ear the weakest
environment changes and
transform them in changes
on inner structure in
order to fit to
accordingly to
environment.
t
September 2007 Alfonso Cornejo CM~SC © 13

Five Fundamental Processes
2. Growth
D
Quantitative business
increase: Ordered,
balanced and stable in
size, systems and
departments but obeying
market size
participation. New
entities creation
capitalizing learning.
t
September 2007 Alfonso Cornejo CM~SC © 14

Five Fundamental Processes
3. Operation
D
Fundamental transformation
from raw materials to
finished goods. Support
activities (direct and
indirect) to reach the
fundamental business
transformation. Value
added generation from
organization to society.
t
September 2007 Alfonso Cornejo CM~SC © 15

Five Fundamental Processes
4. Maintenance
D
Caring of components and
systems performance state.
Homeostasis. Wear off
repairing over operation
components. Ensuring
optimal system operation.
t
September 2007 Alfonso Cornejo CM~SC © 16

Five Fundamental Processes
5. Learning
D
Knowledge and experience
acquired and its use over
vital systems for
organizational
performance. Level in
which organization make
of every event an
opportunity to improve
performance.
t
September 2007 Alfonso Cornejo CM~SC © 17

Effective
Structural
Change
September 2007 Alfonso Cornejo CM~SC © 18

Most transformation programs satisfy
themselves with shifting the same
old furniture about in the same old
room. Some seek to throw some of the
furniture away. But real
transformation requires that we
redesign the room itself. Perhaps
even blow up the old room. It
requires that we change the thinking
behind our thinking—literally, that
we learn to rewire our corporate
brains.
Danah Zohar
Rewiring the Corporate Brain
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Learning imply
Structural Change
-
Structural Change
Imply Learning
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Leadership and
its impact to
Organizational
Structures
September 2007 Alfonso Cornejo CM~SC © 21

Leader contribute to
Structure the Organization
Environment
Environment
Structures Processes
Struct Proc
System frontier
Leaders have the power (conscious or unconscious) to
modify organization through structural change,
although we have never consider it in this way.
September 2007 Alfonso Cornejo CM~SC © 22

New Leader s Role
• Observant of organization structures to
ensure that they can support fundamental
processes
• Live processes that can create the right
values (structures) to establish behavior
patterns to individual and groups
• Carefully observes Culture and ensure
positive effect in people
• Help to create or modify structures in
order to facilitate the fundamental
processes
September 2007 Alfonso Cornejo CM~SC © 23

Velvet globe but with an
Iron Hand
Leaders without authority permit gradual
degradation of structures that matter
most to organization.
To put it Simply…he is allowing
structural modification by any person,
but in a direction not congruent with
organizational structures (vision,
mission, values)
Leaders always need to be caring about
organizational structures, and their
best indicators are people behavior.
September 2007 Alfonso Cornejo CM~SC © 24

If You Build It (S),
P
They Will Come (P)
September 2007 Alfonso Cornejo CM~SC © 25

The Book
Complejidad y Caos: Guía para la
Administración del Siglo XXI
Complexity and Chaos: Guide for XXI Century
Management
You can download or read the book here:
www.structural-change.com
http://www.eumed.net/cursecon/libreria/2004/aca/aca.htm
September 2007 Alfonso Cornejo CM~SC © 26

Alfonso Cornejo
tektology@yahoo.com
www.structural-change.com
www.structural-change.jimdo.com
September 2007 Alfonso Cornejo CM~SC © 27