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Complexity and Structural Change 2

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Some ideas that appear in the Book "Complexity and Chaos", that describes some principles for Organizational Complexity Management based on the Structure-Process Model.

Some ideas that appear in the Book "Complexity and Chaos", that describes some principles for Organizational Complexity Management based on the Structure-Process Model.

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  • 1. Complexity Management through Structural Change © By Alfonso Cornejo Author of the Book Complexity and Chaos: A Guide for XXI Century Management
  • 2. Structure-Process Model some characteristics September 2007 Alfonso Cornejo CM~SC © 2
  • 3. Environment Environment Structures Processes Struct Proc System frontier September 2007 Alfonso Cornejo CM~SC © 3
  • 4. 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
  • 5. 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
  • 6. 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
  • 7. 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
  • 8. 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
  • 9. 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
  • 10. Fundamental Processes: ACrOMA September 2007 Alfonso Cornejo CM~SC © 10
  • 11. 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
  • 12. ACrOMA • Adaptación: Adaptation • Crecimiento: Growth • Operación: Operation • Mantenimiento: Maintenance • Aprendizaje: Learning September 2007 Alfonso Cornejo CM~SC © 12
  • 13. 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
  • 14. 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
  • 15. 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
  • 16. 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
  • 17. 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
  • 18. Effective Structural Change September 2007 Alfonso Cornejo CM~SC © 18
  • 19. 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 September 2007 Alfonso Cornejo CM~SC © 19
  • 20. Learning imply Structural Change - Structural Change Imply Learning September 2007 Alfonso Cornejo CM~SC © 20
  • 21. Leadership and its impact to Organizational Structures September 2007 Alfonso Cornejo CM~SC © 21
  • 22. 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
  • 23. 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
  • 24. 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
  • 25. If You Build It (S), P They Will Come (P) September 2007 Alfonso Cornejo CM~SC © 25
  • 26. 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
  • 27. Alfonso Cornejo tektology@yahoo.com www.structural-change.com www.structural-change.jimdo.com September 2007 Alfonso Cornejo CM~SC © 27

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