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Regional Scrum Gathering Belgrade 2022
16.–17.11.2022
@NielsPflaeging www.redforty2.com
#BetaCodex
Organize for Complexity
How to create the highly decentralized,
networked cell structure organization.
Everywhere. Fast
Knowledge Age
Systemisch, lebendig
Systemic, alive, market-driven
Functionally integrated, team-based
Work the work!
Outside-in, led, socially dense
With-each-other-for-each-other
Decentralized, complexity-robust
Pluralistic & synthetic
Industrial Age
Mechanistic, dead, steering
Functionally divided, individualizing
Work the people!
Top-down, managed
In parallel, in line
Centralized, efficiency-oriented, stability-seeking
Monolithic & myopic
Knowledge Age
Systemisch, lebendig
Systemic, alive, market-driven
Functionally integrated, team-based
Work the work!
Outside-in, led, socially dense
With-each-other-for-each-other
Decentralized, complexity-robust
Pluralistic & synthetic
Industrial Age
Mechanistic, dead, steering
Functionally divided, individualizing
Work the people!
Top-down, managed
In parallel, in line
Centralized, efficiency-oriented, stability-seeking
Monolithic & myopic
Top
Bottom
Top
Bottom
Relationship
Individual
Outside
Inside
Informal Structure
Power: Influence
Value Creation Structure
Power: Reputation
Formal Structure
Power: Hierarchy
Informal Structure
Power: Influence
Value Creation Structure
Power: Reputation
Formal Structure
Power: Hierarchy
Knowledge Age
Systemisch, lebendig
Systemic, alive, market-driven
Functionally integrated, team-based
Work the work!
Outside-in, led, socially dense
With-each-other-for-each-other
Decentralized, complexity-robust
Pluralistic & synthetic
Industrial Age
Mechanistic, dead, steering
Functionally divided, individualizing
Work the people!
Top-down, managed
In parallel, in line
Centralized, efficiency-oriented, stability-seeking
Monolithic & myopic
Theory X Theory Y
Theory X
Attitude
Leadership
Responsibility
Creativity
Motivation
People dislike work,
find it boring,
and will avoid it if they can
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 around rules
Theory Y
Theory Y
Attitude
Leadership
Responsibility
Creativity
Motivation
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
People will direct themselves
towards a target that they accept
People will under the right conditions seek
and accept responsibility,
Under the right conditions, people are motivated
by the desire to fulfill 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 around rules
Theory X Theory Y
as
OKRs
Experiments
Agile Scaling
Agile Coaching
/Strategy
Recruiters
Culture
Knowledge Age
Systemisch, lebendig
Systemic, alive, market-driven
Functionally integrated, team-based
Work the work!
Outside-in, led, socially dense
With-each-other-for-each-other
Decentralized, complexity-robust
Pluralistic & synthetic
Industrial Age
Mechanistic, dead, steering
Functionally divided, individualizing
Work the people!
Top-down, managed
In parallel, in line
Centralized, efficiency-oriented, stability-seeking
Monolithic & myopic
Law BetaCodex (Do this!) AlphaCodex (Not that!)
§1 Team autonomy Connectedness with purpose, not dependency
§2 Federalization Integration into cells, not division into silos
§3 Leaderships Self-organization, not management
§4 All-around success Comprehensive fitness, not mono-maximization
§5 Transparency Flow intelligence, not power obstruction
§6 Market orientation Relative Targets, not top-down prescription
§7 Conditional income Participation, not incentives
§8 Presence of mind Preparation, not planned economy
§9 Rhythm Tact & groove, not fiscal-year orientation
§10 Mastery-based decision Consequence, not bureaucracy
§11 Resource discipline Expedience, not status-orientation
§12 Flow coordination Value-creation dynamics, not static allocations
The BetaCodex – version 2018 - www.BetaCodex.org
accountable
aim
align(ment)
allocate
appraise
bonus
boss
break down
budget
business area
competence
convince
COO
comfort zones
culture change
department
direct
direct reports
drive
empower
engage
extra mile
force
forecast
front-line
goals
hard skills
head of
headcount
high performer
high potential
hit
incentivize
inspire
journey
key
key account
kick off
lead
leader
leverage
line
low performer
manage
maturity
milestones
mindset
mission
motivate
north star
operations/operational
oversight
plan
present
purpose
rank
roll out
sales
scale
soft skills
star
strategy/strategic
status quo
product mix
synergy
Talent
unlearn
vision
win
…
Change
management
Change-
as-flipping
Now
New
Now
New
Now
New
Now
New
Agile = Self-organized.
No more, no less. If you do not achieve consistent self-organization,
then it’s not agility at all! Beta is the way to define the
DNA of highly self-organized companies.
Your people are not the problem.
Your organizational system is. People are always the solution.
Systems drive behavior.
It’s not the other way ´round.
We have to stop working
the people, and start working
organizational models, or systems.
The radically decentralized “peach“
model of organizing is not an option.
It is a necessity, due to complexity.
Regional Scrum Gathering Belgrade 2022
16.–17.11.2022
@NielsPflaeging www.redforty2.com
#BetaCodex
Organize for Complexity
How to create the highly decentralized,
networked cell structure organization.
Everywhere. Fast

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Organize for Complexity - Keynote by Niels Pflaeging at Regional Scrum Gathering 2022 (Belgrade/Serbia)

  • 1. Regional Scrum Gathering Belgrade 2022 16.–17.11.2022 @NielsPflaeging www.redforty2.com #BetaCodex Organize for Complexity How to create the highly decentralized, networked cell structure organization. Everywhere. Fast
  • 2.
  • 3. Knowledge Age Systemisch, lebendig Systemic, alive, market-driven Functionally integrated, team-based Work the work! Outside-in, led, socially dense With-each-other-for-each-other Decentralized, complexity-robust Pluralistic & synthetic Industrial Age Mechanistic, dead, steering Functionally divided, individualizing Work the people! Top-down, managed In parallel, in line Centralized, efficiency-oriented, stability-seeking Monolithic & myopic
  • 4.
  • 5. Knowledge Age Systemisch, lebendig Systemic, alive, market-driven Functionally integrated, team-based Work the work! Outside-in, led, socially dense With-each-other-for-each-other Decentralized, complexity-robust Pluralistic & synthetic Industrial Age Mechanistic, dead, steering Functionally divided, individualizing Work the people! Top-down, managed In parallel, in line Centralized, efficiency-oriented, stability-seeking Monolithic & myopic
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 18. Informal Structure Power: Influence Value Creation Structure Power: Reputation Formal Structure Power: Hierarchy
  • 19. Informal Structure Power: Influence Value Creation Structure Power: Reputation Formal Structure Power: Hierarchy
  • 20. Knowledge Age Systemisch, lebendig Systemic, alive, market-driven Functionally integrated, team-based Work the work! Outside-in, led, socially dense With-each-other-for-each-other Decentralized, complexity-robust Pluralistic & synthetic Industrial Age Mechanistic, dead, steering Functionally divided, individualizing Work the people! Top-down, managed In parallel, in line Centralized, efficiency-oriented, stability-seeking Monolithic & myopic
  • 22. Theory X Attitude Leadership Responsibility Creativity Motivation People dislike work, find it boring, and will avoid it if they can 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 around rules Theory Y
  • 23. Theory Y Attitude Leadership Responsibility Creativity Motivation 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 People will direct themselves towards a target that they accept People will under the right conditions seek and accept responsibility, Under the right conditions, people are motivated by the desire to fulfill 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 around rules Theory X Theory Y
  • 24.
  • 25.
  • 28. Knowledge Age Systemisch, lebendig Systemic, alive, market-driven Functionally integrated, team-based Work the work! Outside-in, led, socially dense With-each-other-for-each-other Decentralized, complexity-robust Pluralistic & synthetic Industrial Age Mechanistic, dead, steering Functionally divided, individualizing Work the people! Top-down, managed In parallel, in line Centralized, efficiency-oriented, stability-seeking Monolithic & myopic
  • 29. Law BetaCodex (Do this!) AlphaCodex (Not that!) §1 Team autonomy Connectedness with purpose, not dependency §2 Federalization Integration into cells, not division into silos §3 Leaderships Self-organization, not management §4 All-around success Comprehensive fitness, not mono-maximization §5 Transparency Flow intelligence, not power obstruction §6 Market orientation Relative Targets, not top-down prescription §7 Conditional income Participation, not incentives §8 Presence of mind Preparation, not planned economy §9 Rhythm Tact & groove, not fiscal-year orientation §10 Mastery-based decision Consequence, not bureaucracy §11 Resource discipline Expedience, not status-orientation §12 Flow coordination Value-creation dynamics, not static allocations The BetaCodex – version 2018 - www.BetaCodex.org
  • 30. accountable aim align(ment) allocate appraise bonus boss break down budget business area competence convince COO comfort zones culture change department direct direct reports drive empower engage extra mile force forecast front-line goals hard skills head of headcount high performer high potential hit incentivize inspire journey key key account kick off lead leader leverage line low performer manage maturity milestones mindset mission motivate north star operations/operational oversight plan present purpose rank roll out sales scale soft skills star strategy/strategic status quo product mix synergy Talent unlearn vision win …
  • 32.
  • 35.
  • 36. Agile = Self-organized. No more, no less. If you do not achieve consistent self-organization, then it’s not agility at all! Beta is the way to define the DNA of highly self-organized companies. Your people are not the problem. Your organizational system is. People are always the solution. Systems drive behavior. It’s not the other way ´round. We have to stop working the people, and start working organizational models, or systems. The radically decentralized “peach“ model of organizing is not an option. It is a necessity, due to complexity.
  • 37.
  • 38. Regional Scrum Gathering Belgrade 2022 16.–17.11.2022 @NielsPflaeging www.redforty2.com #BetaCodex Organize for Complexity How to create the highly decentralized, networked cell structure organization. Everywhere. Fast