SlideShare a Scribd company logo
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Antwerp, 09.12.2014 
Dare Festival 
@NielsPflaeging 
1
2
3
4
5 
Local markets, 
high customization 
high 
dynamics
6 
Sluggish/dull, 
low dynamics 
high 
dynamics 
Spacious markets, 
little competition 
Local markets, 
high customization
7 
Sluggish/dull, 
low dynamics 
high 
dynamics 
high 
dynamics 
Spacious markets, 
little competition 
“Outperformers” exercise 
market pressure over 
conventional companies 
Local markets, 
high customization
8
9 
Dynamic part of 
value creation 
Solution: Man 
Formal part of 
value creation 
Solution: Machine
10 
Dynamic part of 
value creation 
Solution: Man 
Formal part of 
value creation 
Solution: 
Machine 
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
11
12
13
14 
Indústry 
Retail 
Servicies 
Government/ 
NGOs 
It is possible.
15 
Periphery 
Market 
Center
16 
1 Impulse 
4 Command 
3 Decision 
2 Information 
5 Reaction 
Center 
Market 
Periphery 
Client 
Is in 
charge!
17 
1 Impulse 
2 Decision 
3 Reaction 
Center 
Market 
Periphery 
Client 
Serves the 
periphery, 
if needed 
Is in 
charge!
18
19 
• Transparency & Improvement 
• Comparisons between peers 
• Comparisons with previous periods 
• Dialog and Dissent 
• Social and group pressure 
• Pay by market value 
• Results Sharing 
• … 
• Fixed, individual targets 
• Management by Objectives 
• Budgets and Plans 
• Performance Appraisal 
• Hierarchical Pressure 
• Pay by Position or Performance 
• Incentives and Bonuses 
• …
20 
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
21
Under the right conditions, people are motivated 
by the desire to realize their own potential 
22 
Theory X Theory Y 
Attitude 
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 
Direction 
People will direct themselves 
towards a target that they accept 
Responsibility 
People will seek and accept responsibility, 
under the right conditions 
Motivation 
Creativity 
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
23 
Behaviors 
Context 
Human 
Nature
24
25 
”Meritocracy“ 
Org charts 
Budgeting Planning 
Forecasting 
Control of work hours 
Job Descriptions 
Travel policies 
Competencies Management 
Holiday applications 
Performance Appraisal/360° 
Incentives 
Individual targets 
Salary ranges 
Training budgets 
Personnel Development 
Target negotiation 
”Personnel Expenses“ 
Suggestion boxes 
Assessment Centers 
Knowledge Management 
Pay for Performance 
Paid extra hours 
Bonuses 
Sales quotas 
Dress codes 
Job titles 
HR 
Allocations 
Cost Management 
Plan-Actual variances 
Forecasting 
MbO 
Strategic planning 
Jours fixes 
SWOT analysis 
Earnings guidance
26
27 
3. Fase „beta“ 
o “fase de integración“ 
Transformación tipo 2: 
“Profundización“ 
2. Fase „alpha“ 
1. Start-up phase 
or “Pioneer phase “ 
Transformación tipo 1: 
“Burocratización“ 
Transformación tipo 3: 
“Transformación Beta“ 
o “fase de diferenciación“ 
Young organization Older organization
28 
3. Fase „beta“ 
o “fase de integración“ 
Transformación tipo 2: 
“Profundización“ 
1. Start-up phase 
or “Pioneer phase “ 
Transformación tipo 1: 
“Burocratización“ 
Transformación tipo 3: 
“Transformación Beta“ 
2. Alpha phase 
or “Differentiation phase“ 
Young organization Older organization
29 
Transformación tipo 2: 
“Profundización“ 
1. Start-up phase 
or “Pioneer phase “ 
Transformación tipo 1: 
“Burocratización“ 
3. Beta phase 
or “Integration phase“ 
Transformación tipo 3: 
“Transformación Beta“ 
2. Alpha phase 
or “Differentiation phase“ 
Young organization Older organization
30 
1. Start-up phase 
or “Pioneer phase “ 
Type 2 transformation 
“Deepening“ 
2. Alpha phase 
Type 1 transformation: 
“Bureaucratization“ 
Type 3 transformation: 
“Beta Transformation“ 
or “Differentiation phase“ 
3. Beta phase 
or “Integration phase“ 
Young organization Older organization
31 
Culture
32 
Formal Structure
33 
Informal Structure
34 
Value Creation Structure
35 
Compliance, Power Social Work/Value Creation 
Formal Structure Informal Structure Value Creation Structure
36
37
38 
www.organizeforcomplexity.com
39 
@NielsPflaeging 
nielspflaeging.com 
organizeforcomplexity.com 
betacodex.org 
slideshare.net/npflaeging

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Organize for Complexity - keynote at Dare Festival 2014 (Antwerp/BE)

  • 1. Antwerp, 09.12.2014 Dare Festival @NielsPflaeging 1
  • 2. 2
  • 3. 3
  • 4. 4
  • 5. 5 Local markets, high customization high dynamics
  • 6. 6 Sluggish/dull, low dynamics high dynamics Spacious markets, little competition Local markets, high customization
  • 7. 7 Sluggish/dull, low dynamics high dynamics high dynamics Spacious markets, little competition “Outperformers” exercise market pressure over conventional companies Local markets, high customization
  • 8. 8
  • 9. 9 Dynamic part of value creation Solution: Man Formal part of value creation Solution: Machine
  • 10. 10 Dynamic part of value creation Solution: Man Formal part of value creation Solution: Machine 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
  • 11. 11
  • 12. 12
  • 13. 13
  • 14. 14 Indústry Retail Servicies Government/ NGOs It is possible.
  • 16. 16 1 Impulse 4 Command 3 Decision 2 Information 5 Reaction Center Market Periphery Client Is in charge!
  • 17. 17 1 Impulse 2 Decision 3 Reaction Center Market Periphery Client Serves the periphery, if needed Is in charge!
  • 18. 18
  • 19. 19 • Transparency & Improvement • Comparisons between peers • Comparisons with previous periods • Dialog and Dissent • Social and group pressure • Pay by market value • Results Sharing • … • Fixed, individual targets • Management by Objectives • Budgets and Plans • Performance Appraisal • Hierarchical Pressure • Pay by Position or Performance • Incentives and Bonuses • …
  • 20. 20 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
  • 21. 21
  • 22. Under the right conditions, people are motivated by the desire to realize their own potential 22 Theory X Theory Y Attitude 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 Direction People will direct themselves towards a target that they accept Responsibility People will seek and accept responsibility, under the right conditions Motivation Creativity 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
  • 23. 23 Behaviors Context Human Nature
  • 24. 24
  • 25. 25 ”Meritocracy“ Org charts Budgeting Planning Forecasting Control of work hours Job Descriptions Travel policies Competencies Management Holiday applications Performance Appraisal/360° Incentives Individual targets Salary ranges Training budgets Personnel Development Target negotiation ”Personnel Expenses“ Suggestion boxes Assessment Centers Knowledge Management Pay for Performance Paid extra hours Bonuses Sales quotas Dress codes Job titles HR Allocations Cost Management Plan-Actual variances Forecasting MbO Strategic planning Jours fixes SWOT analysis Earnings guidance
  • 26. 26
  • 27. 27 3. Fase „beta“ o “fase de integración“ Transformación tipo 2: “Profundización“ 2. Fase „alpha“ 1. Start-up phase or “Pioneer phase “ Transformación tipo 1: “Burocratización“ Transformación tipo 3: “Transformación Beta“ o “fase de diferenciación“ Young organization Older organization
  • 28. 28 3. Fase „beta“ o “fase de integración“ Transformación tipo 2: “Profundización“ 1. Start-up phase or “Pioneer phase “ Transformación tipo 1: “Burocratización“ Transformación tipo 3: “Transformación Beta“ 2. Alpha phase or “Differentiation phase“ Young organization Older organization
  • 29. 29 Transformación tipo 2: “Profundización“ 1. Start-up phase or “Pioneer phase “ Transformación tipo 1: “Burocratización“ 3. Beta phase or “Integration phase“ Transformación tipo 3: “Transformación Beta“ 2. Alpha phase or “Differentiation phase“ Young organization Older organization
  • 30. 30 1. Start-up phase or “Pioneer phase “ Type 2 transformation “Deepening“ 2. Alpha phase Type 1 transformation: “Bureaucratization“ Type 3 transformation: “Beta Transformation“ or “Differentiation phase“ 3. Beta phase or “Integration phase“ Young organization Older organization
  • 34. 34 Value Creation Structure
  • 35. 35 Compliance, Power Social Work/Value Creation Formal Structure Informal Structure Value Creation Structure
  • 36. 36
  • 37. 37
  • 39. 39 @NielsPflaeging nielspflaeging.com organizeforcomplexity.com betacodex.org slideshare.net/npflaeging