This document discusses organizational transformation and different phases of an organization's development. It begins with a matrix that places different types of organizations in sectors based on their level of dynamism and market characteristics. The rest of the document then discusses various models of organizational structure, culture, value creation, and transformation, contrasting traditional hierarchical and bureaucratic approaches with more adaptive approaches oriented around social networks, purpose, and complexity. It advocates an approach focused on connectedness, responsibility, leadership instead of management, and other principles outlined in the "Beta Codex".

1. Antwerp, 09.12.2014
Dare Festival
@NielsPflaeging
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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

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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

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Indústry
Retail
Servicies
Government/
NGOs
It is possible.

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Periphery
Market
Center

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1 Impulse
4 Command
3 Decision
2 Information
5 Reaction
Center
Market
Periphery
Client
Is in
charge!

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1 Impulse
2 Decision
3 Reaction
Center
Market
Periphery
Client
Serves the
periphery,
if needed
Is in
charge!

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• 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
• …

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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

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22. Under the right conditions, people are motivated
by the desire to realize their own potential
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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

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Behaviors
Context
Human
Nature

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”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

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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

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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

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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

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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

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Culture

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Formal Structure

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Informal Structure

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Value Creation Structure

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Compliance, Power Social Work/Value Creation
Formal Structure Informal Structure Value Creation Structure

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www.organizeforcomplexity.com

39. 39
@NielsPflaeging
nielspflaeging.com
organizeforcomplexity.com
betacodex.org
slideshare.net/npflaeging