Presentation slides for paper of same title. Presentation was given at VDA Automotive SYS Conference, Berlin, July 2016

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© KUGLER MAAG CIE GmbH
You can teach old
dogs new tricks
An agile company is a
living organisation
VDA Sys 2016, Berlin
Hans-Jürgen Kugler, Bhaskar Vanamali
Kugler Maag Cie
• Processes in International
Context (2013)
• Evolution and Processes
(2014)

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• Background
• Why this paper
• Software drives – and it accelerates
• Living systems
• Eco-systems
• Organisms
• Patterns of organising
• The future of organisations - beyond agile
Topics

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About Kugler Maag Cie:
We help organizations to
develop, especially those
in “traditional industries”
whose products have been
“infected by software.”
https://upload.wikimedia.org/wikipedia/commons/c/cd/Auto_scrapyard_1.jpg
https://upload.wikimedia.org/wikipedia/commons/c/cd/Auto_scrapyard_1.jpg

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car merges into the
Internet of Things
software car – 100 mio. LOC
car with software

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The 1:1 Single Transaction
Model becomes a N:M
Lifetime Sales Model
Product Business
transforms into a
Service Business
From: Software Drives. Automotive E/E Development 2030, Kugler Maag Cie, 2015

6. Seite 6 Original video: https://www.youtube.com/watch?v=ysa5OBhXz-Q

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FocusOnline,AutoproduktioninEuropa:Mega-Parkplätze:
SinddasdiegrößtenNeuwagen-MüllhaldenderWelt?,2014-05-19
Automotive - an Eco-System?

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What happens if wolves appear?

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Eco-system: small change,
dramatic effect
• Eco-system populated by different species -
different roles
• Even small change can affect whole food
chain(s)
evaluatetransfer
observeexperiment
divergent
behaviour
experience
learning
standard
behaviour
• Behaviour change -
survival / lifespan of
current generation
(individuals)
• Evolution of the
species
- the next generation

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http://money.cnn.com/2016/02/16/autos/t
esla-model-s-for-kids-elon-musk/
Automotive Companies and Digital Natives
Attract, engage, retain ?

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The Human Microbiome
ReflectiveJournal,http://blogsitihazirah.blogspot.ie/2015_04_01_archive.html

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• Equaliser = purpose
• Diversity
• Nested distributed architecture
• no “commanders”
• Self-organised
Organism: Self-organisation
evaluatetransfer
observeexperiment
divergent
behaviour
experience
learning
standard
behaviour
• Domain specific
communication
• Connected
• communication
• Synchronised action
• Synchronisation or “overall
orchestration” for learning
or rapid response

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Command & Control Organic
Organisation Organising
Plan Planning
Who Self (inherent in living systems)
When (threat) Continuous evolution
(anticipate or initiate change)
Extra effort Integral
Goal (financial) Purpose (aligned)
Change weakens Hormesis (Change strengthens)
Error avoidance Curiosity
Patterns of organising

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• Laloux
Evolution of Organisational Patterns
Based on: http://futureconsiderations.com/wp-content/uploads/2015/01/laloux-diagram.png

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From command and control to “The Circle Way”

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•Purpose
•Roles, responsibilities,
accountabilities
•Circles
•Dynamic hierarchies in context
•Evolving rules
•Effective decision making
•Fractal
Integral Governance
- act and observe yourself
- all circles

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• Stress can strengthen
• Needs rest/reflection
Hormesis in nature

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• Relationships are key
• Stress can strengthen
• eg. circles in
Holacracy:
• Identify tensions
• Solve in circle
• Strengthen
relationships
Hormesis in organisations

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Living systems Organic
Purpose Purpose (why)
Common base Trust/faith
Self-organisation Eg. Holacracy
Hormesis Integral governance
Open Open
Diversity Diversity/curiosity
Experimentation Innovation/co-create
Learning Learning
What can we learn from living systems?

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z

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© KUGLER MAAG CIE GmbH
Thank you
for your
attention.