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Independence at Work: Why management is dispensable. How complexity is causing a leadership revolution

Slides for keynote presentation by Niels Pflaeging at "Phaesun Workshop 2012" in Memmingen, Germany. <br>Illustrations used by permission of Jurgen Appelo, www.noop.nl

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Independence at Work: Why management is dispensable. How complexity is causing a leadership revolution

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  1. IndependenceatWork Whymanagementisdispensable. Howcomplexityiscausingaleadershiprevolution NielsPflaeging KeynoteatPhaesunWorkshop2012 Memmingen/Germany,5October2012 IllustrationsusedwithkindpermissionbyJurgenAppelo

  2. ? ??? Typicalquestionsabout work&organizations

  3. ? ??? Together,wearekindofdumb. Butwhy?

  4. Thinking Doing

  5. Thedependencemodel– inheritedfromthe industrialage Lookslikeagrid. Nocoincidence.

  6. Therecould beintelligentlifein thelowerpartofthepyramid…

  7. Complicated/manyrules> Stupidbehavior Simple/fewprinciples> Complexbehavior Don´tdoevil.

  8. Anorganisation

  9. Mostorganizationsareobsessedwithindividualperformance. Butindividualperformanceisamyth,actually.

  10. Weknowthateveryoneinanorganisationisinterconnected. Soperformanceandsuccessarecomplexthings…

  11. Complexityanditsconsequencesfor workandleadership

  12. Theimpactofcomplexityonwork: Valuecreationhastwoparts Dynamicpart– solution:man Formalpart– solution:machine

  13. highdynamic Dynamicpart ofvalue creation Solution:man Ageof craftsmanu- facturing Localmarkets, highcustomi- zation Formalpartof valuecreation Solution: machine 1850/1900 t

  14. highdynamic sluggishness/lowdynamic Dynamicpart ofvalue creation Solution:man Ageof tayloristic industry Ageof craftsmanu- facturing Localmarkets, highcustomi- zation Spaciousmarkets, littlecompetition Formalpartof valuecreation Solution: machine 1850/1900 t 1970/80

  15. highdynamic sluggishness/lowdynamic highdynamic Dynamicpart ofvalue creation Solution:man Ageof tayloristic industry Ageof craftsmanu- facturing Ageof global markets Outperformersexercise marketpressureover conventionalcompanies Localmarkets, highcustomi- zation Spaciousmarkets, littlecompetition Formalpartof valuecreation Solution: machine 1850/1900 t 1970/80today Thedominanceofhighdynamicsandcomplexityisneithergoodorbad. It‘sahistoricalfact.

  16. Guesswhereinthis“Taylorbathtub”timelineindependencebecomesvital!Guesswhereinthis“Taylorbathtub”timelineindependencebecomesvital! Dynamicpart ofvalue creation Solution:man Ageof tayloristic industry Ageof craftsmanu- facturing Ageof global markets Outperformersexercise marketpressureover conventionalcompanies Localmarkets, highcustomi- zation Spaciousmarkets, littlecompetition Formalpartof valuecreation Solution: machine 1850/1900 t 1970/80today

  17. “Sociallydensemarketorganization”.Isthatpossible? Radicaltransparency, socialdensity, grouppressure Frame:values, principles,roles, sharedobjectives Command, control Problems, information Frame:rules, responsibilities, jobdescriptions

  18. Industry Retail Itispossible Services Governments &NGOs

  19. But… Wehavetobuildconsensusabouthumannature. Whatarepeoplelike?

  20. McGregor'scriticaldistinction TheoryY TheoryX Attitude Peopledislikework, Peopleneedtoworkandwanttotakeaninterest init.Underrightconditions,theyenjoyit Direction finditboring,andwillavoiditiftheycan Peoplewilldirectthemselves towardsatargetthattheyaccept Responsibility Peoplemustbeforcedorbribed tomaketherighteffort Peoplewillseekandacceptresponsibility, undertherightconditions Motivation Peoplewouldratherbedirectedthanaccept responsibility, (whichtheyavoid) Undertherightconditions,peoplearemotivated bythedesiretorealizetheirownpotential Creativity Peoplearemotivatedmainlybymoney andfearsabouttheirjobsecurity Mostpeoplehavelittlecreativity-except whenitcomestogettingroundrules Creativityandingenuityarewidelydistributed andgrosslyunderused Source:DouglasMcGregor,‘TheHumanSideofEnterprise’,1960

  21. Behavior HumanNature Context Wehaveanobservationproblem.

  22. Powertotheteams

  23. Socialdensity,or“peerpressure”

  24. Successisnotazero-sumgame Low,oraverageperformance High,orsuperiorperformance

  25. Centralcoordinationisluxury.

  26. Product Management Sales BackOffice Businessteam2 Businessteam1 Functionaldivision:abadidea Businessteam3

  27. Everybodyknowsthiskindofstructure. Disadvantage:It´snotactuallyreal.

  28. ? ??? StructureNo.2 StructureNo.1 ? ??? StructureNo.3

  29. Thisoneisalsowell-known.Muchmorereal

  30. Butthis?

  31. Now,thisisreal!

  32. Market Periphery Center

  33. Market Periphery Center

  34. Market Periphery Center

  35. Market Periphery ! ! Center ! ! ! 3Decision 2Information 4Command 1Impulse 5Reaction Customer

  36. Market ! ! Periphery ! ! ! ! Center Serves theperiphery, ifneeded ! ! ! ! ! 2Decision 1Impulse 3Reaction Customer

  37. Market (verypowerfultoday) Organisation&teams

  38. Whenmarketslead,it´sgoodtohaveaperipherythat´sincharge. Decentralizeddecision-makingbecomesaquestionofsurvival

  39. Periphery: roles,influence…

  40. Center:roles, influence…

  41. “Helpthecenterloseitsarrogance”. Becauseit´shard

  42. Practice.Practice.Practice

  43. Thedependencemodel- niceillusion Thein(ter)dependencemodel: Whereeveryonecanthink.And everyonehasto!

  44. Transparency&Improvement Peerteamcomparisons Comparisonsw/previousperiods Dialogue&dissent Paybymarketvalue Resultsharing … Fixed&individualtargets ManagementbyObjectives Budgets&Plans Performanceappraisals PaybyPosition PayforPerformance Incentives&Bonuses …

  45. The10.000hourprinciple Formasteryandlearning. Prettyimportant

  46. Winning:onlytogether,notindividually. Celebrateresults.Notmeetingtargets.

  47. Independenceatwork: Leadershipmeansworkingonthesystem. Notonpeople.

  48. Law Incomplexity,organizingtheworkrequiresanewcodex TheIn(ter)dependence model–Beta Connectedness Cells Leadership Resultculture Fit Intelligenceflow RelativeTargets Sharing Preparedness Consequence Purpose-driven Marketdynamics TheDependence model–Alpha notDependency notDepartments notManagement notDutyfulfillment notMaximization notPoweraccumulation notTop-downprescription notIncentives notPlanning notBureaucracy notStatus-oriented notCommands §1Freedomtoact §2Responsibility §3Governance §4Performanceclimate §5Success §6Transparency §7Orientation §8 Recognition §9Mentalpresence §10Decision-making §11Resourceusage §12Coordination

  49. . .?? Let´stakepeopleandworkoffthegrid. Let´sbringindependencetowork. Itworks.

  50. ! !?? NielsPflaeging, www.nielspflaeging.com www.betacodex.org Allillustrations:JurgenAppelowww.noop.nlandNielsPflaeging

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