Introducing the BetaCodex Network (BetaCodex 03)

1. Make it real! INTRODUCING THEBETACODEX NETWORK ThenetworkdedicatedtotheBetaCodex (formerly:theBeyondBudgetingmodel) andorganizationaltransformation 03 BetaCodexNetworkAssociates NielsPflaeging–GebhardBorck WhitepaperMar2008,updatedNov2009

2. Identity,vision&missionoftheBetaCodexNetwork •  OurIdentity: Wearethenetworkwithanswersfororganizationsintheknowledgeeconomy. Theconsequentapplicationofouralternativemindsetturns theseanswersintoreality. •  Ourvision: TheBetaCodexisthestandardorganizationalcodex. Ourmission: TheBetaCodexNetworkhelpsorganizationstotransformtheirmanagementmodels fromcommand&control (or:Alpha) toBeta, inorderforthemtosustainsuperiorcompetitivesuccess. TheBetaCodexNetworkisthemostimportantplatformforachievingtransformation andimprovingthemodel. •  Source:BetaCodexNetwork.OriginaldraftversionproducedinBasel,December2007

3. Ataleofwaterbottles (PartI) Inthebeginning... discoverwhatwaslying“beyondbudgeting“.Thatquestarosefromasimpleobservation:Mostorganizations werethendoingbudgeting,atleastannually.Buttoanyonequestioningthepracticethoroughly,itwouldquickly becomeapparentthatmanagingbybudgetsdidn'tmakeanysenseatallinadynamicandcomplexworld. SotheEnglishmenhadafeelingthattherehadtobeanalternativetothismanagingby“commandandcontrol”. Therehadtobesomebettersolutiontomanagement,somewhere“beyondbudgeting”.Theresurelyhadtobe someexistingpracticeormodelthatwouldenableorganizationstogetridofdamagingandobsoleteritualslike budgeting.Inearly1998,thegroupsetofftofillthebottlewithknowledgeandinsights,confidentthatthiswould thenleadthemtoacoherentsolution. SoitcamethattheEnglishmen,namedJeremyHopeandRobinFraser,togetherwithPeterBunce,foundeda communityof“sponsors“,amembership,whichwouldfinancethequesttofillthebottle.The communitywouldsoonbecomeknownastheBBRT.AndthustheBBRTsetouttofindorganiza- tionsthatdidn'thavebudgetsandwhichsolvedmanagementproblemsinratherdifferentand “unusual”ways.Fewpeopleintheworldthenactuallybelievedthatthebottlecouldbefilledwith water.Butsoon,theBritonscameacrossexceptionalcompanieswhichwerewillingtoshare theirexperiences.ThosewerefirmslikeHandelsbanken,AES,andBorealis. Withtheyears,thebottlewasfilledwithwater.Thathappenedgradually.Thebottlewas beingfilledup,dropbydrop.Ittookawhile,butthecaseresearchandthethoughtprocessand thepresentationstothemembersovertimeaddeduptoarealsolution.Inotherwords, knowledgeaboutthesolutiontotheproblemwasaccumulatedandtheproblemsolved,over time.Dropbydrop.Andafter7yearsofworkorso,itbecameapparentthatthebottlewas nowalmostfull.Noonehadquitenoticedthishappening,andthattheoriginalmissionofthe BBRTwasfulfilled,butitbecameundeniable.Theproblemwassolved,theresearchandjoint workhadsolvedthemysteryofwhatlay“beyondbudgeting”.ThereWASindeedawholeworld outthere,beyondbudgeting!Thesolutionmadecompletesense,itwascoherentinitselfand addingupwithwhatothersciencessaid.Andthesolutionalsoclearlypromisedexceptionaland holisticperformanceinacompetitiveworld,asthecasesproved. Andthen,atsomepoint,thebottlewasfull.ThisisNOTtheendofthestory,ofcourse. …therewasanemptywaterbottle.Itwasthen1998.TherewerealsoacoupleofEnglishmen,whowere tryingtofillthebottle.Thebottleabouttobefilledup,ortheproblemthoseBritonswantedtosolve,wasto

4. Ataleofwaterbottles (PartII) insightswiththeworldandmanagedtoconvincemanypeoplethatthesolutionwaswellworth lookingat.ThefacttheBBRThadfilledthebottleledtorecognitionandnotrarelytoapplause. Buttherealsostillseemedtobeabarrier:Organizationssomewhatadmiredthebottle andthewaterinit,buttheydidn’tdrinkit.Oratleastnotasenthusiasticallyaseveryone withintheBBRThadexpected.Organizationsdidn’tstartdoingwhatthesolutionsuggested shouldbedone.Andconsequently,theyweren'tabletomakeuseofthesolution'spotential. Sowhatwaswrong?Whydidn’teverybodytakethesolutionandjustmakeithappen? RobinFraserwasthefirstintheteamtorecognizetheproblem.Hereckonedthatthe solutiontothefirstbottleproblemalonewouldn'tdoit.Allright,thebottle'srationalewas irrefutable;theBBRT´sinsightsandconclusionswereallcorrect;thecasesprovedthepoint. ButhowwouldaCEOofacompanyapproachanenormouschangesuchas“management modeltransformation,towardsthebeyondbudgetingmodel”,inpractice?Themereanswer thattherewas aworldbeyondbudgetingwouldn’thelpthemanagementteamtoovercome theirdoubts,ortoinitiateachangeprocess.Norwouldthepromisealonehelpchangeagents tochallengeexistingstructuresandpractices.Thefirstbottlebyitselfultimatelythuswouldn’t enablereal-worldorganizationswiththeirreal-worldmanagementmodels-althoughvisibly obsolete–tomakethechangehappen. SomemembersoftheBBRTcommunitypreviouslyhadapproachedchangeanyway,each ofthemintheirownfashion,buttheyevidentlyhadn’tgotveryfar,orthechangeswouldn't stick.Somehadoutrightfailedtoimplementthesolution,somethoughttheyhadactually managedit,butthesewouldsufferabackslashlater-on.Manyinthecommunitywouldnottryto doimplementation,evenafteryears,hesitating,becauseimplementationstillseemedtoolargea challenge.SotheBBRTagainstoodinafog,havingtofaceaproblem.Andovertime,thefog liftedanditbecamecleartoRobinandothersinthegroupthattheresimplywasmore thanone bottle.Thattherewasinfactasecondbottle,stackedontoponthefirstone. AndthatSECONDbottlewasstillprettymuchempty… Whathappened,then?Well,theBBRTcommunitywentondiscussingaboutthebottle andhowtheyhadmanagedtofillitup.Theyshowedthebottlearound.Theysharedthe

5. Ataleofwaterbottles (PartIII) theoneinthemovementwhohadmostexperienceinconsulting,recognizedprettyearly-on thatthesecondbottle,overall,sofaronlycontainedacoupleofdropsofwater. Healsosawthatwhiletherewerealotofgoodideasoutthereabouthowtocreatechange ingeneral,therewasn't,ontheotherhand,muchexperienceavailableaboutsomething quiteasbigastransitioningcompletemanagementmodels.Therewasn’tmuchexperience abouttransformationavailablefromcasecompanieseither,becausethosefeworganizations whichhaddoneitinthe70sor80shadn'tthoroughlydocumentedtheprocess.Inaddition, notmanypeopleouttherewouldevenbelievethattransformationcouldbedoneinthe absenceofasuper-hero-likeCEOorcompanyowner.NotevenintheBBRTitselfthebeliefin transformationwassufficientlywide-spread.ButRobinwasfirmlyconvincedinthatthe secondbottlewaswhatnowmatteredandthatitcouldactuallybefilled.Itwasthen2004. Overall,thesituationthatRobinandsomeotherlike-mindedpeopleintheBBRTfacedwas verymuchlikethesituationin1998:Therewasatotallyfreshproblemtobesolved.A bottletobefilled,almostfromscratch.Sothatteamintensifiedworkingontoolsandconcepts tomaketransformationhappenandtostartpouringsomewaterintothenewlyidentified bottle.Robinmadeaboldandpromisingattemptin2004and2005withacompanyfromthe Mediterranean,tobringaboutfull-fledgetransformation.Butitdidnotyetquitehappen. Andtherewasanadditionalchallenge.Whilethefirstbottleproblemhadbeenabout researchderivedfromcasesandscience,thesecondbottlewouldbemoreaboutactually practicingtransformationandderivingconclusionsfromthat.Whilethefirstrequired understandingthenutsandboltsofanewmanagementmodelintheory,thesecondwould beaboutunderstandingthenutsandboltsofpeoplechangingtheirorganizations,their companies.Thenewworkwouldbefarmore“practical”,requiringmorediverseskillsanda morediverseteam.Andindividualswillingtotakehugeperceivedrisksandgofor transformationanyway. Sowhatdoesallthatmeanforthenetworkandtheinternationalmembership? RobinFraserwasthefirstoneintheBBRTtogetafullgraspatthesecondbottle.Robin, Understanding transformation Understanding themodel

6. Ataleofwaterbottles (PartIV) BBRT,inseveralimportantways. Asunderstandingoftheemergingnewmodelhasbecomewide-spread,webelievenowisthetimefor gatheringorganizationsaroundtheworld,independentoftheirsize,industryorlocation,tomakeitreal.The commitmentoftheBetaCodexNetworkthusistocontinuetheBBRT´sworkinawaythatisconsistentwiththe needforpracticaltransformation,byfillingthesecondbottle.TheNetwork'svisionis:“TheBetaCodexisthe standardmanagementmodel.”Transformation,inconsequence,isforeveryone.Period. EventhoughtheBetaCodexNetworkandtheBBRTareintimatelyrelatedthroughthebeliefin thesamemodel,therearesomesignificantdifferencesbetweenthetwoassociations.For instance,theBetaCodexNetworkisabouttobefarmoreopen,collaborativeandinclusive thanthepreviouseffort,inordertosignificantlyincreasethespeedofmodelandmethod developmentandsharedlearning.Thisisnotjustanoption.Itisanecessity.Becausethe Networkwillachieveitsvisionnotthroughmereresearchbutthroughapplicationinthereal world.Organizationsstartingtransformationneedsolutionsfortheirreal-lifeproblems,and theycannotwaitinfinitely.Theamountofpracticalinnovationneededfortransformation overthecourseofthenextyearswillbeimmense. Asaconsequence,andfirstly,theBetaCodexNetworkhastobe“ “opensource” ”,which meansthateveryoneintheworldwillbeabletocontributetothenetwork'swork (muchlike ontheweb-encyclopediaWikipedia).BeingtrulyopensourcewillenabletheNetworkto capturefarmoretalentandinnovativepotentialthenbefore.Opensourcealsomeansthat everyoneintheworldcangainaccesstothefullintellectualcapitalofthenetwork. AndthatintensecollaborationwillhappenthroughtheNetwork'sinternetportalandwebtools. Secondly,theBetaCodexNetworkisstrictlynon-commercial.Therewillbenomembership fees.Andvoluntarydonationswillbeexclusivelydedicatedtofinancejointnetworkprojects, suchastheBetaCodexwebportal,web-basedtools,andspecialmembershipactivities. DonationswillnotbeusedforincomegenerationofNetworkAssociates. TheBetaCodexNetworkisaboutthesecondbottle.ItisthenextgenerationoftheBeyondBudgeting (or: BetaCodex) movement.ItunderstandsitselfastheBBRT´slogicalcontinuation–butitisdifferentfromthe BetaCodex: Makeitreal!

7. Ourlogos,trademarksandslogans beyond budgeting. beyond budgeting transformation network. Make it real! •  Therearetwoseparatelogos.Oneforthe“codex“,oneforthe“community“. •  Redexpressesourpassion.Andthecouragethatweknowisneededtocreatelarge-scale change–withinorganizationsandwithintheinternationalbusinesscommunity. •  Therounddotreferstotheformatofthenetworkedmodel,whichdefinesitselfasbeingdriven “fromtheoutsidein“. •  Workingasatrue“ “network“ “ withnohierarchydescribesourownorganizationalstructure. •  “ “Transformation“ “iskeytoourmissionanddescribesthewaywecreateabetterfuture. •  “ “BetaCodex“ “isthecurrentnameofthe“model“.Originallycoined“BeyondBudgeting”backin 1998,whentheBBRTwasfounded,are-brandingbecomenecessary.TheBetaCodexbrandwas publiclyadoptedinAutumn2009. •  The“ “largerthan” ”signstandsfor”forward-looking“anditsignalsthattransformationleadstoa betterfuture. •  The“ “fatwriting” ”inthelogosindicatethatwearenotjustaboutbusiness.We mean it. Webelievein ourvision.Wewillnotresistuntilourvisionisaccomplished.Period. •  Makeitreal!Isbeingusedasanadditionalsloganwiththelogos. ItreinforcesthattheBetaCodexisnotatalkshop.Itexiststomaketransformationhappen–noless! Source:BetaCodexNetwork

8. TheroleoftheBetaCodexNetwork,withinthemovement 1 WhattheBetaCodexNetworkdoes: 1.  Wejointlydevelopthemodeland develop/offermethods (research) andtools. Wealsodorelatedthings,like supportingresearchprojectsor universitychairsinrelevant research. 2.  Wecreategravitation/attraction forthemodel.Worldwide. 3.  Weofferourmembersan exchangeplatformtheyseevalue in. Theplatformwilloffershared learningandexchangeof methodsandtoolsamongpeers. 4.  Weoffertransformation resources,suchas implementationmethods,anda widearrayofproductsandweb- basedtools,asupportnetwork, andservices/advice–e.g. implementationworkshops. Thenetwork developsthe model andmethods 2 4 Thenetwork supports transforma- tion Thenetwork winsheartsand minds 3 Thenetwork buildsand growsthe community *OriginalideadevelopedbyRobinFraser/NielsPflaeging,May2007–reviewedbyNielsPflaeging/GebhardBorck

9. SomeuniquefeaturesoftheBetaCodexNetwork Whichmeansthatweareopen,collaborativeandinclusive,inordertosignificantlyincreaseshared learningandthespeedofmodelandmethoddevelopment. Thisisnotjustanoption.Itisanecessity.Anyoneintheworldwillbeabletocontributetoourjoint work (muchlikeontheweb-encyclopediaWikipedia) –notonlyAssociates,butalsoacademics, associations,andthebroadpublic. •  Being“ “opensource” ”requiresclose,virtualrelationshipsandworkmethods. Wewillputadequateinfrastructureinplace,e.g.onlineforumsandvirtualtools,toallowforintense collaboration.Ourportalshouldbeamainworkplaceforyou,ifyoudealwithbeyondbudgeting. •  Anexclusivevirtualonlineforumwillbethebackboneforthevirtualinteractionbetween Associates-companiesaswellasindividuals. •  Severalmeetingformats(hostedmeetingsatclients,peertalks,RapidBusinessConferences, fireplacegatherings,workmeetings) willbethebackbonefor“realworld”interactionwithinthe network. •  Thenetwork'sreachisglobal,thusthenetworklanguageisEnglish. Allmembershipandmeetingsareglobal,inprinciple. •  Associatesare partofapowerful,international,funandenergizingcommunity, composedofbrilliantindividuals. •  TheBetaCodexNetworkisatrueleader'snetwork.Itwillhavenointernalhierarchy,andno Associatepossessesformalpower.WebelieveeveryoneintheNetworkcanbeandshouldbea leader,andcontributetothemovementinhisorherway.TheNetworkinvitesallmembers (Associates) toshare,andto“send”forthemovement. •  Thenetworkisstrictlynon-commercial.Therewillbenomembershipfees.Projectsarefinanced throughdonations.Thesewillbeexclusivelydedicatedtofinancejointnetworkprojects,suchasthe network´swebportal,web-basedtools,andspecialmembershipactivities.Donationswillnotbe usedforanyAssociate'sincomegeneration. •  TheBetaCodexNetworkistheworld'sfirstopensourcenetworkinthemanagementarena.

10. MembershipprinciplesfortheBetaCodexcommunity •  •  •  WebelievethatBetaCodexNetworkmembershipshouldbeampleandwide-spread. Memberscanbe:firms,otherorganizations,individualsorindependentconsultants. Membersarecalled“BetaCodexNetworkAssociates”andtheycanusethistitleintheir communication WeanticipatethattherewillbedifferenttypesofinterestamongAssociates,inpractice: –  “consumingmostly”–thesewillconstitutethelargerpartofmembership –  “co-developing”–thesearethemostvaluabletothenetwork It‘suptothemembertospecifyhisorherinterestandtoexplainhow (s)hewill contributetothemovement. Membershipdonationsareusedforjointinvestmentsbythenetwork, notforindividualincomegenerationofthenetwork'sdirectors. Inaworldstilldominatedbytayloristicthinkingandmanagement,allAssociateswho haveasindividualsreachedthe“NeutralZone”orthe“Beginning”**, are“maverickmaterial”,bynature.WithintheNetwork,theseindividualswillbevalued andregardedassuch,andstimulatedto“broadcast”,inthewaystheyfindchallenging andappropriate.Theyshouldbecomeinvolvedinindividualcoachingandfeedback. •  •  •  •  *source:NielsPflaeging/GebhardBorck**seechangeconceptbyWilliamBridges/theDoubleHelixTransformationFramework

11. WanttobecomeamemberoftheBetaCodexcommunity? YouareinterestedinbecomingaBetaCodexNetworkmember? Orhavealreadydecidedforyourselftobecomeoneandjointhecommunity? Wearegladyouwanttojointhemovement! PleasejointheBetaCodexNetworkbysimplyregistringonthewww.betacodex.orgwebsite. Pleasedon´tforgettoincludeaphotoonyourAssociateprofile. Source:BetaCodexNetwork

13. TheBetaCodexNetworkwhitepapers-sofar Special   Edi+on   Special   Edi+on   FindallBetaCodexNetworkwhitepapersonwww.betacodex.org/papersandonSlideshare. Whitepaper–The3StructuresofanOrganization ©BetaCodexNetwork–Allrightsreserved 25

14. The“OrganizeforComplexity”book Paperbackedition Deluxeedition (withbonuschapter) www.organizeforcomplexity.com

15. Make it real! ValéryaCarvalho mvaleriacarv@gmail.com LinkedIn SãoPaulo NielsPflaeging contact@nielspflaeging.com nielspflaeging.com NewYork,Wiesbaden SilkeHermann silke.hermann@nsights-group.de insights-group.de Wiesbaden,Berlin,NewYork LarsVollmer me@lars-vollmer.com lars-vollmer.com Hannover,Stuttgart betacodex.org GetintouchwithusformoreinformationaboutleadingBetaCodextransformation, andaskusforakeynoteoraworkshopproposal.