Organize for Complexity - Keynote by Niels Pflaeging at Agile Greece (Athens/GR)

1. Athens,18.09.2015 AgileGreece #AGRS2015 @NielsPflaeging Howourorganizationswillbecomeagile, Soonerthanyouthink radicallydecentralizedandnetworked. 1

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3. Culture 3

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7. Dynamicpartof valuecreation Solution:Man Formalpartof valuecreation Solution:Machine 7

8. Localmarkets, highcustomization high dynamics 8

9. Localmarkets, highcustomization Spaciousmarkets, littlecompetition Sluggish/dull, lowdynamics high dynamics 9

10. “Outperformers”exercise marketpressureover conventionalcompanies Localmarkets, highcustomization Spaciousmarkets, littlecompetition Sluggish/dull, lowdynamics high dynamics high dynamics 10

11. “Outperformers”exercise marketpressureover conventionalcompanies Localmarkets, highcustomization Spaciousmarkets, littlecompetition Sluggish/dull, lowdynamics high dynamics high dynamics Dynamicpartof valuecreation Solution:Man Ageof CraftsManu- facturing Ageof Global Markets IndustrialAge/ Ageof TayloristicIndustry Formalpartof valuecreation Solution: Machine 1970/80today 1850/1900 11

12. Market Periphery Center 12

13. Market Periphery Center Isin charge! 3Decision 2Information 1Impulse 4Command 5Reaction Client 13

14. Market Periphery Center Servesthe periphery, ifneeded Isin charge! 2Decision 1Impulse 3Reaction Client 14

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21. TheoryY TheoryX Attitude Peopledislikework, Peopleneedtoworkandwanttotakeaninterest init.Underrightconditions,theyenjoyit Direction Peoplewilldirectthemselves towardsatargetthattheyaccept tomaketherighteffort finditboring,andwillavoiditiftheycan Peoplemustbeforcedorbribed Responsibility Peoplewillseekandacceptresponsibility, undertherightconditions Peoplewouldratherbedirectedthanaccept responsibility, (whichtheyavoid) Motivation Undertherightconditions,peoplearemotivated bythedesiretorealizetheirownpotential Peoplearemotivatedmainlybymoney andfearsabouttheirjobsecurity Creativity Mostpeoplehavelittlecreativity-except whenitcomestogettingroundrules Creativityandingenuityarewidelydistributed andgrosslyunderused 21

22. Behaviors Context Human Nature 22

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24. … SWOTAnalysis Dresscodes Orgcharts Plan-Actualsvariances PerformanceAppraisal/360° StrategicPlanning BusinessPartners ”Meritocracy“ BudgetingPlanning HR KeyAccounting,BusinessAreas Holidayapplications Paidextrahours CostManagement SalesQuotas Incentives Individualtargets Targetnegotiation Jobtitles Controlofworkhours JobDescriptions PayforPerformance Travelpolicies MbO Bosseshire Joursfixes Bonuses SalaryRanges EarningsGuidance CompetenciesManagement Suggestionboxes Allocations MatrixStructures KnowledgeManagement Trainingbudgets PersonnelDevelopment DevelopmentCenters Forecasting ”PersonnelExpenses“ AssessmentCenters 24

25. Indústry Retail Itispossible. Servicies Government/ NGOs 25

26. 3.Fase„beta“ o“fasedeintegración“ 1.Start-upphase or“Pioneerphase“ Transformacióntipo2: “Profundización“ Transformacióntipo1: “Burocratización“ Transformacióntipo3: “TransformaciónBeta“ 2.Fase„alpha“ o“fasedediferenciación“ Youngorganization Olderorganization 26

27. 3.Fase„beta“ o“fasedeintegración“ 1.Start-upphase or“Pioneerphase“ Transformacióntipo2: “Profundización“ Transformacióntipo1: “Burocratización“ Transformacióntipo3: “TransformaciónBeta“ 2.Alphaphase or“Differentiationphase“ Youngorganization Olderorganization 27

28. 3.Betaphase or“Integrationphase“ 1.Start-upphase or“Pioneerphase“ Transformacióntipo2: “Profundización“ Transformacióntipo1: “Burocratización“ Transformacióntipo3: “TransformaciónBeta“ 2.Alphaphase or“Differentiationphase“ Youngorganization Olderorganization 28

29. 3.Betaphase or“Integrationphase“ 1.Start-upphase or“Pioneerphase“ Type2transformation “Deepening“ Type1transformation: “Bureaucratization“ Type3transformation: “BetaTransformation“ 2.Alphaphase or“Differentiationphase“ Youngorganization Olderorganization 29

30. FormalStructure 30

31. InformalStructure 31

32. ValueCreationStructure 32

33. Compliance,Power Social Work/ValueCreation FormalStructure InformalStructure ValueCreationStructure 33

34. Law §§1Freedomtoact §2Responsibility §3Governance §4PerformanceclimateResultculture §5Success §6Transparency §7Orientation §8Recognition §9Mentalpresence §10Decision-making §11Resourceusage §12Coordination Beta Connectedness Cells Leadership Alpha notDependency notDepartments notManagement notDutyfulfillment notMaximization notPoweraccumulation notTop-downprescription notIncentives notPlanning notBureaucracy notStatus-oriented notCommands Fit Intelligenceflow RelativeTargets Sharing Preparedness Consequence Purpose-driven Marketdynamics 34

35. •  Transparency&Improvement •  Comparisonsbetweenpeers •  Comparisonswithpreviousperiods •  DialogandDissent •  Socialandgrouppressure •  Paybymarketvalue •  ResultsSharing •  … •  Fixed,individualtargets •  ManagementbyObjectives •  BudgetsandPlans •  PerformanceAppraisal •  HierarchicalPressure •  PaybyPositionorPerformance •  IncentivesandBonuses •  … 35

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37. @NielsPflaeging nielspflaeging.com organizeforcomplexity.com betacodex.org slideshare.net/npflaeging Howourorganizationswillbecomeagile, Soonerthanyouthink radicallydecentralizedandnetworked. 37