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Presenting the BetaCodex (BetaCodex06)

Introducing the BetaCodex - formerly: the Beyond Budgeting model. Here you find a short overview over the foundations of the codex.

NielsPflaeging
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Presenting the BetaCodex (BetaCodex06)

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  1. Make it real! PRESENTING THE BETACODEX Puttinganendto“commandandcontrol”: 12lawsfordefiningthe21stcenturyorganization 06 BetaCodexNetworkAssociates NielsPflaeging&ValéryaCarvelho&SilkeHermann BetaCodexNetworkWhitePaperNo.06.NewversionJan2011

  2. Theageofmanagement–anditsinventor WhenFrederickTaylorpublishedhislandmarkbook “ThePrinciplesofScientificManagement“,in1911,he suggested”management“asarevolutionthatwould solvetheproblemsoftheindustrial-ageorganization. Aboveall,Taylorpioneeredtheconceptofdividingan organizationbetween“thinkingpeople” (managers) and “executingpeople” (workers) –thusinventing managementasaclass,andasthinkingprincipalsof thenon-thinking“humanresources”.Tayloralso pioneeredthefunctionaldivisionoforganizations. Taylorsmethodsandconceptsweresoonunmaskedas inhumanandnon-scientificandhisconsultingmethods asratherineffective.Buttheconceptofdivisiondid nonethelessbecamewidelyadoptedafterhisdeath,in 1915. Management,asweknowittoday,isnotmuchdifferent fromwhatTaylorproposed,100yearsago.Intoday's dynamicandcomplexmarkets,however,tayloristic commandandcontrolmanagementisprovingmoreand moreobsoleteandtoxicforbothorganizational performanceandhumanandsocialadvancement.We nowcalltayloristicmanagement“Alpha”.

  3. Theworldhaschanged–organizationshavenot,byandlarge Industrialageends: ”Supplieshavethepower“, Evolutionofmassmarkets: Taylorismasthesuperiormodel Knowledgeeconomyadvances: ”Customershavethepower“, strongcompetition,individualizeddemand: decentralizedandadaptivemodelissuperior! high Now,allthesefactors areequallyimportant! Here,onlyefficiency mattered,really! 1.  Discontinuouschange 2.  Shortlifecycles 3.  Constantpressureonprices 4.  Lessloyalcustomers 5.  Choosyemployees 6.  Transparency, societalpressure ?  Highfinancial expectations Competitive successfactors (CSF) -Fastresponse -Innovation -Operationalexcellence -Customerintimacy -Greatplacetowork - Effective governance - Sustainedsuperior valuecreation/fin.perf. Characteristics Dynamics and complexity Characteristics •  Incrementalchange •  Longlifecycles •  Stableprices •  Loyalcustomers •  Choosyemployers •  „Managed“results low 1890 Mostorganizationsstillusethe“alpha”organizationmodelthatwasdesigned forefficiency,whiletheproblemtodayiscomplexity,requiringa“beta”model. 1980 1990 2000 2010 2030 2020 ©BBTN–Allrightsreserved 3

  4. Amovementfororganizationaltransformationthatstartedin1998 founded 2008 founded 1998 Stage1:BeyondBudgeting (1998-2002) Stage2:Beyondcommandandcontrol (2003-2007) Stage3:Beyondincrementalchange (2008-)

  5. From:Managedpyramid To:Led,decentralizednetwork

  6. TheBetaCodex:The12newlawsofLeadership Law Beta-“Leadership”Alpha-“Management” (Do this!) (Not that!) Connectedness notDependency Cells notDepartments Leadership notManagement Resultculture notDutyfulfillment Fit notMaximization Intelligenceflow notPoweraccumulation RelativeTargets notTop-downprescription Sharing notIncentives Preparedness notPlanning Consequence notBureaucracy Purpose-driven notStatus-oriented Marketdynamics notCommands §1Freedomtoact §2Responsibility §3Governance §4Performanceclimate §5Success §6Transparency §7Orientation §8Recognition §9Mentalpresence §10Decision-making §11Resourceusage §12Coordination ©BBTN–Allrightsreserved 6

  7. Comparingthemodels Technology: “Management”/Alpha Technology: “Leadership”/Beta

  8. TheBetaCodexisrootedinbothsciencesandpractice Sciences: Thoughtleaders (selected) Practice: StaffordBeer MargarethWheatley NiklasLuhmann W.EdwardsDeming KevinKelly RossAshby JosephBragdon … Industryleaders (selected) DouglasMcGregor ChrisArgyris JeffreyPfeffer ReinhardSprenger StephenCovey HowardGardner ViktorFrankl … Complexity theories Industry Social sciencesand HR Retail PeterDrucker TomPeters CharlesHandy JohnKotter PeterSenge ThomasDavenport PeterBlock … Leadership& change Services Strategy& Performance management Governments &NGOs HenryMintzberg GaryHamel JeremyHope MichaelHammer ThomasJohnson CharlesHorngren …

  9. Industry Retail Services Governmental &not-for-profit

  10. TheBetaCodex: Itmeansworking ontheorganizationalmodel, inthemodel not

  11. Organizationsofallkindsevolveduringtheirlives–mosthavetransformedOrganizationsofallkindsevolveduringtheirlives–mosthavetransformed themselvesatleastonce-movingfromPioneerphasetoDifferentiationphase Sustainingand deepeningofthe decentralizedmodel, throughgenerations Evolution withinthedecentralizedmodel (cultureofempowerment andtrust) Integration phase Beta!Highdegree ofdecentralization/ empowerment Transformation throughradical Decentralizationofdecision-making Differentiation phase Stagnation withinthetayloristicmodel Alpha!Lowdegreeof decentralization/empowerment Bureaucratization throughgrowinghierarchy andfunctionaldifferentiation Pioneering phase Beta!Highdegreeof decentralization/empowerment Severaldecadesold Foundation Timescale:organization'sage

  12. SomeprinciplestypicalofaBetaCodexorganization Market-drivensense&respond– nothierarchy-driven command&control Principles&shared values–notrules! Marketrules– notbosses! Funcationallyintegrated cells–notfuncationally divideddepartments Sociallydense&basedon peerpressure–not individualizedbureaucracy Radicallydecentralized decision-making– notcentralizedcommand Team-basedself- governance– nottop-downcontrol Extremetransparency– notinformationbottle- necks

  13. Fromthetayloristic (“Alpha”) totheemerging“Beta”organization Alpha:Traditionalmodel(supports efficiency) Beta:Newmodel(supports complexity) Decentralized network, “Senseand respond“ Centralized hierarchy, “commandand control“ Theoldmodelisnot alignedwithtoday’s Criticalsuccessfactorsand itdoesnotsupport‘TheoryY’. >Weneedanew modeltocopewith complexity >Wemustchange thewholemodel! Relative performance contracts strategy Fixed performance contracts Dynamic coordination Dynamic processes Fixedprocesses control

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

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

  16. 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.

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