1997-2004 ©alfonso cornejo cm~sc ©1 complexity management through structural change © cm~sc © by...

1997-2004 © Alfonso Cornejo CM~SC © 1

Complexity ManagementComplexity Management throughthrough

Structural Change Structural Change ©©

CM~SCCM~SC©©

By Alfonso Cornejo, Author of the BookBy Alfonso Cornejo, Author of the Book

Compelxity and Chaos:Compelxity and Chaos:A Guide for XXI Century ManagementA Guide for XXI Century Management


Environment pressures thatEnvironment pressures thatdemands continual adaptationdemands continual adaptation

Industry arena

Cost Control

ServiceBenchmarks

Technology

Globalization

CustomerEver changing needs

Friction Free EconomyProfit Goals

Normativity

Desired Performance


ComplexityComplexityManagemeManageme

ntnt


Complexity ManagementComplexity Management

New Paradigm to comprehend the dynamic of New Paradigm to comprehend the dynamic of organizational processes. organizational processes.

Powerful tool to assure high performance of Powerful tool to assure high performance of Business Processes.Business Processes.

As a result of Structural Change, organizacional As a result of Structural Change, organizacional behavior improves.behavior improves.


ComplexityComplexityApplicationsApplications

StrategyStrategy

OrganizationOrganization

ProcessesProcesses

MetaphorMetaphor Principles Principles Applications Applications

Arie de GeusLiving Company

James MooreThe Death of Competition

Margareth WhetaleyLeadership and New Science

Michael Mc MasterIntelligence Advantadge

Peter Sengue

Stuart KauffmanKevin Kelly

Kees Van Der HeijdenScenarios

Peter SchwartzThe Art of the Long View

SPMArchetypes

Scenario PlanningInteractive

Management

StructuralChange

Genetic AlgoritmsJOHN DEERE

CEMEX CaseBordering on Chaos

There are stranger places to see the latest in complexity theory in action, but

delivering cement in Mexico is a pretty good start.

By Peter Katel

CEMEX


ComplexityComplexity

Do we look desorder......?Do we look desorder......?

...or the Order behind Disorder......?...or the Order behind Disorder......?

• ConflictConflict• Lack of priorityLack of priority•Pressures of environmentPressures of environment• Lack of directionLack of direction• Limited resourcesLimited resources• Not enough timeNot enough time

•StructuresStructures• BehaviorsBehaviors


¿How to deal with every day ¿How to deal with every day Complexity ?Complexity ?

7 8 1 1 5

12 10 3 5 4

9 9 7 7 ......

?• Low sales...• Rejected products...• Production delays...• Unsatisfied Customers....• Fails on communication.....• Demotivated people ....• Hurries..... •Etc....

1 2 3 4 5 6 7 8 9 10 11 12

P

?Even

ts

Events

Structu

res

Structu

res

Pattern

s

Pattern

s


Types of ComplexityTypes of Complexity

a)a) Origin Complexity:Origin Complexity: Due to original company characteristics, by Due to original company characteristics, by example. 3M vs Budweiser.example. 3M vs Budweiser.

b)b) Residual Complexity:Residual Complexity: Related with the everyday operation of the System, Related with the everyday operation of the System, by example. Conflict, orders cancellation, lack of by example. Conflict, orders cancellation, lack of raw material, personnel turnover, etc. raw material, personnel turnover, etc.

c)c) Provoked Complexity: Provoked Complexity: Complexity Complexity generated by particular instead of group decisions, generated by particular instead of group decisions, by example: To acquire wrong technology, to make by example: To acquire wrong technology, to make wrong hiring selections, to launch to market new wrong hiring selections, to launch to market new products but without analysis, etc.products but without analysis, etc.


Structure – Structure – Process ModelProcess Model

““SPM”SPM”


The Need for a Model of The Need for a Model of Complexity ManagementComplexity Management

OrganizationalBehavior and Conducts...

OrganizationalBehavior and Conducts...

...are the result of different interacting structures,

forms, patternsRelations,

paradigms, principles, etc.

...are the result of different interacting structures,

forms, patternsRelations,

paradigms, principles, etc.

We can separate current situations that we observe and live in a Model of polarities:

1.- Complex conducts2.- The variables that generate these complex behaviors

We can separate current situations that we observe and live in a Model of polarities:

1.- Complex conducts2.- The variables that generate these complex behaviors


Structure – Process ModelStructure – Process Modeland Chess...and Chess...

Checkered Board

Rules of the Game

Pieces itscharacteristics

PositionBetween pieces

Plays &Possibilities


A good analisys...A good analisys...

S1S1

S2S2

S3S3

S4S4

S5S5

S6S6

S7S7

P1P1

P2P2

P3P3

StructuresStructures ProcessesProcesses


Structure – Process Model (SPM)Structure – Process Model (SPM)

StructureStructure ProcessesProcesses

System FrontierSystem Frontier

EnvironmentEnvironment EnvironmentEnvironment

Struct Proc

Culture

Culture


Structure – Process Model Structure – Process Model 3 Levels (organization)3 Levels (organization)

OrganizationOrganization

CulturalCultural

PersonPerson

StructureStructure ProcessProcess

ProcessProcess

ProcessProcess

StructureStructure

StructureStructure


S-P M Organization level

SS PP

Estructura Procesos Organization

Culture

Person

Procesos

Procesos

Estructura

Estructura


S-P M Cultural level

SS PP


Culture

Person

Procesos

Procesos

Estructura

Estructura


S-P M at Personal level

SS PP


Culture

Person

Procesos

Procesos

Estructura

Estructura


StructurStructuralal

ChangeChange


I. Current SituationI. Current Situation

Diagnostic of Diagnostic of current observed current observed processes. processes.

Structures that Structures that generate the generate the current processes current processes Current situationCurrent situation

Observed environment: competitive Observed environment: competitive environment characteristics that affect environment characteristics that affect organizational dynamics. organizational dynamics.

EE

PP

SS

C SC S

Structural Change MethodologyStructural Change MethodologyAlfonso Cornejo Alvarez © 1997-2004Alfonso Cornejo Alvarez © 1997-2004


II. Desired situationII. Desired situation

Profile of required processes in Profile of required processes in order to maintain competitive order to maintain competitive edge. edge.

Structures required are Structures required are identified to support tne new identified to support tne new organizational processes.organizational processes. Desired situationDesired situation

Change Perspectives: Environmental Trends Change Perspectives: Environmental Trends and new Change Perspectives that trigger new and new Change Perspectives that trigger new organizational atitudes and behaviors. organizational atitudes and behaviors.

ETET

PP

SS

DD

Structural Change MethodologyStructural Change MethodologyAlfonso Cornejo Alvarez © 1997Alfonso Cornejo Alvarez © 1997


III. Structural ChangeIII. Structural Change

Detailed Action Plan in order to Detailed Action Plan in order to implement Structural Changes required, implement Structural Changes required, involving different organizational areas involving different organizational areas (Technological, Administrative, Cultural (Technological, Administrative, Cultural and Human). and Human).

Required actions are implemented to Required actions are implemented to assure the appearing of new assure the appearing of new organizational process.organizational process.

SC SC

PP

II

Structural ChangeStructural Change



IV. LearningIV. Learning

• New processes are mesured in operation New processes are mesured in operation in order to detect effectiveness of Structural in order to detect effectiveness of Structural Change previously planned. Change previously planned.

• A learning about the performance of A learning about the performance of processes is taken, Structural adjustments processes is taken, Structural adjustments are made, and a new stage for are made, and a new stage for organizational adaptation is established.organizational adaptation is established.

LL

MM

LL

LearningLearning



The importance of DesignThe importance of Design

““All the organizations are perfectlyAll the organizations are perfectlydesigned to obtain the results that they generate”designed to obtain the results that they generate”


If you don’t allow Structural Change to ocurr…. If you don’t allow Structural Change to ocurr…. There won’t be any change.......There won’t be any change.......

1997-2004 ©alfonso cornejo cm~sc ©1 complexity management through structural change © cm~sc © by...

Documents

alfonso cornejo

complexity management

origin complexity

complexity theory

day complexity

century management slide

c provoked complexity

b residual complexity