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Managing in the Era of Complexity
- Peter Drucker‟s Landmarks
Prof. Dr. Winfried Weber
Peter Drucker Society of Mannheim
1st Global Drucker Forum, Vienna 2009
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried W. Weber
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Managing in the Era of Complexity Introduction
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
Peter Drucker Society of Mannheim, May 2009
Our question – Drucker in Practice
How do I work with Peter Drucker„s ideas?
Steering Committee
- Ralf Bußmer, Mayor Stadt Wittlich (retired)
- Hermann Doppler, Vice President Daimler AG
- Axel Gloger, Board of directors
- Dr. Bernhard Haas, Vice Presiedent John Deere & Company
- Dr. Rainer Lecht, Head of SCM Boehringer Ingelheim Pharma
- Prof. Dr. Dieter Leonhard, President Mannheim University of Appl. Sc.
- Clemens Schilling, Head of Series Production, Heidelberger Druckmaschinen
- Dr. Martin Stark, Managing Partner Freudenberg & Co.
- Prof. Dr. Winfried Weber, Mannheim University of Applied Sciences
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Managing in the Era of Complexity Introduction
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
Complexity
Theory <> practice ?
Peter Drucker Society of Mannheim, May 2009
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Managing in the Era of Complexity Introduction
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
Peter Drucker Society of Mannheim, May 2009
The starting point of most of our members:
modern production systems
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Managing in the Era of Complexity Introduction
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
Peter Drucker Society of Mannheim, May 2009
Starting point:
How do management thinkers explain
complex production systems?
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Managing in the Era of Complexity Introduction
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
Henry Ford, 1910
„My biggest problem was,
that I had to hire whole people,
when all I needed was two hands.“
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Managing in the Era of Complexity Introduction
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
Prof. Atsuo Ueda
President Drucker Society of Japan DW
“Toyota operates exactly the way Drucker-san
said a company ought to operate.”
Shoichiro Toyoda, Drucker Society of Japan DW
„The TPS is a management philosophy …
It has a lot in common with
Professor Drucker‟s teachings.”
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Managing in the Era of Complexity Introduction
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
Employees as ... talent! ... problem solvers!
„Workers have brains! Workers have ideas!“
Ron McPherson, 1980 to Tom Peters
CEO Dana, auto-parts manufacturer
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Managing in the Era of Complexity Introduction
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
Taylor„s production system
„To separate thinking from acting“
Taylor„s blind spots
„If you separate the working process,
to separate workers as much as possible“
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Managing in the Era of Complexity
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
Overview
Introduction
1. What is complexity?
2. How do leadership-masters deal with complexity?
3. Why managers can„t simplify
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Managing in the Era of Complexity
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
What is complexity?
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Managing in the Era of ComplexityWhat is complexity?
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
Science and Complexity
one of the most intriguing discoveries of scientific discourse
quantum physics 1920s
cybernetics 1940s
management 1940s
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Managing in the Era of ComplexityWhat is complexity?
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
peephole part-of-the-world-position
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Managing in the Era of ComplexityWhat is complexity?
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
„complicated“?
you can keep track of it
logically connected AIDS molecule
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Managing in the Era of ComplexityWhat is complexity?
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
Complexity means
- An observer is overtaxed if having to understand a
phenomenon
- Complex phenomena consisting of many (more than
three or four) organized, heterogeneous elements
defy both causality and statistics
Routledge Encyclopedia of Social Theory, 2006
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Managing in the Era of ComplexityWhat is complexity?
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
chess
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Managing in the Era of ComplexityWhat is complexity?
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
chess
10120 possible games1000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
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Managing in the Era of ComplexityWhat is complexity?
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
universe
1080 atoms
100000000000000000000000000000000000000000000000000000000000000000000000000000000
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Managing in the Era of ComplexityWhat is complexity?
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
chess grand master
strategic plan?
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Managing in the Era of ComplexityWhat is complexity?
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
chess grand master
build up the game
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Managing in the Era of Complexity
How do leadership-masters deal with complexity?
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
Organizations are as complex as chess
because they are social systems
acting in an unexpectable environment
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Managing in the Era of Complexity
How do leadership-masters deal with complexity?
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
“Management becomes necessary when an
organization reaches a certain size and complexity.”
Peter Drucker
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Managing in the Era of ComplexityHow do leadership-masters deal with complexity?
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
Herbert A. Simon
The Proverbs of Administration, 1946
„For almost every principle one can find an
equally plausible and acceptable contradictory
principle.“
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Managing in the Era of Complexity
How do leadership-masters deal with complexity?
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
Herbert A. Simon
The Proverbs of Administration, 1946
To manage = to deal with contradictions
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Managing in the Era of Complexity
How do leadership-masters deal with complexity?
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
Contradictory principles
Reduce complexity! <> Build up the game!
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Managing in the Era of Complexity
How do leadership-masters deal with complexity?
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
The function of management
„to put knowledge to work“
Peter Drucker
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Managing in the Era of Complexity
How do leadership-masters deal with complexity?
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
How „to put knowledge to work“?
Reduce complexity!
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Managing in the Era of Complexity
How do leadership-masters deal with complexity?
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
“An organization is a tool. And as with any other tool,
the more specialized it is, the greater its capacity to
perform its given task.”
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Managing in the Era of Complexity
How do leadership-masters deal with complexity?
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
“The organization must be single-minded,
or its members become confused.
Only a focused and common mission will hold the
organization together and enable it to produce.”
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Managing in the Era of Complexity
How do leadership-masters deal with complexity?
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
Focus on
simple and understandable
products or services
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Managing in the Era of Complexity
How do leadership-masters deal with complexity?
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
Peter Drucker
What is our mission?
Who is our customer?
What does the customer
value?
What are our results?
What is our plan?
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Managing in the Era of Complexity
How do leadership-masters deal with complexity?
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
Contradictory principle
Build up the game!
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Managing in the Era of Complexity
How do leadership-masters deal with complexity?
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
Peter Drucker calls himself a „social ecologist“
he builds up the game by
- analyzing history
- communicating, networking and „buzzing around“
- observing („look out the window“)
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Managing in the Era of Complexity
How do leadership-masters deal with complexity?
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
Understanding complexity?
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Managing in the Era of Complexity
How do leadership-masters deal with complexity?
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
Managing in the past society
who works plans out and produces
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Managing in the Era of Complexity
How do leadership-masters deal with complexity?
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
Managing in the next society
who works communicates
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Managing in the Era of Complexity
How do leadership-masters deal with complexity?
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
Peter Drucker„s landmarks
How to deal with complexity?
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Managing in the Era of Complexity
How do leadership-masters deal with complexity?
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
Management by ... ?
One best way?
To-do-lists?
Either ... or?
observing and epigrams!
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Managing in the Era of Complexity
How do leadership-masters deal with complexity?
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
How to deal with complexity?
Build up the game with epigrams
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Managing in the Era of Complexity
How do leadership-masters deal with complexity?
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
epigram
Organizations: „To create a customer“
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Managing in the Era of Complexity
How do leadership-masters deal with complexity?
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
epigram
Classical production systems:
„To separate thinking from acting“
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Managing in the Era of Complexity
How do leadership-masters deal with complexity?
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
epigram
„You cannot manage other people
unless you manage yourself first.“
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Managing in the Era of Complexity
How do leadership-masters deal with complexity?
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
epigram
knowledge workers
„They may not have to be ‚managed„,
but they have to be made productive“
„They have to be treated as volunteers“
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Managing in the Era of Complexity
How do leadership-masters deal with complexity?
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
epigram
change
„The most effective way
to manage change successfully
is to create it“
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Managing in the Era of Complexity
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
Why managers can„t simplify
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Managing in the Era of ComplexityWhy managers can„t simplify
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
Heinz von Foerster
„Act always as to increase the number of choices“
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Managing in the Era of Complexity
Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
The most influential management thinkers
in German speaking countries
TOP 5 2005 – 2009
# 1 Peter Drucker
# 2 Hermann Simon
# 3 Fredmund Malik
# 4 Michael Porter
# 5 Philip Kotler
www.managementdenker.com
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Prof. Dr. Winfried W. Weber, 08-04-14Prof. Dr. Winfried Weber
Thank you for your attention
www.managementdenker.com
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Managing in the Era of Complexity
simple management perspective
complex management perspective
problem non-consistency inconclusive situation
solution one best way
to-do-lists
unorthodoxy
„complicate yourself!“
change linear
either ... or
circularas well as
image of crisis crisis is explainable
call a consultant
crisis means re-organizing
self organizing system
decision based on calculation based on judgement
reasoning formal, fixed rules informal, variable rules
focus reduce complexity build up the game