Complexity and Structural Change 2

Complexity Management

through

Structural Change©

By Alfonso Cornejo

Author of the Book

Complexity and Chaos:

A Guide for XXI Century Management

Structure-Process

Modelsome characteristics

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Structures Processes

System frontier

Environment Environment

Struct Proc

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Some Structure-Process Model

principles

• You can use S-P Model as a tool to

understand organizational behavior

• Processes (behaviors) are structures in

movement

• Complex organizational behaviors are the

result of structures and its interactions

• Responsibility of managers is to create

structures for the emergence of

fundamental processes: Operation,

Maintenance, Learning, Adaptation and

Growth (a systemic perspective for

viability).

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Some Structure-Process Model

principles

• If leaders want to create a lasting change

over organizational behaviors, they must

change structures

• Based on a systemic perspective,

Structures are present at different

levels:

– Organizational

– Cultural

– Groups / Teams

– Individual

September 2007 Alfonso Cornejo CM~SC © 5

Some Structure-Process Model

principles

• Working with S-P Model is also a Design

perspective: Every organization is

perfectly designed to the results it gets.

• Time and absence of structure care

(towards fundamental processes) could

carry system degradation and as a result

ineffective and inefficient processes

(complexity increase and that derives in

organizational entropy).

September 2007 Alfonso Cornejo CM~SC © 6

Some Structure-Process Model

principles

• Organizations must maintain a dynamic

balance between its components to reach

synergy and to cope effectively to

environment

• Organizations must use resources

efficiently and justified by assignation

to support fundamental processes.

• Increasingly organizational complexity

means and increase of resources

• Organizational structure should reflect

its learning over time.

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Structure and Process Model

and its interactions

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S PE P

1 3

4

2

15

7 9

10

85

611

12

13

14

16

Structure and Process Model

and its interactions

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1.- Structures

2.- Structures that generate processes

3.- Processes

4.- Processes that affect Structures

5.- Structures that influence Cultural Processes

6.- Processes that affect Cultural Structures

7.- Cultural Structures

8.- Cultural Structures that generate Cultural Processes

9.- Cultural Processes

10.- Cultural Processes that affect Cultural Structures

11.- Cultural Processes that affect Structures

12.- Cultural Structures that influence Processes

13.- Structures that influence environment processes

14.- Processes that affect environment structures

15.- Environment Processes that affect Structures

16.- Processes that affect environment Structures

Fundamental

Processes:

ACrOMA

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The need of Fundamental

Processes

We need to create, modify and

align organizational structures

… but what kind of processes

should organizations maintain in

order to survive and success in

a turbulent and increasingly

demanding environment?

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ACrOMA

• Adaptación: Adaptation

• Crecimiento: Growth

• Operación: Operation

• Mantenimiento: Maintenance

• Aprendizaje: Learning

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Five Fundamental Processes

1. AdaptationOrganizational evolution.

Indicators and mechanisms

to ear the weakest

environment changes and

transform them in changes

on inner structure in

order to fit to

accordingly to

environment.

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t

D

Five Fundamental Processes

2. GrowthQuantitative business

increase: Ordered,

balanced and stable in

size, systems and

departments but obeying

market size

participation. New

entities creation

capitalizing learning.

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t

D

Five Fundamental Processes

3. OperationFundamental transformation

from raw materials to

finished goods. Support

activities (direct and

indirect) to reach the

fundamental business

transformation. Value

added generation from

organization to society.

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t

D

Five Fundamental Processes

4. MaintenanceCaring of components and

systems performance state.

Homeostasis. Wear off

repairing over operation

components. Ensuring

optimal system operation.

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t

D

Five Fundamental Processes

5. LearningKnowledge and experience

acquired and its use over

vital systems for

organizational

performance. Level in

which organization make

of every event an

opportunity to improve

performance.

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t

D

Effective

Structural

Change

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Most transformation programs satisfy

themselves with shifting the same

old furniture about in the same old

room. Some seek to throw some of the

furniture away. But real

transformation requires that we

redesign the room itself. Perhaps

even blow up the old room. It

requires that we change the thinking

behind our thinking—literally, that

we learn to rewire our corporate

brains.

Danah Zohar

Rewiring the Corporate Brain

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Learning imply

Structural Change

-

Structural Change

Imply Learning

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Leadership and

its impact to

Organizational

Structures

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Leader contribute to

Structure the Organization

Leaders have the power (conscious or unconscious) to

modify organization through structural change,

although we have never consider it in this way.

Structures Processes

System frontier

Environment Environment

Struct Proc

September 2007 Alfonso Cornejo CM~SC © 22

New Leader s Role

• Observant of organization structures to

ensure that they can support fundamental

processes

• Live processes that can create the right

values (structures) to establish behavior

patterns to individual and groups

• Carefully observes Culture and ensure

positive effect in people

• Help to create or modify structures in

order to facilitate the fundamental

processes

September 2007 Alfonso Cornejo CM~SC © 23

Velvet globe but with an

Iron Hand

Leaders without authority permit gradual

degradation of structures that matter

most to organization.

To put it Simply…he is allowing

structural modification by any person,

but in a direction not congruent with

organizational structures (vision,

mission, values)

Leaders always need to be caring about

organizational structures, and their

best indicators are people behavior.

September 2007 Alfonso Cornejo CM~SC © 24

If You Build It (S),

They Will Come (P)

P

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The Book

Complejidad y Caos: Guía para la

Administración del Siglo XXI

Complexity and Chaos: Guide for XXI Century

Management

You can download or read the book here:

www.structural-change.com

http://www.eumed.net/cursecon/libreria/2004/aca/aca.htm

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Alfonso Cornejo

tektology@yahoo.com

www.structural-change.com

www.structural-change.jimdo.com

September 2007 Alfonso Cornejo CM~SC © 27