beyond efficiency: answers to complexity challenge the hague, june 14, 2006 new tools for new...
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BEYOND EFFICIENCY: BEYOND EFFICIENCY: ANSWERS TO COMPLEXITY CHALLENGEANSWERS TO COMPLEXITY CHALLENGE
The Hague, June 14, 2006
New tools for new organizational challenges New tools for new organizational challenges
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Campus profile
Campus is a a management consulting firm that belongs to
Innova Group (www.innova-eu.net), the largest European
private network of innovation services
Within Innova Group, Campus is specialized in stimulating
and supporting companies in order to valorize their
knowledge as competitive lever
Campus has always paid great attention to advanced
management theories
Campus focuses its action particularly on the study of
techniques and tools for the concrete application of the
theories in the business environment
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Complexity theory: provocations from the middle age
Midway upon the journey of our life
I found myself within a forest dark,
For the straightforward pathway had been lost.
(Dante Alighieri, La Divina Commedia, Inferno, 1306)
FOREST DARKFOREST DARK = COMPLEXITY = COMPLEXITY
MIDWAY UPON THE JOURNEY OF OUR LIFE = STORE OF KNOWLEDGE
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Complexity theory: which implications for our
companies? How can companies react to the increasing complexity and
uncertainty of the business environment?
How can companies be spiders and not preys in the spider’s
web of complexity?
Campus is able to provide to its customers an effective and
exclusive support in applying the advices that derive from
the advanced research on complexity in the business
organizations and environment
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Answers to complexity
First rule: opening out The tool designed by Campus:
company’s network analysis
(SNA – Social Network Analysis)
Second rule: the re-
orientation
Third rule: the
equilibrium between
order and disorder
The tool designed by Campus:
dynamic scenario analysis
(SD – System Dynamics)
The tool designed by Campus:
coaching for creativity (LTC
– Learning To Create)
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First rule: opening out
The real structure of a company is not represented by the organizational charts
How can we discover the real networks that operate under the formal organizational structure and indicate therefore ways of improvement?
The real structure of a company is not represented by the organizational charts
How can we discover the real networks that operate under the formal organizational structure and indicate therefore ways of improvement?
FROM THE CASTLE…. ….TO THE NETWORK
From formal coordination…. …. to informal coordination
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First answer: company’s network analysis
Campus is able to map and visualize the informal
process within a company
Campus is able to map and visualize the informal
process within a companyInterventions can be articulated on 3 levels:
• Reorganization of the formal structure (eg. shifting of
key resources, individuation of emerging leaders …)
• Valorization and development of the informal
relations among key actors (eg. settlement of periodic inter-
functional meetings,…)
• Integration of peripheral subjects to the informal
network (eg. involvement of personnel and creation of heterogeneous
groups,…) Before intervention After intervention
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Name N°Centralit
y degree
Tizio 19 54
Caio 169 39
Sempronio 41 38
Achille 180 35
Ettore 184 31
Opinion leader
Homogenous groups (clusters)
Company’s network analysis: an example
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Collaboration degree among different companies of an industrial group
Collaboration degree among different companies of an industrial group
LOW COLLABORATION
HIGH COLLABORATION Collaboratio
n among different companies
Collaboration within the same companiy
Azienda A
Azienda B
Azienda C
Azienda D
Azienda E
Azienda F
Azienda A
Azienda B
Azienda C
Azienda D
Azienda E
Azienda F
Company’s network analysis: an example
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Average centrality degree: 5,769
Name N°Centralit
y degree
Romolo 120 25
Numa Pompilio 126 11
Tullio Ostilio 128 11
Anco Marzio 104 10
Servo Tullio 114 8
Networkcentralization:
80,00 %
1. Too much dependency on a single person
2. Bottle neck
Average density: - 27,77%
Four isolated people
Company’s network analysis: an example
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Second rule: the re-orientation
Predicting future is more and more difficult: it is useful to build alternative scenarios
To anticipate moves
Strategic flexibility
Predicting future is more and more difficult: it is useful to build alternative scenarios
To anticipate moves
Strategic flexibility
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Second answer: dynamic scenario analysis
Campus applies simulation
models based on System
Dynamics to understand the
behaviors of complex
organizational systems and to
build alternative scenarios
Campus applies simulation
models based on System
Dynamics to understand the
behaviors of complex
organizational systems and to
build alternative scenarios
Managers must face different types of uncertainties:
• Environmental (the environment is not predictable)
• Organizational (the impact of the changes is difficult to understand)
• Decisional (risk to mistake the forecast of the effects)
Ordini
Ordini per prezzo
Fatturato
Prezzo medioprodotto
Tasso diinnovazione
Nuovi modelli
Costo introduzionenuovo modello
Tasso diintroduzione nuovi
modelliPrezzo medio
prodotto
Disponibilitàannuale per un
acquisto
Investimenti ininnovazione
prodotto
Quota innovazioneprodotto
Investimenti ininnovazione
prodotto iniziali
Livello disoddisfazione del
cliente
Incremento degliordini
Nuovi clienti
Coefficiente dipossibilità di
acquisto
N° Codici
N° medio di codiciper modello
Saturaz impianto
Disponibilità dellalinea
Tempi tot di set up
Tempo di set up std
Coeff di sensibilitàal prezzo
Tasso di ritardonelle consegne
Ritardo medio al100% saturaz
Tempo percorreggere il mix
Coefficiente dicorrezione misura
Sensibilità al ritardodelle consegne
Sensibilità al circuitonegativo
Ordini medi annui
Ampliamentogamma
Correzionetemporale
Ampiezza di gamma
Eliminazione modelliobsoleti
Incremento mercato
Merc potenziale
Mercato totalestimato
Correzione2
05 06 07
9.600.000
9.800.000
10.000.000
10.200.000
pz/ yr
Ordi
ni
APPLICATION FIELDS:
• Decision making process
– Modeling and test of scenarios
– Development and test of strategies
– Business Process Reengineering
• Organizational learning
– Check of variable systems behavior
– Making explicit tacit knowledge
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Third rule: the equilibrium between order and disorder
It is not sufficient to increment company's efficiency
We must accept a certain “level of disorder”
Creative capacity as a lever for innovation
It is not sufficient to increment company's efficiency
We must accept a certain “level of disorder”
Creative capacity as a lever for innovation
DISORDERDISORDERORDERORDER
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Campus developed Learning to Create, a modular program
to develop creativity in working groups
Campus developed Learning to Create, a modular program
to develop creativity in working groups
1. Education1. Education 2. Coaching2. Coaching 3. Management advice3. Management advice
LEARNING to CREATE
Training Predisposition
Feasibility study Idea
implementation
Internal-external mapping
Idea generation Idea assessment
APPLICATION FIELDS
• Strategic planning
• New product and service development
• Re-organization
• Marketing
Third answer: Learning to Create
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Examples of Attributes:
• Shape
• Color
• Price
Examples of Values:
• Freedom
• Imagination
• Having fun
ATTRIBUTES/VALUES (A/V) MAP
EXTERNAL MAPPING
Learning to Create:
example of a creative technique
Attributes / Values chain (external mapping)
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Learning to Create: succesfully applied
in several EU organizations
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Organizations must learn to deal with increasing complexity:
• Formal and informal
• Strategic flexibility
• Efficiency and creativity
Campus proposes tools to face these challenges:
• Understanding and valorization of informal knowledge and decision
flows
• Creation of alternative scenarios
• Creativity development
Conclusions
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“The risk is to go to war with the
weapons of the previous conflict”
Michel Crozier
