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Leadership and Structures for Volatile Times (keynote presentation DIEM 2017)

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Dynamic and volatile environments require both, the ability to adapt and innovate rapidly and a certain amount of stability and structure. Is it possible to combine those two somehow contradicting characteristics?
Yes, it is, if both leadership culture and organizational structructures are transformed at least in parts of the company.
(keynote presentation DIEM 2017)

Veröffentlicht in: Business
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Leadership and Structures for Volatile Times (keynote presentation DIEM 2017)

  1. 1. Leadership and Structures for Volatile Times Richard Pircher University of Applied Sciences BFI Vienna pircher.solutions
  2. 2. • Jäger und sammler Human collaboration developed during the history of mankind. Among hunters and gatherers the determining factor was …. Image: Wikimedia
  3. 3. … physical power and dominance Source: Frederic Laloux
  4. 4. Image: worak Wikimedia Through the development of gardening and agriculture enough food became available to allow some people in society to focus on other activities like …
  5. 5. • Erste Staaten Image: kidsen.com Pinterest … constructing buildings, produce art, investigating the starry sky, work in the military, …
  6. 6. Source: Frederic Laloux rigid hierarchy was the constitutive order for these societies … and it still is in some organizations and countries
  7. 7. • Technologie bürokratie Industrial production offers enormous productivity through division of laborImage: nocloudinthesky
  8. 8. commonly such an organization is understood as a machine. There are buttons and handwheels you may use to change it Image : Ragin Stern
  9. 9. command execution monitoring report The industrial machine organization is a top-down pyramid Image : (c) michaeldb www.fotosearch.com
  10. 10. a machine is rigid and inflexible and most humans don`t want to be treated as a gear-wheel
  11. 11. hunters and gatherers agriculture industry / machine ??? Source: Frederic Laloux What next?
  12. 12. „Today in a volatile world there are no errors, there is no right or wrong anymore but only course corrections.“ Stefan Truthän, hhpberlin
  13. 13. Problems with the Pyramid • It is quite rigid and inflexible • Information going from the bottom to the top will be filtered and biased and take long time • Commands from the top to the bottom will be restisted or ignored in many cases • Managerial power impedes innovation and change because managers want to protect their power
  14. 14. Is the managerial pyramid the only way to organize collaboration?
  15. 15. Something new emerges … 1993 From 1980 2014 From 1958 From 1970 "The larger we get, the more decentralised we get, the closer to the customer we get."
  16. 16. The future of organizing human collaboration is alive here already: (Hamel 2011, Laloux 2014, Pircher 2015) (500, production, FR) (>400, production, US) (9.000, service, NPO, NL) (1.500, services, US) (100, production, AT) (1.350, production, US) (org. model) (600, services, DE) (900, production, US) (4.000, services, NPO, US) (40.000, production, global) (1.500 stakeholder, services, NPO, DE) (750, production, FR)
  17. 17. Structures for Self-Organization purpose-driven self-steering competency based accountability motivating adaptive - flexible innovative relevant actions the whole human matters distributed authority Image: (c) yodiyim www.fotosearch.com collective intelligence
  18. 18. Coordi- nation LAN Home LAN Home LAN Home LAN Home LAN Elected speakers represent the Home LAN at the Coordination LAN for a limited time and communicate in both directions Exemplary Structures
  19. 19. Tele-Haase: Content instead of Pyramid Within the support process „Regie“ the CEO and Owner are active
  20. 20. applying
  21. 21. „Everyone who realy burns for a topic and who is able to inspire others is a Leader.“ „We are the dynamos. We keep the company running.“ Stefan Truthän, hhpberlin
  22. 22. The Power of Collective Intelligence „Excellence is the reason for employee participation“ Nadja Perroulaz, Liip (Swiss) „We leave the power where it belongs.“ „We definitely find a solution for every problem.“ „We wiped everything away which is not necessary.“ Michael Botek, ITdesign (Vienna)
  23. 23. Transformation from „heroic“ leadership to Developmental leadership Manz / Sims: Businesses without Bosses, 1993 S S L L = Supervisor / Manager Start-up team Transitional team Well-trained, experienced team Developmental leadership S = Leader S „Holding the space“
  24. 24. Different Ranges of Change One Area One Aspect: e.g. meetings Whole Organization Subsidiary / Start-up The Company Pircher (in print 2018)
  25. 25. A Map of Different Ways of Self-Organization Method People Development Structures Method driven Facilitators Translators Modeler Developers
  26. 26. Different Levels of Complexity and Scope for Design within an Organization Agreement-Certainty-Modell (Ralph Stacey)
  27. 27. Different Levels of Complexity and Scope for Design within an Organization relatively rigid relatively flexible explicit structure SIMPLE - COMPLICATED: mainly prestructured e.g. production lines, … COMPLEX: Self-organization e.g. in sales, strategy, projects, … No or implicit structure SIMPLE - COMPLICATED: informal organization Culture, social „rooms“ COMPLEX - UNSTRUCTURED: unpredictable innovation, sustainability Pircher (in print 2018)
  28. 28. New Work Experience • A training was developed to prepare employees, companies and students for the world of new work environments • Topics are among others: – Self-organization and agile structures – Agile and digital leadership – Self-Leadership – Roles Vs. Positions – Office and collaboration concepts Pircher (in print 2018)
  29. 29. Strengths •Employees tend to be more motivated and engaged •Both repetitive and reflexive tasks are combined •Everybody in the organization may become a sensor for relevant changes •The potential of both people and the organization may be realized much easier •The purpose of the organization is the guiding star for every decision and action •Attractiveness as employer is increased •Change is embedded in the genes of the company •A culture of cooperation and effective use of resources is much easier to establish •Innovation is encouraged and facilitated Pircher (in print 2018)
  30. 30. Challenges • It takes time to understand a completely different logic of collaboration and to get accustomed to it. Growth may be limited because of the need to maintain the culture. • Not everybody wants to engage in work or is able to • Recruiting is more difficult • A suitable approach for transformation has to be identified • Efficient processes for decision making and coordination have to be established • Owners and leaders with an appropriate mindset are essential • Individual success may not be measured in conventional hierarchical terms anymore • Employees have to be capable of dealing with freedom and accountability Pircher (in print 2018)
  31. 31. Take-Home Message 1 1. Self-organization and distributed authority: To distribute decisions to those people who own the knowledge and have to implement them is a decisive factor for agility and drive in a volatile environment. Pircher (in print 2018)
  32. 32. Take-Home Message 2 2. There are different options to transform an organization towards more agility with self- organization – ranges and strategies. Not every way suits every company. Pircher (in print 2018)
  33. 33. Take-Home Message 3 3. There are different levels of complexity and scope for design within an organization. Pircher (in print 2018)
  34. 34. Take-Home Message 4 • Developmental Leadership is able to unleash hidden potentials of employees and the organization. It is adaptable and much more suitable for a volatile environment than „industrial command and control leadership“.
  35. 35. Further reading and watching: • Pircher: The future of organizing de.slideshare.net/pircher/ • Hamel: First, Let’s Fire All the Managers • Bernstein et al.: Beyond the Holacracy Hype • Frederic Laloux: www.reinventingorganizations.com • Rooke / Torbert: Seven Transformations of Leadership • White: Overview Effect https://www.youtube.com/watch?v=CHMIfOecrlo
  36. 36. Richard Pircher richard.pircher@fh-vie.ac.at pircher.solutions Thank you very much for your contemplation! Slides at de.slideshare.net/pircher