Transcript

Network companies and company networks: Christof Horn at TEDxStuttgart

[Music] [Applause] [Music] hi today I want to talk about dity and dity is a combination of Dynamics and complexity so things are speeding up and things get more complicated and the combination of both is quite tricky so dity just to make you familiar with the concept my slide dech is designed for 60 minutes and these guys from Ted gave me only 18 minutes so I will speak with a double speed and I will skip every second slide and that's dity the left car is my first car it's a Golf 2 and when there was a part inside that car it was used only in that one car and today if we take a a golf 7 I think it is one part can be used in about seven 50 different types of cars so the Simplicity on the one side that you have only one part creates a dity on the other part that means that processes and design and decision making is much more complex so efficiency is a driver for dity and if you take that Golf and you add some worldwide web functionality then it's called connected car then everything changes because you're not offering anymore a product that you just give to the customer but you have to operate a service and you're not in on the head of supply chain like a hokee like a pyramid but you're in the middle of a network of Apple and Google Google and other and small companies and if you talk about quality it's not about measuring things like PPM parts per million you can measure it you can see it it's about something like customer experience so Innovation creates dity and this is a picture of a district of the capital of South Korea it's called gangam and there was that song that spoke about the people that live at gangam Gangam Style and it was 6 months from the St of Gangam Style of that video to reach 1 billion and this number has to do with a second number it's 510 it's the average number of friends or Links of young people on Facebook but that's only one part of the story the second part is that companies real companies like British Airways changed their planning of of flights to sold because so many people wanted to visit so soand South Korea so a hype could affect also the real industry and if we step back a little bit we see that the industry is really undergoing a change we come from decades where the production and development and information was centralized and only big entities could do something now we see that everything is distributed and it's available for all of us so if I want to to sell some something I can do it if I want to produce something it's no problem for me but this speeds up and makes much more complex and creates an exity again and there are people which see that we are coming from a planned capitalism now to a distributor capitalism so if you want to make something together we have to organize we have to find a way how to do things and you know there are things we can organize here on the soccer field or we can organize it like that and the funny thing is that you all can read this orc chart immediately so you know who's the most important person yeah and you know that that guy from Department 3 is more important than the guy from Department one isn't it yeah and you also know that department 2 that guy has a problem yeah so we are used to that sort of of Arc chart we know that and the underlying concepts are these the first concept is it's me and there's a box around me and it describes that box what I have to do what I'm allowed to do and why I kick my ass for yeah but the more important concept is this one the Box defines what's not me yeah what I what I leave what I'm not going going to do in future so the Box defines what's outside my responsibility and there's the concept number three that defines what's on the top and what's the bottom line so it's about social status it's about chain of command and the fourth concept is if I want to make a career if I'm successful I can climb up and up but I never can downgrade there's no way to downgrade so if I reach a position where I want to step back it's not allowed here to downgrade because it's about social status it's about money it's about responsibilities that's not possible so this kind of organization is let's say stable yeah and if we have a look on that kind of organization in the real world we see that this kind of organization is very well done for static or dynamic regions where things move slowly it's world of business cases in a business case you think you can anticipate things you think that you can plan and then control and check you think that you can have a terorism that you can have a stable job split that you can have stable interfaces so now what happens if we go to the regime of turbulent or even chaotic systems so we have multiple Futures it could be like this it could be like that and we don't know which one of the Futures it will be we have moving targets we don't have predict predictability so what happens if a today's system of organizing things comes together with turbulent tic systems so that's what's happening we call it metrix organization it's very simple you all know it because you have a competence line and you have a project View um that's not true because you also need a functional view of course you need a platform view um you should organize corresponding to the regions and to the customers I think and then there are these two guys who went to the same University so that's real organization yeah it's much more complex let's have a look on real processors so we we Consulting companies so it's it's beautiful we have programs for one year and we design we make interviews make workshops Etc then we write down all the processes but the system is much more smart than we are when we have documented in it systems they start to bypass the processes yeah when you're ready the world has changed so there is no such thing as stable processes you're just redeveloping process again and again so um we've had to we have to find a solution how to to adapt our way of organizing things with the real world and the problem is that we all start in doing more of the same so if we are successful here on the left side of course we know that it was a tremendously good system to have this sort of organization and of of or charts and processes in the in the past but now we have to find the way to break the pattern so don't touch a winning system is very true sentence but break the patterns we have to find out where to step into a completely new system the good news is there's only one fundamental pattern we have to break and this about the boxes in the past we defined the way we organize ourselves by defining what's inside that boxes it's about possession yeah what is mine what is yours and what's the separation between us and the pattern we have to break is that in future we have to look on the Rel relationships so it's not about what's inside a box but it's about how these boxes communicate correspond how they exchange ideas how they find decisions and if we take only the relationships between entities between people between teams that is called a network so if this is a new or chart it defines how people how entities are interrelated how they Exchange and the properties of such Network are quite cool because instead of stability you get flexibility instead of resource planning you get breathing organizations instead of transparency that a person knows and sees everything you just get local fit instead of standardization it's about knowledge transfer and we don't know strategy we just want the the in the organization itself is intelligent so what do we have to do if we want to manage a network first we have to manage communication most important shared governance how to bring decisions to life we have to define the wellness and the identity of the network why we are here why we're part of the same network we have to deal with real persons not with functions not with roles and we have to trust that's the currency of every Network networks are only working when there's trust and it's also something about love yeah you know it's about compassion it's about something more than just on the formal side so you have to decide where to put the intelligence in in the system or the people and if you put the intelligence in the people you can rethink a lot of all the old rules for example why does a person just have to have one boss why can't he have two bosses one for money one for something else or why can't you choose which boss is uh the right one why why shouldn't a person be in two teams at the same time why isn't it possible could could be absolutely necessary because of the job why do we have only one orc chart why don't we have an or chart for information and another for decision making and then a third one for something else why is it always a pyramid because in such a pyramid the intelligence of the organization is limited it's limited it's intelligence of the CEO which is limited why don't we have only why do we have only these Cascades of information well you all know that the information exchange is much more efficient if you drink a coffee with someone and why are standards so important is it really important that every piece of the organization does the same thing and we can also rethink leadership is leadership something like command and control or is it enabling and and trust and and guaranteeing that and if we have a look on all these XXX management things like change management I think important is not to manage the change but to create the ability to Ure the ability of an organization to be capable when change happens to do the right thing to find the right answers so it's about enabling it's about a capability so it seems that the networks could be an answer what is the right organization form if you go to the turbulent or chaotic systems and the things we talk about then are things like organizing it in a fractal way so we can scale in finding decisions in a distributed way not in a centralistic way where you have to aggregate all the information and then have limited knowledge about things we decide it's about using the intelligence of the complete network not only by few people it's about having more agile processes how to develop how to find out where we want to go and also to allow to have the courage that the culture in a network can be different somewhere else it hasn't to be the same culture everywhere but there's bad news also you lose control so control is gone you lose transparency you lose planning all that stuff that gives you Security today you lose it but there's also good news um when dity enters your life it's like having birthday daily on a daily basis so you get surprised every single day thank you very much [Applause]