XXI Century Organization
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Transcript of XXI Century Organization
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Wojtek Luciejewski
Warszawa, Osnabrück, Poznań, Ostercappeln (2001 – 2010)
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According to „What is wrong with our concept of organization? Shifting our organizational
metaphor from Machine to Nature” by Rob Paterson
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1850 1900 1950 2000
Eli
Wh
itn
ey –
inte
rch
an
ge
abili
ty o
f p
art
s
Sta
nd
ard
s o
f te
ch
nic
al
dra
win
gs, to
lera
nce
s, d
eve
lop
ment o
f
mo
de
rn m
achin
es
Fre
deri
ck
Ta
ylo
r –
sta
nd
ard
iza
tio
n o
f
wo
rk, th
e c
on
flic
t b
etw
ee
n e
mp
loye
es c
on
tra
ma
na
gem
ent,
stu
die
s o
f tim
e n
orm
s
Fra
mk
Gil
bre
th–
the
fo
llow
er
of
taylo
rism
,
stu
die
s o
f m
otio
ns, th
e b
egin
nin
g o
f
erg
on
om
ics
Lil
ian
Gil
bre
th–
the
use
of film
into
stu
die
s
of w
ork
, th
e h
um
an
itaria
nis
m
Hen
ry F
ord
–a
sse
mb
ly
line
s, flow
of
pro
du
ction
, str
ate
gy
Ed
wa
rds
Dem
ing
, J
ose
ph
Ju
ran
–S
tatistica
l P
roce
ss
Con
trol, T
QM
Ta
ich
iO
hn
o,
Sh
ige
o S
hin
go
–
Ju
st In
Tim
e, To
yo
ta P
rod
uctio
n
Syste
m, W
orld C
lass
Ma
nu
factu
ring
Ja
me
s W
om
ac
k –
Le
an
Ma
nu
factu
ring, L
ea
n E
nte
rprise
Eli
ah
uG
old
ratt
–T
he
ory
of C
on
str
ain
ts
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Excerpts from “The Chaordic Organization: Out of Control and Into Order” by Dee Hock, Founder and CEO Emeritus of VISA International
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• Open
• Multi-centric and
self-organizing
• Constitutional
• Decentralized
• Fractal
• Enabling
• Closed
• Top-down and
centrally oriented
• Corporate
• Centralized
• Departmentalized
• Controlling
Conventional Systems Emerging Systems
Excerpts from “The Chaordic Organization: Out of Control and Into Order”
by Dee Hock, Founder and CEO Emeritus of VISA International
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Sierpinski Triangle
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This fractal was created
through the use of one only
mathematical formula
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Formula: z(n+1) = [z(n)]2 + c
Subsequent approximations uncover different, but still similar features
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36
Fractal geometry permits us to understand, how nature creates all its forms,
which we can observe. The mountain formations, rivers, shores, the mammal's
lung, vegetation and the blood circulation system, but and the surfaces of
breakthroughs of metals as well as the growths and the falls of stock are
fractals copying on many smaller levels of scale the main pattern.
Fractals in effect behave like genetic algorithms permitting different species to
reconstruct effectively essential functions.
Let's take the example of a cloud - it constitute doubtless one the whole, but it is
"full of holes" like a sponge, because it consists of countless quantity of
microscopic drops of water and steam. It is separate the whole, but folded with
many smaller the wholes, also separate. If "we will cut out" small piece of cloud,
then we will receive something very similar to it.
Development and the strength of computers permits us at present to see and
better understand the law of evolution and what follows it laws of nature.
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Logical-rational approach (determinism).
Philosophers:
• Platon (427-347 B.C.)
• Aristotle (384-322 B.C.)
• Rene Descartes (1596-1650)
• Pierre Laplace (1749-1827)
Mathematics and physics till the 19th century
Frederic Winslow Taylor – theory of industrialefficiency
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New Approach – Sustained Disequilibrium
Giving up the thinking in ways of the linear extrapolation type or cause-and-effect chains
• Jules Henri Poincaré (1854-1912)
• Theory of Relativity
• Quantum Mechanics
• Theory on Infinite Sets – Georg Cantor
• Fractal geometry – Benoit Mandelbrot
• Complex Adaptive Systems
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1850 1900 1950 2000
Ralp
h W
ald
o E
mers
on
-philo
sopher,
leader
of
the
Tra
nscendenta
listm
ovem
ent
Ju
les H
en
ri P
oin
caré
–th
e p
recurs
or
of th
eory
of
rela
tivity
and the c
haos, cre
ato
r of philo
sophic
al
direction o
f conventionalis
m
Geo
rg C
an
tor
-–
the c
reato
r of set th
eory
; he u
nre
ele
d
conception o
f A
bsolu
te Infinity,
whic
h h
e identified w
ith t
he
God
Ste
ph
en
William
Haw
kin
g -
British
astr
ophys
ics, cosm
olo
gis
t, the
theore
ticia
n o
f physic
s
Wacła
w S
ierp
iński
–docto
r of philo
sophy,
one o
f cre
ato
rs o
f P
olis
h
math
em
atical s
chool, the c
onstr
ucto
r of th
e first fr
acta
l
Alb
ert
Ein
ste
in -
one o
f th
e b
est th
eore
tical
physic
ists
, cre
ato
r of specia
l and g
enera
l th
eory
of re
lativity
Ben
oît
B.
Man
delb
rot
-re
cogniz
ed a
s
the c
reato
r of fr
acta
ls a
nd fra
cta
l
geom
etr
y
Han
s-J
ürg
en
Warn
ecke –
the G
erm
an s
chola
r, p
resid
ent
of th
e F
raunhofe
r In
stitu
te,
ori
gin
ato
r of
fracta
l ente
rpri
se
Wło
dzim
ierz
Sed
lak –
the P
olis
h p
riest, c
reato
r of P
olis
h
school o
f bio
ele
ctr
onic
s a
nd the e
lectr
om
agnetic theory
of
life
Ed
uard
No
rto
n L
ore
nz –
math
em
aticia
n a
nd
mete
oro
logis
t, c
reato
r of th
eory
of chaos
Dee W
ard
Ho
ck –
the c
reato
r th
e V
ISA
Inte
rnational, first C
haord
ic o
rganiz
ation
Jo
hn
Bo
yd
-th
e c
olo
nel of th
e a
ir f
orc
es, cre
ato
r of lo
op
the O
OD
A a
nd the theory
of energ
y o
f shunte
rabili
ty (
the E
nerg
y th
e M
aneuvera
bili
ty)
Pete
r F
. D
ru
cker -
managem
ent
expert
, he w
as c
alled t
he f
ath
er
of th
e f
ounder
of
managem
ent
or
the p
ope o
f m
anagem
ent
Ch
arl
es D
arw
in –
one o
f th
e m
ost
import
ant bio
logis
ts o
f X
IX a
ge, auth
or
of th
eory
evolu
tion
Ch
arl
es F
. H
aan
el–
the f
ath
er
of
pers
onal develo
pm
ent,
auth
or
of
The M
aste
r K
ey S
yste
m
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Steady State
First Bifurcation
Chaos
Opportunistic Regime
“Edge of Chaos”
Conducive to Self Organizing Systems
Conducive to Complex Adaptive Systems
Second Bifurcation
Could apply to either a
functional or programmatic
designOrganizations
capable of
evolving and
adapting
Mono-stability:
evolution impossible
Diagram courtesy of Dr. Linda Beckerman, Director of Systems
Engineering, the ASSET Group, SAIC
Agricultural
revolution
Industrial
revolution
Information/ knowledge
revolution
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This landscape is changing itself with the function of time –
the peaks get lower, disappear and new ones emerge. The
practice shows that to be able to climb onto another peak it is
necessary first to get down into the valley.
Tim Mannon, the President of the Hewlett Packard Printer Department, once said: „The biggest single danger to our business is remaining for one year too long in the previous business which brought us success.”
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A second look will remind us that variety and
irregularity allow the resilience and creativity which
are a necessity for learning, which is a condition to
be able to survive.
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"This so as would be in the movie of slow-motion " - Boyd describing working inside loop OODA of the
enemy.
When you design, planning new strategy then keep the minimum speed of OODA loop, when you fight (with
competition) provide for maximum speed.
Action
(Test)
Action
Notice how the orientation shapes the observation, shapes the decision, shapes the action and in the
response is shaped by the reaction and different phenomena coming to our view-finder of feeling or
observation. Notice also, that the whole loop ( not only orientation) is the continuous, many-sided, implicit
process of expectation, understanding, correlation and rejection.
Observations
Information
from outside
Changing
circumstances
Observation
Decision
(Hypothesis)
Decision
Developing
interaction with
environment
Implicit
leadership and
control
Feedback
Implicit
leadership and
control
Developing
interaction
with
environment
Cultural
tradisions
Genetic
heritage
New
informationPast
experiences
Analysis
And
synthesis
Orientation
According to John Boyd, implicit (leaning on genetic
heritage, cultural traditions and past experiences)
communication accelerates undertaking decision and
beginning of action.
Feedback
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Primates
Chaordic (Fractal)
Enterprise
•Highly organized (fractal)
•High flexibility
•Optimal use of resources
•Influence on ecology
•Organic harmony of respective
functions
Vertebrate
Demand Flow
Organization
•Good structures and processes
•Flexibility and moderate adaptability
•Centralized flow of material and
information
The best way to predict the future is to create it - Peter F. Drucker
Multicellular organism
Functional
Organization
•High efficiency
•Sluggish
•Adjustment problems
•Success only in small niche
Workshop
Unicellular organism
•Low efficiency
•Undemanding
•Narrow range
Handicraft
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PhilosophyPhilosophy of efficient operation of organization: Offering to the Customers the optimal value of products and services (Best Quality, Lowest Cost, Shortest Delivery Time), acquired as a result of avoidance and constant liquidation of waste and simultaneously maintaining the unabridged adaptive ability to the changes within the environment and the market.
System
Management and information system based on: the Mechanism of Continuous Improvement of Organization (Enterprise Kaizen), Employees Empowerment (employee as a citizen), Standardized Work, Just-In-Time/Pull, Quality at the Source, Multi-Position Handling, Fractal Teams (businesses in business), Time Based Competition, Demand-balanced Manufacturing, Visual Management, Leadership instead of Command and Control, Appropriate Accounting.
Tools
Tools and means, concepts and devices: 12 Questions Survey, Myers-Briggs Indicator, Open Space Technology, Matrix of Skills, Deep Ecology, Catchball, Muda, Mura, Muri, Lean Promotion Office, Hoshin Kanri, „U” Cells, Jidoka, Heijunka Box, PDCA, One Piece Flow, 5 Why’s, Value Stream Mapping, Computerized Management Systems, Kanban, Kaikaku, SMED, 5S, 4M, 3P, Andon, TPM, A-3 Report, Automatic Line Stop, Poka-Yoke, Takt Time, Milk Run, Cross Dock, Jishuken, EPEI, FIFO, Mistake-Proofing, Final Cost, Yamazumi Board, 20 Keys, A – B Control, Chaku-Chaku, Capital Linearity, Labor Linearity, Change Agent, Sensei, OEE, PFEP, Progress Control Board, 7 Wastes, Waterspider; elements of TQM, Six Sigma, Theory of Constraints, DFT, BPR; Boyd’s loops, 3C, OST, RTSC, etc.
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• The development of technology permits automation of production processes and the widespread use of robots .
• The world trend is shifting the weight of management from area of production to preparation of this production.
• The preparation of production has in modern enterprise the key meaning.
All actions in the Value Stream( the successive mapping, present states and the planning of the target states) should therefore focus mostly on this area.
ValueValue
Stream
FlowJust-in-Time
Pull
BoardFinances
Marketing
Administration
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CLASSICAL
ARAB
VATICAN LATINAMERICAN
RUSSIAN
FEMINISTMOVEMENT
POLISH
COLONIALAFRICAN
AMERICAN
CHINESE
ITALIAN SAP AG
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Service
Production
Production
Production
ProductionProduction
Production
Production
Production
Production
Engineering
Supply
Quality
Control
Legal
Services
Operational
(Combat) Fractal
Supportive Fractal
Specialist Fractal
Reconnaissance
Fractal
Superior Fractal
Sales
MaintenanceInvestment
Board of
Directors
Administration HR
Customer Marketing
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Value Stream M
Fractal M1(Machining)
Fractal M2(Preassembly)
Fractal M3(Final Assembly)
Value Stream S
Fractal S1(Machining)
Fractal S2(Preassembly)
Fractal S3(Final Assembly)
Cooperation within Value Stream on the principle - „Customer – Supplier”.
Cooperation between similar Fractals in cases of the demand fluctuation.
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Cooperation between Fractals within a scope of available resources
(machines, workers, applied technology etc.).
Value Stream A
Fractal A(Fractal is able to select members and resources according to its
needs including industrial engineers, supply employees etc.)
Value Stream B
Fractal B(Fractal is able to select members and resources according to its
needs including industrial engineers, supply employees etc.)
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Fractal CSkills from 16 to 28
Fractal ASkills from 1 to 12
Supportive process- Material
Supportive process- Information
Supportive process- Tools
Fractal BSkills from 8 to 20
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Accounts
Receivable
Company
Accounting
Purchase,
Sales and General
Ledgers
Controlling
Cost
Accounting
Accounts Payable
Rough Capacity
Planning
Production
Work Orders
Material SupplyWork Orders Control
Roll-on Production Plan
Effectiveness Measurement
Detailed Capacity
Planning.
Master Planning
Schedule
Material and Sub-
assemblies
Requirements
Planning
Roll-on Sales Plan
(Orders on hand, Forecast)
Business PlanFinancial
Management Database Database
Strategic
Management
Operational
Management
Shop Floor and
Purchase
Management
Production
Planning
Manufacturing
resources
Bills of
Material
Departments
Work
Centers
Routings
Costing Elements
Index of:
Material,
Subassemblies,
Products.
Planning data:
lead times,
Batch Sizes
etc.
Stock Records
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Accounts
Receivable
Company
Accounting
Purchase,
Sales and General
Ledgers
Controlling
Cost
Accounting
Accounts Payable
Rolling Sales Plan
Strategic Business
Plan
Finance
ManagementDatabase The Board
Strategic
Management
Dispatch/
Customers
Feedback
Operational
Management
Index of:
Material, Subassemblies,
Products, Lead
times, Batch Sizes, etc.
Stock Records
Production Planning:
Manufacturing
resources, Bills of
Material, Departments, W
ork
Centers, Routings, Costin
g Elements
Final Quality Control
Effectiveness MeasurementV
alu
e S
trea
m
Customer
Rolling Production
Plan
Sa
les
Pro
du
ctio
n P
lan
nin
g
Pu
rcha
se
Qu
alit
y A
ssu
ran
ce
Service
Pro
du
ctio
n
Visual
Management
Work Orders
Work Orders Control
Desig
n
Va
lue
Stre
am
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The appraisal of the needed skills
of team ( the scale from 0 to 5)
Members of the teamSkills to achieving
The difficulty of definite skill
( the scale from 1 to 5)
The possessed skills – green color
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