N ew ways of organising: The networkorganisation as an important paradigm shift in the field of...

New ways of organising:The networkorganisation as an important paradigm shift

in the field of management -‘The Oranje case’

‘Professional Seminar Series’LSE - Social Psychology Department

Presentation 10 mars 2003

[email protected] or www.networkorganisation.net

telephone: 00 32 495 532 974

Copyright [email protected] The Professional Seminar Series - LSE 10/3/03

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Our heraldic device

“nothing slows down an organisation more than people who assume

that yesterday's best ways of thinking and acting

are also tomorrow's”


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social profit organisation scattered over a broad region fast pacing scaling up Paradigm - shift in the portrayal of disabled

persons radical change of subsidy-system from planned economy to free market

Oranje as a natural experiment the broad context


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The quest for

a ROBUST and FLEXIBEL organisational design

The ultimate question


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Metaphors describe a complex reality in a synthetic way

A metaphor is NOT an analogy or isomorphism It is a partial description

Metaphors: Traditional paradigm Non-traditional paradigm

The limited usefulness of metaphors and its generic features


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The roots of the old paradigm:Classical or traditional organisations

Taylor (1856 - 1919) was an industrial engineer. He was interested in the issue of how to increase efficiency in production processes. Ergonomics, assembly lines, the search for best practices…, the organisation as a clockwork. Defining the ONE BEST WAY led to standardisation.

Weber: (1864 - 1920) was a sociologist and tried to define the ideal organisation from a humanistic and social conscience point of view. He called the ideal organisation: the bureaucracy. The key-features were: avoiding arbitrariness, objectivity, rationality, specialised subdividing of tasks, hierarchy, written regulations, clear mandates. The organisation as a pyramidal structure.


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Traditional management models described with metaphor's

Traditional management approaches: Pyramidal organisation: when we want to stress the

hierarchical echelons => Traditional hierarchical organisation

Mechanical Clockwork => Bureaucratic organisation Matrix-organisation: when we focus on

specialisation and professionalisation. Co-ordination and steering: Command and control Leader: ‘general’ of ‘captain’


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Non-traditional management modelsdescribed with metaphors

The horizontal- or flat organisation. Empowerment Client and market orientation: org tipped over to the

side of the client and market Self-steering teams

The networkorganisation general systems theory Complexity theory Organisation as a complex adaptive system /evolution

theory The living organisation / DNA


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The connecting - phase1995 - 1997 - bringing together and horizontalisation


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The symbiotic-phase1997 - 1999 - connectivity led to and increased path-

dependency and inertia


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The co-evolutionary-phase1999-2001 internal connectivity is decreased in favour of external

connectivity


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M/E/I-flux is very important in function of co-evolution with the environment.

Environment is virtual infinite Evolution with what? Selection is necessary Outlining of Relevant context :

Definition:

“Relevant context is that part of the environment where the M/E/I-flux is of vital importance for the survival,

evolution and thriving of the unit. Therefore the local environment and local actors play a crucial role”

Co-evolution, relevant context and local context


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The co-evolutionary-phase1999-2001 internal connectivity is decreased in favour of external

connectivity


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Connectivity leaves trails In time these trails form patterns Connectivity leads to historicity The downstream evolutionary path of a team,

or unit of organisation is towards petrifaction

The downstream evolutionary path: the petrifaction-hypothesis

Risk: “Tjernobil” with regard to content


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The four co-evolutionary types


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Co-evolution: downstream evolutionary trajectory

(erratum) TRAIL BLAZING


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Downstream evolutioncompleted figure

+ feedback <-> - feedbackformation of best practicesoperat. learning + educat.exploration <-> exploitationreal time < -> historicity

+ feedback << - feedbackbest practices are standardlearning: educat + socializingexploration<< exploitationreal time << historicity

+ feedback >> - feedbacklittle organisational memory short term memory operational learning +++ exploration >> exploitationreal time >> historicity

+ feedback >> - feedbackbest practices are obsoletedisoriented learning disoriented explorationreal time >> historicity


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Part 2: The upstream evolutionary path


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Creating a ‘space of consultative possibilities’ Provoking new emergent syntheses by reassembling unit-teams Partial ‘decontextualisation’ of knowledge, methodology, vision Edge of Chaos : constantly pushing teams far from equilibrium

Heterogeneity of a team Feeling of urgency Recruitment of new co-workers who come from other sectors Recombination of teams team-mutations Strong client-oriented mentality Scarcity of means Leadership is more about process then about content: captains are out

of date Distributive fields of tension: ‘no internal firewalls’

Part 2: The upstream process - overview


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CONTROL•operational component•adaptive component

INFORMATION

• Selection, draw in, pass on....

STEERING:

When information is activated

KnowledgeAdaptation

Fitness

Distribution of information, steering and control


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Assumption: IQ is situated at the topvertical information-asymmetry: insufficient exchange of relevant

informationcentral top is monopolising information : selection, portioning and

passing onon the other hand : “field-info” is been monopolised by the rank

and file: “upward selling” (Kelly) ‘upstairs’ and ‘downstairs’ consolidate each others ignorance

Information-distribution Bureaucratic - hierarchical:


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Informatiedistributionnetworkorganisation

Information is easy accessibleDanger for information-overloadPull (call) ipv Push (broadcasting)


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Central top-down steering Only the top takes the external context

into account lower echelons carry out horizontal cross-section is irrelevant

Distribution of steeringbureaucratic / hierarchical


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Organisation is organised at the side of the client, market, local environment

the expression ‘self-steering’ is not a good term

360 °-steering : vertical and horizontal. Exchange relevant en valid information

and this in all directions (360°)

Distribution of steering in a networkorganisation


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central authority command and control legitimacy : position in the hierarchical structure

(org. Chart) and seniority several steps between relevant information and

the decisionmaking =>demotivated employees learned helplessness vulnerable: not much redundancy vulnerable in case of environmental evolutions

Locus of control/ influence bureaucratic / hierarchical


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Subsidiarity and empowerment “maximum 1 - step” - decision-rule content oriented “influencehierarchy” legitimacy : nearness to relevant

information and the capability to convert it into knowledge and adaptive actions.

Locus of control: network‘a mind is a terrible thing to waste’


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The organisation chart of the classic organisation


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The organization chart of aNetworkorganisation


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Quotations should refer to: ROOSE Herman, New ways of organising: the networkorganisation as a paradigm-shift in the field of management. Paper presented at The Professional Seminar Series’ - Social Psychology Department - London School of Economics, 10 mars 2003., London

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