Reaktor 2014

We invented management, we can re-invent it!

Hermanni Hyytil
@hemppah
Friday, March 28, 2014
Reaktor 2014
Or...
Friday, March 28, 2014

Reaktor 2014
Henry Mintzberg
MBA should stand for Maybe Best
avoided.
Friday, March 28, 2014
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Source: http://www.limebridge.com.au/page/Learning_Centre/Cartoons/
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Friday, March 28, 2014

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John Seddon
Traditionally we have learned to manage an
organization by managing its separate
pieces (sales, marketing, production,
logistics, service etc.). Managing in this way
always causes sub-optimization, parts
achieve their goals at the expense of the
whole.
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What is a system?
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A system is a collection of
interdependent parts.
What is a system?
Friday, March 28, 2014
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A system is a collection of
interdependent parts.
Parts and their interactions together
affect the qualities and capabilities of a
system.
What is a system?
Friday, March 28, 2014
Reaktor 2014
A system is a collection of
interdependent parts.
Parts and their interactions together
affect the qualities and capabilities of a
system.
A system must have a purpose.
What is a system?
Friday, March 28, 2014
Reaktor 2014
Source: http://www.ickr.com/photos/pcw/12257976334/ (https://creativecommons.org/licenses/by-nd/2.0/)
Friday, March 28, 2014

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Stefano Domenicali
Ferrari F1 Team Principal
I think the most important thing to
understand on our side is how to manage
the balance between electrical power, the
ERS, the battery, all these things have an
effect in terms of horsepower."
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An organization is always a purposeful
human-activity system. The problem is that
these two facts are not understood and/or
ignored.
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'Efcient' interactions in the organization
are not enough. Only when the interactions
are linked to its purpose they become
effective.
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Systems Thinking looks at relationships,
connectedness, the whole, the patterns
of a system, and context.
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What are system conditions?
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What are system conditions?
In organizational context system conditions
are direct or indirect results of the design
and management of work.
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Processes
Policies
Governance
Measures
Job co-ordination
Funding schemes
Targets
Incentive and
bonus schemes
Recruitment and out
sourcing strategy
Tooling and
technology
Project or service
delivery model
IT systems
Structure of business
domains or units
Capacity
allocation
Work batching
scheme
Project
Management
Ofce
Service design
Training
scheme
Ofce
locations
Partner
contracts
Team building
Meeting
routines
Communication
policy
Feedback
systems
Budgeting
scheme
Roles & Responsibilites
Functional work
design
Product
development
orthodoxy
Organizational
chart
Matrix/functional
structure
Decicion
making policy
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What is even worse is that a bad design
and management of work is often treated
as people problem: communication
issue, motivation issue or efciency
issue etc.
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John Seddon
The system disables performance. For
most managers this is hard to see. What
they see is people 'behaving badly'.
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Friday, March 28, 2014

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John Seddon
"It's axiomatic in organizations the greatest
inuence on behavior will be the way work is
designed and managed."
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In large organizations most of the variation
in performance is potentially inherent in the
system (and not in the people) because of
system conditions.
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W. Edwards Deming
Put a good person in a bad system and the
bad system wins, no contest.
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Gary Hamel
Right now, your company has 21st-century
Internet-enabled business processes,
mid-20th-century management processes,
all built atop 19th-century management
principles.
Friday, March 28, 2014
Reaktor 2014
Source: http://www.limebridge.com.au/page/Learning_Centre/Cartoons/
Friday, March 28, 2014

Reaktor 2014
John Seddon
Command-and-control managers like to
buy change by training and projects,
unaware that change really requires
changing the system and unaware that that
means rst being prepared to change the
way they think about the design and
management of work.
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https://www.vanguard-method.com/v1_lib.php?current=853
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Conventional Thinking Systems Approach
Top-down, hierarchy Perspective Outside in, system
Functional specialism Design Demand, Value, Flow
Separated from work Decision making Integrated with work
Outputs, targets, standards:
Relate to budget
Measurement Capability and variation:
Relate to purpose
Contractual Attitude to customers What matters?
Contractual Attitude to suppliers Co-operative, mutuality
Make # s & manage people Role of management Act on the system
Control Ethos Learning
Reactive, projects, by plan Change Adaptive, integral, emergent
Extrinsic Motivation Intrinsic
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Well functioning work design eats
coaching, empowerment workshops and
similar activities for breakfast. No contest.
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Thank you! Questions?
hermanni.hyytiala@reaktor.
@hemppah
Friday, March 28, 2014
Reaktor 2014
http://www.theoriesofwork.com
https://www.vanguard-method.com
http://www.systemsthinking.co.uk/
The_Germ_theory_of_Management.pdf
https://www.vanguard-method.com/
resource.php?res=540
Friday, March 28, 2014