The document describes a case study of redesigning the organizational structure of a technology firm in Germany from a traditional, top-down structure to a decentralized, networked cell structure guided by BetaCodex principles. In workshops, employees redesigned the structure, breaking it into market-facing regional cells, product-focused cells, and two support cells providing information and organizational services. The new design aimed to empower business teams, integrate previously separated functions, and make the market the primary driver of the organization rather than internal departments. It created a simple, scalable structure intended to improve coordination, responsiveness to customers, and financial performance.
01 - Initiating a Lean Six Sigma Project - ESTIEM Lean Six Sigma Green Belt C...ESTIEM
78 slides•1.4K views
The document discusses Lean Six Sigma concepts including defining value-adding work, types of waste, and key components of a Lean Six Sigma project charter. It provides examples of value-adding versus non-value adding processes and covers the seven most common types of waste. Additionally, it explains that a project charter helps clarify the focus and importance of a project and typically includes elements such as the problem statement, goals, scope, team, timeline and deliverables. The document is intended for an instructional session on Lean Six Sigma fundamentals.
Lean Business France provides lean management consulting services to help companies improve competitiveness through lean principles. They have over 20 years of experience implementing lean across manufacturing, services, and supply chains globally. Their services include lean assessments, training, workshops, and ongoing support in areas such as process optimization, problem solving, leadership, culture change, and supply chain management. They take a holistic approach focused on both technical tools and developing people and culture. The company is based near Toulouse, France but works with clients internationally.
The document outlines an approach to understanding client needs and delivering solutions to them. It discusses drawing ideas from proven sales techniques and business research to help clients develop their business. The workshop aims to have an interactive discussion to share ideas and develop solutions. It emphasizes understanding problems, implications, and client motivations in order to present relevant and beneficial solutions through a consultative two-phase approach.
Jishu-Hozen or Autonomous Maintenance into the Total Preventive Maintenance or TPM. Volume 4 of Total Preventive Maintenance & Total Productive Maintenance description.
Jamie Flinchbaugh, author of "Hitchhikers Guide to Lean," shares thoughts on the evolution of lean thinking.
Published with permission from the author.
This document provides information on value stream mapping (VSM), including:
1. VSM is a visual tool that maps the flow of materials and information needed to bring a product to a customer. It identifies value-added and non-value added activities to improve process flow and eliminate waste.
2. There are three main types of value streams: raw material to finished product, concept to launch, and order to cash.
3. A current state map visually depicts the actual state of the current process flow, including metrics like cycle times and changeover times.
4. A future state map is then created to design an improved process flow based on eliminating waste and improving flow, with goals and an
El documento describe los sistemas MRP y MRP II, que son sistemas de planificación y administración de materiales asociados a software que programa la producción y controla los inventarios. MRP planifica las necesidades de compra de materia prima mientras que MRP II integra todos los departamentos de la empresa para planificar los recursos necesarios y adaptarse mejor a la demanda del mercado.
Perfect phrases for customer service angry customersmindylcarter
133 slides•61.3K views
This document provides guidance on customer service techniques for handling complaints and difficult customers. Some key points:
1) It's important to listen to customers' complaints without being defensive and understand their perspective. Phrases like "that's interesting..." can encourage customers to explain further without accusation.
2) Apologize for any problems or inconvenience, assure customers you want to resolve the issue, and thank them for bringing it to your attention.
3) Remain calm and sympathetic; get the full details of the problem without blaming others; offer solutions and end on a positive note thanking them. Treating customers with respect and focusing on solutions is key to resolving complaints.
Value Stream Transformation: Achieving Excellence through Leadership Alignmen...TKMG, Inc.
42 slides•8K views
To subscribe: http://ksmartin.com/subscribe
To purchase the book: http://bit.ly/VSMbk
These are slides from a talk given on 1/8/14 in San Diego, California at SME Connect's Operations Roundtable.
Too many organizations today suffer from silo-centric behavior and intra-organizational conflict. And yet most don’t understand what’s holding them back from achieving outstanding performance. This is where Karen Martin’s new book Value Stream Mapping comes into play.
Value stream mapping can unleash the full potential of an organization and deliver greater customer value, increased profit margins, and create fulfilling work environments.
In this talk, Karen discussed how to:
• Prepare and engage your leadership team in the transformation process
• Gain a deep understanding about your current work systems and the related barriers to delivering value
• Design a future state that enables outstanding performance on all fronts
• Adopt a new design and lay the foundation for continued improvement
Talleres resueltos paso a paso de modelos de transporte.#metodohungaro #metododeindices #investigaciondeoperaciones #ingenieriaindustrial. #vogel método de aproximación de Vogel, esquina noroeste #costominimo MAV. #MODI método modificado de distribución. Principios basicos de los sistemas de producción. investigación de operaciones 1. Ingeniería Industrial. Planeacion y control de la producción.
El documento presenta un problema de programación lineal entera (PLE) para maximizar la utilidad de una compañía que fabrica mesas y sillas. Se formulan las variables de decisión, la función objetivo y las restricciones del modelo PLE para representar el problema. El modelo busca maximizar la utilidad total en función del número de mesas y sillas producidas, sujeto a restricciones en el uso de horas de trabajo y madera disponibles.
Getting started with Process Mining also means to motivate the Management Board to do it. Of course there are always a lot reasons not to start with Process Mining - Here you have some hints how to prepare your mindset for a pitch in front of the management board.
This document contains 6 case studies describing organizations undergoing agile or lean transformations. The case studies outline challenges the organizations face and questions an agile coach might address to help with the transformation. The case studies cover companies in various industries including automotive, databases, banking, healthcare, and restaurants. Kanban and lean principles applied in a healthcare setting are also detailed. The document provides context to help an agile coach develop engagement strategies and initial action plans to assist the organizations.
This document outlines steps to find product-market fit, including defining early adopters and determining the best segments to target. It introduces the FOCUS framework, which provides concrete steps to validate goals through product delivery at scale. These steps include finding early adopters, offering tests, currency tests, utility tests, and scaling. The document also describes exercises to declare validation victories, generate new product ideas, role-play customer segments, and score segments to determine which to initially target. The overall aim is to provide a clear path and tools to efficiently test ideas and reach product-market fit.
Turn Your Company Outside-In! A paper on cell structure design, part I (BetaC...Niels Pflaeging
41 slides•17.3K views
Paper on the innovative "networked cell structure design" approach - an alternative organizational design approach to tayloristic, functional, and process-oriented designs.
11th paper from the BetaCodex Network, on organizational structures and how they interact. This paper was previously entitled "The 3 Structures of an Organization". It was renamed February 2013.
The Double Helix Transformation Framework for BetaCodex transformation and pr...Niels Pflaeging
19 slides•15.6K views
This document outlines a "Double Helix" transformation framework for profound organizational change. It combines Kotter's 8-step change model for organizational transformation with Bridges' model of personal transition. This addresses both the organizational and individual dimensions of change. The framework intertwines these processes to create a holistic approach where transforming the organization and transforming individuals are inseparable. It also discusses using tools like "process temperature" to guide the systemic and nonlinear transformation journey.
Organize for Complexity - keynote at Dare Festival 2014 (Antwerp/BE)Niels Pflaeging
39 slides•19.5K views
This document discusses organizational transformation and different phases of an organization's development. It begins with a matrix that places different types of organizations in sectors based on their level of dynamism and market characteristics. The rest of the document then discusses various models of organizational structure, culture, value creation, and transformation, contrasting traditional hierarchical and bureaucratic approaches with more adaptive approaches oriented around social networks, purpose, and complexity. It advocates an approach focused on connectedness, responsibility, leadership instead of management, and other principles outlined in the "Beta Codex".
Karmaşıklık çağındayız. Bugünkü insan kaynakları uygulamaları karmaşıklıkla baş etmekte başarılı değil. Karmaşıklığa uygun insan pratiklerine ihtiyacımız var.
Organize for Complexity - keynote at Agile Turkey Summit 2014 (Istanbul/TR)Niels Pflaeging
37 slides•5.7K views
This document discusses organizational transformation and different phases of an organization's development. It describes three types of transformations that organizations undergo: 1) bureaucratization as they grow older, 2) deepening of processes, and 3) beta transformation involving differentiation and integration. Younger organizations are typically in a startup phase focused on pioneering, while older organizations transition through alpha and beta phases involving increased bureaucracy, deepening, differentiation and integration. The document also references theories on human motivation and nature, and contrasts traditional hierarchical and control-based approaches with more adaptive and purpose-driven structures.
This document outlines the recommended format and structure for a business plan presentation, including the following sections: Overview, Market, Product/Service, Technology, Distribution, Competition, Management, Financials, Capitalization, Risks, and Summary. The Market section is considered the most important and should comprise 4-5 slides to clearly define the market opportunity and fit for the company's product. Each section should stand alone and present a clear hierarchy of messages. The goal is to concisely communicate how the company will become the leader in an emerging large market.
The document provides information about an enterprise systems and modelling course, including its goals, schedule, literature, teachers, and examination requirements. The overall goal of the course is for students to understand analysis, design, and use of intra- and inter-organizational enterprise information systems through enterprise modeling. Key activities include lectures, lessons, and a group project to design an information system for a startup home healthcare company using enterprise modeling techniques. Assessment includes a written exam, project assignment, and paper evaluation.
1) The document discusses competitive intelligence and provides an overview of the process involved, from planning to data collection, analysis, communication, decision-making, and feedback.
2) It describes each step in detail and provides examples. The planning phase involves defining key intelligence topics and questions. Data is collected from various primary and secondary sources. Various analysis methods are used including SWOT and Porter's Five Forces. Results are communicated in standard formats.
3) Success requires the right organizational framework including proper resources, systems, organization, costs, culture and skilled people. Key success factors include management support and taking a systematic, structured approach.
A Pattern Language for Strategic Product RoadmappingLuke Hohmann
10 slides•6.2K views
Here is the pattern language for developing a market driven product roadmap from my book "Beyond Software Architecture". You can use this format in conjunction with the Innovation Game® Prune the Product Tree to create great Product Roadmaps.
Complex selling in today's global economy.pdf'Cincom Systems
12 slides•402 views
The document discusses the challenges that companies face in selling complex products and services in today's global economy. Specifically, it addresses issues such as sales channels struggling to understand complex products, the high costs associated with training sales reps, and heavy reliance on internal experts. It also outlines business drivers requiring companies to improve their front office functions, including cost containment pressures, increased competition, demands for customized offerings, and shorter product life cycles. The document evaluates some attempted responses to these challenges, such as simplifying product offerings, pursuing sales automation, and focusing on mass customization, concluding that these approaches are ultimately flawed and self-defeating.
Product Line Economics:
Markets, Products, Reuse Potential --- how to benefit from PL and when not to do it..
These are the slides for a course at JKU Linz. It gives a short (<1 hour) overview of various aspects of the business aspects of Product Line Engineering (PLE) ranging from incentives to do PLE, factors that impact the decision all the way to when not to do PLE.
Comparison of Project Management in IT Service versus Product DevelopmentDr. Amarjeet Shan
3 slides•194 views
The document compares IT project management in IT service delivery versus product development. In IT service delivery, projects focus on clearly defining the service, customers, delivery parameters, and benchmarks to ensure service level agreements are met. In contrast, IT product development requires understanding target customers, selecting development lifecycles, defining the product utilization and lifecycle, and creating supporting ecosystems to provide a complete user experience. While both require defining requirements, IT service delivery emphasizes consistent delivery while product development focuses on building usable, reliable, and valuable products within an ecosystem.
Evolution of Dynamic Capabilities and Alliance: Case of Hilton MBA Futuris
52 slides•1.6K views
This document provides an overview of dynamic capabilities and alliances using Hilton as a case study. It discusses the evolution of Hilton's business model and dynamic capabilities over time through phases of owning hotels, adding value through services, developing franchising, focusing on marketing and branding, and adapting to digital technologies. The document also examines the development of Hilton's alliance portfolio and the perspectives of smaller players. It aims to understand Hilton's success in evolving dynamic capabilities and alliances over the last century.
Organize for Complexity - Keynote by Niels Pflaeging at Regional Scrum Gather...Niels Pflaeging
38 slides•204 views
The document announces a regional Scrum gathering in Belgrade from November 16-17, 2022 hosted by Niels Pflaeging of redforty2.com. The event will focus on how to create highly decentralized, networked cell structure organizations to organize for complexity. It will provide information on how to establish these types of organizations everywhere and quickly.
Die Erfindung zweier Managements (BetaCodex17)Niels Pflaeging
28 slides•947 views
Wie Follett und Taylor die beiden Schulen der Organisationslehre
ins Leben riefen - und was seither geschah.
BetaCodex Network Associates
Niels Pfläging | Silke Hermann
BetaCodex Network White Paper No. 17 | April 2021 l betacodex.org/white-papers
Deutsche Version April 2022. Diana Mock | Hans Fischer-Schölch | Elisabeth Sechser
The future of organizational learning is discursive & self-organizedNiels Pflaeging
8 slides•326 views
by Silke Herman and Niels Pflaeging.
Workplace learning is not a particularly thrilling adventure these days: Learning in organizations overwhelmingly relies on aged and worn-out formats that produce little learning or impact. The tools in use are often not fit for our time – in terms of content, or learning method, or technology – or all three combined. One cannot help but notice that in the reality of organizations, by and large, Learning & Development (L&D) is a pretty dull affair, clearly lacking innovation. In this paper, we will discuss how that is bound to change. We believe that workplace learning can be as engaging as Maria Montessori envisioned child learning to be, over 100 years ago and as humane, effective and conducive as Ken Robinson demanded in his world-famous TED talks a few years back. Sure, the current reality of corporate learning may look bleak, but there are now signs of a way out of the L&D misery in which most companies find themselves. One of these signs is the platform created by EdTech start-up disqourse.
The small group miracle: Where learning & performance meetNiels Pflaeging
8 slides•150 views
This document discusses how learning occurs at the individual, small group, and organizational levels. It argues that true organizational learning requires disciplined learning within small groups of 4-6 people. When many small groups ("Circles") engage in discourse learning within an organization, their learning experiences inevitably interweave. Intensive discussion within Circles produces both individual and shared knowledge and insights. Participants feel compelled to discuss and resolve ideas with others, leading to spillover of discussions to the larger group and organization. By coupling individual, small group, and organizational learning through parallel Circles, organizational impact and change can be achieved.
Technology, didactics, content: The triad of discourse learningNiels Pflaeging
15 slides•114 views
This document discusses the importance of combining technology, didactics, and content for effective organizational learning. It notes that while many learning technologies focus on individual knowledge transmission, complex problems require collaboration and shared understanding. True impact comes from coupling knowledge with mastery and application through learning opportunities based on social interaction and discourse. For organizational learning to develop high impact and do so quickly, an integrated triad of technology, learning methods (didactics), and subject matter (content) is needed. A one-sided focus on technology alone risks limiting its impact to entertainment and single events rather than sustainable learning and pattern change.
The Systems Architect Diary - Availability and ReliabilitySherif Rasmy
6 slides•28 views
The diary provides a concise description of availability and reliability as key aspects of system performance. Availability measures a system's ability to remain operational despite faults, while reliability focuses on individual components' durability and fault tolerance. Strategies like hardware/software redundancy, clustering, and replication enhance fault tolerance, ensuring robust and resilient systems capable of quick recovery and sustained operation.
From Tool to Autonomous Agent - Investigating the Present and Future of AI as...manorius
11 slides•45 views
In 2017, I explored the concept of AI artistic agents, examining the interplay between artificial intelligence and creativity. Building on this work, this paper delves into the past, present, and future of AI, investigating the computational tools artists use and the works they create. It traces the history of technology in the arts and attempts to glimpse into the future of AI by analysing the trajectory of the technology and the evolving practices of computational artists.
With recent rapid advances in AI, we are now even closer to the holy grail of artificial general intelligence—the point in time when machines begin to think for themselves. This exploration situates itself at the cutting edge of this transformation, linking historical context with the possibilities of the future.
TrustArc Webinar - Data Privacy in the EU_ What You Need To KnowTrustArc
11 slides•317 views
The European Union has created a so-called “Brussels Effect” by establishing the General Data Protection Regulation (GDPR) in 2018 – considered by many as the most complex data protection law in the world. Now, in the face of booming AI applications, the European Union has established the AI Act. It went into force in August 2024, with a graduated approach, becoming the first legislation of its kind in the world.
Next, the European Union (EU) Data Act will take effect on September 12, 2025. This Act is a key part of the EU's Data Strategy and will introduce new rules for data access, sharing, and portability. That’s not it: the Digital Operational Resilience Act (DORA) will come into force on January 17, 2025. This regulation creates a binding, comprehensive information and communication technology (ICT) risk management framework for the EU financial sector.
What are the EU AI Act and Data Act and how will they be enforced? How will data privacy evolve in the EU in 2025 and how to stay compliant?
Our panelists will guide you through the intricacies of EU data privacy laws, clarifying legal frameworks and compliance requirements.
This webinar will review:
- The evolution of data privacy laws in the European Union
- How the GDPR and AI Act have advanced the need for data privacy protection and governance
- What’s next for personal data processing, AI governance, and enforcement of the EU data privacy laws
- What you should include in your 2025 data privacy roadmap
Understanding SBOMs: An Introduction to Modern DevelopmentAnchore
31 slides•177 views
This is the first session in our Software Bill of Materials (SBOM) learning series for technical minds. This live webinar introduces the concept of SBOMs and the steps need to generate and manage them. We provide the fundamentals of SBOMs and address their critical role in today's modern software development landscape.
Starting with the basics, we introduce SBOMs with real-world examples to demonstrate why software component transparency is crucial for software supply chain security.
Our experts, Alan Pope, Josh Bressers and Christopher Phillips will cover the following:
- Definition of SBOM standards and background
- How to generate and automate SBOMs
- How to integrate SBOMs into existing infrastructure
- How SBOMs protect against the next Log4j
Agentic RAG and Small & Specialized Models v1.6.pptxDamien Berezenko
17 slides•73 views
🚀 2025: The Year of Specialized Models and Agents 🛠️
Businesses don’t need AGI 🤖 or massive, costly LLMs—they need efficient, domain-specific solutions. 🌐 The future lies in small or specialized models optimized for tasks like sentiment analysis, SQL generation, or embeddings, offering better performance and lower costs. 💡 Multi-model RAG pipelines will dominate, integrating tailored models for specific needs. Even major providers like OpenAI are shifting focus from mega-models to cost-efficient, practical solutions like smaller multi-language models 🌍 and advanced agents 🕹️. It’s time to embrace AI that’s fit for purpose, not just powerful. 🎯
✨ Key Takeaways:
- 🔄 Explore alternative LLM-inference providers.
- 📐 Leverage small and specialized models for specific tasks.
- 🔗 Combine multiple models in a solution.
- 🔍 Trace & evaluate RAG results for accuracy.
- 💰 Businesses need affordable solutions, not AGI.
👨💼 Smart AI, tailored for real-world needs. 🌟
By Damien Berezenko
Agentic RAG and Small & Specialized Models v1.6.pptxDamien Berezenko
Turn Your Company Outside-In! A paper on cell structure design, part II (BetaCodex09)
1. Make it real!
BetaCodex Network Associates
Niels Pflaeging, Valérya Carvalho, Gebhard Borck, Andreas Zeuch
BetaCodex Network White Paper No. 9. Dec 2008
TURN YOUR
COMPANY
OUTSIDE-IN!Part 2. How to build the decentralized network organization,
guided by BetaCodex principles.
A paper on Cell Structure Design
2. In the first part of this paper, we...
• ... explained the rationale for a different, non-tayloristic, way to structuring
organizations – leading to the question of how to build organizations capable of
(1) accommodating human beings, and
(2) competing in today's dynamic and non-linear market-places.
• ... described why previous ideas such as systems theory failed in creating
significant momentum for change in organizational practice, and outlined the design
principles that decentralized, networked cell structure organizations must adhere to.
• ... detailed the ingredients of such structures, which include
(1) a sphere of activity, (2) network cells, (3) strings and (4) market pull.
• Finally, we described some of the consequences of applying such a design,
highlighting key advantages as well.
In this, the 2nd part of this paper, we describe two cases from our consulting practice,
in which tayloristic command and control organizations were redesigned as
decentralized networks.
Welcome to the second part of this paper.
4. Case Study “Technology firm from the German Mittelstand”:
An overview over the company
The case company in a nutshell:
• Producer of household equipment, sold to local resellers and craftsmen. Four different
product lines, several different “sales channels“, dealt with by different teams and areas
• Approx. 350 people, age of the firm: approx. 20 years
• Strong presence in Germany and Italy, weaker presence in other countries. Two production
sites – one in Germany, one in China.
• Some technology and production leadership, in a strongly commoditizing market – which
creates pressure to internationalize the business.
• Huge growth potential, but in the past, internationalization hindered by internal quarrels,
lack of coordination, and a culture of internal politicking
• Long history of “feeble” financial results, and, occasionally, dramatic financial losses,
compensated for by the owner family.
• A large number of product engineers controls innovation and other processes and thus
acts as a powerful function.
6. What the company looked like
• Structure:
! 5 directors: “Technology”, “Finance”, “Production”, “Sales Germany”,
“Sales International”
! 20 middle managers, many departments with massive coordination problems.
Strong link between salaries and job titles.
• Example: The firm's sales force in Germany
Previous structure:
- 29 sales force mavericks (whose decision making powers has been eroded over time)
- 15 field engineers
- 15 back-office sales employees
...neatly divided into different departments, with different bosses, targets and interests.
7. The case study: what the organizational structure looked like
Director
Technology
Engeneers,
Developers
Director
Sales
Germany
Admini-
stration
Assis-
tant
Sales large
equipments
Technical
Hotline
Projects &
Offers
Complaints
Marke-
ting/ CI
After-Sales
Services
Sales
office
Cont.
educa-
tion
Customer
Services
Region
1 & 2
Region
3 & 4
Region
7 & 8
Region
5 & 6
Region
9 & 10
Region
11 & 12
Region
14 & 15
Region
13 & 14
Region
16 & 17
Region
18 & 19
Region
22 & 23
Region
20 & 21
Region
24 & 25
Region
26 & 27
Region
29
Region
28
Director
Production
Production
Leader
Assis-
tant
Qualit
y
Material
Planning
Sales
OEM
Process
optimization
Toolings &
Maintenance
Purchasing
&
Disposition
Design
Pro-
duction
Assem-
bly
Work
planni
ng
Logistics
IT HR
Control-
ling
Accoun-
ting
Assis-
tant
Tele-
phonists
CFO
Director
International
Admini-
stration
Assis-
tant
Sales
OEM
Sales large
systems
Technical
Hotline
Projects &
Proposals
Complaints
Sales
Marke-
ting
Internal sales
services
Branch
I
Branch
II
Branch
IV
Branch
III
SalesSales Sales
Central sales
support
Cont.
Educa-
tion
Customer
Services
8. The case study – putting the pieces of the previous
tayloristic organizational structure together
CEO
Director
Technology
Engeneers,
Developers
Director
Sales Germany
Admini-
stration
Assistant
Sales large
equipments
Technical
Hotline
Projects &
Offers
Complaints
Marke-
ting/ CI
After-Sales
Services
Sales
office
Cont.
education
Customer
Services
Region
1 & 2
Region
3 & 4
Region
7 & 8
Region
5 & 6
Region
9 & 10
Region
11 & 12
Region
14 & 15
Region
13 & 14
Region
16 & 17
Region
18 & 19
Region
22 & 23
Region
20 & 21
Region
24 & 25
Region
26 & 27
Region
29
Region
28
Director
Production
Production
Leader
Assistant Quality
Material
Planning
Sales
OEM
Process
optimization
Toolings &
Maintenance
Purchasing &
Disposition
Design
Pro-
duction
Assembly
Work
planni
ng
Logistics
IT HR
Control-
ling
Accoun-
ting
AssistantTelephonists
CFO
Director
International
Admini-
stration
Assistant
Sales
OEM
Sales large
systems
Technical
Hotline
Projects &
Proposals
Complaints
Sales
Marke-
ting
Internal sales
services
Branch
I
Branch
II
Branch
IV
Branch
III
SalesSales Sales
Central sales
support
Cont.
education
Customer
Services
And where does the market fit into this design?
Answer: It simply doesn´t!
9. The case study:
What was done? “The week of truth“
Status of the project, roughly 12 months into the transformation initiative
1. There is a strong guiding coalition that sustains the transformation.
2. All over the organization, “profound change“ is considered relevant, there is a sense of urgency.
3. Different groups in the organization (task forces) already work on specific changes.
3.
Develop
change vision
and strategy
4.
Communicate
for understan-
ding and
buy-in
5.
Empower all
others
to act
6.
Produce
short-term
wins
7.
Don´t
let up
1.
Create a
sense of
urgency
2.
Pull together a
guiding
coalition
Phase in %
10. The case study:
What was done? “The week of truth“
Approach to redesign
• Three 1-day “cell-formation” workshops run
in early 2008, about 1 year after the start of
the BetaCodex initiative, held over the
course of a single week
• Three groups formed:
1. Market, 2. Product, 3. Central Services
• About 60 participants (approx. 20% of the
firm's employees) representing all parts of
the organization
• from all areas of the firm.
• from all hierarchical levels.
• Workshops designed to break up traditional
departments and hierarchical power;
the workshops start the creation of the new,
networked, organizational structure
Workshop execution:
Phase 1 – Speaking a
common language
Phase 2 - Recognize
& describe current situation
Phase 3 – Think and describe
networked cell structure
12. Group exercise during phase 3 of each workshop:
“Think and describe decentralized networked cell structure“
Some of the design principles applied (see part I of this paper for details):
• The market is the boss (“outside“ rules!)
• There are four kinds of building blocks of a devolved organization:
! A sphere of activity,
! network cells,
! “strings“,
! “market pull“.
• All “key tasks“ performed in the old organizational structure
must also be performed in the new structure (“business must continue!“)
• A cell is not a department: It is functionally integrated, not functionally divided!
A cell has clients - external or internal – to which it provides services.
And it has at least 5 team members, so that actual team spirit and peer pressure can strive.
• Every cell as well as the entire organization applies the
full set of 12 laws of the BetaCodex.
14. Defining cells and their roles
“Cell1”
Defined during initial workshop:
• Cell name and type -
permanent or temporary
(if project or task force related)
• Roles - functions and duties
• Clients: Who are the cells´
customers, internally or externally?
Defined later:
• Team members:
Who is part of the cell team?
• List of products/services
and pricing for internal services
• Reporting: P&L statement,
internal and external benchmarks
“Sphere of Activity”
“Market”
15. The solution identified during the design workshops, 1st part:
“R-cells“ - empowered business teams located in the periphery
• All customer responsibility would reside within the so-called Regional cells, or R-cells,
which are responsible for “everything related to the customer“ – integrating a wide array of
previously separated functions (now: roles). The previous departments cease to exist.
• There would be six such integrated, virtual regional business teams for the German market
and another two cells for other countries and regions, subject to cell division whenever
acute.
• Instead of different areas and people aiming at different customer segments and channels
– often determined by product lines, now, regional teams would
! decide themselves on the customer segments they would target,
and on their staffing.
! each have a full P&L account, being ranked monthly among themselves in financial
indicators, and paying other cells of the network for their services and products
through an internal pricing system.
• Support cells: From the previous departmental structure with “market focus“, only two
market-related key roles would remain separated from the newly integrated R-cells. These
roles are “over-regional marketing“ (of which, as one organization member said, “very
little should be done in the future organization”), and market-related training.
These two roles would be integrated in a cell called ”Central Market Services“
16. Market
Region
South-
West
Region
North-
EastRegion
South-
East
Region
Central
Region
America
& Europe
Cell structure chart for a BetaCodex organization, I:
R-cells as “mini-firms” within the firm
Region
North
Region
West
Region
Italy
Region cells (“R-cells”)
• Total business responsibility
(“The R-cell is the firm”)
• All products, all channels
• Clients: Full ownership of all external
clients in their regions. No exceptions!
• Roles: Planning & offers, Sales,
After-sales services, Sales office,
Hotline, Complaints
“Market”
“Sphere of Activity”
Central
Market
Services
Central Market Services
• Overall Marketing/CI
• Training
Clients: All R-cells
17. Solution identified during the design workshops, 2nd part: “P-
cells“ - from fragmented feuds to integrated product centers
• In the new design, the strict separation between research and development, production
and supply chain departments is totally removed.
• The consequence: More humble production people would be teaming up with product
engineers, which had previously been operating their own little kingdom, frequently
blocking change and responses to customer demands.
• Full responsibility for products throughout product life cycles goes to product cells. In the
case of this company, several P-cells (e.g. P-cells 1-4, and 5-6) would be dedicated to the
same family of products, and “compete” with each other within the firm.
• Internal transfer prices will never include “margins”. All internal network cells sell their
products and services on a pure cost basis, without retaining a profit. Profit is thus only
generated by the R-cells.
• Support cells: Two additional specialist support teams for P-cells would be created: one
responsible for “Equipment” (providing tooling and facility management), the other for in-
and outgoing logistics.
18. Market
Product
Cell 4
Product
Cell 5
Product
Cell 6
Product
Cell 7
Product
Cell 8
Region
South-
West
Region
North-
EastRegion
South-
East
Region
Central
Region
America
& Europe
Cell structure chart for a BetaCodex organization, II:
Adding “P-cells” to the design.
Product
Cell 1
Product
Cell 2
Product
Cell 3
Region
North
Region
West
Region
Italy
Product cells (“P-cells”)
• Roles: Production, Process & work
planning, Quality, Maintenance,
Production logistics, Process
optimization, Material planning,
Design/R&D
• Clients: All R-cells
“Market”
“Sphere of Activity”
Central
Market
Services
Equip-
ment
Materials &
Logistics
Equipment
• Equipment
(construction)
• Facility
Management
Clients: all P-cells
Materials & Logistics
• Logistics
• Purchasing
Clients: All P-cells
19. Solution identified during the design workshops, 3rd part:
“Internal Services“: from powerful central departments
to devoted servants for business teams in the periphery.
• The workshop group arrived at a highly unexpected solution with regards to the previous central
”administrative“ departments. The group gained the insight that the “administrative“ function
and departments were basically catering towards “information“ and ”organizational“ services.
The workshop participants consequently grouped staff and functions into only two support cells,
now dubbed “Info shop“ and “Org shop“.
• These refreshingly new denominations give the impression that these teams are something like a
new “shop floor“ within the firm, signaling also that these cells would not be centers of
command and control power, but service teams providing necessary informational and
organizational help to the periphery.
• Findings: During the workshop, the managers from Controlling and IT concluded quite
surprisingly for some, that they had in the recent past worked so much on joint projects and
activities, closely working together most of their time, that it would make sense for them to form
a joint team, assuming responsibility over “providing useful information for decision-making”
within the firm. It was also concluded that the CEO role would be part of the Org Shop, together
with the telephone operators, assistants, and HR.
• Interestingly, comparing the cell structure design with the previous departmental design, it
becomes apparent that out of the previous departmental structure in the case company, only
one single team would remain basically unaffected by the new design, at least initially.
After the workshop series, the small “tooling“ area would be the only one that would remain
identical in the cell structure, in terms of scope and personnel.
20. Central
Market
Services
Product
Cell 4
Product
Cell 5
Product
Cell 6
Product
Cell 7
Product
Cell 8
Equip-
ment
Materials &
Logistics
Info
Shop
Region
South-
West
Region
North-
EastRegion
South-
East
Region
Central
Region
America
& Europe
…
Cell structure chart for a BetaCodex organization, III:
Adding the support cells “Info Shop” and “Org Shop” to the design
Org
Shop
Product
Cell 1
Product
Cell 2
Product
Cell 3
Region
North
Region
West
Region
Italy
Info Shop
• IT
• Financial accounting
• Controlling
Clients: all R- and P-cells
Org Shop
• HR
• Executive board + assistance
• Central office
Clients: All R- and P-cells
“Market”
“Sphere of Activity”
21. Observations about the cell structure draft design
• Highly intriguing, simple and scalable design – easily understandable to all members and
external stakeholders of the organization.
• Functional integration (as opposed to functional division, typical in tayloristic structures) has
many advantages. However, it requires people to “un-learn” previous behaviors and biases,
e.g. the myth that “functional specialization within a team” is superior to functional
integration.
• Cell design is a “no redundancy” design, in principle. Since structural growth when triggered
by cell growth, and subsequently by cell division, happens only on an as-needed basis.
• All cells will have an own profit and loss reporting, based on an accounting for internal
services pricing/charges (“value flow reporting”). However, as an important principle, only
R-cells can retain profit. All other, internally serving cells, operate on a cost basis, and thus
aim at a financial “break-even”, or zero result.
• Rankings, or “league tables” can be used to challenge cells and to create external references
for performance (see next slide).
• The 12 laws of the BetaCodex can fully be applied to a cell structure, but not to a tayloristic,
hierarchical structure.
22. “Cell structure“ as a foundation for meaningful target
definition in a “relative“ way, using league tables
Firm to Firm
ROCE
1. Firm D 31%
2. Firm J 24%
3. Firm I 20%
4. Firm B 18%
5. Firm E 15%
6. Firm F 13%
7. Firm C 12%
8. Firm H 10%
9. Firm G 8%
10. Firm A (2%)
Region to Region
Cost over income
1. Region A 38%
2. Region C 27%
3. Region H 20%
4. Region B 17%
5. Region F 15%
6. Region E 12%
7. Region J 10%
8. Region I 7%
9. Region G 6%
10. Region D (5%)
P-Cell to P-Cell
On-time-delivery etc.
1. P-Cell J 28%
2. P-Cell D 32%
3. P-Cell E 37%
4. P-Cell A 39%
5. P-Cell I 41%
6. P-Cell F 45%
7. P-Cell C 54%
8. P-Cell G 65%
9. P-Cell H 72%
10. P-Cell B 87%
Strategic cascade
Contribution to value creation
Leads to lowest operational cost!
23. The case study: First full cell structure draft design after
workshop series, to be discussed further within the company.
Central
Market
Services
P 4 P 5
P 6
P 7
P 8
Equipment
Materials &
Logistics
Info
Shop
Region
Southwest
Region
Northeast
Region
Southeast
Region
Center
Region
America
& EuropeOrg
Shop
Product
Cell 1
P 2
P 3
Region
North
Region
West
Region
Italy
“Market”
“Sphere of
Activity”
24. Further measures taken in the case firm
• Introduction of “trust-based working hours for everyone”
• Changes in reward systems:
! Profit-sharing agreements for managing directors are dropped - switch to fixed salaries!
! Objectives or variables for management staff are dropped (approx. 20% of income) –
switch to fixed salaries!
! Annual “appraisal interview” and allowance for employees are dropped
(approx. 12% of income) - switch to fixed salaries!
! Objectives and commissions for sales force are dropped (approx. 60% of income) - switch
to fixed salaries!
• A homogeneous profit-sharing scheme for the group is created – focused on “relative market
performance”, not on achievement of planned/ fixed budget figures
• Due to the cell-formation process there will be less management staff. In the new model:
! Some of them would become acting as real leaders, as opposed to managers, according to
our new values and model!
! Some of them will become valuable members of the business cells, because of their mainly
specialist expertise.
! Some of them may not identify with the new model and will resign.
25. Chapter 2:
Case study No. 2 - Brazilian packaging producer
with customer-dedicated plants
26. Brazilian packaging producer with customer-dedicated plants
The case company in a nutshell:
• Producer of packaging for consumer goods firms,
Brazilian country organization of a European multinational group.
• Approx. 400 employees in the country
• 8 production plants, dedicated each to a specific customer
(consumer goods producers)
• Massive international and national growth potential due to structural change in the
consumer goods industry…
• …but also internal barriers and infighting in the company, lack of leadership, strong
command and control culture from headquarters, lack of “improvement culture“ at local
plants, lack of agility and responsiveness to customer demands by plants teams.
• Resulting in: Continuously decreasing profitability over the years, lack of
competitiveness in acquiring new projects
• Plenty of hierarchy at plants, frequent quality problems, massive waste at some
production sites or lines, strong command and control culture, strong departmentalism
and nepotism.
27. Previous problems and structure at the customer plant
• Largest plant/unit of the company, with approx. 130 employees
• Strong power structure, with shift leaders exercising command and control
over their teams, fiefdoms and intense game-playing between shifts.
• Departments like quality, maintenance etc. work to their own interests as
well.
• Politics between shifts. Little scope for continuous improvement work. Fear
culture within the unit.
• Scrap of up to 30% on one production line, lots of rework.
• Changes are often agreed upon, but not truly implemented, improvement
initiatives get stuck somewhere.
29. Approach to change:
“Breaking the pyramid” at an industrial plant
Chronology and methods:
• Week 1: Urgency for action in the unit is identified
by company-wide guiding coalition
• Week 4: Initial event held at the unit with 19 people
from different areas of the local team (“Breaking the pyramid”)
• Transparency in relation to changes to be made
(by commercial director)
• “Museum” exercise and Knowledge Turntables create
urgency and vision for new model
• Week 5: Local guiding coalition meeting
• group formed by plant manager
• outline of the new model developed
• Detailed preparation of the future cell structure,
including job analysis and functions during work sessions
(local “guiding coalition”)
• Weekly work meetings/follow-up by local guiding coalition (“on Tuesdays“),
supported by coalition support group
• Action groups against waste are formed
30. “Breaking the organizational pyramid “ at a production plant:
Designing a new, networked model for a 130-people unit
• Unit (local) guiding coalition team develops new structure,
supported by the central guiding coalition;
• Members of other plants take part in the process;
• At further local coalition meetings, real examples from the plant
are discussed in detail, and agreements made.
31. The results
Mini-plant 1
Based on former
prod. line No.1
Mini-plant 2
Based on former
prod. line No.2
Mini-plant 3
Based on former
prod. line No.3/4
Mini-plant 4
Based on former
prod. line No.5
Mini-plant 5
Based on former
prod. line No.6
Support
cell II
Support
cell I
(rest of former
departments)
Support
cell III
(if necessary)
“Team”
(all cells within a unit)Customer
Shareholders
Market
Competition
Banks
Principles for defining a “cell”
within the new model
• It contains several functions,
roles and duties, which would
traditionally be separated into
different departments. A cell
integrates functions and roles
• It offers and sells products
and/or services on its own,
and is independent in its
decisions about them.
• It is customer focused, in
that it responds to internal or
external clients, not to hierarchy.
• It is held accountable by the
company leadership and is
responsible for its own
value creation.
• It applies the 12 laws
of the BetaCodex.
32. Key learnings on structure, within the case company.
• Newly created production cells, or “mini-plants“ to be formed around existing production lines
or groups of lines. The concept of “shifts as teams“, which was previously predominant, would
be totally abolished within the plant. There would be no more shift leadership staff whatsoever.
• In the previous structure, around 50% of employees were working in “support functions“ – like
quality, maintenance, internal logistics, etc. Those support teams would mostly be dissolved
and team members integrated in mini-plant teams. Supervisors, except for the plant manager,
would have to become mini-plant team members, or “specialists“ within the support cells -
depending on their individual talents and preferences.
• Salaries would not be affected by the changes.
Job titles, however, would at some point be totally abolished, to support transformation.
• Mini-plants alone are responsible for their “business“ – which includes quality, maintenance,
staffing, production planning and scheduling, work organization, and ultimately also plant
layout. They would be self-managed and empowered to acquire services from support cells at
the plant and at the headquarters. They would also be empowered to challenge the support
teams for continuous improvement. Mini-plants may elect speakers, and report directly to the
plant manager (previously, there were two additional hierarchical levels).
• Mini-plants organize their work themselves, instead of being managed by supervisors, as in the
old structure. To do this, new ways of displaying client orders, performing shift changes, cell
coordination, and conflict resolution, would have to be developed.
33. Context: Foundation of a set of Task Forces begins,
in order to “empower all others to act”
• Task Force “Cell networks within the plant units”
(“Break the pyramid” – create networks of highly autonomous teams responsible for results)
• Task Force “Compensation systems” (reward success based on relative performance)
• Task Force “Financial and non-financial reports” (promote open and shared information)
• Other Task Forces (TFs) and Work Groups (WGs) to be created:
“TF Cell Network in the main office“, “WG Waste reduction” in the units and at the head office
Further changes within production plant structure:
• Preparing of improvement plans
• Attacking waste
• Transferring knowledge and technical competencies to the cells,
redefining roles of supervisors.
• Eliminate departments over time, continuously decentralizing
decision-making further, and integrating members from previous
support functions into mini-plants.
34. Decentralization and its consequences – a story
One episode from this implementation case illustrates well how devolution works in very practical
terms.
In the previous structure, shift leaders (called supervisors) would elaborate a production plan for
their shifts each day, for all production lines. The production plan would then be imputed into the
ERP by the administrative assistant, and would also be archived in a black file that was always
placed on a table in the shift leader's room. The official position was that this file could have been
consulted by all plant employees. But that rarely happened. In practice, all decisions regarding work
organization were taken by supervisors. Production scheduling was thus a process that was
decoupled from the production team. Problems or needs for re-scheduling would remain obscure to
team members, leading to conflicts, misunderstandings, and rework. As we discovered together,
massive rework was often the consequence, as well as scrap of up to 30% in one production line.
When the process of devolving decision-making power to the decentralized production cells started,
a decision was made to abolish the “black file”. Each production cell would do its own production
scheduling on an as-needed basis – making changes whenever necessary. All production
information would be transparent to all: Customer orders, for example, would be displayed on an
open panel near each production line. Scheduling should not be done by a shift leader, but by the
entire team, or any given elected team member. Orders would be scheduled by the team on an as-
needed basis, as well as quality and maintenance work, and training. This way, self-management by
the team would be initiated. The shift leaders would in the process lose all authority over the
production process.
36. When, exactly, should you do cell structure design,
within the transformation process?
• Don’t approach your cell structure design as a mental exercise,
decoupled from action.
The idea of “finding the solution all on your own“ may seem tempting, but you should
restrain from that. If you want to do it anyway, then avoid sharing your insights with others
in the organization. The reason: Developing and agreeing on the new structure should be
a shared process. Do it with a large group of representatives from all areas, and in a truly
shared setting. Don’t attempt to envision the full solution for your organization
beforehand!
• Don’t do it too early-on in the transformation process.
Do it in phase 5 of the Kotter transformation process, not before that (see next slide).
You should consider it as an element of the stage called “Empower all others to act”.
Why? Well, first of all, you depend on others to think it through and to make it real.
So provide that you only start working out the new structure once a certain percentage of
organization members are in the ”Neutral Zone“.
Secondly, before starting on the cell structure design, you should have your guiding
coalition firmly established, the “case for change” clearly articulated and widely
communicated.
37. Embedding cell structure design within the
“Double Helix Transformation Framework”
1. Ending
Designing cell structure fits here – not earlier!
• Then create array of larger Task Forces to change
organizational structure, management processes and
business processes
• Align all projects and decision processes with the 12
principles and the values defined in the case for change
What to do before that (selected):
• Write the case for change
• Build awareness through selective action (e.g.
abolishing budgets)
• Win hearts and minds, train for empowering
leadership styles and act for more transparency
Individualchange process
3.
Develop
change
vision and
strategy
4.
Communi-
cate for
under-
standing
and buy-in
5.
Empower
all others
to act
6.
Produce
short-term
wins
7.
Don't
let up!
8.
Create a
new culture
1.
Create a
sense of
urgency
2.
Pull
together a
guiding
coalition
Organizationalchange process
1. Ending
3. Beginning
2. Neutral Zone
38. Further insights into the transformation process,
gathered during the cell structure design phase
• A “high-quality“ cell structure solution will only emerge from a true group exercise.
What we have learned is: no BetaCodex specialist, however smart, or even with intimate
knowledge of the firm will develop as smart a solution as a varied team of company
representatives. Consultants as specialists on the method should basically challenge organization
members´ thinking, so that they themselves can arrive at a smart, consensus-based and
satisfying solution.
• Involve as many people as possible into the process.
Involve all people from the organization (if the organization is small), or with representatives from
all departments (ideally: representatives democratically elected by their teams).
The initial draft of the cell structure design must be worked out by the organization's people, or
their representatives, because only a design developed by the firm's members themselves will
gain acceptance, it must be deeply rooted in the current reality and in the organization's current
sense of urgency. Creating this kind of involvement guarantees that the process and the output of
the design workshops is both relevant and perceived as appropriate.
• Cell structure design means unleashing a highly emotional process.
It is likely to mean a turning-point within the wider transformation initiative. This is why we have
sometimes dubbed this moment the “week of truth”. Support for transformation, as well as
opposition, or resistance will manifest themselves in a more accentuated way after this exercise.
Any organization will have to deal with this emotional process in a constructive way, because
denying it would lead to a backlash.
39. Involve as many people as possible in working out
the cell structure design.
Let´s do this together!
See John Kotter´s books “Our Iceberg is Melting“, “Leading Change“, and “A Sense of Urgency“,
for further information about his 8-phase approach for profound change.
40. More reading and resources
For more about complexity-robust organization: see our white papers no. 12 and 13.
For more about organizational structures, see our white paper no. 11.
For more about “relative“ performance management: see our white paper no. 10.
For more about problem-solving in complexity, see our white paper no. 7.
For more about the BetaCodex, see our white papers no. 5 and 6.
All papers can be accessed from this page: www.betacodex.org/papers
You are free to use & share this material. If you make use of this material in your work,
please let us know –we would love to learn about that!
Please make suggestions to improve future versions of this paper.
43. betacodex.org
Get in touch with us for more information about leading BetaCodex transformation,
and ask us for a keynote or a workshop proposal.
Make it real!
Niels Pflaeging
contact@nielspflaeging.com
nielspflaeging.com
New York, Wiesbaden
Valérya Carvalho
mvaleriacarv@gmail.com
LinkedIn
São Paulo
Silke Hermann
silke.hermann@nsights-group.de
insights-group.de
Wiesbaden, Berlin, New York
Lars Vollmer
me@lars-vollmer.com
lars-vollmer.com
Hannover, Stuttgart