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FRACTAL ORGANIZATIONSPart II – OBJECT BASED COMPLEXITY MANAGEMENT
FATMA ÇINAR, Mba
KUTLU MERİH,Phd
Systems as Complex Beings
Complex Systems characteristics
Complex Adaptation of Systems : CAS
Organizations as Complex Adaptive Systems
Edge of Chaos
Self Orgnization & Emergence
Part I : Fundamental Concepts of Complexity Theory
Presentation Outline
FRACTAL ORGANIZATIONS PART II - OBJECT BASED COMPLEXITY MANAGEMENTMonday, December 19, 2016
The Reasons of Object Oriented Approach
Description of the Objects
Organization as a Complex of Objects
Object Oriented Business Modelling
Organizational Agents
Sycamore Tree Diagram of Organizations
Organizational Sycamore Tree Agents
The CORTEX
(CBBC) – Complexity Business Balance Card”
Presentation Outline
Part II : Object Based Complexity Management
FRACTAL ORGANIZATIONS PART II - OBJECT BASED COMPLEXITY MANAGEMENTMonday, December 19, 2016
Business Modelling of Problem Areas
Performance optimization for companies has now become more important than ever.
Therefore, companies need to measure their performance in more realistic terms to make the best decisions.
Despite improvements made based on scientific models, current techniques fail to reflect the dynamics of current business environment.
Unfortunately, these techniques are stationary and in a structure that produces lagged outputs.
Monday, December 19, 2016 FRACTAL ORGANIZATIONS PART II - OBJECT BASED COMPLEXITY MANAGEMENT
Models Should Also Be Compatible With The Current Dynamic Environment
These models created for performance monitoring should also be compatible with the current dynamic environment in which the company operates.
They should also be compatible with factors which are important for competition, such as innovation and flexibility.
Monday, December 19, 2016
Since the assessment criteria differ according to the sector's structure, sector-based sensitivities should be taken into account when formulating models. In this context, we can say that these models have the advantage of providing cost and operational gains of various alternative policies that can be tested without forcing the active processes of the company.
FRACTAL ORGANIZATIONS PART II - OBJECT BASED COMPLEXITY MANAGEMENT
Models Help To Save Time And Resources
In this way, the user-friendly business model considerably simplifies processes and also creates its own market.
Therefore, the success of modelling is embedded in the properties of modelling techniques.
Costly real life experiences can be reduced significantly.
Development of new techniques and changing insights based on data management (informatics) has become a necessity for organizational success rather than simply an option.
This approach is also suitable for users who are accustomed to utilizing object-based office programs.
Monday, December 19, 2016 FRACTAL ORGANIZATIONS PART II - OBJECT BASED COMPLEXITY MANAGEMENT
The Reasons of Object Oriented Approach
In this study, we propose an Object-Based Modelling based on information and Informatics as the most suitable model to realize subject approach.
Business concepts and techniques, and company processes are re-interpreted using a dynamic-cybernetics cognizance.
Monday, December 19, 2016
This approach is based on
ComplexityTheory (PART I),
Informatics-software development and
Chaos Theory.
This topic has been studied in detail by
Kauffman Santa Fe Institute and many
respective scholars (Holland, 1992).
Object Based Complexity Approach evaluates companies as Object Oriented organic and
complex structures with informatics backbone, and not simply as mechanical and bureaucratic
structures.
FRACTAL ORGANIZATIONS PART II - OBJECT BASED COMPLEXITY MANAGEMENT
How Complexity Management Is Different Than Systems Thinking
Less emphasis on leverage points (and other mechanical metaphors) and more on emergence from patterns of interaction among people and groups in the system
Less emphasis on the leader’s influence and more on creating the conditions for self-organization, emergence, and generative relationships
Less emphasis on articulating a clear, shared vision and more on multiple actions inspired by a good-enough vision
Less emphasis on individual knowledge and logical thinking and more on creative adaptability among people and work processes
Less emphasis on changing the formal structure of organizations and more on informal communities of practice (and other rhythms that operate among people and work processes)
Less emphasis on knowing-in-advance and more on “tuning” to the environment, sense-making and building on “what works”
Less emphasis on competency-building or gap-closing and more on noticing attractor patterns, increasing information flow, working with serendipity, and shifting organizational boundaries
Less emphasis on budgeted resources and more on making what is needed out of the materials-at-hand
Less emphasis on a system outside of yourself and more on your participation in “co-evolving” both what you want and what you should creatively destroy
Monday, December 19, 2016 FRACTAL ORGANIZATIONS PART II - OBJECT BASED COMPLEXITY MANAGEMENT
New Types of Organizational Structure
Monday, December 19, 2016
VİRTUAL ORGANIZATION
LATTİCE ORGANIZATION
SPIDERS WEB ORGANIZATION
HOLONIC ORGANIZATION
KINETICS ORGANIZATION
LEAN ORGANIZATION
COMPLEX ORGANIZATION
FRACTAL ORGANIZATIONS PART II - OBJECT BASED COMPLEXITY MANAGEMENT
Object-Based Business Modelling
Business Objects constitute the foundation of Object-Based Complexity Management.
Every organization is a complex consisting of people.
Even an organization which is run by a single person is considered as a complex structured organization.
This is because complexity is not related with the number of the people, but the number of the necessary business processes.
The complex structure of the organization is composed of vertically and horizontally linked relationships of Business Objects.
Monday, December 19, 2016 FRACTAL ORGANIZATIONS PART II - OBJECT BASED COMPLEXITY MANAGEMENT
Company As A Complex Of Objects
Our basic model of interest will be the Company Complex.
This is the intelligent modelling of complex and dynamic presence of main problem areas within the so-called company universe.
These problem areas, which make up the organic structure of the company, will be modelled as Objects.
In other words, entity and complexity have become synonymously identical in our model space.
Monday, December 19, 2016 FRACTAL ORGANIZATIONS PART II - OBJECT BASED COMPLEXITY MANAGEMENT
A sector that compromises several entities and the whole economy within the global system are also Mega Objects composed of units. An organization object can neither be detected nor interpreted irrespective of the objects independently (Habitat Effect). In other words, each object in the space of objects is the object of, or composed of their extension. Complexity Management perceives each individual of the organization as a self-governing administrator who governs, functions, time and relationships, as well as itself. In other words, a CEO and a warehouse keeper are similar objects, but whose roles and functions are different.
Industrİal Sectors Are Mega Objects
FRACTAL ORGANIZATIONS PART II - OBJECT BASED COMPLEXITY MANAGEMENTMonday, December 19, 2016
Architecture of Object: Properties and Methods
Monday, December 19, 2016
In conformity with the principles of Object-Basedsoftware; there must be parametric structure properties that define each object and a set of methods to determine their behaviour.
Thus, all business units of the organization and the people as well as their identity and roles in each position are clearly identified in advance.
Their level of success will be the Performance of Objects of the organization.
Accordingly, a business object should be considered as an active organizational unit whose job/duty definitions are well-defined and equipped with impulse and response capacity against specific reactions.
Each object is a dynamic and live organic-informatics structure, capable of receiving and recognizing impulses, and giving appropriate reactions.
FRACTAL ORGANIZATIONS PART II - OBJECT BASED COMPLEXITY MANAGEMENT
Attractors (not resistance)
Monday, December 19, 2016
An attractor is a pattern of behavior that emerges from the complex interactions of
the parts of a system.
After the pattern has emerged, it constrains the future behaviors of the system's
parts.
Corporate culture is a good example of an organizational attractor.
It emerges from day-to-day interactions and ultimately determines day-to-day
actions.
Complexity managers recognize that people do not resist change.
They are attracted to other patterns of behavior.
To help an organization change, you must understand the active attractors and
work within them to move to different and more constructive patterns.
FRACTAL ORGANIZATIONS PART II - OBJECT BASED COMPLEXITY MANAGEMENT
Accordingly, software objects both host data and command against external stimuli (such as mouse clicks or using touch sensitive screens) and are interactive modules that can react.
These units, as in software, may be observed in organizations or in natural habitat.
Especially, the nature exhibits the perfect examples of object origin structuring.
All living things exhibit a structure originated from the basic object.
Naturally, the most complex structured basic object is the human himself.
Objects Can Be Seen in Natural Habitat
Monday, December 19, 2016 FRACTAL ORGANIZATIONS PART II - OBJECT BASED COMPLEXITY MANAGEMENT
Complex Structure in the Active Object: Agent
The active object of objects of an organization are Agents.
Basic objects are the first to be determined by the sector the company operates and their business lines.
Following this process, new objects are created and hence active / professional agent objects are formed upon this expansion. I
In conventional management science these are sections and departments.
Monday, December 19, 2016 FRACTAL ORGANIZATIONS PART II - OBJECT BASED COMPLEXITY MANAGEMENT
Control and Coordination Object of Business Objects: CORTEX
The function and dynamics of organizations are executed by Cortex which indeed is an Object of Control Coordination and Balance.
It is Cortex Object that employs all objects of the organization and information systems as a backbone.
Conventional management science calls this as management. In complexity management, Cortexexecutes the functions beyond the management.
We can observe an organization formed solely of a Cortex, but we cannot observe an organization without its Cortex.
Cortex is the most basic Object of Object based modelling. Modelling in our study will take place around the Cortex.
Monday, December 19, 2016 FRACTAL ORGANIZATIONS PART II - OBJECT BASED COMPLEXITY MANAGEMENT
Basic
Org
an
izati
on
al
Ob
jects
Object Based Organization Modelling starts withfour basic organizational problem areas
1. Administration
2. Procurement
3. Production
4. Marketing
These problem areas make up the organik structure of organization as basic objects
We model this structure as a Fractal StructuredFishbone diagram named as SYCAMORE TREE DIAGRAM
Monday, December 19, 2016 FRACTAL ORGANIZATIONS PART II - OBJECT BASED COMPLEXITY MANAGEMENT
Monday, December 19, 2016
CORTEX
ENTRENEURSHIP
MANAGEMENT
PLANNING
CONTROL
CORDINATION
ADMINISTRATION
HUMAN RESORCES
FINANCE
ACCOUNTING
SUCURITY
TECHNOLOGY
PRODUCTION
PROCUREMENT
INVENTORY
MANUFACTURING
LOGISTICS
PRODUCT
Organization as Object of Objects
MARKETING
MARKET RESEARCH
PRODUCT
SALES
CUSTOMERS
COMPETITORS
LOGISTICS
PROCUREMENT
WAREHOUSING
SALES
CUSTOMERS
OUTSORCING
FRACTAL ORGANIZATIONS PART II - OBJECT BASED COMPLEXITY MANAGEMENT
CORTEX Coordinated Relations Management Model: Sycamore Tree
Strategic business unit of the model is composed of Agents.
Two types of nested structure of business units are Agent-Objects.
All Agent-Objects are associated with Cortex and under its control.
Object relations with other agents, functional and strategic integration of operational
responsibilities, delegating integral business responsibilities (performance-project groups)
have a weighted impact on management processes of network units.
Agent-Objects integrated with informatics backbone of autonomous work groups constitute the
backbone of the system by jointly operating their own leadership to work in cooperation with
other operating business units from various levels.
FRACTAL ORGANIZATIONS PART II - OBJECT BASED COMPLEXITY MANAGEMENTMonday, December 19, 2016
It has also become more important for companies to optimize their financial performance and to make the necessary decisions via measurements in order to maximize benefits to the business. To serve this purpose, companies need to utilize Integrated Theoretical Application to transform their approach to Object-Based Integrated Enterprise Performance Management Model with real-time risk analysis.This makes measuring the real value of the company possible within the framework of integrated theoretical applications and integrated reporting systems.
Enterprise Performance Management RequiresIntegrated Reporting System
Monday, December 19, 2016 FRACTAL ORGANIZATIONS PART II - OBJECT BASED COMPLEXITY MANAGEMENT
Sycamore Tree (Complexity Business Balance Card - CBBC)
Accurate perception and interpretation of Object-Based Business Modelling in a complex business universe will constitute the base for successful management.
The parts of the body in self-similar objects or components resemble the whole body.
The fishbone illustrates the unlimited coordination of objects before and after and the control and their internal balance.
Three-dimensional Sierpinsky pyramids are typical of this structure.
Each fishbone on Sycamore Tree diagram is the object of the objects.
In other words, the organic structure of the objectsis displayed as a fractal hierarchy among objectsboth vertically and horizontally within the matrix.
Our proposed Sycamore Tree diagram augmented with communication technologies, will give in-depth perspectives to the management through our operating business units approach (Merih and Çınar, 2013).
Monday, December 19, 2016
We propose Sycamore Tree (Complexity Business Balance Card -CBBC)
FRACTAL ORGANIZATIONS PART II - OBJECT BASED COMPLEXITY MANAGEMENT
CBBC Diyagram ModelBackbone of Sycamore Tree is Information Infrastructure
Monday, December 19, 2016
CORTEX
Stakeholder Relations Competitions Relations
State RelationsLAN
WANCustomer Relations
Information&CommunicationsTechnologies
Product Relations
Innovation Relations Marketing Relations
Global Environment Relations Financial Environment Relations
FRACTAL ORGANIZATIONS PART II - OBJECT BASED COMPLEXITY MANAGEMENT
CBBC For Balanced Dynamical Performance
Monday, December 19, 2016FRACTAL ORGANIZATIONS PART II - OBJECT BASED COMPLEXITY MANAGEMENT
We need some certain criteria to refer to corporate balance.
Criteria should be parallel with the strategies determined by the strategic
management.
To ensure that the strategy is well received, perception of change, studies
conducted under the leadership of management, the definition of concepts,
harmonizing the organization with the strategy, motivating people and all sub-
factors related should be harmonized as a whole
This can be achieved with the Complexity of Business Balance Card model and
the Financial Performance Assessment Methods.
Monday, December 19, 2016
CB
BC
Diy
ag
ram
M
od
el
Monday, December 19, 2016
“21.th CENTURY WILL BE COMPLEX SCIENCE CENTURY”
Stephen HAWKING
FRACTAL ORGANIZATIONS PART II - OBJECT BASED COMPLEXITY MANAGEMENT
kutlu@merih.net
kutmerih@gmail.com
fatma.cinar@spk.gov.tr
http://www.spk.gov.tr/
http://www.riskonomi.com
@fatma_cinar_ftm
@fractalorg
@Riskonometri
@Riskonomi
@CORTEXIEN
tr.linkedin.com/pub/kutlu-merih/9b/921/25a
tr.linkedin.com/in/fatmacinar/
Contact
FRACTAL ORGANIZATIONS PART II - OBJECT BASED COMPLEXITY MANAGEMENTMonday, December 19, 2016
Monday, December 19, 2016
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FRACTAL ORGANIZATIONS PART II - OBJECT BASED COMPLEXITY MANAGEMENT
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