BEYOND EFFICENCY TOWARDS DISCONTINUITY

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BEYOND EFFICENCY

TOWARDS DISCONTINUITY

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SummaryFrom Dante to Merloni (through Santa Fe)

Operative excellence, or the praise of continuity

Creative destruction, or the praise of discontinuity

Creative disorganization, or the dynamic equilibrium between continuity and discontinuity

All things are ready, if our minds be so (Shakespeare, 1599)

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Midway upon the journey of our life

I found myself within a forest dark,

For the straightforward pathway had been lost.(Dante Alighieri, La Divina Commedia, Inferno, 1306)

FOREST DARKFOREST DARK = COMPLEXITY = COMPLEXITY

MIDWAY UPON THE JOURNEY OF OUR LIFE = STORE OF KNOWLEDGE

Provocations from Middle Age

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DISORDER

CR

EATI

VE D

ESTR

UC

TIO

N

ORDER

Provocations from Santa Fe

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DISORDERDISORDERORDERORDER

Between Deserts and Tornados

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DISORDERDISORDERORDERORDER

Between Bureaucracy and Anarchy

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DISCONTINUITY

CONTINUITY

Death for fossilization

Death fordisintegration

orderdisorder

involution(decline)

evolution(development)

Cues from the Theory of Complexity

LIFELIFE

Dynamic equilibrium at the edge of chaos

Disequilibrium

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Provocations to companies

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Sharing to improve the context

Plan the present

Continuity(+)

(+) (+)

(+)(+)

STATE

OBJECTIVE

ACTION

EFFECT

Operational Excellence

RELATIONAL CAPACITY

Lever

Praise of Continuity: the 'Excellence' Circle

[source: De Toni - Comello, 2005]

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Praise of Continuity

Incremental improvement of:

Processes

Products/services

Organizational-managerial models

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Quick loss of Competitive Advantage

[source: D’Aveni, 1995]

Launch

Exploitation

Counterattack

Period (years)

Profits from sustainable competitive advantage

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[source: D’Aveni, 1995]

The Strategy of Upsetting

The enterprise has already moved to advantage n.2

Exploitation

Counterattack

Profits from a series of repeatable actions

Period (years)

Launch

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Creation of new contexts

Imagine the future

Discontinuity(+)

(+) (+)

(+)(+)

STATE

OBJECTIVE

ACTION

EFFECT

Creative destruction

CREATIVE CAPACITY

Lever

Praise of Discontinuity: the 'Creation' Circle


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Praise of Discontinuity

Creative disorder of :

Processes

Products/services

Organizational-managerial models

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Logic takes you from A to B. Imagination takes you everywhere. (Albert Einstein, 1955)

Imagination is the first source of human happiness

(Giacomo Leopardi, 1837)

Future belongs to those who can imagine it

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Plan the present

Operational excellence

(+)Sharing to improve the

context

RELATIONAL CAPACITY

Lever ACTION

STATE

Imagine the future


(+)

CREATIVE CAPACITY

LeverACTION

STATE

Creation of new contexts

MANAGERIAL APPROACH ENTREPRENEURIAL APPROACH

ORDER DISORDER

OBJECTIVEOBJECTIVE

'Excellence' Circle'Excellence' Circle 'Creation' Circle'Creation' Circle

Cre

ativ

e di

sorg

aniz

atio

nC

reat

ive

diso

rgan

izat

ion

EDGE OF CHAOSEDGE OF CHAOSEDGE OF CHAOS

EFFECT EFFECT

DiscontinuityContinuity



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‘‘ExcellenceExcellence’’circlecircle

‘‘CreationCreation’’CircleCircle

EDGE OF CHAOSEDGE OF CHAOS

ORDER

DISORDER

PERFECT ORDER

CHAOTIC ORDER

CHAOTIC DISORDER DISINTEGRATION

LIFE

FOSSILIZATION

Continuity

Discontinuity

Hydraulic Analogy at the Edge of Chaos

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Between Formal and Informal Systems

FORMAL SYSTEM INFORMAL SYSTEM

PREDOMINANT SYSTEM EFFECTS

ORDER: perfect order

Structure Defined procedures e control systemslll

ConformismRisk aversionInertia

Formal system Death forfossilization

ORDER & DISORDER: chaotic order See above See below

Equilibrium between formal and informal system

Life

DISORDER: chaotic disorder lll

> Diversity > Risk propensity > Change

Informal system Death for disintegration

Undefined procedures e control systems

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DISCONTINUITY

CONTINUITY

Operational excellence


order

involution (decline)

evolution (development)


Disequilibrium

Creative Creative pathpath

Efficient Efficient pathpath

CREATIVE CREATIVE DISORGANIZATIONDISORGANIZATION

Towards creative disorganization

disorder

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Conclusions: ready to catch the creative moment

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Dedicated to…

… the wise people

who live at the edge of chaos …

… move on, we’ll be lucky …

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Alberto F. De Toni: [email protected]

Contacts

BEYOND EFFICENCY TOWARDS DISCONTINUITY

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