Vertical complexity & leadership

Mark Horn
Designing complex organizations
March 24
Main principles

• An effective organizational infrastructures of roles

• An accountable role

• A competent individual
 WORK LEVEL THEORY [Jaques]
WORK LEVELS

5
vertical axis

Horizontal axis
 TIME SPAN [Jaques]
WORK LEVELS

7
20y up to 50y

6
10y up to 20y

“Hoe ver kijk je vanuit het ‘hier-en-nu’

5 vooruit”; “de toekomst ligt in de
5y up to 10y
vertical axis

werkelijkheid van onze verwachtingen”

4
2y up to 5y

3 1y up to 2y

2 3mth up to1y

1 1D up to 3mth

Horizontal axis
 VERTICALE COMPLEXITEIT [Jaques]
WORK LEVELS

7
20y up to 50y
Boundary

6 Toenemende complexiteit
10y up to 20y
Boundary
Variabelen die in ogenschouw
5
5y up to 10y genomen moet worden:
vertical axis

• nemen in aantal toe

• worden vager en abstracter
• veranderen en beinvloeden
4 elkaar
2y up to 5y • liggen verder in de toekomst en
oorzaak en gevolg zijn minder
voorspelbaar
3 1y up to 2y

2 3mth up to1y

1 1D up to 3mth

Horizontal axis
 VERTICALE COMPLEXITEIT [Dive]
WORK LEVELS

7
20y up to 50y
Boundary

6 DMA zone
10y up to 20y
Boundary

5
5y up to 10y
vertical axis

4
2y up to 5y

3 1y up to 2y

2 3mth up to1y

1 1D up to 3mth

Horizontal axis
 WORK LEVELS AND DOMAINS
WORK LEVELS

Corporat
7
20y up to 50y
e domain

6
10y up to 20y

General
Domain 5
5y up to 10y
vertical axis

4
2y up to 5y

3 1y up to 2y
Operations
Domain

2 3mth up to1y

Direct hands-on /
work domain 1 1D up to 3mth

Horizontal axis
 WORK LEVELS AND LAYERS [ - 1]
WORK LEVELS MANAGEMENT LAYERS

President
7 and CEO 6
20y up to 50y

COO
6 5
10y up to 20y

GENERAL MANGERS
5 4
5y up to 10y
vertical axis

Function Head 3
4
2y up to 5y

Second-line managers
3 1y up to 2y 2

First-line managers
2 3mth up to1y 1

Front line,
1 1D up to 3mth customer facing

Horizontal axis
Leadership and accountability
WORK LEVELS MANAGEMENT LAYERS

Too Distant Too Close Appropriate

5
vertical axis

Horizontal axis
 Business Units Profit & Loss
Super Corporation CEO

Corporate Global Stage

domain L7
20Y
Continent
L6
10Y
Business Unit Business Unit Business Unit
General L5
Domain
vertical axis

5Y

Division Division
L4

2Y
Region
Operations
Domain Supervisory role ! L3
Disctrict

1Y
Store Store Store
L2
3M
Team
Direct hands-on /
work domain Supervisory role ! L1
Front-line shop
floor
1D
Leadership and personal capacity
WORK LEVELS MANAGEMENT LAYERS

5
vertical axis

20 25 Age 40 45 55 60 65
 10Y Conceptual Programs
Set long term operational
perspective/culture/values
CEO
Innovations L6
Corporate Unifying Whole EU organisation (system)
domain
Growth (expansion across countries / aquisitions)

Enforcing Ahold EU synergy / leverage scale Business

New Customer: differentiating by brand portfolio Development
5Y
Brand values
Delivery opco strategy

General General Manager

Level where profits and
Domain (losses) are created
General manager General Manager General Manager L5
Growth (identical sales)

Customer: Differentiating by
3Y format portfolio
Customer: new programs
Function Head Function Head Function Head
L4
Function Head
Function Head Function Head Function Head Function Head Function Head Function Head

2Y Conceptual project turns into

Managerial role real-projects
Operations
Quality in terms of
Domain Supervisory efficiency,productivity, L3
role customer satisfaction

1Y Work process-efficiency and

improvement “Elke dag de
Managerial role beste”
L2
Supervisory
role
3M
Supervisory
Direct hands-on / role L1
work domain Customer Day-to-day work
facing Frontline (customer facing front-
1D line)