Butterfly Companies


The Introduction to avoid Building a Butterfly Company

Butterfly companies are unstable organizations that are unable to work as institutions. They might be the consequence of an unstable market or the need of the owners to avoid the separation between them and the company.

When they are based on unstable markets there might be two different situations:

1)      It is the natural consequence of the market, for example unique projects.

2)      It is the consequence of the market instability of a country or region.

In the first case there is no butterfly company, just a transitory business that doesn’t pretend to work as an institution.

In the second case there is a butterfly company that tends to disappear when the conjuncture changes. The permanent threat of the market hinders the separation of the company from its owner so the company cannot evolve but based on the owner’s actions.

Archetypical butterfly companies are those working in stable markets but not separated from their owners.

Their purpose is to obtain profit at any price having the necessary conjunctural justifications to obtain it and exerting the necessary power to ensure it.

Diana Belohlavek

NOTE: The Unicist Research Institute was the pioneer in complexity science research and became a global decentralized world-class research organization in the field of human adaptive systems. http://www.unicist.org

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Can Butterfly Companies Change?

Butterfly Companies are organizations that have not established a structure and are driven by survival needs materialized in power and money driven actions.

The unique purpose of butterfly companies is to obtain profit from the market, but this profit includes monetary and subjective aspects in order to provide the owners with the necessary validation of their capacity.

They are naturally driven by inferiority / superiority feelings. As they essentially feel their own instability and cannot solve it, they develop a self-valuation syndrome that needs a permanent demonstration of their superiority in order to survive.

They behave as stagnant survivors because they need to maximize the subjective and objective benefits transferring all the costs and risks they can to third parties in order to survive.

These actions imply not being able to make long term plans replacing them by smart survival tactics. Therefore, they cannot measure ROI, return on investment, because it implies the existence of a plan.

They cannot build institutional image. Their actions are justification driven which implies that their image is permanently being degraded. Because of their extreme greed they produce permanent conflicts with the market.

Butterfly companies cannot use adaptive systems. The need of exerting power of their leaders makes Butterfly companies transform adaptive systems into administrative systems or no systems. Therefore, they are either bureaucratic or anarchic in order to ensure the exertion of power of the leaders.

Access the content of the book “Butterfly Companies & their Cure” at the Unicist Library: http://www.unicist.com/books-pages/en/butterfly_companies_en7s.php

NOTE: The Unicist Research Institute was the pioneer in complexity science research and became a global decentralized world-class research organization in the field of human adaptive systems. https://www.unicist.net/management/wp-content/uploads/2012/05/turi.pdf