Monthly Archives: May 2013

How to avoid building ephemeral Butterfly Companies

Butterfly Enterprises are businesses that have been built with the implicit “butterfly virus” which kills the business after a conjuncture ended.

Butterfly CompaniesTheir main observable characteristics are the lack of: business planning, ROI, image building and use of adaptive systems. They cannot behave as an adaptive system and depend on the efficacy of their owners.

The research on the nature of the Butterfly Company began in 2001. These companies were named Butterfly because they are extremely beautiful and ephemeral for their owners.

They are companies that disappear when the external conjuncture changes or the owners die.

The companies that die with their owners are family driven companies but not family businesses. They do not exist as independent entities and are part of the ego of their owners. They base their actions on the efficacy of their members and cannot deal with efficiency.

The purpose of “Butterfly Enterprises” is to profit from the market. The conjuncture provides the necessary justification for their actions to obtain profit and the power they exert is put into action by the need to transfer their costs and risks to others. Therefore they cannot develop maximal strategies to grow.

Their transformation into “institutions” demands the upgrade of their technology and the use of Business Objects to integrate efficiency, efficacy and their natural organization to ensure results.

Diego 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.