Dave Snowden and friends - Organizational Design - Part 3
Resumo
TLDRThe discussion delves into the concept of leadership seen as an emergent property, interlinked with followership in a dynamic process. Traditionally perceived as an individual-centric role, leadership here is proposed as a social practice defined by storytelling and adaptability in different contexts. The conversation critiques conventional hierarchical structures, advocating for fluid roles that adapt to particular situations within organizations. It also criticizes the homogeneity driven by big consultancies that tend to hinder genuine change by promoting one-size-fits-all models, ignoring the unique needs of each organization. The participants suggest that meaningful leadership involves understanding the organization's informal networks, learning from adaptive military strategies, and focusing on substantial decision-making processes that foster creativity and innovation. Challenges in organizational design and the need for effective transition strategies are also highlighted, emphasizing that enduring change requires accommodating tensions and constraints within systems.
Conclusรตes
- ๐ Leadership can emerge from the dynamics between leading and following roles.
- ๐ค Leadership as a social practice involves teamwork and storytelling.
- โ๏ธ Hierarchy should provide adaptability and enable fluid roles.
- ๐ธ๏ธ Informal networks support sustainable organizational structures.
- ๐ Focus on meaningful decision-making processes.
- ๐ Critique of homogenized structures promoted by consultancies.
- ๐ญ Tension can enhance creativity and innovation within organizations.
- ๐ง Effective transition strategies are crucial for lasting organizational change.
- ๐ Adaptive capacity in leadership involves recognizing context-specific needs.
- โ Encourage leaders to discern between necessary and unnecessary alignments.
Linha do tempo
- 00:00:00 - 00:05:00
The discussion opens with the idea of leadership as an emergent property from the interplay between leading and following, challenging the traditional notion of leadership as an individual-centric concept. It proposes leadership as a social practice, highlighting the influence of hierarchy and the role of storytelling in leadership development.
- 00:05:00 - 00:10:00
The conversation shifts to the necessity of political leadership when critical decisions are required, pointing out the drawbacks of leaders who prioritize popularity over hard choices. It emphasizes organizational fluidity in leadership roles, related to military models and the importance of dynamic roles over static capabilities.
- 00:10:00 - 00:15:00
Discussion on fluid organizational structures explores how they can adapt to dynamic roles, contrasting with static existing hierarchies. The focus is on enabling organizational fluidity, challenging rigid structures, and dealing with traditional leadership mindsets resistant to change.
- 00:15:00 - 00:20:00
There is critique of OD (Organizational Development) and its limitations rooted in cybernetic models. The argument is for managing constraints rather than designing endpoints because complexity requires flexibility, with a comparison to physics where theory precedes practice.
- 00:20:00 - 00:25:00
The dialogue suggests using informal networks to form formal structures for sustainability, emphasizing the role of constraints in fostering innovation. The natural rebellion against hierarchies is seen as beneficial for creativity and adaptability.
- 00:25:00 - 00:30:00
Concepts of localized hierarchical control and its necessity in decision-making boast the organizationโs adaptability. The discussion also covers how distributed leadership can improve organizational responsiveness without losing the command structure important during crises.
- 00:30:00 - 00:35:00
Integration of distributed decision-making within organizations is proposed as a solution for efficient, adaptive processes. The importance of preserving decision-making in the right context is underscored, warning against disempowering leaders who should guide rather than relinquish their duties.
- 00:35:00 - 00:40:00
The problem with hierarchy in stifling innovation compared with the flexibility in cross-functional teams is highlighted. The roles of management in decision-making are scrutinized, stressing the significance of adopting the right decision-making processes.
- 00:40:00 - 00:45:00
The conversation critiques the role of big consulting firms in creating homogeneity in organizational design, arguing for the critical questioning of client needs over wants. It emphasizes meeting systems where they are and fostering decision-making that supports change.
- 00:45:00 - 00:52:32
The session concludes with an exploration of how to create scalable, sustainable change without overwhelming organizations. This includes balancing the scope of change to ensure it impacts positively while respecting the complexity within organizational structures.
Mapa mental
Vรญdeo de perguntas e respostas
What is leadership considered in the video?
Leadership is seen as a dynamic interplay between leading and following, suggesting that it emerges from interactions rather than residing in an individual.
How does the video suggest leadership should be developed?
It suggests that effective leadership can emerge from teamwork, social practice, and storytelling, emphasizing adaptability and context-driven leadership roles.
How does the concept of tension relate to leadership?
Tension between roles can drive innovation and creativity, as opposed to eliminating tension which can hinder adaptability and decision-making.
What role do informal networks play in organizational design?
Informal networks can create sustainable structures with low energy costs and can help formalize organization structures more naturally.
How should hierarchy function according to the video?
Hierarchy should allow fluidity and adaptability, forming around those with the most relevant context to decision-making and not be merely bureaucratic.
What critique is given about consultancies in the video?
Consultancies may perpetuate problems by homogenizing organizational structures based on existing patterns rather than addressing unique needs.
What is said about decision-making in leadership?
The discussion emphasizes the need for leaders to focus on meaningful decisions and avoid unnecessary alignment that might stifle innovation.
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- 00:00:01and welcome everyone back after a series
- 00:00:05of would have been very entertaining
- 00:00:07conversations and I think where we left
- 00:00:10off last time was Sami was talking about
- 00:00:14where the leaders create followers or
- 00:00:16whether it's the other way around so he
- 00:00:19might just hand back to Sonia to kick
- 00:00:20off today yeah thanks Andrew right it's
- 00:00:25um
- 00:00:26we've been having a pretty lively
- 00:00:28conversation on this on Twitter as well
- 00:00:33I'm not entirely sure that I've gotten
- 00:00:36on today but I'm definitely curious you
- 00:00:38know so I think last time I also said
- 00:00:41that some of this comes from the work of
- 00:00:43Professor Mary o bean and I think what
- 00:00:47what really struck me the first time I
- 00:00:49read some of those articles was how she
- 00:00:51talks about leadership as an emergent
- 00:00:55property so it's almost leadership
- 00:00:57emerges from the complex interplay or
- 00:01:01the dynamic between leading and
- 00:01:04following which are two you know
- 00:01:06interrelated processes and that
- 00:01:08sometimes you know it might take the
- 00:01:11form of you know go find be situated in
- 00:01:15an individual but not always and I find
- 00:01:18that entire concept very interesting you
- 00:01:20know so because we've been so almost
- 00:01:23habituated into seeing leadership as
- 00:01:26something that is seated in an in an
- 00:01:28individual and it's there's certain
- 00:01:30capacities and certain competencies that
- 00:01:32you need to develop and everybody
- 00:01:35leaders or only some people you know
- 00:01:37we've got all these very individual
- 00:01:41based discourses around it and if you
- 00:01:43see it as something that is an emergent
- 00:01:46process I think it completely reframes
- 00:01:49the conversation
- 00:01:55yeah I mean you know I've been trying to
- 00:02:03like frame some of the stuff that I do
- 00:02:04with leaders as leadership is a form of
- 00:02:08social practice and so like the first
- 00:02:10step towards kind of like in my mind at
- 00:02:14least of breaking down some of the like
- 00:02:17negative aspects of hierarchy but not
- 00:02:20just make hierarchy bad but to break
- 00:02:23down from the negative aspects of
- 00:02:24hierarchy is to say leadership is
- 00:02:28probably not an innate intrinsic part of
- 00:02:32like something you were born with it's
- 00:02:34something you learn to do and therefore
- 00:02:36people who have opportunities to learn
- 00:02:38these types of behaviors are the people
- 00:02:40who end up in these roles right and so
- 00:02:43it's more like a social practice it's
- 00:02:45something that you practice with other
- 00:02:46people and I think a lot of like the the
- 00:02:51narratives and the storytelling that are
- 00:02:55required to learn in order to perform
- 00:02:58the activities of leadership are
- 00:03:01developed by hearing other people tell
- 00:03:04those stories and having opportunity to
- 00:03:06tell those stories and having your
- 00:03:07stories kind of critiqued so that you
- 00:03:10learn to tell the right kinds of stories
- 00:03:12for longer time spans then that
- 00:03:16leadership requires so I don't know I
- 00:03:19mean I do think it's a really
- 00:03:20interesting question about how you how
- 00:03:27do you develop this skill in people and
- 00:03:32how do you kind of bridge the different
- 00:03:35levels inside of an organization with
- 00:03:37different forms of leadership in order
- 00:03:39to kind of knit knit knit the
- 00:03:41organization together effectively so I
- 00:03:43don't know that's my first thoughts for
- 00:03:45the day nothing about foresight you know
- 00:03:59I was basically misunderstood it turned
- 00:04:01out it was he did that but of course 15
- 00:04:03years ago and listened to a colleague of
- 00:04:06mine teach and was forming his views of
- 00:04:08based on that but never mind but the
- 00:04:12emergence pandal was was quite an
- 00:04:14interesting idea because there is a
- 00:04:15tendency in complexity you depress it
- 00:04:17too fast well yeah if in doubt blame it
- 00:04:21on emergence right I think one of the
- 00:04:23things you see about stable leadership
- 00:04:25models is their role based job and that
- 00:04:28would actually go back to hunter
- 00:04:30community hunter-gatherer type models
- 00:04:32that there are different roles that you
- 00:04:33play within in that goes back to the
- 00:04:37Dunbar thing we talked about and they
- 00:04:39won so there are different roles that
- 00:04:40get played and fluidity between roles is
- 00:04:44more important than individual
- 00:04:46capability per se right so I think if
- 00:04:49you look at military environments is
- 00:04:51heavily role based now yes within that
- 00:04:55you can have people who are more or less
- 00:04:56gifted and when things go badly wrong so
- 00:05:00this is the poor idea the idea that
- 00:05:04decisions only become decisions where
- 00:05:06every team will not work
- 00:05:07oh no such thing as a decision until
- 00:05:10it's it's not a process yeah yes I think
- 00:05:13what we're seeing at the moment is there
- 00:05:16is a time when you actually need
- 00:05:17political leadership yeah most of the
- 00:05:20time it doesn't matter but then every
- 00:05:23now and then it matters hugely which is
- 00:05:25why we got major problems in the UK the
- 00:05:27us-brazil yeah because the leadership
- 00:05:31opulence leaders thought leadership
- 00:05:33style can't make hard decisions and
- 00:05:36can't ask people to sacrifice because
- 00:05:39their whole principle has been I'm the
- 00:05:42leader follow me you know it will be you
- 00:05:44know land overflowing with milk and
- 00:05:46honey right so I think again the context
- 00:05:49word comes in so I think in general
- 00:05:51individuals don't matter until they do
- 00:05:53matter then they matter hugely yeah and
- 00:05:57you need to have organizational
- 00:06:00structures which allow fluidity if who
- 00:06:02occupies those roles so it's the old
- 00:06:05military thing it takes two years of war
- 00:06:07for the peacetime generals to die out so
- 00:06:09the Watertown generals can come through
- 00:06:11it's it's the same sort of principle
- 00:06:14called context context matters I think
- 00:06:19this this idea of fluid
- 00:06:21okk structures I think is interesting
- 00:06:23Dave because they it's you know just
- 00:06:27just this morning I spent quite a bit of
- 00:06:29time on on a client call and it seems to
- 00:06:33be one of the core questions that the OD
- 00:06:37community is asking right now is how do
- 00:06:39we create these fluid structures you
- 00:06:42know and because I think some of the
- 00:06:45it's called them existing ideas of
- 00:06:48leadership and the the current forms of
- 00:06:51power in organizations have very much
- 00:06:54related status remuneration all of these
- 00:06:58things to those roles so now if you want
- 00:07:01the roles to be fluid you know you you
- 00:07:03almost need everything else in the
- 00:07:06organization to be fluid as well and
- 00:07:08then you run into you know I remember I
- 00:07:10think Nigel the beginning of last time
- 00:07:12you asked the question of you know how
- 00:07:14do you deal with these rigid leaders
- 00:07:16that won't you know I think that was
- 00:07:17part of your question and you kind of
- 00:07:19come full circle because the moment they
- 00:07:21think you realize what this means the
- 00:07:24old guard kind of it almost rigid the
- 00:07:27rigidify zhing you you can't get the new
- 00:07:30ideas in so it feels like you know we've
- 00:07:33almost circled back to your first
- 00:07:35question last last time Nigel so how do
- 00:07:40we overcome this is really interesting
- 00:07:42so you put me on the spot to stew so
- 00:07:46whole organizational design problems now
- 00:07:48I mean you've got I've got to fill it
- 00:07:57with content so um I was writing down
- 00:08:00some of the notes because you know when
- 00:08:02we talked about leadership as an
- 00:08:04emergent process I wouldn't it is it a
- 00:08:06property rather than the process don't
- 00:08:09know but I'm also reading some of the
- 00:08:12stuff that John Turner professor Turner
- 00:08:14and I wrote about boundary spanning and
- 00:08:16about multi-team systems because I think
- 00:08:19this is where it's starting to leaders I
- 00:08:21mean some of what we talked about about
- 00:08:23self-organizing organizations and
- 00:08:25fluidity comes from sort of crew concept
- 00:08:27from the US Navy or that type of area
- 00:08:31where we have a group of people that
- 00:08:33self form into so
- 00:08:35organizing or self-forming teams
- 00:08:37depending on the demand of the work the
- 00:08:39needed activity and then they sort of
- 00:08:43dissolve and reform the next time
- 00:08:44there's some activity to do and it's
- 00:08:46about having the right people for the
- 00:08:48right job now clearly in a reasonably
- 00:08:52large organization having leadership
- 00:08:54sort of dissolve and reform daily isn't
- 00:08:56going to be practical probably then
- 00:08:59maybe people would disagree but some of
- 00:09:01the notes that I'm looking at some of
- 00:09:03the notes I've written previously and we
- 00:09:05talked about boundary spanning because
- 00:09:07most leadership models are that leader
- 00:09:09follower dyad model which is what we
- 00:09:12were talking about very beginning this
- 00:09:14conversation and when we get into sort
- 00:09:17of functional leadership we sort of get
- 00:09:19into that sort of lead a team
- 00:09:21relationship where we review the members
- 00:09:24of a team as collective leadership for
- 00:09:27the organization and this gets into the
- 00:09:30whole distributed leadership
- 00:09:31conversation and starts to look at how
- 00:09:33we build multi team systems and how we
- 00:09:35repurpose those management roles
- 00:09:38remember their core leader roles in the
- 00:09:40companies but they're really management
- 00:09:42roles we repurpose those into functional
- 00:09:44leadership and then they become the glue
- 00:09:47between these multi teams sort of
- 00:09:49autonomous systems helping to foster the
- 00:09:53right relationships between the multiple
- 00:09:55teams ensuring we've got focus on distil
- 00:09:57goals and various other things and
- 00:10:00Dave's going to jump in though I was
- 00:10:02going to say you need to separate two
- 00:10:04things one is the problem with OD which
- 00:10:06is major yeah OD is just basically in a
- 00:10:10very bad place and I repeat what I said
- 00:10:13ages ago that they have a Stockholm
- 00:10:14Syndrome relationship with the CEO the
- 00:10:18CEO doesn't realize he's been held
- 00:10:19captured by terrorists and he doesn't
- 00:10:21have the sense to get away from it or
- 00:10:23she doesn't have the sense to get away
- 00:10:24from it and the second is the issue
- 00:10:26about leadership and I think the bottom
- 00:10:28with OD and it's been a problem of for a
- 00:10:32year the cybernetics approach which came
- 00:10:36after scientific management and I still
- 00:10:38think need to keep emphasizing that
- 00:10:40complexity is not opposed to Taylorism
- 00:10:43complexity as opposed to cybernetics and
- 00:10:46cybernetics was a Hegelian ante
- 00:10:49is to Taylorism but that's another
- 00:10:51matter I'll leave that for Jay to pick
- 00:10:53up right I think the issue is it's there
- 00:10:58they're focused on designing in the
- 00:10:59endpoint now you can't do that in a
- 00:11:01complex system so you can't design a
- 00:11:02fluid system yep can do is you can
- 00:11:05manage the constraints so actually the
- 00:11:08current hierarchy is a constraint and
- 00:11:11the ability to repel against the
- 00:11:14hierarchy is actually quite important
- 00:11:16because without a hierarchy there
- 00:11:18wouldn't be maverick in friction in the
- 00:11:20system and it's the other thing some of
- 00:11:22the greatest are pros like I we used to
- 00:11:24be able to watch all right where people
- 00:11:27found clever ways around the sensor and
- 00:11:30certainly East German opera an East
- 00:11:32German theater was just incredible
- 00:11:34during the crackdown of the Stasi
- 00:11:35because the creativity for you know it
- 00:11:38came out because of the constraint yeah
- 00:11:40so rebelling against the hierarchy is
- 00:11:43one thing I think the other thing is the
- 00:11:44informal networks and if I go back to
- 00:11:47the first art this major article I wrote
- 00:11:50which was the first real version of
- 00:11:51cannabic
- 00:11:52it basically said you need to stimulate
- 00:11:55a map your informal networks and allow
- 00:11:57the formal organization to form from
- 00:12:00informal stable structures so that
- 00:12:03rather than trying to design it right so
- 00:12:06I think the manipulation of constraints
- 00:12:08is the most important thing and because
- 00:12:11hierarchy is such an important
- 00:12:13constraint and in a crisis will be
- 00:12:14critical yeah it's no coincidence in a
- 00:12:18crisis you know chain of command becomes
- 00:12:20vital so you're always going to have a
- 00:12:22hierarchy but the issue is where has he
- 00:12:24got fluidity where has it got rebellion
- 00:12:26where can you modify what can you make
- 00:12:28it's like a miracle
- 00:12:30waking rent rolls around it so I think
- 00:12:32oh do you designing the wrong thing and
- 00:12:35this is the spirit of had with Mary a
- 00:12:36bit as well in that I think because
- 00:12:39she's taking an empirical approach so
- 00:12:41she's trying to derive a complexity
- 00:12:43theory of leadership from cases and I
- 00:12:46don't think you can do that I think it
- 00:12:49complexity a theory of leadership has to
- 00:12:51come from the theory and then the case
- 00:12:53is test your methods associated with the
- 00:12:55theory so to my own views is much more
- 00:12:58like physics in physics you devise
- 00:13:00theory then you see if it works in
- 00:13:01practice you
- 00:13:03don't try and derive theory from
- 00:13:04practice oh if you haven't since post
- 00:13:07Newton period and we need to start
- 00:13:08thinking about that differently I think
- 00:13:12I waiting for James to come back because
- 00:13:17everything is everything Dave is talking
- 00:13:19about is pushing me back to distributed
- 00:13:22leadership models now we have good ideas
- 00:13:25and thoughts of course could I've done
- 00:13:26some work on this but Jeb you've got a
- 00:13:29lot deeper understanding of this than I
- 00:13:31have I mean I have I have some thoughts
- 00:13:34that I don't know if there were deeper
- 00:13:36shallower than yours I have thoughts on
- 00:13:39it I think one of the things that I've
- 00:13:41been thinking a lot recently is kind of
- 00:13:43like organizational design is a form of
- 00:13:46adaptive capacity like the ability for
- 00:13:49an organization to adapt to a challenge
- 00:13:51and adaptive capacity at least in kind
- 00:13:54of resilience engineering kind of theory
- 00:13:56is kind of like a budget and when you
- 00:13:59spend your budget you basically lock up
- 00:14:02your adaptivity you can't like anymore
- 00:14:05you can think of it like getting scared
- 00:14:07and freezing because you should get your
- 00:14:09overly frightened by something right
- 00:14:10like the organization kind of stops
- 00:14:12functioning so I liked it like one of
- 00:14:15the ways I kind of like to think through
- 00:14:17that is that when you have low low
- 00:14:20environmental pressure so we're talking
- 00:14:22inside the or guys are the
- 00:14:24organization's relationship to its
- 00:14:26environment right
- 00:14:26low low environmental pressure you can
- 00:14:30actually flatten the work out quite
- 00:14:32quite a bit because you just let the
- 00:14:35actual distributed nature of the
- 00:14:38organization adapt to the subtle
- 00:14:41variations in the marketplace you don't
- 00:14:42need to actually organize large groups
- 00:14:45of the organization to go in a
- 00:14:47particular direction because it's you
- 00:14:49know stable relationship with an
- 00:14:51environment let's just adapt to the
- 00:14:52small changes that are happening we can
- 00:14:53flatten the work out as we kind of bring
- 00:14:57up ramp up the environmental pressure
- 00:14:59that in other words the change in the
- 00:15:01environment or the marketplace is coming
- 00:15:03up then I I like to think that the way
- 00:15:05that you get this to work is to replace
- 00:15:08to have an evolution the flatness into
- 00:15:11what it's called header our key as
- 00:15:13opposed to hierarchy and header our key
- 00:15:15is just keeping
- 00:15:16the flavor of a hierarchy someone's in
- 00:15:19charge of things but who is in charge is
- 00:15:23very very contextually determined
- 00:15:27because the hierarchy forms around the
- 00:15:30node that has the greatest relationship
- 00:15:32to the environmental change that's
- 00:15:34happening right now right so what you're
- 00:15:37getting there is less this flatness and
- 00:15:39more like localized pickiness and one of
- 00:15:43the things to point out there really
- 00:15:44quickly and that they've pointed at it
- 00:15:46and it'll be important for the next one
- 00:15:48right is that actual hierarchy is
- 00:15:52important when decisioning needs to
- 00:15:55proceed at a certain pace and it's a
- 00:15:58back pressure effect I think and what I
- 00:16:01mean by a back pressure effect is
- 00:16:02knowing that if we don't make a decision
- 00:16:05the boss is going to make a decision
- 00:16:07sometimes will motivate us to actually
- 00:16:09you know make a decision as opposed to
- 00:16:12filibustering our way through the next
- 00:16:14six years of our lives
- 00:16:15right so somebody's about to come down
- 00:16:17and be like we're gonna do this then
- 00:16:20maybe more decisions start being made
- 00:16:22right and I think like that to me is the
- 00:16:25difference between kind of like these
- 00:16:26very flat like halong based
- 00:16:30organizational structures which every
- 00:16:33time I run into them are just a cesspool
- 00:16:37of indecision and noise and the
- 00:16:43hierarchies are kind of the peak eNOS
- 00:16:45there is to kind of start making those
- 00:16:47decisions now when you get extreme
- 00:16:50environmental change like what we just
- 00:16:52saw you know the the my favorite story
- 00:16:58about what we went through right
- 00:16:59recently was Dave telling you the story
- 00:17:01about the bird flew in in Singapore and
- 00:17:04the way that leadership there made
- 00:17:07explicit radical decisions during the
- 00:17:09blue bird flew in order to stabilize the
- 00:17:12organization the city the state in order
- 00:17:16to allow a distributed decision-making
- 00:17:19network to emerge and explore other
- 00:17:22options for getting us out of the fact
- 00:17:23that we can't leave our houses anymore
- 00:17:25right so that that is the
- 00:17:28moment at which I think that the the
- 00:17:32formal hierarchy as opposed to the
- 00:17:34informal header are key becomes
- 00:17:36incredibly valuable because it is the it
- 00:17:40is the way in which we do not have the
- 00:17:42time and luxury to have extended
- 00:17:46conversations about this and the radical
- 00:17:50nature of the environmental change means
- 00:17:52that we probably actually can't make a
- 00:17:55huge amount of meaningful decisions
- 00:17:57right now anyway because we don't know
- 00:17:59necessarily what this environmental
- 00:18:00change means but we have to stabilize
- 00:18:02the system very quickly and that's what
- 00:18:05that real true command and control
- 00:18:08hierarchy ends up being valuable for and
- 00:18:11so the trick to me the fluidity of an
- 00:18:13organization is more about being look
- 00:18:15like flattened locally peak and then
- 00:18:19snap into into command and control
- 00:18:22hierarchies and know how to like release
- 00:18:26them and go back to those other forms as
- 00:18:28well so it's like a way of the fluidity
- 00:18:30is less about the arrangement of the
- 00:18:32teams and the the geekiness
- 00:18:34of the hierarchies if that makes any
- 00:18:36sense so I know that's my thoughts on
- 00:18:39that because those horizontal structures
- 00:18:53which are highly rule-based yeah and
- 00:18:55that rewarding people who are good at
- 00:18:57rule compliance so they've become highly
- 00:18:59bureaucratized an innovation ironically
- 00:19:02gets siphoned out to the system yeah and
- 00:19:05I mean anybody you've looked at the
- 00:19:06halacha see could have told them that up
- 00:19:08front but they're now realizing it right
- 00:19:10so it basically makes it impossible to
- 00:19:12have decisions it's in trays differences
- 00:19:14it goes down the route I think the other
- 00:19:16issue is this and I'll come back to that
- 00:19:19in a second I think the other issue is
- 00:19:21the question of you get this desire for
- 00:19:24alignment which is actually quite
- 00:19:27dangerous so this comes back to the boss
- 00:19:28so when I was a general manager I
- 00:19:30understand that policy which HR
- 00:19:32thoroughly objected to but I was the
- 00:19:34most profitable business unit in the
- 00:19:35company so I had power right
- 00:19:38and I targeted my salespeople
- 00:19:40differently from
- 00:19:41production people so sales were targeted
- 00:19:44on orders and production were targeted
- 00:19:46on profit and sales couldn't sell in
- 00:19:49this production signed it off
- 00:19:51and they all got totally pissed off and
- 00:19:54they kept demand in that outline now
- 00:19:55said why because production now if you
- 00:19:58don't make sales they're going to be out
- 00:19:59of a job
- 00:20:01so that's attention and you know if you
- 00:20:03try and sell us down the bloody river
- 00:20:05production though they can't deliver it
- 00:20:07so they'll hold off and they say what
- 00:20:09happens when we disagree I said what if
- 00:20:10you really want you can come and see me
- 00:20:12and I said if you come and see me I'll
- 00:20:15adopt winnie-the-pooh strategy with owl
- 00:20:17and when they look confused
- 00:20:18I left them to go bring that up but
- 00:20:21those of you didn't have a proper
- 00:20:23childhood right he basically said yes
- 00:20:25and they were alternately or around them
- 00:20:26because he couldn't be bothered to
- 00:20:28listen and that was a deliberate
- 00:20:30creation of tension within the system
- 00:20:32right and I think this is the other big
- 00:20:33problem we got with OD because they've
- 00:20:35taken this cybernetics model yeah and I
- 00:20:38think this is the real problem it's a
- 00:20:39cybernetics model it's not a natural
- 00:20:41model they've been trying to eliminate
- 00:20:43tension in the system as a function of
- 00:20:45leadership development and
- 00:20:46organizational design and from an
- 00:20:48ecological point of view without tension
- 00:20:51that's deeply problematic it's also
- 00:20:53discovery I'm going to come back to the
- 00:20:55reason I slightly sunburned at the
- 00:20:57moment with two doctor friends yeah we
- 00:21:00think they'll in walking in one Valley
- 00:21:02in the Brecon Beacons now for six weeks
- 00:21:05because there's no other part of Wales
- 00:21:07which is open so we keep walking up to
- 00:21:09the board and looking at the promised
- 00:21:10land and coming back now what you've
- 00:21:13actually got is in enabling constraint
- 00:21:15because we've got it's the only place we
- 00:21:18can walk above 2,000 feet within one
- 00:21:20day's driving distance all right
- 00:21:22we are exploring routes we who have
- 00:21:24never normally explore and we've now
- 00:21:26found four or five routes which are not
- 00:21:28in the guidebooks which are much better
- 00:21:30than the guidebook routes because
- 00:21:32they're constraint and attention in the
- 00:21:34system has forced us to adapt to
- 00:21:37something because we didn't have free
- 00:21:39full resource and I think that's the
- 00:21:40other issue about my argument is you use
- 00:21:43the informal network to decide the
- 00:21:45formal system because something is
- 00:21:47sustainable in the informal system the
- 00:21:49energy costs of making it formal is very
- 00:21:51low where if something isn't natural
- 00:21:54in the system the energy cost of
- 00:21:56creating it is very high going that day
- 00:22:02I was just I was just picking out
- 00:22:06nuggets from you all because Jade
- 00:22:08localized peakedness that was an awesome
- 00:22:11phrase so I think that's one we have to
- 00:22:13make a note of and I once said to some
- 00:22:17folks at 3m when I was teaching there I
- 00:22:19said that you should pay your
- 00:22:20salespeople on delivery not on contracts
- 00:22:24or sales because that would ensure they
- 00:22:26could only sell what you could deliver
- 00:22:28they never adopted it of course and then
- 00:22:32we were talking about needing command
- 00:22:33and control when we're still in chaos
- 00:22:35and I'd warrant we're still in chaos and
- 00:22:38I'd ask do we really have any command
- 00:22:40and control leadership right now because
- 00:22:42we're in motion hello drives into it
- 00:22:45Nigel we said to keep diving in you know
- 00:22:47and then we keep diving back we haven't
- 00:22:49realized I mean the problem is Fascists
- 00:22:54thinks chaos is a feature it allows them
- 00:22:57to make those radical decisions without
- 00:23:00being punished for it right so they
- 00:23:02don't make good decisions but they make
- 00:23:04random decisions that benefit them
- 00:23:06bursal basically reorganize as a sort of
- 00:23:14public public funding of private
- 00:23:16enterprise government and and that's a
- 00:23:19danger during a crisis the fascists will
- 00:23:21always come in in this project all right
- 00:23:23we probably need to get away from
- 00:23:24politics and back to organizational
- 00:23:27design because this could get a little
- 00:23:28bit messy I guarantee your Prime
- 00:23:30Minister if you want yes yes we could
- 00:23:33spend a lot of time there one of the
- 00:23:35things I suppose I've noticed is like I
- 00:23:39think Iraq is really useful in some
- 00:23:42contexts but there's a couple of things
- 00:23:44it does first of all it makes complex
- 00:23:46change really hard and secondly it puts
- 00:23:48space between the customer and the
- 00:23:51outcome or the hater is more able to
- 00:23:59achieve changed in the committee this is
- 00:24:02true but what we kind of did me there
- 00:24:04Joel we said all right so we've got this
- 00:24:05cross-functional team which is really
- 00:24:08optimized for complex change and now
- 00:24:11what I'm seeing is an over index on the
- 00:24:14cross-functional team so people are kind
- 00:24:16of going alright we'll get rid of all
- 00:24:19the hierarchy and turn organizations
- 00:24:21into these cross-functional teams like
- 00:24:24collections of cross-functional teams
- 00:24:26and they're forgetting all the benefits
- 00:24:28that we had with the original Iraq like
- 00:24:33what one of the things I would say like
- 00:24:36you know that would link what Andrew
- 00:24:39just said with where Sonja started is
- 00:24:41like distributed decision-making right
- 00:24:44is the super interesting idea is really
- 00:24:46important it comes from all sorts of
- 00:24:47different places including the military
- 00:24:49like how's it supposed to work what it's
- 00:24:51supposed to do and one of the things I
- 00:24:53used to call it the add the new agile
- 00:24:57leader syndrome and in in that in that
- 00:25:01realm what ends up happening is the
- 00:25:04leader advocates all decisions they
- 00:25:05don't they don't distribute the
- 00:25:07decisions they just go I'm not supposed
- 00:25:09to be making the decisions anymore this
- 00:25:10is an agile organization now which is
- 00:25:13like not the point at all in any way and
- 00:25:16so one of the things that I like to do
- 00:25:19with leaders has teach them what I call
- 00:25:20decision economies and basically I say
- 00:25:23to than this how big is your budget like
- 00:25:26let's say your budgets like a hundred
- 00:25:28dollars okay how many decisions can you
- 00:25:31make in a week oh you can make a six
- 00:25:35seven decisions I don't know how do you
- 00:25:36how would you know how many decisions to
- 00:25:38make we go how about this you should try
- 00:25:42to divide your budget into let's say
- 00:25:45three four or five
- 00:25:47so each decision is going to be worth
- 00:25:50two dollars how long will it take you to
- 00:25:52prepare for a two dollar decision if you
- 00:25:54if the only thing you had to spend was
- 00:25:56ten dollars okay so you had now have an
- 00:26:00economic structure for what the right
- 00:26:03size decisions you should be making is
- 00:26:05so you should try to avoid making like
- 00:26:08to set decisions and the way you're
- 00:26:11going to avoid that is you're going to
- 00:26:12teach people in the organization how to
- 00:26:15make those decisions for themselves and
- 00:26:17you're going to try to point to
- 00:26:20and teach the organization what types of
- 00:26:23decisions should come to you right so
- 00:26:27the way to do that is I you know the way
- 00:26:29I used to do is you just take a little
- 00:26:30piece of paper and every time someone
- 00:26:32asks you a question
- 00:26:33you write the question down answer the
- 00:26:35question and then after they leave you
- 00:26:37say what's that an interesting question
- 00:26:38or is that a not interesting question an
- 00:26:41interesting question is when we were
- 00:26:42like glad they asked me that that was
- 00:26:44really interesting and I thought I
- 00:26:45contributed and made things better and
- 00:26:48an interesting question is I felt like I
- 00:26:50had to make that decision because of
- 00:26:53reasons but I wish that I hadn't had to
- 00:26:56make that decision so I needed to go and
- 00:26:59work with the organization to make
- 00:27:01decisions that look like yes stay inside
- 00:27:04the organization to be made right and
- 00:27:06that ends up being to me a really
- 00:27:10critical aspect of organizational design
- 00:27:13which is teaching teams to to
- 00:27:15collaborate and to have productive
- 00:27:18conflict in between teams because the
- 00:27:21minute that that productive conflict
- 00:27:22falls down it starts going up and every
- 00:27:26level it goes up the information gets
- 00:27:29worse and worse if the type of decision
- 00:27:33that's being made is the wrong kind of
- 00:27:36decision and that's those five cent
- 00:27:38decisions instead of those two dollar
- 00:27:39decisions right so there's perfectly
- 00:27:42good things that leadership and
- 00:27:44management should be making decisions
- 00:27:46about they have access to information
- 00:27:47they have insights and relationships
- 00:27:50that other parts of the team don't have
- 00:27:52so there's definitely things that
- 00:27:54leaders should be making decisions about
- 00:27:56the problem is I think in a lot of
- 00:27:59organizations is that leaders see the
- 00:28:01thing that they do is production of
- 00:28:04decisions that's what they think like
- 00:28:06you know productivity mindset what I'm
- 00:28:08supposed to be producing is decisions
- 00:28:10and so they don't stop and say should I
- 00:28:13make this decision or not they just make
- 00:28:15them and that's that's where I think
- 00:28:18things fall down and go sideways and I
- 00:28:21think you know not that I'm a particular
- 00:28:22fan of scrum but you know the product
- 00:28:27owner is a role that has a specific kind
- 00:28:30of decision-making that it's supposed to
- 00:28:32do
- 00:28:33and when people don't do that or can't
- 00:28:36do that inside the organization things
- 00:28:39go sideways pretty quickly right and
- 00:28:41that's for a long time for about two
- 00:28:43years like product owner was like I
- 00:28:45thought was the worst role you could be
- 00:28:47assigned because it was such a [ย __ย ]
- 00:28:48mess sorry
- 00:29:01so the idea you know they got rid of the
- 00:29:04whole concept of jad from the SDM which
- 00:29:06was far more fluid and engaging right
- 00:29:08and I think that's where you get this
- 00:29:10pendulum swing so the great irony of
- 00:29:12agile is they just swung the pendulum
- 00:29:14right over to the other side yeah rather
- 00:29:17than realizing so they make it an
- 00:29:19either/or and everybody in outdoor
- 00:29:20produces these 32 : tables on the left
- 00:29:23perfectly sensible things which we now
- 00:29:26have to abandon and on the right are a
- 00:29:28bunch of new a fluffy bunny idealistic
- 00:29:30statements which are never going to
- 00:29:32happen anyway but we'll sell Marcus owns
- 00:29:33it and the great irony of our job is it
- 00:29:36claims to be distributed but it's
- 00:29:38dominated by a limited number of
- 00:29:40egomaniac companies trying to sell their
- 00:29:42own personal certification and control
- 00:29:45the fields so they don't even lead their
- 00:29:46own dogfood to use that sort of phrase
- 00:29:48so I think we need to get into this both
- 00:29:51an or either/or and also this understand
- 00:29:54the context and the context you got no
- 00:29:58bloody idea what savvy leadership you
- 00:30:00want anyway I'm sorry son you go on like
- 00:30:06I want it in your blender I'm just gonna
- 00:30:09just throw a couple let me just throw a
- 00:30:11couple of things in there because we're
- 00:30:14gonna put some bleeps in the video
- 00:30:16before we release it obviously though
- 00:30:17you came losing the Train Authority
- 00:30:27completely but the product owner role
- 00:30:30the product owner role is a great idea
- 00:30:32the problem is that the typical
- 00:30:34narcissistic leadership and I do mean
- 00:30:36that when I say that because I've
- 00:30:37experienced it significantly neuters the
- 00:30:40whole purpose of the product down we put
- 00:30:43a product owner there it's gonna make
- 00:30:44the decisions based upon the
- 00:30:46bike from a customer or customers and
- 00:30:49he's gonna work in this sort of
- 00:30:51distributed autonomous way to deliver
- 00:30:53value and then the bosses come and want
- 00:30:55to know everything the product town is
- 00:30:57doing it overrule them more times and
- 00:30:58not because the product owner is never
- 00:31:00in a position of inferred seniority to
- 00:31:03make decisions and to say no to the boss
- 00:31:05now some organizations it works in but
- 00:31:08invariably the product owner can only
- 00:31:10say yes within a range of inhibiting
- 00:31:12constraints not enabling constraints I
- 00:31:17like the phrase production of decisions
- 00:31:20the c-suite seems to be Renu Maury
- 00:31:23Taedong the number of decisions they
- 00:31:25make good bad or indifferent but a lot
- 00:31:28of what you've just been talking about
- 00:31:30sivori endorses some of the stuff I've
- 00:31:32been working on again back to boundary
- 00:31:33spanners intent based leadership
- 00:31:37psychological safety active listening
- 00:31:40these are all things that are necessary
- 00:31:42to create the environment that some of
- 00:31:45you have been talking about and now
- 00:31:46we're not the vision they're necessary
- 00:31:48but not sufficient everybody goes in
- 00:31:51that key concept is one of the most
- 00:31:53important ones around things Andrew you
- 00:32:04spoke about how hierarchies can actually
- 00:32:06be can inhibit change I think that's
- 00:32:09what you say today and if you said it's
- 00:32:12it's easier for a dictator to bring
- 00:32:14change than by committee but I what I
- 00:32:17wanted to just add to this then the
- 00:32:19dictator needs to want to and I think
- 00:32:21that's part of the problem because I I
- 00:32:25was reminded of I think it's in so
- 00:32:28heifetz in Lenski and the practice of
- 00:32:30adaptive leadership they talked about
- 00:32:32this notion of there's no such thing as
- 00:32:34a dysfunctional system it is set up
- 00:32:37perfectly to get you know to get the
- 00:32:39results it's getting so it serves
- 00:32:41somebody in some way or a couple of
- 00:32:43somebodies for the system to be the way
- 00:32:45it is and I think you know so yes it's
- 00:32:50it's probably easier for a dictator to
- 00:32:53mandate change but it serves the system
- 00:32:57in some way to be like it is you know we
- 00:32:58look at it from
- 00:32:59Seiden we said that it's a super
- 00:33:01dysfunctional system but it's getting
- 00:33:03it's set up to get particular results
- 00:33:05that it might not see as is as
- 00:33:07dysfunctional China is better able to
- 00:33:14act on climate change than the US and
- 00:33:18that's an example there's a point where
- 00:33:21you reach a level of crisis where
- 00:33:24consultation is effectively an
- 00:33:26inhibiting constraint not enabling
- 00:33:28constraint to use that phrase there is a
- 00:33:31context shifts into a level where the
- 00:33:33timeframe for decision is reduced the
- 00:33:36impact of decision is reduced then the
- 00:33:39more engagement you have in a decision
- 00:33:41the less likely the right position is
- 00:33:43going to be made and that that's why
- 00:33:46military environments keep strict
- 00:33:48hierarchies which they will fall back to
- 00:33:49if it comes to good sorry saying yeah no
- 00:33:56no I just want to say I take the point
- 00:33:58in crisis you know this has been in
- 00:34:01conversation even before we entered this
- 00:34:03level of crisis and I think just the the
- 00:34:07amount of uncertainty that you know
- 00:34:09leaders have to face you know and and
- 00:34:11you know Jeb you said um you know
- 00:34:14leaders see their role almost as making
- 00:34:16decisions you know that's that's their
- 00:34:17job but I've in some companies I've seen
- 00:34:20the opposite where leaders in really
- 00:34:23senior positions are so paralyzed almost
- 00:34:25by the uncertainty that they actually
- 00:34:28don't make decisions now because they
- 00:34:30don't make the since that kind of
- 00:34:32creates so many competing priorities
- 00:34:34lower down in the organization that the
- 00:34:36whole thing just grinds to training
- 00:34:40which produced though it used to be
- 00:34:44until the 80s leaders grew up in the
- 00:34:47company they evolved with the company
- 00:34:49they occupied different management roles
- 00:34:50they knew how the thing worked and then
- 00:34:53we created this class of professional
- 00:34:54leadership where they think their
- 00:34:56function is to make decisions based on
- 00:34:58objective evidence based spreadsheets
- 00:35:00and of course that breaks down
- 00:35:02completely in a crisis so they just
- 00:35:04basically try and get more data to try
- 00:35:06and make a more objective decision yeah
- 00:35:08because they haven't got that ability to
- 00:35:10make it call and then especially often
- 00:35:12give is
- 00:35:13one good thing about the US Health
- 00:35:14Service is that all the hospitals are
- 00:35:17run by doctors if you go in and meet the
- 00:35:20head of a hospital in the u.s. you meet
- 00:35:21somebody in a white coat they're still
- 00:35:23doing doctor work is the calories if I
- 00:35:25go back to house yeah you go into the UK
- 00:35:28you meet a manager with five assistants
- 00:35:30and half a dozen data analytics guys
- 00:35:32we've got no medical experience
- 00:35:34whatsoever so they can only make
- 00:35:37decisions based on the center of a
- 00:35:38normal distribution so the minute you
- 00:35:41hit an environment where the
- 00:35:42distribution isn't normal anymore
- 00:35:43they're just lost
- 00:35:44whereas some do you've grown up in the
- 00:35:46environment would know what to do so
- 00:35:50like you know like as another version of
- 00:35:53the of this metaphor
- 00:35:55you know the Prussian army figures out
- 00:35:58maneuver warfare and what you know what
- 00:36:01people end up talking a lot about is the
- 00:36:03rapidity of the decision-making inside
- 00:36:05of maneuver warfare and the distributed
- 00:36:07nature that of the decision making
- 00:36:09pretty go look at what ver monkey was
- 00:36:12actually talking about basically he what
- 00:36:13he said was the previous form of war
- 00:36:17making that the Prussians were taking
- 00:36:19was basically a highly centralized
- 00:36:22commanding control structure and the
- 00:36:25problem with that wasn't just that
- 00:36:27decisions couldn't get made fast enough
- 00:36:29it was that the managers inside of the
- 00:36:31organization had been be skilled they
- 00:36:34did not know how to make decisions so
- 00:36:37part of the decentralization of decision
- 00:36:41making is to re-skill the individuals
- 00:36:45who need to make decisions in order to
- 00:36:48increase the adaptive capacity of the
- 00:36:51organization for times in which
- 00:36:53challenges occur because again you know
- 00:36:56the way I was trying to describe it is
- 00:36:58like flat is calm the middle is this
- 00:37:01header are key which is responsive to
- 00:37:02the actual environment and true locked
- 00:37:06in command and control is a survival
- 00:37:08mode you want to avoid going into
- 00:37:11survival mode preferably you like like
- 00:37:13to keep it in the reactive ability to
- 00:37:17respond adaptive capacity mode right and
- 00:37:21it doesn't mean you don't want to be
- 00:37:23able to do this survival mode it's kind
- 00:37:25of like having a you know
- 00:37:26a lifeboat it's good to have you
- 00:37:28shouldn't use it all the time and and
- 00:37:31rescaling management rescaling people to
- 00:37:34be able to keep the fluidity and
- 00:37:36decision-making inside the organization
- 00:37:38I think that's part of what we need to
- 00:37:41get better at and what we need to
- 00:37:42acknowledge is that the praxis of
- 00:37:44management is being destroyed by
- 00:37:48objective top-down control I'm I think
- 00:37:55the democracy as has navigated a lot of
- 00:37:58crisis seas over the years and well I
- 00:38:03think that China might be currently
- 00:38:04equipped I think that might be to do
- 00:38:06with agents in the system that are
- 00:38:08acting against democracy at the moment
- 00:38:11rather than the system itself which
- 00:38:14we're not thinking that organizational
- 00:38:16design you kind of good alumni networks
- 00:38:19that are quite rich that sit outside of
- 00:38:22organizations and there is a vested
- 00:38:24interest in some of those organized
- 00:38:27alumni networks to create large-scale
- 00:38:30change that change between organizations
- 00:38:34see that the large codes are the big
- 00:38:39four really do manage those networks so
- 00:38:42well and make sure they're putting
- 00:38:44people into organizations into
- 00:38:46leadership roles and usually the intent
- 00:38:49there is to follow them that follow
- 00:38:51behind them with some sort of big change
- 00:38:53so perhaps in the OD context there's
- 00:38:59something that a little bit malicious in
- 00:39:02the system that's creating large scale
- 00:39:07and in inhumane and quite negatively
- 00:39:11impactful change as well okay but the
- 00:39:14trouble with the management consultancy
- 00:39:16model is is what I call the mistletoe
- 00:39:17model yeah it ends up throttling the oak
- 00:39:21trees because it's monocultural so what
- 00:39:25is what it's basically doing is to
- 00:39:27create is craziness at a parasitical
- 00:39:30relationship yeah which lacks requisite
- 00:39:33diversity within the system and I think
- 00:39:36that's a big problem with that model is
- 00:39:38very successful
- 00:39:39or it's been successful for a limited
- 00:39:42period of time
- 00:39:43similarly democracy can't like it
- 00:39:46doesn't really start in Britain until
- 00:39:48around about 1850 maybe the 19th century
- 00:39:52yeah maybe the 20th century and it
- 00:39:55actually starts once the population goes
- 00:39:57over a certain level it starts to loses
- 00:39:59capacity well the short term focus and I
- 00:40:04always go back to the American
- 00:40:05Constitution it says nobody should be
- 00:40:07elected as president by the popular vote
- 00:40:09because we'll get demagogues and yeah
- 00:40:12populist but it says you need
- 00:40:15involvement in this so please elect five
- 00:40:17good men from your state it was men in
- 00:40:19those days and they can get together and
- 00:40:21decide who should be President and if I
- 00:40:25look at the work we now do in our cities
- 00:40:26and assemblies and citizen juries which
- 00:40:29is essentially a really big thing for us
- 00:40:31over the next nine months yeah that's
- 00:40:33where you start to go is factory its
- 00:40:35delegate of democracy now of course the
- 00:40:38agile guys and the IT people on this
- 00:40:40want a formula so they've gone down this
- 00:40:43route about you decide who's an expert
- 00:40:45you online delegate your expertise to
- 00:40:47that person they then vote for you
- 00:40:49that's not going to work because that
- 00:40:51will be manipulated but the concept of
- 00:40:53assembling a group of people to make a
- 00:40:55decision yeah because then that group to
- 00:40:59make a hard decision but they've got
- 00:41:01legitimacy the minute somebody knows if
- 00:41:04they make a decision people don't like
- 00:41:05they're going to lose a vote at the next
- 00:41:07election and so you've lost it yeah and
- 00:41:09at the moment what the planet needs is
- 00:41:12long-term decisions that our political
- 00:41:15cycle is a short-term decision cycle and
- 00:41:18the same is true in organizations
- 00:41:20they've been forced into shorter no
- 00:41:22soldier decision like cut cycles based
- 00:41:25on faster and faster returns without
- 00:41:27building the expertise into the system
- 00:41:30that will digitize hard decisions so yes
- 00:41:35that's how hard decisions legitimize
- 00:41:37which matters yeah that's one big I'm
- 00:41:43sorry Sonya to change the topic okay
- 00:41:52thank you
- 00:41:53till the end of the hour and then she
- 00:41:55switches the topic yes so she can have
- 00:41:57the last word I wanted to take another
- 00:42:10tack but you finish your thoughts first
- 00:42:15well I should have got lost a little bit
- 00:42:17but I was coming back on the consultancy
- 00:42:19thing that everybody was talking about
- 00:42:21and they and Android risen about the big
- 00:42:24four or whatever it is nowadays
- 00:42:25consulting houses and we done a bit of
- 00:42:27banter on Twitter about this I think
- 00:42:29that in the last couple of days is that
- 00:42:32what I've seen over the years is these
- 00:42:35consultancies are perfectly equipped to
- 00:42:39prevent an organization creating an
- 00:42:41organizational design for themselves
- 00:42:43because what happens is you get certain
- 00:42:46leadership that abdicate their
- 00:42:47responsibility and accountability by
- 00:42:49outsourcing it to a large consultancy
- 00:42:52organization and then that consultants
- 00:42:55the organisation of once they're in
- 00:42:57their whole predication is to get more
- 00:43:00bums on seats more bodies in there less
- 00:43:02let's get more billable hours in there
- 00:43:05and so that that prevents us and so when
- 00:43:08I've come up against that and I tried to
- 00:43:10sort of elucidate people to date this
- 00:43:13sort of what's happening then that
- 00:43:15machinery pushes back with some ferocity
- 00:43:18and then you get this herd mentality
- 00:43:20where they all sort of suddenly suck in
- 00:43:23and draw ranks and protect the wounded
- 00:43:25individual that you're attacking and and
- 00:43:27you fail miserably so we have to look at
- 00:43:30the the whole way that organizations are
- 00:43:34outsourcing their problems to these
- 00:43:37gigantic consulting houses that aren't
- 00:43:40actually equip and actually don't care
- 00:43:42about solving your problems what the
- 00:43:44care about is making money and ensuring
- 00:43:47and they're parasitic comment from David
- 00:43:49think which is the fact that they are
- 00:43:51becoming a parasite sucking and bleeding
- 00:43:54dry the organization for their own
- 00:43:56survival rather than providing a
- 00:43:59mechanism a scaffolding which was the
- 00:44:02comment that raised some interesting
- 00:44:04comments on YouTube they the dam
- 00:44:07the comments but a scaffolding for the
- 00:44:08ization and get them through a period of
- 00:44:12time for when they can actually survive
- 00:44:15themselves but you know rather than let
- 00:44:18Dave come back on that comment on
- 00:44:20Twitter Sonia savers I'm a but I do one
- 00:44:29thing because I responded nitro really
- 00:44:31quickly I think the thing to understand
- 00:44:34about a lot of the big four is that to
- 00:44:37use Dave's chef's metaphor hey I make
- 00:44:41pizzas and the big four goes great I
- 00:44:43know a lot of people who make pizzas
- 00:44:45I've been in almost all their kitchens
- 00:44:47have you been in their kitchens I but
- 00:44:49you haven't been in their kitchens but
- 00:44:50I've been in their kitchens did you know
- 00:44:52that you spend 50 cents more per pizza
- 00:44:55than your friend on the street Oh would
- 00:44:59you like to know how their kitchens set
- 00:45:00up I can come in here and set your
- 00:45:02kitchen up like their kitchen setup that
- 00:45:05is what they're selling what they're
- 00:45:07selling is homogeneous a ssin of the of
- 00:45:09your organizational design based on the
- 00:45:13theory that unless your organizational
- 00:45:16design is producing some sort of
- 00:45:18radically massive value add you should
- 00:45:21you should look exactly like everybody
- 00:45:23else because then you mister manager
- 00:45:26executive know that you're not spending
- 00:45:28too much on labor right and that's
- 00:45:32that's really what they're selling and
- 00:45:33the trick that I think they have is and
- 00:45:35it's not it's not actually that they try
- 00:45:37to maximize this individual sale it's
- 00:45:40that they intentionally clip something
- 00:45:42in the kitchen that they know will have
- 00:45:44to be repaired later so you have to call
- 00:45:47them back every three years anyway sorry
- 00:45:50I worked in one of those for long enough
- 00:46:02I I think sometimes it is very much
- 00:46:04deliberate but I I just basically wanted
- 00:46:08to you know it's it's interesting one of
- 00:46:12the other things that I feel consultants
- 00:46:15don't do the big consultancies in any
- 00:46:17way is to not pend that
- 00:46:20client and to ask the critical questions
- 00:46:23around if the client really understands
- 00:46:26what it is that they need not
- 00:46:28necessarily what they want and I where I
- 00:46:33wanted to just take the conversation and
- 00:46:34and I I think it is something to set up
- 00:46:37a next one is I think we've been we've
- 00:46:40had so many really interesting
- 00:46:41conversations you know some about theory
- 00:46:46some a little bit about practice but you
- 00:46:47know I'm curious about you know one of
- 00:46:50the things that that we teachers well
- 00:46:52dave is we need to mean we need to meet
- 00:46:54systems where they are and if I think
- 00:46:56about some of the systems some of my
- 00:46:58client systems that are really really
- 00:47:00struggling right now they are large
- 00:47:03corporates with deep hierarchies or
- 00:47:06they've actually got matrices with very
- 00:47:10often senior leaders at the top who do
- 00:47:15not want to adopt new models who are not
- 00:47:19particularly interested in what we are
- 00:47:21talking about about scaffolding and
- 00:47:22themes of themes and all these things
- 00:47:24they are just focused on short-term
- 00:47:26profit and somewhere here in the middle
- 00:47:28there a couple of people either OD
- 00:47:31practitioners or managers who saying we
- 00:47:33need change but it's like they are you
- 00:47:36know I almost want to say something
- 00:47:38really rude but I want but they you know
- 00:47:40it's like they struggling and I can't
- 00:47:42get anything done and I'm wondering you
- 00:47:45know with everything that we've spoken
- 00:47:47about taking in a scenario like that how
- 00:47:50do you work with a system like that and
- 00:47:53actually help create change because some
- 00:47:55some of it ones that I'm seeing I'll
- 00:47:58take one example really large
- 00:47:59multinational company they've decided
- 00:48:01they are now abandoning annual
- 00:48:04performance assessments and it's just
- 00:48:07like a once-off now it's just gone and
- 00:48:09are they're going to train all the
- 00:48:11managers to become coaches so something
- 00:48:14that has propped up the system that the
- 00:48:16culture is kind of like a puller that
- 00:48:18the culture has structured around it's
- 00:48:20just being removed and all of the other
- 00:48:23consultancies are basically just you
- 00:48:24know clamoring to help them train their
- 00:48:26managers as coaches and there's not much
- 00:48:28conversation going on around how are you
- 00:48:31going to scaffold this process so that
- 00:48:33it doesn't actually end up doing
- 00:48:34more harm than good and so I think I'm
- 00:48:37really interested in exploring without
- 00:48:40collective wisdom what do we how do we
- 00:48:42deal with a scenario like that I think
- 00:48:48no I think that's a really good topic
- 00:48:52for the forth conversation I didn't know
- 00:48:54there was going to be a fourth now there
- 00:48:55is definitely going to be a fourth
- 00:48:56Andrew but I think the other comment I
- 00:49:01picked up on is what how do we stop
- 00:49:04these Consulting houses - you know
- 00:49:06delivering what people want rather than
- 00:49:09what they need and and the reality of it
- 00:49:12is and I've worked with all the big the
- 00:49:14big sort of major players in the game
- 00:49:16rather than the small boutiques like we
- 00:49:18and they all it's always never piss off
- 00:49:22the client he never never upset the
- 00:49:24client give them what they want you know
- 00:49:26rather than and and I've been fired more
- 00:49:28times than I've been hired as a phrase I
- 00:49:30often use because I tell them what they
- 00:49:32need and they don't like hearing what
- 00:49:34they need and but that's that's that
- 00:49:37therein lies the problem and and what
- 00:49:39you've just described Sonja about he's
- 00:49:42majorly kind of like how do we actually
- 00:49:46get the leaders to accept some level of
- 00:49:49senior hierarchy to accept what they
- 00:49:52need rather than what they want you said
- 00:49:55something really important earlier it's
- 00:49:57not that they give the client what they
- 00:49:58need what they do is they have
- 00:50:01modernized what they think everybody
- 00:50:04else is doing to create a pattern that
- 00:50:06the client falls into which they can
- 00:50:09then satisfy so it's it's downward
- 00:50:10spiral of conformity okay I used to call
- 00:50:16it terraforming like it I have a I have
- 00:50:20a great way for you all to work is
- 00:50:22amazing but the first thing I have to do
- 00:50:24is completely level your organisation
- 00:50:27make it completely flat and then we can
- 00:50:29build up from there and if I make it
- 00:50:31look like everybody else's kitchen then
- 00:50:33I can teach you how to do anything it's
- 00:50:34like I don't know that's the right way
- 00:50:37to go about it I also like you know
- 00:50:40Sonia like you know you've hit on one of
- 00:50:43the things I love which is transition
- 00:50:45design like the actual design
- 00:50:47moving from one place to another as
- 00:50:49opposed to the design of the end point
- 00:50:50itself and I used to say to people you
- 00:50:54have a you have an imagination in your
- 00:50:56head that we can make a big switch and
- 00:50:58that just one day you just come and you
- 00:51:00flip the switch and then everybody's in
- 00:51:02the in the new thing and that will never
- 00:51:04happen that's never gonna exist like
- 00:51:07that that there's no organization that
- 00:51:09has ever had a change that's anything
- 00:51:11like that and therefore maybe you want
- 00:51:14to design the transition between your
- 00:51:16imagined future state which we can talk
- 00:51:19about more but the transition is
- 00:51:22probably more important than the end
- 00:51:23state let's go with that and you should
- 00:51:31then we'll show you what's working they
- 00:51:32even decide what you want to do with it
- 00:51:34rather than the same will redesign as if
- 00:51:36you say that the big consultancies
- 00:51:38moving straight away because nobody gets
- 00:51:40five - implementing the Mackenzies
- 00:51:43report yeah and and that's that that's
- 00:51:46where their strength comes from you're
- 00:51:48not gonna get fired if you do what they
- 00:51:49say because you you you could you had
- 00:51:52your second pair as a boutique you have
- 00:51:55to get to the board and as McKinsey
- 00:51:58you're already on the board one more for
- 00:52:03people to think about before next week
- 00:52:05they're just a tack on to that - Sonja's
- 00:52:08coming is how do you make a change
- 00:52:10that's big enough that it doesn't get
- 00:52:12eaten by the machine but small enough to
- 00:52:15be appreciative of the complexity of the
- 00:52:17system that's something I'm very
- 00:52:19interested in
- 00:52:23he's gonna slay stick this is a good
- 00:52:26place at the end record Andrew good
- 00:52:28stuff
- Leadership
- Emergent property
- Hierarchy
- Social practice
- Organizational design
- Consultancies
- Adaptive capacity
- Decision-making
- Tension
- Change management