Dave Snowden and friends - Organizational Design - Part 5
Resumo
TLDRIn this session, the focus is on the complexities of organizational design, particularly adaptive capacity—an organization's ability to adjust and respond effectively to changes while maintaining operational stability. The speakers discuss the importance of informal networks in fostering communication and adaptation by allowing knowledge to flow freely across different parts of the organization. They emphasize the need for good conflict management as a means to stimulate innovation and problem-solving. The challenges of matrix organization structures are highlighted, noting how they can complicate decision-making through multiple lines of authority. The pitfalls of traditional maturity models in agile transformations are also discussed, as they often impose rigid frameworks that do not fit the adaptive nature of agile practices. Moreover, the session touches on the issues faced in knowledge management, due to a misunderstanding of knowledge as a fixable asset rather than a network of dynamic capabilities. The session concludes by discussing practical strategies for leaders to manage large-scale organizational changes, emphasizing coordination, enabling communication through informal networks, and focusing on maintaining 'messy coherence'—balancing the inherent messiness of change with coherence to sustain the organization's structure.
Conclusões
- 🛠 Adaptive capacity is like a budget for adjustments.
- 🌐 Informal networks enhance communication and knowledge flow.
- 🤝 Conflict fosters innovation and problem-solving.
- 📊 Matrix structures complicate decision-making authority.
- ❌ Traditional maturity models may hinder agile transformations.
- 📚 Knowledge management is about dynamic learning, not storage.
- 💡 Economic terms can explain adaptive capacity's value.
- 🔄 Frequent reorganizations can indicate strategic failure.
- 🌪 'Messy coherence' balances flexibility and stability.
- 🗣 Leaders should coordinate, allowing teams to self-organize.
Linha do tempo
- 00:00:00 - 00:05:00
In the opening session, participants reflect on the previous conversation on organizational design, specifically focusing on the concepts of adaptive capacity and potential pitfalls. The idea of adaptive capacity is introduced as a sort of 'budget' that organizations have, which can grow or shrink similar to social capital, and essential for managing organizational stability and flexibility.
- 00:05:00 - 00:10:00
The discussion expands on the adaptive capacity concept, highlighting the role of trust and human involvement as critical components. It emphasizes the importance of moving away from the notion of organizational stability towards understanding that organizations are constantly in flux and dealing with ongoing failures, with humans being the key to keeping the systems operational.
- 00:10:00 - 00:15:00
The conversation shifts to practical strategies for managing adaptive capacity, such as avoiding monocultural thinking, ensuring common ground for scanning widely, and reducing toil as seen in Site Reliability Engineering (SRE). These strategies help maintain and boost adaptive capacity, crucial for successfully navigating unforeseen challenges like COVID.
- 00:15:00 - 00:20:00
The group debates the notion of capital within organizations, distinguishing between monetary and non-monetary capital such as human, knowledge, and social capital. They argue that adaptive capacity and social capital do not necessarily correlate with wealth, but rather with how well organizations invest in and manage human networks and relationships.
- 00:20:00 - 00:25:00
Attention turns towards the implications of connectivity and resilience in system design. The concept of having a loosely connected system that can flexibly adjust is discussed, alongside the risks of tight connections leading to failure under stress. The significance of systems being adaptively both loose and tight at times is underscored.
- 00:25:00 - 00:30:00
The session explores social network stimulation versus social network analysis, advocating for more organic community development. The importance of informal networks is reiterated, positioned against the failures of forced organizational structures. The idea that informal networks are essential for knowledge flow and resilience is highlighted.
- 00:30:00 - 00:35:00
As the conversation delves into practical advice for organizational design, it's suggested that fostering heterogeneous teams and minimizing hierarchical constraints can nurture informal network growth. The focus is on enabling environments where informal yet structured networks can naturally form and evolve.
- 00:35:00 - 00:40:00
Debate arises around the role of matrix organizations and how they often lead to confusion and conflict. The concept is criticized for perpetuating inefficiencies and becoming symbolic of bureaucratic difficulty, rather than facilitating effective organizational design or adaptability.
- 00:40:00 - 00:45:00
Further discussion touches on the challenges of implementing agile methodologies, where structures fail to adapt to new ways of thinking. The dialogue emphasizes the importance of allowing functional leadership to evolve organically rather than imposing rigid frameworks like matrix models or community practices.
- 00:45:00 - 00:52:12
The session concludes with reflections on organizational transformation and maturity models. Recognition is given to the challenges of measuring success in transformations and the pitfalls of using maturity models for assessment. The importance of having systems and methods that are purposefully messy but coherent, allowing for flexibility and adaptation, is emphasized.
Mapa mental
Vídeo de perguntas e respostas
What is adaptive capacity in organizational design?
Adaptive capacity refers to an organization's ability to adjust and respond to changes or challenges while maintaining stability.
How can informal networks benefit organizations?
Informal networks can enhance communication, facilitate knowledge sharing, and increase adaptive capacity by allowing information to flow smoothly between different parts of an organization.
What is the role of conflict in organizational health?
Conflict is essential for healthy organizations as it drives innovation and problem-solving by challenging existing norms and facilitating new ideas.
How does the matrix organization structure affect decision-making?
Matrix structures can complicate decision-making due to multiple reporting lines and potential conflicts between different parts of the organization.
What is the issue with traditional maturity models in agile transformation?
Traditional maturity models often impose hierarchical structures that do not align with the flexible and dynamic nature of agile practices.
Why do organizations face challenges with knowledge management?
Knowledge management often struggles because it is seen as a static resource to store rather than a dynamic process of continuous learning and adaptation.
What is the significance of economic terms in adaptive capacity?
Adaptive capacity can be likened to a budget or social capital, emphasizing its importance as a resource that can be accumulated and spent within an organization.
What is the impact of continuous reorganizations in companies?
Frequent reorganizations can be destabilizing and may indicate failure in strategy or leadership, rather than effectively addressing underlying issues.
Why is the concept of 'messy coherence' important in organizational design?
'Messy coherence' allows for flexibility and adaptability within an organization, balancing stability with the constant change of dynamic environments.
How can leaders better manage large-scale organizational changes?
Leaders should focus on coordination and enabling informal networks rather than attempting to control every decision, allowing teams to adapt and self-organize.
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- 00:00:03okay
- 00:00:04and welcome to the fifth session
- 00:00:07of these conversations that we've been
- 00:00:09having on organizational design
- 00:00:11in the last session uh we spoke and
- 00:00:14spoke at
- 00:00:15capacity um and we spent a fair bit of
- 00:00:18time
- 00:00:19talking about uh some of the some of the
- 00:00:22things you can get in trouble with
- 00:00:23in organizational design um i'm gonna
- 00:00:27kick off today we had a little we had a
- 00:00:30bit of a conversation about adaptive
- 00:00:31capacity last time but we were
- 00:00:33really hoping that jade was there um to
- 00:00:37add a bit of his at some of his thoughts
- 00:00:40in
- 00:00:40and i might also introduce this session
- 00:00:42by telling everyone
- 00:00:44that my child's teacher gave them a
- 00:00:47rube goldberg project today
- 00:00:51there is a special place in hell
- 00:00:52reserved for people who do that to
- 00:00:54parents
- 00:00:54in lockdown
- 00:01:00um yeah i um i watched a bit of the last
- 00:01:03session
- 00:01:03um adaptive capacity is a an interesting
- 00:01:07topic to me i i come to adaptive
- 00:01:10capacity from the resilience engineering
- 00:01:12community um so like uh people like john
- 00:01:15all spa dr woods and things like this
- 00:01:18and that that emerges from a set of
- 00:01:21theory called safety two theory
- 00:01:23um from a guy named decker
- 00:01:26from the university of lund where a
- 00:01:28bunch of uh a bunch of computer nerds
- 00:01:31have been
- 00:01:31going recently to get master's degrees
- 00:01:35magically they all tend to end up at
- 00:01:37netflix
- 00:01:38because netflix likes to hire these lond
- 00:01:40graduates
- 00:01:41um but the the idea of adaptive capacity
- 00:01:45there um is this idea that
- 00:01:49roughly like an organization has
- 00:01:52i do this in economic terms i don't
- 00:01:54necessarily think they would
- 00:01:56totally agree with me by doing it this
- 00:01:57way but like there's not a budget
- 00:02:00of adaptivity that any organization has
- 00:02:02and you can grow
- 00:02:03and shrink that budget i think of it a
- 00:02:05little bit like social capital
- 00:02:07uh we like trust you can grow and shrink
- 00:02:09trust by
- 00:02:10and and organizations that have greater
- 00:02:12trust can do things that or
- 00:02:13that organizations have low trust can't
- 00:02:15do right so there's a there's a way in
- 00:02:18which
- 00:02:18that social capital is a thing that you
- 00:02:21can spend
- 00:02:22to do something same thing with adaptive
- 00:02:24capacity it's kind of like a budget
- 00:02:26and the way that um that safety two
- 00:02:29people like to think about this
- 00:02:31is they want you to first stop thinking
- 00:02:34of your organization as being ever
- 00:02:36um stable or ever uh
- 00:02:40the easier way to say it uh your your
- 00:02:43organization is constantly failing
- 00:02:45all the time especially the technology
- 00:02:47involved in it
- 00:02:48your technology is constantly in a state
- 00:02:50of failure
- 00:02:51um and the humans that are there have a
- 00:02:54unique capability a unique coping
- 00:02:57capability so
- 00:02:58uh you know this this would uh lead us
- 00:03:00towards things like
- 00:03:02sense making um skillful coping things
- 00:03:06like that
- 00:03:07as a set of topics but that humans are
- 00:03:10the thing that actually
- 00:03:11keeps the organization uh
- 00:03:14running and and that that contribution
- 00:03:18that the humans make to the
- 00:03:19socio-technical system is
- 00:03:21its adaptive capacity right uh so
- 00:03:25the important part being here that
- 00:03:26there's an idea that
- 00:03:28you stay roughly in control of the
- 00:03:31system in other words the system appears
- 00:03:33relatively stable and reproduces itself
- 00:03:36relatively stably um by the way whether
- 00:03:39that stability is good or
- 00:03:41bad is a whole other topic right like
- 00:03:43you can stably be in a bad place
- 00:03:46and the humans can reproduce that
- 00:03:47badness as well as goodness
- 00:03:50but the point being that
- 00:03:53events that happen and occur in the
- 00:03:56world
- 00:03:57could outstrip your adaptive capacity so
- 00:04:00there's a there's a concept in which
- 00:04:02um you are the the world
- 00:04:05asks the organization to do something
- 00:04:08and the organization
- 00:04:09is not capable of doing that because it
- 00:04:12has run out of adaptive capacity
- 00:04:14um so it then it locks up or freezes up
- 00:04:17or
- 00:04:18you know i like to think of it kind of
- 00:04:19like fight or flight type
- 00:04:21theory starts kind of hooking in
- 00:04:24and so the idea of this is is two things
- 00:04:27that come out of that when you want to
- 00:04:28kind of practically excuse me
- 00:04:31practically manage for
- 00:04:33adaptive capacity one is develop your
- 00:04:35adaptive capacity which has to do with
- 00:04:37things like
- 00:04:38uh avoiding trying to get everybody on
- 00:04:42the same page
- 00:04:43in other words avoiding kind of
- 00:04:45monocultural
- 00:04:46mono thinking that reduces your adaptive
- 00:04:48capacity
- 00:04:49but ensure that you have common ground
- 00:04:52so
- 00:04:52these are these are ideas that i've
- 00:04:54heard i i can't remember the exact
- 00:04:56phrase dave used for it i
- 00:04:57i like to use kind of like uh it's a
- 00:04:59balance between requisite variety
- 00:05:02and requisite coherence and those two
- 00:05:03things are in tension with each other
- 00:05:05dave has another term for it i can't
- 00:05:07quite remember right now i'm sure he'll
- 00:05:08remind us
- 00:05:09so that's one thing is like uh common
- 00:05:12ground
- 00:05:13minimum amount of shared uh
- 00:05:15understanding of what's happening in the
- 00:05:17world
- 00:05:18um so that everybody else can kind of
- 00:05:20scan widely
- 00:05:21um and then the second thing is um
- 00:05:25reduce toil uh and this is a concept
- 00:05:28from sre
- 00:05:29uh the site reliability engineering
- 00:05:33uh from google uh it's generally
- 00:05:36applicable i think
- 00:05:36in a lot of different situations and the
- 00:05:38idea of this is that
- 00:05:40if your system is constantly failing and
- 00:05:43you have a budget for dealing with that
- 00:05:44system failure
- 00:05:46that's budget is your adaptive capacity
- 00:05:49when you if you assume the adaptive
- 00:05:51capacity is a capability that the humans
- 00:05:53have
- 00:05:54then if you reduce the amount of time
- 00:05:56and energy they're spending
- 00:05:58maintaining stuff that's broken in
- 00:06:01obvious
- 00:06:02toil-ish kind of ways that then you
- 00:06:05actually kind of
- 00:06:06it's like managing the bottom line of
- 00:06:08your budget as opposed to increasing the
- 00:06:10top line so like
- 00:06:11you know the rough version is adaptive
- 00:06:14capacity can be increased by
- 00:06:16increasing humans abilities and by
- 00:06:19decreasing
- 00:06:20the toil of the system um involved
- 00:06:23and that that means that as you kind of
- 00:06:25go into
- 00:06:26um the unknown where events can happen
- 00:06:30like covid etc the organizations that
- 00:06:34are currently
- 00:06:35succeeding are the ones that had the
- 00:06:36greatest adaptive capacity they were
- 00:06:38able to not just
- 00:06:39like do this kind of lean startup pivot
- 00:06:42kind of
- 00:06:43bullshittery uh instead they were
- 00:06:45actually able to
- 00:06:47harness their resources and direct them
- 00:06:50in a way that allowed them to be more
- 00:06:53productive and
- 00:06:54i honestly think that part of that
- 00:06:58is that they were able to reorganize the
- 00:07:00flow of work
- 00:07:01through their organizations through the
- 00:07:03new constraints that appeared
- 00:07:06and that means both organizational and
- 00:07:08flow-based
- 00:07:09analysis of what's happening in their
- 00:07:12organizations
- 00:07:12so that they can kind of do that and i'm
- 00:07:14not sure that anybody did that
- 00:07:16explicitly i just think that
- 00:07:18organizations that have higher adaptive
- 00:07:19capacity do that naturally i guess
- 00:07:23jay do you think this is you mentioned
- 00:07:26budget as in money as well as as
- 00:07:28collateralizing people and knowledge and
- 00:07:30capability
- 00:07:31do you think that this is more capable
- 00:07:34for wealthy companies or do you think
- 00:07:36this is more whether investing in human
- 00:07:38capital and capability and knowledge and
- 00:07:40and continuous learning which do you
- 00:07:42think is more likely to succeed
- 00:07:44in what you've just defined so you know
- 00:07:47i used to do
- 00:07:48a quite a long lecture on the theory of
- 00:07:50capital and
- 00:07:51you know capital used to mean like
- 00:07:53literally owning things machines
- 00:07:55you know factories and you know the
- 00:07:58whole tayloristic view of the world
- 00:08:00comes about by the idea that the
- 00:08:01machines are and the factories are more
- 00:08:03valuable than the workers you can
- 00:08:05you want to tame the workers to apply
- 00:08:07them to the machines and make them
- 00:08:09replaceable
- 00:08:10and what you see as we kind of move more
- 00:08:12and more towards
- 00:08:13knowledge work frankly is a move from
- 00:08:15that to
- 00:08:16human capital so kind of development of
- 00:08:19human individuals
- 00:08:20to knowledge capital which i'm sure dave
- 00:08:23can take us on a great journey of uh
- 00:08:26knowledge management's uh successes and
- 00:08:28failures
- 00:08:31and then finally uh you know i think
- 00:08:33right now what's happening
- 00:08:34is in most organizations is social
- 00:08:36capital it's the it is the
- 00:08:38development of informal networks
- 00:08:41and then this adaptive capacity and
- 00:08:44those forms of capital
- 00:08:45uh don't have anything to do with direct
- 00:08:49monetary funds right it's not something
- 00:08:51you can
- 00:08:52monetize easily and in fact in kind of
- 00:08:55social capital theory
- 00:08:56right one of the things is that if you
- 00:08:58reduce those social relationships to
- 00:09:00transactions
- 00:09:02uh in other words you make them monetary
- 00:09:04as opposed to reciprocal
- 00:09:06there there are other issues that flow
- 00:09:08out of trying to monetize it directly
- 00:09:11uh and you know trust being something
- 00:09:13that is usually expended in
- 00:09:15in um kind of uh
- 00:09:18in non-reciprocal or transactional uh
- 00:09:21interaction so that makes any sense
- 00:09:23no i don't there was a regular debate
- 00:09:25between larry prusak and maya
- 00:09:27me over social capital because
- 00:09:30i used to argue it was the wrong framing
- 00:09:33yep
- 00:09:34because he talked about things like the
- 00:09:36favor bank
- 00:09:38and the implication was i'm investing in
- 00:09:41order to get a defined return
- 00:09:43right the reality is that's not the way
- 00:09:45the informal networks work and it's not
- 00:09:47the way that gifting works
- 00:09:49that's right and so i think and i think
- 00:09:51that was one of the big things when
- 00:09:53drastically wrong with knowledge
- 00:09:54management is they saw intellectual
- 00:09:56capital
- 00:09:57that's something you could store as
- 00:09:59something to be managed all right
- 00:10:01and it was kind of like and then because
- 00:10:03knowledge management went down the
- 00:10:04information specific route not the
- 00:10:06knowledge route
- 00:10:08um that was when we also got into giving
- 00:10:10people a job for two years or three
- 00:10:12years and not recognizing what happened
- 00:10:14with long-term employment and network
- 00:10:16density
- 00:10:17and what it ended up with is people
- 00:10:19rented their knowledge to the company
- 00:10:21rather than donating it yeah and that's
- 00:10:24where we still are because if you've
- 00:10:25only got guaranteed employment for a
- 00:10:27couple of years you'll do what you have
- 00:10:28to do and that's the limit of it
- 00:10:30so i think the the con framing things
- 00:10:33and i think this is key thing postcoded
- 00:10:37is framing things in terms of capital is
- 00:10:39probably the wrong thing
- 00:10:41i mean sonya and i were chatting about
- 00:10:42the blockchain earlier and the
- 00:10:44blockchain is just another means of
- 00:10:45exchange
- 00:10:46and the minute you have a means of
- 00:10:48exchange who owns the means of exchange
- 00:10:50has power
- 00:10:52so the thing which it's meant to value
- 00:10:54actually is made value-less
- 00:10:57and i think that's a significant factor
- 00:10:59in organizations
- 00:11:01i think the other thing is that i mean
- 00:11:03system
- 00:11:04that's why i don't like anti-fragile
- 00:11:06right um
- 00:11:08systems which have systems which are
- 00:11:10loosely connected have more resilience
- 00:11:12than systems which are tightly connected
- 00:11:14that's kind of like 101 complexity
- 00:11:16theory but if a system is too loosely
- 00:11:19connected
- 00:11:20um then it's then it's not operational
- 00:11:23and the other issue is it has to have
- 00:11:25effectively the ability to become
- 00:11:27slightly looser and slightly tighter at
- 00:11:29need
- 00:11:31and that's the problem the main your
- 00:11:33point about reaching capacity so you you
- 00:11:35have adaptive capacity up to a point but
- 00:11:37then you reach what's the catastrophic
- 00:11:39folding canary
- 00:11:40is it gets too much and you collapse and
- 00:11:42you can see that in individual mental
- 00:11:44breakdown
- 00:11:46um and some of the work i've done with
- 00:11:48special forces on this
- 00:11:50yeah what you see is huge adaptive
- 00:11:52capacity but when they break golf they
- 00:11:54break
- 00:11:56yeah because of the it's almost like
- 00:11:58there's kinetic energy stored up in
- 00:12:00in the way that and there's no release
- 00:12:02mechanism
- 00:12:03within the system so i think in in
- 00:12:05organizational design
- 00:12:08this i mean it's one of our key
- 00:12:09techniques which is social network
- 00:12:11stimulation which i devised when i was
- 00:12:13in ibm in the institute for knowledge
- 00:12:15management
- 00:12:16in total opposition to the idea of
- 00:12:18social network analysis which i thought
- 00:12:20was evil immoral and wrong and
- 00:12:22a bad idea anyway um on the basis that
- 00:12:26if you have everybody within three
- 00:12:27degrees of separation of everybody else
- 00:12:30the connections don't have to be visible
- 00:12:32for you to know that knowledge will flow
- 00:12:35definitely yeah and we also this is the
- 00:12:38first ever major canvas article this
- 00:12:40first one which started to win awards
- 00:12:42which was complex acts of knowing
- 00:12:44basically said formal community should
- 00:12:46only ever be created from existing
- 00:12:48informal communities
- 00:12:50because the energy cost of creating a
- 00:12:52formal community where there wasn't
- 00:12:54already a natural nodal density
- 00:12:56was too high to justify it going on and
- 00:12:59it's fascinating to see the agile
- 00:13:01community replicate
- 00:13:03every single mistake using exactly the
- 00:13:05same books
- 00:13:06yeah paulo that invector is being
- 00:13:08dragged out yet again
- 00:13:10based on one study he did on one
- 00:13:12engineering company and one point in
- 00:13:14time
- 00:13:14all right and that they're all it's a
- 00:13:17classic oh we got to design this thing
- 00:13:19yeah so rather than design an ecosystem
- 00:13:22they're designing something based on
- 00:13:23output that they've decided is desirable
- 00:13:26and that's where organizational design
- 00:13:28always gets wrong you can't design the
- 00:13:30outcome
- 00:13:31or the output qualities of a complex
- 00:13:33system
- 00:13:36so i'm just going to ask a question then
- 00:13:38because you know we
- 00:13:40i know we talked earlier on about you
- 00:13:42know practically how to do this and
- 00:13:44we're getting close in a lot of what
- 00:13:45youtube just been talking about
- 00:13:47so we talk about informal networks
- 00:13:49within three degrees of separation i'm
- 00:13:51going to come back to this rented
- 00:13:53people renting their knowledge in a
- 00:13:55moment but this informal network there's
- 00:13:57three degrees of separation so
- 00:13:59how do organizations enable this
- 00:14:02through organizational design because to
- 00:14:04your point dave if you over design or
- 00:14:06prescribe something
- 00:14:08you actually fail to achieve what you
- 00:14:10want to achieve
- 00:14:11so what advice can we give organizations
- 00:14:14looking at how
- 00:14:15because we want them to have this sort
- 00:14:16of not completely loosey-goosey sort of
- 00:14:19uh network but we want these informal
- 00:14:21networks which can evolve and change and
- 00:14:23adapt
- 00:14:24based upon self-organizing principles um
- 00:14:27so how do we guide organizations to
- 00:14:30enable the right environments to
- 00:14:32create this type of informal network
- 00:14:36it's what social network simulation was
- 00:14:38designed for and interestingly the first
- 00:14:40case on it was in australia with westpac
- 00:14:43that was the first time we ever ran it
- 00:14:46and the principle is you have heuristics
- 00:14:48for team formation
- 00:14:50which force diversity into teams and
- 00:14:52force people into teams with people they
- 00:14:54haven't worked with before that's quite
- 00:14:56deliberate
- 00:14:57so there's no presumptions yeah but
- 00:15:00people self-organize within those teams
- 00:15:02we use dating agency software for it
- 00:15:04so they can make the connection so they
- 00:15:06choose who they work with but within an
- 00:15:08enabling constraint
- 00:15:10and if the team achieves a defined
- 00:15:13externally measurable goal it has to be
- 00:15:15empirical
- 00:15:17then they get a reward so in westpac it
- 00:15:19was 20 million dollars of added value
- 00:15:20benefit to the client
- 00:15:22maximum team sizes five and a six-month
- 00:15:25sabbatical for all members of the
- 00:15:26william team
- 00:15:28and economically that was wonderfully
- 00:15:31cost-effective
- 00:15:32right i remember working on the models
- 00:15:34on this with peter allen if you run an
- 00:15:36sns every six months
- 00:15:38in a company with 40 annual turnover and
- 00:15:41only 20
- 00:15:42participation within two years everybody
- 00:15:45is within three degrees of separation of
- 00:15:47everybody else haven't been on ssd
- 00:15:50and and that's the principle you're
- 00:15:51triggering a process which like that's
- 00:15:53the system connect
- 00:15:55yeah in that sense so i think you know
- 00:15:59my my um current kind of obsessions with
- 00:16:02these things
- 00:16:03uh where current means maybe the last
- 00:16:06five or six years
- 00:16:07uh there's two things one one is um
- 00:16:10a relationship between um
- 00:16:13boundary roles and and something from
- 00:16:15this guy named bert
- 00:16:17who wrote a book about uh what he calls
- 00:16:19social capital brokerage
- 00:16:20and the important kind of concept to
- 00:16:23grab out of there
- 00:16:24i think is this idea that there's good
- 00:16:26uh brokerage and bad brokerage and so
- 00:16:28brokerage is just like
- 00:16:30there's information or some value
- 00:16:33somewhere in the company that somewhere
- 00:16:34else in the company could have right now
- 00:16:36right and
- 00:16:37so uh the way i usually uh kind of
- 00:16:39present it is like
- 00:16:41bill is working on a database problem
- 00:16:43and sally and another team is working on
- 00:16:45a database problem
- 00:16:46and when they both say it out loud it
- 00:16:49sounds
- 00:16:50similar enough that a a broker someone
- 00:16:53who
- 00:16:53moves in between the two teams would go
- 00:16:56oh
- 00:16:57these things are related and so
- 00:17:00bad brokerage looks like this the broker
- 00:17:03goes to bill
- 00:17:04and says bill tell me what you did
- 00:17:07and bill brings and the broker brings
- 00:17:09that to sally and says sally this is how
- 00:17:11to fix your problem
- 00:17:13why is that bad brokerage well first of
- 00:17:15all he's almost certainly
- 00:17:17not going to be able to extract the
- 00:17:19right
- 00:17:20knowledge quickly enough to transport it
- 00:17:23himself
- 00:17:23right and the result of that is sally
- 00:17:26tries to do what the
- 00:17:27broker tells him and it doesn't quite
- 00:17:29work
- 00:17:30and then he all that sally also now
- 00:17:33thinks the broker doesn't know what
- 00:17:34they're doing
- 00:17:35and also thinks that the uh bill doesn't
- 00:17:38know what he's doing either
- 00:17:39so you've like destroyed trust in the
- 00:17:41organization by
- 00:17:43moving knowledge around this way the the
- 00:17:45good version
- 00:17:46of of brokerage or or boundary spanning
- 00:17:49is that the broker literally creates a
- 00:17:52space for sally
- 00:17:53and bill to work together on the problem
- 00:17:55and that
- 00:17:56does two things it literally taught it's
- 00:17:59kind of like creating
- 00:18:00a a temporary social network inside the
- 00:18:03organization where
- 00:18:04these people then learn to trust each
- 00:18:07other learn to work together and then
- 00:18:08they go back to their teams but they
- 00:18:10know that they have a resource somewhere
- 00:18:12else in the organization
- 00:18:13so i think this is this is one version
- 00:18:15of trying to create
- 00:18:16um a loose uh
- 00:18:19flexible dynamic network that
- 00:18:23uh stitches things together i always
- 00:18:24like to point out that like complexity
- 00:18:27the plexur and complexity is like
- 00:18:29knitting it's like
- 00:18:30tying things together um
- 00:18:34so yeah so you know getting that right
- 00:18:38and and making those connections loose
- 00:18:41as in like they can dissolve
- 00:18:43the formality of them can dissolve after
- 00:18:46the problem's gone is important
- 00:18:48the second thing that i've become really
- 00:18:50obsessed with recently is this idea
- 00:18:52about
- 00:18:53self-organization when we look at it um
- 00:18:56at the team scale as opposed to the
- 00:18:59inside the team
- 00:19:00so like team of teams stuff
- 00:19:03and the thing that i think is most
- 00:19:04critical there is it's not self
- 00:19:06organization it's the ability to
- 00:19:09negotiate with peers
- 00:19:10directly right because
- 00:19:13both teams have direct specific
- 00:19:16interests
- 00:19:17um the in kind of the literature this
- 00:19:19would be called polycentric
- 00:19:21uh theory like an idea that there's no
- 00:19:23one
- 00:19:24group in charge of the outcome there's
- 00:19:26multiple groups in charge
- 00:19:29and why do i think that's important i
- 00:19:31think that's important because the
- 00:19:32minute that that collapses the minute
- 00:19:35that the teams can no longer directly
- 00:19:37negotiate they
- 00:19:38go up right in order to get the
- 00:19:40negotiation to happen
- 00:19:42they go to their boss and then they go
- 00:19:44to their boss bus
- 00:19:45and i in my experience if it skips more
- 00:19:47than two levels
- 00:19:48it always ends up with a manager who
- 00:19:50doesn't really understand what the
- 00:19:52concerns are
- 00:19:54and therefore they make suboptimal uh
- 00:19:56you know
- 00:19:58baby baby splitting uh answers in order
- 00:20:00to get things
- 00:20:01done and and no one gets the value out
- 00:20:03of it so
- 00:20:05by like pushing the negotiation skills
- 00:20:08so like i think like people say
- 00:20:10you know distribute decision making or
- 00:20:12distribute information or get
- 00:20:13the decisions to the right place and
- 00:20:15close to the edge where the information
- 00:20:17is
- 00:20:17all those things are useful inside of a
- 00:20:20team
- 00:20:20but negotiation the ability to negotiate
- 00:20:24a settlement where you know not
- 00:20:27everything gets
- 00:20:28exactly where people want but progress
- 00:20:31is made
- 00:20:32that is the primary skill i think that
- 00:20:35you need to get at this kind of team of
- 00:20:37team level
- 00:20:38and we don't train it either i mean
- 00:20:40there's some basic heuristics on
- 00:20:41negotiation like never give without
- 00:20:43taking
- 00:20:45because if somebody gives and they don't
- 00:20:47take you actually kind of like don't
- 00:20:48trust them so there are things you can
- 00:20:50teach on that
- 00:20:51yep and i think calculation has to have
- 00:20:53penalties so when i had my when i was a
- 00:20:56general manager
- 00:20:57my view is very simple you've got
- 00:20:58contradictory targets if you can't
- 00:21:00resolve it between yourself come to me
- 00:21:02and i'll treat you like we need the pool
- 00:21:04treated out i'll say yes and no
- 00:21:06alternately and you
- 00:21:07know which sequence i'm on yeah so you
- 00:21:10better resolve it for yourself
- 00:21:12right and i think but i think the the
- 00:21:14issue and this is where we get into this
- 00:21:16key concept i think which comes from
- 00:21:18complexity of thinking about identity
- 00:21:20not individuals
- 00:21:21so sometimes identity is an individual
- 00:21:24but it isn't necessarily the case
- 00:21:27and i'd say that's the next generation
- 00:21:28of marketing as well you're trying to
- 00:21:30trigger identity
- 00:21:32yeah because identity is associated with
- 00:21:35um behavior
- 00:21:36yeah totally it's it's
- 00:21:39uh point we got um bring it back to the
- 00:21:43practical so we've probably done
- 00:21:4530 or 40 pieces of work where we've
- 00:21:48we've tried to go into organizations and
- 00:21:50shift them
- 00:21:51to more agile ways of working i suppose
- 00:21:54over the last two or three years and a
- 00:21:56lot of the time you walk into
- 00:21:58organizations with
- 00:21:59matrix based management so you've kind
- 00:22:01of got the
- 00:22:02functional leads and they've got their
- 00:22:04functional teams
- 00:22:07and the old way of doing things meant
- 00:22:10past the parcel through those different
- 00:22:12functions until you've got an end
- 00:22:13outcome
- 00:22:15now it's kind of two things that we see
- 00:22:17the first
- 00:22:18is you go in and uh you haven't got
- 00:22:22the authority to change the structure
- 00:22:26so you basically try and create i
- 00:22:29suppose
- 00:22:30they're cross-functional teams but the
- 00:22:32liner management still goes up to
- 00:22:34functional
- 00:22:35hierarchies and when you do that you get
- 00:22:39because authority flows to information
- 00:22:41there's just
- 00:22:42lots and lots of information going all
- 00:22:44through the organization decisions get
- 00:22:46really hard to make
- 00:22:48leadership's basically tied up in
- 00:22:50[Music]
- 00:22:5220 or 30 stand-ups whatever you want to
- 00:22:54call them a day
- 00:22:55um and they they find it very difficult
- 00:22:58to operate
- 00:23:00the second is when you break that
- 00:23:03down um then there's a few really good
- 00:23:05patterns for that so
- 00:23:06two in a box is a really nice one where
- 00:23:09you have
- 00:23:10uh you you have leaders
- 00:23:13with equal authority in a team context
- 00:23:16and that scales up but you actually
- 00:23:19manage the tension that you want in the
- 00:23:21system through the allocation of those
- 00:23:23leaders so it might be a product in an
- 00:23:24engineering lead
- 00:23:25or it might be a product engineering
- 00:23:28design i think atlassian uses
- 00:23:30or you might have financial
- 00:23:33it might actually distribute financial
- 00:23:35acumen into the team if it makes sense
- 00:23:37to have
- 00:23:38like that financial tension in the
- 00:23:41product sense
- 00:23:43what happens then though is that you
- 00:23:45lose some of the really good things that
- 00:23:47you had with the functional leadership
- 00:23:49which is if you've got
- 00:23:50uh people that are not super high
- 00:23:53capability
- 00:23:54um or you've got juniors uh
- 00:23:57sort of the the mentoring pathways and
- 00:24:00that kind of
- 00:24:01that sort of thing disappears and we had
- 00:24:04a great conversation with dave
- 00:24:05a few months back because what we tend
- 00:24:08to find is
- 00:24:09you put a bit of work in that model into
- 00:24:11launching communities in practice to try
- 00:24:13and replace
- 00:24:16that function that you used to have with
- 00:24:18the matrix
- 00:24:19but inevitably and dave's dave can talk
- 00:24:22to the theory about this that the
- 00:24:24participation in those communities of
- 00:24:26practice starts to decay
- 00:24:28unless you've got someone who's really
- 00:24:30really good at keeping
- 00:24:32groups of people together so it's almost
- 00:24:35like
- 00:24:36the quality of the person dictates how
- 00:24:38well those things
- 00:24:40uh how well they endure
- 00:24:43rather than the quality of the practice
- 00:24:47i think you're you're over complicating
- 00:24:49it whenever you walk in you find a
- 00:24:51matrix organization
- 00:24:52you just rename everything squads and
- 00:24:55tribes and then you walk out and you're
- 00:24:56done
- 00:24:57you should give them a really big bill
- 00:24:58after that though uh
- 00:25:00it's clear as day that uh that's just a
- 00:25:03matrix organization with communities of
- 00:25:05practice right
- 00:25:06so you're done squared all all good
- 00:25:10i love the reference all right and being
- 00:25:12sarcastic about the spotty
- 00:25:14spotify model is good for all of us yeah
- 00:25:17i think one of the i think we need to
- 00:25:20get rid of it
- 00:25:20i think what you get with matrix is two
- 00:25:22hierarchies
- 00:25:24and they compete and so nobody knows
- 00:25:26where they belong or who they
- 00:25:28work for or anything else like that yeah
- 00:25:31definitely and that becomes deep you
- 00:25:33know a deep issue
- 00:25:34yeah within most organizations
- 00:25:40sorry son you go ahead i'm sorry i
- 00:25:41didn't hear you
- 00:25:43no i think this is a bit of a lag nigel
- 00:25:45i think
- 00:25:46just what it feels like what's being
- 00:25:49highlighted here you know
- 00:25:50you know andrew what what you spoke
- 00:25:52about you know so you go in for an agile
- 00:25:54transformation and
- 00:25:55you end up not having the authority to
- 00:25:57change the structures
- 00:25:58etc and it it's not only happening with
- 00:26:00with agile it feels like
- 00:26:02um the od community and the
- 00:26:06you know in the organizations who
- 00:26:08actually have them you know i think in
- 00:26:09many organizations
- 00:26:11it sort of falls to hr which tends to be
- 00:26:14even more disastrous
- 00:26:16but i don't they are not included in the
- 00:26:18processes where they
- 00:26:19need to be included and when they are
- 00:26:21they tend to be
- 00:26:23um gatekeepers of sorts and i and i
- 00:26:25think it's
- 00:26:26it's probably because you know they they
- 00:26:29are being taught or the thing that they
- 00:26:31tend to fall back to are designing
- 00:26:34hierarchies designing
- 00:26:35matrix um matrices
- 00:26:39and i'm i'm not sure that they actually
- 00:26:42are doing the work to start
- 00:26:44thinking differently about the
- 00:26:46organization's design
- 00:26:48you know i mean one if one of the
- 00:26:49metaphors that i use a lot and and
- 00:26:51you know it's probably not the best one
- 00:26:53but it seems to resonate is this whole
- 00:26:54idea of you know it's it's hard to
- 00:26:56survive in the jungle if you were
- 00:26:57trained in the zoo
- 00:26:59and i think the the consultants are the
- 00:27:02ones creating the zoos you know
- 00:27:04and that's that's a a level of you know
- 00:27:06something that that frustrates me
- 00:27:08because you know going back to um
- 00:27:10to what you just spoke about the
- 00:27:11communities of practice that don't
- 00:27:14maintain their energy for for very long
- 00:27:16especially in these matrix organizations
- 00:27:18you know it's a very human thing you
- 00:27:20know i'm i'm being measured
- 00:27:22and my targets are linked to whatever is
- 00:27:25in the matrix
- 00:27:27the community of practice not so much so
- 00:27:29if if there's no incentive for me there
- 00:27:33you know you're almost creating um
- 00:27:35schizophrenic organizations where these
- 00:27:37things are pulling against each other so
- 00:27:40i think the question and it might be why
- 00:27:42these sessions are so popular is
- 00:27:44how can we get complexity
- 00:27:47informed thinking different ways of
- 00:27:50looking at design
- 00:27:51into the organization design community
- 00:27:55because it seems as if that is just not
- 00:27:59happening the people that i see that's
- 00:28:01experimenting with this are people in
- 00:28:03the agile community or in the you know
- 00:28:05it's not necessarily
- 00:28:06the od practitioners um in the
- 00:28:09organizations where i work at
- 00:28:11at least yeah
- 00:28:15but i i mean i think uh
- 00:28:20you go
- 00:28:25i think the thing that i that it makes
- 00:28:27me think of immediately is like
- 00:28:29so much of what i see from od is like
- 00:28:32spans and layer analysis type stuff
- 00:28:34right like how many people are reporting
- 00:28:36how many people
- 00:28:37how many layers do you have uh frankly
- 00:28:40you know i
- 00:28:41i tend to follow a little bit more of a
- 00:28:43jaxian root and think that most people
- 00:28:45have like way way too many layers
- 00:28:47frankly
- 00:28:48um and that creates huge amounts of
- 00:28:50conflict
- 00:28:51frankly uh inside organizations we could
- 00:28:54get into that a little bit
- 00:28:55but i think like you know the thing that
- 00:28:57it makes me think about the most
- 00:28:59is like uh you know matrix comes from a
- 00:29:02guy named gailbraith and gailbraith made
- 00:29:04what's called the star model and the
- 00:29:06thing about the star model is that it
- 00:29:07always starts from strategy
- 00:29:09it's a contingency theory of
- 00:29:11organizational design it says you have
- 00:29:12to know what the strategy is
- 00:29:14and you design the organization around
- 00:29:15the strategy right well
- 00:29:19i like the amount of organizations that
- 00:29:21i've been in who cannot express a
- 00:29:23coherent strategy is pretty high frankly
- 00:29:26um and so it's not all that surprising
- 00:29:28that the
- 00:29:29the tool set that was built for working
- 00:29:32with a strategy that would be kind of
- 00:29:34again matrix and all these other things
- 00:29:36becomes incoherent in the hands of
- 00:29:38people who are skipping the first step
- 00:29:40of the pro
- 00:29:41of the way of thinking right so i think
- 00:29:44one of the things is like to understand
- 00:29:45what contingency
- 00:29:46based theories of organizational design
- 00:29:49would look like
- 00:29:49if we were actually doing them and
- 00:29:53understanding that uh organizations that
- 00:29:56have strategies that pivot every three
- 00:29:58months are gonna have to either get
- 00:29:59really really good at constantly
- 00:30:01reorganizing or they're gonna have to
- 00:30:03have someone
- 00:30:04lift their head up a little bit and look
- 00:30:06a little bit further into the future
- 00:30:08and start organizing around longer term
- 00:30:11goals
- 00:30:12and that doesn't mean you can't
- 00:30:13opportunistically take advantage of
- 00:30:16of you know opportunities that are
- 00:30:18presented to you
- 00:30:19but i i you know i think that
- 00:30:22uh one of the rants i i get on
- 00:30:25eventually
- 00:30:26when i talk about this kind of stuff is
- 00:30:28that strategy is a middle management
- 00:30:30theory it's a middle management thing
- 00:30:32it's not an executive thing an executive
- 00:30:34is supposed to be managing the
- 00:30:35capabilities of the firm and the
- 00:30:37and the long-term goals of the firm uh
- 00:30:40not
- 00:30:40doing strategy so the way i like to say
- 00:30:43this is like
- 00:30:43a basketball coach is the person who
- 00:30:46does strategy
- 00:30:47in a basketball frame right
- 00:30:50and so they deploy their particular
- 00:30:53resources those are the human beings
- 00:30:55that play
- 00:30:55basketball for them in a particular kind
- 00:30:58of way against a particular kind of
- 00:30:59client
- 00:31:00that is strategy yeah on the other hand
- 00:31:03that guy is that person sorry is not
- 00:31:06responsible in any way
- 00:31:07for attendance getting an arena
- 00:31:10paying salaries getting a food vendor
- 00:31:13all
- 00:31:13all of that stuff are capabilities that
- 00:31:16are managed by an executive firm
- 00:31:18above them right and so i think in a lot
- 00:31:20of ways
- 00:31:21one of the failures of organizational
- 00:31:24design is one of the failures of
- 00:31:25organizations right now
- 00:31:27executives are being dragged down into a
- 00:31:30very short time
- 00:31:31frame and they're doing strategy instead
- 00:31:34of
- 00:31:34organizing and creating capabilities and
- 00:31:37i think
- 00:31:38that that causes a collapse in
- 00:31:42the way that people organize and you
- 00:31:45know then you get these kind of like
- 00:31:46weird like constantly evolving
- 00:31:50functionalized matrix models that
- 00:31:53you know just create huge amounts of
- 00:31:55conflict in organizations so
- 00:31:56i don't know jade to piggyback on to
- 00:31:59that
- 00:32:00some of the things that i have observed
- 00:32:02is that
- 00:32:04i mean i talk about distributed
- 00:32:05leadership which is that we've talked
- 00:32:07about this in previous conversations
- 00:32:08that centralized coordination
- 00:32:10distributed decision making which is
- 00:32:12what you're describing but what we're
- 00:32:13finding
- 00:32:14is that distributed decision making is
- 00:32:16only okay as long as the boss agrees
- 00:32:18so i i'm not sure that we're dragging
- 00:32:20them down or whether they're
- 00:32:22sort of wandering down and sort of
- 00:32:23interfering you know
- 00:32:25yep i mean i it's like it's peter
- 00:32:27principle stuff to me
- 00:32:28um you know i i i in
- 00:32:31in jack's it's time it's called time
- 00:32:33span analysis and the
- 00:32:35type 10 analysis is super easy to do how
- 00:32:37long can you work before your boss comes
- 00:32:39and checks on you
- 00:32:41um and so like in a scrum team that's
- 00:32:43like two weeks
- 00:32:44that's my time span so what do you get
- 00:32:46good at you get
- 00:32:47really good at telling two week stories
- 00:32:49you get really good at telling in about
- 00:32:51five minutes you can tell a story what
- 00:32:52are you doing right now
- 00:32:54this is what i'm doing for the next two
- 00:32:55weeks go up to middle management
- 00:32:58same things happen but it's quarterly or
- 00:33:01every six months
- 00:33:01yeah that every six months i have to go
- 00:33:03and report to my executive
- 00:33:05about what i've been doing so i get
- 00:33:06really good at telling a six-month story
- 00:33:08again i still only get about 15 minutes
- 00:33:10to tell my story
- 00:33:12so i can't put the same things in my
- 00:33:14story that the people
- 00:33:15on the scrum team can because otherwise
- 00:33:17my story would take way too long yeah
- 00:33:19so different details different shapes
- 00:33:21yeah as you move
- 00:33:22up the organization in theory you know
- 00:33:25in
- 00:33:25jack's theory there's at least probably
- 00:33:27three or four levels potentially five
- 00:33:30um and each time you double the time
- 00:33:32span in theory or
- 00:33:34one and a half times yeah so by the time
- 00:33:36you get up to an executive you're
- 00:33:37supposed to be telling
- 00:33:38two and a half year stories right but
- 00:33:41how do you
- 00:33:41learn what goes in those stories
- 00:33:45because you still only get like that 30
- 00:33:47minute pitch
- 00:33:48to tell the organization what because
- 00:33:51after 30 minutes nobody's paying
- 00:33:52attention anymore so you gotta get
- 00:33:53really good at telling that thing
- 00:33:55and a lot of executives i just think
- 00:33:57don't have
- 00:33:58a peer community that teaches them what
- 00:34:01a good
- 00:34:01story sounds like and i'm sure dave's
- 00:34:04gonna
- 00:34:04yell at me about narrative and stuff
- 00:34:06like that but we'll just stick here
- 00:34:07uh and and the result of this like 30
- 00:34:10minutes
- 00:34:11uh explanation is that they can't do it
- 00:34:14so they peter principle themselves and
- 00:34:16they go down and start telling the
- 00:34:17stories that they
- 00:34:18know how to tell six month stories and
- 00:34:21stuff like that
- 00:34:22and the result of that is an actual
- 00:34:25conflict because the people who are
- 00:34:27supposed to be telling that story are
- 00:34:29like
- 00:34:29hey wait a second that's my i'm supposed
- 00:34:32to
- 00:34:33what story am i supposed to tell now and
- 00:34:36then they go
- 00:34:36down right and so you get this
- 00:34:38compressiveness that happens where the
- 00:34:40narration of the firm
- 00:34:42gets compressed and then it feels like
- 00:34:45when you get down to the bottom level
- 00:34:47where you get the most amount of people
- 00:34:49involved
- 00:34:50they don't have any way to tell their
- 00:34:51own story anymore because someone's
- 00:34:53always telling it for them
- 00:34:55um and there's not room for them to tell
- 00:34:57those stories
- 00:34:58um and so i think like that kind of
- 00:35:02opening up again of the time spans at
- 00:35:05the top of the organization
- 00:35:06isn't just about like long-term vision
- 00:35:09blah blah blah blah
- 00:35:10it's actually about literally creating
- 00:35:11the space for people to
- 00:35:13have you know to pick on something dave
- 00:35:16just said
- 00:35:17uh identity is is knowing who you are in
- 00:35:20a story
- 00:35:21and it's a story that you feel like you
- 00:35:24understand and that you are
- 00:35:25narrating well right and the lack of
- 00:35:28that
- 00:35:29screws people over sorry go ahead
- 00:35:31capacity is the ability to change
- 00:35:33identities
- 00:35:35yep the the the problem is people
- 00:35:37confuse that the ability to move between
- 00:35:39identities in different contexts
- 00:35:42nuclear if you ritualize it yeah and
- 00:35:45that's how armies get people to do
- 00:35:46things like go over the barricades yeah
- 00:35:49because the whole ritualization switches
- 00:35:51the identity so people do extraordinary
- 00:35:53things
- 00:35:54yeah and i think the other thing is need
- 00:35:57conflict for any system to be healthy
- 00:36:00the trouble with the matrix it creates
- 00:36:02conflict between two
- 00:36:03formal organizations whereas actually
- 00:36:07the normal conflict is between the
- 00:36:09formal organization and the informal
- 00:36:10networks
- 00:36:12and that's actually a healthy conflict
- 00:36:14yeah yeah
- 00:36:15i mean it's sometimes seen as cronyism
- 00:36:17and all those sort of things but the
- 00:36:19reality is
- 00:36:20no it's senior just and i keep arguing
- 00:36:23to agile people i keep pointing out
- 00:36:25decision makers don't have time to
- 00:36:27assess the evidence
- 00:36:28right i mean you're a general manager or
- 00:36:30a legislation you might get five minutes
- 00:36:33yeah if you're really lucky you might
- 00:36:36get to hear a couple of presentations
- 00:36:38and you've got to make a call
- 00:36:40yeah and you're going to make a call
- 00:36:42based on who you trust the most
- 00:36:44right because that's the least risky
- 00:36:46solution or you're going to call him
- 00:36:47mckinsey's to make a recommendation
- 00:36:50because nobody got fired for
- 00:36:51implementing a mckinsey's report
- 00:36:53and and i hired mckenzie's three times
- 00:36:56in order to validate what i wanted to
- 00:36:58get away with it with venture
- 00:36:59capitalists
- 00:37:00all right um because it was an authority
- 00:37:03issue
- 00:37:04and you know the sort of desire for
- 00:37:06everything to be peaceful and harmonious
- 00:37:08and common objectives and common goals
- 00:37:10is deadly
- 00:37:11right the engineering approach this is
- 00:37:14also the problem with hypocrisy is it
- 00:37:16builds
- 00:37:16bureaucratic conflict into the system
- 00:37:19yep
- 00:37:20yeah rather than this sort of informal
- 00:37:23formal conflict which is actually quite
- 00:37:24healthy
- 00:37:25and something we grew up with yeah in
- 00:37:27fact you see it in all primates
- 00:37:30it's it's the informal networks the way
- 00:37:32that the king is sometimes toppled
- 00:37:35yeah i think so like one of the things i
- 00:37:37teach executives
- 00:37:38that i think is similar to this is what
- 00:37:40i call uh decision economies and
- 00:37:42and what that means is roughly like as
- 00:37:45dave said
- 00:37:46you're an executive how many decisions
- 00:37:48can you make a day
- 00:37:50literally how many can you make in a day
- 00:37:52and then then the really easy thing to
- 00:37:54do is you go back to an executive and
- 00:37:55say roughly like
- 00:37:56listen in my experience uh
- 00:37:59most people and maybe you're an
- 00:38:01exceptional person can manage about five
- 00:38:03to ten projects at a single time
- 00:38:05that's that's what they can juggle like
- 00:38:07that roughly
- 00:38:08and so if you're making decisions you
- 00:38:10should probably have like five to ten
- 00:38:12buckets that you're making decisions
- 00:38:13about
- 00:38:14just roughly and so what's your budget
- 00:38:17you know you get you get a big company
- 00:38:19their budget is
- 00:38:20you know i i manage 100 million 500
- 00:38:24million a billion dollar budget yeah
- 00:38:26okay so divide that up and make it into
- 00:38:28buckets so that we know
- 00:38:29generally where your focus is now
- 00:38:32whenever
- 00:38:33anybody comes to you from any of those
- 00:38:35buckets
- 00:38:36uh and ask you a question i want all i
- 00:38:38want you to do is you can
- 00:38:40do your normal thing but when they leave
- 00:38:41the room i just want you to write down
- 00:38:43was that an
- 00:38:44interesting question or is that a boring
- 00:38:46question
- 00:38:47and it's a boring question it means
- 00:38:49literally you don't think it was useful
- 00:38:50for you to be involved in it but you
- 00:38:52realized that there was some sort of
- 00:38:53political [ __ ] going on and you
- 00:38:55needed to deal with it yeah
- 00:38:57interesting questions are the ones that
- 00:38:59like dave said earlier are ones where
- 00:39:01you go oh
- 00:39:01i think they brought me a question where
- 00:39:04i actually added value because i have
- 00:39:06access to information
- 00:39:07where networks were things that not
- 00:39:10everybody has access to in the
- 00:39:11organization
- 00:39:12so they brought me a good question so
- 00:39:14you at the end of the week you go
- 00:39:16through this like little
- 00:39:17scheme that you've made for yourself and
- 00:39:18you go what are all of the
- 00:39:20questions that were boring questions
- 00:39:24and what am i going maybe group them
- 00:39:27into piles or something like that
- 00:39:29what am i going to do in the
- 00:39:31organization
- 00:39:32to actually distribute these decisions
- 00:39:36actively work to make sure that these
- 00:39:38types of decisions
- 00:39:39don't come to me anymore and and again
- 00:39:42it's it's a passive version of this
- 00:39:44you're not resisting you're not saying
- 00:39:45to people stop coming into my office
- 00:39:48you're saying there's got to be a reason
- 00:39:50why people keep on bringing this stuff
- 00:39:52to me
- 00:39:53and again i think one of the skills that
- 00:39:55ends up happening there is that a lot of
- 00:39:57times
- 00:39:58the biggest pile is conflict resolution
- 00:40:01negotiation skills going down into the
- 00:40:04organization and
- 00:40:05working with the teams that have the
- 00:40:07hardest time
- 00:40:09negotiating their own settlements in a
- 00:40:12in a point where it hasn't become a
- 00:40:14crisis right so literally going to them
- 00:40:16or working asking somebody to work with
- 00:40:18them to
- 00:40:19learn negotiation skills learn how to
- 00:40:22keep control of their own
- 00:40:24decisions that i think is you know
- 00:40:27one of the things that i think people
- 00:40:28get good great value from when when they
- 00:40:30do it well
- 00:40:31i called about this yesterday i've got
- 00:40:33another call at three o'clock today on a
- 00:40:35conflict resolution job we're doing
- 00:40:38and what we're actually suggesting is
- 00:40:40they took they take two people from each
- 00:40:42side and put them with a third
- 00:40:44administrator who just wants the problem
- 00:40:46to go away
- 00:40:47that forms a trio but we create ten
- 00:40:50trios
- 00:40:51and they all come up with solutions
- 00:40:53working independently of each other
- 00:40:55yeah and then we look at what comes out
- 00:40:57of that and again i think
- 00:40:58the key thing if you're a leader is that
- 00:41:01you shouldn't be making decisions unless
- 00:41:03you've really got it
- 00:41:04exactly you do everything in your bloody
- 00:41:06power to avoid it
- 00:41:07because your job is to i mean this is
- 00:41:09the key thing on crisis management
- 00:41:11your job is to coordinate not design
- 00:41:15yeah and link can connect people and i i
- 00:41:17remember one of the best companies i
- 00:41:18ever worked with which was landleafs
- 00:41:21which is an australian company in a day
- 00:41:23when it was run
- 00:41:24by good people as opposed to ex harvard
- 00:41:26trained people
- 00:41:28and the way they they ran it is stewart
- 00:41:31and neville and one other person all
- 00:41:33right these are really good guys yeah
- 00:41:35really experienced managers is they'd
- 00:41:37fly around the world and beat up project
- 00:41:39teams
- 00:41:40literally beat them up we created a
- 00:41:42teaching story from it which
- 00:41:43the name of which was the corporate
- 00:41:45seagull comes in and shits all over you
- 00:41:47so you could tell it was an australian
- 00:41:48company all right
- 00:41:50um but they would never come up with a
- 00:41:52solution but they connect you with
- 00:41:54people who might
- 00:41:56yeah and they have no formal reports
- 00:41:58that's how they managed
- 00:42:00major projects like blue water darling
- 00:42:02harbor san francisco front right
- 00:42:05they can achieve things nobody else
- 00:42:07achieved because actually their central
- 00:42:09team
- 00:42:09never made a decision
- 00:42:13yeah that wasn't the way they did it all
- 00:42:14right and i think
- 00:42:16at the moment and again you know the
- 00:42:18other problem is that you've got
- 00:42:19organizational departments and i think
- 00:42:21i've said this before in this chat
- 00:42:22who've got the chief executive officer
- 00:42:24in a stockholm syndrome relationship
- 00:42:27in which he or she actually thinks
- 00:42:29they've got to reorganize when anything
- 00:42:31goes wrong
- 00:42:32yeah yeah the organization is a
- 00:42:34recognition that you failed
- 00:42:36absolutely that we tweaking the system
- 00:42:38changing the system
- 00:42:39you know moving people moving the people
- 00:42:41around that's actually what you do on an
- 00:42:43ecosystem approach this constant desire
- 00:42:46to re-engineer from scratch
- 00:42:49or at the other extreme the nonsense of
- 00:42:51talib solution to everything which is
- 00:42:53kind of like a free market
- 00:42:55yeah we sort of bids all right
- 00:42:59both of those extremes are wrong but i
- 00:43:01also think there's there's nothing
- 00:43:03there there is no metric or measure in
- 00:43:07traditional management that actually
- 00:43:09tells you whether
- 00:43:10an organizational transformation has
- 00:43:12been successful
- 00:43:14apart from the p l i think if you can
- 00:43:16pull costs down
- 00:43:18no that they never have been nobody's
- 00:43:20ever created a measure because nobody
- 00:43:22ever
- 00:43:23has ever seen a successful
- 00:43:24reorganization we're still waiting for
- 00:43:26uh uh uh well i i have to say that
- 00:43:30except when nigel reorganizes himself
- 00:43:32which you can see from his background he
- 00:43:34does on a regular basis
- 00:43:37i was just gonna say that um in a
- 00:43:40tongue-in-cheek way i was working with a
- 00:43:42senior leader at toyota who decided that
- 00:43:44once we were 75 percent agile we've
- 00:43:46successfully transformed and and when i
- 00:43:50asked about
- 00:43:50what did 75 percent agile mean this is a
- 00:43:53bs metric that a lot of people put out
- 00:43:55there by the way all that type of
- 00:43:56nonsense
- 00:43:57uh as long as they were doing something
- 00:43:58vaguely agile-ish they had something
- 00:44:00they called a kanban board or they were
- 00:44:02doing some form of daily stand-up then
- 00:44:04we're obviously becoming agile so as
- 00:44:06long as 75
- 00:44:07of the workforce were doing some
- 00:44:09nonsense we would transform to an agile
- 00:44:20organization
- 00:44:26maturity model like i grew up with cmmi
- 00:44:28and
- 00:44:29uh codification of nonsense but
- 00:44:32given right to be nonsense by a number
- 00:44:36um i actually think their kanban
- 00:44:37maturity model is a massive step forward
- 00:44:40for maturity models
- 00:44:41um and i'm pretty allergic to them as a
- 00:44:43rule
- 00:44:44i just think the spider graph as a
- 00:44:46designer is the most awful thing that's
- 00:44:48ever been inflicted on humans it's
- 00:44:50terrible radar graphs make no sense to
- 00:44:52any human being
- 00:44:53ever just useless um i would i would
- 00:44:56agree jerry
- 00:44:58the circle i might believe it but he
- 00:45:00makes it a hierarchy and that's the
- 00:45:01problem
- 00:45:03yeah all of these things which says
- 00:45:04you're this you know you've got these
- 00:45:06capabilities those are useful
- 00:45:08but the minute you make it a hierarchy
- 00:45:10people want to be at the top of the
- 00:45:11hierarchy and you privileged people
- 00:45:13there
- 00:45:14yeah i think that the thing i really
- 00:45:15like about the kanban maturity model is
- 00:45:17that
- 00:45:18to proceed through it you need to become
- 00:45:21more systems aware
- 00:45:23so traditional maturity models were all
- 00:45:25about codification
- 00:45:27so i need to be able to show that i've
- 00:45:29got repeatable processes i need to
- 00:45:31be able to show that i'm measuring
- 00:45:33things i'm documenting things i'm doing
- 00:45:35the right thing whereas the kanban
- 00:45:36maturity model
- 00:45:37and i'm i haven't really dug deeply into
- 00:45:40a couple of
- 00:45:41my team members have but it's
- 00:45:44it seems to be about recognizing fitness
- 00:45:47for purpose
- 00:45:48so making sure that teams really
- 00:45:49understand the customer
- 00:45:51it's self-assessed ender so if if he put
- 00:45:54in
- 00:45:55i mean you know something we'd happily
- 00:45:56work on him with you know
- 00:45:58mass sense capability where you can't
- 00:46:00gain the output
- 00:46:02yep i start to buy it and if it was
- 00:46:04something which basically said
- 00:46:05this is kind of like your overall
- 00:46:07pattern so these are the behaviors which
- 00:46:08appropriate for you i'd accept it
- 00:46:11yeah but the self-assessed hierarchy has
- 00:46:13a really bad record in industry
- 00:46:16yeah i i see that risk but i also think
- 00:46:19in terms of what's out there for
- 00:46:21measuring
- 00:46:23whether you're doing agile well compared
- 00:46:26to some of the other
- 00:46:27maturity measures and the health checks
- 00:46:29and all the other stuff which are
- 00:46:31frankly frighteningly novice um
- 00:46:34there is a fair bit of thinking behind
- 00:46:37the cam imagery anymore i just want to
- 00:46:38say
- 00:46:39i think i think you know when the goal
- 00:46:41is measurement that
- 00:46:42that is one of the problems
- 00:46:45uh that that starting from how are we
- 00:46:49gonna measure this as opposed to
- 00:46:51starting from how are we going to
- 00:46:53evolve this change this that type of
- 00:46:55stuff and you know the
- 00:46:57the stuff that i i've been using
- 00:46:59recently is this
- 00:47:00um it's uh called maturity mapping
- 00:47:04and the idea of it is that um
- 00:47:08the whole set of theory that i won't go
- 00:47:09into really uh because we're about to
- 00:47:12run out of time but there's a whole set
- 00:47:13of kind of social practice theory and
- 00:47:15basically the idea
- 00:47:16is that like any skill inside of an
- 00:47:18organization
- 00:47:19is dependent on other skills it's a
- 00:47:21network of skills so it's like uh
- 00:47:25in the in in the literature they call it
- 00:47:27a nexus of skills
- 00:47:28um and so the thing is you can ask a
- 00:47:31team what are they trying to do
- 00:47:32what skills are they trying to learn how
- 00:47:34are those things connected to each other
- 00:47:36which things should you focus on in
- 00:47:39order to drag
- 00:47:40other things forward if that makes any
- 00:47:42sense uh the way i i like to think of it
- 00:47:44is roughly
- 00:47:45um you know certain skills
- 00:47:48that you learn or certain processes or
- 00:47:52techniques that you learn
- 00:47:53inside of an organization for instance
- 00:47:54like a kanban board
- 00:47:58gives you the information you need to
- 00:48:01learn
- 00:48:01and do other things lacking it
- 00:48:05you lacking that information you can't
- 00:48:07have the feedback loop close
- 00:48:09so there's a lot of skills that you just
- 00:48:11you don't create them
- 00:48:12for their direct value you create them
- 00:48:14in order to enable other skills to be
- 00:48:17useful at all to kind of create the
- 00:48:19feedback loop
- 00:48:20so i think there's some value in that
- 00:48:22but it has nothing to do with
- 00:48:24measurement
- 00:48:25uh directly but one of the things we
- 00:48:27have been doing is
- 00:48:28we'll do a maturity map in a team and
- 00:48:31then we'll
- 00:48:32ask the executive what they think the
- 00:48:34team is doing what what skills do you
- 00:48:36think this team is trying to learn
- 00:48:38and then you compare the two and you say
- 00:48:41ah
- 00:48:41you know part of the reason why this
- 00:48:42team isn't developing the way you want
- 00:48:44them to is because they think they
- 00:48:45should be doing
- 00:48:46different things than you think they
- 00:48:48should be doing
- 00:48:50maybe we should have a little bit of a
- 00:48:51conversation about where you're going
- 00:48:53and why
- 00:48:54they think they need to learn these
- 00:48:56skills and you think they need to learn
- 00:48:58those skills
- 00:48:59so that's kind of like a using the map
- 00:49:01to create a
- 00:49:02some contrast between the two layers
- 00:49:04with the theory that then the executive
- 00:49:06will have a better understanding of the
- 00:49:08direction the team wants to go in
- 00:49:10because i i do think um most
- 00:49:13maturity models tend toward those um
- 00:49:18like the 75 implementation of some
- 00:49:21thing homogenizing the world even if we
- 00:49:24can't define what that homogenization
- 00:49:26really means
- 00:49:28as opposed to something like this which
- 00:49:29more asks the teams that are very close
- 00:49:32to the surface
- 00:49:33but you know a little bit like a toyota
- 00:49:34kata style what do you need to learn
- 00:49:37and and how are you organizing around
- 00:49:40that and then let's measure
- 00:49:41your your attainment of that go ahead
- 00:49:44and i mean i know we're out of time but
- 00:49:46i think there's another session here
- 00:49:48because
- 00:49:49uh so andrew because
- 00:49:52uh uh three years ago i stood up on a
- 00:49:54stage talking about the self-guided i so
- 00:49:57a self-assessment and self-guided
- 00:49:58correction dashboard we created at
- 00:50:00toyota which is exactly what you're
- 00:50:02describing
- 00:50:03which is teams identify themselves where
- 00:50:06they need to improve and how they
- 00:50:08improve and continuously improve and
- 00:50:09we're not talking
- 00:50:10scrum retrospectives here we're talking
- 00:50:12something that is way beyond that
- 00:50:14and then at the coaching level we
- 00:50:16introduce behavioral markers so that we
- 00:50:18can define
- 00:50:19behaviors that we think were ideal and
- 00:50:21then we could measure those behaviors
- 00:50:23objectively and and the focus is always
- 00:50:26on the delivery of
- 00:50:27value not on achieving metrics
- 00:50:30um and so i'll give you a phrase for
- 00:50:33that
- 00:50:34i mean we kind of said it's called messy
- 00:50:36coherence
- 00:50:38yeah you need the system to be messy but
- 00:50:40coherent
- 00:50:41yeah which is why i oppose maturity
- 00:50:43models and everything else
- 00:50:45because they try and get rid of the mess
- 00:50:47probably
- 00:50:48right and i think that's one of the
- 00:50:50areas where you can measure things and
- 00:50:52there's another phrase which i'm not
- 00:50:53referring to frank herbert's dune which
- 00:50:55is melange
- 00:50:56you want that sort of you know that that
- 00:50:59fervent sort of spice risk mixture of
- 00:51:01things which might was almost at the
- 00:51:03verge of blowing up actually i'm
- 00:51:04referring to frankie but now
- 00:51:06yeah and i think that that's kind of
- 00:51:08like the next generation of
- 00:51:09organizational design the hierarchy
- 00:51:11provides a back-up
- 00:51:13framework a spine which you can fall
- 00:51:16back to but most of the real work is
- 00:51:18done by the muscles and the tendons and
- 00:51:20the
- 00:51:21hormones and everything else around the
- 00:51:22spine that's what we do
- 00:51:26with my physiotherapist for which i'm
- 00:51:28now three minutes late
- 00:51:30i did politely ask david a couple of
- 00:51:32years ago when the maturity model was in
- 00:51:34its
- 00:51:35early uh um early versions whether we
- 00:51:38could change the name
- 00:51:39um but yeah we kind of got stuck where
- 00:51:42we got stuck
- 00:51:44uh i've set up directly to i mean
- 00:51:46they're one to one but
- 00:51:47i'm not going anywhere yeah um all right
- 00:51:50well we'll wind it up there so that dave
- 00:51:51could get to his physiotherapist
- 00:51:53um and the rest and i can go to bed um
- 00:51:56great to see you all and yeah
- 00:51:59look forward to that
- 00:52:03thanks guys nice to see you bye
- Adaptive Capacity
- Organizational Design
- Informal Networks
- Conflict Resolution
- Matrix Structure
- Agile Transformation
- Knowledge Management
- Leadership
- Complexity Theory
- Messy Coherence