Yves Morieux: Smart Simplicity

Yves Morieux speaking on stage.A wonderful discovery today, “As work gets more complex, 6 rules to simplify,” a TED Talk by Yves Morieux. Morieux is a senior partner in the Washington DC office of the Boston Consulting Group (BCG)  and director of the BCG Institute for Organization. He studies how changes in structure can improve motivation for employees.

“Smart Simplicity” uses six key rules that encourage cooperation to solve long-term problems. Not by just reducing costs and increasing profit, but also by maximizing engagement in all levels of the organization.

The focus of Morieux’s work is very compatible with sociocracy. He stresses collaboration over rule-making, self-organization over central authority,  and effective action over complex, multi-layered planning.

A 350˚ Increase in Complexity

In his TED Talk, Morieux first critiques the increasingly complex designs for business plans that might have 5 headings with 25 subheadings under each one, resulting in 125 cogent topics, each with numerous subcategories. Combined with an equally complicated workflow and organizational structure chart, it produces a brilliant, mind-numbing, and wholly unimplementable plan. Impressive in good graphics but hopeless in practice.

The need for an emphasis on smart simplicity is supported by a study done by BCG that reported:

We’ve created an “index of complicatedness,” based on surveys of more than 100 U.S. and European listed companies, which measures just how big the problem is.The survey results show that over the past 15 years, the amount of procedures, vertical layers, interface structures, coordination bodies, and decision approvals needed in each of those firms has increased by anywhere from 50% to 350%.

A wonderful part of the video is when he recites an example of such business plans with their myriad of meaningless words. He has the memorization skills of an actor and the facility of a professional fast talker so he got himself through it without notes and within 12 minutes. If he had a teleprompter, speaking that fast would have burned out its circuits.

Feedback Loops & Decentralization

Morieux emphasizes that self-organization is dependent on feedback loops to make decentralization work. In a Harvard Business Review article from 2011, he says:

There are six smart rules. The first three involve enabling—providing the information needed to understand where the problems are and empowering the right people to make good choices. The second three involve impelling—motivating people to apply all their abilities and to cooperate, thanks to feedback loops that expose them as directly as possible to the consequences of their actions. The idea is to make finding solutions to complex performance requirements far more attractive than disengagement, ducking cooperation, or finger-pointing. When the right feedback loops are in place, cumbersome alignment mechanisms, ranging from compliance metrics to the proliferation of committees—can be eliminated, along with their costs, and employees find solutions that create more value.

This is has been an important point for theories of circular organization since the 1970s and for understanding sociocracy. Feedback loops are necessary to implement decentralization and impelling cooperation and self-organization.

Morieux’s Smart Rules

  • Rule 1: Improve Understanding of What Coworkers Do
  • Rule 2: Reinforce the People Who Are Integrators
  • Rule 3: Expand the Amount of Power Available
  • Rule 4: Increase the Need for Reciprocity
  • Rule 5: Make Employees Feel the Shadow of the Future
  • Rule 6: Put the Blame on the Uncooperative

For More: Two Readings

From the Harvard Business Review,
“Smart Rules: Six Ways to Get People to Solve Problems Without You.” September 2011.

Book Cover: Six Simple RulesMorieux’s book at Amazon: Six Simple Rules: How to Manage Complexity without Getting Complicated. 2014

There is also a French edition with a much better title: Smart Simplicity: Six règles pour gérer la complexité sans devenir compliqué (2014).

Morieux divides his time between leading research and advising senior executives of multinational corporations and public-sector entities in the United States, Europe, and Asia-Pacific on their strategies and organizational transformations. He has been featured in articles on organizational evolution in Harvard Business Review, The Economist, The Wall Street Journal, Fast Company, and Le Monde.

Encouraging Self-Organization

Logo for Interaction Institute for Social ChangeIn a workshop I conducted last Sunday, one of the participants asked, “How do you encourage self-organization?” By some miracle, probably related to my being on every mailing list on anything related to sociocracy and governance, I received in my mailbox a link to an article on the  Interaction Institute for Social Change. You guessed it on  Tips for Encouraging Self-Organization by Curtis Ogden.

After some editing and additions, here are some ideas:

Encouraging Self Organization in the Environment

  • Create spaces where people from different social and work groups encounter each other in the course of the day.
  • Create open space and unscheduled time at home and the office.

In Meetings and Conversations

  • Expect engagement with decisions by asking open-ended questions.
  • Encourage people in finding their own answers
  • Ask “What should we do next?” and “What haven’t we done?” to encourage curiosity and questioning.
  • Reward innovation and risk-taking. Encourage making corrections and trying again.
  • Emphasize that we learn from mistakes. No mistakes, no  risk, no innovation.
  • Encourage people to focus on their strengths and collaborate with others who have different strengths.
  • Actively share information. Practice transparency.
  • Demonstrate self-organization in your own actions.

Most people are not encouraged to self-organize as children or adults. Most workplaces find self-organization disruptive. It’s hard to break the training of waiting for directions and not working outside them.  Changing takes both expectation, insistence, and support. Support alone won’t do it.

 

Introduction to Holacracy

The link below is to a webinar, Introduction to Holacracy, by Brian Robertson, the founder of Holacracy.  It is very well done, a good  introduction to Holacracy—very clear and not obtuse theorizing. Since much of the structure of Holacracy is the same a sociocracy, it will also help in the understanding sociocracy.

As a former software programmer, Robertson uses the operating system as an analogy. Holacracy is the operating system and the specifics of the products or services the organization provides are the applications. Microsoft Word enables people using the Mac OS or Windows operating systems to produce documents. Adobe Illustrator allows them to produce drawings.

Unlike sociocracy, Holacracy does not have a compensation system. The compensation policies and structure would be an application that each company would design for itself.

Holacracy does not use consent but it also seems not to override objections. Each proposal must have a tangible example of how it will enable or prevent something from happening. The adoption of a policy is based on how the proposed action will negatively affect the team or individual roles within the team. Such negative effects and all other descriptions have to be tangible well-grounded arguments, not abstractions or hypotheticals. When there are no further objections, the policy is adopted but there is no consent round, which is inferred to be a vote.

Since roles and domains of decision-making are so clearly defined, it is easer to see that proposals “belong” to one person’s role or to a set of roles. It isn’t up to anyone else to decide whether a role needs this proposed action, only whether this action will negatively affect any other role.

Introduction to Holacracy by Brian Robertson

This is only a smattering of the concepts explained in the one hour video.  And there are illuminating questions at the end.

 

Thinking in Systems by Donnella Meadows

Book Cover of Thinking in SystemsI highly recommend Donnella Meadow‘s little book, Thinking in Systems: A Primer (Chelsea Green 2008). It’s short, fun, and to the point. No math or physics required. Recommended for everyone, literally.

In clear, humorous, commonplace situations, Meadows explains the use of systems analysis and how it can be applied in both large-scale and individual problem solving. She moves from simple to more complex examples ultimately explaining the complex ways that feedback loops are used to create self-organizing systems in nature and society. She also explains methods for fixing systems that have gone astray.

About Donella “Dana” Meadows

Photo of Donella Meadows
Donnella Meadows

Dana Meadows (1941-2001) was a biophysicist and  environmental scientist who taught at Dartmouth for 26 years following her research fellowship at MIT where she worked with Jay Forrester the creator of the study of system dynamics. She is author of one of the most influential essays on systems dynamics, “Leverage Points: Places to Intervene in a System,” available for PDF download and reprinted in Thinking in Systems, pp. 145-165. She received numerous awards for her work including a MacArthur “Genius Grant” in 1994. Her work is considered to have a formative influence in many fields and on many scholars. Unfortunately she died of a bacterial infection at the age of 59 and before completing Thinking in Systems. The manuscript had been circulating amongst students and faculty who added comments. The final manuscript was edited by Diana Wright of the Sustainability Institute.

In 1996, Meadows founded the Sustainability Institute or the study of global systems and practical demonstrations of sustainable living, including cohousing and ecovillages. The Institute was founded next to Cobb Hill Cohousing in Hartland, VT and has been renamed the Donella Meadows Institute and moved to Norwich, VT. Her papers were donated by the Institute to the Rauner Special Collections Library at Dartmouth College in 2011.

One of the wrong-headed ideas discussed in Thinking Systems, pushing in the wrong direction on fixing economic growth, the subject of the landmark book, The Limits to Growth; A Report for the Club of Rome’s Project on the Predicament of Mankind, for which she was lead author. Using a computer model, it projects the effects of continued growth. An extensive review appeared in The Nation in 2012: The Limits to Growth: A Book that Launched a Movement by Christian Parenti. Limits was first published in 1972 and updated. The original version sold 12 million copies and was translated into 37 languages. It was 205 pages. Limits to Growth: The 30-Year Update (2004) is 338 pages.

To purchase at Amazon: Thinking in Systems: A Primer, softcover 2008.

The Holes in Holacracy

An informed article by “Schumpeter” (no first name available), The Holes in Holacracy, included in the print edition as well as online. Schumpeter’s points are really about new branded methods failing.  They are gone in 10 years. (Soiocracy has not failed in 40 years.)

EVERY so often a company emerges from the herd to be lauded as the embodiment of leading-edge management thinking. Think of Toyota and its lean manufacturing system, say, or GE and Six Sigma excellence. The latest candidate for apotheosis is Zappos, an online vendor of shoes and clothes (owned by Amazon), which believes that happy workers breed happy customers. Tony Hsieh, its boss, said last year that he will turn the firm into a “holacracy”, replacing its hierarchy with a more democratic system of overlapping, self-organising teams. Until Zappos embraced it, no big company had taken holacracy seriously. Indeed, not all of Zappos’ 1,500-strong workforce are convinced that it can work…

Will conquering Zappos help holacracy thrive in the brutally competitive market for management ideas? There is good reason to be skeptical. “Nine-tenths of the approximately 100 branded management ideas I’ve studied lost their popularity within a decade or so,” wrote Julian Birkinshaw of London Business School in the May issue of the Harvard Business Review. Among the latest cast-offs, it seems, is Google’s much-admired “20% time”, in which workers got a day a week to work on their own projects; the company is reported to be quietly sidelining it.

Decentralized Governance of Corporate Intranets

Nielson Norman Group LogoOne of the newsletters I read is AlertBox from the Nielsen Norman Group, Jakob Nielson has long been considered the expert on website usability. NN/g does extensive research for major corporations makes the information available to the public. His newsletter this morning included a piece on trends in intranet portals, which make extensive corporate information available for use by employees. In this report I came across a surprise—a section on governance! Most often such reports refer to “management.” This one out and out uses “governance,” talks about “roles” as central in governance, and stresses that in the last year, decentralized governance has been found increasingly beneficial.

Governance Becoming More Decentralized

As enterprise portals mature and grow so does the need for more structured, yet disbursed, portal governance. Portal teams are learning that since the intranet portal touches all layers of the organization, so should the governance. The new case studies reveal a move toward a decentralized or matrix governance model, as opposed to past years where governance was more centralized — being created, communicated, and policed by the enterprise portal owners.

Some organizations find themselves creating governance where once there was none, while others flesh out more specific details of their portal governance structure to accommodate touch points across the organization.

For example, the Carle Foundation has created a governance structure that is both formal and flexible, with defined roles, responsibilities, and workflows. The governance team is drawn from all levels of the organization and has assigned tasks to staff from nearly every operational area across the organization. From the senior sponsor to the individual content contributor everyone has a role to play in ensuring the upkeep and ongoing development of the intranet portal.

Governance, like most aspects of portal development, is marathon not a sprint, and portal teams realize that governance must evolve, as does the portal. (Emphasis added.)

NN/g’s recommendations are based on 83 intranet portals. The corporations studied in this research report were:

  • The Carle Foundation
  • City of Olathe, Kansas
  • Coca-Cola Enterprises Ltd.
  • Consumer Financial Protection Bureau (CFPB)
  • FDC Solutions, Inc.
  • Fraunhofer-Gesellschaft zur Förderung der angewandten Forschung e.V.
  • Fraunhofer Heinrich Hertz Institute
  • Municipal Design and Survey Unitary Enterprise “Minskinzhproekt”
  • National Archives and Records Administration (NARA)
  • Northern Arizona University (NAU)
  • Palm Beach County Board of County Commissioners
  • Persistent Systems Limited
  • Resource Data, Inc.
  • Think Mutual Bank
  • Department of Transport (Canada)
  • Yara International ASA

Excerpt from “Intranet Portals are the Hub of the Enterprise Universe” by Patty Caya and Kara Pernice on June 29, 2014

A Deeper Democracy

Optimization WordPress Plugins & Solutions by W3 EDGE