Tag Archives: requisite organization

All Problems Are Not Created Equal

This is a series on Teal and Levels of Work. Here is the backstory for the series in case you are interested in the context. The purpose for the series is to explore the tenets of Teal through the lens of Levels of Work.
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Humor me. To see Levels of Work (Requisite Organization), as a hierarchy based on problem solving complexity (rather than power), opens up a different texture of organizational structure. Let me quickly sport a reference chart below to demonstrate the discontinuous complexity underpinning Levels of Work. I assume you agree, some problems are more complex than others, all problems are not created equal.

Level-I (S-I) – Declarative problem solving. This is the world of opinion, without the necessity of supporting evidence. The world is the way it is, simply because it is declared to be so. Problem solving methodology at this level of work is trial and error. Trial and error is a valid problem solving method, it just has a high error rate in the face of increasing complexity. If S-I was a computer, its computer code would be the Boolean operator “or-or.” S-I is a disjunctive (disconnected) way of seeing the world.

Level-II (S-II) – Cumulative problem solving. If S-I struggles to connect the dots, S-II succeeds in making those connections. Cumulative means connection by successive addition. Problem solving occurs by connecting the pattern in a problem with a documented solution. Best-practices is an S-II problem solving method. If S-II was a computer, its computer code would be the Boolean operator “and-and.” S-II is a conjunctive (connected) way of seeing the world.

Level-III (S-III) – Serial problem solving. This is where Elliott observed the first instance of cause and effect. Problem solving occurs through a process of root cause analysis. If S-III was a computer, its computer code would be the Boolean operator “if-then,” cause and effect. This problem solving method is required in the construction of a system (sequence of steps in a process yielding consistent and predictable results, a critical path).

Level-IV (S-IV) – Parallel problem solving acknowledges the existence of multiple simultaneous systems that co-exist in proximity. In the same proximity, each critical path may not intersect, but each system’s capacity has an impact on neighboring systems. Problem solving multi-system impact requires systems analysis, specifically – capacity, constraints, delay and throughput. If S-IV was a computer, its computer code would be the Boolean operator “if-and-only-if, then.” This level of work manages problems with multiple simultaneous variables and increasing ambiguity of outcomes.

So, what does this problem-complexity have to do with Laloux and Teal?

You have to read carefully (Reinventing Organizations), but Laloux identifies these specific levels of problem solving quite clearly – Another cognitive breakthrough is the ability to reason in paradox, transcending the simple either-or with more complex both-and thinking.

As he describes the organizational period of magenta, he makes the following observation –
Cause and effect are poorly understood, and so the universe is full of spirits and magic.

Cause and effect finally comes of age in Laloux’s description – At the Conformist-Amber stage, reality is perceived through Newtonian eyes. Cause and effect are understood, people can grasp linear time (past, present, future) and project into the future. Laloux’s observation is quite consistent with the timespan schema in Levels of Work, that a measure of problem solving is based on a person’s capability to operate in the ambiguity of the future.

So, Laloux clearly observes problem solving through the first three Levels of Work, without realizing how close he came to solving the puzzle of hierarchy. These nested relationships** replace the power hierarchy with an accountability hierarchy. Indeed, Elliott described this organizational form with the acronym MAH (Management Accountability Hierarchy).

I think the issue of accountability will be next on our agenda.

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**Nested relationships was brilliantly described in this article by Richard Bartlett

Teal and Levels of Work

Followers of this blog know its underpinnings are in research conducted by Dr. Elliott Jaques from 1952 to the time of his death, March 8, 2003. From this period of 50 years, he published 23 books and countless articles under the moniker Requisite Organization related to his research on levels of work.

During that time into present day, there have been numerous trends in management, one specific track I plan to follow through a series of posts, is the interest in what began as Self-Directed Work Groups. The Self Directed Work Group was most notably practiced by Boeing and Motorola in the 1980s and sported the manager-less team governed by group decision making.

More recently, self-directed work groups have emerged under other naming conventions like Holocracy and Teal. Several years ago, I wrote a series in response to Holocratic methods, most notably practiced by Zappos, the shoe company under the direction of Tony Hsieh.

This past week, I was contacted by Bruce Peters, a Teal practitioner, who asked me to take a look at the Teal management approach through the lens of Elliott’s research, hence, this series on Teal and Levels of Work. My immediate response was that Teal probably works just fine, until it doesn’t. When it stops, what is the disconnect? And, how do you get it re-started and back on track. My approach will be to bring insights from levels of work that support various intentions and practices of Teal. We may still stumble across some philosophical disconnects, but let’s cross those roads when we have more context.

The cornerstone of Teal was documented in a book titled Reinventing Organizations by Frederic Laloux. Bruce became friends with Laloux several years ago and has been an ardent supporter of its tenets and practices. Bruce also comes from a longstanding background with Requisite Organization and levels of work, so this should make for an interesting discussion.

To summarize the lens of levels of work, in a paragraph, does a disservice to the profound comprehensive reach of Elliott’s research, AND still, it is important to lay some groundwork to set the context. I believe most would agree, that the purpose for every organization is to fulfill its mission (however defined) and that in doing so, the organization encounters problems that have to be solved and decisions that have to be made. Further, some problems are more complex than others, some decisions more complex than others. To understand levels of work is to embrace these distinctions in complexity, not all problems are created equal.

So, Elliott’s research, his findings, his understanding, embodied in levels of work, is based on problem solving and decision making. If we can understand levels of problem solving and decision making, we now have a basis to explore organizations and how they are structured. Without this understanding, organizations get structured in all kinds of wacky ways, some comical, some powerfully destructive.

Laloux’s book Reinventing Organizations chronicles the cultural shifts of hierarchy across the ages contrasting organizational characteristics with emerging, then mainstream social characteristics. Laloux’s schema is descriptively brilliant, capturing the shift in social milieu in a pattern of color, finally arriving at Teal.

  • Organization Magenta (Magic) – tribal groups where power emerged from magic (nature and spirits) and those perceived closely aligned with magic (sorcerers, shaman) maintained power through fear of retribution from nature and spirits.
  • Organization Red (Impulsive) – magic disappeared, but the fear remained in a dangerous world where connection to an organization meant survival. Power consolidated with those groups (and leaders) with the fortitude of violence to enforce that power. Chiefdoms, proto-empires, street gangs and mafias. Slavery was an acceptable norm, provided safety within the context of violence. Emergence of the alpha wolf.
  • Organization Amber (Conformist) – hunter-gatherers turned to animal domestication and agriculture, allowing for more social stability, emergence of laws. Chiefdoms turned into states and civilization. Personal awareness emerges creating psychological safety in like groups. Like groups established the need for conformity and group norms. Stability provided longer term planning against future uncertainty.
  • Organization Orange (Achievement) – Personal awareness of an individual as part of a group, emerges from underneath the shroud of conformity in the form of individual achievement. Effectiveness, goals and outputs breakout from pre-existing rules. Dominance comes through achievement, reinforcing within norms (slavery is no longer acceptable), the 800 pound gorilla. Nike, Coca-Cola, Walmart consolidate power in an increasingly rigid caste system. Centralized control, economies of scale readily observable. Ambers’ command and control becomes Orange’s predict and control. Individual accountability emerges.
  • Organization Green (Pluralistic) – the Orange machine lives on, yet some organizations sense its unintended consequences relative to emerging social norms. Conscious Capitalism emerges seeking fairness, equality, harmony, community, cooperation and consensus. Green endeavors to break down caste distinctions, social classes, patriarchy. Statistical evidence emerges that Conscious Capitalism outperforms Orange in its own measures. Here are the first protestations against organizational hierarchy.
  • Organization Teal (Evolutionary) – this is where Laloux explains that hierarchy disappears and organizations become self-directed.

With this as a background, I will leave you with this thought – Hierarchy still exists, but not where you may have historically found it. Even Laloux provides a hint, but then moves on, assuming to have dismissed the idea of hierarchy altogether. Yet, if you can postpone your dismissal, you will come to find insights that open doors that seemed shut.

This is likely to be a lively conversation, and I invite comments. If you have never posted before, your comment will be held in a queue (to prevent spam). Once I have weeded out the spam, your comments will post in real time. If you receive this blog by email, you will have to click through to the blog site to see the comment threads. See you online.

Difference Between Non-Profit and Profit Organizations

From the Ask Tom mailbag –

Question:
We run a non-profit organization. Curious, related to Requisite Organization, what differences between not-for-profit and a profit organization.

Response:
Biggest differences between for-profit and not-for-profit –
1. Profit is called surplus.
2. The entity doesn’t pay taxes, or pass through taxes.
3. No person “owns” the entity.
4. Governance is achieved through a board of directors, which, in turn, hires the CEO.

While it is a fair question, the contrast in RO between for-profit and non-profit is minimal. The technical name for most of Elliott’s research is a Management Accountability Hierarchy (MAH). It’s purpose is to get work done.

There are larger contrasts between entities organized for purposes other than getting work done. There are differences between an MAH and a religious organization, a political organization, a family unit, a collegial organization, a fraternity, a sports team. Organizations are not necessarily designed for the purpose of completing work. And, there, is where you might see larger differences in accountability and authority related to problem solving and decision making.

Massive Update to Time Span 101

Just wanted to tell you about a massive content update to Time Span 101.

New Video Content (2-1/2 hours worth)
Time Span 101 now contains video from our most popular workshop Management Myths and Time Span. We recently produced this recording, and embedded more than 2-1/2 hours in 23 video segments into the learning platform at Time Span 101. If you attended one of my live workshops over the past ten years, this is your chance to re-capture the things you discovered about your organization.


New Updated Workbook
Subscribers will receive our pdf workbook, based on the workshop handout, to help organize your notes as you go through the program.

Old Subscribers
If you already have a subscription to Time Span 101, your login still works. You will receive a separate email with more details, including the pdf workbook.

New Subscribers
Get your login, now, for only $100. Register here – Time Span 101.

Learn the Way You Want to Learn
It’s up to you –

  • Follow the program – Timespan101.com is built in a logical sequence, so that one principle builds on another. It’s a no-brainer.
  • Random Access – You might have a particular interest. You can access any of the topics out-of-order based on your own interests.
  • Just Watch the Videos – If you just want to watch the videos, there is a link in [How to Use This Program] to just watch the videos. There are (23) video segments in the playlist. More than 2-1/2 hours of embedded videos.

Share This Critical Research
If you know someone else, who might also be interested in the Time Span research of Elliott Jaques, let me know. If you have any questions, just Ask Tom.

Where to Start

From the Ask Tom mailbag:

Question:
I have been following your posts on Requisite Organization. How do I implement this management strategy after seven years with a lack of organization or structure?

Response:
You start at the beginning, of course. Before you wreak havoc on everyone else, start with yourself. The first place to look is at your own Role Description. If you can even find it, it’s likely a mess. That’s where you start.

List out all the tasks and activities in your role. I use 2×2 sticky notes, one for each task. You should end up with 50-75 tasks. Look at the tasks and see which go together. Separate the tasks (the ones that go together) into piles. You will likely end up with 5-8 piles.

Next, name each pile with a short 2-3 word name. These names will be things like –

  • Planning
  • Personnel and Recruiting
  • Production
  • Administrative (Paperwork, every role has paperwork)
  • Reporting (Metrics, measurements)
  • Process Improvement
  • Safety
  • Equipment Maintenance
  • Scheduling
  • Training
  • Quality Control
  • Research

The names of these piles-of-tasks become the Key Result Areas for your role. These Key Result Areas (KRAs) become the structure for your Role Description.

Drafting the Role Description, using your KRAs as your outline, the organization of the document falls together. Inside each KRA, list the specific tasks, identify the Level of Work, and the accountability.

KRA #1
Tasks
Level of Work
Accountabilities

KRA #2
Tasks
Level of Work
Accountabilities

And so on.

Once you have written your Role Description, then pick a team member (to torture) and collaborate through this same exercise. Pick someone friendly and cooperative. It will likely take 3-4 meetings over a period of 1-2 weeks before you get agreement. Then move to the next team member. By then, you will get the hang of it and you will be ready to move to the next step.

Let me know how it goes.