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Marshall Model

Beyond Command and Control – A Book Review

John Seddon of Vanguard Consulting Ltd. kindly shared an advance copy of his upcoming new book “Beyond Command and Control” with me recently. I am delighted to be able to share my impressions of the book with you, by way of this review.

I’ve known John and his work with e.g. the Vanguard Method for many years. The results his approach delivers are well known and widely lauded. But not widely taken up. I doubt whether this new book will move the needle much on that, but that’s not really the point. As he himself writes “change is a normative process”. That’s to say, folks have to go see for themselves how things really are, and experience the dysfunctions of the status quo for themselves, before becoming open to the possibilities of pursuing new ways of doing things.

Significant Improvement Demands a Shift in Thinking

The book starts out by explaining how significant improvement in services necessitates a fundamental shift in leaders’ thinking about the management of service operations. Having describe basic concepts such as command and control, and people-centred services, the book then moves on to explore the concept of the “management factory”. Here’s a flavour:

“In the management factory, initiatives are usually evaluated for being on-plan rather than actually working.”

(Where we might define “working” as “actually meeting the needs of the Folks that Matter”.)

Bottom line: the management factory is inextricable bound up with the philosophy of command and control – and it’s a primary cause of the many dysfunctions described throughout the book.

Putting Software and IT Last

One stand-out section of the book is the several chapters explaining the role of software and IT systems in the transformed service, or organisation. These chapters excoriate the software and IT industry, and in particular Agile methods, and caution against spending time and money on building or buying software and IT “solutions” before customer needs are fully understood.

“Start without IT. The first design has to be manual. Simple physical means, like pin-boards, T-cards and spreadsheet.”

If there is an existing IT system, treat it as a constraint, or turn it off. Only build or buy IT once the new service design is up and running and stable. Aside: This reflects my position on #NoSoftware.

John echoes a now-common view in the software community regarding Agile software development and the wider application of Agile principles:

“We soon came to regard this phenomenon [Agile] as possibly the most dysfunctional management fad we have ever come cross.”

I invite you to read this section for an insight into the progressive business perspective on the use of software and IT in business, and the track record of Agile in the field. You may take some issue with the description of Agile development methods as described here – as did I – but the minor discrepancies and pejorative tone pale into insignificance compared to the broader point: there’s no point automating the wrong service design, or investing in software or IT not grounded in meeting folks’ real needs.

Summary

I found Beyond Command and Control uplifting and depressing in equal measure.

Uplifting because it describes real-world experiences of the benefits of fundamentally shifting thinking from command and control to e.g. systems thinking (a.k.a. “Synergistic thinking” Cf. the Marshall Model).

And depressing because it illustrates how rare and difficult is this shift, and how far our organisations have yet to travel to become places which deliver us the joy in work that Bill Deming says we’re entitled to. Not to mention the services that we as customers desperately need but do not receive. It resonates with my work in the Marshall Model, with command-and-control being a universal characteristic of Analytic-minded organisations, and systems thinking being reserved to the Synergistic– and Chaordic-minded.

– Bob

Further Reading

I Want You To Cheat! ~ John Seddon
Freedom From Command and Control ~ John Seddon
The Whitehall Effect ~ John Seddon
Systems Thinking in the Public Sector ~ John Seddon

My Work

My work of the past ten+ years tells executives, managers and employees:

  1. What is the root of the problems in their organisation
  2. What to do about it (how to fix it)
  3. Why they won’t do anything about it

The Root of the Problems

The root of the problems in your organisation is the collective assumptions and beliefs (I generally refer to these as the collective mindset) held in common by all people within the organisation. Most significant (in the conventional hierarchical organisation) are the assumptions and beliefs held in common by the senior executives. In the Marshall Model I refer to the most frequently occurring set of collective assumptions and beliefs as the Analytic Mindset.

In knowledge-work organisations in particular, the Analytic Mindset is at the root of most, if not all, major organisational dysfunctions and “problems”.

What to Do About It

The way forward, leaving the dysfunctions of the Analytic Mindset behind, is to set about revising and replacing the prevailing set of collective assumptions and beliefs in your organisation with a new set of collective assumptions and beliefs. A collective mindset less dysfunctional re: knowledge work, one more suited to (collaborative) knowledge work. In the Marshall Model I refer to this new, more effective set of collective assumptions and beliefs as the Synergistic Mindset. Yes, as an (occasionally) rational, intentional herd, we can change our common thinking, our set of collective assumptions and beliefs – if we so choose.

Why You Won’t Do Anything

You may be forgiven for thinking that changing a collective mindset is difficult, maybe impossibly so. But that’s not the reason you won’t do anything.

The real reason is that the current situation (the dysfunctional, ineffective, lame behaviours driven by the Analytic Mindset) is good enough for those in power to get their needs met. Never mind that employees are disengaged and stressed out. Never mind that customers are tearing their hair out when using your byzantine software products and screaming for better quality and service. Never mind that shareholders are seeing meagre returns on their investments. Those in charge are all right, Jack. And any suggestion of change threatens their relatively comfortable situation.

So, what are you going to do? Just ignore this post and carry on as usual, most likely.

– Bob

The Aspiration Gap

Some years ago I wrote a post entitled “Delivering Software is Easy“. As a postscript I included a chart illustrating where all the jobs are in the software / tech industries, compared to the organisations (and jobs) that folks would like to work in. It’s probably overdue to add a little more explanations to that chart.

Here’s the chart, repeated from that earlier post for ease of reference:

Chart illustrating the gap between available jobs and jobs folks would like to have.

The blue curve is the standard Rightshifting curve, explained in several of my posts over the years – for example “Rightshifting in a Nutshell“.

The green curve is the topic of this post.

The Green Curve

The green curve illustrates the distribution of jobs that e.g. developers, testers, coaches, managers, etc. would like to have. In other words, jobs that are most likely to best meet their needs (different folks have different needs, of course).

Down around the horizontal zero index position (way over to the left), some folks might like to work in these (Adhoc) organisations, for the freedom (and autonomy) they offer (some Adhoc organisations can be very laissez-faire). These jobs are no so desirable, though, for the raft of dysfunctions present in Adhoc organisations generally (lack of things like structure, discipline, focus, competence, and so on).

The green curve moves to a minimum around the 1.0 index position. Jobs here are the least desirable, coinciding as they do with the maximum number of Analytic organisations (median peak of the blue curve). Very few indeed are the folks that enjoy working for these kinds of organisations, with their extrinsic (imposed) discipline, Theory-X approach to staff relations and motivations, strict management hierarchies, disconnected silos, poor sense of purpose, institutionalised violence, and all the other trappings of the Analytic mindset. Note that this is where almost all the jobs are today, though. No wonder there’s a raging epidemic of disengagement across the vast swathe of such organisations.

The green curve then begins to rise from its minimum, to reach a maximum (peak) coinciding with jobs in those organisations having a “Mature Synergistic” mindset (circa horizontal index of 2.8 to 3). These are great places to work for most folks, although due to the very limited number of such organisations (and thus jobs), few people will ever get to experience the joys of autonomy, support for mastery, strong shared common purpose, intrinsic motivation, a predominantly Theory-Y approach to staff relations, minimal hierarchy, and so on.

Finally (past horizontal index 3.0) the green curve begins to fall again, mainly because working in Chaordic organisations can be disconcerting, scary (although in a good way), and is so far from most folks’ common work experiences and mental image of a “job” that despite the attractions, it’s definitely not everyone’s cup off tea.

Summary

The (vertical) gap at any point along the horizontal axis signifies the aspiration gap: the gap between the number of jobs available (blue curve) and the level of demand for those jobs (green curve) – i.e. the kind of jobs folks aspire to.

If you’re running an organisation, where would you need it to be (on the horizontal axis) to best attract the talent you want?

– Bob

Footnote

For explanations of Adhoc, Analytic, Synergistic and Chaordic mindsets, see e.g. the Marshall Model.

 

The Big Shift

Let’s get real for a moment. Why would ANYONE set about disrupting the fundamental beliefs and assumptions of their whole organisation just to make their software and product development more effective?

It’s not for the sake of increased profit – Deming’s First Theorem states:

“Nobody gives a hoot about profits”.

If we believe Russell Ackoff, executives’ motivation primarily stems from maximising their own personal well being a.k.a. their own quality of work life.

Is There a Connection?

Is there any connection between increased software and product development effectiveness, and increased quality of work life for executives? Between the needs of ALL the Folks That Matter and the smaller subset of those Folks That Matter that we label “executives”? Absent such a connection, it seems unrealistic (understatement!) to expect executives to diminish their own quality of work life for little or no gain (to them personally).

Note: Goldratt suggests that for the idea of effectiveness to gain traction, it’s necessary for the executives of an organisation to build a True Consensus – a jointly agreed and shared action plan for change (shift).

Is Disruption Avoidable?

So, the question becomes:

Can we see major improvements in the effectiveness (performance, cost, quality, predictability, etc.) of our organisation, without disrupting the fundamental beliefs and assumptions of our whole organisation?

My studies and experiences both suggest the answer is “No”. That collaborative knowledge work (as in software and product development) is sufficiently different from the forms of work for which (Analytic-minded) organisations have been built as to necessitate a fundamentally different set of beliefs and assumptions about how work must work (the Synergistic memeplex). If the work is to be effective, that is.

In support of this assertion I cite the widely reported failure rates in Agile adoptions (greater than 80%), Lean Manufacturing transformations (at least 90%) and in Digital Transformations (at least 95%).

I’d love to hear your viewpoint.

– Bob

Further Reading

Organisational Cognitive Dissonance ~ Think Different blog post

Digital Transformation

It seems like “Digital Transformation” of organisations is all the rage – or is it fear? – in C-suites around the world. The term implies the pursuit of new business models and, by extension, new revenue streams. I’ve been speaking recently with folks in a number of organisations attempting “Digital Transformation”, some for the fourth or fifth time. I get the impression that things are not going well, on a broad front.

What is Digital Transformation?

Even though the term is ubiquitous nowadays, what any one organisation means by the term seems to vary widely. I’ll attempt my own definition, for the sake of argument, whilst recognising that any given organisation may have in mind something rather different, or sometimes no clear idea at all. Ask ten different organisations what Digital Transformation means to them, and you’re likely to get at least ten different answers.

Digital Transformation is the creation and implementation of new business models, new organisational models and new revenue streams made possible by the use of new digital technologies and channels.

Ironically it’s proving to NOT be about technology, but rather about company culture (this, in itself, being a product of the collective assumptions and beliefs of the organisation).

“A significant number of organisations are not getting [digital] transformation right because of a fundamental quandary over what digital transformation really is.”

~ Brian Solis, principal analyst and futurist at Altimeter

My Interest

So, why am I bothering to write this post? Aren’t there already reams of articles about every conceivable aspect of Digital Transformation?

Well, one aspect of Digital Transformation I see little covered is that relating to the development of “digital” products for the digitally-transformed company. And the implications this brings to the party.

Digital Transformation requires the development of new products and services to serve the new business models, new organisational models and new revenue streams. Digital products and digital services. In most cases, this means software development. And organisations, particularly untransformed organisations – which even now means most of them – are spectacularly inept at both software development and product development. Some refer to this as “a lack of digital literacy”.

Things have not changes much in this arena for the past fifty years and more. Failure rates resolutely hover around the 40% mark (and even higher for larger projects). And the much-vaunted (or is it much cargo-cullted?) Agile approach to development has hardly moved the needle at all.

For the past two decades I have been writing about the role of the collective psyche – and the impact on organisational effectiveness of the collectively-held assumptions and beliefs about how work should work. And make no mistake, effectiveness is a key issue in digital product development. Relatively ineffective organisations will fail to deliver new digital products and services at least as often as 40% of the time. Relatively effective organisations can achieve results at least an order of magnitude better than this.

The Marshall Model provides an answer to the question: what do we have to do to become more effective as an organisation? And it’s not a popular answer. By analogy, people looking to lose weight rarely like to hear they will have to eat less and exercise more. Organisations looking to become more effective rarely like to face up to the fact that they will have to completely rethink long-held and deeply-cherished beliefs about the way work should be organised, managed, directed and controlled. And remodel their organisations along entirely alien lines in order to see a successful Digital Transformation and compete effectively in the digital domain.

Successful Digital Transformations demand organisations not only come up with new business strategies, organisational models, revenue streams and digital products and services, but also that they shift their collective mindset to one which aligns with their ambitions. Personally, I see shifting the collective mindset as an essential precursor to the former. Most organisations approaching Digital Transformation fail to recognise this inevitability, this imperative. And so, most Digital Transformations are doomed to underachieve, or fail entirely.

“Ask yourself whether what you’re doing is disruptive to your business and to your industry. If you can say yes with a straight face, you may well be conducting a legitimate digital transformation.” And if you’re unable to say yes, then whatever you’re doing, it’s likely not a Digital Transformation.

If you’d like to explore this topic, understand more about the Marshall Model, its relevance and its predictive power, and save your organisation millions of Dollar/Pounds/Euros – not to mention much embarrassment and angst – I’d be delighted to chat things over with you and your executive team.

– Bob

Further Reading

Reinventing Organizations ~ Frederic Laloux

Effectiveness

I recently had a bit of a wake-up call via Twitter. I asked the following question:

“What’s the one thing /above all/ that makes for an effective organisation?”

My thanks to all those who took the time to reply with their viewpoint. The wake-up call for me was the variety of these responses. All over the map might be a fair description. Which, given I’ve been writing about effectiveness in the context of organisations for more than a decade now, tells me I’ve some way to go to get my perspective across. Not that I’d expect folks to respond by simply parroting my definition, of course. And nor do I claim any special authority over the term.

Goldratt defines (in)effectiveness as:

“Things that should not have been done but nevertheless were done.”

Drucker defined it as:

“Successfully aligning behaviour with intentions.”

Aside: It’s been my experience that (organisational) effectiveness gets little attention or focus in most organisations. And seeing as how in most organisations things are so ineffective, I’ve come to believe that those making the calls don’t see a need for effectiveness.

Spectra

Effectiveness is a spectrum. From highly ineffective through to highly effective. Note that this spectrum is orthogonal to the spectrum of organisational success (by whatever measure you might choose for success: revenues, profits, social impact, personal kudos, joy, employee satisfaction, customer satisfaction, quality, returns to shareholders, executive bonuses, w.h.y.).

Effective organisations are not necessarily successful, and successful organisations are not necessarily effective. I posit that effectiveness can help create, contribute to, and sustain success. I seem to be in a minority.

Survey Results

Here’s the responses I received to my question “What’s the one thing /above all/ that makes for an effective organisation?”:

  • @FragileAgile: “Folks needs being intentionally met.”
  • @andycleff: “+1 to Trust. Foundation for all the things.”
  • @LMaccherone: “Happy paying customers”
  • @stuart_snelling: “Accurate, contextual and meaningful data that is readily accessible.”
  • @ChangeTroops: ”Growth mindset.”
  • @allygill: “Effective people who understand the needs of their customers (internal and external) and each other.”
  • @KarimHarbott: “Totally and utterly dependent on what they are trying to achieve.”
  • @ArnoutOrelio: “People”. “Their ability to improve things; their creativity.”
  • @gertveenhoven: “Trust.”
  • @ferigan: “A team structure that doesn’t require effort to collaborate in and allows work to flow well.”
  • @anam_liath: “Common vision and ideals.”
  • @rogersaner: “Empowering your people.”
  • @sourabhpandey05: “I would say ‘Culture’ of the organisation. Culture which promotes1 the values trust, transparency, respect for everyone.”
  • @heybenji: “Ingenuity.”
  • @joserra_diaz: “Mindset of the owner.”
  • @ard_kramer: “Autonomy for individuals and a common understanding of what is of value for the organisation.”
  • @martinahogg: “Alignment.”
  • @briscloudnative: “Love.”
  • @barryfarnworth: “Understanding purpose….”
  • @mikeonitstuff: “Ultimately I think it’s leadership. The leaders set the stage for the culture and the vision for the organization. Poor leadership can destroy value and morale, great leadership creates the conditions for high performance.”
  • @EricStephens: “Uniform Commitment to the mission.”

For each of the above, I invite you to apply this litmus test: “if we had this, would we then necessarily be effective?”

Rightshifting

Some folks asked me for my “answer”, so here it is:

Rightshifting and the Marshall Model both attribute (relative) organisational effectiveness to the prevailing collective mindset. That’s to say, what an organisation collectively believes about how the world of work should work will absolutely dictate how effective that organisation will be. Any organisation wishing to become significantly more effective faces the formidable challenge of changing its collective assumptions and beliefs about work (in the broadest sense of the term). In other works, change the prevailing paradigm, or better yet, acquire the power to transcend /any/ particular paradigm.

For clarity then, the one thing above all that makes for an effective organisation is its collective mindset a.k.a. memeplex.

This echoes the famous “Twelve Leverage Points to Intervene in a System” by Donella Meadows:

– Bob

Solutions Demand Problems

I’m obliged to Ben Simo (@QualityFrog) for a couple of recent tweets that prompted me to write this post:

BenSImoTweets

I very much concur that solutions disconnected from problems have little value or utility. It’s probably overdue to remind myself of the business problems which spurred me to create the various solutions I regularly blog about.

FlowChain

Problem

Continually managing projects (portfolios of projects, really) is a pain in the ass and a costly overhead (it doesn’t contribute to the work getting done, it causes continual scheduling and bottlenecking issues around key specialists, detracts from autonomy and shared purpose, and – from a flow-of-value-to-the-customer perspective – chops up the flow into mini-silos (not good for smooth flow). Typically, projects also leave little or no time, or infrastructure, for continually improving the way the work works. And the project approach is a bit like a lead overcoat, constraining management’s options, and making it difficult to make nimble re-adjustments to priorities on-the-fly.

Solution (in a Nutshell)

FlowChain proposes a single organisational backlog, to order all proposed new features and products, along with all proposed improvement actions (improvement to the way the work works). Guided by policies set by e.g. management, people in the pool of development specialists coalesce – in small groups, and in chunks of time of just a few days – around each suitable highest-priority work item to see it through to “done”.

Prod•gnosis

Problem

Speed to market for new products is held back and undermined by the conventional piecemeal, cross-silo approach to new product development. With multiple hands-offs, inter-silo queues, rework loops, and resource contentions, the conventional approach creates excessive delays (cf cost of delay), drives up the cost-of-quality (due to the propensity for errors), and the need for continual management  interventions (constant firefighting).

Solution (in a Nutshell)

Prod•gnosisproposes a holistic approach to New Product Development, seeing each product line or product family as an operational value stream (OVS), and the ongoing challenge as being the bringing of new operational value streams into existence. The Prod•gnosis approach stipulates an OVS-creating centre of excellence: a group of people with all the skills necessary to quickly and reliably creating new OVSs. Each new OVS, once created, is handed over to a dedicated OVS manager and team to run it under day-to-day BAU (Business as Usual).

Flow•gnosis

Problem

FlowChain was originally conceived as a solution for Analytic-minded organisations. In other words, an organisation with conventional functional silos, management, hierarchy, etc. In Synergistic-minded organisations, some adjustments can make FlowChain much more effective and better suited to that different kind of organisation.

Solution (in a Nutshell)

Flow•gnosis merges Prod•gnosis and FlowChain together, giving an organisation-wide, holistic solution which improves organisational effectiveness, reifies Continuous Improvement, speeds flowof new products into the market, provides an operational (value stream based) model for the whole business, and allows specialists from many functions to work together with a minimum of hand-offs, delays, mistakes and other wastes.

Rightshifting

Problem

Few organisations have a conscious idea of how relatively effective they are, and of the scope for them to become much more effective (and thus profitable, successful, etc.). Absent this awareness, there’s precious little incentive to lift one’s head up from the daily grind to imagine what could be.

Solution (in a Nutshell)

Rightshifting provides organisations with a context within which to consider their relative effectiveness, both with respect to other similar organisations, and more significantly, with respect to the organisation’s potential future self.

The Marshall Model

Problem

Few organisations have an explicit model for organisational effectiveness. Absence of such a model makes it difficult to have conversations around what actions the organisation needs to take to become more effective. And for change agents such as Consultants and Enterprise Coaches attempting to assist an organisation towards increased effectiveness, it can be difficult to choose the most effective kinds of interventions (these being contingent upon where the organisation is “at”, with regard to its set of collective assumptions and beliefs a.k.a. mindset).

Solution (in a Nutshell)

The Marshall Model provides an explanation of organisational effectiveness. The model provides a starting point for folks inside an organisation to begin discussing their own perspectives on what effectiveness means, what makes their own particular organisation effective, and what actions might be necessary to make the organisation more effective. Simultaneously, the Marshall Model (a.k.a. Dreyfus for Organisations) provides a framework for change agents to help select the kinds of interventions most likely to be successful.

Organisational Psychotherapy

Problem

Some organisations embrace the idea that the collective organisational mindset – what people, collectively believe about how organisations should work – is the prime determinant of organisational effectiveness, productivity, quality of life at work, profitability, and success. If so, how to “shift” the organisation’s mindset, its collective beliefs, assumptions and tropes, to a more healthy and effective place? Most organisations do not naturally have this skill set or capability. And it can take much time, and many costly missteps along the way, to acquire such a capability.

Solution (in a Nutshell)

Organisational Psychotherapy provides a means to accelerate the acquisition of the necessary skills and capabilities for an organisation to become competent in continually revising its collective set of assumptions and beliefs. Organisational Psychotherapy provides guidance and support to organisations in all stages of this journey.

Emotioneering

Problem

Research has shown conclusively that people buy things not on rational lines, but on emotional lines. Rationality, if it has a look-in at all, is reserved for post-hoc justification of buying decisions. Most product development today is driven by rationality. What are the customers’ pain points? What are the user stories or customer journeys we need to address? What features should we provide to ameliorate those pain points and meet those user needs? Upshot: mediocre products which fail to appeal to the buyers emotions, excepting by accident. And thus less customer appeal, and so lower margins, lower demand and slower growth.

Solution (in a Nutshell)

Emotioneering proposes replacing the conventional requirements engineering process (whether that be big-design-up-front or incremental/iterative design) focusing as it does on product features, with an *engineering* process focusing on ensuring our products creaate the emotional responses we wish to evoke in our customers and markets.

The Antimatter Principle

Problem

How to create an environment where the relationships between people can thrive and flourish? An environment where engagement and morale is consistent through the roof? Where joy, passion and discretionary effort are palpable, ever-present and to-the-max?

Solution (in a Nutshell)

The Antimatter Principleproposes that putting the principle of “attending to folks’ needs” at front and centre of allof the organisations policies is by far the best way to create an environment where the relationships between people can thrive and flourish. Note: this includes policies governing the engineeringdisciplines of the organisation, i.e. attending to customers’ needs at least as much as to the needs of all the other Folks That Matter.

– Bob

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