Management Overgrown: Time for Regrowth

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Bureaucracy has become the definition of the kind of management organisations are seeking to avoid. However, bureaucracy started as a significant step forward in management systems. As we design the future management practices we need to ensure we do not see the same overgrowth.

Fixing Management History: Bureaucracy

Bureaucracy was created to fix problems with the previous systems of management. Bureaucracy has its strengths relative to the inconsistent, corrupt and ineffective regimes that preceded it. However, any strength overdone creates a new weakness.

Here are some of the positive changes that came with bureaucracy. Without continued innovation, these practices took on a logic of their own and became overused:

  • Incompetence, influence and nepotism were addressed by a hiring and promotion on managerial competence and expertise. Overdone this expertise focus led to an unwillingness to learn, internal focus and new forms of abuse of power.
  • Inconsistency and unpredictable management decisions were addressed by leveraging policy and hierarchical review. Overdone this led to stasis and disempowered managers who couldn’t address exceptions
  • Ineffectiveness was addressed by the clarity of division of labour bringing clear accountabilities and measurement of work. Overdone this led to breakdowns in coordination, ability to deliver and waste.

Emergent Management Practice

The reason bureaucracy resulted in these issues is that its design allowed little room for checks on its use. The focus on predictability meant bureaucracy was not generative. It had little or any capacity for new management approaches to emerge. The only approach to issues was the application of more bureaucracy.

As we design the future of work, we must take care that the changes we make address the right issues and do not become equally overgrown:

  • Solve the right problems in management today: Is hierarchy really the problem? It is human nature to obsess about power and the role of hierarchy in life. Hierarchal power is only one part of how decisions get made. Many of the approaches that ‘rid organisations of hierarchy’ can’t achieve that. There is a good argument that the issues above with bureaucracy are more about learning, use of knowledge, speed and decision making than they are about power.
  • Simplicity over complexity: Simple practices are more likely to remain transparent. When it is easier for people to understand the practice as a whole and keep its goals in mind, it is harder for people to take individual aspects of the management practice as their own end. Bureaucracy has been bedevilled by people taking means as ends. I suspect one reason Holacracy has found most implementations are ‘Holacracy lite’ is due to the complexity of its original proprietary formulation.
  • Generative practice: Management practices that challenge users to look for improvements in the practice have inbuilt protection against overgrowth. I focus on the generative capability of Big Learning because the two core elements of learning and enabling work and learning keep a focus & accountability on all in the management system on how to improve the work and its outcomes.

The only way to prevent the overgrowth of new management practice is to be constantly pruning and reshaping our work in the efforts to learn and improve.

The Problem is Everywhere

The peculiar character of the problem of a rational economic order is determined precisely by the fact that the knowledge of the circumstances of which we must make use never exists in concentrated or integrated form but solely as the dispersed bits of incomplete and frequently contradictory knowledge which all the separate individuals possess. The economic problem of society is thus not merely a problem of how to allocate “given” resources—if “given” is taken to mean given to a single mind which deliberately solves the problem set by these “data.” It is rather a problem of how to secure the best use of resources known to any of the members of society, for ends whose relative importance only these individuals know. Or, to put it briefly, it is a problem of the utilization of knowledge which is not given to anyone in its totality. – Friedrich A Hayek “The Use of Knowledge in Society”

Yesterday I met with an organisation that wanted some of my help as they sought to solve a problem. The organisation was developing a new knowledge sharing system to enable is staff to be better informed about products and processes. There was one slight issue with this problem. The organisation already had multiple systems to enable its staff to be better informed about products and processes: intranets, social networks, training, help & support tools, automation, etc.

Problems Everywhere

As we asked why these other systems didn’t work it became clearer that the project team’s issue was that it was solving a problem for others, rather than with others. The explanations for needing a new system did’t stack up and suggested there was more that needed to be learned from the users:

  • ‘Most of the learning is peer to peer. We need to give them better options’: Why do they prefer to learn from peers who might be inaccurate or unavailable? Why will they change this if you offer a new system? 
  • ‘They won’t use a collaboration system because they say they don’t have the time’ : if time is a question of priority, why isn’t it a priority? To what extent is the culture, leadership and performance management of the team driving this lack of priority? If they won’t collaborate why will they have the time to use something else? What is there time actually spent on? What do they do instead?
  • ‘Those system don’t give them the answers they need so we are building a new one’: If the last system didn’t understand what was required, how do you? What does relevance look like to each user? What does relevance look like to their customers?
  • ‘They want help with process X, but we are building something innovative for all processes’: Why do they want help with that process? What’s innovative about ignoring the demand?

The Answer is Everywhere

The answers to these questions are dispersed in a wide range of people beyond the project team. They draw in questions of culture, of practice, or rational and irrational behaviour by real human beings doing real work under the daily pressures of customers and a large organisation. There’s a lot of learning to do.

We have the tools to solve this dispersion and gather insights into what needs to be done in the practices of Big Learning:

  • we can actively collaborate with the users and other participants in the system to get under the pat answers and explore the deeper reasons and problems
  • we can use the practices of design thinking to better understand and shape employee behaviour & the systems involved in action
  • we can analyse data to understand in greater detail what is going on
  • we can experiment and iterate to ensure that proposed changes work the way that we expect
  • we can enable and empower the users to create changes to their work
  • we can accelerate the interactions and the cycles of learning to move faster to better solutions

These aren’t parallel techniques to be applied independently. The practices of Big Learning work best as an integrated system that draws together the insights from all of these approaches to help organisations learn and work. Big Learning enables organisation to work with and through its employees to deliver change. Change does not have to be done to them.

The reason organisations need to develop systems to facilitate Big Learning is elegantly described by Hayek in the conclusion to his essay “The Use of Knowledge in Society”.  Hayek was critiquing the schools of economists who thought that centrally planned interventions designed by experts would be effective. The context may differ but organisations still use forms of central planning by experts to create change. These changes fall short for a fundamental reason – experts can’t know enough alone:

The practical problem, however, arises precisely because these facts are never so given to a single mind, and because, in consequence, it is necessary that in the solution of the problem knowledge should be used that is dispersed among many people

The practices of Big Learning help bring people together to share insights, learn and work as one.

Big Learning

Organisations need to rethink their approach to learning. It is no longer a function and an oft-neglected subset of the role of HR. Now it is clearer than ever that learning and the realisation of human capability is the function of organisations.

Why do we come together?

Organisational models are changing. There is much discussion of the potential of new ways of working and organising work. We are thinking about the post-work economy, the Uber-economy, holacracy, responsive organisations, the human-to-human economy or many other forms of the debate on the role and shape of organisations.

What is clear is that in an era where the friction of information, interaction and collaboration is reducing is that organisations to survive must enable people to be and do better together than they can be on their own. Realising the human potential of individuals and teams becomes a critical part of the rationale of organisations, whether that simple rationale is in turn justified in lower transactional costs, trust, scale, access to funding, need for community, collective security or some other rationale.

From Execution of Processes to Learning

When we focus on our organisations existing to better realise human potential we shift the focus of organisations away from the traditional rationale of efficient execution of stable business models. We must recognise that as our people’s knowledge, skills and capabilities grow so can the ways we work, we engage others and we create value. Highly competitive markets and fast followers will compete away value that is not based on organisations continuing to improve their ways of working, their value for customers and that takes collectively learning.

Start-ups are just one example of organisations designed for the purpose of learning. First a start-up seeks to learn what problems need solving. Then it starts to build business models that more effectively address these problems and create value.  All the way through this journey, the people in the organisation are challenged to work in better ways, to learn more and to realise their potential.  Start-up organisations have become innovators in the ways of working as they have found ways that better enable the potential of their lean teams to be realised. Many of these work practices are now becoming commonplace e.g. agile delivery, lean, customer centred design approaches, experimentation, data analytics, holacracy, collaboration, etc. 

From Learning to Big Learning

Increasingly large organisations are seeking to apply these skills to their work to compete and to grow. Slowly learning is being seen as it should have been seen all along, as a critical capability to enable the delivery of strategy and ensure organisational survival against disruption and entropy. 

However, learning in this context is no longer a function of HR. Learning becomes a function of every role, every process and every action in the organisation. We are not applying 70:20:10 with the goal of making learning programs better. Now the entire organisation seeks to use the capability of every individual to learn and improve to better achieve its goals and better create value. Organisations will succeed on the extent to which its group of individual learners outperforms the learning going on at competitors. This is Big Learning. 

Individual practices like lean thinking, agile, design, experimentation, analytics etc are not implemented to perfect a practice or make work more efficient. Each of these practices are part of creating step changes in performance through learning, a mindset of Big Learning. These practices are developed to enable the organisation to realise its purpose of enabling its people to realise their potential faster and more effectively than competitors.

Big Learning takes a new System

Big Learning takes a new systemic approach to the development of people’s potential and the processes of work in the organisation. Declaring your organisation a learning organisation or increasing funding your learning team won’t cut it. There is no one product or service to purchase. Every organisation needs to develop its own Big Learning system. The changes will involve every role, process and function. The approach will depend on its customers, its strategy, its people and its culture. The answer will depend on what best realises its ability to create increasing value over time.

A New System Takes Change Agents

New approaches to help organisations and their people to learn and share their capabilities, and work in new ways are being created every day. Managers and workers already have a wide range of tools and approaches available to begin their experimentation. Change agents need to be enabled to start to make this change happen. Organisations need to start challenging themselves today whether they are realising the potential of their people to create value for customers and the community.

“Work is learning and learning is the work” – Harold Jarche