Summary of Dave Snowden and friends - Organizational Design - Part 4

Main Ideas and Concepts

• Informal vs. Formal Networks:
  • A significant amount of organizational learning occurs within informal networks, which serve as critical sensor networks.
  • Trust dynamics differ between informal and formal networks.
• Interventions in Organizational Design:
  • Adding interventions to existing systems is easier than removing them. Care must be taken to avoid leaving temporary interventions in place, which can complicate systems over time.
  • Types of interventions include stable, plastic, and ephemeral.
• Hope-Despair Cycle and Adaptive Capacity:
  • The "as is to be" model of organizational design focuses on destination and outcomes, which can lead to negative cycles.
  • Adaptive capacity is defined as the ability of a system to adjust to change, and organizations should aim to enhance this capacity through fluid structures.
• Risks of Copying Models:
  • Caution is advised when trying to replicate successful models (e.g., Spotify) as they are constantly evolving.
• Hierarchy and Leadership:
  • While hierarchy is often criticized, it plays a crucial role in providing command during crises.
  • The concept that followers create leaders, rather than the other way around, is emphasized.
• Resilience and Robustness:
  • There is a distinction between resilience (the ability to recover) and robustness (the ability to withstand disruption). Both qualities are necessary for effective organizational design.
  • The idea of "anti-fragility" is discussed, which refers to systems that improve when exposed to stress.
• Continuous Learning:
  • Organizations should foster a culture of continuous learning to enhance adaptive capacity. Employees need time and resources to develop new skills and capabilities.
• Brittleness in Systems:
  • Some systems should be designed to be brittle and break under certain conditions to facilitate necessary changes and adaptations.
• Dual Operating Systems:
  • The concept of a dual operating system is introduced, where a network of teams operates alongside a hierarchical structure to balance adaptability and necessary controls.
• Economic Sovereignty and Local Resilience:
  • The conversation touches on the need for organizations to maintain local capabilities and resist overly lean practices that strip away resilience.

Methodology and Instructions

• Design for Adaptation:
  • Create structures that allow for both resilience and robustness.
  • Encourage a balance between formal hierarchy and informal networks.
• Foster Continuous Learning:
  • Allocate time and resources for employees to learn and develop skills.
  • Promote a culture of experimentation and adaptation.
• Manage Constraints:
  • Focus on identifying and managing constraints rather than viewing the organization as a whole system.
• Implement Dual Operating Systems:
  • Maintain a network of teams that can adapt alongside a necessary hierarchical structure.

Speakers and Sources Featured

• Dave Snowden
• Toby Sinclair
• Matt Skelton
• Manuel Pace
• Other unnamed participants in the discussion

This summary encapsulates the key themes and discussions from the video, highlighting the complexity of organizational design and the importance of adaptive capacity in navigating change.

Notable Quotes

— 04:28 — « Adaptive capacity is the ability of a system to adjust to change, including climate variability and extremes, to moderate potential damages, to take advantages of opportunities or to cope with consequences. »

— 10:46 — « Sometimes systems need to be brittle because they need to break early. »

— 11:46 — « We need organizations to both be resilient and robust. »

— 12:08 — « The danger of professional management is that it can lead to a disconnect between those who know the work and those who manage it. »

— 12:54 — « The focus on effectiveness and cost-cutting has stripped all the slack out of our organizations. »

Category

Educational

Video