In this Section you will begin to look at the way that the various
parts of your organisation work together.
At the end of the Preliminary Diagnosis, you will have a picture of the way your enterprise looks in terms of the "building blocks" which compose it.
The rest of the manual looks at the interaction of these building blocks, and is concerned with ensuring that the whole thing works together in an integrated form.
The essence is organisational balance: of ensuring that the bits which are charged with over-seeing the Operational units have the capacity to do their job properly.
The first element of generating this balance is to give each Operational unit as much autonomy as the organisation can handle, without degenerating into separate and isolated parts.
This new emphasis on making all workers more autonomous has been obvious to people in co-operatives for decades - what has been lacking is the systems needed to ensure it works properly. There is no point in saying "OK ... you're all autonomous now" and expecting the rest to take care of itself.
The first essential is for each Operational unit to be clear about its role within the whole organisation and should therefore produce its own Mission Statement.
This may take some negotiation with everyone else, but will ensure that the Operational unit works as an integrated part of a greater whole.
In Viable System Model terms, this issue concerns one Operational
unit and its relationship with System 3.
One Operational unit has been highlighted - it is shown interacting with its environment.
The double arrow indicates the interaction between that Operational unit and System 3.
The basic idea is clear: the unit should be free to do whatever it wants without interference from anyone else as long as:
This is the point at which the design process can begin.
System 3, which oversees the collection of Operational units must have a financial aspect which is concerned with the overall financial picture for the business. It is the job of financial System 3 to allocate resources.
Usually this will occur in the yearly budget rounds. Each unit will say "We need £ £ £ in order to do our job", System 3 will add it all up and say "Sorry, we don't have enough to give everyone everything they want, who can make cuts?"
This process will continue until either the necessary cuts are made .. or .. System 3 will make decisions about who gets what, in the light of what's best for the whole organisation. (That is ... it optimises the allocation of resources).
In most cases, the allocation will only happen once a year and thereafter, each Operational unit will do its job according to the pressures put upon it by the market or other parts of its own organisation.
This one way process (here's the money you need, and that's the end of my job ...) works reasonably well as long as everything proceeds as normal, but is totally incapable of dealing with problems.
The usual situation is as follows:
In the event of a dramatic collapse in productivity within a department, it is possible that no-one would know for months and severe damage could be done to the organisation.
The solution is clear - each department must be accountable.
This is the alternative: System 3 says: "Here are your resources - you can have them as long as you do your job in the way we agreed."
The question is valid. A protocol must be in place which can deal with the possibility of a group of people loosing heart and of letting their performance deteriorate.
The first part of the solution is accountability: if performance is measured and the figures are monitored, then at least the deterioration can be noticed.
The second part is to define clear performance standards which the people working within that unit can aim for.
The final part is to agree the terms on which any severe problems can be dealt with. This may be something like:
|If productivity falls to 85% of the usual level and doesn't improve for 10 days, then autonomy is forfeit, a trouble-shooter will be appointed to assess the situation and recommendations will be made to the rest of the co-operative.|
The details of this statement will vary depending upon the situation, but the loss of autonomy must be an essential element.
The nature of the intervention rules should:
To do this, a continuous interaction between the Operational unit and System 3 is essential.
The unit should be free to pursue its own development and respond to the demands of its environment, but within the constraints of being part of a larger whole.
I asked what they intended to do and they said "We were told to use this tractor and lay the tarmac so that's what we have to do" So they laid the tarmac without guides.
Inevitably, the plan cannot cope with the complexities of the situation and the Supervisor has several jobs which he is supposed to supervise going on simultaneously.
The solution is (of course) to give the men doing the job the autonomy to control it themselves, but that is completely alien to the culture.
I discussed this with one of the workmen who agreed. "But we're all supposed to be totally stupid and only able to do what we're told."
HTML version constructed by John Waters at the Llanidloes Resource Centre. Last modified 30th October 2005.