Is it time to drag management theory into the 21st century?

Every organisation is a dynamic hybrid between the real and imaginary worlds.  Energy is the fifth dimension, the fuel that keeps it alive and competitive.

John Raddall

Organisations are trapped in a 17th century time warp 

We know that organisational theory is lost in the darkness of a forgotten time.

The reason is simple.

In the 17th century medicine was based largely on ignorance, superstition and an absolute absence of scientific thinking and knowledge.

The leadership and organisational world today seems captured in a similar time warp.

Just look at the daily dose of woo woo and feely-based nonsense and gobbledegook spewed out by academics, writers and consultants.  All straight from the book of management magic. 

Ask any coach or consultant what scientific method they would apply to raise the energy potential and performance of an entire organisation, and as likely as not you will receive a blank stare.  

Many executive coaches actively deny that there can even be a method.  Imagine your dentist of doctor telling you there is no method.

The 5D Model.  It's time to introduce some science 

 Confirmation of the time warp.

The organisational landscape is in a shambles.  Endless surveys tell us that 85% of employees think their managers are unpleasant or incompetent.  A similar number feel actively disengaged and would like to find another job.  The half-life of organisations has collapsed to less than ten years.  95% of organisational transformations fail.  The pandemic has opened a Pandora's Box of all the ancient assumptions of organisational structures and leadership principles - this has generated the 'great resignation' with no real answer.

At a macro level we know that we live on a finite planet with limited resources yet we bash on with our infinite growth model.  What better definition of insanity could we hope to find?

And how do we deal with this painfully obvious existential crisis?  We just ignore it.  Hoping that like the pandemic, it will just go away.  (After all the average global IQ is at a grunt level of just 82.  Perhaps this head-in-sand reaction is simply the best we can muster?)

It is not going away.  We need a new scientific approach.

The Five Dimensions of Organisations 

Traditionally organisations are drawn as two-dimensional hierarchies.  Administratively useful. But that's about all.

Organisations are complex and dynamic social systems that have to adapt and evolve continuously to survive and thrive on a harsh, competitive and largely chaotic landscape.

To add to the challenge we recognise that organisations are independent systems, but they have no visible system boundary in the real world.  Effectively they are imaginary - a difficult concept.

Organisations are really complex.  They transmogrify continuously between the imaginary and the real worlds.  To do this they need to be able to operate in five distinct dimensions.

These are the three dimensions of space, the fourth dimension of time, and the critical fifth dimension of energy.  

Organisations as a Sierpinski Fractal Pyramid 

The Sierpinski fractal pyramid is our model for a five dimensional organisation that is complex, evolving and partially visible.

It recognises the team with its leader as the core 'molecule' from which the organisational DNA and culture is constructed.

The model is entirely scalable from one core team to infinity.

It recognises that all organisations are competing on a five dimensional landscape - four of space and time, and fifth of energy.

The total system energy is the sum of all the team 'molecules'.  It is that simple.

Measuring the system potential energy - 'molecule by molecule'

 We know that energy drives life the universe and everything, including organisations.

But what is this energy?  The problem is that we don't know.  It is akin to looking for a graviton of even the Higgs boson.  But we do know that energy exists.  If it did not exist there would be no universe and no life.

The solution for us mere mortals is that we can measure the impact or result of energy being expended.  How fast can you run one hundred meters?  What is your IQ?  How well do you drive a car?

Individuals, leaders, teams and organisations can measure how they generate and use energy in exactly the same way.  By measuring impact in the real world.  Happiness.  Trust.  Driving for results.  Inspiring and motivating people.  Growth.  Profitability.  Innovation. 

Rules and meta-rules.  Drivers of system energy 

Explicit rules and implicit meta-rules form the complex network that links the imaginary and real worlds in every organisation.  They form the DNA of the organisation and determine the system's energy level.

And it is this energy level that determines the system's potential capability.  Raise the energy level and you automatically raise the system's potential to do work and compete.

Measuring energy 

We use relatively sophisticated instruments to assess individual, leader, team and organisational energy potential.

However there are some very simple tests you can apply. 

What percentage of energy is used, in your opinion, in the following four scenarios?

(Use a 1 - 10 scale.  1 Low, 10 High.  And convert your answers to a percentage.

  1. What percentage of your own personal energy, skill and capability are you able to use in your current role?
  2. How would you (and others) rate the energy, skill and capability of your manager?
  3. How would you rate the energy, skill and capability of your CEO and senior management team?
  4. How would you rate the energy, skill and capability of your team?
  5. Overall how would you rate the energy and competitive capability of your organisation?

SCORING. Above 80% - Excellent.  75% - 80% Very good.  65% - 75% Average.

55% - 65% Get moving fast!  Less than 55%. Terminal case!

Unleashing new energy in organisations 

Once leaders grasp the fact that they need to manage a complex system in five dimensions, the actual process of generating new levels of energy is relatively straightforward.

The first step - and this applies to individuals, leaders, teams and organisations - is to measure the current energy level.  (If you don't measure it how can you expect to manage it?)

The second step is to set a new energy target that you believe will be required to meet your strategic objectives.  (Remember: No strategy can be effective outside of the system energy envelope.)

The third step is to complete a detailed analysis of the system rules and meta-rules that constitute the current DNA.

The fourth step starts the 'genetic re-engineering'.  New high-energy rules and meta-rules are designed.

The fifth step is to design the execution strategy that will both splice the new 'genes' onto the current DNA and maintain their integrity over time.

The sixth and final step is to execute the 'genetic re-engineering' action plan.  Including continual review, measurement and maintenance.

Organisations are governed by the laws of physics ...
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