Whole-System Architecture
Whole-System
Architecture (WSA) is designed to create unity of purpose, a unified understanding
of values; alignment of systems and structure; and, alignment to strategy. It is also a
change methodology of co-creation, creating and designing the house in which you
live. The human body is a whole-system with sub-systems (nervous system,
digestive, cardiovascular system, etc.) These systems are inter-dependent and the
failure of one can result in the failure of the entire system. Similarly, every
organization is a whole-system comprised of subsystems such as the information
systems, the organization structure, decision-making systems, hiring, training,
motivation and others. The degree to which these systems are aligned with each
other, and aligned to the requirements of the external environment, the organization
will succeed. Unfortunately, most organizations do not have a process to create this
alignment.
I recommend these two articles for a more in-depth explanation of WSA,
also known as High Performance Organization (HPO) design, or Socio-
Technical Systems (STS) design. It’s all the same thing.
Whole-System Architecture Article
Lean Implementation in Home Health Care updated
Lean management, or Toyota Production System, is a whole-system. Most efforts to
implement lean focus on some subsystems and not others. They often fail because
of this failure to create alignment. For example, if you want employees to engage in
continuous improvement they must be organized into teams that know their process.
This requires knowledge of performance, information flow to the team. For a team to
function well, they must have training and coaching to develop their capacity to solve
problems. If they are to sustain improvement efforts there must be some system of
motivation to encourage their efforts. Each of these are sub-systems that must be
designed as a whole-system.
There are many ways to illustrate the whole-system of an organization. One is to
recognize that there are numerous external forces acting on the organization. The
ability to adapt and change is a requirement because of changes in the external
forces. These include technology, customer preferences, the economy, etc. What is
within an organization can be divided into its technical systems (core work process,
equipment, technology), the supporting social systems (structure, skills,
communication, motivation, etc.), and the economic system (all the financial inputs
and outputs).
Whole-Systems Strategy
The essence of strategy is
recognizing threats and opportunities presented by the external environment and
then responding to those in a way that aligns the organizational systems to meet
those challenges. In other words, if the future of marketing our products is going to
be through the Internet and social media, with single day response and delivery to
customers, virtually every system in the organization needs to aligned to achieve
success in that system. You have to intentionally design that system. The old system
will likely not have that capability. Continuous improvement will not get you there.
Intentional redesign will.
Most strategic planning is focused on creating externally facing strategy. In other
words, what does the market want? What are the financial requirements to meet the
needs of shareholders? What market position are we trying to achieve? These are all
important questions. But, they do not address the internal capability of the
organization to perform. If our strategy calls upon us to meet the needs of a new
market or employ new technologies, there is a need to develop new internal
capabilities. Strategy execution, according to the Conference Board, is the number
one problem faced by CEO’s of major corporations. They report that most strategy
execution either fails or falls short. Why? Because of the failure to create the internal
capabilities that enable an organization to execute strategy. This is why I developed
my course on Strategy Execution. And, this is why a whole-system approach is
required to achieve successful strategy execution.
Whole-System Architecture as a Change
Methodology
Whole-system architecture is a change management methodology that recognizes
the organization as a living, organic whole that must change in a coordinated way;
and to do so in a way that will maximize the commitment and ownership of those
who live within the organization. The first principle of managing change is that we
are committed to that which we help to create. Conversely, we will not be
committed to something that is imposed on or sold to us, no matter how good the
sales pitch.
There is what I call the Habitat for
Humanity principle. Habitat for Humanity builds homes for the disadvantaged. They
learned an important lesson about sustainability. They do not just build a home and
give it to a family. It is a requirement that members of the family must participate in
the building of the house. They hammer nails, carry wood and use the paint brush.
By doing this they are far more likely to care for and maintain that home. Their
participation makes the home and the community more sustainable. The exact same
thing is true of change within organizations. Habitats mission statement says “We
view our work as successful when it transforms lives and promotes
positive and lasting social, economic and spiritual change within a
community; when it is based on mutual trust and fully shared
accomplishment; and when it demonstrates responsible stewardship of all
resources entrusted to us.” This would be a good mission statement for almost
any corporate change process. It must not only move equipment around and speed
a production process. It must transform the lives of those within the organization. It
must promote positive and lasting social, as well as economic change. Then you will
have commitment.
Consultants may be useful to guide the process and to ask questions that can help
your people think creatively. However, it must never be the consultant’s design. He
or she must never own it. It must be owned by those who will then implement it. It is
their house and they will live in it.
It is recommended that this process be an “inter-active” planning process with an
executive steering team who gives the process direction and authority;
and design teams comprised of members of the organization who are responsible
for the following four stages of Discovery, Dream, Design and
Development. These two lead groups will seek ways to involve as many as
possible in the organization to gain the broadest possible engagement.
This design team will receive a “charter” from the steering team and this charter will
provide clear guidance as to the objectives of their work and the boundaries of what
they may and may not redesign. The design team will ultimately report back their
design and recommendations for implementation.
Principles of Whole-System Architecture
The following principles underlie the Whole-System Architecture methodology.
1. The
organization is a complex system that requires alignment of its parts to the same
goals and purpose.
2. Design the organization as an open-system that adapts to its environment and aligns
with the requirements of its environment.
3. The design should optimize the opportunity for its members to work as natural work
teams, to learn from each other, and achieve the intrinsic satisfaction that can be
derived from enriching jobs.
4. The organization design should be done by the “world’s greatest experts” and those
who design should implement that which they have designed. Enlarge the circle of
involvement as you implement but do not lose the understanding of those who did
the analysis and design of the new system.
5. Shared principles create unity of systems, processes, and people and must be
applied at all levels and across all functions.
6. How you change is the change. The process used for designing the organization
should be compatible with how the organization will function in the future.
7. Design for variance control at the point closest to the origin of deviation. Immediate
feedback loops enable immediate improvement or solving problems that create
variances. Design in feedback loops to minimize wasteful errors.
8. The purpose of the organization is to meet the needs of its customers. Involve the
customer and focus on meeting customer requirements.
9. Appreciation and understanding of human needs and values should be reflected in
the design. Design for the growth of human potential including expanded multi-skilled
work, job rotation, load-leveling and expanded decision-making.
10. Expect an imperfect design, with no fear of failure, but opportunity for learning
and continuous improvement.
11. Design to an ideal or future state beyond your “village.” Every company and
every industry is a village or tribe that assumes the norms within. Look outside and
beyond for models of excellence.
12. Engage in appreciate inquiry to find canters of excellence within your
organization and incorporate those lessons.
13. All complex living systems contain processe
14. s of self-organization. Allow for and promote self-organizing processes within
the design.
Getting to Lean
Over the years I have developed numerous training
manuals to assist the work of steering and design teams. My most recent is focused
on applying this process to building lean organizations and culture. That is the
subject of Getting to Lean. It is a comprehensive guide to this methodology.
You can download the full article on Whole-System Architecture here.
Download a case study of Lean Implementation in Home Health Care
updated.
