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- Englishman brought up in the United States. Did multidisciplinary degree at the London School of Economics. Found his natural home in the international mining industry. Has worked most of his life in mining and energy and large projects.

- I guess the most compelling aspect of the book to me are the notion that you can put work into levels. Each level has a unique, productive feature to the enterprise. I've seen that work in combat. And I think doing that in a business setting is equally rewarding.
- Time span can be useful in the way to look at some people, some organizations. But it may not have the universality that Elliot may have subscribed to. I think the curves are useful, but I think you apply them as you need to apply them.
- The curves come into mind in terms of what I call producing leadership. And we have leaned, as a lot of public institutions do, hard on the side of objectivity. Enterprise leadership isn't always the result of an objective linear program. It is much more nonlinear.

- Research tries to get at the question of how informal social structure in organizations might shape organizational outcomes. Studies tend to focus on individuals networks, individual person's position within a network, in an organization. Global network perspective can lend a lot of value.
- The quality and efficiency of surgical care differs widely among hospitals. Over 50 million surgical procedures performed annually in the United States. Surgery accounts for about 40% of all physician and hospital spending. Researchers are trying to map how different providers communicate with one another.
- We have about 4000 hospitals just shy of 800,000 patients, about 700,000 physicians, about 15 million physician and patient encounters that we can use to make some kind of inferences. How these networks might be influential for organizational performance.
- Hospital systems where physicians have very cohesive ties that are conducive to information sharing and coordination have lower readmission rates, Ed visits and mortality. Cross specialty integration seems to have an association with lower cost care. How easy or hard is it to coordinate across specialty lines?
- The claims data don't differentiate between informal, formal and so on. I've been thinking about this more as informal structure because it's something that is influenced. What's reflected in those ties seems to also be reflected in informal patterns of communication.
- Team based medicine could be a good way to improve health care outcomes. But there is a downside to interprofessional rivalries and conflicts. And so thinking about how can you change the institution is something that needs a lot of consideration.

- William Ocasio is the John Kellogg Professor of Management and Organizations at the Kellogg School of Management. His research is on organizational politics, cognition, and culture with a specific focus on strategy, corporate governance, and organizational and institutional change. He says culture needs to be emphasized more in organizational design.
- Third point I wanted to make was about emergence, which relates to this notion in organization theory. The idea I would suggest in the mindset bringing together the formal and the informal. When you think about the organizational design, think about it from a more emergent perspective.
- How do we define organizational culture? What are the elements of culture? There is really no consensus about what those elements might be. Attention with respect to mindsets really shapes how people pay attention in organizations. The problem with the notion of shared value is that it has become just a PR statement.
- The final point I want to make has to do with when you talk about deciding culture and the elements of culture. It's important to talk about the processes that you need to make sure that that culture takes hold. And ultimately it's about reinforcing all those elements through communication.
- Will: What's the difference between behavior and interaction? Some people believe that you have to define culture as shared and some people don't. Cultures are distributed among people in the organization and there might be some differentiation instead of fragmentation. These three things are central to making Agile software development work.
- Thanks. There is an implicit assumption that it is good to build a strong culture. But of course we know that strong culture has both positive and negative consequences. Can we identify the conditions under which a strongculture is going to be good for certain purposes and under certain conditions and strong culture might lead to bad consequences?

- increasingly I hear concerns of, about and references to requisite organization as a cult. As soon as you have any identifier about the system you're using, you're in danger of it's becoming rigid. Managers need some understanding not only of the engineering templates, but also the science underneath it.

- I began to work on a country by country, project by project basis for Unilever about 15 or so years ago. That became what I contend is probably the largest social science experiment ever undertaken. I personally visited over 50 countries, worked in research in 50 of them over that period of time.
- 15% of the top 20 companies in this country are now using work levels. Unilever was the first, and I'll explain why they picked it up. The second major company, which was about five years ago, was Tesco. There is now a third multinational adopting the ideas.

- At least one, and perhaps more, propositions around how that organization might be redesigned. To be able to function against the strategy that's been described, you'll have to make a few assumptions. Are you comfortable with the team you've got right now or would you like it for this exercise to do one more?
- The heads of consumer business units are now reporting directly to the Chief Executive Officer. Instead of having seven management players, you now have five. The organization will be much more agile and will respond to changes much more quickly. There are three options that we can discuss about the chief risk person.
- Andre: What would be my five to ten year task as the head of HR? Andre: Create and implement a strategic system of managing talent talent. And design the agility into the organizational change. Can I write up that role description now?
- Ronald: The cross functional is so critical in this stuff. Recognize the difference between business analytics and big data. If you also don't have governance, you aren't going to be successful. This is fundamental to ensuring the integration across the company.
- We decided to do away with chief operating officer role and combine the businesses. As we stepped through, we saw a lot of inefficiency within the structure. So where possible we've tidied that up. CFO remains as a direct report.
- In terms of a Stratum Six organization, most business units come together at five. Historically, six has been thought of as a little bit unstable. But it is possible to have cross functional accountabilities and authorities at work.

- The Jackson approach rests on ideas of human nature and decency of approach to human beings. It's a reflection of the natural structures and changes in human abilities. People are changing, they're developing, and it's your job to help them develop.

- The most basic language system was a very concrete one. Every word relates concretely to something, to an action. At the highest level, understanding as a mode of communication. Once you've articulated a purpose, the next thing you have to do is communicate it.
- At the top, the work is artistic work, which at the first all levels is image, and then recycles down the bottom to making. Do they work in organizations? Well, that's a separate issue, right?

- Asaf Asaf is going to be talking about NASA and then after that we're going to have Art Hoffman from Dropbox. I will focus specifically around that. How the coevolution of things that are in the microfarations of culture. And the design and redesign of the innovation process.
- Over 3000 people from 30 countries participated in trying to solve 14 problems. The nature of the process is very different temporarily and spatially. Four out of the 14 challenging problems were solved in just three months.
- You are the solution seeker. Let's think of ourselves differently. And in the paper I go deep into this transition from problem solvers to solution seekers. I showed the connection between how the professional identity work took place, the knowledge boundaries, and in the end, where the locus of innovation resides.
- It goes deep to the training of the scientists and engineers. Many organizations are now trying to change it and make this so that if they bring something from outside in, the people inside get some kudos. So this is for the future, but basically this is it.
- Gene Crant: Like a lot of companies the last handful of years, we focused a lot on change management. Part of that is dealing with resistance to change. Sometimes the folks that have achieved the most in the current system are the most resistant to finding a new system. Many managers are trying to make it so that it comes much more bottom up.
- Ken Shepard: From an organization design, it occurs to me that you need to do this model, perhaps fewer people, different talents at a higher level of complexity. Some people disinterpret it. You need less people now. You can do less. But some people actually thought, I can do more with the same thing.

- I'd like to shift a bit to talk about grouping of work. The starting points are understanding the strategy and then also understanding the work. How do you make choices around what a primary way of organizing is and what secondary or tertiary ways of organizing are?
- In terms of a synthesis with J Galgraith's Matrix work, he puts a lot of focus on Racy. The A for accountability or authority is often not well defined in that model. Could I add to that, please? A client introduced us to a construct that is much more useful.
- Advising is really a way of informing. Monitoring and coordinating is the authority to persuade, but not override. Auditing and prescribing is instructing someone who's not your subordinate. There's no such thing as a group decision. Requisite really helps them get the picture around.
- Use the extant chart that you've been using. Take a look at the grouping of work based on what we've been talking about in terms of the functional and cross functional pieces. In 20 minutes, we'll check back with you.
- We will essentially put the consumer banking and business banking group together. It's a natural progression for the client from a commercial to corporate banking space. And the case of the wealth and the investment banking, put them back together again.
- The bank is schizophrenic. It's organized by multitude right now. Products, geography services, functions, et cetera, completely be cleaned up. The only other thing is supporting cross functional roles versus the key drivers. Let me turn it back to Paul.

- Our next session, excuse me, is designing Governance Ecosystems and interorganizational relationships for creating value and innovations. All about thinking about design in terms of improving performance. Our first speaker will be Carlos Baldwin, a William L. White professor of Business Administration at the Harvard Business School.
- Most productive work is done within transaction free zones. You need governance within each zone and across the zones. Here is a list of some possible modes of governance. From corporate governance to platform and contest governance.
- All parts need to interoperate on the basis of shared code. High rates of potential improvement in components, but the improvement requires trial and error, experimentation and learning. A modular design for external experiments is a platform business ecosystem.
- Carlos: Have you thought about parallel processing? First you have to find it. Once you find it, then parallelization is one of the ways of expanding capacity. But it's all a question. Both the modular recombinant systems and the sequential production systems are very complex.
- The attractor is fantastic amounts of cash flow to these more efficient organizations. If you can get more modules and more experiments per module, there is an incredible value proposition there that will drive out less modular, less experimentally friendly alternatives.
- In the new game it's not all or nothing, it's module by module. Are big integrated firms good at separating problems? No. It doesn't come naturally. But it's a place where you can imagine a large firm with some of the properties of large firms becoming quite good.

- Herb Kopowitz: I'm a management consultant. My organization is called Terra Firma Management Consulting. I work primarily in the areas of organizational structure, staffing and management practices. His real engagement with Requisite Organization began in 1990.

- Hank is a professor of strategic management and business policy at the Rotterdam School of Management. He has published extensively on strategic renewal, co evolution and new organizational forms. We talked about organization designing organizational culture and designing ecosystem. Designing or redesigning business models.
- Business model replication is more levering business model components and their interdependency. Another organization design strategy regarding business model is what I would call business model renewal. But it's mainly a replication of the existing business model with low speed or high disruption.
- Study finds that replication doesn't pay off in very dynamic environments. But we found some peculiar findings regarding the effect of business model renewal on performance. The idea could be that in highly dynamic environments, firms keep on trying to come up with fundamentally new business models.
- The fascinating part as you suggested is it doesn't go down on that chart. Is there a possible sample bias in the sense that you look maybe at successful firms and by successful I mean the ones that are still alive? All theories are bound.
- New business models require often a significant change in organization culture, especially a change from being a product company to a services company. I think design field could really have an added value in the field on business model innovation.
- Some sectors of our community are using the phrase organizational architecture, which is broader than what we usually think of as design. I think this is really very interesting stuff. You made my day. Ha.

- What's been your most valuable learning so far? And is there a key question that you still have? That's kind of a real lingering question. We'll do a little polling around.
- It's not about the complexity of the task, it's about the complex of the role. I found it very interesting how quickly people looking at those role specifications without a lot of experience with time spanner levels. When you guys get together to do the designs, because it is like a puzzle.
- Lyn: Is it really clear distinction between the role and the person or maybe less? For the other roles we always interview like the manager about the subordinate role and for the CEO. If you have a need to talk to the CEO, push for the need. Lyn: Don't be shy to act.
- In 90% of the responses to that question, the one that's mentioned the most often is, boy, I would certainly like to have more role clarity. What's required is just a lot more work on helping people get more clarity of role control vertically and laterally.
- CEOs don't seem to pay a lot of attention to structure necessarily. Board should insist that CEOs are accountable for designing effective organizations. Research shows that it produces significant results. But the ability of a board to prescribe the implementation of Ro is shaking.
- All right. We've got to move on. To the section on. Three tier managerial leadership.

- The session was originally meant to be Chuck Snow's teaching. It includes a session on design thinking and processes. But for me it's kind of packed on change management. It's important to recognize what the world includes when they teach organizational design.
- Greg Joffey: I think design thinking is a fabulous approach for some problems in business, but I don't think it's a great solution for all of the design components. He breaks down which parts I think it works for and which parts it doesn't.
- Steve, I wonder about how much scale matters. And it comes more from the industrial design world. analytic design, given its opportunity, given the chance, kills designerly design with the death of 1000 cuts. I think it's very difficult to manage those things.
- Design thinking is what is done by architects and it's more the analytic organizational design that's done by the engineering. But it's often sequential, but it doesn't have to be out there in design world. And I think it's useful to have it be loopy.
- In some ways in design thinking per se, with the emphasis on empathy and user driven design criteria, we do a lot of the problem space analysis through users. But in any business organization there are many different kinds of criteria. Design thinking would try and get us to find higher order solutions.
- From a manager's perspective, design thinking is really useful as strategic thinking tools. Where I find it's less useful is the actual analytics side of then having to say right at the end of the day. It could be used really well in strategy.

- Organizational design has experienced a lot of interest in recent years. Up to 20% to 25% of the variance in an organization's performance can be attributed to the organization design. The PDW will examine key aspects of organization design and how should be taught.
- The session is design thinking. Concepts and processes. The chairman of that is Steve, and the first presenter is Steve Ram. We hope we have a good session, a lot of great discussions.

- The main work initially at Brunel and I was in virtually practically at the beginning was in the hospital service. We came to see that hospital organization is just not like industrial organization. We got some interesting new material on multidisciplinary team work. This is one of the richest areas in the social welfare field.

- Mark Kaminsky introduced himself while we were in labor negotiations as our new plant manager. From that day on we developed a really good relationship. My life changed the day I met Mark. It's been a journey for me and the journey continues.
- I first walked on the Lewis Port site in 1987 and had walked out of Logan Aluminum. We met at the negotiating table. We ended up having a ten week strike. Together we made all the people's lives a little bit better. It was a great journey. He helped change my life.
- Bob Greene was appointed CEO of Kamalco in November of 1990. In April 1991, the company lost $6 million in one month. Greene came up with a plan to change the situation. He says an attitude changed and the company thrived.

- Harry Levinson was a giant in the field of leadership. He created what is generally accepted modern knowledge about enlightened leadership. His relationship with Elliot Jacks gradually became more and more strained. I regret that the direction that the institute has taken has not been as exciting for him.
- At the core of what we do, in my book, Accountability, Leadership, at the core, it is 90% Elliot Jacks. He managed to offend just about every legitimate management academician other than Jerry Harvey. The reality is they just don't know what he stands for.

- In a world where data becoming increasingly important, how does the current structure support that? The real principle is what's the work? And then you organize around the work and then you put the people in work. Have the numbers of layers of management match the levels of work?
- The ideal way to get the success is to give that leader more of what he or she needs inside that unit to drive that. Decision as to whether some of that stuff stays in that business unit or not to the business unit leader. Are those units over on the left are they standalone P L business units?
- So that becomes then the question of the whole classic design stuff around shared services. Do you resolve the level of work layers first or do you resolve structure first? I think what I said earlier is kind of iterative exercise more than anything.
- The structure that's currently set up is putting risk and regulatory requirements ahead of innovation. Last group, we thought they were structurally not set up at all to do the innovation thing that they were talking about.
- When there's more service areas than line areas, you have to wonder whether you're serious about your line area. Depending on how those service organizations align themselves to those things. It really depends on, as you say, in your case, you got more of them.
- We're just a little bit over our time, but that's okay. As we move into a diagnostic phase, it's kind of taking this exercise and moving it into what are we going to look at. The answers we'll get depend on the questions we're going to ask. So we have to be really careful about what we close.

- It was started in 1979 with CRA, a company of 22,000 people. Has this been done before somebody else? Ben. Wasn't it in Australia? Results are on the public record. A lot of the results were totally unexpected.

- Richard Brown is the eldest son of Wilfred Brown. Has been involved in personnel and HR for some 35 years. Not currently in a full HR role, but doing interim work. His father's work influences every part of the work that he's doing.
- Elliot always maintained a professional distance between himself and my father. He was employed in Glacier by the Works Council, not by the company itself. This enabled him to have some independence of his. Own. But there was also intense, personal clashes, but differences of opinion.
- When he became Managing Director of Joint Manager of Glacier in the late 30s, he was only 27 years old. In that same year he established the works council within Glacier. He was a committed socialist, a member of the Labour Party. His diary gives insight into the pressures he was under by his subordinates.

- Scott Hine is Executive Director, Strategic Initiatives at Novus International. His role includes a large corporate infrastructure project. He also manages non financial internal audits. How is this different from where he worked before with respect to exercising his full capability?

- I am going to introduce the concept of individual capability. This is our icon for that. There's a broader picture that Sheila will be getting to a little bit later. So she's going to be talking about this icon.
- The next section is purpose. I'm going to assign you a set of scenarios and you are going to prepare a presentation. Your role is to comment on what you see as the problem. Then we'll have you present out your solutions.
- The problem is not level of work and it's not their values, it's their knowledge, skills and experience. The actions would be to upskill or to give that training, learning and development. That's the thing we need to develop it's high values.
- Skills are those things that you develop a capacity, a pattern to do. This person is an ideal role to develop knowledge, skills and get experience. The only issue is the manager would be making sure that in their coaching plan and development plan, they are monitoring it.
- Scenario three: Two levels at level two and two levels at levels three. Lack of leadership for people. Relationship issues might be there for people at the level three B level. recommendation was probably to flatten the organization.
- We are wrapping up our Individual capability section. One little mismatch isn't one little mismatch, it has a 360 effect. Thank you for your engagement. And I want to turn the floor over to Sheila.