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- Requisite organization is not well known. How do people make sense of the work world, people outside of this room? It's about relationships. Every piece of requisite organization in itself is potentially analytically critical.

- Nancy: I met Nancy about ten years ago working in my organization doing training and development. I've been teaching them throughout our organization, through the organization that I recently left. And now it's reached thousands of managers. At its essence, it is about clarity, alignment and what I call rationality.
- So why do we do this? Because we want to define the individual tasks that must be done. And as Jerry said this morning, the accountability belongs to the role. Once the task is clear, then you're able to provide the effective feedback.
- When we're working individually with managers, we have an assessment instrument that has been designed. I have English copies, and we will get them in Spanish to help managers understand where they are as they approach this process. We have found it very useful in our practice of working with managers.
- We find that managerial practices, this is very useful for us as we're working with new managers. It's about performance management or the accountability and clarity, talent management or process improvement. And we are just starting in one of our organizations to begin to work with a group that is working particularly on these processes.

- At level four, you're able to do systems thinking. If you don't have a systems mind, you can't do it. 85% of the VP's HR holding a position supposedly at four couldn't do system thinking. How do you be strategic?
- A level three company operates at level three, a level four company and a level five. The only way to get that in is to convince the owner. There's not much in the literature to support hiring a full time HR person. It's unusual.
- HR is often designed too low. People don't want to spend the money. Who can you let go? HR people, they don't do anything right. That's who gets cut. The ROI in HR is not understood. This approach, how you change an organization, is primarily a structural. and systems approach.
- A level four Vphor has these four major ways of adding strategic value to the organization. This first one is really helping the team, designing, lifting the structure, the talent pool, and doing all the cross functional stuff. The CEO should say to them, work in a collegial way.
- The best way for someone at high level three, level four HR to learn about designing and managing organizations is to study requisite organization. Vphrs abandoned. Everything was organized for the twos and threes. We have a world conference here in Buenos Aires.
- Many of them know a lot about this. It's very unusual to go to a conference where people are at four and above and understand something like this. Jax is a way to what do you do it? You will learn to use them in a new way.

- Mark, what about you? Probably three specific progressive perspectives. New business model created and also needed work with the organization. In a period of about five years we improved productivity by about 150% major reductions to costs. We're in the early phases of implementation of the principles through our organizations.
- Research shows it takes three years for the results to pop out. The way you do business takes much longer to actually put in place and deliver on a sustainable basis. How do you save your results and hang on to them and then feed them out for a second year?
- You have to deliver results when you're making the changes, says Sam. Changes is just part of the change that may have to be introduced to improve business performance. Those contemplating change have to work on both sides of the street and do it in a well thought through way.

- City of Playford is in Adelaide, which is the capital city of South Australia. Transition of the organization from what is traditionally in local government, probably level four organizations to what we believe in is now more around level five organization.
- Playford is moving to the five levels of work. The company has two types of managers: people managers and technical specialists. But across the board it wasn't working particularly well. How do you set up your organization to deal with that?
- Playford took a level of management out of the organization. CEO Tim playford has the ability to get people on board. Despite this structure, which caused some pain, people kept working. It shows the importance of the human element.
- Now that we've got our structure in place, we're really trying to turn it on and get the best out of it in terms of looking at capability. It's one thing we find in common with our clients that sit in about the 200 up to 1500 sort of size. The challenge is what does the nature of that general management work look like?
- I used to work in another local government organization in our state. In playford it really is a genuine level four role which requires genuine level 4 work. Tim and I work really well together. The working relationship's working quite well.
- City of Playford could easily be a level four organization. CEO has grown his role to suit his level of capability. Would you encourage a government to develop a longer term plan like a 30 year plan? It depends on what that organization is facing.

- Ron Cappell was one of the founding group of the Society. He has been working independently for many years putting together data. He recently has put it all together with his methods in this book, Organizing Optimizing Organization Design.
- Vertical and functional alignment of positions. Functional alignment is related to strategy and just a comment here. I think the strategy piece linking strategy to functional alignment is not done as well in Ro as it is in some other approaches.
- Manager Direct Report Alignment is foundational to the relationship with the manager. 55% of the manager direct report alignments are correct, about 36 are compressed and about 9% are gaps. My sense is that the number correct is probably a bit overstated.
- Better alignment of accountabilities and authorities, employee, supervisor, manager, manager once removed. One of the things that we find particularly important is identifying the crossover point manager. People who should have those roles don't know they should have them and the work isn't done properly.
- The one thing that we've added, which is not cross functional, is recommend policies or standards to one's immediate manager. A combination of recommend and monitoring creates a small G governance. Better alignment of people. Current matching future requirements.
- Ron Brown: A lot of the operational improvement projects should be conceived and planned at three, and pieces of those get chunked off and given to roles at two. How do you reconcile that situation? Brown: It's hard to convince the CEO to do a full project at the outset, especially knowing how much it's going to cost.

- Now our next speaker is also in the healthcare area, and it's George Weber. Weber is a fully engaged, committed CEO who was once Secretary General of the International Red Cross. Also unusual in that he's worked with Ron Capelle as consultant in using RO in three organizations.
- George was the head of the Canadian Dental Association in 2000. This was a very different type of organization than the one he was in previously. Describes some of the challenges he faced coming in.
- George: Why did you decide to do something with the organization design and what did you see as some of the key success factors in that situation? The results were better staff satisfaction, the members were happier and we were on a better financial footing too, along the way.
- In 2008, George moved to the Royal Ottawa Healthcare Group. The organization was in crisis. It was the first P Three hospital to open in Canada. A lot of convincing had to be done to skeptical, very bright people. What did you see as some of the key success factors?
- We're a Stratum Five organization. We were able to move that trust factor, which is critical in terms of also putting an RO. We reduced employee absenteeism. And of course, dealing with cross functional relationships, again, fixing NEPA, but it's still a work in progress.
- Good point we need to wrap up. Ken's giving me the kind of get off the stage sign. Thank you very much for your attention and questions.

- Zandy Rein Sagan is the chief operating officer at San Antonio Federal Credit Union. She says it's important for managers to teach other people about Requisite principles. She has not seen Sandy's presentation, but is looking forward to hearing how it went.
- The company combined Requisite principles with project management principles. Everybody knew exactly what their role was and how it was different from their manager. It took two years to get the right people in the right roles. But the transformation finally clicked.
- Home banking, mobile Banking audio Response we had to build an Eservices team for that focus. Ultimately the self service channel is a business. We were so late with mobile banking because USAA is in our space. I really believe we wouldn't have been able to do what we needed to do if we weren't already modeling and living requisite.
- I'm not the CIO anymore. I actually run the whole direct business now. The future is about the technology aspect of our direct business. Our branches are way bigger than they need to be. People have to be comfortable with technology to use it.
- Headcount has stayed around 676, 80 throughout all of this. Most of the elimination of roles has been in the branches. We're gaining efficiency just through design. Employee camped amazingly through a lot of change. The assets are shrinking by design.
- Did you follow a global one like a PMI? And then did you leverage the PM tools more? Or did you also bring in the Ro tools like Qqtr and to roll that out?

- There'll always be two sides the workers and the bosses. There's a time and a place. Switch it on, Hamish.
- Mr. Black says senior staff are getting restive over holidays and pensions. Lack of a fully developed representative system means debates over differential conditions and wages between different sections and levels of staff can't happen. This leads to fragmented negotiations, leapfrogging claims and eventually real trouble.
- If representative boundaries cut across departmental boundaries, we're in a mess. A management must do what it can to help a representative system to work smoothly. Management is dependent on a smoothly working representative system for feedback of feeling and for negotiations.
- Negotiation will only take place at meetings between managers and representatives. Information which will affect the working conditions of large numbers of employees should be communicated by a manager personally to his extended command. I suggest we call the process of direct communication by managers contraction.
- The final point that should be made about representative systems. I'd regard any behavior of that kind as a bloody insult to shop stewards. With those simple rules enforce, there can't be negotiation.
- Next part four is on works councils. What would the EEC regulation? These films are based on the results of research carried out in the Glacier Metal Company Limited.

- There was a question earlier on about give a basic explanation of the different levels within requisite. It's a different level of work within the organization and it also helps you define work, but also it help you define capability. It is a foundation of requisite because it's also linked to time span.
- Every level is broken to three bands. Level one, two and three covers 70% of the work. The idea is you're going to follow a procedure. In my Padlet nuclear power plant, a maintainer, maintaining 17,000 different types of implementation. We're always expected to be fully trained.
- Work at level one is procedurally driven, prescriptive type of work. Level two work then goes from three months to twelve months divided into three to six to nine to twelve. Level four work is building pathways. This is where you have a multifunctional leader.
- Elliot: We define roles by looking what is the level of work the organization needs to be successful. From a human capability point of view, we look at the ability to be declarative, cumulative, serial parallel. This is where you start applying the whole idea of individual capability.
- The critical point this morning about task clarity is that you can establish clarity and tasks at every level of this. The verb clarification will really help you understand sometimes where the level of work is fitting in the organization as a task is being defined. The process at this level in particular can sometimes take almost a year.
- Supervisors basically mean you can use a different level of capability to get the work done. On shift work, instead of having a manager in every shift, sometimes you can have a supervisor. In defining the work, you really have to identify the work of the manager.

- We all need to know how well they're doing. It should be an ongoing the effectiveness appraisal should be something that's ongoing. You have to balance productivity with the judgment of the manager. Do it in the first place.

- The UN estimates that there are 1.2 billion people living on a dollar a day and a further 2 billion people live on $2 a day. The UN identified entrepreneurship as a prime vehicle for changing this in. For a project to be successful in combating poverty, it's got to be scalable, replicable and partnerships.
- For more than 50 years, the work of Elliot Jack has been used globally. His work has allowed us to predict how people's need for work challenges will change. The models could be applied in the fight against poverty. They seem to cut across gender.
- I want to talk to you about the purpose of this project. To identify young, successful micro entrepreneurs who've got the cognitive ability to grow their business into small or medium sized organizations. We need access to a talent pool and partnerships with an organization that teaches entrepreneurial skills.
- We have a unique opportunity here to combat poverty by dealing with the pipeline. But we need to do this in a partnership. I do need access to an entrepreneurial talent pool of young microcreditors. And thirdly, if you're a financial services institution who's interested and concerned and wants to lend money to help these young entrepreneurs.

- To thank this guy. Come to every conference signed on the board. Who would ever volunteer to be co chair of a conference in their own time? It could only be a volunteer's passion and he was driven by that. Now the society has some small token of appreciation to Harold.

- There are things that take time and there are processes that can be sped up. As an employee, I'm a VPHR in a stratified company. You want me to totally transform all of this in three years? I don't think it's possible.
- The Abilene Paradox is that people in groups will at times make a decision as a group. That's the exact opposite of what everyone in the group wants to do. The requisite practices you need to have managers.

- Coaching is your ability to identify what the needs of your staff are. Developing people for future roles is the work of the manager once removed. There are many things you can do as a manager to coach and build competency within your staff.

- We saw the Australian mining industry in competition with low wage countries such as Brazil or South Africa. We started by comparing ourselves with Canada and found there was a big opportunity for improvement. Key principles included having four authorities over all of his subordinates. Also a commitment to training people to improve their personal effectiveness.
- One of the ways of disseminating was running the General Managers Development Program. General managers were in charge of the various operating sites across the group. Debate raged over whether a supervisor was a manager and what was the first level of management in operating site. It was a year before everyone accepted that there wasn't a manager.
- It surprised me how difficult it was to get the manager once removed to take the accountability for the human development and promotion of the people who were his subordinates. Hammersley put out a graph this year showing the way in which their labor productivity had gone. They believe you can make five to 7% per annum systematic improvement as a result of handling the managerial effectiveness better.
- Thank you very much for giving us the opportunity to tell you a little about what we did. We hope that this conference leads on to a reexamination of Elliot's work and the way in which could be applied now.

- Samuel: Management is an engineering. An engineering is an art grounded in a science. When we're talking outside the realm of the Mah, we're saying this is a system of ideas developed for this context. Some of these ideas are useful outside.

- Elliot tracked a group of about 250 associates, people he had met over the years. He asked them to contact him each time they changed jobs. He drew what he called comfort curves. These curves have been used by dozens, at least dozens of consultants and hundreds of managers across the world.

- What is it that Shell rooted itself in to make this journey possible? To move from a wonderfully, well designed 1970s model to a 21st century model. Theories in which we could ground our thinking and ground our decision making. Theory right down to practice requisite organization, cognitive complexity and time span of horizon yields paycheck.

- A three level meeting is where you have your manager manager speaking to your roles. One of the key methods of communication within a records organization is to have these three level meetings. It's critically important in timing of change, critically that this kind of context is set.
- One on one meetings, for new managers in particular, should be planned. It's the manager's opportunity to get to know their staff. They should not be considered to be performance meetings. And they're a regular exchange of information.

- In Argentina you have in Balsay Cordova just a can do reactor. There's some Canadian technology in Argentina and I hear it's working fairly well. In 1995 Elliot Jackson implemented Requisite organization at Ontario Hydro. Requisite is still well embedded within the nuclear power industry in Ontario.
- A manager gets work done through others. One of the keys to this is managerial planning. If you can delegate all your activities, basically you're saying that your staff is capable. This is the work that a manager does to make your team successful.
- Communicate, communicate, communicate. Prime form, the most valued form of information that a worker has is their manager. There are purposes for meetings and you should, as manager, try and control those particular meetings.

- It's a great honor to be back in Argentina. My wife Cynthia and I spent a good part of four years here in the early ninety s. Argentina has been at the forefront of experimenting and applying the principles of requisite organization and organizational design.
- In developing requisite organization, Elliot Jacks created a leadership system that captures the basis of accountability and creativity simultaneously. How do we implement that strategy in a way that allows us to employ people creatively, but to maintain the control so that we can implement the strategy?
- Managers need to hold subordinates accountable for both for what they do and how well they do it. Employees earn their keep by making ambitious commitments in the first place. Earning one's keep means working at the level of effectiveness required of the role. This is where the economic value comes from our employees creative initiative.
- A culture of accountability has as a prerequisite the notion that consequences are appropriately applied. The consequences have to be fully aligned on the positive side, not just the negative side. All employees are accountable for keeping their word and earning their keep. Managers need to hold them accountable for doing so.
- Elliot Jacks discovered an underlying property of structure in all managerial systems across the world. He also developed an architectural set of principles about the different functions that are necessary to conduct business. He stressed the importance of having systems and understanding how systems need to work.
- Requisite organization allows for the translation of strategy into the right structures and processes. For diagnosing and mitigating both organizational gaps and talent gaps. Those who understand the value of requisite organization will find it personally very rewarding.

- Jerry Crane has put intellectual work in to give you a systems overview of Requisite design in less than an hour. He has responded to every request for him to contribute to the society. So I want to express thanks to Jerry.
- managers look at three things to identify their highly affected people. Who are the ones that don't hold back, don't play it safe and make ambitious commitments. And your go to people are also ones who understand the importance of working laterally.
- What does accountability look like in a company? The manager needs to be clear with people as to what they're accountable for. Manager is accountable for ensuring that each and every one of his or her subordinates are working within limits. What authorities do managers need to initiate removal from role?
- The automotive OEM industry is going to contract from 35 to three or four by the middle of the 21st century. Elliot's research clearly pointed to level five business units as the place where you need to align business functions. If you don't have technology, you're doomed.
- When people fail to adhere to defined boundaries, bad things will happen. I find the traffic light metaphor works beautifully. If we're going to develop policies, do it right and don't let people thumb their nose at it.
- Thank you for systematically selecting capability. For me, leadership has two components defining and setting direction. It's about leveraging the potential of all of your resources in order to achieve that direction. And then what ties it all together is leadership and the leadership system.

- I'm going to tell my story about implementing Requisite organization in India. What my story tells is about pragmatisms and making it work in practice. It's learning from these pain points that make us grow.
- Ericsson has had over 30% annual growth and gone from minus double digit operating income. Customers now ask to meet us where they didn't before. Great people hire great people. First you get the right people on the bus and then you decide where you're going to be driving that bus.
- People are okay to take sometimes even a smaller role. Everybody can intuitively feel the strength of your management team. Be honest to people, because straight feedback is basic human right. Strong general with a number of strong lieutenants will prevail.
- The social power of the CEO is one of most important things that we can do. If we can at least help some of those guys on on the Sunday afternoon to have 1020 percent, 30% higher feelings about what they're going to do on Monday morning, I think we're all doing a pretty good job.

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