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- The accountability of the human resources department is to lead the education effort in conjunction with the managers. It also must provide the appropriate level of internal consulting when the problems come up. It is not a human resources. This is managerial work.
- Terry: You have to educate the managers while you're also educating the human resources people. He says at least half of his staff was completely trained in understanding about task assignment. And that's hard for human resources in the United States, he says.
- HR people really get an interesting challenge in this. It's not their problem to fix managerially. They don't have the accountability for it. Requisite is a total management system. HR should try and be the internal consultant. It takes five years to do these kinds of implementations.

- In a time of economic crisis, there are many more roles that are compressed. Pressure also has an effect on the level of complexity of a roll versus time span. Two data always better than one. Three data are better than two. The more data, the better.
- Time span and strata to me, seem like a scientific truth. One of the things that I do when I'm teaching requisite organization is timestamp interviews. It's only when you get engaged in that detailed level of question that you start understanding both what the work in the role is.
- The reason why things move faster and faster is because of automation. What automation does is also simplify the doing of a task. Skills, knowledge, automation it lowers the need for judgment in many cases.
- Time span is something I have learned to teach with preemptive clarification. It's not how long does the thing typically take, it's how long is the manager intended to take. There's a real difference between not working well on the task.

- 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? There's no way to thank him for the income he has given up. It could only be a volunteer's passion and he was driven by that.

- Program is real an introduction to design and management of organizations. Two days of training followed by a symposium of senior executives. Focus of face to face learning is going to be on implementation.

- HR has to be a lead on the management team in aligning the organization with Requisite practices. Everything you do needs to be put through this little filter called the trust filter. Your organization structure must be designed properly and you must have the right people for the roles.

- Session is about Ro and HR. Until we've got a way of making the HR community winners in an Ro implementation, we haven't got the right thing. And so that's what I'm hoping we'll do this morning.
- There's kind of generalist HR work that goes on. And then there's the classic specialist work, and not untypical. HR really is a professional, small, p professional organization. A lot of that work does stop at level three, including Law Madame.
- Sometimes what will happen is the specialist work can sometimes take over. You often feel sometimes that HR is overemphasizing. Where do you need to be on that scale in terms of balancing those works?
- Core is more than willing and happy to have you use this. If any of this is helpful at all to you, you may use it. Depends upon what we're held accountable to. This should be a helpful tool to do a little gauging of yourself against it.
- Clement: HR hasn't done a good enough job of communicating the value of human resources. He says we need more people in HR who are more oriented to being an architect of the work system. Clement: What's pushing that shift is CEOs, like the CEOs we heard yesterday.
- Sheila, I think I just want to make a comment in terms of HR credibility. Mutual trust and fairness, which I think from an HR professional perspective at any manager and any employee is what we're looking for. The evidence based principles use that to design an integrated set of systems.

- Of AMG Consulting. Main focus of her firm is to help companies grow and transform their organizations into healthier systems. She's a very good, clear thinker. Always a little unsure of her English.
- How can Ro help companies grow sustainably in emerging markets? We would like to share with you an integrated transformation model that we have developed based on our 25 years of experience in the field. Our challenge is make CEOs and executives feel the same passion for Ro principles as we do.
- The model has four main parts and these parts represent the organizational system itself. They are the value strategy structure and capability, culture and value delivering. Any disconnection between its parts implies loss of efficiency and value destruction.
- The culture piece when someone calls me in and says I'd like you to come in because we need an accountability culture. What determines the behavior is are your beliefs, not your rational understanding. If you capture that part, you can never make a difference in a system because it's a human system.
- We are actively involved in define two things here the vision, mission and values of the company. The other important piece in this moment is the value strategy definition. If we don't have this in place, it's very difficult to execute the strategy. The next step is to create the conditions, to change behaviors and to gain support.
- When people feel afraid because of a changing situation, they need to recover the sense of security. We teach them how to have dialogues that allow them to redefine the meaning of things. They desire so much to reach that vision and to add value. In doing that, all the energy released and is applied.

- For the first time, the Society has decided to institute a Lifetime Achievement Award. Ken Craddock has developed and written six editions of the Requisite Organization Annotated Bibliography. We congratulate and thank him for that work and George Weber will make the presentation.
- Kenneth Craddock awarded Lifetime Achievement Award for 20 years of achievement in management science and organization design. Craddock put together a blog with about five movies on it which you can get at the website. It's also intended to help consultants, because underneath your golden tongues you now have research you can cite.
- Ken craddock's work shows links between reckless organization and other so called popular theories of management. He has agreed to take his feet down off the Otoman and will continue to support research by academics and graduate students. He will also help improve the website.

- So I'd like to introduce Ian Stone from the Auto Club of Southern Australia. You must have a tolerance and also be very motivated to withstand the physical trip of coming here for a very short time with us. We can't wait to hear your story.
- We bought the other 50% of our insurance company. Put in a new It system for insurance and we put an Ro structure in that project. Another $14 million project to put all our other products onto that same system. What we need now is more innovation, more innovators in our business.
- Only two or three of your board members have been tested to see where their capability is. The risk we run is that it opens us up to small special interest groups running candidates. We're doing work with our board to how do we let our members know that we are very complex organization.
- The chairman actually does my direct reports for the level fours and for the same reasons. I think it's really good for my general managers to be able to tell the board that they want my job. Once a year with the board, I give them my views on where we are from a talent point of view.
- On the manager once removed concept and the board. On looking at how do you make things more sustainable. By involving boards in understanding this. Most do understand and appreciate and really believe in the Ro processes.
- Ian would have shot a few people quicker and I would have because culturally no one had ever been sacked at RAA. Trust your instincts. When you got rid of bad performers, they rewarded you because they were happier.

- Glenn: I'm going to talk quickly here about global talent management. The system has been derived in work with clients over about six or seven years. It tries to answer questions for people in the organization. Here's who are my business unit heads coming from in seven years?
- The compensation module is a part of the decision making process. It's got salary, short term incentives and long term incentives. The idea is it's all together in the package so that managers can do their job.

- Methods that have been described so far are probably very accurate ways to make inferences about someone's potential. The question then is, when you're trying to help an organization implement consistently and across the entire organization a methodology for evaluating current and future potential, what methodology should you use?
- The value of assessing current potential, future. If you want managers to develop their people, managers need to accurately diagnose why they're not as effective as they could be. Getting managers to go through the process of doing this then. Helps them identify the source of the gap between potential effectiveness and demonstrated effectiveness.
- Managers are not able to accurately judge people's current potential until they build in a. very hard, personal way, a mental model. About what these levels of role complexity are really about. Without developing this model, asking managers to assess the potential of their people is far less useful.
- The objective. Is to get managers to feel in. their bones how these different roles are different from each other. We developed software originally based on Access now on SQL Server using Visual Basic and out Visual Studio. First time out is about 85% accurate in terms of what they eventually arrive.
- We have a four by four model that we define a role by its size, level, role complexity, by the types. Of work inherent in the role. This allows managers to further refine their judgments and improve the accuracy of the judgments. The software works as well with CEOs of Fortune 100 companies as it does with first line shop managers.
- What's the question? Very simple. How big a role do you believe this person could handle? And it's an iterative discussion. You end up with your pipelines of potential. The medium level of effectiveness of the employees in the business should even correlate very closely with their actual business.

- At this point. we could approach the founder entrepreneur's work or on the other we could start to analyze the kind of organization which arises which appears. We're going to try to move along both of these paths simultaneously. Let's take a look at this diagram that will help us to understand first of all, how the mind of people who have created the business work.
- Every owner founder has somewhere in his mind what we have called the four dimensions of the founder owner role. These are the complexity of mental processing, the value and commitment to the task and one's skilled knowledge. The fourth dimension refers to organization, coordination, motivation and leadership.
- To the owner founder's eyes the organization is invisible. The creation of more levels is something which only makes the enterprise's organization weaker. Requisite organization helps the founder businessman and provides his enterprise with stability and possibly growth.
- In small organizations the visible working capacity is not well represented by the person's available current capacity. By understanding these three different capacity values, the businessman and his organization can be taken to a level of development that is above and beyond the founder's own capacity.

- You could look at Brown's career in the end as a magnificent failure for a couple of reasons. He believed the institutions they had embedded in Glacier would outlive. The things over the years fell apart. It's a kind of a sad but fitting end to the tale.
- There's nobody in this conference who is extremely bright, and frankly, I don't think we'd be here unless we've been decently parented. What's the Ro value proposition like? To me, it's something like nobody will have any wriggle room. Most the thinking I've been doing is thinking about how to come to market obliquely.

- Currently I'm a management consultant but my first career was in the not for profit sector. I spent 20 years with the Canadian Red Cross Society doing all manner of jobs. It does show you some of the perils of working in the Not for Profit sector.
- Juden: I've approached it through different levels of different modes of thinking. What I have been working on is the communication implications of different ways of thinking, so that people can readily accept that. People at five and above don't want to introduce too much tight order.
- The challenges I've had in this area have had more to do with role relationships and accountability discussions than they have explicitly with levels. Unless you make explicit that there is a theory underpinning these relationships, it's very hard to explain to people why the logic should be apparent.
- Alan says hierarchy only works if it is a common belief system and value system. A model based on attractor patterns from complexity theory explains why there are levels of organization. The New Zealand AIDS Foundation has signed into a contractual relationship which clarifies those issues.
- The idea of a quintave is not a surprising concept. If we think about GE, and of course here there is a real debate between the European and the BIOS model. There's a difference in perception of what happens at senior levels. Culture is largely how we don't do things around here.
- Both models will be up on the website and anything you want to tell me about them or ask about it or improve critique, I would be really delighted. What I'm hoping, and this is my fantasy hope, is that I've actually found the core engine from which we can now elaborate any level's model.

- If you do serious consultancy work, you're always working through long term partnerships. Ken wants me to pick up some of these stories. It's not the only great collaboration, but we all do this, I think, when it works really well.
- The Germans began to get the hang of industrial democracy in the middle of the 19th century. They cottoned onto the idea that once your firms begin to get as big as talent, then you need formal structures of representation. But the English have not yet caught up.
- Professor Harry Franklin was professor of Philosophy at Princeton. He wrote a paper many years ago and it's called On Bullish. What is the difference between hot air out and out lying? If you're telling a lie, you are deliberately deceiving.

- With Login, you'll have access to many more materials than have ever been revealed to you just as a public user. Your search function will turn up new materials that you'll be able to view videos and download PowerPoints without cost. Hope you have a great experience.

- Novus has an annual process of reviewing roles, structure, and talent pool. At Novus, everything is about business strategy. We have quarterly communications meeting meetings where the CEO and the executive leadership teams provide updates on our strategy.
- I want to thank Maria for her excellent overview of our process and also her attention with the organization. First time that we've actually taken the prep process down to our lowest level of leaders. Together, we are challenged by a few things in our growth. And also we're challenged in markets where the competitive external market works differently.
- How do we deal with markets like Asia, for example, when the talent tends to look externally to title and promotion. How do we equilibrate across the organization our sales structure? This is a significant challenge for us.
- There is a lot of pressure and compression at the three level, both in terms of cost containment for the organization as well as external. The career path issue exists across functions and is an issue that we need to address as we grow.
- Can you remind us of the other question and see if there are questions to clarify that before we break? The other question is how do I address or how does Novus address traditional career pathing that happens in the marketplace? That is, more time and place in promotion.
- Novus has a unique opportunity to use the Internet and Skype. Set up a monitoring of the relationship between your Novus person and the key strategic customer. Monitoring the relationship will give you a leading indicator.

- Barry and Sheila Dean have developed a tool that helps managers do their work. It's a form of subversion influence. What we found is that our clients have picked it up and started using it. For every business system there's a workaround.
- We use a tool that we developed for ourselves as an engagement tool. The purpose is how to engage the manager to help guide them through some questions. What they enjoy is the hands on nature of it. This is something you'll use over time and your judgment sharpens over time.
- Each person in their team is offered only if they've got evidence based judgments to make, a contribution to make. It gives them an opportunity to have a good discussion with the manager if need be. Eventually, if they look at it every three months, it's a 1 hour session.
- About four companies so far have dropped caught onto it. The number of managers who are using it is more relevant. How many? Oh, a couple of hundred. Probably several hundred. Other questions.
- The CAC measure is a performance judgment by the manager. The complete capability profile is made up of the story knowledge, Skills, Experience, Values, Preference and Inhibitors. deficits in knowledge, skills and Experience will lower the level at which a person's working.

- Don and I have been friends and colleagues on working on major projects at Tembec over many years. He is working with clients, developed talent management software. Now doing systematic assessments in a major company leading to good talent pool management.
- Talent management focuses on development of the person, really. In terms of development, is helping the individual manage the turns. In some companies, particularly the technical companies, the problem often is that they're not very good at handling the subordinate relationship.
- I would say it's been a mixed success. Some executives have grabbed it and used it very effectively, and others have not felt they were able to do it. I think any supports we can put into the Mor process, the better off we are.
- As companies get bigger, their tendency is to do more paperwork and more and more reports. Graham: Are we trying to replicate with our managers what we did with our kids? The whole problem boils down to whether we've got work that being done at the right level.

- Our presentation at this point is from Capital Power. I'd like to introduce Scott Bratley. Scott is a Director of Human Resources who was really integral in terms of the whole implementation process. If people have questions, certainly Peter here is a fount of information. But Scott also has good firsthand information.
- The report was really the foundation and the tool we use to demerge the organization. Without it, we would have had a very difficult time spinning off the power industry into the IPO. It was a very excellent resource and allowed us to really build two organizations.
- Peter O'Brien: How we split up the organization in terms of the people and aligning the teams. We used the various information we got out of the organizational design. We engaged the people in the decision once we split the teams up. Would you rather stay in EPCOR or Capital Power?
- Peter, could you also talk about the time press? Because this IPO was coming out, a lot had to be done in a relatively short period of time to get things aligned before the IPO hit the street. And then actually you also spent some time in terms of team building with the new teams.
- The real success in my mind is using the Cross Functional accountabilities. We were a little confused among the various parts of the organization on what their accountabilities were. The other area that has really been a real win for us as an organization is the whole business planning review process.
- Peter Sam: That was our cross functional accountabilities meeting and step back on that. You got to be careful when you're even doing crossfunctional accountabilities. You don't do it in silos. One more question please.

- So individual assessments, we'll start with calibration sessions. I'm still curious about how many of you use the description of the nature of work versus time span. How does this influence trust and fairness in the organization?
- Research Needs I am usually again, working as a wholesale consultant under the umbrella of another consultant. One of the things I would love to see is the clients who use us for this type of work, if we could gather data and then go back and see who they hired. We're pushing one of our clients to get there.
- The best anecdotal evidence we have around accuracy of pre hire judgments versus on the job performance is. And then that leads me back to this comment around serial connections. I have personally tightened up a little bit in what I'm allowing as a serial connection.
- My next question to Elliot would be, why did you name that fourth structure parallel processing? For a long time I had that word stuck in my head. I've come up with some ideas around what I call mode glare and mode drag.
- The highest and best use of the controller role is supervisory. At three, you can flat out ask people for things and if they're not there, they won't give it to you. You won't hear the true recognition of the trade offs in the balancing unless they're at four.
- Michelle: Do you think there's a correlation between what your capability needs to be in order to assess high level of capability? Don: There's probably a minimum mode that's necessary. When you get two levels higher, it starts to get fuzzy.

- A client of ours asked Dr. Tim Murray to help them achieve strategic alignment at the top of their organization. Murray used a Japanese methodology called Hoshin Canri. Canri means shining destination. As you listen to the story, I want you to contextualize the story with the filter of what's next?
- There are four dimensions strategy, structure, culture and processes. Sometimes the disconnection is between the essence and the form. We need to have a long term project clearly defined and sincere and honest. It demands to reinvent completely the way the organization has to work.
- Elliot Jacks was the one who coined the culture of the factory. He disowned that method. His method is highly rational. Asusena has reincorporated the need for this look.
- "We wanted to get both before you in this important link between strategy and structure. Integration between what Asusena has said and what Mickey is asking I think is very helpful " The next part is now looking at tying the strategy to the lateral processes.
- We'd like to get some input from those of you who have had this experience and how you've linked the vertical more requisite analysis with the lateral. Have you worked with theory of constraints in your organization?
- I've been deliberately visiting different professional associations in this field and looking at where to integrate the vertical and the lateral. I would love to invite them as special guests here to examine the potential synergies. The more proactive chance is to market with some kind of integrated approach.

- You cannot do a diagnosis until you have a theory of what's right and what's wrong. Valuing, requisite design, talent, pull, strength. There is a norm built into what we're doing. It's my argument that we should start to develop norms.
- I want to talk a little bit about ways that we might measure is a bad word. No, actually measures a good word. I'm using it incorrectly that we may assess or count characteristics of organizations. Numbers are reasonable. They're in the ballpark of what other people are seeing.
- organizations exist for a purpose. The strategy necessitates that we turn it into some kind of design. We have two points talent capability and work volume. In looking at 20 some businesses, surplus went everywhere from a negative 6% to a positive double.
- In manufacturing, you're always using variance reporting. Judge capability over work volume. What happens when you start moving organization around. It's trying to give us a gross idea of where they stand from an organizational soundness.
- This is not measuring requisite, this is measuring workload and capabilities. It has something to say about where you stand now relative to your ability to move toward a requisite structure. If you're talking about three business units, there's going to be differences.
- This is an indicator, and it's a nice number in and of itself. What we need to do is start to tie it to other numbers, success criteria. Is it another way to possibly describe it like a scorecard? Well, it could be.

- Our company, Chemical Corporation, is headquartered in Saskatoon. We're involved in the mining business, mining of uranium and in producing nuclear fuel for electricity producers around the world. 2007 and eight were very challenging years for CAMICO. We've applied accountability based principles to deal with some of these challenges.

- First off, thanks to everyone for the opportunity to spend a little time with you today. What I wanted to do was just go back a little bit and aim some comments, particularly at those of you who are working at considering adopting these principles. It's a big step, it's an important step.
- Don. Smith: When you put up surveillance in an organization, make sure that you're prepared for what you might see. The assessment process is a little like that, he says. It really exposed some of the issues that we had with structure, with gaps in the structure.
- Graham was a high performance work system. High performance work systems are characterized by transformational leadership. There was a lot of value placed on all the jobs in the organization. You have to remind them it's about a time span of discretion.
- The work was to really take that collective plotting of horsepower in the organization and to try to actually forecast capacity. SAP is pulling historical loading of people by capability level from previous projects. Just distance alone can create a layer of complexity technical requirements.
- One of the key things that we're working on is trying to ensure that we strike the right balance in helping individuals follow their own curve and helping the company meet its capability requirements. You also have to take care to manage your culture, because your culture can be overrun with too strong a feed from outside.
- Ro for us, has not been a project. It's been a mindset, almost a lifestyle. One of the things that happens when you run is everybody's focused on output, and you forget about the importance of management. The key final piece is and this is the piece that we haven't yet solved is the integration piece.