New sts workshop lowlands part 2 final

The NEW STS: Advances In Designing Healthy and Innovative Work Systems, Organizations and NetworksA workshop sponsored by STS/RT & USI

Part Two

The STS approach in the Lowlands:Mobilization Human Talent & Productivity

1

Geert van HootegemPrepared Mind Belgium

University of Leuven

Pierre van AmelsvoortST-Groep NetherlandsUniversity of Leuven

© 2013

1. History & Lessons Learned

2. Theoretical Frame: Interaction Network

3. Two sides of the same coin: Quality of working life = Mobilization of Human Talent & Quality of organizations

4. Concepts: Organisational regimes & Design Principles

5. HOW: Design rules & Change Process

Session Overview

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3

History – after Durham (‘60-’70)

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4

Work structuring and humanizing the workplace

Bottom up experiments with job design on department level

Ideological started by department head (pioneers)

Supported by academic action research

Focus on quality of working life (job satisfaction)

Despite success, lack of sustainability!

History – after Durham (‘60-’70)

Lack of SustainabilityLessons Learned: Lack of Diffusion

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Lessons Learned: Lack of Diffusion

• Lack of active support management and focus on short term success

• Isolated: limited design room

• Bottom up is not enough (neglected law of Newton)!

• Finite focus on quality of working life

• (Hidden) Resistance hierarchical levels and support staff

• Ideological clash ‘soft’ <> ‘hard’

• No strategic business need to fundamental change

• Limited theoretical back bone: try and error, depend on enthusiastic consultants

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Evolution of Sociotechnical SystemsThree Waves

Wave One: 1950’s-1970’s

Wave Three: 1990’s-Present

Wave Two: 1970’s-1990’s

Theoretical Foundations: Lowlands Approach

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Theoretical Foundations: Lowlands Approach

Prime = understanding, intervening & predicting organizational behavior

Ulbo de Sitter’s (1930-2010)Interaction network theory

W. Ross Ashby’s (1903-1972)Law of requisite variety(only variety beats variety)

Niklas Luhmann’s (1927-1998)Social system theory(complexity reduction)

De Sitter’s “toward new factories and offices” (1982):

-Jump job design to organization design-Ideological clash >> theoretical logic: fruitful dialogue and common language-Enrich ODevelopment theory (finite attention to develop human competence) with ODesign theory: OD2

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Social systems theory Social systems are systems of communication to

interact

Membership with formal expectations and arrangements

A system is defined by a boundary between itself and its (infinite complex and chaotic) environment

The internal system is selecting only limited amount of external information

The criterion for selection is meaning (sense making)

Social systems are autopoietically closed: Filtering and processing of external information, Selective in adapting! on what is considered meaningful and what is not

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Job satisfaction = quality of working life!

Age

30 35 40

Job

satis

facti

on +

-

70-80% are satisfied

Irrespective of culture, country, and job characteristics!

Satisfaction is an indicator for acceptance given working conditions

Subjective approach: All people share the same

basic needs? Acceptance of current

situation is not an easy start to change (readiness for change)

Discovery conflictexpetations and reality Acceptance reality

Switch from intrinsic to extrinsic motivation

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12

qualitycontrol

customer

family

work stationteamleader

work station

customer

customer planning

intersection

Work as an intersection of job demand and interaction

A dynamic, objective view

Human beings develops needs, motivation and orientation in interaction with his social environment

A balanced interaction network is also a productive network

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intersection

internal interactionpartners

externalinteractionpartners

F = family

F

Result of task division

Ideal situation: perfect balance (incl. work-life balance)and no waste All material, information

and means on the right place, quality and time

Match demand and limited means

No disturbance

Only one problem:Ideal situationdoesn’t exist:

interference

Working as an interaction network

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Job demand – job control (regulation) (Karasek)

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Real life networks interference (job demand) Uncertaincy Lack of (insufficient) material, information , right

people and means Unbalance demand and capacity Competitive, conflicting demands Changing demand Custom made demand Human errors Technical disturbance

Interference risk is a result of complexity

Job control to cope with interference: Productive work Active, challenging work

Job demand Job control

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Job demand need Job control

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Internal operational job control Task variety Authority-decision latitude Craftsmanship Access to flexible means Information Meaningful purpose, shared direction

External operational job control Coordination/deliberations Support team and community Appreciative feedback leader Natural feedback Influence

Strategic job control Participation & co-creation: design for reducing

interference risk and decrease inference sensibility Learning and continuous improvement

Job demand Job control

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Job

cont

rol

Job demandslow high

learning opportunitiesunder-loadedwork

challengingwork

over-loadedwork

boringwork

stress

risks

high

low

Low strainwork

challengingwork

High strainwork

Passive, boringwork

Quality of working life

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(Karasek)

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(illegal) Work arrounds

Buffers and hidden waste

Focus on self interest

Safety risks

Work-life imbalance

Early mental retirement

Bullwhip effect

Lack of Job Control

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11,5

4,5 7

low

high

Job demand

Job

cont

rol Passive

work

Low strain work

Active work

High strain

work

high

Quality of working life and absenteeism

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Regu

latio

n ca

paci

tylo

whi

gh

managing

directo

rproducti

on

manager

department h

ead

supervisor

foreman

operator

traditional utilisation of potential

unused potential

available potential


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Quality of working and healthy aging

MaltaDenmarkSwedenFinland

SloveniëAustria

United KingdomHungaryBelgium

LuxembourgNetherlands

GermanyIrelandCyprusEstland

RomaniaGreece

ItalieCzechia

SpainPortugal

PolandFrance

LithuaniaLatvia

SlovakiaBulgaria

Design and quality of organisation(al) health

organization

design

divisionexecuting tasks(PS)

separationexecute – control(CS)

complex interactionnetwork

need forcentral control &standards

highinterferencerisk

highinterferencesensibilityUnability to cope withinterference at the source

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Quality of organization

Busi

ness

dem

and

unce

rtai

ncy

Effective control(regulation)

Static centralcontrol

Dynamiclocal (distributed)control

Stressedorganisation

Organisedanarchy

Classicbureaucracy

Hig

h: c

usto

m

mad

eL o

w: r

epeti

tive

prod

uctio

n

Productive, humane

organisation

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Business demand as starting point

Efficiency Efficiency

Quality

+

Flexibility

+

FlexibilityFlexibility

Innovation+

ServiceSustainability+ Innovation

Quality Quality Quality

1960

1970

1980

1990

2000

Efficiency Efficiency

Efficiency

2010 War on talent+

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Price

BureaucraticRegime

Product variationlow high

Unc

erta

inty

low

high

Price +Quality

Quality drivenRegime

Price +Quality +Flexibility and time

FlexibleRegime

Price +Quality +Flexibility and time +Product / service innovation

NetworkRegime

In search

of the m

ost effective re

gime

labour market

policies

sustainability

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Interactionnetwork

culture people

structure systems

A whole system approach:Organisational regime

government

market technology

competitors

employerrepresentatives

trade unions

strategy

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Bureaucratic regime

Principle 1 SimplificationDivision of work processes into small taks

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Principle 2Separation of thinking and doing

Bureaucratic regime

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Principle 3Command and control tree

Bureaucratic regime

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customer

Financial management

People management

Informationmanagement

Risk management

Knowledgemanagement

Facilitair management

Operational management

Generalmanagement

Account management

Service management

HR management

Changemanagement

Stategicmanagement

Bureaucratic regime

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worksystem

Functional concentration of activities & central control illusion

Every department is confronted with total variety and lack of customer focus

Departmental focus on control utilization of means

Only at central level total overview and illusion of control

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Principle 4Control by strict rules and procedures

Sorry,It’s not on my work instructionYou must a 237/654/9B/654Mform sent to department 39

Bureaucratic regime

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Detailed rules & proceduresStrictly budget driven

Simple jobsNarrow tasksClosed supervision

Specialised tasksSeparate think - doCommand and controlCentral decision making

Focus on hierarchical authorityPower basedTop down

Structure Culture

Systems People

Bureaucratic regime

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Structure Culture

Systems People

Horizontal coordination and meetingsQuality Circles

On line process controlQuality circles

Less hierarchicalReduced power distance

Integration quality controlProblem solving skillsConsulting meetings

Quality driven regime

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Shifting business demands

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QualityE

vidence/Effect based

Cu

stom

mad

e

Costcutting

New lawsMarket driven

uncertaincyF

lexibilutyResponsibily riscmanagement

Innovation

speed

International competion

tech

nolo

gy

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Stressed organisation: Functional concentration of activities & central control illusion

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Effects……….

Moeizame communicatieSlow and high cost communication lines……..

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Effects……….

Complex workflows and a meetings, meetings………….Expensive overhead

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Complicated cooperation,Suboptimalisation

Effects……….

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Oh, no… they produced it as I designed it………

Effects……….

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Effects……….

Control illusion and fingerpointing with hidden elbow room and work arounds…….

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Silo’s: long troughput times

Effects……….

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Take away responsibiltiesand simple jobs

Powerlessness AlienationDistrustHelplessnessEarly mental retirement

Effects……….

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Bu

sin

es

s d

em

an

d

Effective control


Dynamiclocal control


Productive, humane

organisation

Organisedanarchy

Classicbureaucracy

hig

hlo

w

Stressed organisation

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Complex/lack of communication

Untransparent credits and cost

Isolated silo’s and hidden waste

Slow responsiveness and long throughput times

Risk avoiding culture and internal focus

High coordination cost (management)

Disconnection management and employees

Focus on exploitation & Neglect exploration and innovation

Unhealthy high strain work and work-life imbalance

45

Busi

ness

dem

and

Effective control


Dynamiclocal control


Productive, humane

organisation

Organisedanarchy

Classicbureaucracy

high

low

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1. Focus on first effectiveness second efficiency: added value2. Respect diversity and reduction of complexity:

a) Focus on custom families (product, market, technology combinations) in stead of task specialization (reduce variety subsystem)

b) Reduce number of transfer points (interference risk)3. Human scale:

a) Work teams 8 – 12b) Working communities 40c) Strategic units 200

4. Self organisation: Increase local control and support and healthy hierachy: horizontal coordination and reduce number of hierarchical layers (decrease interference sensibility) with specific added value

5. Minimal critical specification based on trust and craftsmanship6. Aligned systems (planning and control, HR practice,

technology)7. Result only work environment8. Human talent mobilization9. Direct democracy: Strategic participation/partnership and co-

creation

Design principles

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Mmmmmh… complexity… “sooo delicious!?”

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Focus on customer family, market & technology combination

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Reduced organisational complexity:Conditions for local control

The variety of the whole system stays the same.

Every unit is confronted with less variety and has customer focus: emotional connection and human feedback mechnanism

Departmental focus on control customer flow

Local overview and control

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Flexible regimeStructure Culture

Small units with awhole taskDecentralised controlSmall central control staffCross functional teams

SystemsJust in timeResult driven: mutualgoal settingFlexible workarrangements

Focus on business processManagement and staff:support and facilitateTrust based control

People

Multi skilledSelf managementTeamwork

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Network regime

Structure Culture

Mini companiesTemporarily structuresNetworkingStrategic partnering

Systems

Focus on time to market

People

Custom orientedpeople = business partnerStake holder involvement

Broad competencesHuman capitalEntrepreneursParticipation in strategic issues

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Customer focussed

Human talent isseen as businesscapital

High involvement

Partnership

Speeding up product

innovation process

Mini companiesTemporal structures

Networking

Price

Quality

Flexibility

Product innovation

Transformationprocess is leading

Managers and staffdept. have asupporting andfacilitating role

Multi-skilling

Teamwork

Self management

Just in time

Minimal specificationLocal differentiation

Result driven

Business line oriented

Small units with a whole taskand decentralised control

Price

Quality

Flexibility

CulturePeopleSystemsStructureBusiness

demands

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Culture

Focus on hierarchicalauthority

Power based:Command andcontrol

Less hierarchical

Reduced powerdistance

Transformationprocess is leading

Managers and staffdept. have asupporting andfacilitating role

Customer focussed

Human talent isseen as businesscapital

People

Narrow tasks

Simple and routinework

Integration ofquality control

Group meetingsQuality awareness

Multi-skilling

Teamwork

Self management

High involvement

Partnership

Systems

Detailed rules andprocedures

Budget driven

Quality circlesStatistical process

control

Just in time

Minimal specificationLocal differentiation

Result driven

Speeding up product

innovation process

Structure

Specialisation

Division of labour

Horizontal meetings

Business line oriented

Small units with a whole taskand decentralised control

Mini companiesTemporal structures

Networking

Business

demands

Price

Price

Quality

Hierarchy

Price

Quality

Flexibility

Price

Quality

Flexibility

Product innovation

Bridging the gap: example

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peop

le

cultu

re

stru

ctur

e

syst

ems

Ontwerpen & ontwikkelenGuiding principles & leadership

Strategic choices

Organisational behaviourviability productivity

involvement

Managem

ent of change

Conservating mechanism

An integral approach

Quality of organisation Quality of working relations


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Price

BureaucraticRegime

Product variationlow high

Unc

erta

inty

low

high

Price +Quality

Quality drivenRegime

Price +Quality +Flexibility and time

FlexibleRegime

Price +Quality +Flexibility and time +Product / service innovation

NetworkRegime

In search

of the m

ost effective re

gime

labour market

policies

sustainability

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Design sequence rules: PCS

From the w

hole

to the parts

+

macrostructure

macro structure

meso structure

microstructure

microstructure

mesostructure

‘pro

ducti

on’ s

truc

ture

Cont

rol s

truc

ture

From th

e parts

to th

e whole

(Info

rmati

on) s

yste

ms

Mission vision goals strategy guiding principles

Organisation design

1 2 3

4

5

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IVRealising

I(explore/

discovering)Diagnosing

Common Awareness

IIIDesigning

Co-creation Ownership

II (Imaging)

VisioningShared

Direction

DialogueSelf organisation

Co-creationEducation

Change as a non-lineair cycle process

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Characteristics of change process Every change process is unique

Mixed interventions Design teams Large scale conferences

Support self organization and co-creation In-company training and education Open education

Iterative approach Mix top down and bottom up Create a common vision, awareness and

readiness to change Strategic design: design team of key

positions with consultation whole system Operational design: (emergent) co-

creation of involved stakeholders

5959

1. What have you learned?

2. What is common with the traditional approach (part 1)

3. What are the differences?

4. Futher questions or remarks

Dialogue in small groups

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Original STS Lowlands Lowlands Approach

Context EfficiencyRepetitive manufacturingSurplus labor market

Efficiency, quality, flexibility, innovationCustom made (knowledge work)Future war on talent/ healthy aging; shortage labor market

Objective Humanization of work Business demand:Quality of working lifeQuality of organisation(al) healthQuality of working relations

Subject Job design (micro level) Organisation design and designing

Concepts Open Systems

Joint optimalisation social & technical system

Bottom up change

Design and change as a strategic competing (meaningful-sense making) factor

Division of labor: twin structure concept (production & control structure)

Education for self organization, co-creation,top-down and bottom-up

Summary

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New sts workshop lowlands part 2 final

Technology

Transcript of New sts workshop lowlands part 2 final