stratified governance model v9.1 summary
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© Copyright Alkamind Consulting Alkamind Confidential 1
Stratified Governance
Model
Alf Rock1-416-574-5330alf@alkamind.com
Alkamind ConsultingAlkamind Consulting
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A core theme within the Stratified Governance Model is the evolution in organization where both Action and Thinking needs to be synchronized at ever level of the organization. The legacy of “industrial age” processes is that the thinking of workflow was separate from those performing the work.
alf@Alkamind.com
order
edge-of-order
edge-of-chaos
environmental complexity
Governance Layer 1 - Operational
Governance Layer 2 - Management
Adaptations to products and delivery mechanisms responded to conditions.
Changes to social & market place conditions offered up new opportunities.
Rigid ‘production line’ processes form to build and distribute value.
Marketing & sales campaigns persuade a culture of consumerism.
order
edge-of-order
edge-of-chaosenvironmental complexity
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This “industrial age” control loop is effective in establishing rigid order and controls around business processes. The challenge is in the time frames it take to execute, and it’s ability to sense and quickly adapt it’s “hardwired” operational model.
alf@Alkamind.com
order
edge-of-order
edge-of-chaos
environmental complexity
Governance Layer 1 - Operational
Governance Layer 2 - Management
Respond
Sense
React
Succeed
order
edge-of-order
edge-of-chaosenvironmental complexity
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Control
ProcessDriven
Measure
SuccessDriven
PeopleOrientated
Environmentally Viable
Integrate
Create Order Improve Process Integrate People
The accelerated rate of change of the 21st century will naturally “select” the organizations able to quickly integrate the multiple organizational “systems” into a viable entity within it’s economic ecosystem. There is a natural sequence and “self-awareness” to the maturation of an organization.
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Executive Layer – purposeful
Management Layer – goal-seeking
Operational Layer – state-maintaining
The multiple organizational systems in play are the executive, management, and operational layers. From a systems thinking perspective, these systems pursue purposeful, seek goal, and maintain a steady state.
Control
ProcessDriven
Measure
SuccessDriven
PeopleOrientated
Environmentally Viable
Integrate
Create Order Improve Process Integrate People
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alf@Alkamind.com
order
edge-of-order
edge-of-chaos
environmental complexity
order
edge-of-order
edge-of-chaosenvironmental complexity
Governance Layer 1 - Operational
Governance Layer 2 - Management
Co-emergence of needs for more complex control objective.
As more chaotic conditions emerge the system moves towards breakdown.
A systemic design set new forms of control objectives with feedback.
The double loop feedback controls allows the entire system to continuously learn and set direction.
The evolution of our Governance environment is calling forth a greater need to engage in Risk-Adjusted control methods aligned to comply to an ever evolving set of standards and regulations.
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alf@Alkamind.com
order
edge-of-order
edge-of-chaos
environmental complexity
order
edge-of-order
edge-of-chaosenvironmental complexity
A Stratified Governance Model allows the organization to develop and design controls and monitoring points between the executive, management and operational layers of a firm. This governance structure provides a continues learning mechanism, where quality, risk and compliance is integrated into the governance framework rather than reviewed separately.
order
edge-of-order
edge-of-chaosenvironmental complexity
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Governance monitoring relies on a set of control feedback loops between the hierarchical layers of an organization. Making the linkage between the process & practice (operational) layer up to the higher (management and executive) layers is based on control feedback loops.
Input
Output as Outcomes
Output as Control Metrics
Me
tric
s
ProcessActivities & Procedures
Tasks, ToolsInformation records
Alkamind Consultingalf@alkamind.com
User of Service
Service Support
Service Delivery
Tools & Metrics
Service Management Tools
Business Application Systems
The outcomes of processes include:• Delivering a product• Providing a service that:
• provide a Design• provide an Implementation• provide ongoing Operations• provide Improvements
• Financial properties including:• Revenue• Operational Costs
Monitoring of Control Objectives include :• Summary of metrics of product delivery• Correlation of metrics of service provisioning• Financial summary for accounting of:
• Metrics: financial , risk, fiduciary & prudential • Operational efficiencies
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There is a fundamental difference between a Control Process and the underlying Value Creation Process. While the Value Creation Processes form the core components of a Business Model, the Control Processes provide the Risk-Based management framework for long term viability & sustainability.
Input
Output as Outcomes
Output as Control Metrics
Me
tric
s
Value CreationProcess
Activities & ProceduresTasks, Tools
Information records
Control Process Functions1. Set Control Objectives 2. Establish Sensors & Monitors3. Feedback Mechanism 4. Compare Function5. Respond
Feedback Loop
Control Loop
Alkamind Consultingalf@alkamind.com
User of Service
Service Support
Service Delivery
Tools & Metrics
Service Management Tools
Business Application Systems
Input of
Resources
Value Creation
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Control Process Functions1. Set Control Objectives 2. Establish Sensors & Monitors3. Feedback Mechanism 4. Compare Function5. Respond
4/5. Compare & Respond function reviews the feedback metrics against control objectives and takes action based on the feedback
While the business Value Creation Processes are concerned with using resources to create value in the form of products and services, the Control Processes are a risk-based management function that provides oversight to making decisions & setting direction (governance), managing risk, and comply to regulatory obligations.
Control Loop
Alkamind Consultingalf@alkamind.com
User of Service
Service Support
Service Delivery
Tools & Metrics
Service Management Tools
Business Application Systems
Input of
Resources
Value Creation
1. The Control Objectives need to satisfy specific Regulatory (or Standards) Requirements
2. Sensors & Monitors needs to be established in the appropriate Service Management domains
(e.g. Strategy, Design, Transition, Operations, Improvement)
3. Feedback Mechanism generates the associated “evidence of compliance” to the review functions of “Compare/Respond”, Audit, or Certify
Feedback Loop
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Break
The layers and control-feedback loops
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The “single control feedback loop” maintains a state where the control objects of a process are measured against the operational feedback monitor.
Input
Output as Outcomes
Output as Control Metrics
Me
tric
s
ProcessActivities & Procedures
Tasks, ToolsInformation records
Governance Layer 1“are we on target to achieve our control object goals”
CoordinateDirect
MonitorControl
Feedback Loop
Control Loop
Alkamind Consultingalf@alkamind.com
User of Service
Service Support
Service Delivery
Tools & Metrics
Service Management Tools
Business Application Systems
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The internal process of the Governance Layer 1 is a comparison of results from the feedback process (monitor) and the control objects (CO) goals.
Governance Layer 1“are we on target to achieve our control object goals”
CoordinateDirect
MonitorControl
Input
Output as Outcomes
Output as Control Metrics
Me
tric
s
ProcessActivities & Procedures
Tasks, ToolsInformation records
User of Service
Service Support
Service Delivery
Tools & Metrics
Service Management Tools
© Copyright Alkamind Consulting Alkamind Confidential 14
This process of Governance Layer 1 is to take the “norms” of the control objectives and compare the monitored feedback against those “norms”. This single control feedback loop aligns the outcomes to the target goals.
Governance Layer 1“are we on target to achieve our control object goals”
CoordinateDirect
MonitorControl
Monitor
Compare
Norms are set as the control objectives as Governance oversight of operational processes
Norm
“Single” Feedback Loop
Control Loop
Control
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The Governance Layer 2 uses a double control feedback loop as a form of organizational learning to cross correlate metrics and refine the goals that should be set. The primary function of GL2 is to set the right controls for GL1.
Governance Layer 2“are we aiming at the right goals?”
CoordinateDesignPlan
Improve
Monitor
Compare
Are we doing things well?
Norm
“Double” Feedback Loop
Control Loop
Control
Are we doing things the right way?
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The Governance Layer 3 uses a triple control feedback loop as a form of learning to integrate the diversity of portfolios and programs to strategic goals to create value. The primary function of GL3 is to integrate diversity into a GL2 control set.
Governance Layer 3“are we integrating diverse perspectives?”
CoordinateStrategizeIntegrate
Serve
Monitor
Compare
Are we getting the benefits?
Norm
“Triple” Feedback Loop
Control Loop
Control
Are we doing the right things?
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These stratified control feedback loop represent the sensory perception of an organization to the environment that it is operating in. These loops represent the continuous knowledge of results to guide the organizational system at every level of the enterprise through the creative experience.
Components
Products
Solutions
Services
Time to Emerge
Rel
ativ
e C
ompl
exity
The journey of the creative experience
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At the heart of Governance is a framework to acquire continuous information to be able to guide activities at multiple levels of the organization. The relationship between the control and monitoring functions need to be appropriate to their governance layer.
Strategic GoalsControl = Are we doing the right things?Feedback = Are we realizing the benefits?
Tactical GoalsControl = Are we doing things the right way?Feedback = Are we doing things well?
Operational GoalsControl = Do we have control objectives as goals?Feedback = How do we measure against those goals?
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Applying IT related governance and best practice publications to the Stratified Governance model.
Stratified Governance Model Supporting models Developing a Governance Structure Linking Control Objectives with Metrics
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Strategic initiatives need to form a holistic portfolio management structure driven by a program structure. From a systems evolution perspective, initiatives fall into broad classifications.
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This wave view also serves to indicate the interaction between project based life cycle activities and the reiterative operational state maintaining activities.
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Change Stages
Alpha
BetaDelta
Gamma
New
AlphaBarrier – Sets of competing
commitments
Flex
Time
Perc
eive
d fit
with
Life
C
ondi
tions
From Spiral Dynamics, by Don Beck and Christopher Cowan
The Gravesian (Clare Graves) change model classifies specific change The Gravesian (Clare Graves) change model classifies specific change conditions, as the interactions between Life Conditions and systems of conditions, as the interactions between Life Conditions and systems of Adaptive Intelligence, that move through breakdown and breakthrough.Adaptive Intelligence, that move through breakdown and breakthrough.
What are your competing
commitments and how will they show
up?
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ISelf
WeCulture
ItBiological Features
Behavior
ItsSystems & Structures
Interior Exterior
Indiv
idual
Colle
ctiv
e
Based of Richard Barrett’s Alignment Model “Building Value Driven Organizations”Over Ken Wilber’s AQAL Model “A Theory of Everything”
ValuesValuesAlignmentAlignment
MissionMissionAlignmentAlignment
Structural Structural AlignmentAlignment
Personal AlignmentPersonal Alignment
Developmentally, each quadrant provides alignment steps to the next “appropriate” developmental step. Any “state” change in one quadrant needs to be supported by corresponding changes in the other quadrants to form a sustainable “stage” change.
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Courtesy Alf Rock alf@alkamind.com
24
Courtesy Alf Rock alf2rock@gmail.comalf@spiraldynamics.intranets.com
Cultural Values Social
UL. Individual/Internal UR. Individual/External
LL. Collective/Internal LR. Collective/External
Thinking Behavior
Blue
Blue
Red
Orange
Orange
GreenGreen
BeigePurple
Red
2nd Tier
Emerges
AQAL AQAL AlignmentsAlignments
Developed by Alf Rock alf@alkamind.comalf2rock@gmail.comAdapted from Ken Wilber
ValuesValuesAlignmentAlignment
Personal AlignmentPersonal Alignment
Structural AlignmentStructural Alignment
MissionMissionAlignmentAlignment
© Copyright Alkamind Consulting Alkamind Confidential
Courtesy Alf Rock alf@alkamind.com
25
Courtesy Alf Rock alf2rock@gmail.comalf@spiraldynamics.intranets.com
Cultural Values Social
UL. Individual/Internal UR. Individual/External
LL. Collective/Internal LR. Collective/External
Thinking Behavior
Blue
Blue
Red
Orange
Orange
GreenGreen
BeigePurple
Red
2nd Tier
Emerges Intentional
Personal meaning and inner skills
BehavioralIndividual
behavior and outer skills
SystemsSystems and
Processes
CulturalCultural and
shared meaning
AQAL AQAL
Developed by Alf Rock alf@alkamind.comalf2rock@gmail.comAdapted from Ken Wilber
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The Kano Model
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Stratified Governance Charter
The Stratified Governance Model (SGM) provides a framework from which to design and link governance oversight at multiple levels of the organization.
This design and meshing of control objectives through governance layers from board, to executive, to management, to operational levels is critical to demonstrate evidential and auditable commitment to governance and compliance for quality assurance and regulatory compliance.
Using a set of complimentary tools, this Stratified Governance Model can be used to design and provide oversight for both life cycle orientated and reiterative operational activities.
The SGM can be used to design both methods of engagement for project based objectives and operational processes based on openly published standards.
The SGM provides unprecedented levels of mapping from the Enterprise Governance of IT, right through various governance layers, down to a specific process task and it’s supporting records of truth and control objective metrics.
The Stratified Governance Model can be used to encompass Risk Management and Compliance programs in any taxonomy breakdown for a GRC framework.
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Integral Leadership will go beyond integrating technology, processes, and people, by accommodating for the human experience in an uncertain reality.
“Who Are We?”
As we hurtle through ever greater achievements and calamities of technical and social change, we find ourselves at the brink of a new level of self awareness!
Can we find a level of self awareness that will save us from the certainties of our perspectives?
Are we capable of developing a common framework that can shift with the dynamics of our complex adaptive system into harmony and balance?
How is it that when ever we seem to solve one set of problems, others emerge to take their place?
How can we develop the critical element of trust to move forward?
The more of the mystery we discover the more wondrous it becomes!
Our worldviews simply touch a large reality?
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29Unawareness
Awareness
Learn New
BehaviorPractice
New Behavior
Change of
Values
Transformation Cycle
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30
Knowledge Spiral2-Dialogue or
Collective reflection
3-LinkingExplicit
Knowledge
4-Learning by Doing
1-Field of Interaction
SECI model: Takeuchi & Nonaka
Tacit
Tacit
Explicit
Explicit
ExternalizationTacit to Explicit
SocializationTacit to Tacit
InternalizationExplicit to Tacit
CombinationExplicit to Explicit
© Copyright Alkamind Consulting Alkamind Confidential
Courtesy Alf Rock alf@alkamind.com
31
Courtesy Alf Rock alf2rock@gmail.comalf@spiraldynamics.intranets.com
Cultural Values Social
UL. Individual/Internal UR. Individual/External
LL. Collective/Internal LR. Collective/External
Thinking Behavior
Blue
Blue
Red
Orange
Orange
GreenGreen
BeigePurple
RedOrthodox Fundamentalism
Prevails
Liberal FundamentalismPrevails …
... Until emergent complexity brings forth the next existential crisis!
2nd Tier
Emerges Intentional
Personal meaning and inner skills
BehavioralIndividual
behavior and outer skills
SystemsSystems and
Processes
CulturalCultural and
shared meaning
AQAL in Motion AQAL in Motion
Developed by Alf Rock alf@alkamind.comalf2rock@gmail.comAdapted from Ken Wilber
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