stratified governance model v9.1 summary

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Stratified Governance

Model

Alf [email protected]

Alkamind ConsultingAlkamind Consulting


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.

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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


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.

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order

edge-of-order

edge-of-chaos




Respond

Sense

React

Succeed

order

edge-of-order



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.


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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order

edge-of-order

edge-of-chaos


order

edge-of-order




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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order

edge-of-order

edge-of-chaos


order

edge-of-order


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



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

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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


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


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


User of Service

Service Support

Service Delivery

Tools & Metrics



Input of

Resources

Value Creation


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


User of Service

Service Support

Service Delivery

Tools & Metrics



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


Break

The layers and control-feedback loops


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


Me

tric

s



Governance Layer 1“are we on target to achieve our control object goals”

CoordinateDirect

MonitorControl

Feedback Loop

Control Loop


User of Service

Service Support

Service Delivery

Tools & Metrics




The internal process of the Governance Layer 1 is a comparison of results from the feedback process (monitor) and the control objects (CO) goals.


CoordinateDirect

MonitorControl

Input

Output as Outcomes


Me

tric

s



User of Service

Service Support

Service Delivery

Tools & Metrics



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.


CoordinateDirect

MonitorControl

Monitor

Compare

Norms are set as the control objectives as Governance oversight of operational processes

Norm

“Single” Feedback Loop

Control Loop

Control


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?


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?


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


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?


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


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.


This wave view also serves to indicate the interaction between project based life cycle activities and the reiterative operational state maintaining activities.


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?


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 [email protected]

24

Courtesy Alf Rock [email protected]@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 [email protected]@gmail.comAdapted from Ken Wilber

ValuesValuesAlignmentAlignment

Personal AlignmentPersonal Alignment

Structural AlignmentStructural Alignment

MissionMissionAlignmentAlignment



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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



The Kano Model


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.


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?


29Unawareness

Awareness

Learn New

BehaviorPractice

New Behavior

Change of

Values

Transformation Cycle


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



31





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


stratified governance model v9.1 summary

Leadership & Management