You can watch the slides with animations here: http://www.strategicstructures.com/?p=1511 Short description ============= It is often said that organisations are full of paradoxes. But this refers to contradictions and tensions. It is understood as something that needs to be taken care of. When organisations are looked at as social systems, however, it becomes clear that they are only possible because of paradoxes, and particularly paradoxes of self-reference. Understanding how these paradoxes create and maintain organisations is an important skill for practitioners trying to make sense of what's going on and improve it. The basic generative organisational paradox is that of decisions. It brings new light not only on decision patterns and dependencies, but also on understanding the nature of objectives, power, and relations with clients.

1. SCIO OPEN DAY
21 JANUARY, LONDON
IVO VELITCHKOV
rganisationalOP Paradoxes
r o d u c t i v e

2. Paradoxes1.
What’s a paradox? (a reminder)
Why are paradoxes avoided?
Why they shouldn’t be, when trying to
understand social systems?

3. Growing interest in paradoxes but different perspectives
Organizational studies:
Paradoxes = tensions and
contradictions in
organisations
Social Systems Theory:
Paradoxes of self-
reference produce
social systems and they
are everywhere, at
micro and macro level

4. Paradox
This statement is false
self-reference

5. Paradox
x2+1=0
self-reference
𝑥 =
−1
𝑥 +1=-1

6. Self-reference
is the infinite in
finite guise.
Louis H. Kauffman

7. z = z2+c
Zn+1 = zn
2+c
Mandelbrot

8. མུ་བཞི
Catuṣkoṭi
being not being
neither
both

9. 1.Everything that is, exists.
2.Nothing can simultaneously be and not be.
3.Each and every thing either is or is not.
Laws of Thought

10. Nth order observation
Laws of thought
1. A=A
2. ¬(A ∧ ¬A)
3. A∨¬A
Laws of Cybernethics
a≠a .1
a ∧ ¬a .2
a∨a .3
1. identity
2. noncontradiction
3. excluded middle
1st order observation
paradox .1
ambivalence .2
control .3
Dirk Baecker, Aristotle and George Spencer-Brown, 2012

11. Nth order observation
Laws of thought
1. A=A
2. ¬(A ∧ ¬A)
3. A∨¬A
1. identity
2. noncontradiction
3. excluded middle
1st order observation
[mathematics]
George Spencer-Brown
LAWS OF FORM
[biology]
Maturana & Varela
AUTOPOIESIS
[sociology]
Niklas Luhmann
SOCIAL SYSTEMS THEORY

14. distinction
…which is an indication of:
1. The inside (emptiness, void, nothing, the unmarked
state)
2. The outside (something, the marked state)
3. The distinction as a sign (indication)
4. The distinction as on operation of making a
distinction
5. The invitation to cross from one side to the other
6. The observer, the one that makes the distinction
7. …

15. Laws of Form
= calling
= crossing
=a a re-entry
More at http://www.strategicstructures.com/?p=957

16. Self-reference
=a a =a …
F. Varela: third state, “autonomous” state

17. Autopoiesis

18. rganisationalO2.
paradoxes
Why all decisions are by nature paradoxical?
How organisations reproduce themselves through
decisions?
How decisions absorb uncertainty?

19. Social Systems
communications

20. communications
Social Systems

21. Reichel, A. (2011) ‘Snakes all the way down: Varela’s calculus for self-reference and the
praxis of paradise’, Systems Research and Behavioral Science, 28(4): 646-662
The form of Communication

22. decisions
communications
1
2
3
Organisations

23. Notation
=

24. Social Systems

25. before | after
event
utterance | information | understanding
communication
Unity of distinction
selected | not selected
decision

26. Organisations
decisions

27. "Only those questions which are in principle undecidable, we can decide“
Heinz von Foerster
1/5
The paradoxes of decisions

28. what a decision is is a decision
2/5
The paradoxes of decisions

29. 3/5
The paradoxes of decisions
time = (before | after)
decision

30. 4/5
The paradoxes of decisions
Every decision has to:
1. Communicate its alternative
&
2. Communicate that it is NOT
its alternative
regret
criticism
blame
enables

31. The paradoxes of decisions
t1 t2
enable
produce
5/5

32. Pr o d u c t i v e3.Why “productive”?
How to use this knowledge in practice?

33. Productive
“Productive”, because:
1. Organisations are produced by paradoxes.
2. There is productive misunderstanding between organisations.
3. Understanding organisational paradoxes can be productive.
(some practical application examples follow)

34. Applications
Managing Constraints Decision Patterns Hidden Dependencies Understanding Power
Decision Packages B2B interactions SASSY Architecture VSSM

35. Managing constraints
• Deconstructing constraint “molecules”
• Suspending constraints to enable innovation
o Range of realistic expectations
o Configuration of constraints
Natural limitation
Decision-based limitation

36. constraints
constrained by
options
excluded due to
consideredalso feasible
… … …

37. D
constraints
constrained by
options
excluded due to
consideredalso feasible
D D
D D D
…
D D
… …
D D
D
Planning = deciding decision premises
D D D D D D

38. Power

39. My task is …
Our objective is…
I have a mandate for…
It was
decided
that…

40. time
power Decision: To implement “Business Analysis Dashboard” (BAD)
Approved “BAD” business case
“BAD” investment approved
by the High IT Board
“BAD” selected, using SWOT
Prefer Buy to Build
Trust Gartner
reports
Use SWOT in
business cases,
decided by X
Recruit X,
decided by B
B can recruit,
decided by A
Start “BAD” project

41. time
power Decision: To implement “Business Analysis Dashboard” (BAD)
Approved “BAD” business case
“BAD” investment approved
by the High IT Board
“BAD” selected, using SWOT
Prefer Buy to Build
Trust Gartner
reports
Use SWOT in
business cases,
decided by X
Recruit X,
decided by B
B can recruit,
decided by A
Start “BAD” project

42. time
power
A
B

43. Understanding B2B interactions
system in focus
client
vendor

44. Observation 1: Local Optimum
Project metrics Enterprise metrics

45. Observation 2: Duality
Start End
Project KPIs Client satisfaction

46. The project
is successful
Start End 1+ years after
That project
was a
failure
That project
was
successful
The project
is a failure
Observation 3: How the evaluation evolves
A
B

47. Is it useful?
End 1+ years afterStart
Does it work? Is it used?
The 4U test

48. (Productive) Misunderstanding
client
Organisation
in focus

49. Two case studies from Australia
Case Study
1 (CS1)
Industry PM Scope Budget Time
Construction Same as
SC2
+ 3
items
- 0.15 % - 1.11 %
Case Study
2 (CS2)
Industry PM Scope Budget Time
Construction Same as
SC1
within + 40 % + 70 %
Source: “Project Management Yinyang: Coupling project success and client satisfaction”, 2017
Greg Usher, Stephen Jon Whitty

50. SASSY Architecture
SASSY: Semantic Architecture for Social Systems
More at http://www.strategicstructures.com/?p=1410

51. system
recursion
LORV
complexity
autopoiesis
S E
M
S
decision
Viable System Model Social Systems Theory
information

52. “What this orthodox organization chart leaves
out of account, when it comes to understanding
institutions, is that we are not dealing with
pistons, pumps, and distributor arms, but with
people; and the connexions between the parts
are not crankshafts, pipes, and electrical wires,
but human relationships.” (Designing Freedom)
“The heard of the enterprise is the human
being.” (The Heart of Enterprise)
Where are the people in the VSM?

53. See http://www.strategicstructures.com/?p=742

55. or rather, imagine it like this

56. The interest in decisions is very old
The Dialogue of Pessimism
(Mesopotamia, 1000 BC)
Omens = God’s decisions
(Mesopotamia, circa 2000 BC)

57. PM Fair 2017
Black Mirror
Bandersnatch

58. MAKING BETTER
DECISIONS
UNDERSTANDING
DECISIONS
Decision
Processes Decision
Paradoxes
Reasoning
Information
Management
LED e.g. Garbage Can e.g. the 8 apps
1st order observation Nth order observation

59. More clarity by seeing…
… through the lens of, or as a form of, decisions.
Organisation
Power Positions
PlanningTasks
Goals
Constraints
Time