What Got You There With Sean DeLaney

Dee Hock – Reflections of a Restless Mind

Dee Hock is the Founder and former CEO of Visa

Today, Visa consists of 19,000 financial institutions operating in 240 countries and territories, with 2.5 billion cardholders making 80 billion transactions totaling $8.5 trillion annually.

This is one of Dee Hock’s favorite tricks to play on an audience. “How many of you recognize this?” he asks, holding out his own Visa card.

Every hand in the room goes up.

“Now,” Hock says, “how many of you can tell me who owns it, where it’s headquartered, how it’s governed, or where to buy shares?”

Confused silence. No one has the slightest idea, because no one has ever thought about it.

And that, says Hock, is exactly how it ought to be. “The better an organization is, the less obvious it is,” he says. “In Visa, we tried to create an invisible organization and keep it that way. It’s the results, not the structure or management that should be apparent.” Today the Visa organization that Hock founded is not only performing brilliantly, it is also almost mythic, one of only two examples that experts regularly cite to illustrate how the dynamic principles of chaos theory can be applied to business.

Dee Hock 

Principles: distributed power, diversity and ingenuity 

Philosophy: highly decentralized and highly collaborative. Authority, initiative, decision making, wealth — everything possible is pushed out to the periphery of the organization, to the members

Epiphany Moment

What he read convinced him that the command-and-control model of organization that had grown up to support the industrial revolution had gotten out of hand. It simply didn’t work. Command-and-control organizations, Hock says, “were not only archaic and increasingly irrelevant. They were becoming a public menace, antithetical to the human spirit and destructive of the biosphere. I was convinced we were on the brink of an epidemic of institutional failure.”

He also had a deep conviction that if he ever got to create an organization, things would be different. He would try to conceive it based on biological concepts and metaphors.

Principles are never capable of ultimate achievement, for they presume constant evolution and change.  “Do unto others as you would have others do unto you,” is a true principle, for it says nothing about how it must be done.  It presumes unlimited ability of people to evolve in accordance with their values, experience and relations with others.

Educe– a marvelous word seldom used or practiced, meaning, “to bring or draw forth something already present in a latent, or undeveloped form.” It can be contrasted with induce, too often used and practiced, meaning, “to prevail upon; move by persuasion or influence – to impel, incite, or urge.”

Leadership: Therefore, a clear, constructive purpose and compelling ethical principles evoked from and shared by all participants should be the essence of every relationship in every institution. True leaders are those who epitomize the general sense of the community — who symbolize, legitimize and strengthen behavior in accordance with the sense of the community — who enable its shared purpose, values and beliefs to emerge and be transmitted. A true leader’s behavior is induced by the behavior of every individual choosing where to be led.

Everyone was born a leader. Who can deny that from the moment of birth they were leading parents, siblings, and companions? Watch a baby cry and the parents jump. We were all born leaders; that is, until we were sent to school and taught to be managed and to manage. People are not “things” to be manipulated, labeled, boxed, bought, and sold. Above all else, they are not “human resources.” We are entire human beings, containing the whole of the evolving universe, limitless until we are limited, whether by self or others.

Forget management.  Lead yourself, lead your superiors, lead your peers, employ good people and free them to do the same. All else is trivia!

Visa

“The most abundant, least expensive, and most constantly abused resource in the world is human ingenuity.”

Enabling Organization:

Healthy organizations induce behavior. Unhealthy organizations compel it

Quantum physicists and evolutionary biologists, among others, now believe that it is best to describe reality as a web of interconnected relationships that give rise to an ever-changing and evolving universe of objects that we perceive only partially with our limited senses. In that “Systemic” view of the world, nothing is merely the sum of the parts; parts have meaning only in reference to a greater whole in which everything is related to everything else.

Information becomes knowledge when it is integrated with other information in a form that is useful for deciding, acting, or composing new knowledge. Knowledge becomes understanding when related to other knowledge in a manner that is useful in conceiving, anticipating, evaluating, and judging matters beyond the reach of information. Understanding becomes wisdom when informed by ethical, moral, and beneficent purpose and principle, along with memory of the past, and projection into the future. The fundamental characteristics of the opposite ends of this spectrum are very different. Data, on one end of the spectrum, is separable, objective, linear, mechanistic, and abundant. On the other end of the spectrum, wisdom is holistic, subjective, spiritual, conceptual, creative and scarce.

The more powerful and entrenched our internal model of reality, the more difficult it is to perceive and understand the fundamental nature of the changed world we experience. Yet without such perception, it is extremely difficult to understand and change our internal model.

Competition and cooperation are not contraries. They have no opposite meaning. They are complimentary. In every aspect of life, we do both. Every cell in our bodies vigorously competes for every atom of nutrient swallowed and every atom of oxygen inhaled, yet every cell can sense when the good of the whole requires they cooperate by relinquishing their demands when the need of other cells is greater. Life simply cannot exist, let alone reach its highest potential, without harmonious existence of competition and cooperation.

Understanding requires mastery of four ways of looking at things – 

Our current forms of organization are almost universally based on compelled behavior – on tyranny, for that is what compelled behavior is, no matter how benign it may appear or how carefully disguised and exercised. The organization of the future will be the embodiment of community based on shared purpose calling to the higher aspirations of people.

Forming a chaordic organization begins with an intensive search for Purpose, then proceeds to Principles, People, and Concept, and only then to Structure and Practice. It can’t be done well as a linear process

1. Purpose – a clear, simple statement of intent that identifies and binds the community together as a worth pursuit. Should speak to people and make them think that, “If we could achieve that, my life would have meaning 

2. Principles – behavioral aspirations of the community. A clear, concise, unambiguous statement of a fundamental belief about how the whole and all the parts intend to conduct themselves in pursuit of the purpose. A principle is a precept against which all structures, decisions, actions, and results will be judged. A principle always has high ethical and moral content. It never prescribes structure or behavior; it only describes them. Principles often fall into two categories: principles of structure and principles of practice 

3. People – when a sound body of belief is reasonably complete and agreed upon, the group can then begin to explore the people and organizations that would need to be participants in the enterprise in order to realize the purpose in accordance with the principles. This sounds simple, but rarely is. When people set aside all consideration of existing conditions, free themselves to think in accordance with their deepest beliefs, and do not bind their thinking with structure and practices before considering meaning and values, they usually discover that the number and variety of people and entities to participate in governance, ownership, rewards, rights, and obligations are much greater than anticipated. They usually find their deepest beliefs require transcendence of existing institutional boundaries and practices. Determining the people and institutions required to realize the purpose in accordance with the principles brings realization of just how narrow and restrictive existing institutions are in relation to the exploding diversity and complexity of society and the systemic nature of seemingly intractable social and environmental problems. 

4. Concept – a visualization of the relationships between all the people that would best enable them to pursue the purpose in accordance with their principles. An organizational concept is perception of a structure that all may trust to be equitable, just, and effective. It is a pictorial representation of eligibility, rights, and obligations of all prospective participants in the community. The feedback part of the process never ends. Developing a new concept calls into question purpose, principles, and people. Every part of the process illuminates all subsequent and preceding parts, allowing each to be constantly revised and improved. 

5. Structure – the embodiment of purpose, principles, people, and concept in a written document capable of creating legal reality in an appropriate jurisdiction, usually in the form of a charter and constitution or a certificate of incorporation and bylaws. It is the written, structural details of the conceptual relationships – details of eligibility, ownership, voting, bodies, and methods of governance. It is the contract of rights and obligations between all participants in the community

6. Practice – deliberations, decisions, and acts of all the participants in the community functioning within the structure of purpose in accordance with principles. long before the structural work is finished, everyone realizes they need not worry about the practices of the community 

7. If you can accomplish all this, profit becomes a barking dog begging to be, let it

Dee on Management 

An organization, no matter how well designed, is only as good as the people who live and work in it. Ultimately what determines the organization’s performance is the approach to management its leaders take.

Hiring

I consider that a man’s brain originally is like a little empty attic, and you have to stock it with such furniture as you choose. A fool takes in all the lumber of every sort that he comes across, so that the knowledge which might be useful to him gets crowded out, or at best is jumbled up with a lot of other things, so that he has a difficulty in laying his hands upon it. Now the skillful workman is very careful indeed as to what he takes into his brain-attic. He will have nothing but the tools which may help him in doing his work, but of these he has a large assortment, and all in the most perfect order. It is a mistake to think that that little room has elastic walls and can distend to any extent. Depend upon it there comes a time when for every addition of knowledge you forget something that you knew before. It is of the highest importance, therefore, not to have useless facts elbowing out the useful ones.”

Employ Yourself 

Compensation

Form and Substance

Creativity

Leadership

Dee on Organization 

The truth is that a corporation, or any organization for that matter, has no reality save in the mind.  It is nothing but an idea; a mental construct to which people are drawn in pursuit of common purpose; a conceptual embodiment of a very old, very powerful idea called community.  

Healthy organizations are a mental concept of relationship to which people are drawn by hope, vision, values, and meaning, along with the liberty to cooperatively pursue them.  Healthy organizations educe behavior.  Educed behavior is inherently constructive.  Unhealthy organizations are no less a mental concept of relationship, but one to which people are compelled by accident of birth, necessity, or force.  Unhealthy organizations compel behavior.  Compelled behavior is inherently destructive.

Managing Oneself 

Managing Up

Managing One’s Peers

Hiring People 

Power: True power is never used. If you use power, you never really had it. 

Human Relations: First, last, and only principle — when dealing with subordinates, repeat silently to yourself, “You are as great to you as I am to me, therefore, we are equal.” When dealing with superiors, repeat silently to yourself, “I am as great to me as you are to you, therefore we are equal.” 

Criticism: Active critics are a great asset. Without the slightest expenditure of time or effort, we have our weakness and error made apparent and alternatives proposed. We need only listen carefully, dismiss that which arises from ignorance, ignore that which arises from envy or malice, and embrace that which has merit. 

Compensation: Money motivates neither the best people, nor the best in people. It can rent the body and influence the mind but it cannot touch the heart or move the spirit; that is reserved for belief, principle, and ethics. 

Ego, Envy, Avarice, and Ambition: Four beasts that inevitably devour their keeper. Harbor them at your peril, for although you expect to ride on their back, you will end up in their belly. 

Position: Subordinates may owe a measure of obedience by virtue of your position, but they owe no respectsave that which you earn by your daily conduct. Without their respect, your authority is destructive. 

Mistakes: Toothless little things, providing you can recognize them, admit them, correct them, learn from them, and rise above them. If not, they grow fangs and strike. 

Accomplishment: Never confuse activity with productivity. It is not what goes in your end of the pipe that matters, but what comes out the other end. Everything but intense thought, judgment, and action is infected to some degree with meaningless activity. Think! Judge! Act! Free others to do the same! 

Hiring: Never hire or promote in your own image. It is foolish to replicate your strength. It is stupid to replicate your weakness. Employ, trust, and reward those whose perspective, ability and judgment are radically different from your own and recognize that it requires uncommon humility, tolerance, and wisdom. 

Creativity: The problem is never how to get new, innovative thoughts into your mind, but how to get old ones out. Every mind is a building filled with archaic furniture. Clean out a corner of your mind and creativity will instantly fill it. 

Listening: While you can learn much by listening carefully to what people say, a great deal more is revealed by what they do not say. Listen as carefully to silence as to sound. 

Judgment: Judgment is a muscle of the mind developed by use. You lose nothing by trusting it. If you trust it and it is bad, you will know quickly and can improve it. If you trust it and it is consistently good, you will succeed, and the sooner the better. If it is consistently good and you don’t trust it, you will become the saddest of all creatures; one who could have succeeded but followed the poor judgment of others to failure. 

Leadership: Lead yourself, lead your superiors, lead your peers and free your people to do the same. All else is trivia.

Life is uncertainty, surprise, hate, wonder, speculation, love, joy, pain, mystery, beauty, and a thousand other things, some we can’t even imagine.  Control requires denial of life.  Life is not about certainty or controlling.  It’s not about getting.  It’s not about having.  It’s not about knowing.  It’s not even about being.  Life is eternal perpetual becoming or it is nothing.  Becoming is not a thing to be known, commanded, or controlled.  It is a magnificent, mysterious, odyssey to be experienced.  At bottom, desire to command and control is a deadly destructive compulsion to rob oneself and others of the joys of living.  

The concept of organizations composed of semi-autonomous equals affiliated for common purpose, such as Visa, the Internet, Linux software, The United Religions Initiative and Wicipedia, has intensified the endless debate as to whether competition or cooperation should rule the day.  Each has passionate messiahs to preach its virtue.  The messiahs on both sides are wrong.  Competition and cooperation are not contraries.  They have no opposite meaning. They are complimentary.  In every aspect of life, we do both.  Schools are highly cooperative endeavors within which scholars vigorously compete.  The Olympic Games combine immense cooperation in structure and rules with intense competition in events.  As the runners leap from the blocks, competition and cooperation are occurring in a single, indistinguishable blur.  Every cell in our bodies vigorously competes for every atom of nutrient swallowed and every atom of oxygen inhaled, yet every cell can sense when the good of the whole requires they cooperate by relinquishing their demands when the need of other cells is greater.  Life simply cannot exist, let alone reach its highest potential, without harmonious existence of competition and cooperation

 Competition gone mad results in the mindless pursuit of self-interest, abuse of others, retaliation, accelerating anarchy, and eventual chaos.  Only in a much more harmonious, oscillating dance of both competition and cooperation, can the extremes of control and chaos be avoided, and peaceful, permanent, societal order be found.  If relative harmony is maintained between the two, they drive one another.  The more we compete, the more we need to cooperate.  The more we cooperate, the more and better we can compete.  

In organizations of the future, it will be much more important to have a clear, compelling purpose and sound principles within which many specific, short-term objectives can be quickly achieved, than a long-range plan with fixed, measurable  objectives.  Such plans often lead to futile attempts to control events in order to make them fit the plan, rather than understanding events so as to advance by all means in the desired direction.  In time of rapid, radical change, long-term plans are often so generally stated as to require endless interpretation, in which case they are no plan at all, or they become so rigid that they diminish thought, obscure vision and muffle advocacy of other, more innovative views.

Out of the lumber of things we are taught, the gravel and cement of our experience and the nails of things we observe, we slowly erect an internal edifice, an internal temple of reality, gradually filling it with the furniture of habit, custom, preference, belief and bias.  We get comfortable there.  It’s our sanctuary.  Through its windows, warped though the glass may  be, we view society and the world.  Our internal model of reality is how we make sense of the world.  And it can be a badly built place indeed.  Even if it is well constructed, it may have become archaic.  Everything that gave rise to it may have changed.  Society and the natural world are never stagnant.  They are constantly becoming.

When it becomes necessary to develop a new perception of things, a new internal model of reality, the problem is never to get new ideas in, the problem is to get old ideas out.  Every mind is filled with old furniture.  It’s familiar.  It’s comfortable.  We hate to throw it out.  The old maxim so often applied to the physical world, “nature abhors a vacuum”, is much more applicable to the mental world.  Clear any room in your mind of old perspectives, and new perceptions will rush in.  Yet, there is nothing we fear more.  It is our individual perspective, the view from our internal temple of reality, that constantly discolors and distorts our perception, blinding us to how things might become, or conceiving of how they ought to be.  Perspective is the Achilles heel of the mind. 

Leadership is the ability to make wise decisions, and act responsibly upon them, when one has little more than a clear sense of direction,  proper values, and some understanding of the forces driving change.  It requires true leadership.  It requires those who can go before and show the way.  It requires educing the inherent integrity and virtue that lies within everyone waiting to be aroused and brought into play.

Quotes

“The person who fights for a dying cause is admired, supported and honored.  The person who fights for a new cause struggling to be  born is misunderstood, reviled and attacked.  Nothing is more difficult than taking the lead in a new order of things”

Mountains, I discovered three principal loves of my life: nature, reading, and unstructured learning.

It led to three questions that soon dominated my life. Time and time again I asked:   

Additional Dee Hock Resources 

One from Many: VISA and the Rise of Chaordic Organization

Autobiography of a Restless Mind: Reflections on the Human Condition Volume 1

Autobiography of a Restless Mind: Reflections on the Human Condition Volume 2

Birth of the Chaordic Age

https://www.fastcompany.com/27333/trillion-dollar-vision-dee-hock

https://www.fastcompany.com/27454/dee-hock-management

http://www.deewhock.com/essays

https://blas.com/wp-content/uploads/2020/07/On-Dee-Hock.pdf

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