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Sunday, June 25, 2023

Navigating Hidden Agendas

We are constantly striving to create thriving organizations where collaboration, productivity, and innovation flourish. However, one of the most challenging aspects in organizations is the presence of personal agendas - both overt and hidden. Oftentimes, people say that if we could just eliminate those personal agendas and focus everyone on the overall goal and mission, we would have a lot fewer problems. But that "just" is a major problem - let's explore.
How are the pieces and the Big Picture connected?

The problem with hidden agendas

Hidden agendas arise when an individuals' have personal interests, motivations, or goals don't align with their environment. Such hidden agendas are often considered to be impediments to decision-making, execution and teamwork. They also erode trust within the organization. 

Acknowleding and understanding the existence of hidden agendas is crucial for effective leadership and organizational success.


The Impact of Personal Agendas

Personal agendas significantly influence the dynamics, communication, decision-making processes. When individuals prioritize their own motives over organizational goals, this can spark conflicts, damage collaboration, and hinder progress. Hidden agendas pose a particular challenge here as they aren't openly acknowledged and addressed, so everyone besides the agenda's owner is kept guessing. This can undermine trust, transparency, and alignment within the organization.

The presence of personal agendas can indeed have a substantial impact on organizational success by affecting alignment, transparency and collaboration. Acknowledging and managing personal agendas thus becomes essential for fostering a positive and productive work environment.


Why are there Personal Agendas?

As soon as you have more than just a handful of people, the diversity of individuals' motivations, aspirations, and goals becomes more apparent. We see the difficulties this brings even in marriages where only two people need to align their needs and desires with each other. And with growing organizational size, the problem of alignment grows.

While some agendas may be openly expressed, others are hidden or not immediately apparent. In some cases, this happens on purpose. In many cases, though, it happens because people themselves are either unaware of the impact of their goals on overall goals, don't know how to communicate their own goals, or there's no forum where they could address the discrepancies. 

Complex organizational structure with multiple stakeholders and diverse roles are thus a fertile ground for the emergence of personal agendas. 


Can't we eliminate Personal Agendas?

In short: No. Eliminating personal agendas from individuals within an organization is practically impossible. Humans naturally have their own motivations, interests, and aspirations, based on their needs, expectations, assumptions and reasons. If we were to successfully remove all of these, it would turn people into soulless drones without. Autonomy, creativity and engagement would be massively constrained.

Minimizing the negative impact of personal agendas requires effort into aligning people's objectives with one another and the overall organization. We can achieve this by fostering open communication and respecting the individuals' motivations.


The consequences of suppressing Personal Agendas

When individuals are unable to express their personal agendas openly, they will develop hidden agendas instead. Lack of a forum for discussion and transparency creates an environment of mistrust, where individuals resort to covertly pursuing their own interests. It could take a long time until the impact of the resulting actions on communication and collaboration becomes tangible. The gap between overall desired actions and executed actions in this case is "communication debt."

Communication Debt: The conversations we should have had, but failed to have.

Similar to other forms of debt, this communication debt comes with an interest attached, and will grow exponentially over time when unattended.


Permitting Personal Agendas

Should we then make a space for personal agendas? Yes.

While we might believe that systems permitting personal agendas would perform worse in the long term, that doesn't match the evidence. Even people like Steve Jobs famously said, "We don't hire smart people and tell them what to do - we hire them so they can tell us what to do." Books like Dan Pink's "Drive" have collected overwhelming evidence that systems giving people the autonomy to decide the best course of action by themselves create superior outcomes.

Creating a space for personal agendas within a structured framework harnesses every individual's talents and creativity. Systems recognizing and accommodating personal agendas fare better on engagement, ownership, and innovation. The challenge is striking a proper balance between personal agendas and their potential to override collective objectives or causing conflicts.

When managed effectively, such systems can leverage the diversity of individual perspectives to drive organizational success.


The Growth of Hidden Agendas

Without a platform to openly express their personal agendas, hidden agendas tend to proliferate. The absence of open communication channels will foster resentment, lack of trust, and covert pursuit of individual interests. Over time, the resulting hidden agendas may undermine communication, collaboration and organizational cohesion.

Whereas providing a forum for sharing personal agendas is no guarantee for the absence of hidden agenda, without such a forum, hidden agendas are likely to grow. Opportunities for open dialogue and transparent communication are essential in mitigating this risk.


The effect of Hidden Agendas on decision-making

There are two kinds of decisions: those that the individual makes, and those that the organization makes in their official channels and processes. Organizational decisions are based on various factors, such as goals, collective input, expertise, and external considerations. 

In some organizations, hidden agendas dominate daily operations. Official decision-making processes in such environments are mostly a show: "the real decisions" were already made, in different forums, with different actors, before anything is openly brought to the table: The hidden agendas determine the course of action. Strategy and organizational goals are reduced to being the pretext for the predetermined decision. 

In the grand scheme of things, this may go unnoticed - but it may also lead to massive failures. as the source of the discrepancy often can't be traced, this creates confusion as to why decisions were ineffective. Many organizations respond by introducing additional checks and balances which leave even less room for personal agendas, while also slowing down future decision making and incurring extra costs, which renders the organization even less effective. Instead of solving the problem, they exacerbate it!


Repairing Systems Dominated by Hidden Agendas

We have explored that one of the main reasons for the emergence of strong hidden agendas is a discrepancy between an individual's motivations and the constraints of the system. The absence of a forum that respectfully enables people to reveal their personal agendas and address agenda conflicts openly and constructively gave rise to the need for hidden agendas.

The consequence is "organizational debt," which consists of all the communication and collaboration structures and learnings that led people to form hidden agendas.

Organizational debt: The entirety of all communication and collaboration structures, processes, rules and learnings that impede organizations from effectively reaching their goals.

Repairing the system isn't as easy as creating a forum for open communication. Hidden agendas often involve unaddressed motives, intransparency, and conflicts of interest. Building a more effective system requires a comprehensive approach involving open communication, trust-building, active problem-solving and reestablishing a shared sense of purpose by offering meaningful organizational values with which individuals can identify.


Conclusion

Recognizing and addressing personal agendas is crucial for building a healthy organizational culture where collaboration, innovation, and productivity thrive. Instead of trying to eliminate personal agendas, we need to create an environment that encourages open communication, transparency, and alignment. This will mitigate the negative impacts of hidden agendas. A culture that values diverse perspectives and aligns individual aspirations with organizational goals, will be more resilient and cultivate an empowered workforce that drives long-term success.

Navigating the complexities of hidden agendas and proactively working towards building an environment that enables transparent and collaborative organizations is everyone's job. Enabling individuals to contribute their best while advancing the collective goals requires them to pursue their own agenda in line with the organization's agenda. Transparency and alignment of everyone's goals are keys to unlock the true potential of our teams and organizations.


The TOP Structure is one specific approach that can be applied at any level, in any organization, independent of state or size, to actively reduce organizational debt and build a better organizational system.

Sunday, June 4, 2023

Little's Law and the Hidden Variable

Did you know there's a hidden variable in Little's Law, and that the traditional equation L = λW - is missing something?
Well, it doesn't tell you something important, and it used to bug me a lot until I could pinpoint it - so let's explore.

What Little's Law says

Quoting Wikipedia: "In mathematical queueing theory, Little's law is a theorem by John Little which states that the long-term average number L of customers in a stationary system is equal to the long-term average effective arrival rate λ multiplied by the average time W that a customer spends in the system."

For example, if we take a restaurant - the average number of guests present (L) is equal to the average arrival rate of guests (λ) multiplied by the average time a guest spends in the restaurant (W).
Let's say, if the average arrival rate is 10 guests per hour (λ = 10 customers/hour) and the average time a guest spends in the restaurant is 30 minutes hour (W = 0.5 hour), then according to Little's Law, the average number of guests in the restaurant (L) would be 5 guests.

Sounds all good - so: what is missing?

When Little's Law doesn't work

A few years ago, I had a hunch that Little's Law was missing something: Imagine that our restaurant has 5 tables and one waiter who can serve 12 guests an hour. Guests take half an hour between getting seated and paying their tab.
Does Little's Restaurant follow the tradtional formula of L = λW, ie., W = L/λ?
Would a reduction of seats lead to guests dining faster?
Would a reduction of maximum dining time generate more guests, or would people dine longer if there were more guests?
Probably not.
Is Little's Law broken?

No. But it's missing something - it doesn't account for system capacity!

Fixing Little's Law?


This modified version of Little's Law accounts for capacity: L = λW / (1 - ρ)

Now, that alone doesn't make sense, so I need to explain this variable ρ:
ρ represents the utilization of the system, calculated as λ / μ, where λ denotes the average arrival rate into the system, μ is the service rate capacity of our system, i.e. the reciprocal of the average service time (1/μ = Ts), where Ts is the average time required to serve a single customer (note the difference between "service time (net time)" and "time spent in the system (gross time)" - it's critical!) The "hidden factor" that Little's Law hid in plain sight was the relationship between the average number of customers (L) and the arrival rate (λ) needs to consider the impact of utilization and system capacity on the system performance! In underutilized systems, an increase in arrival rates has no impact on queues - whereas in overutilized systems, a reduction in system load won't have a visible effect until we get close to the actual capacity limits.

Returning to our restaurant example: Our restaurant's capacity is currently constrained by our amount of tables. As long as we have empty tables, a reduction in customers will not speed up anything. As long as all tables are full, adding more tables to the restaurant won't slow anything down. This view is complete counter-intuitive with the original Little's Law - but it makes sense, even in real life. Oh yeah - at some point, the waiter will be overburdened. At this point, the system capacity is no longer defined by tables, but by the waiter. So it's still all about system capacity.

Some examples

Example values for our Restaurant
μλWρL = λW / (1 - ρ)
510.50.21
520.50.42
530.50.64
540.50.810 --> bigger than capacity!
1010.50.11
1020.50.21
1060.50.68
1070.50.712 --> bigger than capacity!
310.50.31
320.50.73
340.51.3-6 --> negative!
What's important to note are the three invalid records: When the arrival rates get close to or exceed the system's capacity, the numbers "break down." The real-life effects we would observe here:
  • When arrival rates start to approximate the restaurant's capacity, the number of guests present gets bigger than the capacity, which in fact can't be - these invalid numbers indicate that variability could cause a backlog (queue) to form at peak times which can only be serviced when peaks are over.
  • Customers arriving to a full restaurant can't get serviced and might leave - i.e., the negative number hints at unserviceable demand, i.e. lost opportunity.
The important observation may sound trivial, but is often ignored in management: only when you have more seats than the arrival rate of guests can you avoid having to send anyone home. And the fewer tables, the more likely someone will have to wait. Which is why a WIP Limit of 1 is just as impractical as not controlling demand influx.

Conclusion

While Little's Law has its merit, and we've been using it for years in order to explain the relationship between throughput, cycle time and Work in Process - we can't use Little's Law to optimize our systems properly if we don't account for System Capacity.
Taking System Capacity into account allows us to predetermine whether increasing or decreasing WIP will have a significant effect - operating significantly below capacity is capacity waste, whereas operating above system capacity causes overload waste.
Thus, the "hidden variable" is more than just important to apply Little's Law - it's crucial!

Further reading

There's an interesting whitepaper by Dr. Little who also highlights the key point of my blog article: as arrival rates approach service rate capacity (as outlined in this blog article,) WIP and processing time skyrocket, "hitting a brick wall" close to the system's capacity as queuing overhead reaches infinity.