A Working Theory of Organizational Flow

FrictionThe Silent Killer

More Value From What You Already Have

Organizations don't become slow because people work slowly. They become slow because friction accumulates faster than value is created.

Organizational Flow is an organization's ability to continuously create value. Every organization has Organizational Flow — it is a property you hold a position on, not a state you arrive at. It is not a framework or a methodology. It is a way of seeing.

Structural friction determines how much of an organization's potential is actually realized.

We learned that the systems we build are never truly finished. They evolve continuously and must be cultivated over time. Organizations are no different. If one is designed for continuous evolution while the other is designed for completion, structural friction is inevitable. The systems we build and the organizations that build them must therefore be cultivated together.

Organizational Flow rises as information, decisions, execution and learning move through enduring capabilities with clear ownership — and falls as structural friction accumulates faster than value is created.

A paper this long is itself friction — a wall of material standing between you and the two or three parts that would actually help you on Monday. This one argues that friction should be named rather than tolerated, so: five things exist to take some of it off you.

I try to live as I learn. Working out which chapters matter to you shouldn't be your job.

Read it allOr just carry on down the page and read a part at a time.

Or start with the question the paper is really asking:where is your organization losing movement?

Preface

I sometimes say that it was easier before.

Not necessarily better. Just easier to understand.

Not that long ago, we built many systems much like we built machines. We designed them, implemented them, put them into production and, if everything went according to plan, declared them done.

Done. We said it out loud, in meetings, without irony.

The slightly uncomfortable truth was that many of them started degrading from day one. The business changed. Technology changed. Expectations changed. People found new ways of working. What had been a good solution slowly became yesterday’s solution, held together through maintenance, projects and the occasional heroic effort.

We have become much better at accepting that technology needs to evolve continuously. The more I worked with change, though, the less useful I found it to separate the technology from the organization around it.

A system is part of how an organization works. So are the people using it, the knowledge behind it, the decisions it supports, the teams changing it and the outcomes it exists to create.

Change one without being able to change the others and surprisingly little may happen.

Being able to build something faster, it turns out, is not the same as being able to turn it into value faster. Sometimes it simply reveals where the difficulty was all along.

Organizations are not finished any more than their systems are. Customers change. Knowledge ages. Regulation moves. People learn. What the organization needs to do, and how it can best do it, keep evolving together.

So when I talk about an organization’s ability to change, I mean the whole thing. The business and the technology. The people and the systems. How work is organized, how decisions are made, where knowledge lives and who owns what.

The interesting question, then, is not how we make technology easier to change, or how we make organizations more agile.

It is how we create the conditions for all of it to move together.

That question has followed me for a long time.

I did not sit down one day and decide to develop a theory about organizations. It accumulated slowly: projects that went surprisingly well, projects that became unnecessarily difficult, arguments around whiteboards, books, mistakes, and a good deal of thinking afterwards about why. Some of it went into a blog along the way, which is still there with its dates on.

Over time I kept seeing the same patterns.

Teams achieved very different outcomes depending on what knowledge came together within them. A decision that took an afternoon in one organization took three months in another. Organizations full of capable people and good technology still found surprisingly simple changes surprisingly hard.

At first I treated all of that as context. Every organization has its own history, people and constraints, and there is no universal model for how they fit together.

I still believe that.

But after enough years and enough organizations, some things became harder to dismiss as coincidence. Different industries used different words and structures, and underneath them I kept finding the same conditions — ones that either helped change move, or quietly created friction around it.

Different disciplines describe parts of it. Architecture some, leadership another; systems thinking, psychology and organizational design have all given me ways of understanding things I first met in practice.

I often found myself wondering whether we were all looking at different parts of the same thing.

Eventually, I started calling what I was seeing Organizational Flow.

The name matters less than the observation behind it. Some organizations are simply better than others at bringing people, knowledge, decisions and technology together to create value — and at carrying on doing it as the world around them changes.

This paper is my attempt to collect what I picked up along the way and make some sense of it.

It is not a finished model, and certainly not a recipe for designing the perfect organization. I am not convinced such a thing exists. It is a working theory and, more importantly, a lens: a way of looking at an organization and noticing what makes change easier, what makes it harder, and where friction quietly accumulates.

I expect parts of it to change, and I hope they do. Every conversation and every reader who points out something I have overlooked helps sharpen it.

That is also why I wrote it.

I hope some of it is directly useful — an idea you can take into a meeting on Monday and actually do something with.

But I would be equally happy if it simply makes you notice something you had stopped noticing.

A handover that suddenly looks unnecessary. A decision travelling strangely far from the people who understand it. A team waiting for another team because of a division nobody quite remembers creating. Or, just as importantly, a place where people, technology and purpose come together remarkably well — and you find yourself wondering why.

And perhaps that is reason enough for writing it.

As for The Silent Killer: yes, the title is slightly dramatic. I know. But friction rarely arrives with an alarm. More often, things simply take a little longer, require a few more meetings and become slightly harder to change — until one day that has become normal.

This paper is my attempt to understand why.


Organizations become slow when friction accumulates faster than value is created.

Preface

Systems were never really finished. Neither, it turns out, are organizations.

  1. Preface
  2. The Ten-Minute Version
  3. A Personal Journey
  4. A Digital Awakening

Part I — Discovering Organizational Flow

How much more could an organization create with exactly what it already has?

  1. 1IntroductionFriction
  2. 2The Cost of Value Never CreatedCost
  3. 3What is Organizational Flow?Definition
  4. 4We Stopped Building MachinesLiving systems
  5. 5The Picture I Keep Coming Back ToThe model
  6. 6What a Capability Is, and Is NotCapabilities

Part II — Seeing Organizational Flow

What have I seen again and again, in places that had nothing else in common?

  1. 7Busy Toward Nothing in ParticularPurpose
  2. 8A Meeting Grew HereOwnership
  3. 9Nobody Could Say Management Put Me HereOwnership
  4. 10A Tollbooth on a Road With a BypassGovernance
  5. 11What Survives the ReorgCapabilities
  6. 12The Team That Has to AskTeams
  7. 13How Much Can One Team HoldTeam size
  8. 14The Wait Nobody LoggedPeople
  9. 15Nobody Opts Out of the ArithmeticContribution
  10. 16Downstream of the ConditionsTalent
  11. 17It Shows Up in People FirstSymptoms
  12. 18Nobody Writes Down the Cost of Not TrustingHuman conditions
  13. 19Everyone Left AgreeingAlignment
  14. 20Where the Work Actually HappensPlace
  15. 21It Breaks in the JointsThe Loop
  16. 22We Have Solved This BeforeLearning
  17. 23The Half-Life of KnowledgeCompetence
  18. 24No Incident, No StoryRecognition
  19. 25Everything Was GreenValue
  20. 26It Grew Like ThatSystems
  21. 27The Conditions Don't Come in the BoxBorrowed models
  22. 28Decided Upstairs, Felt DownstairsLeadership
  23. 29The Long Way to a YesArchitecture
  24. 30You Have to Know a GuyInterfaces
  25. 31The Detective Work at the Front of EverythingDiscovery cost
  26. 32An Interface Nobody Can FindInterfaces
  27. 33Everyone Carries the Strictest RequirementConstraints
  28. 34Faster, and Still WrongTechnology
  29. 35What AI Lands InArtificial Intelligence

Part III — Cultivating Organizational Flow

How do the conditions behind those patterns get cultivated?

  1. 36Tending What GrewCultivation
  2. 37Growing the TeamConditions
  3. 38Growing What Cannot Be InstalledHuman conditions
  4. 39Drawing the Line Around a TeamTeam boundaries
  5. 40Ten Minutes TodayUnblocking
  6. 41Leading Without DecidingLeadership
  7. 42Equipping, Not ReviewingArchitecture
  8. 43Settling the Few ThingsGuardrails
  9. 44Agreeing on What Things MeanInformation
  10. 45Opening the Front DoorInterfaces
  11. 46Different Capabilities, Different ConditionsConstraints
  12. 47Multiplying What's ThereTechnology
  13. 48When Shared Infrastructure Becomes Shared FrictionInfrastructure
  14. 49Owning What AI Can'tArtificial Intelligence
  15. 50Funding What Doesn't EndFunding
  16. 51Closing the LoopLearning
  17. 52Reducing FrictionFriction
  18. 53Creating ValueValue

Part IV — Applying Organizational Flow

Where would you begin, with what is in front of you on Monday?

  1. 54Observing Organizations
  2. 55Measuring Value
  3. 56Where to Start
  4. 57What Goes Wrong
  5. 58Working This Way
  6. 59Seeing It Where You Are

Appendix

  1. Principles
  2. Further Reading
  3. A Closer LookSelf-assessment
  4. På svenska — Tiominutersversionen
  5. Acknowledgments
  6. Version History
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