Introduction to Sociocracy 3.0 Principles

Introduc)on*to*Sociocracy*3.0
Introduc)on*to*Sociocracy*3.0*2*©*2015,*2016*by*Bernhard*Bockelbrink*and*James*Priest*(sociocracy30.org)*2*v2016201229 1

Learning(Objec-ves
• learn'about'history,'principles'and'pa4erns'of'Sociocracy'3.0
• discover'how'an'organiza>on'might'look'like'when'running'on'
Sociocracy'3.0
• be'inspired'about'integra>ng'ideas'from'Sociocracy'3.0'in'your'
organiza>ons

Agenda
• Introduc*on+and+History
• Principles+and+Pa5erns
• More+Considera*ons

Part%1%'%Introduc.on%and%History

Sociocracy(3.0...
...is$a$method$for$growing$eﬀec$ve,'agile'and'resilient'
organiza$ons$of$any'size,$from$small$start2ups$to$large$
interna5onal$networks$and$na5onwide,$mul52agency$collabora5on.
...provides*a*collec.on*of*principles)and)pa,erns*to*dynamically)
steer)and)evolve)organiza4ons.

Sociocracy(3.0...
...incrementally,processes,available'informa-on,into,con-nuous'
improvement'of'products,'processes'and'skills.
...helps'organiza/ons'making'the$best$use$of$the$talent$already$
present,'and'to'grow'ﬂexible'organiza/onal'structures$that$
support$eﬀec3ve$travel$of$informa3on.

Sociocracy(3.0...
...contains)a)so#,%itera+ve%approach%to%implementa+on)that)meets%
organiza+ons%where%they)are)and)helps)them)move)forward)at)
their)own)pace.

Sociocracy(3.0...
• ...draws(on(the(collec%ve'intelligence(of(the(group
• ...facilitates(the(development(of(strategies(that(are(“good'enough'
for'now”(and(“safe'enough'to'try”
• ...fosters(accountability(and(a(sense(of(engagement
• ...is(a(transforma;onal(mechanism(for(both(individuals(and(the(
whole(organiza;on

Sociocracy(3.0(may(be(applied(within...
• ...startups
• ...small+and+medium+businesses
• ...large+interna2onal,+networked+organiza2ons
• ...families
• ...investor:funded+organiza2ons
• ...communi2es

What’s'in'a'word
• socio"
• from"La)n"socius"+"companion,"friend
• &cracy"
• from"Ancient"Greek"κράτος"(krátos,"“power,"rule”)
• diﬀerent"to"the"rule"of"the"demos
• the"general"mass"of"people"with"vo)ng"privileges

A"Brief"History"of"Sociocracy
From%1851%to%Today

A"Brief"History...
• 1851%–%Auguste%Comte
• Scien4ﬁc%method%applied%to%society
• Sociocracy%is%“the$social$order$of$the$future”%?%not%yet%achievable%
but%inevitable
• 1881%–%Lester%Frank%Ward
• redeﬁned%the%term%Sociocracy%to%describe%the%rule%of%the%
people%with%rela4onships%with%each%other%

A"Brief"History...
• 1926&'1954&'&Kees&Boeke
• Established&the&ﬁrst&sociocracy&in&his&residen=al&school&(based&
on&Quaker&consensus&principles)
• Book&“Sociocracy:)Democracy)as)it)might)be”&(1945)

A"Brief"History...
• 1970's()(Gerard(Endenburg
• Student(in(Kees(Boeke’s(school
• Integrated(principles(from(Engineering(and(CyberneEcs
• In(his(company(Endenburg(Electrotechniek(he(evolved(“The$
Sociocra+c$Circle.Organiza+on$Method”((later(becoming("The$
Sociocra+c$Method")

A"Brief"History...
• 1978&'&Sociocra.sch&Centrum&Utrecht
• created&to&promote&"The$Sociocra+c$Method"
• 1994&'&New&law&in&the&Netherlands
• Sociocra.c&organiza.ons&are&no&longer&required&to&have&a&
worker’s&council

A"Brief"History...
• 2000$%$emergence$of$a$now$wide%spread$grassroots$movement$
• 2007$%$We#the#People
• John$Buck$/$Sharon$Villines$make$Sociocracy$accessible$to$the$
English%speaking$world
• 2014$The$Sociocracy$3.0$Movement$is$born

The$Sociocracy$3.0$Movement...
• ...is%a%distributed%network%of%pioneering%consultants%and%trainers%
from%a%variety%of%ﬁelds,%who:
• share%a%deep%apprecia=on%for%the%transforma=onal%poten=al%of%
sociocracy%to%help%organiza=ons%and%their%members%thrive
• dedicate%some%of%their%=me%to%developing%and%evolving%
Sociocracy%3.0

The$Sociocracy$3.0$Movement...
• ...develops*and*evolves*Sociocracy*3.0*to*make*it*available*and*
applicable*to*as*many*organiza:ons*as*possible.
• ...provides*resources*under*a*Crea:ve*Commons*Free*Culture*
License*to*learn,*prac:ce*and*teach*Sociocracy*3.0.

Why$"Sociocracy$3.0"
Respect'to'the'Lineage,'and'a'Step'Forward
• un$centralized.distribu1on
• open:.principle$based.and.modular.pa6erns.make.it.easy.to.
adapt.the.method
• free:.eliminates.barriers.to.entry

Why$"Sociocracy$3.0"
Respect'to'the'Lineage,'and'a'Step'Forward
• a#change#method#that#meets#organiza1ons#where#they#are
• condensed#to#the#essen1als
• integrated#with#lean#and#agile#thinking
• new#ways#to#evolve#organiza1onal#structure

Principles*and*Pa-erns

Part%2%'%Principles

Core%Principles
• Sociocracy)is)built)on)7)core)principles)
• the)core)principles)are)also)values)that)shape)organiza7onal)culture
• understanding)these)principles)is)paramount)to)adop7ng)and)
adap7ng)Sociocracy)3.0)pa=erns
• prac7cing)Sociocracy)3.0)helps)people)appreciate)the)essen7al)
value)that)these)core)principles)bring,)both)to)individuals)and)
organiza7ons

Principle:*Empiricism
Knowledge)in)an)organiza.on)can)only)be)gained)through)experience,)
as)it)is)highly)dependent)on)context.
• basis&of&the&scien.ﬁc&method
• in&a&complex&adap.ve&system&all&knowledge&is&tenta.ve
• embrace&change:&con.nuous&revision&and&falsiﬁca.on
• reality&vs.&assump.ons
• learning&organiza.on

Principle:*Consent
Decisions(are(made(only(in(the(absence(of(reasoned(objec4on(from(
those(aﬀected(by(them.
• when&dealing&with&complexity,&group&wisdom&exceeds&individual&abili9es
• deliberately&seeking&objec9ons&invites&collec9ve&intelligence:
• allows&for&harves9ng&informa9on&to&improve&the&decision&
• helps&iden9fy&misunderstanding&early&
• fosters&support&and&accountability&for&decisions

Principle:*Eﬀec-veness
Devote&'me&only&to&that&which&brings&you&closer&to&achieving&
your&objec'ves.
• avoid'waste
• remove'impediments
• good'enough'for'now,'safe'enough'to'try

Principles:+Equivalence
Everyone(aﬀected(by(a(decision(has(the(power(to(withdraw(
consent(on(the(basis(of(reasoned(objec6on.
• posi&on,)rank,)func&on)or)role)has)no)special)inﬂuence)in)
decision)making

Principles:+Transparency
All#informa+on#is#accessible#to#anyone#in#an#organiza+on.#
Conﬁden+ality#requires#consent.
• all$relevant$informa.on$is$kept$up3to3date
• historical$informa.on$is$archived$for$reference

Principle:*Con-nuous*Improvement
Evolu&on(is(more(eﬀec&ve(than(revolu&on((most(of(the(&me).
• applies(to(everything((e.g.(strategies,(guidelines,(products,(skills,(
processes(and(tools)
• respond(to(change(by(building(on(and(transforming(what(is(
already(there
• small(steps(create(less(resistance,(lower(risk,(and(accommodate(
steady(empirical(learning

Principle:*Accountability
The$process$of$entering$and$keeping$agreements,$and$managing$
expecta5ons$in$any$rela5onship.!
• an$obliga*on$or$willingness$to$do$what$we$agree$to$and$to$
answer$for$when$we$don’t
• a$principle$relevant$to$groups,$organiza*ons$and$individuals
• a$shi:$from$being$held%to%account,$and$towards$a$culture$of$self.
accountability

Pa#erns
Defini&on:"A"pa%ern"is"a"template"for"successfully"naviga5ng"a"
specific"context."
• pa$erns)are)discovered)through)observing)many)organiza7ons)as)
they)solve)problems
• pa$erns)may)need)to)be)adapted)and)evolved)to)suit)differing)
contexts.

Part%3%'%Driver%and%Agreements

Driver&and&Agreements
• Driver
• Value
• Agreements
• Domain
• Strategy

Driver
Deﬁni&on:"A"driver"is"that"which"mo0vates"us"into"ac0on:"the"current"
reality"and"the"needs"we"associate"with"it.

Driver
• drivers(are(at(the(center(of(everything(Sociocracy(3.0(
• a(driver(o6en(describes(collec%ve'mo%va%on'for'a'group
• focus(on(drivers(fosters(alignment'towards'the'mo%ve(instead(
of(towards(our(assump<ons(about(the(future
• a(driver(clariﬁes(the(s<mulus(for(ac<on((and(thus(implies(
purpose)
• all(drivers(are(subject(to(regular(reviews

Current'Reality
Deﬁni&on:!The$current$reality$is$the$minimum$set$of$facts$and$
observa5ons$relevant$to$specify$a$driver.

Current'Reality'Statement
• is$a$statement$that$is$brief$but$clear$enough$to$describe$the$
various$dimensions$of$the$current$reality
• captures$both$the$posi7ve$and$nega7ve$aspects$of$reality
• must$contain$all$informa7on$relevant$for$a$review$of$the$driver$

Needs
Deﬁni&on:"A"need"is"a"necessity"related"to"the"current"reality,"that"if"
sa3sﬁed"would"alter"that"reality"in"a"manner"that"eases"tension.

Needs
• needs&are&iden*ﬁed&a,er&analysis&of,&and&in&rela*on&to,&the&
current&reality
• needs&can&be&iden*ﬁed&in&rela*on&to&the&organiza*on&itself,&its&
members,&stakeholders,&customers&or&environment
• needs&can&be&objec*ve&(physical)&or&subjec*ve&(psychological)
• needs&may&be&controversial&on&a&social&level
• an&organiza*on's&values&may&help&resolving&controversies

Examples)of)Needs
• revenue,(proﬁt,(shareholder(value,(capital
• customer(value
• autonomy,(mastery,(purpose
• connec6on,(collabora6on,(recogni6on
• sustenance,(happiness

Value
Deﬁni&on:"The$importance,$worth$or$usefulness$of$something$for$
sa5sfac5on$of$a$driver.

Value
• value'is'not'an'inherent'property'as'it'only'exists'in'rela1on'to'a'
driver
• value'can'be'quan1ﬁed'by'measuring-the-progression'towards'
sa1sfac1on'of'a'driver
• value'is'not'necessarily'expressed'in'currency'or'1me
• con0nuous-improvement-of-processes-is-focused-on-op0mizing-
the-ﬂow-of-value-through-an-organiza0on

Agreements
We#Respond#to#Drivers#Through#Agreements
Deﬁni&on:!An#agreement#is#an#agreed#upon#guideline,#pa2ern,#process#
or#protocol#designed#to#guide#the#ﬂow#of#value.

Policy
• agreements*are*created*in*order*to*sa/sfy*drivers*
• agreements*are*the*accountability+of+the+circle*that*created*
them
• each*agreement*includes*evalua1on+criteria*and*is*subject*to*
regular+review
• review*dates*are*speciﬁc*to*each*agreement
• agreement*is*reviewed*in*context*to*its*driver

Domain
Defini&on:"A"domain"is"the"area"of"accountability,"influence"and"
autonomy"as"defined"by"a"driver.

Nested&Domains

Drivers'Deﬁne'Domains'of'Accountability
• accountability,applies,to,all,agreements:,organiza5on,,circles,,roles,
and,agreements
• primary,accountability,is,for,sa5sfac5on,of,drivers
• circles,are,accountable,for,their,own,development,,body,of,
agreements,and,work
• everyone,in,an,organiza5on,is,accountable,for,upholding,
organiza5onal,values,and,principles,,and,for,implemen5ng,strategy

Strategy
Deﬁni&on:"A"strategy"is"the"approach"towards"crea1ng"value"within"a"
domain.

Strategy(Statement
• describes)high)level)approach)
• not)a)detailed)plan)or)a)full)product)descrip5on
• includes)a)descrip5on)of)the)intended)outcome)(a.k.a.)"vision")
• is)regularly)reviewed)and)updated)as)necessary
• helps)in)the)decision)whether)to)con5nue)or)change)course)(pivot&
or&persevere)

Part%4%'%Circles%and%Decision%Making

Circles(and(Decision(Making
• Circles
• Consent
• Objec/ons0and0Concerns
• Consent0Decision0Making

Circles
Deﬁni&on:!A"circle"is"a"semi+autonomous,"self+organizing"and"self+
governing"group"of"people"gathering"around"a"driver.

Circles
All#collabora)on#within#an#organiza)on#happens#within#
circles#(permanent#or#temporary)
A"circle...
• ...is%the%basic%building%block%of%an%organiza6on
• ...is%a%group%of%people%gathered%around%a%driver
• ...makes%all%agreements%by%consent
• ...is%accountable%for%its%own%development

Circles(are...
• ...semi%autonomous:$
• each$has$a$unique$driver$and$can$create$value$independently
• ...self%organizing:
• independent$in$organizing$day8to8day8work
• ...self%governing:
• independent$in$crea;ng$strategy$and$agreements

Consent
• Consent(is(the(absence(of(objec0ons
• everyone(aﬀected(by(a(decision(can("live(with(it"
• consent(is(not(consensus(with(unanimity

Consent
• Consent(is(used(to(make(and(evolve(all(agreements(in(a(circle
• Objec7ons(stop(proposals(becoming(an(agreement
• Withholding(objec7ons(could(harm(the(aims(of(a(group(or(
organiza7on
• Being(able(to(raise(objec7ons(at(any(7me(means(that(proposals(
only(need(to(be(good$enough$for$now,$safe$enough$to$try
• Every(agreement(has(a(review(date(

Objec&ons
Deﬁni&on:!An#objec)on#is#a#reason#why#doing#what#is#proposed#
stands#in#the#way#of#(more)#eﬀec)ve#sa)sfac)on#of#an#exis)ng#driver.
In#sociocracy#we#deliberately#seek#objec3ons#as#they#reveal
wisdom#that#can#be#used#to#improve#proposals#and#agreements.#

Objec&ons...
• ...are&gi)s
• ...reveal&wisdom&seeking&expression&into&the&consciousness&of&a&
circle
• ...reveal&opportuni:es&or&impediments
• ...emerge&through&individuals&and&belong&to&the&whole&circle
• we&love&objec:ons&in&sociocracy

Ques%ons(That(Help(to(Validate(Objec%ons
• Does&the&objec,on&relate&to&this&specific&proposal&or&agreement?
• Does&this&objec,on&reveal&how&a&(proposed&or&exis,ng)&agreement...
• ...jeopardizes&the&sa,sfac,on&of&a&driver?
• ...is&in&conflict&with&the&organiza,on's&values?
• ...prevents&or&diminishes&someone's&contribu,on&to&sa,sfying&a&
driver?
• ...can&be&improved&significantly?

Concerns...
• ...are&not&objec-ons
• ...don't&stop&proposals&becoming&agreements&
• ...o6en&contain&wisdom&
• ...can&be&recorded&in&the&logbook
• ...to&further&evolve&agreements
• ...to&set&evalua-on&criteria&(including&review&date)

Consent'Decision'Making
Harves'ng*Objec'ons*to*Capture*Emergent*Wisdom

We#need#to#consciously#balance#equivalence#and#
eﬀec3veness.

• is$a$facilitated$decision$making$process
• deliberately$harvests$reasoned$objec8ons$in$order$to$integrate$
the$wisdom$they$contain$in$proposals$or$exis8ng$agreements
• helps$balance$equivalence$and$eﬀec8veness
• experienced$groups$can$move$quickly$through$the$stages$of$
Consent$Decision$Making$

Rounds
A"group"facilita.on"technique"
to"maintain"equivalence
1. Pick'a'random'person'to'start
• begin'with'a'diﬀerent'person'each'
8me'to'maintain'equivalence
2. Go'around'the'circle,'give'everyone'the'
chance'to'speak
There's'a'number'of'ways'that'experienced'
groups'can'fast'track'certain'rounds.

Consent'Decision'
Making

Methods(for(Resolving(Objec5ons
• ask%proposal%owner
• ask%member%with%objec4on%to%amend%proposal
• facilitator%amends%proposal
• "How%would%you%solve%this"%–%round
• Brief%Dialogue%–%2%or%3%people
• Brief%group%discussion

Methods(for(Resolving(Objec5ons((2)
• refer%to%proposal%forming
• drop%the%proposal
• Re3work%–%Send%back%to%higher%/%lower%circle
• Form%a%temporary%circle%to%review,%research,%revise

Part%5%'%Agreement%Life'Cycle

Argeement(Life,Cycle
• The%Life)Cycle%of%an%Agreement
• Proposal%Forming
• Processing%Tensions
• Con:nuous%Improvement
• Naviga:on%Mee:ngs
• Retrospec:ve

The$Life(Cycle$of$an$Agreement

Responses'to'a'Driver
• response(to(a(driver(always(involves(the(adapta%on(of(an(
exis%ng(agreement,(or(crea%on(of(a(new(one,(including:
• changing(the(plan:(adding(a(task(or(project
• adapta9on(or(crea9on(of(a(role
• crea9on(of(a(new(circle
• driver(review(is(delegated(to(new(circle

Proposal(Forming(Process
Co#Crea'ng*a*Response*to*a*Drivers

Proposal(Forming
1. Iden%fy#the#driver#
2. Consider:#Collect#considera4ons#as#ques4ons#that#reveal#the#
scope#of#the#issue
3. Create:#Gather#ingredients/ideas#for#solu4ons
4. Reﬁne:#Design#a#proposal#from#some#or#all#of#the#ingredients
5. Review:#process#with#consent#decision#making

Proposal(Forming...
• ...is%a%condensed%design%thinking%process
• ...taps%the%collec3ve%intelligence%of%a%group
• ...involves%people%in%co7crea3ng%agreement
• ...fosters%accountability%and%a%sense%of%ownership

Template(for(Agreements
• "tle
• driver:+current+reality+and+needs
• intended+outcome
• review+date
• descrip"on+of+the+agreement
• evalua"on+criteria
• history+and+references+(e.g.+itera"ons,+proposal+forming)

Example(Agreement
Product(development(lead(0mes(op0miza0on.
• Driver:"Current"lead",mes"hinder"us"from"reaching"market"windows"/"
Increase"product"development"process"eﬃciency
• Intended+Outcome:"Product"development"lead",mes"maximum"of"3"months
• Review+Date:"6"months
• Text:"Maximum"number"of"ongoing"parallel"projects"are"two
• Evalua8on+Criteria:"Lead",me"data"from"incep,on"to"release

Tensions
Deﬁni&on:"A"tension"is"the"subjec.ve"experience"of"contradic.on"
between"reality"and"that"which"we"desire"or"an.cipate.

Tensions
• individuals*act*as*sensors*(nerve*endings)*for*the*organiza6on
• tension*is*experienced*whenever*our*percep6on*of*our*
environment*is*in*conﬂict*with:
• that*which*we*desire*or*had*an6cipated
• our*values*(and*principles)
• problems,*challenges,*and*feelings*of*unease*are*all*tensions

Processing*Tensions
**"...in"order"to"avoid"ac.on"bias**
Between&s(mulus&and&response&there&is&a&space.&In&that&space&is&our&
power&to&choose&our&response.&In&our&response&lies&our&growth&and&our&
freedom.!(Viktor!E.!Frankl)
We#consider#why,#how#and#when#to#respond#to#a#s2mulus,#instead#
of#defaul2ng#to#ac2on.

Processing*Tensions

From%Tension%to%Driver
• inves'ga'ng*tension*leads*to*the*discovery*of*drivers
• to*iden'fy*a*possible*driver*behind*a*tension*we:
• describe*the*current*reality
• iden)fy*the*needs*we*associate*with*that*reality*
• in*the*process,*we*resolve*some*tensions*as*misunderstandings
• we*validate*drivers
• some*tensions*are*outside2the2domain*we*can*address*

Breaking)the)Rules
• is$some(mes$necessary...
• ...but$may$come$at$a$cost$to$the$community
• we$are$accountable:
• clean+up$disturbances
• follow+up$ASAP$with$those$aﬀected$or$accountable
• ini1ate+changes$instead$of$breaking$the$rules$repeatedly

Con$nuous'Improvement
Drivers'Are'Subject'to'Regular'Review
• Is$the$descrip-on$of$the$current$reality$correct?
• Do$we$s-ll$associate$the$same$needs$with$the$current$reality?
• Is$the$driver$s-ll$within$our$domain?
• Is$the$driver$s-ll$relevant?

Con$nuous'Improvement

Naviga&on)Mee&ngs
• naviga'on)is)the)process)of)crea'ng)and)evolving)agreements
• Circles)meet)at)regular)intervals)to)govern)themselves

Naviga&on)Mee&ngs
• Opening(Round
• Administra3ve(Ma6ers
• Agenda(Items
• Closing(Round

Naviga&on)Mee&ngs
• Opening(Round
• a.une(to(one(another(and(to(the(driver(the(circle(serves
• Administra8ve(Ma.ers
• consent(to(last(minutes,(dates,(consent(to(agenda

Naviga&on)Mee&ngs
• Agenda(Items
• Short(Reports
• Processing(Tensions
• Proposal(Forming(and(Consent(to(Proposals
• Review(of(Policies,(Strategy(and(Driver
• Deﬁning(Roles(and(SelecAng(People(for(Roles
• Consent(to(Role(Improvement(Plans

Naviga&on)Mee&ngs
• Closing)Round
• evalua0on)of)mee0ng)and)results,)future)agenda)items

Retrospec)ve
Building(in(con+nuous(improvement(of(process
• goal:'reﬂec,on'on'the'past'to'guide'process'improvement
• output:'proposals,'tensions,'drivers'or'tasks
• facilitated'mee,ng'(~1hr)
• regular'intervals'(1>4'weeks)
• adapt'to'situa,on'and'context:'
• 5'phases'with'many'diﬀerent'paEerns'for'each'phase'

Retrospec)ve
A"#me"to"reﬂect"on"process"improvement

5"Phases"of"a"Retrospec/ve"Mee/ng
1. Set&the&Stage&
2. Gather&Data
3. Generate&Insights
4. Decide&What&to&Do
5. Close&the&Retrospec=ve
Ac#vi#es(for(each(phase(can(be(found(at(plans5for5retrospec#ves.com

Part%6%'%People%and%Roles

People&and&Roles
• Role&Deﬁni+on&and&Improvement
• Func+ons&and&Roles
• Selec+on&Process
• Performance&Improvement&Process

People&and&Roles

Role%Deﬁni*on%and%Improvement

People,'Func,ons'and'Roles
• iden&fy)func&ons)required)to)respond)to)a)driver
• if)a)func&on)is)best)addressed)by)a)role:
• deﬁne)the)role
• select)people)for)the)role
• support)development)of)people)in)the)role

Standard'Circle'Func/ons
• facilita(on
• logbook.keeping
• hos(ng.mee(ngs
• representa(on.(double.linking)
• coordina(on.of.opera(ons,.collabora(on.and.improvement

Roles
• role&descrip,ons&can&be&created&using&proposal&forming&
• a&minimal&role&descrip,on&contains:
• driver
• term
• key&responsibili,es
• preferable&skills,&experience&and&quali,es
• cadence&of&eﬀec,veness&reviews

Selec%on(by(Consent

Selec%on
• People'avoid'expressing'interest'before'selec5ons'
• Nomina5ons'are'made'on'the'strength'of'the'reason
• not'according'to'the'majority
• You'can'nominate'yourself'or'pass
• When'harves5ng'objec5ons,'ask'the'candidate'last
• Objec5ons'may'be'resolved'by'amending'the'role'descrip5on'or'by'
nomina5ng'someone'else

Performance*Improvement*Process
Con$nuous'improvement'of'the'eﬀec$veness'of'people'
in'roles
1. Conduct*eﬀec-veness*review
2. Create*development*plan
3. Full*circle*consents*to*development*plan
4. Act*on*the*plan

Performance*Improvement*Process
Eﬀec%veness)Review
• a#process#to#harvest#apprecia.ons,#iden.fy#opportuni.es#for#
improvement#and#evolve#the#role
• the#individual#holding#the#role#ini.ates#the#process#and#begins#
each#step

Eﬀec%veness)Review)-)Steps
1. Invite)people)with)complemen1ng)perspec1ves)to)contribute)to)the)
review,)and)a)facilitator
2. Collect)apprecia1ons
3. Iden1fy)areas)for)improvement
• personal)development
• updates)to)role)descrip1on,)func1on)or)driver)
4. CoAcreate)and)consent)to)a)development)plan

Development*Plan
Contents:
• current(role(descrip/on
• apprecia/ons
• areas(for(improvement
• ac/on(items(to(improve(eﬀec/veness
• evalua/on(criteria
• suggested(amendments(to(role(descrip/on

Part%7%'%Evolving%Organiza1ons

Evolving(Organiza-ons
• Evolu'on,*Waste,*Flow*of*Value
• The*Kanban*Method
• How*to*start
• Scaling*Process*
• Opportuni'es*for*Learning

Evolu&on
Drivers'for'evolu,on
• become'more'eﬀec*ve'as'an'organiza*on
• transi*on'to'Sociocracy'3.0
• ongoing'adapta*on'to'changing'environments
Sociocracy(3.0(has(one(simple(and(itera5ve(change(method(for(all(
three.

Sociocracy(3.0(and(Lean(Thinking
Adop%ng(the(concept(of(value(and(waste(makes(many(tools(and(
ideas(from(lean%produc,on(and(lean%so.ware%development(
available(to(support(organiza%ons(running(on(Sociocracy(3.0:
• value'stream'mapping
• various'strategies'for'elimina2ng'waste
• the'Kanban'Method

Waste&and&Con+nuous&Improvement
Defini&on:!Waste&is&anything&not&necessary&(essen0al)&for&4&or&standing&
in&the&way&of&4&effec0ve&sa0sfac0on&of&a&driver.
• Establishing,a,process,for,ongoing,elimina4on,of,waste,enables,
natural,evolu4on,of,an,organiza4on,towards,greater,
effec4veness
• Adapta4on,to,changing,environment,is,built,into,the,process

Iden%fying*Waste

Iden%fying*Waste
• waste'exist'in'many'diﬀerent'forms'and'on'diﬀerent'levels'of'
abstrac6on
• tasks,'processes,'organiza6onal'structure,'mental'models...
• some'tensions'reveal'waste
• learning'to'iden6fy'waste'is'a'journey
• along'the'way'we'also'learn'how'to'evolve'our'drivers

Flow%of%Value%(end.to.end)

Flow%of%Value
• flow%of%value%is%guided%by%agreements%(explicit%and%implicit),%and%
assump<ons
• work%in%progress%is%considered%waste%as%it%<es%up%resources
• con<nuous%flow%of%value%prevents%accumula<on%of%waste
• it%also%makes%for%shorter%feedback%loops%and%amplifies%learning

Flow%of%Value%and%Flow%of%Informa0on

Flow%of%Value%and%Flow%of%Informa0on
• in$an$effec)ve$organiza)on,$the$flow$of$informa+on$and$
influence$supports$the$con+nuous$flow$of$value
• alignment$is$achieved$and$maintained$through$con)nuous$
improvement$of$policies

Evolu&on()(How?
• start&where&you&are
• progressively&eliminate&waste
• amplify&learning&to&speed&up&evolu6on
• Sociocracy&3.0&uses&The$Kanban$Method&for&evolu6on&(and&also&
for&transi6oning&an&organiza6on&to&Sociocracy&3.0)

The$Kanban$Method$-$Overview
• based'on'lean'ideas,'formulated'by'David'J.'Anderson'
• is'a'change'method'to'op<mize'the'ﬂow'of'value
• starts'with'current'policies:'work'process,'roles,'responsibili<es'
and'<tles
• is'focused'on'incremental,'evolu<onary'change
• relies'on'consent'(or'consensus)'for'crea<ng'and'changing'
agreements

The$Kanban$Method$-$Overview
• creates(a(pull(system
• empowers(close(collabora1on(and(distributed(leadership(in(
circles
• facilitates(cross7func1onal(teams

The$Kanban$Method$-$Steps
Usually'Kanban'is'implemented'in'5'steps:
1. visualize+workﬂow
2. limit+work+in+progress+(WIP)
3. measure+and+manage+ﬂow
4. make+process+Policies+explicit
5. collaborate+on+conCnuous+improvement

Step%1%'%Visualize%Workﬂow
A"Simple"Workﬂow

Step%2%'%Limit%Work%in%Progress

• treat&work&in&progress&(WIP)&as&liability,&not&as&an&asset
• you&want&to&get&things&done,&not&start&things
• limi<ng&WIP&reduces&cycle&<me:&
• Average&Cycle&Time&=&Work&in&Progress&/&Throughput&(LiFle's&
Law)
• limi<ng&WIP&reduces&overload,&fosters&collabora<on&and&
supports&selfIorganiza<on

• limit&WIP&per&column,&per&lane,&per&person&etc.
• create&policies&for&each&limit,&and&visualize&on&the&board
• limits&will&evolve&over&<me,&when&in&doubt,&start&with&"5"

Step%3%'%Measure%and%Manage%Flow
• cycle&'me:*'me*a*work*item*spent*in*the*system
• note*start*and*end*date*on*card
• number*of*blocked*items,*average*block*'me
• mark*blocks*on*cards*and*block*date
• defects/rework
• create*a*cumula've*ﬂow*diagram

• data%is%easy%to%track%(once%per%day%is%enough)
• make%data%visible%next%to%the%board
• use%data%to%iden:fy%issues,%for%managing%ﬂow%and%to%create%and%
evolve%policies

Step%4%'%Make%Agreements%Explicit
• to$op&mize$ﬂow$of$value,$we$need$a$shared$understanding$of$
what$our$agreements$are
• track$all$agreements$(and$their$history)$in$a$logbook
• make$agreements$rela&ng$to$the$task$board$visible$on$or$next$to$
the$boards
• convert$implicit$agreements$or$shared$assump&ons$into$explicit$
agreements

Step%5%'%Collaborate%on%Con/nuous%
Improvement
• develop(shared(understanding(of(work(process(and(relevant(
models(and(theories(in(order(to(collec7vely(iden7fy(
opportuni7es(for(improvement
• co9create(new(agreements(to(improve(ﬂow(of(value
• use(measurements(to(prove(eﬀec7veness(of(agreements

How$to$Start
• start&with&one&circle
• consent&to&using&consent&(and&consent&decision&making)&for&crea7ng&
and&changing&agreements
• consent&to&using&the&Kanban&Method
• start&with&visualizing&the&workﬂow&and&go&from&there
• when&star7ng,&a&driver&is&nice&to&have,&but&not&essen7al
• Kanban&facilitates&discovery&(and&reﬁning)&of&drivers

Next%Steps
• discover*and*reﬁne*drivers
• apply*Sociocracy*3.0*principles*and*pa5erns*to*help*with*
op9mizing*ﬂow*of*value
• spread*to*other*circles

Scaling(Kanban

Amplify(Learning
A"circle"translates"learning"about"work"into"new"and"updated"
agreements"to"op5mize"ﬂow"of"value.
• Daily'Standup'Mee0ng
• Improvement'Mee0ngs
• Retrospec0ves
• Naviga0on'Mee0ngs

Daily&Standup
Speed%up%learning%and%improvement.
• ~15%min
• every%day%at%the%same%2me
• circle%gathers%around%the%task%board
• coordina2on%of%daily%work
• adapta2on%of%agreements%or%crea2on%of%new%agreements%on%the%spot

Improvement*Mee,ng
For$cracking$tougher$nuts.
• length(as(scheduled
• o/en(scheduled(in(the(daily(standup,(or(even(spontaneous
• focused(on(crea7ng(a(solu7on(for(a(speciﬁc(topic(or(impediment

Retrospec)ve
Reﬂect&on&a&longer&period&of&work&and&improve&agreements.
• ~60%min
• cadence,%usually%234%weeks
• helps%seeing%the%bigger%picture,%and%iden=fying%more%complex%
types%of%waste

Retrospec)ve+(2)
• What&can&we&learn&from&the&last&itera2on&of&work?
• Are&our&tools&s2ll&sharp&enough?
• Are&we&s2ll&going&in&the&right&direc2on?

Naviga&on)Mee&ng
Make%sure%nothing%slips%through%the%cracks.
• usually'~60'min
• regular'cadence,'usually'254'weeks
• administra:ve'ma<ers
• scheduled'review'of'agreements
• consent'to'development'plans

Part%8%'%Organiza-onal%Structure

Organiza(onal+Structure
• Circle(Structure
• From(Hierarchy(to(Nested(Domains(of(Circles
• Forming(a(New(Circle
• Pa<erns:(Basic(Pa<erns,(Micro,(Macro(and(Meta(Structures

Organiza(onal+Structure
The$primary$func/on$of$organiza/onal$structure$is$to#enable#
effec+ve#collabora+on$by$aligning$the$flow$of$informa/on$to$
support$the$flow$of$value..$
Organiza(onal+structure+needs+to+evolve+con(nuously!in!order!to!
adapt!to!a!changing!environment.
Semi%autonomous,-self%organizing-and-self%governing-circles!are!
the!basic!building!blocks!for!organiza4onal!structure.

Circle'Structure
• Circles)already)exist)in)every)organiza4on
• Look)at)people)gathered)around)delivering)products)or)
services
• People)may)hold)roles)in)more)than)one)circle

From%Autocracy%to%Nested%Domains%
of%Circles

Forming(a(New(Circle
• a#circle#iden+ﬁes#a#new#driver#and#decides#that#crea+ng#a#new#circle#is#
the#most#eﬀec+ve#response
• a#new#circle#is#formed#and#populated
• either#from#within#the#organiza+on#or#by#recrui+ng#from#the#outside
• the#new#circle#decides#on#it#strategy
• the#new#circle#is#responsible#for#regular#review#of#its#driver,#and#for#
dissolving#itself#should#the#driver#cease#to#exist

Structural(Pa*erns
• Sociocracy)3.0)describes)a)variety)of)pa5erns)to)grow)
organiza:onal)structure
• pa5erns)apply)to)different)layers)of)abstrac:on)(basic,)micro,)
macro)and)meta)
• different)pa5erns)serve)different)drivers
• pa5erns)can)be)combined)as)needed
• more)pa5erns)are)out)there)and)will)be)discovered

Basic&Pa(erns
Connec&ng(two(circles

Representa)ves+(a.k.a+Links)...
• ...stand(for(the(interests(of(one(circle(in(another(circle
• ...are(elected(for(a(limited(term
• ...par3cipate(as(full(members(in(naviga3on(mee3ngs(of(the(other(
circle(and(can:
• raise(items(for(the(agenda
• object(to(agreements(and(proposals

Double'Linking
Facilitate(two+way(ﬂow(of(informa2on(and(inﬂuence
• Two%interdependent%circles%each%elect%a%representa2ve%to%
par2cipate%as%full%members%in%both%circles'%naviga2on%mee2ngs
• can%be%used%to%prevent%tensions%in%hierarchical%structures

Micro&Structures
Connec&ng(circles(for(greater(eﬀec&veness

Nested&Circle
A"pa%ern"for"expanding"func1ons

Delegate'Circle
A"pa%ern"for"coordina.on

Service'Circle
A"pa%ern"for"outsourcing"shared"services

Macro&Structures
Pa#erns(for(organiza.ons
Macro&structures&provide&a&general&strategy&for&the&layout&of&an&
organiza6on.

Peach&Organiza-on
Periphery(drives(the(organiza2on,(the(center(
provides(services

Double'Linked-Hierarchy
A"pa%ern"for"the"early"phase"of"a"
transforma1on

Holding(Circle(and(General(Circle
Separa&ng)stewardship)of)an)organiza&ons)
values,)driver)and)strategy,)from)coordina&on)
of)opera&ons

Meta%Structures
Pa#erns(for(mul./stakeholder(environments
No#organiza*on#is#an#island

Backbone)Organiza/on
A"pa%ern"for"mul./stakeholder"projects"or"
services

Fractal'Organiza-on
A"Pa%ern"for"learning,"coordina1on"and"
alignment"across"organiza1onal"boundaries

Part%9%'%Organiza-ons%and%Values

Organiza(ons+and+Values
• Organiza)ons
• Values
• Organiza)onal0Values0
• Values,0Driver,0and0Strategy

Organiza(ons
In#an#organiza*on#people#come#together#to#
collaborate

Values
Defini&on:!A"value"is"a"principle"of"some"significance"that"guides"
behavior.
• every&individual&has&values&that&are&influenced&by&their&
experiences&and&beliefs
• values&may&define&ethical&limita8ons&to&ac8on

Organiza(onal+Values

• organiza)onal+values+deﬁne%culture+and+set+parameters+for+
ac)on
• values+oﬀer+guidance+to+determine+appropriate+ac)on,+even+in+
the+absence+of+explicit+agreements
• a+group+or+organiza)on+may+choose%to%collec.vely%adopt%values

• deﬁning(values(is(a(strategy(that(supports(eﬀec5veness(of(an(
organiza5on:
• reduces(poten5al(for(misunderstanding
• aligns(decision(making(and(ac5on
• a.racts0new0members,0partners0and0customers(who(are(
aligned(with(the(organiza5on
• values(are(agreements(and(subject(to(regular0reviews

An#Eﬀec(ve#Organiza(on
• values(embrace(Sociocracy(3.0(principles
• collabora6on(follows(principles(and(values

Organiza(ons
An#organiza*on#is#defined#by#its#values,#driver#and#
strategy
• an$organiza*ons$values$define$culture$and$set$parameters$for$
ac(on
• an$organiza*ons$existence$is$mo*vated$by$its$driver
• an$organiza*ons$service$is$defined$by$its$strategy

Organiza(ons
• organiza)ons+are+aligned+towards+values,+driver+and+strategy
• with+Sociocracy+3.0,+purpose+is+implicit+(to+sa)sfy+drivers)
• to+transi)on+towards+Sociocracy+3.0+an+organiza)on:
• iden)ﬁes+values+and+driver+of+the+organiza)on
• incorporates+vision,+mission,+aims+or+objec)ves+in+the+strategy
• seeks+out+drivers+for+all+agreements+(including+circles+and+roles)

Part%10%(%More%Context

More%Context
• Considera+ons,for,Implementa+on
• Cons+tu+on,and,Logbooks
• Agreements,for,entering,and,leaving,organiza+ons,and,circles
• Agreements,on,Compensa+on
• What,about,Management
• Evolu+on,of,Decision,Making
• 5,Good,Reasons,for,Sociocracy,3.0

Cons%tu%on
An#agreement#between#all#the#people#aﬀected#(to#the#people#
within#the#organiza6on#and#to#the#world)
• values
• driver
• strategy
• legal.(bylaws.etc..as.required)

Logbook
Organiza(on:+
• cons&tu&on
• organiza&onal/structure
• agreements/

Logbook
Circle:(
• circle'cons+tu+on
• agreements
• role'deﬁni+ons'and'role'improvement'plans
Personal)logbooks
• roles,(tasks,(personal(policy

Agreements)for)Entering)and)Leaving)an)
Organiza4on
• essen%al(ingredient(for(a(successful(transi%on
• define(the(process(for(entering(the(organiza%on
• define(default(role(for(a(new(member
• define(the(process(for(leaving(an(organiza%on

Agreements)on)Compensa.on
• a#er&a&full&transi.on,&all&salaries&are&open,&so&they&need&to&be&fair
• percep.on&of&fairness&is&speciﬁc&to&organiza.on
• consider&members&and&relevant&stakeholders&(e.g.&investors)
• classic&sociocracy:&everyone&feels&gains&and&losses
• consider&remunera.on&for&changing&roles
• create&strategy&for&transi.oning&towards&new&compensa.on&agreements
What%About%Management%?
Management(as("the(process(or(prac0ce(of(managing"(is(no(longer(a(speciﬁc(role(but(becomes(a(distributed(func0on.
In#a#transi)on#period,#management#roles#may#s)ll#be#present,#but#will#most#likely#gradually#decrease#in#scope#the#more#an#organiza)on's#member#engage#with#sociocracy.#
The$ones$in$management$roles$will$gradually$transfer$relevant$skills$to$the$others,$while$at$the$same$7me$they're$picking$up$opera7onal$skills$from$the$others.

Evolu&on(of(Decision(Making

5"Good"Reasons"for"Sociocracy"3.0

5"Good"Reasons:"open
• Do$with$it$what$you$want
• Take$just$what$you$need
• Remix,$extend$and$adapt$it$as$you$like

5"Good"Reasons:"free
• Free%resources
• no%hidden%fees
• no%cer/ﬁca/ons
• no%small%print!

5"Good"Reasons:"eﬀec.ve
• Principles+and+tools+have+been+tried+and+tested+for+decades+in+
many+organiza8ons.
• need:driven,+value:driven,+customer+focus

5"Good"Reasons:"ac-onable
There's'something'that'YOU'can'use'right'now,'
regardless'of'your'unique'context
Sociocracy(3.0(contains(lots(of(ideas(you(can(try(out(within(your(
area(of(inﬂuence.

5"Good"Reasons:"lightweight
Just%the%essen)als:%Common0sense%prac)ces,%bare0bone%
processes.
• no$stuﬀ$that$gets$in$the$way
• no$busywork

License
For$more$Sociocracy$3.0$resources$visit
h4p://sociocracy30.org
Follow%us%on%twi+er:%@sociocracy30
This%work%by%Bernhard%Bockelbrink%and%James%Priest%is%licensed%
under%the%Crea9ve%Commons%A<ribu9on=ShareAlike%4.0%
Interna9onal%License.%To%view%a%copy%of%this%license,%visit%h<p://
crea9vecommons.org/licenses/by=sa/4.0/.

Bernhard(Bockelbrink!is!an!agile!coach,!trainer!and!consultant!
suppor2ng!individuals,!teams!and!organiza2ons!in!naviga2ng!
complex!challenges!and!developing!a!culture!of!eﬀec2ve,!conscious!
and!joyful!collabora2on.
evolvingcollabora,on.com/00/bernhard.bockelbrink@gmail.com
James&Priest!is!an!interdependent!consultant,!facilitator!and!trainer!
specializing!in!holis4c!organiza4onal!development,!distributed!
leadership!implementa4on!and!complex!systems!op4miza4on.
thriveincollabora-on.com0110james@thriveincollabora-on.com

Introduction to Sociocracy 3.0 Principles

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Introduction to Sociocracy 3.0 Principles