Home » Introduction » 1D. The Outcomes Needed from a New Operating System
1D. The Outcomes Needed from a New Operating System
1D1. The outcomes that today’s organizations need from an OS can be summarized by Alignment, Empowerment, Integration, Optimization, and Culture (AEIOC).
1D2. Table 1.1. Needed AEIOC Outcomes and Descriptions.
Outcome
Description of Outcomes Needed
A – Alignment
Everyone is aligned in two dimensions: around serving the external customer and around moving the organization towards its collective vision (strategic goals).
E – Empowerment
The organization consists of leaders and individuals who are empowered and self-directed.
I – Integration
The organization pulls all the elements of each organizational segment together and manages them as a whole.
O – Optimization
The organization as a whole is operating as effectively and efficiently as possible.
C – Culture
There is a proactive culture of success.
1D3. VM 1.0/MM 1.0 AEIOC Outcomes
1D3i. Instead of producing the needed outcomes described above, VM 1.0 and MM 1.0 actually produce the following outcomes:
1D3ia. Table 1.2. AEIOC Outcomes from VM 1.0/MM 1.0 OS.
Outcome
Description of Outcomes Produced by VM 1.0/MM 1.0
A – Alignment
Everyone is aligned in one dimension: around vertical goals.
E – Empowerment
None. VM 1.0/MM 1.0 does not empower leaders or professionals. Because the OS is based on authority, each level feels disempowered by the level above.
I – Integration
Integration is vertical. Functions operate as vertical silos with outputs “thrown over the wall” to the next function.
O – Optimization
Individuals are optimized over teams. The parts (functions) are optimized instead of the whole (the overall organization).
C – Culture
There is a reactive culture of failure because the entire system is set up to respond to what goes wrong instead of ensuring that things go right.
1D3ii. The OS that is optimized for operating in a two-dimensional organization is called Matrix Management 2.0 (or just MM 2.0).
