For an introduction to this expanding meta-thread see Integral Anti-Capitalism pt I. We continue here because we have, hilariously, exceeded this website's capacity...

LAYMAN PASCAL

I agree that holacracy should be singled out for special investigation. The provocative notion that we are dramatically over-emphasizing the need for "conscious leadership" pertains very pertinently to this discussion. Robertson, like ourselves, is pointing to the fact that business (organizations) which integrally improve the interiors and cultural
spirit of their participants are still predisposed to certain outcomes as a result of their actual structural habits of communication and their specific decision-making protocols.
His notion of a constantly self-correcting dynamic organization drawing upon the capacity of individuals to act as tension-sensors relative to the "evolutionary purpose" of the organization is compelling and admirable.

More important is simply that he is making a stand and making an attempt to construct a protocol (constitution). I am not fully versed in the 4.0 version of the holacracy constitution but we should get deeper into some of these proposals.  

Given the level of your current knowledge of their protocols, what would you want to change or add in order to ethically and functionally empower this approach even more?

THEURJ

First some housekeeping in providing links in part I to comments on holacracy: their website, comment 1, comment 2, comment 3 (and 3 more on p. 7), and the first 7 comments on p. 8

I’m not yet familiar enough with holacracy to know it might need. So for now I’ll ask questions.  From p. 8 there was a blog post on ownership and the model might (but not necessarily) include outside capital investors. I asked:

“One question immediately pops up on outside investors. Are there limits on the amount of outside capital investment? What if their investment is such that without it the company could not financially survive? And/or depends on it for start-up? Then such investment would control the company, like it or not. If you don't do what I say I'm taking my ball and going home. No ball, no ballgame. Not the same as a mortgage or loan company.”

Granted why such investors are included on the Board there are other stake-holders to balance their input. But are there rules about which outside individuals or companies can invest? Do they have to have similar values like triple bottom lines instead of just profit for their investors? Can a Goldman Sachs provide start-up capital? Or Romeny’s ex-firm, Bain? Just wondering, so perhaps it’s time for those out there more familiar with the system to engage us?

LAYMAN PASCAL

I appreciate your inquiry about the potential influence of outside investors in holacratic systems. Perhaps they have a good protocol for that. Or perhaps not. In general, all "smart groups" need to comprehend and anticipate the distortion influence that donors and enablers wield. The psychology of human nature shows that we may believe ourselves to be quite sturdy and impartial while we are really bending in the breeze.

One of the concerns I had while perusing the holacracy constitution was about the voting procedure for filling roles. There are many parts of their approach which impress. In particular I would like to make not of the necessity to place constraints upon discussion. When the mention of a concern is met with the mention of counter-concerns then the intelligence and practical efficacy of discussions drops dramatically. A highly suspicious mind might even supposed that the human hive is encouraged to engage in the constant casual usage of dysfunctional conversation. So their use of controlled phases in both operational and hiring decisions is admirable. However, their actual voting protocol seems (to my naive glance) to be based on a model of transparent majority. A sophisticated "show of hands".

So this may be an area in which holacratic principles can be expanded to include a more thorough use of "secret ballot" and "averaged ranking".

The former often seems like a show of bad faith and an invitation to covert dangers... but these are considerably outweighed by the liberation of individual intelligence from any conscious or unconscious concerns about the social consequences of their input.

The latter evades a primitive "first past the post" approach in which our intelligence is functionally limited to a yes/no determination about each candidate relative to other candidates.

Another thing I admire about holacracy is that it represents a functional procedure and culture in which participants would appear to become better participants by participating. Their capacity and ethical commitment to the good of the organization through its evolving protocols should be an increasing trend. Any smart group needs to be arranged so that even people who try to distort the results will find their capacity and will to do this reducing over time. Replaced by the inspirational efficacy of the group.

This brings me to another issue relative to voting, both in political and economic groups. That is the relative absence of specific instructions about how to translated ones feelings into a vote-mark. This is almost completely unaddressed in terms of popular elections. To discuss it even seems insidious to some people who fear coercion (and/or wish to maintain the current material power structures).

Protocols should have at least a clear suggestion about how to locate both "gut" and "intellectual" data within ourselves and convert that into a numerical value which can be contributed to a group decision. A lack of clarification at this critical junction may act as an invisible source of drag upon an otherwise very functional group organism.

It might even be possible to define an "integral-level organizational set up" for business or politics by simply compiling a list of areas in which intelligence and capacity are distorted. We might recall that most of Wilber's philosophy has emerged in levels correlated to his discovery of "fallacies" or "basic errors". Integral proposals about business and society could be all over the map unless there is a reasonable set of constraints that make sure they fall in the most lucrative zone.

So other than the potential influence of outside "helpers" and "donors" what other sources of distortion or inhibition do you see going mostly unaddressed in otherwise progressive groups?

THEURJ

My next question of holacracy is who came up with it? It seems to be the pet project of Brian Robertson, his own brainchild. I'm wondering if that is so of if it was a community or P2P project? I mean, the structure of holacracy itself calls for distributed decision-making but was the creation of holacracy itself derived from this process or mostly dictated by Robertson? I've yet to find an answer at the site so I posed this question to them via contact info. I'll provide the response if/when received. I think the answer is pivotal in determining if this thing called holacracy arose from its own medicine.

LAYMAN PASCAL

I look forward that answer if it is forthcoming. The notion of self-arising systems is something which haunts the periphery of these discussions. My fantasy is that we can devise a group protocol which so reliably and simply exceeds the cognitive capacity of the individual participants that it would be foolish to predetermine the purpose and nature of the group. Collectively we could a better job of determining what kind of a collective we should be. "Smartgroups" of this kind could then spread through the world in a very radical social uprising. How possible that is remains uncertain...

As I understand holacracy, the different companies making use of it are assumed to engage in their own mutational modifications of the "constitution". So even if Brian wrote the whole thing out in his bathtub it still retains an open source quality. The answer to whether its current forms are or are not the result of distributed decision-making is almost certainly: sort of.

One of the reasons the holacracy approach is so amenable to business organization is that it seems to depend upon the functional axis of a specified purpose. The aim is somewhat pregiven -- our job is to sell widgets or maximize share-holder profit, etc. His use of the metaphor of the sensors on an airplane derives from a mechanism that is assumed to be designed for a well-known purpose.

My question would be whether or not this "aim" is a necessarily functional element in generating enhanced organizational capacity? Or whether it is simply an artifact of the need to make these systems serve a relatively conventional marketplace task?

THEURJ

Your suggestion of a smart group that arises creatively from a continually evolving set of parameters seems to be the intent and practice of holacracy. As to the organizational purpose of Holacracy One, it seems to have multiple bottom lines including but not limited to profit. For example, see this post in the comments where I noted that the top to bottom pay ratio is 3 to 1, and quoted some of those multiple purposes:

"With Holacracy at play, the game is entirely different: with the decentralization of authoritythe separation of people and role, and the dynamic evolution of those roles, we end up with a situation that looks more like free agents going about their work with no central planning. There might not even be a single person who knows about everything you do."

This sounds much more like the sort of emerging P2P organizational structure discussed throughout this thread. And also of significance in the post following this article where The Integral Center of Boulder has "voluntarily relinquished their rights to control their company as owners. Instead, they have ceded authority to a purpose-centered governance process called Holacracy, a model that distributes authority across the organization and gives primary power to the organization itself."

These are indeed advances over the kind of conscious capitalism promoted and AQALly packaged for sale at I-I.

LAYMAN PASCAL

(comment pending)

This is an interesting moment. Apparently Amazon.com is experimenting with a version of holacracy as well. It clearly represents a theoretical advance over the typical kind of conscious capitalism which combines advanced sentiments with a potentially dangerous and uninspected ideological allegiance to more primitive routines of social organization and wealth production. Yet we cannot know the results of the experiment in advance.

I have tremendous optimism about emergent p2p organizational structures. Experimentation is utterly necessary and should be strongly encouraged. I am also very hopeful that advances can be made in terms of quantification. This is very central in my thinking lately.

It seems that experimental protocols for advances social organization systems suffer from the lack of a quantifiable evaluation of their respective degrees of "collective intelligence". Most people are drawn to such possibilities by ethical and aesthetic criteria which do no necessarily persuade the world. So I would love to see experimentation supplemented by the attempt to devise a metric for estimating the intelligence of a social organization protocol.

Along similar lines, my "tetrabucks" type notions represent the possibility/necessity to structure our currency at a level that correlates to advanced P2P organizational structures and post-pluralistic consciousness.

The potential of an evil holacracy has hardly been broached. If it works -- it works. Other than simply the tendency of less complex people not to use more complex systems, and the tendency of more complex systems to complexify their participants, there needs to be some inter-organizational structures which incline all organizations int he direction of broad human well-being. It is my assertion that as long as primary areas of value remain outside monetization the actions of groups trying to utilize official social credits will constantly become unstable.

So I am imagining a line leading from pathological capitalism to standard capitalism to conscious capitalism to trans-capitalist network organizations to such organizations bound together by a integrated set of metrics for determining the intelligence of groups and splicing together (at least) four broad domains of human value.

Along these lines -- how will we decide whether holacratic integral business is working better?

THEURJ

As to how we determine whether alternative economic paradigms are 'working,' I'd suggest that even by the standards of typical business democratic workplaces like co-ops are successful. If by that we mean the organization runs smoothly, has low employee turnover, high employee satisfaction, makes a profit or surplus over operating costs, and other such typical measures. Plus they fulfill their stated purposes as expressed in theRochdale principles, like community education, cooperation, democratic control, etc.

I'd say the same applies to holacracy. They also have to accomplish the usual business parameters like above but also meet stated principles like in their constitution. Given Robertson's business acumen I'm sure at the site he has precise and measurable indices to track such progress, though I didn't try to find them as yet.

LAYMAN PASCAL

(comment pending)

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We now live in the post-truth society.  Here's a piece at the Guardian on How Technology Disrupted the Truth.  Excerpt:

"Facebook, which launched only in 2004, now has 1.6bn users worldwide. It has become the dominant way for people to find news on the internet – and in fact it is dominant in ways that would have been impossible to imagine in the newspaper era. As Emily Bell has written: “Social media hasn’t just swallowed journalism, it has swallowed everything. It has swallowed political campaigns, banking systems, personal histories, the leisure industry, retail, even government and security.”

Bell, the director of the Tow Centre for Digital Journalism at Columbia University – and a board member of the Scott Trust, which owns the Guardian – has outlined the seismic impact of social media for journalism. “Our news ecosystem has changed more dramatically in the past five years,” she wrote in March, “than perhaps at any time in the past 500.” The future of publishing is being put into the “hands of the few, who now control the destiny of the many”. News publishers have lost control over the distribution of their journalism, which for many readers is now “filtered through algorithms and platforms which are opaque and unpredictable”. This means that social media companies have become overwhelmingly powerful in determining what we read – and enormously profitable from the monetisation of other people’s work. As Bell notes: “There is a far greater concentration of power in this respect than there has ever been in the past.”

Publications curated by editors have in many cases been replaced by a stream of information chosen by friends, contacts and family, processed by secret algorithms. The old idea of a wide-open web – where hyperlinks from site to site created a non-hierarchical and decentralised network of information – has been largely supplanted by platforms designed to maximise your time within their walls, some of which (such as Instagram and Snapchat) do not allow outward links at all."

Bauwens on the phase transition to a commons economy. See his Huffpost blog post here. I appreciate how the external production system precedes the internal political/social changes, a point I've reiterated. That the Sanders movement almost succeeded is an indication of how close the latter is starting to catch up, given the Millennials participation. I especially liked the following excerpt showing how the new economic model is gaining momentum by how much capitalism is having to appropriate it, like Uber etc. But the time is coming when the new structure and overtake the old structure. See the article for much more.

"Political and social revolution is preceded by the emergence, within the old system, of the new productive system and its value logic. Not the other way around, as the socialist and Marxist tradition has claimed. Today, in the very womb of capitalism, the new mode of production, the new way of value creation and distribution, is already emerging and growing, but under the domination of the old system still, but, as its logic is fundamentally different of the logic of capital, it cannot possibly be subsumed forever, and prepares the ground for a structural transformation. This structural transformation, or ‘phase transition’, will make the emergent subsystem into the new dominant logic."

Since LP and I spent considerable time discussing holacracy in the main part, and I followed up quite a bit in the commentary, here's some more news on it. See a bad review of it here. It's pretty much the same with the AQAL model, because like holacracy it's a top-down ideology obsessed with complexity. When issues arise from the ground, including people, they have to be bent to fit the model instead of checking to see where the model fails.

Then see this article on a different approach:

"Beating bureaucracy isn’t just one more re-org. What’s needed is an approach that’s emergent, collaborative, iterative, and inescapable; one that 'rolls up' rather than 'rolls out;' something more like an open innovation project and less like Mao’s cultural revolution. 

"In recent years, organizations as diverse as Ford, Netflix, and Google have used hackathons to invent new products and solve thorny operational problems. (Facebook’s ubiquitous 'Like' button grew out of a hackathon.) In a hackathon, teams compete to come up with novel solutions and the most promising are then fast-tracked to implementation. [...] The output of such a conversation wouldn’t be a single, elaborate plan for uprooting bureaucracy, but a portfolio of risk-bounded experiments designed to test the feasibility of post-bureaucratic management practices."

New ride-sharing alternative in Austin. See, the sharing economy can actually be about sharing without a giant capitalistic corporation being the reigning paradigm. A teaser excerpt:

"Austin demonstrates how the sudden loss of an unregulated would-be monopoly (or an Uber, Lyft duopoly in this case) can create an opportunity for people to re-imagine how these services can be better designed and governed to serve the public. It's also a case study in how cities can encourage city-scale enterprises to be democratically-owned and operated by locals for locals, ensuring that the public interest comes before shareholders' interests."

See this article on homo economicus. It is the model most economists use to describe human economic activity. Given  the findings below then basically these economists are at the intellectual level of chimps. No surprise there. Per the article:

"In our work we’ve tried to test some of the basic predictions made by the Homo economics model using some simple tools from behavioral economics applied across a diverse swath of human societies. Not only do we find that the Homo economicus predictions fail in every society (24 societies, multiple communities per society), but instructively, we find that it fails in different ways in different societies. Nevertheless, after our paper “In search of Homo economicus” in 2001 in the American Economic Review, we continued to search for him. Eventually, we did find him. He turned out to be a chimpanzee. The canonical predictions of the Homo economicus model have proved remarkably successful in predicting chimpanzee behavior in simple experiments. So, all theoretical work was not wasted, it was just applied to the wrong species."

Kudos to Austin for creating their own ride sharing program.  It's not that hard.  Pat Murphy of Community Solutions outlined the process back in 2007 with "The Smart Jitney: Rapid, Realistic Transport."

Per wikipedia homo economicus means: "The concept in many economic theories portraying humans as consistently rational and narrowly self-interested agents who usually pursue their subjectively-defined ends optimally."

From "The future of economics":

"In the early 21st century, just as in the late 19th, economics in general makes the assumption that individuals operate autonomously, isolated from the direct influences of others. A person has a fixed set of tastes and preferences; when choosing from a set of alternatives, he or she compares the attributes of those alternatives and selects the one which most closely corresponds to his or her preferences."

"The social and economic worlds of the 21st century are simply not at all like this. In the real world we are far more aware than ever before of the choices, decisions, behaviours and opinions of other people. The choices people make, their attitudes and their opinions are influenced directly by others and the medium across which this influence spreads is social networks. Commonly, social networks are thought of as purely a web-based phenomenon: sites such as Facebook, Twitter and MySpace. These online social networks indeed can influence behaviour, but it is real-life social networks – such as family, friends, colleagues – that are even more important in helping us shape our preferences and beliefs, what we like and what we do not like."

homo economicus is very much a part of the mental-rational consciousness structure.  See Peter Pogany's ideas about economics in the fifth integral arational structure, summarized here:

http://wiki.p2pfoundation.net/Mutation_of_Economics_into_the_Fifth_...

It seems many think that the homo economicus (HE) of capitalism isn't just a normal development of evolution but rather a wrong turn, a dysfunction or regression. The article noted that they didn't find HE among humans but rather chimps, so that seems to add to this notion of capitalism being a devolution not even to earlier humanity but to earlier species.

Pogany's inclusion of thermodynamics in economics reminds me of this post on Rifkin.

Speaking of devolution, see this article on that phenomenon in the GOP, what it used to be compared to what it is now. In Eisenhower's time their platform increased minimum wages, expanded social security, promoted unions, increased hospital construction, increased medical research, expanded federal aid to the poor and public housing, ended racial discrimination in the federal workforce, expanded immigration, cut the military budget while still effectively conducting war and so on. Today's GOP is the complete antithesis to all of the above programs.

The evolution of capitalism:

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