GRIMWOOD'S FIRST LAW OF ORGANISATION:

Every public sector, private sector or benevolent organisation is neither designed, structured, resourced, operated, maintained, nor further developed, to effectively and exclusively perform the declared purpose for which it exists.
 

GRIMWOOD'S SECOND LAW OF ORGANISATION:

Competitive forces cause every organisation to rationalise itself and its activities to a state of being where it becomes incapable of fulfilling its purpose for existence - thus it will ultimately cease to exist.
 

GRIMWOOD'S THIRD LAW OF ORGANISATION:

Every organisation that deems Customers as "stakeholders" does not consider the interests of its Customers before itself - thus it is self-serving.

"Stakeholders" include investors, insurers, creditors, government (taxes), suppliers, contractors, service providers and employees etc. - none of whom provide revenue to the organisation
 

GRIMWOOD'S FOURTH LAW OF ORGANISATION:

An organisation that does not exist to serve its Customers (or Clients) is self-serving.
 

GRIMWOOD'S FIFTH LAW OF ORGANISATION:

An organisation that does not demonstrate respect for its Customers will not have any.
 

GRIMWOOD'S  SIXTH LAW OF ORGANISATION:

An organisation's regard for its Customers (ie that class of persons for whom the organisation exists to serve) may be accurately assessed by comparing:

1. the total number of parking bays provided for its proprietors, managers and staff proportional to the total number provided for its Customers.

2. the relative proximity of those bays to the entrance to the organisation's office.
 

GRIMWOOD'S  SEVENTH LAW OF ORGANISATION:

A person's rank in an organisation is directly proportional to the extent of his or her formal authority or empowerment to make legally binding commitments to those Customers with whom it transacts business and upon whom the organisation depends for its existence.
 

GRIMWOOD'S  EIGHTH LAW OF ORGANISATION:

The "official" status of every person in an organisation, the title of the position they fill, and their remuneration, are based upon their assigned FUNCTIONAL RESPONSIBLITY, determined by the value the organisation assigns to its perceived need for that function offset by the cost of procuring that person in the open labour market.

Hence the FUNCTIONAL RESPONSIBLITY of a person is determined by their market cost.

See Notes 5 and 6
 

GRIMWOOD'S NINTH LAW OF ORGANISATION:

LEADERSHIP ignores all constraints, overcomes impediments to success - irrespective of their nature, risks or consequences, and causes what needs to be done to be done.
 

GRIMWOOD'S TENTH LAW OF ORGANISATION:

Organisational "LEADERSHIP" is the exclusive domain of those who are assigned stewardship to act on behalf of the beneficial interests of an organisation's proprietors - thus managers are only authorised to "manage" and administrators only authorised to "administrate".

LEADERSHIP requires a measurable change from one state of being to another.

Hence "leadership" in management and administration is merely a limited form of organisational empowerment because the state of being cannot change beyond the bounds of organisational functionality.
 

GRIMWOOD'S ELEVENTH LAW OF ORGANISATION:

The devices created and used by an organisation's leaders to protect themselves from the natural (legal, social, political or organisational) consequences of their actions or inactions also prevent them from becoming aware of those cause and effect relationships that impede the organisation's success - and therefore their own success.

Hence the more an organisation's leaders are protected from external scrutiny the more likely the organisation will fail.
 

GRIMWOOD'S TWELFTH LAW OF ORGANISATION:

The most important element for every function of every organisation is COMMUNICATION - of what is required to be done, who is going to do it, when it is to be done, how it is to be done and why it is to be done.

Effective communication is dependent upon the organisation providing training and resourcing to ensure competence and capability to do it - then ensuring it has been done
 

GRIMWOOD'S THIRTEENTH LAW OF ORGANISATION:

A CONTRACT is binding upon two or more parties only to the extent that they both actively commit to honour it.
 

GRIMWOOD'S FOURTEENTH LAW OF ORGANISATION:

An organisation's esteem for its staff and/or its Customers is demonstrated by the quantity, quality and cleanliness of its toilets and amenities

(Most organisations do not provide facilities of any kind for their Customers - which tells its own story.)
 

GRIMWOOD'S FIFTEENTH LAW OF ORGANISATION:

An organisation that declares it is in business to make money will never make it - because Customers only buy goods and/or services - they do not buy money.

No Customer will willingly pay more money (or a tax or a levy) for the sole purpose of enabling a supplier to make more money - particularly when the supplier declares that is the reason for the higher price.
 

GRIMWOOD'S  SIXTEENTH LAW OF ORGANISATION:

PROFIT is a result of doing things well and is simply a measure of the difference between cost and revenue.
 

GRIMWOOD'S  SEVENTEENTH LAW OF ORGANISATION:

A monopoly or oligopily will self-destruct by its own arrogance, greed and self-interest.
 

GRIMWOOD'S  EIGHTEENTH LAW OF ORGANISATION:

A commercial organisation pays more to its employees and the State than it pays to its investors.
 

GRIMWOOD'S  NINETEENTH LAW OF ORGANISATION:

The State ultimately recovers nearly as much from its employees in taxes and charges as it pays them.
 

GRIMWOOD'S  TWENTIETH LAW OF ORGANISATION:

Investors are driven by a desire to obtain something for nothing - ie "return on investment" or "interest",  that someone else pays for - hence investor controlled organisations (including the State) are driven by greed and self-interest.

NOTE:

Note 1.    "Customer" - Definition.

In the above statements, the term "Customer" defines a person, or group of persons, who gives a state or private organisation "Custom" - ie does business with an organisation - and includes those who make enquiries, request information about the organisation and its products (ie - goods and services), enter into contracts with the organisation, rely upon the organisation's integrity for future performance (eg spare parts, service, warranties and guarantees), respond to demands from the organisation, or interface in any way with the selling or delivery elements of the organisation - whether past, present or future.
 

Note 2:     Stakeholders

Although from the perspective of acquiring the desired or agreed product or service, and support of warranties and guarantees, a "Customer" is very much a "stakeholder" in the organisation, it is not realistic (for the future of the enterprise) or equitable to rank a Customer alongside or equally with non-paying or non-revenue creating stakeholders, such as "Investors" or "Insurers".
 

Note 3.    Members

In the case of "not-for-profit" organisations such as mutual societies, clubs, churches, incorporated associations and friendly societies, "Members" can be "Customers" if they purchase goods or services from the organisation, but otherwise they remain "Stakeholders - in a similar relationship to "Investors" in the case of "for-profit" enterprises (corporations).

This is verified by the legally legitimised behaviour, that "not-for-profit" organisations generally do not accede any obligation of rights or privileges from the organisation to an individual member - (even though the Members collectively own it) - unless that Member purchases the organisation's goods or services as a "Customer".

Note 4.    Electors

From the above it can be seen that because "Electors" - ie "Members" - are merely "Stakeholders" in a democratic society, they  have no direct rights to goods or services provided by the State (even though they collectively own it) - unless they pay for them in a "Customer" relationship - eg a discrete "user pay" relationship.

"Pay" does not necessarily mean "money" but can include loss of liberties, freedoms, privacy, rights and privileges in return for a good or service - eg pensions, benefits, subsidies or allowances based upon qualifying class.

However by the device of biased laws and subterfuge founded on Customer ignorance - supported by overwhelming state power - where the (subsidised) fees charged to the "Customer" only cover a portion of the full true cost, the fee-paying "Customer" is considered to only "contribute" to revenue and therefore does not create an entitlement to a formal contractual relationship as would occur with a private business enterprise (corporation).

This is exampled in education, training, hospital, medical, transport and utility services such as postal.

Another more subtle device, used for the supply of water, sewerage, gas, drainage and Local Government, is to charge a "service provision fee" or a "Rate" by which the basic cost of the service is paid for as a tax - usually with no specific entitlement or recourse whatsoever. But since Local Government Rates are a direct tax on existence, it is impossible for a taxpayer to claim a particular right as a "Customer" for or good or service in exchange.

Generally speaking there is no recourse for poor, faulty or non-performance in the good or service unless the Customer is truly a Customer. Often though the supplying organisation will hide behind "standards" as the accepted measure for the good or service - eg water quality.

"Caveat emptor" still prevails.
 

Note 5.    The Public

In Australia, there is a steadily increasing trend for suppliers in Government owned and operated organisations to impose a "disclaimer" upon their unsuspecting Customer.

This includes Departments of the State - ie subsidiaries and subsystems of Executive Government.

One outstanding example is in the communication of LAW from the State to the public. LAW is used as an "Instrument of Governance" by the State and relies for its successful acceptance and implementation by the populace upon communication and interpretation.

However Australian State and Federal Government owned and operated websites that communicate LAW (if you can find them) carry a DISCLAIMER stating that the information provided is not to be relied upon and may not be accurate. This is despite the intention that the populace should comply - because they have been told!!

Government also declares Statute Law to be copyrighted, so users cannot legally communicate the law to others.

Furthermore, the Australian Tax Office - the tax collecting arm of the federal state warns Customers who user the ATO website to pay their taxes that the Customer is liable for any problems caused by such use.

This is the State versus the individual - one on one.

A remarkable achievement in a self-proclaimed "democratic" free society.
 

Note 6:    Organisational Function

Cost driven circumstances encourage internal promotions - subject to application of the "Peter Principle", which states that "in an organisation a person is ultimately promoted to their level of incompetence".

These cost driven circumstances also encourage organisational FUNCTIONS to be limited by their cost to the organisation of acquiring an individual having sufficient capability and competency to fill that function.

These cost driven circumstances also encourage organisational design and structures to be based upon the relative cost to the organisation of the incumbents needed to service each FUNCTION - hence an organisation will incrementally redesign and restructure itself into incompetence.
 

Note 7:    Functional Responsibility

To effectively serve an organisation - ie to maximise benefit to an organisation:

A person performing a FUNCTION must be assigned FUNCTIONAL RESPONSIBILITY for the performance and outcomes of that function

FUNCTIONAL RESPONSIBILITY is consequent upon FUNCTIONAL AUTHORITY to act autonomously without reference to higher authority

FUNCTIONAL AUTHORITY is consequent upon FUNCTIONAL EMPOWERMENT

FUNCTIONAL EMPOWERMENT is consequent upon FUNCTIONAL FREEDOM

FUNCTIONAL FREEDOM is consequent upon:

• defined FUNCTIONAL SCOPE
• defined SPAN OF FUNCTIONAL CONTROL
• defined LIMITS OF AUTHORITY
• defined EMPOWERMENT

But FREEDOM incurs RESPONSIBILITY

RESPONSIBILITY demands COMPLIANCE within the limits set by EMPOWERMENT

NON-COMPLIANCE incurs ACCOUNTABILITY

ACCOUNTABILITY incurs CONSEQUENCES
 

Thus,

without CONSEQUENCES mediocrity and the status-quo will be preserved.
 
 
 

"If we keep doing what we’ve always done, we will continue to get what we’ve always gotten."           (Steve Bhaerman)

© NOTICE:

INTELLECTUAL PROPERTY COPYRIGHT © D.R.GRIMWOOD 1988 - ALL RIGHTS RESERVED.

Intellectual property and copyright in the management technology concepts expressed in this website remains wholly and exclusively with the author - all rights reserved.
 
 
 

Page last updated 8 June 2007

This page is located at http://www.webace.com.au/~electron/tubes/eelaws.html