Sociocracy, also called dynamic governance, is a system of governance which seeks to create harmonious social environments and productive organizations. It is distinguished by the use of consent, rather than majority voting, in decision-making, and of discussion by people who know each other.
The Sociocratic Circle-Organization Method (SCM) was developed in the Netherlands by electrical engineer and entrepreneur Gerard Endenburg and is based on the work of peace activists and educators Betty Cadbury and Kees Boeke and is a recent instantiation of the approach.
Essential principles
Endenburg's policy decision-making method was originally published as being based on four essential principles, all in order to emphasize that the process of selecting people for roles and responsibilities was likewise subject to the consent process. As explained below, however, it is now taught through the method of three principles, as Endenburg had originally developed:
Consent governs policy decision making (principle 1)
Decisions are made when there are no remaining "paramount objections", that is, when there is informed consent from all participants. Objections must be reasoned and argued and based on the ability of the objector to work productively toward the goals of the organization. All policy decisions are made by consent, although the group may consent to use another decision-making method. Within these policies, day-to-day operational decisions are normally made in the traditional way. Generally, objections are highly valued to hear every stakeholder's concern. This process is sometimes called "objection harvesting". It is emphasized that focusing on objections first leads to more efficient decision making.
Organizing in circles (principle 2)
The sociocratic organization is composed of a hierarchy of semi-autonomous circles. This hierarchy, however, does not constitute a power structure as autocratic hierarchies do, instead resembling a horizontal association, since the domain of each circle is strictly bounded by a group decision. Each circle has the responsibility to execute, measure, and control its own processes in achieving its goals. It governs a specific domain of responsibility within the policies of the larger organization. Circles are also responsible for their own development and for each member's development. Often called "integral education," the circle and its members are expected to determine what they need to know to remain competitive in their field and to reach the goals of their circle.
Double-linking (principle 3)
Individuals acting as links function as full members in the decision-making of both their own circles and the next higher circle. A circle's operational leader is by definition a member of the next higher circle and represents the larger organization in the decision-making of the circle they lead. Each circle also elects a representative to represent the circles' interests in the next higher circle. These links form a feedback loop between circles.
At the highest level of the organization, there is a “top circle”, analogous to a board of directors, except that it works within the policies of the circle structure rather than ruling over it. The members of the top circle include external experts that connect the organization to its environment. Typically these members have expertise in law, government, finance, community, and the organization's mission. In a corporation, it might also include a representative selected by the shareholders. The top circle also includes the CEO and at least one representative of the general management circle. Each of these circle members participates fully in decision-making in the top circle.
Elections by consent (principle 4)
This fourth principle extends principle 1. Individuals are elected to roles and responsibilities in open discussion using the same consent criteria used for other policy decisions. Members of the circle nominate themselves or other members of the circle and present reasons for their choice. After discussion, people can (and often do) change their nominations, and the discussion leader will suggest the election of the person for whom there are the strongest arguments. Circle members may object and there is further discussion. For a role that many people might fill, this discussion may continue for several rounds. When fewer people are qualified for the task, this process will quickly converge. The circle may also decide to choose someone who is not a current member of the circle.
The "three principles"
In the first formulations of the Sociocratic Circle-Organizing Method, Endenburg had three principles and regarded the fourth, elections by consent, not as a separate principle but as a method for making decisions by consent when there are several choices. He considered it part of the first principle, consent governs policy decisions, but many people misunderstood that elections of people to roles and responsibilities are allocations of resources and thus policy decisions. To emphasize the importance of making these decisions by consent in the circle meetings, Endenburg separated it into a fourth principle.
Consent vs. consensus
Sociocracy makes a distinction between "consent" and "consensus" in order to emphasize that circle decisions are not expected to produce "a consensus". It does not mean agreement or solidarity. In sociocracy consent is defined as "no objections", and objections are based on one's ability to work toward the aims of the organization. Members discussing an idea in consent based-governance commonly ask themselves if it is "good enough for now, safe enough to try". If not, then there is an objection, which leads to a search for an acceptable adaptation of the original proposal to gain consent.
Sociocratisch Centrum co-founder Reijmer has summarized the difference as follows: "By consensus, I must convince you that I am in the right; by consent, you ask whether you can live with the decision".
Interdependence and transparency. The principles are interdependent and the application of all of them is required for an organization to function sociocratically. Each one supports the successful application of the others. The principles also require transparency in the organization. Since decision-making is distributed throughout the organization, all members of the organization must have access to information. The only exception to this is proprietary knowledge and any information that would jeopardize the security of the organization or its clients. All financial transactions and policy decisions are transparent to members of the organization and to the organization's clients.
In addition to the principles, sociocratic organizations apply the circular feedback process of directing-doing-measuring to the design of work processes, and in business organizations, compensation is based on a market rate salary plus long-term and short-term payments based on the success of the circle. The operational practices of sociocratic organizations are compatible with the best practices of contemporary management theory.
SOCIACRACY SEMINAR, GREAT WATCH!!
https://youtu.be/NkXOXeD50wQ
The Sociocratic Circle-Organization Method (SCM) was developed in the Netherlands by electrical engineer and entrepreneur Gerard Endenburg and is based on the work of peace activists and educators Betty Cadbury and Kees Boeke and is a recent instantiation of the approach.
Essential principles
Endenburg's policy decision-making method was originally published as being based on four essential principles, all in order to emphasize that the process of selecting people for roles and responsibilities was likewise subject to the consent process. As explained below, however, it is now taught through the method of three principles, as Endenburg had originally developed:
Consent governs policy decision making (principle 1)
Decisions are made when there are no remaining "paramount objections", that is, when there is informed consent from all participants. Objections must be reasoned and argued and based on the ability of the objector to work productively toward the goals of the organization. All policy decisions are made by consent, although the group may consent to use another decision-making method. Within these policies, day-to-day operational decisions are normally made in the traditional way. Generally, objections are highly valued to hear every stakeholder's concern. This process is sometimes called "objection harvesting". It is emphasized that focusing on objections first leads to more efficient decision making.
Organizing in circles (principle 2)
The sociocratic organization is composed of a hierarchy of semi-autonomous circles. This hierarchy, however, does not constitute a power structure as autocratic hierarchies do, instead resembling a horizontal association, since the domain of each circle is strictly bounded by a group decision. Each circle has the responsibility to execute, measure, and control its own processes in achieving its goals. It governs a specific domain of responsibility within the policies of the larger organization. Circles are also responsible for their own development and for each member's development. Often called "integral education," the circle and its members are expected to determine what they need to know to remain competitive in their field and to reach the goals of their circle.
Double-linking (principle 3)
Individuals acting as links function as full members in the decision-making of both their own circles and the next higher circle. A circle's operational leader is by definition a member of the next higher circle and represents the larger organization in the decision-making of the circle they lead. Each circle also elects a representative to represent the circles' interests in the next higher circle. These links form a feedback loop between circles.
At the highest level of the organization, there is a “top circle”, analogous to a board of directors, except that it works within the policies of the circle structure rather than ruling over it. The members of the top circle include external experts that connect the organization to its environment. Typically these members have expertise in law, government, finance, community, and the organization's mission. In a corporation, it might also include a representative selected by the shareholders. The top circle also includes the CEO and at least one representative of the general management circle. Each of these circle members participates fully in decision-making in the top circle.
Elections by consent (principle 4)
This fourth principle extends principle 1. Individuals are elected to roles and responsibilities in open discussion using the same consent criteria used for other policy decisions. Members of the circle nominate themselves or other members of the circle and present reasons for their choice. After discussion, people can (and often do) change their nominations, and the discussion leader will suggest the election of the person for whom there are the strongest arguments. Circle members may object and there is further discussion. For a role that many people might fill, this discussion may continue for several rounds. When fewer people are qualified for the task, this process will quickly converge. The circle may also decide to choose someone who is not a current member of the circle.
The "three principles"
In the first formulations of the Sociocratic Circle-Organizing Method, Endenburg had three principles and regarded the fourth, elections by consent, not as a separate principle but as a method for making decisions by consent when there are several choices. He considered it part of the first principle, consent governs policy decisions, but many people misunderstood that elections of people to roles and responsibilities are allocations of resources and thus policy decisions. To emphasize the importance of making these decisions by consent in the circle meetings, Endenburg separated it into a fourth principle.
Consent vs. consensus
Sociocracy makes a distinction between "consent" and "consensus" in order to emphasize that circle decisions are not expected to produce "a consensus". It does not mean agreement or solidarity. In sociocracy consent is defined as "no objections", and objections are based on one's ability to work toward the aims of the organization. Members discussing an idea in consent based-governance commonly ask themselves if it is "good enough for now, safe enough to try". If not, then there is an objection, which leads to a search for an acceptable adaptation of the original proposal to gain consent.
Sociocratisch Centrum co-founder Reijmer has summarized the difference as follows: "By consensus, I must convince you that I am in the right; by consent, you ask whether you can live with the decision".
Interdependence and transparency. The principles are interdependent and the application of all of them is required for an organization to function sociocratically. Each one supports the successful application of the others. The principles also require transparency in the organization. Since decision-making is distributed throughout the organization, all members of the organization must have access to information. The only exception to this is proprietary knowledge and any information that would jeopardize the security of the organization or its clients. All financial transactions and policy decisions are transparent to members of the organization and to the organization's clients.
In addition to the principles, sociocratic organizations apply the circular feedback process of directing-doing-measuring to the design of work processes, and in business organizations, compensation is based on a market rate salary plus long-term and short-term payments based on the success of the circle. The operational practices of sociocratic organizations are compatible with the best practices of contemporary management theory.
SOCIACRACY SEMINAR, GREAT WATCH!!
https://youtu.be/NkXOXeD50wQ
