The Resource Bargain – The Root Cause of Organisational Pain

Prefer to watch on video rather than read?  Click here – video is 6 mins, with captions.

The world of work is chaotic and filled with anxiety.  We can track most of that back to one source – to the one thing that is rarely done well in most organisations – the Resource Bargain.

The term the ‘Resource Bargain’ comes from Stafford Beer (1926-2002), legend in systems thinking and the creator of the Viable System Model (VSM), one of the best ways to diagnose and change organisations (or any system) so they work better.

Improve Performance – Use Limits Not Targets

(Prefer to watch on video than read?  Then just click here – 5 mins, with captions.  Previous videos here BTW).

It’s very standard to set some targets when performance is in need.  Often smoke-screened by calling them KPIs (forgetting what the ‘I’ stands for).  Maybe even ‘aggressive targets’.

Yet…they don’t always get the hoped-for result, for a simple reason – targets aren’t how things work in the real world!

The Conventional Way

Here’s how we’d typically do it.  Take this graph, with Performance on the vertical and Time on the horizontal, with the horizontatal dotted target line.  And let’s assume higher is better.