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© Happy Melly ♦ version 1.00 ♦ management30.com
Manage the
system, not
the people
These are the typical work-related
questions around the world:
• How can we motivate our workers?
• How can we change the organization’s culture?
• How can we change the mindset of managers?
• How can we get teams to take responsibility?
• How can we improve teamwork and collaboration?
• How can we get managers to trust their teams?
• How can we make the business more agile?
Most organizational change
questions have the same form:

“How can we change other
people?”
We get better, happier
organizations by changing
ourselves instead of others.
When people don’t focus on
improving themselves, is it
any wonder they’re always
complaining about each
other?
For many organizations, 

a common practice is
that they are managed
like machines. We call
this Management 1.0. In
this style of
management, leaders
assume that
improvement of the
whole requires
monitoring, repairing,
and replacing the parts.
It was engineers who
developed scientific
management, the
command-and-control
style of leadership that
was quite successful in
the 20th century.
Engineers developed
most management
frameworks with upfront
design, top-down
planning and command-
and-control structures
and processes.
Frameworks work well
with predictable,
repeatable tasks 

(by machines).
They don’t work 

with creativity,
innovation and
problem-solving 

(by humans).
Bad idea:
Moving people
between
departments as 

if they are
replaceable parts.
Command-oriented, low-
freedom management is
common because it’s
profitable, it requires less
effort, and most managers are
terrified of the alternative.

- Laszlo Bock, Work Rules!
Do you know
examples of
Management 1.0?
The misery of workers
worldwide (managers
included) is
personified by the
fictional character of
Melly Shum, who has
hated her job for
more than 25 years.
© 2013 FaceMePLS, Creative Commons 2.0
https://www.flickr.com/photos/faceme/8345123691
Fortunately, many
managers have realized
that the greater
challenge is working
with people, not with
machines.
In a Management 2.0 organization, everyone
recognizes that “people are the most valuable
assets” and that managers have to become “servant
leaders”. But, at the same time, managers prefer to
stick to the hierarchy.
How to deal with
middle/senior
managers and
colleagues in staff
functions is in all
likelihood the most
challenging issue you
will face in a
transformation.

- Frédéric Laloux,
Reinventing Organizations
Do you know
examples of
Management 2.0?
Some people think of an organization as a
community or a city. You can do what you
want, as long as you allow the community
to benefit from your work. We call that
Management 3.0.
In a community or
city, everyone is
(partly) responsible
for contributing to
its success and a
few are responsible
for the whole.
Management is about human beings. Its task is to
make people capable of joint performance […].
Management is the critical, determining factor.

- Peter Drucker, Management Rev. Edition
Most creative workers don’t realize that they
are also responsible for management stuff.
Management is too important to leave to the
managers.
The only thing left to do
for managers is to grow
and nurture the whole
system.
Good idea: setting up an
internal crowdfunding
system that enables
innovation by any worker.
Do you know
examples of
Management 3.0?
Management 3.0 is not
yet another
framework.
It is an ever-changing
collection of games,
tools, and practices to
help any worker to
manage the
organization. It is a way
of looking at work
systems.
Energize People: People are the most important
parts of an organization and managers must do all
they can to keep people active, creative, and
motivated.
1
Empower Teams: Teams can
self-organize, and this
requires empowerment,
authorization, and trust
from management.
2
Align Constraints: 

Self-organization can lead
to anything, and it’s
therefore necessary to
protect people and shared
resources and to give
people a clear purpose and
defined goals.
3
Develop Competence: 

Teams cannot achieve
their goals if team
members aren’t capable
enough, and managers
must therefore
contribute to the
development of
competence.
4
Grow Structure: 

Many teams operate within
the context of a complex
organization, and thus it is
important to consider
structures that enhance
communication.
5
Improve Everything:
People, teams, and
organizations need to
improve continuously
to defer failure for
as long as possible.
6
We can only improve worker happiness when
everyone feels responsible for management and
when managers learn to manage the system
instead of the people.
Management 3.0 = 

Managing the system, not the people.
Management 3.0 = 

Better management with fewer managers.
Delegation and
Empowerment
management30.com/delegation-boards
How can we get
people to self-
organize?
How do we delegate
responsibilities?
The English verb “to
manage” was originally
derived from the
Italian maneggiare, meaning
to handle and train horses.
- Kurtz and Snowden, “Bramble Bushes in a
Thicket”
http://www.researchgate.net/publication/237133296_Bramble_Bushes_in_a_Thicket_Narrative_and_the_intangibles_of_learning_networks
The Self-fulfilling
Prophecy Trap
People behave according to
how they are treated.
For example, when the
manager always changes
what people deliver, why
bother making it perfect?
Thus, quality of work goes
down, and the manager sees
confirmation that more
control is needed...
To Control or Not to
Control
Central control of a complex
system doesn’t work, because the
central node of a network cannot
possibly contain all information
that is needed to make good
decisions everywhere.
Each worker has only an incomplete mental model
of all the work. And the same goes for the
manager! That is why it’s best to distribute control
among everyone.
What scientists call distributed control is
usually called empowerment by
management experts.
Many people are
wrong
about empowerment.
The Dictators

“Workers should be
empowered by
managers so that
they take on more
responsibilities, feel
more committed, and
be more engaged.
The managers decide
who is empowered,
and who is not.”
The Anarchists

“Workers are already
empowered by
default. Nobody is
needed to grant them
powers. There are no
managers, only
leaders. And they
inspire workers to
exercise the powers
they already have.”
Empowerment defined
empower /əmˈpou(ə)r/


1. (authority)
to give official authority or legal power to (by
legal or official means) / to invest with power


2. (ability)
to promote the self-actualization or influence
of /

to supply with an ability

“I authorized (empowered) a team member
to take control of our company’s bank
account.”
“I help my team members with their ability
(empowerment) to manage our social media
marketing.”
Dictators know and understand only the first
meaning of the word empowerment (authority),
while anarchists favor only the second meaning
(ability). In most organizations, we need both.
We aim for a more
powerful system, not
better-controlled
people.
We aim for a more
powerful system, not
better-controlled
people.
(And besides, creative
workers cannot be
controlled anyway.)
The more educated
people are, the less
effective
authoritarian power
is.
Empowerment
requires
delegating
decisions

Managers often fear a
loss of control when
teams take over
decision-making. And
creative workers
sometimes have no
idea how to take
responsibility.
?
The Accountability
Trap
Quite often, it only trickles
down.
In traditional organizations,
“superiors” seek fulfillment of
their own goals over the
fulfillment of others, and they
hold their “subordinates”
accountable without
acknowledging that they
themselves should be held
accountable for the success
and well-being of the workers.
Empowerment is a reflexive relationship between
two equal partners. We should replace superiors
and subordinates with control-givers and control-
takers.
Giving and Taking Control

Quite often, when managers delegate work to
people or teams, they don’t give them clear
boundaries of control.
A manager should make it perfectly clear
what the person’s or team’s level of control
is in a certain area.
Handing over control also works
the other way around because
of the reflexive relationship of
empowerment.
By distributing control in an
organization, we not only empower
workers, we also empower the
managers.
The expectation is that the
frontline teams do
everything, except for the
things they choose to push
upward.
- Frédéric Laloux, Reinventing Organizations
The Seven Levels of Delegation
Delegation is not a binary thing. There
are more options than being a dictator
or an anarchist. The art of management
is in finding the right balance.
1. Tell
You make a decision
for others and you
may explain your
motivation. A
discussion about it is
neither desired nor
assumed.
2. Sell
You make a decision
for others but try to
convince them that
you made the right
choice, and you help
them feel involved.
3. Consult
You ask for input
first, which you take
into consideration
before making a
decision that
respects people’s
opinions.
4. Agree
You enter into a
discussion with
everyone involved,
and as a group you
reach consensus
about the decision.
5. Advise
You will offer others
your opinion and
hope they listen to
your wise words, but
it will be their
decision, not yours.
6. Inquire
You first leave it to
the others to decide,
and afterwards, you
ask them to convince
you of the wisdom of
their decision.
7. Delegate
You leave the
decision to them and
you don’t even want
to know about
details that would
just clutter your
brain.
The 7 Levels of Delegation is a symmetrical
model.
It works in both directions.
Consult is the opposite of Advise.
The 7 Levels of Delegation is a symmetrical model.
It works in both directions.
The 7 Levels of Delegation is a symmetrical model.
It works in both directions.
Sell is the mirror of Inquire.
Dictators say, “You are not allowed to do anything except
what I authorize you to do.”
Anarchists say, “Go ahead, take whatever control you
want!”
The better choice is to say, “You can do what you want
except for the areas where I place some restrictions.”
Delegation Boards
Delegation levels are applied to key decision areas.
The “right” level of delegation is a balancing act. It
depends on a team’s maturity level and the impact
of its decisions. Delegation is context-dependent.
A delegation board enables management to clarify
delegation and foster empowerment for both management
and workers.
A delegation board gives managers “something to control”.
It is better that they push around the notes on a delegation
board rather than the people in their organization.
The
Micromanagement
Trap
Lack of delegation because

“it costs time”.
Delegation of control should be
seen as an investment. There is
a transaction cost involved,
and it may take a while to get
a return on such an
investment.
Delegation increases status, power,
and control. A system with distributed
control has a better chance of survival
than a system with centralized
control.
Want to work with your peers to solve
problems facing today's change management?
Learn to increase employee engagement at a
Management 3.0 workshop!
https://management30.com/events/
Management 3.0 = 

Managing the system, not the people.
81
Andrii Pavliukov / andrii@andriipavliukov.com
Andrii Pavliukov is licensed Management
3.0 trainer and Agile Coach at
andriipavliukov.com with many years of
experience working with and on variety
of organizations from small to enterprise
scale.The main focus of Andrii's trainings
is application of Agile Leadership
practices in different contexts 

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Lviv PMDay: Андрій Павлюков Management 3.0. Delegation and Empowerment

  • 1. © Happy Melly ♦ version 1.00 ♦ management30.com Manage the system, not the people
  • 2. These are the typical work-related questions around the world: • How can we motivate our workers? • How can we change the organization’s culture? • How can we change the mindset of managers? • How can we get teams to take responsibility? • How can we improve teamwork and collaboration? • How can we get managers to trust their teams? • How can we make the business more agile?
  • 3. Most organizational change questions have the same form:
 “How can we change other people?”
  • 4. We get better, happier organizations by changing ourselves instead of others. When people don’t focus on improving themselves, is it any wonder they’re always complaining about each other?
  • 5. For many organizations, 
 a common practice is that they are managed like machines. We call this Management 1.0. In this style of management, leaders assume that improvement of the whole requires monitoring, repairing, and replacing the parts.
  • 6. It was engineers who developed scientific management, the command-and-control style of leadership that was quite successful in the 20th century.
  • 7. Engineers developed most management frameworks with upfront design, top-down planning and command- and-control structures and processes.
  • 8. Frameworks work well with predictable, repeatable tasks 
 (by machines). They don’t work 
 with creativity, innovation and problem-solving 
 (by humans).
  • 9. Bad idea: Moving people between departments as 
 if they are replaceable parts.
  • 10. Command-oriented, low- freedom management is common because it’s profitable, it requires less effort, and most managers are terrified of the alternative. 
- Laszlo Bock, Work Rules!
  • 11. Do you know examples of Management 1.0?
  • 12. The misery of workers worldwide (managers included) is personified by the fictional character of Melly Shum, who has hated her job for more than 25 years. © 2013 FaceMePLS, Creative Commons 2.0 https://www.flickr.com/photos/faceme/8345123691
  • 13. Fortunately, many managers have realized that the greater challenge is working with people, not with machines.
  • 14. In a Management 2.0 organization, everyone recognizes that “people are the most valuable assets” and that managers have to become “servant leaders”. But, at the same time, managers prefer to stick to the hierarchy.
  • 15. How to deal with middle/senior managers and colleagues in staff functions is in all likelihood the most challenging issue you will face in a transformation. 
- Frédéric Laloux, Reinventing Organizations
  • 16. Do you know examples of Management 2.0?
  • 17. Some people think of an organization as a community or a city. You can do what you want, as long as you allow the community to benefit from your work. We call that Management 3.0.
  • 18. In a community or city, everyone is (partly) responsible for contributing to its success and a few are responsible for the whole.
  • 19. Management is about human beings. Its task is to make people capable of joint performance […]. Management is the critical, determining factor. 
- Peter Drucker, Management Rev. Edition
  • 20. Most creative workers don’t realize that they are also responsible for management stuff. Management is too important to leave to the managers.
  • 21. The only thing left to do for managers is to grow and nurture the whole system.
  • 22. Good idea: setting up an internal crowdfunding system that enables innovation by any worker.
  • 23. Do you know examples of Management 3.0?
  • 24. Management 3.0 is not yet another framework. It is an ever-changing collection of games, tools, and practices to help any worker to manage the organization. It is a way of looking at work systems.
  • 25. Energize People: People are the most important parts of an organization and managers must do all they can to keep people active, creative, and motivated. 1
  • 26. Empower Teams: Teams can self-organize, and this requires empowerment, authorization, and trust from management. 2
  • 27. Align Constraints: 
 Self-organization can lead to anything, and it’s therefore necessary to protect people and shared resources and to give people a clear purpose and defined goals. 3
  • 28. Develop Competence: 
 Teams cannot achieve their goals if team members aren’t capable enough, and managers must therefore contribute to the development of competence. 4
  • 29. Grow Structure: 
 Many teams operate within the context of a complex organization, and thus it is important to consider structures that enhance communication. 5
  • 30. Improve Everything: People, teams, and organizations need to improve continuously to defer failure for as long as possible. 6
  • 31. We can only improve worker happiness when everyone feels responsible for management and when managers learn to manage the system instead of the people.
  • 32. Management 3.0 = 
 Managing the system, not the people.
  • 33. Management 3.0 = 
 Better management with fewer managers.
  • 35. How can we get people to self- organize?
  • 36. How do we delegate responsibilities?
  • 37. The English verb “to manage” was originally derived from the Italian maneggiare, meaning to handle and train horses. - Kurtz and Snowden, “Bramble Bushes in a Thicket” http://www.researchgate.net/publication/237133296_Bramble_Bushes_in_a_Thicket_Narrative_and_the_intangibles_of_learning_networks
  • 38. The Self-fulfilling Prophecy Trap People behave according to how they are treated. For example, when the manager always changes what people deliver, why bother making it perfect? Thus, quality of work goes down, and the manager sees confirmation that more control is needed...
  • 39. To Control or Not to Control Central control of a complex system doesn’t work, because the central node of a network cannot possibly contain all information that is needed to make good decisions everywhere.
  • 40. Each worker has only an incomplete mental model of all the work. And the same goes for the manager! That is why it’s best to distribute control among everyone.
  • 41. What scientists call distributed control is usually called empowerment by management experts.
  • 43. The Dictators
 “Workers should be empowered by managers so that they take on more responsibilities, feel more committed, and be more engaged. The managers decide who is empowered, and who is not.”
  • 44. The Anarchists
 “Workers are already empowered by default. Nobody is needed to grant them powers. There are no managers, only leaders. And they inspire workers to exercise the powers they already have.”
  • 45. Empowerment defined empower /əmˈpou(ə)r/ 
 1. (authority) to give official authority or legal power to (by legal or official means) / to invest with power 
 2. (ability) to promote the self-actualization or influence of /
 to supply with an ability

  • 46. “I authorized (empowered) a team member to take control of our company’s bank account.”
  • 47. “I help my team members with their ability (empowerment) to manage our social media marketing.”
  • 48. Dictators know and understand only the first meaning of the word empowerment (authority), while anarchists favor only the second meaning (ability). In most organizations, we need both.
  • 49. We aim for a more powerful system, not better-controlled people.
  • 50. We aim for a more powerful system, not better-controlled people. (And besides, creative workers cannot be controlled anyway.)
  • 51. The more educated people are, the less effective authoritarian power is.
  • 52. Empowerment requires delegating decisions
 Managers often fear a loss of control when teams take over decision-making. And creative workers sometimes have no idea how to take responsibility. ?
  • 53. The Accountability Trap Quite often, it only trickles down. In traditional organizations, “superiors” seek fulfillment of their own goals over the fulfillment of others, and they hold their “subordinates” accountable without acknowledging that they themselves should be held accountable for the success and well-being of the workers.
  • 54. Empowerment is a reflexive relationship between two equal partners. We should replace superiors and subordinates with control-givers and control- takers.
  • 55. Giving and Taking Control
 Quite often, when managers delegate work to people or teams, they don’t give them clear boundaries of control.
  • 56. A manager should make it perfectly clear what the person’s or team’s level of control is in a certain area.
  • 57. Handing over control also works the other way around because of the reflexive relationship of empowerment.
  • 58. By distributing control in an organization, we not only empower workers, we also empower the managers.
  • 59. The expectation is that the frontline teams do everything, except for the things they choose to push upward. - Frédéric Laloux, Reinventing Organizations
  • 60. The Seven Levels of Delegation
  • 61. Delegation is not a binary thing. There are more options than being a dictator or an anarchist. The art of management is in finding the right balance.
  • 62. 1. Tell You make a decision for others and you may explain your motivation. A discussion about it is neither desired nor assumed.
  • 63. 2. Sell You make a decision for others but try to convince them that you made the right choice, and you help them feel involved.
  • 64. 3. Consult You ask for input first, which you take into consideration before making a decision that respects people’s opinions.
  • 65. 4. Agree You enter into a discussion with everyone involved, and as a group you reach consensus about the decision.
  • 66. 5. Advise You will offer others your opinion and hope they listen to your wise words, but it will be their decision, not yours.
  • 67. 6. Inquire You first leave it to the others to decide, and afterwards, you ask them to convince you of the wisdom of their decision.
  • 68. 7. Delegate You leave the decision to them and you don’t even want to know about details that would just clutter your brain.
  • 69. The 7 Levels of Delegation is a symmetrical model. It works in both directions.
  • 70. Consult is the opposite of Advise. The 7 Levels of Delegation is a symmetrical model. It works in both directions.
  • 71. The 7 Levels of Delegation is a symmetrical model. It works in both directions. Sell is the mirror of Inquire.
  • 72. Dictators say, “You are not allowed to do anything except what I authorize you to do.” Anarchists say, “Go ahead, take whatever control you want!” The better choice is to say, “You can do what you want except for the areas where I place some restrictions.”
  • 74. Delegation levels are applied to key decision areas. The “right” level of delegation is a balancing act. It depends on a team’s maturity level and the impact of its decisions. Delegation is context-dependent.
  • 75. A delegation board enables management to clarify delegation and foster empowerment for both management and workers.
  • 76. A delegation board gives managers “something to control”. It is better that they push around the notes on a delegation board rather than the people in their organization.
  • 77. The Micromanagement Trap Lack of delegation because
 “it costs time”. Delegation of control should be seen as an investment. There is a transaction cost involved, and it may take a while to get a return on such an investment.
  • 78. Delegation increases status, power, and control. A system with distributed control has a better chance of survival than a system with centralized control.
  • 79. Want to work with your peers to solve problems facing today's change management? Learn to increase employee engagement at a Management 3.0 workshop! https://management30.com/events/
  • 80. Management 3.0 = 
 Managing the system, not the people.
  • 81. 81 Andrii Pavliukov / andrii@andriipavliukov.com Andrii Pavliukov is licensed Management 3.0 trainer and Agile Coach at andriipavliukov.com with many years of experience working with and on variety of organizations from small to enterprise scale.The main focus of Andrii's trainings is application of Agile Leadership practices in different contexts