Understanding the journey of the creating experience for a learning organization. The layers of that creativity are making decisions, resolving conflict and setting and monitoring direction. Contains PPT animation - download and view locally for best results.

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Stratified
Governance
Model
Alf Rock
1-416-574-5330
alf@alkamind.com
Alkamind ConsultingAlkamind Consulting

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A core theme within the Stratified Governance Model is the evolution in organization
where both Action and Thinking needs to be synchronized at ever level of the
organization. The legacy of “industrial age” processes is that the thinking of workflow
was separate from those performing the work.
alf@Alkamind.com
order
edge-of-order
edge-of-chaos
environmental complexity
Governance Layer 1 - Operational
Governance Layer 2 - Management
Adaptations to products
and delivery mechanisms
responded to conditions.
Changes to social & market
place conditions offered up
new opportunities.
Rigid ‘production line’
processes form to build
and distribute value.
Marketing & sales
campaigns persuade a
culture of consumerism.
order
edge-of-order
edge-of-chaos
environmental complexity

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This “industrial age” control loop is effective in establishing rigid order and controls
around business processes. The challenge is in the time frames it take to execute,
and it’s ability to sense and quickly adapt it’s “hardwired” operational model.
alf@Alkamind.com
order
edge-of-order
edge-of-chaos
environmental complexity
Governance Layer 1 - Operational
Governance Layer 2 - Management
Respond
Sense
React
Succeed
order
edge-of-order
edge-of-chaos
environmental complexity

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Control
Process
Driven
Measure
Success
Driven
People
Orientated
Environmentally
Viable
Integrate
Create Order Improve Process Integrate People
The accelerated rate of change of the 21st century will naturally “select” the
organizations able to quickly integrate the multiple organizational “systems” into a
viable entity within it’s economic ecosystem. There is a natural sequence and “self-
awareness” to the maturation of an organization.

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Executive Layer – purposeful
Management Layer – goal-seeking
Operational Layer – state-maintaining
The multiple organizational systems in play are the executive,
management, and operational layers. From a systems thinking perspective,
these systems pursue purposeful, seek goal, and maintain a steady state.
Control
Process
Driven
Measure
Success
Driven
People
Orientated
Environmentally
Viable
Integrate
Create Order Improve Process Integrate People

6. © Copyright Alkamind Consulting Alkamind Confidential 6
alf@Alkamind.com
order
edge-of-order
edge-of-chaos
environmental complexity
order
edge-of-order
edge-of-chaos
environmental complexity
Governance Layer 1 - Operational
Governance Layer 2 - Management
Co-emergence of
needs for more
complex control objective.
As more chaotic conditions
emerge the system moves
towards breakdown.
A systemic design set
new forms of control
objectives with feedback.
The double loop feedback
controls allows the entire
system to continuously
learn and set direction.
The evolution of our Governance environment is calling forth a greater need to
engage in Risk-Adjusted control methods aligned to comply to an ever evolving set of
standards and regulations.

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alf@Alkamind.com
order
edge-of-order
edge-of-chaos
environmental complexity
order
edge-of-order
edge-of-chaos
environmental complexity
A Stratified Governance Model allows the organization to develop and design controls and
monitoring points between the executive, management and operational layers of a firm. This
governance structure provides a continues learning mechanism, where quality, risk and
compliance is integrated into the governance framework rather than reviewed separately.
order
edge-of-order
edge-of-chaos
environmental complexity

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Governance monitoring relies on a set of control feedback loops between the
hierarchical layers of an organization. Making the linkage between the process &
practice (operational) layer up to the higher (management and executive) layers is
based on control feedback loops.
Input
Output as Outcomes
Output as Control Metrics
Metrics
Process
Activities & Procedures
Tasks, Tools
Information records
Alkamind Consulting
alf@alkamind.com
User of
Service
Service
Support
Service
Delivery
Tools &
Metrics
Service Management Tools
Business Application Systems
The outcomes of processes include:
• Delivering a product
• Providing a service that:
• provide a Design
• provide an Implementation
• provide ongoing Operations
• provide Improvements
• Financial properties including:
• Revenue
• Operational Costs
Monitoring of Control Objectives include :
• Summary of metrics of product delivery
• Correlation of metrics of service provisioning
• Financial summary for accounting of:
• Metrics: financial , risk, fiduciary & prudential
• Operational efficiencies

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There is a fundamental difference between a Control Process and the underlying Value
Creation Process. While the Value Creation Processes form the core components of a Business
Model, the Control Processes provide the Risk-Based management framework for long term
viability & sustainability.
Input
Output as Outcomes
Output as Control Metrics
Metrics
Value Creation
Process
Activities & Procedures
Tasks, Tools
Information records
Control Process Functions
1. Set Control Objectives
2. Establish Sensors & Monitors
3. Feedback Mechanism
4. Compare Function
5. Respond
Feedback Loop
Control Loop
Alkamind Consulting
alf@alkamind.com
User of
Service
Service
Support
Service
Delivery
Tools &
Metrics
Service Management Tools
Business Application Systems
Input
of
Resources
Value Creation

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Control Process Functions
1. Set Control Objectives
2. Establish Sensors & Monitors
3. Feedback Mechanism
4. Compare Function
5. Respond
4/5. Compare & Respond
function reviews the
feedback metrics against
control objectives and takes
action based on the
feedback
While the business Value Creation Processes are concerned with using resources to create
value in the form of products and services, the Control Processes are a risk-based
management function that provides oversight to making decisions & setting direction
(governance), managing risk, and comply to regulatory obligations.
Control Loop
Alkamind Consulting
alf@alkamind.com
User of
Service
Service
Support
Service
Delivery
Tools &
Metrics
Service Management Tools
Business Application Systems
Input
of
Resources
Value Creation
1. The Control Objectives
need to satisfy specific
Regulatory (or Standards)
Requirements
2. Sensors & Monitors needs to be established in the appropriate
Service Management domains
(e.g. Strategy, Design, Transition, Operations, Improvement)
3. Feedback Mechanism generates the associated
“evidence of compliance” to the review functions of
“Compare/Respond”, Audit, or Certify
Feedback Loop

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Break
 The layers and control-feedback loops

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The “single control feedback loop” maintains a state where the control objects of a
process are measured against the operational feedback monitor.
Input
Output as Outcomes
Output as Control Metrics
Metrics
Process
Activities & Procedures
Tasks, Tools
Information records
Governance Layer 1
“are we on target to achieve our control object goals”
Coordinate
Direct
Monitor
Control
Feedback Loop
Control Loop
Alkamind Consulting
alf@alkamind.com
User of
Service
Service
Support
Service
Delivery
Tools &
Metrics
Service Management Tools
Business Application Systems

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The internal process of the Governance Layer 1 is a comparison of results from
the feedback process (monitor) and the control objects (CO) goals.
Governance Layer 1
“are we on target to achieve our control object goals”
Coordinate
Direct
Monitor
Control
Input
Output as Outcomes
Output as Control Metrics
Metrics
Process
Activities & Procedures
Tasks, Tools
Information records
User of
Service
Service
Support
Service
Delivery
Tools &
Metrics
Service Management Tools

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This process of Governance Layer 1 is to take the “norms” of the control objectives
and compare the monitored feedback against those “norms”. This single control
feedback loop aligns the outcomes to the target goals.
Governance Layer 1
“are we on target to achieve our control object goals”
Coordinate
Direct
Monitor
Control
Monitor
Compare
Norms are set as the control objectives as Governance oversight of operational processes
Norm
“Single” Feedback Loop
Control Loop
Control

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The Governance Layer 2 uses a double control feedback loop as a form of
organizational learning to cross correlate metrics and refine the goals that should be
set. The primary function of GL2 is to set the right controls for GL1.
Governance Layer 2
“are we aiming at the right goals?”
Coordinate
Design
Plan
Improve
Monitor
Compare
Are we doing things well?
Norm
“Double” Feedback Loop
Control Loop
Control
Are we doing things the right way?

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The Governance Layer 3 uses a triple control feedback loop as a form of learning to
integrate the diversity of portfolios and programs to strategic goals to create value.
The primary function of GL3 is to integrate diversity into a GL2 control set.
Governance Layer 3
“are we integrating diverse perspectives?”
Coordinate
Strategize
Integrate
Serve
Monitor
Compare
Are we getting the benefits?
Norm
“Triple” Feedback Loop
Control Loop
Control
Are we doing the right things?

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These stratified control feedback loop represent the sensory perception of an
organization to the environment that it is operating in. These loops represent the
continuous knowledge of results to guide the organizational system at every level of
the enterprise through the creative experience.
Components
Products
Solutions
Services
Time to Emerge
RelativeComplexity
The journey of the creative experience

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At the heart of Governance is a framework to acquire continuous information to be able
to guide activities at multiple levels of the organization. The relationship between the
control and monitoring functions need to be appropriate to their governance layer.
Strategic Goals
Control = Are we doing the right things?
Feedback = Are we realizing the benefits?
Tactical Goals
Control = Are we doing things the right way?
Feedback = Are we doing things well?
Operational Goals
Control = Do we have control objectives as goals?
Feedback = How do we measure against those goals?

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Applying IT related governance and best practice publications to the Stratified
Governance model.
 Stratified Governance Model
 Supporting models
 Developing a Governance Structure
 Linking Control Objectives with Metrics

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Strategic initiatives need to form a holistic portfolio management structure driven by
a program structure. From a systems evolution perspective, initiatives fall into broad
classifications.

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This wave view also serves to indicate the interaction between project based life cycle
activities and the reiterative operational state maintaining activities.

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Change Stages
Alpha
Beta
Delta
Gamma
New
Alpha
Barrier – Sets of competing
commitments
Flex
Time
PerceivedfitwithLife
Conditions
From Spiral Dynamics, by Don Beck and Christopher Cowan
The Gravesian (Clare Graves) change model classifies specific changeThe Gravesian (Clare Graves) change model classifies specific change
conditions, as the interactions between Life Conditions and systems ofconditions, as the interactions between Life Conditions and systems of
Adaptive Intelligence, that move through breakdown and breakthrough.Adaptive Intelligence, that move through breakdown and breakthrough.
What are your
competing
commitments and
how will they show
up?

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I
Self
We
Culture
It
Biological Features
Behavior
Its
Systems & Structures
Interior Exterior
IndividualCollective
Based of Richard Barrett’s Alignment Model “Building Value Driven Organizations”
Over Ken Wilber’s AQAL Model “A Theory of Everything”
ValuesValues
AlignmentAlignment
MissionMission
AlignmentAlignment
StructuralStructural
AlignmentAlignment
Personal AlignmentPersonal Alignment
Developmentally, each quadrant provides alignment steps to the next “appropriate”
developmental step. Any “state” change in one quadrant needs to be supported by
corresponding changes in the other quadrants to form a sustainable “stage” change.

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Courtesy Alf Rock
alf@alkamind.com
24
Courtesy Alf Rock
alf2rock@gmail.com
alf@spiraldynamics.intranets.com
Cultural Values Social
UL. Individual/Internal UR. Individual/External
LL. Collective/Internal LR. Collective/External
Thinking Behavior
Blue
Blue
Red
Orange
Orange
GreenGreen
Beige
Purple
Red
2nd
Tier
Emerges
AQALAQAL AlignmentsAlignments
Developed by Alf Rock
alf@alkamind.com
alf2rock@gmail.com
Adapted from Ken Wilber
ValuesValues
AlignmentAlignment
Personal AlignmentPersonal Alignment
Structural AlignmentStructural Alignment
MissionMission
AlignmentAlignment

25. © Copyright Alkamind Consulting Alkamind Confidential
Courtesy Alf Rock
alf@alkamind.com
25
Courtesy Alf Rock
alf2rock@gmail.com
alf@spiraldynamics.intranets.com
Cultural Values Social
UL. Individual/Internal UR. Individual/External
LL. Collective/Internal LR. Collective/External
Thinking Behavior
Blue
Blue
Red
Orange
Orange
GreenGreen
Beige
Purple
Red
2nd
Tier
Emerges
Intentional
Personal meaning
and inner skills
Behavioral
Individual
behavior and
outer skills
Systems
Systems and
Processes
Cultural
Cultural and
shared meaning
AQALAQAL
Developed by Alf Rock
alf@alkamind.com
alf2rock@gmail.com
Adapted from Ken Wilber

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The Kano Model

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Stratified Governance Charter
 The Stratified Governance Model (SGM) provides a framework from which to design and link
governance oversight at multiple levels of the organization.
 This design and meshing of control objectives through governance layers from board, to
executive, to management, to operational levels is critical to demonstrate evidential and auditable
commitment to governance and compliance for quality assurance and regulatory compliance.
 Using a set of complimentary tools, this Stratified Governance Model can be used to design
and provide oversight for both life cycle orientated and reiterative operational activities.
 The SGM can be used to design both methods of engagement for project based objectives and
operational processes based on openly published standards.
 The SGM provides unprecedented levels of mapping from the Enterprise Governance of IT,
right through various governance layers, down to a specific process task and it’s supporting
records of truth and control objective metrics.
 The Stratified Governance Model can be used to encompass Risk Management and
Compliance programs in any taxonomy breakdown for a GRC framework.

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Integral Leadership will go beyond integrating technology, processes, and
people, by accommodating for the human experience in an uncertain reality.
“Who Are We?”
As we hurtle through ever greater achievements and calamities of technical and social
change, we find ourselves at the brink of a new level of self awareness!
Can we find a level of self awareness that will save us from the certainties of our
perspectives?
Are we capable of developing a common framework that can shift with the dynamics of our
complex adaptive system into harmony and balance?
How is it that when ever we seem to solve one set of problems, others emerge to take their
place?
How can we develop the critical element of trust to move forward?
The more of the mystery we discover the more wondrous it becomes!
Our worldviews simply touch a large reality?

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Unawareness
Awareness
Learn
New
Behavior
Practice
New
Behavior
Change
of
Values
Transformation Cycle

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30
Knowledge Spiral
2-Dialogue or
Collective
reflection
3-Linking
Explicit
Knowledge
4-Learning
by Doing
1-Field of
Interaction
SECI model: Takeuchi & Nonaka
Tacit
TacitExplicit
Explicit
Externalization
Tacit to Explicit
Socialization
Tacit to Tacit
Internalization
Explicit to Tacit
Combination
Explicit to Explicit

31. © Copyright Alkamind Consulting Alkamind Confidential
Courtesy Alf Rock
alf@alkamind.com
31
Courtesy Alf Rock
alf2rock@gmail.com
alf@spiraldynamics.intranets.com
Cultural Values Social
UL. Individual/Internal UR. Individual/External
LL. Collective/Internal LR. Collective/External
Thinking Behavior
Blue
Blue
Red
Orange
Orange
GreenGreen
Beige
Purple
Red
Orthodox Fundamentalism
Prevails
Liberal Fundamentalism
Prevails …
... Until emergent complexity brings forth the
next existential crisis!
2nd
Tier
Emerges
Intentional
Personal meaning
and inner skills
Behavioral
Individual
behavior and
outer skills
Systems
Systems and
Processes
Cultural
Cultural and
shared meaning
AQAL in MotionAQAL in Motion
Developed by Alf Rock
alf@alkamind.com
alf2rock@gmail.com
Adapted from Ken Wilber