Number 49

This newsletter is the first of a series to discuss the five parts of organizations that, when well managed, make the organization function at its highest level of productivity, profitability and satisfaction.

These five areas or levels are present in all human social systems. We will first look at them in ourselves and then in organizations. Although they build on each other, each of these five areas is distinct. They are the fives steps of human evolution. It is in the nature of our experience that they feel inseparable.

Our body, like everything in the universe, obeys the laws of physics and chemistry—there is no escape. At the beginning of the universe, and for the first half of our planet's existence, there was only physics and chemistry.

2. The second level, Life, adds a new dimension to our physics and chemistry.

The laws of biology include the laws of physics but add totally new dimensions not understandable from the first level. For example, the order and homeostasis of living systems is not explainable in a purely physical world that moves inexorably towards disorder and entropy.

When life first appeared on our planet there was no competition. Today it is part of the environment of all living things. Competition adds new rules and behaviors to living things. For example the purely biological systems of level 2. Life, have adaptation and stimulus-response but they do not have the dominance, power, and win-lose of Level 3.

The symbolic system of Language adds new dimensions to what came before. Concepts such as meaning, dialog, and win-win, are neither understandable nor explainable with the rules of Competition, Life, or Physics.

5. The fifth level, conscious human Experience, stepped us beyond language. Self-awareness—of who we are and what we do—came recently; about 3,000 years ago.

Self awareness is not explainable with language anymore than the nature of adulthood can be explained to a child. Feelings such as love and compassion, using personal values to shape your thoughts and actions, or the immediacy of our spiritual experience, cannot be fully understood using the rules of Language, Competition, Biology, or Physics.

These five basic levels are present today in all human activities. Organizations, as a special type of human activity, have special functions, some of which they hold in common with the person and with the broader society.

For example at the first level, Physics and Chemistry, companies have equipment and hardware. At the second level, Life or biology, companies have operating systems and processes. At the third level, Competition, companies have markets, power, authority, economics, laws, and decision processes. At the fourth level, Language, company cultures vary widely in communications, relationships and teamwork. At the fifth level, Experience, company cultures vary widely in trust, fear, values, involvement and satisfaction.

I once described these levels to a management class at UC Berkeley. One manager exclaimed, "For the first time in my life I understand how it all works!" It's true. These levels are a framework for all there is in the universe, in a human culture, and in a company. It is a framework for understanding the job of managers and leaders.

For a successful company, each level must be well managed. Because the rules or "logic" of each level are different, the management tools for each level may change. For example, logic and analysis, that work well for levels 1. Equipment and 2. Systems, don't work well for levels 4. Communication and 5. Experience. (More on this in a later newsletter.)

The first three levels contain the bulk of company business, they contain WHAT people do. They are the operations levels; putting out fires is here. The top two levels—the uniquely human levels—contain HOW we do what we do; with teamwork and involvement or not, with care and trust or not, with joy or not.

When leaders balance the top and bottom halves of the company culture they create the most highly productive, profitable and satisfying workplace. When attention to the top and bottom halves is unbalanced, the company operates well below its potential.

In the next issue I will discuss how leaders I know have successfully managed these levels.

I hope you find the newsletters interesting and useful. If you have comments or questions, please email me barry@meridiangrp.net

If you want new tools to improve your workplace, you will find them in this book. A 187 page toolkit of practical information and examples. For more information on the book, click on the Amazon logo.



	Site Map \| FAQ \| Search A Better Workplace — Meridian Group's Newsletter, Number 49, 10-15-05
	__________________________________________________________ The 5 Keys To A Successful Company This newsletter is the first of a series to discuss the five parts of organizations that, when well managed, make the organization function at its highest level of productivity, profitability and satisfaction. These five areas or levels are present in all human social systems. We will first look at them in ourselves and then in organizations. Although they build on each other, each of these five areas is distinct. They are the fives steps of human evolution. It is in the nature of our experience that they feel inseparable. 1. We see the first part or level in our body's Physics and Chemistry. We are stuck to the earth by gravity. A flame will burn me. Stomach chemicals dissolve food. Our body, like everything in the universe, obeys the laws of physics and chemistry—there is no escape. At the beginning of the universe, and for the first half of our planet's existence, there was only physics and chemistry. 2. The second level, Life, adds a new dimension to our physics and chemistry. Our living body brings in food and air to build tissue and produce energy for our bodily functions. Our body has systems (nervous, cardiovascular, lymphatic, etc.) with feedback mechanisms that maintain our body's steady state, or homeostasis. These systems convey food and information and maintain our temperature, blood pressure and sugar levels. The laws of biology include the laws of physics but add totally new dimensions not understandable from the first level. For example, the order and homeostasis of living systems is not explainable in a purely physical world that moves inexorably towards disorder and entropy. 3. The third level adds Competition between living things. We personally experience competition for scarce resources such as jobs, money, housing, a partner, promotion, recognition, or jostling in line at a market. When foreign organisms attack us, our immune system fights back. When life first appeared on our planet there was no competition. Today it is part of the environment of all living things. Competition adds new rules and behaviors to living things. For example the purely biological systems of level 2. Life, have adaptation and stimulus-response but they do not have the dominance, power, and win-lose of Level 3. 4. The fourth level appeared as humans developed Language. While many animals communicate with each other, and we communicate with many animals, only people use distinct sounds to represent objects, actions and experiences, and to convey complex ideas to each other and through time. Only people have writing. Language makes possible more complex social and cultural relationships such as farming, commerce, and urban society. The symbolic system of Language adds new dimensions to what came before. Concepts such as meaning, dialog, and win-win, are neither understandable nor explainable with the rules of Competition, Life, or Physics. 5. The fifth level, conscious human Experience, stepped us beyond language. Self-awareness—of who we are and what we do—came recently; about 3,000 years ago. I express self-consciousness when I say, "I'm aware of myself writing this sentence as I write this sentence". I'm aware of my trust and love. I am aware of my fear when I am afraid. I am conscious of the affect I have on others, and the affect they have on me. Self awareness is not explainable with language anymore than the nature of adulthood can be explained to a child. Feelings such as love and compassion, using personal values to shape your thoughts and actions, or the immediacy of our spiritual experience, cannot be fully understood using the rules of Language, Competition, Biology, or Physics. The Five Levels in Companies These five basic levels are present today in all human activities. Organizations, as a special type of human activity, have special functions, some of which they hold in common with the person and with the broader society. For example at the first level, Physics and Chemistry, companies have equipment and hardware. At the second level, Life or biology, companies have operating systems and processes. At the third level, Competition, companies have markets, power, authority, economics, laws, and decision processes. At the fourth level, Language, company cultures vary widely in communications, relationships and teamwork. At the fifth level, Experience, company cultures vary widely in trust, fear, values, involvement and satisfaction. It's All There Is! When you manage a company you manage these five areas or levels. I once described these levels to a management class at UC Berkeley. One manager exclaimed, "For the first time in my life I understand how it all works!" It's true. These levels are a framework for all there is in the universe, in a human culture, and in a company. It is a framework for understanding the job of managers and leaders. For a successful company, each level must be well managed. Because the rules or "logic" of each level are different, the management tools for each level may change. For example, logic and analysis, that work well for levels 1. Equipment and 2. Systems, don't work well for levels 4. Communication and 5. Experience. (More on this in a later newsletter.) Balancing What We Do and How We Do It The first three levels contain the bulk of company business, they contain WHAT people do. They are the operations levels; putting out fires is here. The top two levels—the uniquely human levels—contain HOW we do what we do; with teamwork and involvement or not, with care and trust or not, with joy or not. When leaders balance the top and bottom halves of the company culture they create the most highly productive, profitable and satisfying workplace. When attention to the top and bottom halves is unbalanced, the company operates well below its potential. In the next issue I will discuss how leaders I know have successfully managed these levels. Barry Phegan I hope you find the newsletters interesting and useful. If you have comments or questions, please email me barry@meridiangrp.net If you want new tools to improve your workplace, you will find them in this book. A 187 page toolkit of practical information and examples. For more information on the book, click on the Amazon logo. .



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