Organizational Principles

Principles, we all use them (sometimes without knowing it) Whether in our personal lives or in our professional environment, our action take place as a result of a inherent set of principles. You could even define a principle of how we conform ourselves to the principles we previous have set. Some stick to them a great deal, others change whatever seems to be more convenient. In the book - 'the greatest salesman in the world' Og Mandino elaborates a set of principles that made him a successful salesman. What happens within a group of people working together? Can you still define a common ground where they share the same principles?

Principles within companies and organizations
Companies and groups, teams departments or domains within companies have there own principles too. They are however less visible and the group might be less aware of the principles they share. Never the less, how implicit they are, the principles can be determined. By making the principles explicit, the driving power behind the organization becomes more clear and with that, the power to improve management of the organization.

An example
The Pareto-principle or the 80-20-principle is an example of a principle the company can use. The Pareto-principle is about patterns in our society. Pareto found - amongst other things - that in Italy, 80% of the land was owned by 20% of the people.
We have used this principles in a slightly different way within organizations. They spend 80% of time in the last 20% of the problems. However, what have been the previous 80%? How often do you hear within you organization - "Yes, we are nearly there just finishing up..."

Sometimes, the 80%-point is just not reached! Applying the 80-20-principle can help setting up an model that explains 80% off you business, leaving you to solve the last 20%. This does cost most of the time, but having a model reduces the last 20%. Not many companies apply a model for getting agreement about 80% and they will experience that 'the last 20%' is much more than 80% of the work.

Other examples
There are many other examples of organizational principles:
Organizational principles to solve problems
Organizational principles to coordinate activities
Organizational principles to manage performance
Organizational principles to increase productivity
Organizational principles to manage clients
...etc.

You are able to derive those principles that fit with the profile of your organization.

Benefits of discovering these principles or business rules are:

• You are able to align different your team efforts into the same direction
• Manage change with less effort
• Preventing latent organizational conflicts

Perhaps the main benefit of the focus on organizational principles is that they affect your business at the moment. The influence of your rules and principles is felt NOW and you do not have to wait until the results of plans which take sometimes weeks or month to become visible. If you agree on the way to organize activities you are already half way towards your goal.

Organizational principles reveal whether your organization makes the right choices.

In the book Timeless Business Architecture you find twenty-two (22) organizational principles that are used implicitly in your organization. Insight in these principles give you a comparative advantage over other managers and an increased knowledge.