Advice Process

1. Overview

The Advice Process is a decentralized decision-making model that empowers any individual within an organization to make a decision, after seeking advice from two key groups: everyone who will be meaningfully affected by the decision, and people who have expertise in the matter. The core purpose of this pattern is to distribute authority and decision-making power away from a hierarchical, top-down structure, and instead place it with the individuals who are closest to the issue at hand. This approach is designed to foster a more agile, inclusive, and collaborative organizational culture, where individuals are trusted and empowered to take initiative and responsibility.

The problem that the Advice Process solves is the inherent inefficiency and disempowerment of traditional, centralized decision-making structures. In many organizations, decisions are made by a small group of senior leaders, who are often far removed from the day-to-day realities of the issues they are deciding on. This can lead to slow, bureaucratic decision-making, as well as a lack of engagement and ownership from the employees who are expected to implement these decisions. The Advice Process directly addresses these challenges by enabling faster, more informed decisions, and by fostering a sense of ownership and accountability throughout the organization.

The Advice Process was popularized by Frederic Laloux in his influential book, Reinventing Organizations, where he identified it as a key practice of “Teal” organizations. However, the concept was first implemented and articulated by Dennis Bakke, the co-founder of AES Corporation, a global energy company. Bakke’s goal was to create a more engaging and fulfilling workplace by giving employees more freedom and responsibility. The Advice Process is deeply aligned with the principles of commons-aligned value creation, as it promotes a more equitable distribution of power and resources, and it encourages a culture of collaboration and collective intelligence. By empowering individuals to act as stewards of the organization’s resources and purpose, the Advice Process helps to create a more resilient and adaptive organization that is better equipped to navigate the complexities of the modern world.

2. Core Principles

1. Distributed Authority: The fundamental principle of the Advice Process is the decentralization of power. Authority is not tied to a position in a hierarchy, but is instead distributed throughout the organization. Any individual, regardless of their role or seniority, has the power to make a decision. This principle challenges the traditional command-and-control model and fosters a more egalitarian and empowering work environment.

2. Empowered Initiative: The Advice Process encourages proactive problem-solving and innovation. Individuals are not only empowered but also expected to take initiative when they identify a problem or an opportunity. This principle fosters a sense of ownership and agency among employees, who are no longer passive recipients of instructions but active contributors to the organization’s success.

3. Collective Intelligence: While the decision-making power rests with an individual, the Advice Process is not about making decisions in isolation. The decision-maker has a responsibility to seek advice from all stakeholders who will be meaningfully affected by the decision, as well as from individuals who have relevant expertise. This principle ensures that decisions are well-informed and consider a diversity of perspectives, leading to better outcomes.

4. Individual Accountability: With great power comes great responsibility. The individual who makes a decision is also accountable for its outcome. This principle ensures that decision-makers are mindful of the potential consequences of their actions and are motivated to make the best possible choice for the organization. Accountability in the Advice Process is not about blame, but about learning and continuous improvement.

5. Transparency and Information Sharing: For the Advice Process to function effectively, it requires a high degree of transparency and open access to information. All members of the organization should have access to the information they need to make informed decisions and provide meaningful advice. This principle fosters a culture of trust and collaboration, where information is not a source of power but a shared resource for collective sense-making.

6. Focus on the Greater Good: The Advice Process is not a tool for individuals to pursue their own self-interest. The underlying assumption is that individuals will make decisions that are in the best interest of the organization and its purpose. This principle requires a strong sense of shared values and a culture of trust, where individuals are aligned with the organization’s mission and are committed to its success.

3. Key Practices

1. Taking Initiative: The process begins when an individual within the organization identifies a problem, an opportunity, or a need for a decision to be made. Rather than waiting for a manager to assign the task, the individual is empowered and encouraged to take ownership of the issue and initiate the decision-making process.

2. Framing the Proposal: The initiator of the Advice Process is responsible for clearly framing the issue and their proposed course of action. This involves articulating the problem or opportunity, outlining the proposed solution, and explaining the potential benefits and risks. A well-framed proposal provides a solid foundation for a productive advice-seeking process.

3. Identifying Advisors: The decision-maker must identify and seek advice from two key groups: anyone who will be significantly affected by the decision, and anyone who has relevant expertise on the matter. This ensures that the decision is considered from multiple perspectives and that potential blind spots are uncovered.

4. Seeking Advice: The initiator actively seeks advice from the identified advisors. This can be done through a variety of channels, including one-on-one conversations, group meetings, or online collaboration tools. The key is to create a space for open and honest dialogue, where advisors feel comfortable sharing their perspectives, concerns, and suggestions.

5. Considering the Advice: The decision-maker has a responsibility to genuinely consider all the advice they receive. This does not mean that they have to follow every piece of advice, but they must be able to demonstrate that they have listened to and understood the different perspectives. The goal is not to reach a consensus or a compromise, but to make the most informed decision possible.

6. Making the Decision: After carefully considering all the advice, the initiator makes the final decision. This is a crucial step, as it reinforces the principle of individual accountability. The decision-maker is not simply a facilitator of a group process, but the ultimate owner of the decision.

7. Communicating the Decision: Once the decision has been made, the decision-maker is responsible for communicating it to all the stakeholders who were involved in the advice process, as well as to anyone else who will be affected by it. This communication should include not only the final decision but also the rationale behind it, and how the advice that was received was taken into account.

8. Documenting the Decision: For the sake of transparency and organizational learning, it is important to document the decision-making process and its outcome. This documentation should be stored in a place that is accessible to all members of the organization, so that others can learn from the experience and understand the context behind the decision.

4. Implementation

Implementing the Advice Process requires a conscious shift in an organization’s culture and mindset, moving away from traditional hierarchical structures towards a more decentralized and empowering model. The first step is to establish a clear understanding of the process and its underlying principles throughout the organization. This can be achieved through workshops, training sessions, and clear documentation. It is crucial to have the buy-in and active support of the leadership team, who must be willing to let go of their traditional decision-making authority and model the new behavior. A good starting point is to pilot the Advice Process in a specific team or department, allowing the organization to learn and adapt the process to its unique context before rolling it out more broadly.

A step-by-step approach to implementing the Advice Process could look like this: First, an individual identifies an issue and takes the initiative to propose a solution. They then identify and consult with all affected parties and relevant experts, gathering their advice and perspectives. After careful consideration of the input received, the individual makes a decision and communicates it to all stakeholders, along with the supporting rationale. Finally, the decision and the process are documented for future reference and organizational learning. Key considerations for a successful implementation include fostering a culture of psychological safety, where individuals feel comfortable speaking up and challenging the status quo. It is also important to provide coaching and support to individuals as they learn to navigate the Advice Process, both as decision-makers and as advisors. Real-world examples of companies that have successfully implemented the Advice Process, such as AES, Morning Star, and various Teal organizations, demonstrate that this model can be highly effective in a variety of industries and contexts.

For instance, at Morning Star, a tomato processing company, every employee is expected to be a self-managing professional. They are responsible for their own work and for making the decisions that are necessary to achieve their personal mission and the company’s goals. When an employee wants to make a significant decision, such as purchasing a new piece of equipment, they write a proposal and circulate it to a group of colleagues who have expertise in that area. The employee then gathers feedback and makes a final decision. This process has enabled Morning Star to become a highly innovative and efficient organization, with a strong sense of ownership and engagement among its employees.

5. 7 Pillars Assessment

6. When to Use

• In organizations seeking to move towards self-management: The Advice Process is a foundational practice for any organization that wants to move away from a traditional hierarchical structure and embrace a more decentralized and empowering model of governance.

• When you want to increase employee engagement and ownership: By giving individuals the power to make decisions, the Advice Process fosters a strong sense of ownership and accountability, leading to higher levels of engagement and motivation.

• To improve the speed and quality of decision-making: The Advice Process allows decisions to be made by the people who are closest to the issue, which often leads to faster and more informed choices. It also leverages the collective intelligence of the organization, which can result in better outcomes.

• In complex and rapidly changing environments: The Advice Process makes organizations more agile and adaptive, as it allows for a more fluid and responsive approach to decision-making. This is particularly valuable in industries that are characterized by high levels of uncertainty and change.

• To foster a culture of trust and collaboration: The Advice Process is built on a foundation of trust and transparency. It encourages open communication and collaboration, which can help to break down silos and create a more cohesive and supportive work environment.

• When you want to develop the leadership capabilities of your employees: The Advice Process provides a powerful on-the-job learning experience. It gives individuals the opportunity to develop their decision-making skills, their ability to influence others, and their understanding of the organization as a whole.

7. Anti-Patterns and Gotchas

• Pseudo-Advice Process: This occurs when leaders or managers go through the motions of seeking advice, but have already made up their minds. This can be more damaging than not seeking advice at all, as it erodes trust and creates a sense of cynicism and disengagement.

• Insufficient Consultation: A common pitfall is failing to seek advice from all the relevant stakeholders. This can happen due to a lack of awareness, a desire to move quickly, or a reluctance to engage with dissenting voices. It can lead to decisions that are not well-informed and that have unintended negative consequences.

• Ignoring Advice: While the decision-maker is not obligated to follow the advice they receive, consistently ignoring it will undermine the process. If people feel that their advice is not being taken seriously, they will stop offering it, and the organization will lose the benefit of their collective intelligence.

• Lack of Transparency: The Advice Process requires a high degree of transparency. If the decision-making process is opaque, or if the rationale behind the final decision is not clearly communicated, it can lead to mistrust and suspicion. People need to understand how and why decisions are being made, even if they don’t agree with them.

• Decision-phobia: The empowerment that comes with the Advice Process can also be daunting for some individuals. They may be afraid of making the wrong decision and being held accountable for it. This can lead to a situation where people are reluctant to take initiative, and decisions are either not made or are pushed up to the leadership team.

• Over-consultation: The opposite of insufficient consultation is also a problem. Seeking advice from too many people, or getting bogged down in endless debates, can lead to analysis paralysis. The goal of the Advice Process is to make better and faster decisions, not to create a bureaucratic nightmare.

8. References

1. Laloux, Frederic. Reinventing Organizations: A Guide to Creating Organizations Inspired by the Next Stage of Human Consciousness. Nelson Parker, 2014.

2. Bakke, Dennis. The Decision Maker: Unlock the Potential of Everyone in Your Organization, One Decision at a Time. Pear Press, 2013.

3. Corporate Rebels. “Rebellious Practices: Make Better Decisions with the Advice Process.” Corporate Rebels, 11 Jan. 2017, https://www.corporate-rebels.com/blog/advice-process.

4. “Decision Making.” Reinventing Organizations Wiki, https://reinventingorganizationswiki.com/en/theory/decision-making/.

5. Loomio. “Advice process. A simple tool for group decision making.” Medium, 24 Oct. 2019, https://medium.com/enspiral-tales/use-advice-process-to-work-better-together-4cb127c83a39.