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The 9 Laws of Performance 2012

26th Feb , 2016

Why 2012 you may ask?  The power of this article comes from accepting the limitations of society’s capacity and capability to keep up with the rate of change of technology used to replace people in the decision making processes of modern business, hence the need for time to establish a limiting boundary.  Change is the law of life!

Abstract

This article is about a journey of discovery focused on the impacts and side-effects of the rapid rate of change of technology used by modern business in gaining and maintaining that elusive competitive advantage.  The laws are a consequence of trying to implement compliance management systems in operational units, the supply chain and the dismantling of infrastructure leading to the realisation that regulations may seem unfair to business, and business not realising the potential improvement in the quality of management toward long term sustainability.  The 9 laws are an integral way of thinking in improving the quality of management to maximise finite resources.  It is a snapshot of scientific research into the life cycle of business performance and highlights the lead and lag time between the evolution of management, technology providers and the education system.  The 9 Laws are in logical sequence from a viewpoint human capability and capacity.

Pre-requisites for the digital age

Organisational Factors

Globalization, Acquisitions, Mergers and Administration affect risk and performance management

Highly reliable organisations are unable to keep up with legislative obligations of this digital age[1].  My strategy is overall compliance, e.g. Sarbanes-Oxley, QA, TQM, Six Sigma, OHSA, Workplace Relations, Accident Compensation, WHO, etc. and any technical standards.  These are the starting benchmarks for a learning business that has a strategy of high reliability to achieve a competitive advantage.  Furthermore organisations are losing out to the rate of change in the digital age, are unable to keep up with procedures for safety, risk and performance obligation that are practical and applicable.

Adapting the three laws of robotics to digital age complexity management.

Laws that form an organising principle and unifying theme of organisational behavior:

Laws of digital age resource management

A person or system of artificial intelligence (replacing people in the decision making process) may not sanction the law of unintended consequences which can bring harm to the organization or its people, or through inaction, bring the organization into disrepute.

The Board of Directors/CEO/Executives have accountability to:

  • Identify and record the overall risks and then establish the remaining risks to be managed by people for the life cycle of the technology.
  • Set the performance & competency targets for maintaining these remaining risks.
  • Establish the system of communications & measurement such that competent people can forestall the law of unintended consequences.

Use fuzzy logic mathematics to resolve ambiguities, which may arise in the future, in this law

A system of artificial intelligence must obey orders given by the leadership of the organization except where such orders would conflict with the First law

A system of artificial intelligence must protect its own existence as long as such protection does not conflict with the First or Second Laws

Performance Criteria

OH&S Act – Code of Practice for Plant – this code established clear guidelines by incorporating IEC 61508 functional safety of electrical, electronic and programmable electronic safety related system – Part 1 in the list of standards that set the performance levels required to be implemented by the governing body of a business.

Also the OH&S Act definition:

‘A state of knowledge that a person in that POSITION OR SITUATION is expected to have. It is not something which varies according to a duty holder’s own subjective or personal knowledge base.’

NOTE

The ‘inaction’ clause is essential – software has systemic failures – usually catastrophic. – Therefore action must be taken by the artificial intelligence or people!

Part 3 – Software requirements

Predicting & preventing failure

Part 2 – functional safety of electrical, electronic and programmable electronic safety related system – hardware requirements

 

Introduction
The insight that the application of technology in business has outpaced the transformation of management from industrial to digital and knowledge driven economies led to today’s complexities in business. This is highlighted in many cases of disaster recovery where the responsiveness factor is low and in cases of litigation the courts are ruling systemic management system failure. Governments and Corporations are having bad experiencing resulting from outsourced risks. The 9 laws of performance integrate the 3 laws of robotics. The underpinning principles are:

  • People are the business without them nothing happens
  • Regulations are reactive hence the need for business leaders to be pro-active

The 9 laws are comprised of:

  1. Vision
  2. Space
  3. Marketing
  4. Sharing
  5. System
  6. Passion
  7. Internal business intelligence
  8. External business intelligence
  9. Corporate Governance

The rational

  1. The Vision statement is the pathway the organisation puts in place to establish its operations and targets.
  2. The Space is the area of operations and its focus is on the use of local intelligence to gain ideas, innovation and invention for that market space.
  3. Marketing is about the turbulent life and business conditions and asking the right questions to verify and validate the ‘space’ intelligence is in line with the vision statement, its also underpinned by intelligence from the 7th and 8th law
  4. Sharing is about the 3 T’s truth, trust and transparency within a production unit – to enhance the potential for growth and provide supporting systems for learning in self and corporate development. Our unique integral object and data object naming conventions provides the power of knowledge to the people specific to their function and location maximising the use of technology.
  5. System – the secret is in the system which is about:
    • Capturing, distributing and recalling knowledge in compliance with regulatory obligation.
    • To store and produce a deck of cards for;
    • The 5P’s Prior Planning Prevents Poor Performance as well as,
    • Maintaining all relationships within the business unit and providing summary reports for collation to enable an overall learning organisation specific to an industry.
    • To ensure the level of peak experiences in leadership which require continuous development for enduring states of thinking to become permanent traits in leadership.
  6. Passion is about the 3 R’s respect for self, respect for others and responsibility of action
  7. Internal business intelligence is about:
    • The continuous scanning of the internal intelligence for continuous improvement in maintaining that competitive advantage.
    • To provide intelligence transfer (lessons learned) to similar units of production globally
  8. External business intelligence is about:
    • The continuous scanning of the external intelligence to stay one step ahead of the competition
    • Capturing knowledge from all sources to improving and internalising risks at the approved as low as reasonably practical (ALARP) level of risk.
  9. Corporate Governance is about:
    • Knowing why, what, where, when, whom and how to apply governance within the organisation
    • To have the evidence why government regulations are inappropriate.

Entry into these laws can take place at any level.

Reference List

  1. IEC 61508 Functional Safety of electrical, electronic and programmable electronic safety related systems parts 1 though to 7 (Published as AS 61508 in Australia)
    • NOTE: many of the listed standard reference come under the umbrella of this standard
  2. IEC 60300 Dependability Parts 1, 2, & 3 – Section 1 – 12 of part 3
  3. IEC 60300: 1984, Reliability and maintainability management
  4. IEC 60300-3-1: 1991, Dependability management – Part 3: Application guide – Section 1: Analysis techniques for dependability: Guide on methodology
  5. IEC 60300-3-2: 1993, Dependability management – Part 3: Application guide – Section 2: Collection of dependability data from the field
  6. IEC 60300-3-9, Dependability management – Part 3: Application guide – Section 9: Risk analysis of technological systems
  7. IEC 60319: 1978, Presentation of reliability data on electronic components or parts
  8. IEC 60362: 1971, Guide for collection of reliability, availability and maintainability data from field performance of electronic items
  9. IEC 60409: 1981, Guide for the inclusion of reliability clauses into specifications for components (or parts) for electronic equipment
  10. IEC 60414: 1973, Safety requirements for indicating and recording electrical measuring instruments and their accessories
  11. IEC 60513: 1994, Fundamental aspects of safety standards for medical electrical equipment
  12. IEC 61511 – Functional Safety – instrumented system for the process industry
  13. Draft IEC 61499 – Function Blocks for industrial Process measurement and control systems
  14. Draft IEC 61804 Ed.1 Part 1- Function Blocks For Process Control, Digital Communications, General Requirements 1999
  15. Draft IEC 60261 – Safety of Machinery – Functional Safety – Electrical, Electronic and Programmable Electronic Control Systems.
  16. AS 4024.1 2006 (Series) Safety of Machinery
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  40. Contract Documentation – my involvement was compliance management of the contracts and data is covered by confidentiality agreements for the following major works contracts:
    • Power Station 2X500MW lignite coal fired power complex (Vic)
    • Oil Refinery (Vic)– Maintenance Contract
    • Coal Gasification Research Facility (Vic) – ($100M)
    • 2X Olympic Dam Expansion Project
    • Century Zinc (Qld) – New mining project, Mine and Port facilities – Build Own Operate Transfer (BOOT) Contract ($1200M)
    • Mika Creek Power Station (Qld) ($100M for Instrumentation)
    • For all of the above – documentation essential to my research

    Contractual conditions

    • Process and Instrumentation diagrams
    • Lists Input/output signals
    • Quality Assurance Requirements
    • Procedures and instructions
    • Applicable standards
    • Level of compliance specified

    Tender Documentation

    • Power Station – Instrument Upgrade ($50M)
    • Sulphur recovery units ($60M)
    • Gas Turbine Station Stage D ($80M)
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    • AASB 1034 Finical Report Presentation and Disclosures
    • APS 1 Conformity with Accounting Standards and UIG Consensus Views
    • APS 1.1 Conformity with Auditing Standards
    • APS 2 Engagement Letters to Clients
    • APS 3 Compatibility of Australian Accounting Standards and International Accounting Standards
    • APS 4 Statement of Quality Control Standard
    • APS 5 Quality Control Policies and Procedures
    • APS 6 Statement of Taxation Standards
    • APS 7 Statement of Insolvency Standards
    • APS 8 Statement of Management Consulting
    • APS 9 Statement on Compilation of Financial Reports
    • APS 10 Client Money and the Maintenance and Audit of a Members Trust Account
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[1] In the Sarbanes Oxley regulation the obligations for measurement are delegated to the Auditors that are outside the organisation – thus external auditors have the problem of measuring performance and report on it. Measurement has become very complex. In today’s digital age, transparency & accountability require clear statements of outcomes oriented measures & targets and the tracking of such from top to bottom. These are defined within the OHS Act which are: predicting and preventing the political, social, and environmental and physical consequences of any mishap or incident that may lead to a software failure as these can have catastrophic consequences. In 2012 we have learned that auditors have failed to achieve this.

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