Sociocracy

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Sociocracy is a system of governance, using consent-based decision making among equivalent individuals and an organizational structure based on cybernetic principles.^[1] The most recent implementation of sociocracy by Gerard Endenburg^[2], also known as Circular Organizing, was developed as a new tool for governance of private enterprise, but has been adopted in many different kinds of organizations including public, private, non-profit and community organizations as well as professional associations.

Origins

The word sociocracy is derived from the Latin and Greek words socius (companion) and kratein (to govern). It is English for the word sociocratie, coined in 1851 by Auguste Comte, a French positivist philosopher (who also derived the word sociology from social physics) and later used by the U.S. sociologist Lester Frank Ward in a paper he wrote for the Penn Monthly in 1881 and later still by Dutchman Kees Boeke, who applied the concept to education. Sociocracy was the scheme of the proletariat in Comte's Positivist religion, while sociolatry was the women's, and sociology was that of the class of priests. The sociocracy was divided into the proletariat, who worked in the industry, and the patriciate, who directed the industry. The highest strata in the industry was the triumvirate of bankers. According to Comte, all of the proletariat would eventually merge with either the patriciate or the triumvirate. In a wider sense, sociocracy means the rule by the "socios," people who have a social relationship with each other - as opposed to democracy: rule by the "demos," the general mass of people.

Ward later expanded on the concept in his books Dynamic Sociology (1883) and The Psychic Factors of Civilization (1892). Ward, although rarely studied today, was very influential in his time and had a worldwide reputation as a groundbreaking sociologist. He believed that a highly educated public was essential if a country was to be governed effectively, and he foresaw a time when the emotional and partisan nature of present day politics would yield to a much more effective, dispassionate and scientifically-based discussion of issues and problems. Democracy would thus eventually evolve into a more advanced form of government, sociocracy.^[3]

20th century

The Dutch pacifist, educator, and peace worker, Kees Boeke updated and greatly expanded Ward's ideas in the mid-20th century by implementing the first sociocratic organizational structure in a school in Bilthoven, Netherlands which exists to this day: the Children's Community Workshop(Werkplaats Kindergemeenschap). Boeke saw sociocracy (in Dutch: Sociocratie) as a form of governance or management that presumes equality of individuals and is based on consent. This equality is not expressed with the 'one man, one vote' law of democracy but rather by a group of individuals reasoning together until a decision is reached that is satisfactory to each one of them.

To make sociocratic ideals operational, Boeke used a system of circles to organise decision-making within a large organisation. Members of each circle were responsible for decisions within their domain. Rather than using ever larger circles to make decisions affecting more than one domain, each circle elected representatives to a "higher" circle. Use of representatives maintained the efficiency of a hierarchy while maintaining basic equivalence of the members of the organization.^[4]

In Contemporary Practice

In the 1970s, Gerard Endenburg, a former student of Boeke, further developed and applied Boeke's principles in the electrical engineering company he took over from his parents. As an engineer, Endenburg added the understandings of physics, cybernetics, and systems thinking to the social, political, and educational theories of Comte, Ward, and Boeke. This resulted in a formal organizational method, named the "Sociocratische Kringorganisatie Methode" (Sociocratic Circular Organizing Method).

Challenged by Boeke, Gerard Endenburg first applied Boeke's principles and over the period of a decade, developed governance principles designed for a business. Later he extended these principles toward applications in all kinds of organizations. Sociocratic governance principles apply to policy decisions within an organization, those that pertain to the allocation of resources and the constraints of operational decisions. The circle determines how the day-to-day operational decisions will be made. The operational leader is then responsible for applying these policies in managing the functioning of the department or group.

Endenburg's policy decision-making method is composed of four key design principles^[5]:

Decision Making on Policy Issues by Consent. Decisions are made when there are no remaining "paramount objections", that is, when there is informed consent from all participants. Objections must be reasoned and argued and based on the ability of the objector to work productively toward the goals of the organization. All policy decisions are made by consent although the group may by consent decide to use another decision-making method. Within these policies, day-to-day operational decisions are normally made in the traditional manner.

Organizing in Circles. The sociocratic organization is composed of a hierarchy of semiautonomous circles. This hierarchy, however, does not constitute a power structure as autocratic hierarchies do. Each circle has the responsibility to execute, measure, and control its own processes in achieving its goals. It governs a specific domain of responsibility within the policies of the larger organization. Circles are also responsible for their own development and for each member's development. Often called "integral education," the circle and its members are expected to determine what they need to know to remain competitive in their field and to reach the goals of their circle.

Double-Linking. Circles are connected to the next higher circle by a double link composed of the operational leader and a circle representative. These two linkages function as full members in the decision-making of both their circle and the next higher circle. The operational leader of a circle is selected by the next higher circle and represents the larger organization in the circle's decision-making. A representative is selected by the circle to represent the circle interests in the next higher circle.

At the highest level of the organization, there is a “top circle”, similar to a Board of Directors, that connects the organization to its environment. Typically these members include representatives with expertise in law, government, finance (including investors), community, and the organization's mission. The top circle also includes the CEO and at least one representative of the general management circle. Each of these circle members participate fully in decision-making in the top circle.

Elections by Consent. Individuals are elected to roles and responsibilities in open discussion using the same consent criteria used for other policy decisions. Members of the circle nominate themselves or other members of the circle and present reasons for their choice. After discussion, people can (and often do) change their nominations, and the discussion leader will suggest the election of the person for whom there are the strongest arguments. Circle members may object and there is further discussion. For a role that many people might fill, this discussion may continue for a few rounds. For others, this process is short when fewer people are qualified for the task. The circle may also decide to choose someone who is not a current member of the circle.

These four principles are requirements for an organization to function sociocratically, because they are interdependent, each one supporting the successful application of the others.

In addition to these four principles, sociocratic organizations apply the circular feedback process of directing-doing-measuring to the design of work processes, and in business organizations, compensation is based on a market rate salary plus long-term and short-term payments based on the success of the circle. With the exception of proprietary knowledge, all financial transactions and policy decisions are transparent to members of the organization and to their clients.

Sociocratic Center. Endenburg founded the Sociocratisch Centrum in Rotterdam, The Netherlands to promote the growth of sociocracy. Today, the Centrum provides certification to sociocratic practitioners and heads an international consulting organization with offices in Europe, North America, and Australia.

Advantages

Consent as defined and practiced in sociocratic organizations is a more efficient and effective decision-making method than autocratic decision-making, because it builds trust and understanding. The process educates the participants about the needs of the other members in doing their work effectively as well as their psychological and social needs as human beings. In addition to reducing friction, the well-defined, information-based, and highly disciplined process helps the group stay focused and move swiftly through examining an issue and actual decision-making. The main advantages of adopting the sociocratic approach have been extensively studied, especially in collaboration with professor Georges Romme (at Maastricht University respectively Eindhoven University of Technology); see for example: Romme & Endenburg (2006).^[6]
Sociocratic principles are now applied^[6] around the world. These include corporations, small businesses, nursing homes, colleges, ecovillages and cohousing communities, private schools, and international professional and educational membership organizations. Examples of this variety are organizations such as the Boeddhistische Omroep Stichting, the Buddhist Broadcasting Foundation, (BOS) in the Netherlands; Living Well - an award winning long-term health care center in Vermont; the Eco-Village of Loudoun County in Virginia - a cohousing community; Creative Urethanes - a manufacturer of skateboard wheels and urethane parts in Winchester, Virginia. Sociocratic principles have also been applied in higher education, for exampe, the School of Media, Culture, and Design of Woodbury University, Burbank, California; Institute Francais, University of Regina, Saskatchewan, Canada,Yukon College in Whitehorse, and others.

See also

• Consensus democracy
• Collective intelligence
• Consensus decision-making
• Cooperative
• Double linking
• Governance
• Heterarchy
• Informed consent
• Open source governance
• Polycentric law
• Research on sociocratic method
• Scientocracy
• Self-governance
• Subsidiarity
• Systems thinking
• Thesis circle
• Mature minor doctrine

References

1. ^ See Buck, John; Villines, Sharon (2007). We the People: Consenting to a Deeper Democracy (First edition, second printing with corrections ed.). Washington DC: Sociocracy.info Press. pp. 31, 39. ISBN 978-0-9792827-0-6(pbk) 
2. ^ Endenburg, Gerard (1998). Sociocracy As Social Design. Eburon. ISBN 90-5166-604-7.
3. ^ Ward, Lester F. (1893). "Sociocracy," from The Psychic Factors of Civilization. Boston: Ginn & Co.
4. ^ Boeke, Kees (1945). Sociocracy:Democracy as It Might Be. Oneline at worldteacher.faithweb.com/sociocracy.htm
5. ^ Endenburg, Gerard (1998). Sociocracy: The organization of decision-making. Eburon. ISBN 90-5166-605-5.
6. ^ ^{a b} * Romme, A.G.L., and G. Endenburg (2006). "Construction Principles and Design Rules in the Case of Circular Design." Organization Science, vol. 17 (2): 287-297.

External resources

• Boeke, Kees (1945). Sociocracy:Democracy as It Might Be. Oneline at worldteacher.faithweb.com/sociocracy.htm. 

• Buck, John and Sharon Villines (2007). We the People: Consenting to a Deeper Democracy, A Guide to Sociocratic Principles and Methods. Sociocracy.info Press. ISBN 978-0-9792827-0-6. 

• "The Creative Forces of Self-Organization" by John Buck and Gerard Endenburg, 20 pages, free .pdf download.

• Charest, Gilles (1996). La Gestion par Consentement: Une Nouvelle Façon de Partager le Pouvoir [Management by Consent: A New Way of Sharing Power]. Les Editions Transcontinental. 

• Charest, Gilles (2007). La démocratie se meurt, vive la sociocratie [Democracy Is Dead, Long Live Sociocracy]. Edizioni Esserci. ISBN 88-87178-72-0. 

• Endenburg, Gerard (1998). Sociocracy: The organization of decision-making. Eburon. ISBN 90-5166-605-5. 

• Endenburg, Gerard (1998). Sociocracy As Social Design. Eburon. ISBN 90-5166-604-7. 

• Romme, A.G.L., and G. Endenburg (2006). "Construction Principles and Design Rules in the Case of Circular Design." Organization Science, vol. 17 (2): 287-297.

• Romme, A.G.L., "Domination, self-determination and circular organizing." Organization Studies, vol. 20 (1999): 801-832.

• Romme, A.G.L. (1997). "Work, Authority, and Participation: The Scenario of Circular Organizing." Journal of Organizational Change Management, vol. 10 (2): 156-166.

• Romme, A.G.L. & A. van Witteloostuijn (1999). "Circular organizing and triple loop learning." Journal of Organizational Change Management, vol. 12 (5): 439-453.

• Ward, Lester F. (1893). "Sociocracy," from The Psychic Factors of Civilization. Boston: Ginn & Co. 

External links

• Sociocracy: Principles and Methods of Organization
• Can a Company Be Run as a Democracy?
• SocioNet - The US Network for Sociocracy and Dynamic Governance
• Sociocracy Publications and Newsletter at GovernanceAlive.com
• Website for the Global Sociocratic Center