The 9 Laws of Performance 2012
22nd Apr , 2021
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!
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
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. 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
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.’
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
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:
- Internal business intelligence
- External business intelligence
- Corporate Governance
- The Vision statement is the pathway the organisation puts in place to establish its operations and targets.
- 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.
- 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
- 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.
- 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.
- Passion is about the 3 R’s respect for self, respect for others and responsibility of action
- 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
- 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.
- 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.
- 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
- IEC 60300 Dependability Parts 1, 2, & 3 – Section 1 – 12 of part 3
- IEC 60300: 1984, Reliability and maintainability management
- IEC 60300-3-1: 1991, Dependability management – Part 3: Application guide – Section 1: Analysis techniques for dependability: Guide on methodology
- IEC 60300-3-2: 1993, Dependability management – Part 3: Application guide – Section 2: Collection of dependability data from the field
- IEC 60300-3-9, Dependability management – Part 3: Application guide – Section 9: Risk analysis of technological systems
- IEC 60319: 1978, Presentation of reliability data on electronic components or parts
- IEC 60362: 1971, Guide for collection of reliability, availability and maintainability data from field performance of electronic items
- IEC 60409: 1981, Guide for the inclusion of reliability clauses into specifications for components (or parts) for electronic equipment
- IEC 60414: 1973, Safety requirements for indicating and recording electrical measuring instruments and their accessories
- IEC 60513: 1994, Fundamental aspects of safety standards for medical electrical equipment
- IEC 61511 – Functional Safety – instrumented system for the process industry
- Draft IEC 61499 – Function Blocks for industrial Process measurement and control systems
- Draft IEC 61804 Ed.1 Part 1- Function Blocks For Process Control, Digital Communications, General Requirements 1999
- Draft IEC 60261 – Safety of Machinery – Functional Safety – Electrical, Electronic and Programmable Electronic Control Systems.
- AS 4024.1 2006 (Series) Safety of Machinery
- NASA Software Program – NASA – GB 1740.13-96
- DOD-STD 2168 – Defense System Software Quality Program and the quality related provisions of DOD-STD 1679A (Navy) Software Development and DOD-STD 2167A Defense Systems Software Development.
- DEF – Ministry of Defense, UK
- DEF 00-55 – Requirements for safety related software in Defense equipment MOD 1997 Part 1 Requirements, Part 2 Guidance
- DEF 00-56 – Safety Management Requirements for Defense systems. MOD 1996 Part 1 Requirements, Part 2 Guidance
- DEF – 00-58 HAZOP studies on systems containing programmable electronics, MOD, 2000 Part 1 Requirements, Part 2 General applications guidance
- DEF (Aust) 5679 The Procurement of computer base Safety critical systems
- OHSA 29CFR 191.119 Process Safety Management
- ANSI/ISA S84.1 Application of Safety Instrumented Systems in the process industry
- ANSI/ISA S91.01 – 1995 identification of Emergency Shutdown systems and controls that are critical to maintaining safety in process industries
- TUV Prufing der Sicherheit und Fehlertoleranz elektronischer Steuerungen (Approval of Safety-aspects and Fault Tolerance of Electronic Systems) (8/2002)– Automatisieringstechnik 50 Ó Oldernburg Verlag
- Draft EN 746 – Industrial heat processing plants
- Part 1: General safety requirements of industrial heat processing plants
- Part 2: Safety requirements of furnaces and fuel supply systems
- AS 4360 Risk Management
- EPA United States Environmental Protection Agency 40 CFR 68 – Risk Management Program
- AS 2645 Information processing – documentation symbols and conventions for data, program and system flowcharts, program network charts and system resource charts
- AS/NZS ISO 9004:2000 Quality management systems – Guidelines for performance improvements
- AS/NZS ISO 9001:2008 Quality management systems – Requirements
- American Petroleum Institute API Spec Q1 7th Edition Specification for Quality Programs for the Petroleum, Petrochemical and Natural Gas Industry
- Building Control Commission – Essential Services Maintenance Manual – A guide to your building services requirements and listed standards.
- AS 4292 parts 1 to 5 – 1995 Rail Safety Management
- AS 4100 – Steel Structures
- Transport – Alternative Compliance – Heavy Vehicle Accreditation Scheme – Business Rules
- Australian Standards and Conformance Infrastructure 1995 The governments response to the Report of the Committee of Inquiry into Australia’s Standards and Conformance Infrastructure – Linking Industry Globally.
- Value Management/ Value Engineering study1985, State Electricity Commission Vic, Plant Coding Systems (evaluation of coding systems from major suppliers of power generating plant from companies around the world)
- VGB Kraftwerktechnik Gmbh –Kraftwerk Kennzeichen System (KKS) (Power Station Identification system)
- Siemens – Plant Coding System
- 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
- Process and Instrumentation diagrams
- Lists Input/output signals
- Quality Assurance Requirements
- Procedures and instructions
- Applicable standards
- Level of compliance specified
- Power Station – Instrument Upgrade ($50M)
- Sulphur recovery units ($60M)
- Gas Turbine Station Stage D ($80M)
- Company/Contract specific Standards such as: Esso, Mobil, Shell Oil refinery standards – Extensive list of proprietary standards that meet specific needs in the operations/maintenance phase for these companies.
- VGB Kraftwerktechnik Gmbh – Verlag Technisch-Wissenschaftlicher Schriften; Klinke Strasse.27-31 4300 Essen – Begriffsbestimmungen in der Energiewirtschaft (Regulations in the Energy Sector) Teil 5 (part 5) Verfugbarkeit von Warmekraftwerken
- Regulatory Impact Statement for Transport (Rail Safety) Regulations 1998
- Stuart R Nunns – Functional Safety of Safety – Related Systems: the Influence of IEC 61508 and Development in Conformity Assessment Schemes on Business Drivers – Eutech Engineering Solutions Ltd, Belasis Hall Technology Park PO Box Billingham Teesside TS23 4 YS UK
- David Kiang- Technology Impact on Dependability Requirements – Convener, Joint Working Group IEC/TC65/WG10-ISO/IEC JTC1/SC7/WG9 Nortel Technology PO Box 3511 Station C Ottawa, Ontario Canada K1Y 4H7
- M Jones – The ESA Software Engineering Standards: Past, Present and Future – Ground Systems Engineering Department, European Space Operations Centre (ESOC) Darmstadt, Germany – 1082-3670/97 IEEE
- Victoria Stavridou (1997) Integration Standards For Critical Software Intensive Systems, Department of Computer Science, Queen Mary and Westfield College, University of London, Mile End Road, London E1 4NS E-mail: email@example.com
- Victoria Stavridou Computer Related Standards and Safety – Workshop Proceedings 1082-3670/97 IEEE
- Ron Bell – Health and Safety Executive UK Chairman: IEC/SC65A/Working Group 10 -IEC ACOS Workshop V – Functional Safety within the IEC: Developments to date & the way ahead.
- Gerald W. Ash and Knowledge Management Luminaries, Fred Schoep formerly IBM, Jack Vinson Pharmacia soon Pfizer, Stephen Denning formerly World Bank, Will Hooper Xerox and others – Developing Quality systems in Knowledge Management – Paper presented at QSA Asia Pacific Forum October 2002
- Handbook of Industrial and Organisational Psychology – Morris D. Dunnette Editor – Wiley – Interscience – A general systems approach to organisations Pages 47-60, Motivational theory in Industrial & DDMINPage 510/30/2012
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- Harvard Business Review on CHANGE – Harvard Business School Press Boston, MA 02163
- Victorian Occupational Health and Safety Act 1985 Code of Practice for Plant No 19 July 1995 Pages 12 – State of Knowledge, I/E 1508 Functional Safety – Safety Related systems on pages 20, 32, 54, and Design verifiers on Page 75.
- Tracey Swift (1997) QSA Professional Development Workshop, Learning through sharing workshop – “Integrated Systems Management and the Culture to support its effectiveness”. E-mail T.Swift@Sheffield.ac.uk
- David Parkin & Paul Bourke (2001) – Winning with Pumped Up People, Information Australia, 75 Flinders Lane, Melbourne Vic. 3000
- Institute of Chartered Accountants Australia – Vision 2020. Down-load from – www.icaa.com.au
- AS 3905.15 – 1998 Quality system guidelines – Guide to AS/NZS ISO 9001:1994 for the Accounting Profession.
- Quality Control Management in accounting practices Australian Society of CPA’s / The Institute of Chartered Accountants in Australia
- Extracts from ICAA Members’ Handbook
- N3 Guidance Notes – N3 – Risk Management Guidelines
- AASB 1031 Materiality
- AASB 1039 Concise Financial Reports
- 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
- J.E. Whiting – The Emerging Asia-Pacific and ISO Standards for OHS&E risk management systems, Quality Magazine Aug 1997
- Australian Securities and Investment Commission. Sections 295, 296, 297, 298, 299(1)(f), 344
- International Corporate Governance Network – Statement on Global Corporate Governance Principles, Adopted July 9 1999 at the Annual Conference in Frankfurt.
- K Rieger (1998) – Life cycle management of high technology projects involving Safety Related Systems; Published by: National Technical Committee on Safety Critical Systems, Computer Systems & Software Engineering Board, Australian Computer Society – November 1998
- K Rieger (1999) – Software Safety Standards – How they affect business; Published by: International Energy and Engineering Conference – Monash University Gippsland – November 1999
- K Rieger (1999) – Quality in Project Management; Published by: The Quality Magazine / October 1999 Volume 8 Number 5
- K Rieger (2002) Avoid corporate failure-managing small elements to succeed – Published by the QSA Asia Pacific Forum
- Nahid Golafshani – Understanding Reliability and Validity in Qualitative Research- The Qualitative Report Volume 8 Number 4 December 2003 597-607 http://www.nova.edu/ssss/QR/QR84/golafshani.pdf
University of Toronto, Toronto, Ontario, Canada
- Don Edward Back, Christopher C. Cowan – Spiral Dynamics – Blackwell Publishing ISBN 1-4051-3356-2
- Yvonne Teoh Bource – The Secret of Life – Brolga Publishing ISBN 978-192 122 190-3
- Deepak Chopra – The Seven Spiritual Laws of Success – Amber-Allen Publishing & New world Library ISBN 1-878424-11-4
- David Cartney, Kurt Rieger – The Corporate Wolf Pack’ www.lulu.com
- Australian Institute of Company Directors – VicDirector issue 1 July 2010
- McKinsey & Co – The war for talent – www.seek.com
- Lysette Mavridis – National Manager – Education Development – Australian Institute of Company Directors
- A T Kearney – The Characteristics of e-leaders – www.seek.com and related articles listed at this location
- Credentialing and defining the scope of clinical practice for medical practitioners in Victorian health services – a policy handbook. Published by the Quality and Safety Branch, Rural and Regional Health and Aged Care Services, Victorian Government Department of Human Services, Melbourne, Victoria 2007, © Copyright State of Victoria, Department of Human Services, 2007
- Health Services (Private Hospitals and Day Procedure Centers) Regulations 2002 S.R. No. 79/2002 Version incorporating amendments as at 7 March 2008
- AS NZS 3551-2004 Technical management programs for medical devices
- The good Governance Standards
- Corporate Duties Below Board Level Discussion Paper – Chartered Secretaries Australia www.CSAust.com
- Intraindustry Executive Succession, Competitive Dynamics, and Firm Performance: Through the knowledge transfer Lens. Journal of Managerial issues Vol XIX Number 3 FLL 2007: 340-3-6
- SEI Software Risk Evaluation (SRE) Service www.sei.cmu.eduonache,
- An Expert HR system for Aligning Organisational Culture and Strategy – Elizabeth F. Cabrera and Jaime Bonache, Dep. De Economia de la Empresa, Universidad Carlos III de Madrid, Spain
- Optimal knowledge transfer methods: a Generation X perspective. Depby McNichols Journal of knowledge management Vol 14 No 1 2010 pp 24-27 @ Emirad Group Publishing Limited, ISSN 1367-3270
- Dosing the Glue – Applying Human Resource Technology to the Build the global organisation Paul A.L. Evans
- The Theory of Everything and integral vision for Business, Politics, Science and Spirituality – Ken Wilber ISBN 1-57062-855-6
- IBM CEO study 2010 Capitalizing on Complexity – Insights from the Global Chief Executive Officer Study
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- The gendering of organizational research methods Evidence of gender patterns in qualitative research; Donde Ashmos Plowman, College of Business Administration, University of Nebraska-Lincoln, Lincoln, Nebraska, USA, and Anne D. Smith Department of Management, University of Tennessee,Knoxville, Tennessee, USA
- The Three Laws of performance; Steve Zaffron & Dave Logan, Rewriting the Future of Your Organisation and Your Life; Jossey-Bass, San Francisco 2009
 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.