The Socio-Economic Approach to Management

The following sections are included:

• Foreword
• A Word from a SEAM Client
• Preface
• About the Authors
• Contents

When learning and trying to understand new information, people tend to parallel this new information with what they already know. Thus, very often, the first question people ask is how socio-economic approach to management (SEAM) is different from other change management or consulting approaches. This chapter provides a brief summary of the most important, and sometimes radical, ideas that differentiate SEAM from other disciplines. In later chapters, these concepts are elaborated in more detail.

The socio-economic approach to management (SEAM) is an umbrella for the socio-economic theory, the SEAM change intervention, and SEAM management tools and tactics. These three elements are much intertwined — the theory feeds the practice, which in turn is based on theory. The tools are part of practice, yet the underlying philosophy behind the management tools is rooted in the theory. This chapter describes the most important concepts of the socio-economic theory that shape the SEAM practice.

Before describing the actual process of implementing the socio-economic approach to management (SEAM) in organizations, it is important to introduce two new concepts that serve as the theoretical foundation of how SEAM is implemented in the workplace — “SEAM trihedron” and “Horivert” process.

Teaching managers the socio-economic approach to management (SEAM) management tools is one of the axes of the SEAM trihedron. Some of the SEAM management tools resemble traditional management tools. However, because the SEAM tools stem from a different mental model of management, they have a different purpose. The purpose of the SEAM management tools is to reduce dysfunctions, increase cooperation between actors, and improve steering. To help the reader to understand the socioeconomic nature of the SEAM management tools, they are described in terms of their purpose, differentiation from other traditional tools, and how the tools draw on socio-economic theory. Examples of how the tools were used in organizations may create the context for a better understanding.

The socio-economic theory is built on many different disciplines, and at least two major disciplines influenced the thinking of Henri Savall. First, Savall drew on economists of 20th century, especially Germán Bernácer, the Spanish economist and physicist, and the French economist François Perroux. He also discovered the field of European and Northern American Organization Development (OD) and was influenced by some authors and schools of thought. This chapter provides a very brief summary of the theories of scholars that provided the context for the socio-economic theory.

In our consulting work with organizations, we run into many common problems of the modern workplace. Some of them may be unique to a specific organization, but many problems are the same regardless of the organizational type, size, or nature of the industry. These problems are caused by the Taylorism, Fayolism, Weberism (TFW) virus, and thus we use the socio-economic approach to management (SEAM) lens to help organizations recognize and resolve the problematic issues. In this chapter, we explore two of the most common organizational problems that are often under the organizational radar and show how SEAM helps with each of these problems.

The systemic and deliberately paced intervention, as well as the focus on the socio-economics, makes the socio-economic approach to management (SEAM) the best organizational culture change approach. One of the factors is that with SEAM, people, through learning, change some of their deep beliefs and assumptions about management and the nature of work. This chapter provides the basic understanding of the concept of organizational culture, organizational learning and explains how SEAM has become a successful process for changing an organization’s culture.

By this chapter, most readers have a pretty good idea of socio-economic approach to management (SEAM) as a different mental model for management and what constitutes an effective workplace. At the same time, some may ponder if SEAM is so good in making an organization effective, then why is SEAM not widely known and practiced in the US? There are several reasons that SEAM is not in the mainstream. This chapter provides a detailed explanation of the most significant reasons.

The socio-economic approach to management (SEAM) has a high level of effectiveness. Usually, organizations that invest in a SEAM intervention find that their financial investment in SEAM is returned within a year, and often within 3 months. Effectiveness is achieved through change intervention, teaching, and coaching based on socio-economic theory. This is at least what SEAM practitioners would say. What wouldn’t they say? What are SEAM’s “Non Dit” (in French for “what was not said”)? This last chapter provides an insight into things that SEAM practitioners do not advertise, but perhaps these non-advertised elements make SEAM humane so effective.

The following sections are included:

• Afterword
• Bibliography
• Index