Dr. Stephen D. Clement founded Organizational Design Inc. in 1985 as a vehicle to allow him to begin a research partnership with Dr. Elliott Jaques.In subsequent years ODI has been engaged by a multitude of organizations in its nearly 30 years of practice. From small organizations with a handful of employees to Fortune 100 Corporations to the U.S. Army.
CRA and the U.S. Army were the first clients of Organizational Design Inc. This multi-year collaboration fostered the development and research that eventually lead to the authoring of two books, Requisite Organization and Executive Leadership.
The early 90’s involved work with corporate manufacturing organizations, notably Whirlpool and it’s international partners. In addition, ODI began a long project with the U.S. Army Medical Command marking the team’s first foray into the medical world. ODI then worked with other manufacturing organizations, retail organizations and industrial service organizations through the 90’s until 2001.
In 2000, while the ODI team continued solid growth assisting some of the world’s leading corporations we began some small projects and training programs for the U.S. Army. The events of 9/11 drastically altered the direction of ODI and its personnel. The Secretary of the Army, the Pentagon and Joint Chiefs of Staff immediately engaged ODI in several large scale organizational studies. The U.S. Army underwent a radical restructuring lead by the ODI team. ODI grew in size and scope to meet the size and time demands of the U.S. Army, conducting work in dozens of countries and interviewing thousands of military and civilian employees.
As the large scale projects with the U.S. Army began to wind down the economic crisis began to increase the demand for our services in the corporate world. ODI saw a gradual return to the Fortune 100 client base and was engaged by defense contractors both of which faced tremendous strategic uncertainty. In addition, the ODI team began to consult and assist small business.
Currently ODI focuses it’s efforts on three primary markets, Government/Military, Corporate Organizations and Small/Medium Business.
President and Founder of Organizational Design, Inc.
Dr. Clement graduated from the United States Military Academy and was commissioned as an Artillery officer in 1965. As a Ranger in Vietnam he learned, first hand, the unique importance of battlefield leadership. Upon his return to the United States he began studies at Purdue University, earning a MS in Industrial Relations and a Ph.D. in Organizational Communication. Following graduate school, he then began his journey as an organizational and leadership expert in the U.S. Army, at the United Stated Military Academy at West Point. There, Dr. Clement taught courses on leadership and management and became the Director of Research within the Leadership Department. Over the course of his distinguished military career, Dr. Clement designed and developed the U.S. Army’s leadership development programs, many tenets of which, even today, serve as leadership doctrine for Army Soldiers and Officers worldwide. Towards the latter part of his military career, Dr. Clement pioneered in identifying the underlying set of organizational principles that functioned as the theoretical base under-pinning the Army’s leadership programs. In short, he realized leadership does not occur in a vacuum, but rather in a social setting (i.e., organizational structure and hierarchy).
While developing the Army's leadership programs, Dr. Clement came to meet Dr. Elliot Jaques. Dr. Jacques’ background in human nature and social organizations coupled with Dr. Clement’s background in leadership and military organizations led to a dynamic partnership. Together, their work aroused the interest of the CEO of a large mining company in Australia, CRA. In 1985, Dr. Clement retired from the United States Army after 20 years of service to found Organizational Design, Inc. ODI’s original charter was to pursue organizational design work through a partnership with Dr. Jaques both at CRA and the US Army. Sir Roderick Carnegie, then CEO of CRA Australia, initiated a full scale implementation and subsequent total reorganization of CRA based on the work of Dr. Clement and Dr. Jacques. This work led to the authoring of two books: Requisite Organization published in 1989 in which Dr. Clement was a significant contributor, followed by Executive Leadership published in 1991 in which Dr. Clement and Dr. Jaques were co-authors. These two long-term field projects (U.S. Army and CRA) and these two books (Requisite Organization and Executive Leadership) form the basis of Organizational Design’s approach to organizations.
In subsequent years, this set of basic organizational design principles has proven to be central in achieving dramatic increases in the efficiency and effectiveness of contemporary business and government organizations. As a consultant to industry and government, Dr. Clement specializes in the application of the design principles outlined in his latest book (It’s All About Work) to the organization of work, including key work related processes and the underlying leadership and management skills required to perform such work effectively. Substantial improvements in productive effectiveness have occurred as a direct result of Dr. Clement’s organizational interventions (e.g., 30% cost reductions, 6% annual productivity increases over a ten year period, etc.).
Dr. Clement continues to provide his expertise to the Fortune 500 organizations, as well as the U.S. Army. With more than 50 years of experience in leadership and management, in both government and corporate arenas, Dr. Clement provides a unique and time-tested vision as to how an organization should be structured around the work. He has been instrumental in transforming many organizations to more effectively meet the needs of a rapidly changing economic and warfigthting environment.
Dr. Clement’s awards and decorations include several battlefield medals to include e.g., The Soldiers Medal, The Bronze Star Medal, The Meritorious Service Medal, The Air Medal, The Army Commendation Medal for Heroism as well as several distinguished service awards e.g., the Legion of Merit, Military Medical Merit and in 2007, the United States Secretary of the Army Public Service Award.
Dr. Clement has been a longtime member of the Army Science Board (ASB) and former chair of the Innovation Panel for the ASB.
VP, New Business Development
Christopher R. Clement is the co-author of It’s All About Work;
Organizing Your Company To Get Work Done. In addition, he is currently a small business owner of a retail business. He has utilized his knowledge of sound business and organizational principles in several different roles including a Fortune 500 corporate executive, small business owner and consultant. He has been an executive and/or owner in the industrial services, franchise automotive and retail industries. As an executive with a proven track record in building and growing business’s, building brands and turning around underperforming business units he demonstrated that the principles of Dr. Elliott Jaques and Requisite Organization apply to various different organizations of all sizes. He has successfully served as an executive coach and consultant in various different industries from defense to traditional to internet organizations.
Christopher R. Clement graduated from Texas Christian University with a Bachelors in Business Administration and entered the Kmart management training program where he became a store manager. He then joined Dr Clement at Organizational Design to oversee operations before moving into a consultant role. As a consultant he specialized in restructuring revenue delivery systems (routes) to enable achievement of strategic plans. In addition he participated in projects in manufacturing, foreign countries, defense contractors and the US Army.
His restructuring of the route delivery system for an industrial laundry company led to his joining the client, G&K Services, to implement the new structure nationwide. Upon project completion he served in several senior leadership positions there, Regional Marketing Director, General Manager and National Account Executive. He then came upon an opportunity to buy a struggling Toyota franchise, where he applied his business and organizational expertise to successfully lead a turnaround there with a 100% increase in revenue growth his first year as owner. His success there led to his purchase of the two other new car franchises and the foundation of an insurance company. He demonstrated that the principles of Requisite Organization, with some modifications, are equally impactful for small business as they are for large, complex organizations. Just prior to the collapse of the auto industry he began to sell all his auto business’s and began a transition back to Organizational Design Inc which was completed in 2009. Upon returning to ODI he assumed the role of VP of New Business Development with an emphasis on expanding ODI services in the corporate arena and creating new products/services for the changing consulting industry. Although successful in consulting business, Clement never lost his passion for small business and in 2013 purchased a small retail business.
He received multiple awards for sales success, customer service and profitability at G&K Services, including #1 sales executive in the company and top Regional Marketing Director. As an auto dealer he achieved #1 ranking in customer satisfaction as a Toyota dealer, e-dealer of the year multiple times (internet sales), and created “Cooking for Kids” which became the Texas State Professional BBQ Cookoff, benefiting the local Boys and Girls Club . He is board President of the local Boys and Girls Clubs of America and in 2010 founded a youth soccer league with the Club. He is an active runner and triathlete, finishing several marathons, triathlons and an Ironman.
Senior Consultant and Director, Business Operations
Carleton J. Clement currently serves as a Senior Consultant and Director, Business Operations for Organizational Design Inc. (ODI).
Upon his arrival at ODI in 2001 Carleton began working on multiple organizational studies for the U.S. Army, most notably a multi-year analysis of the U.S. Army Installation Command. After conducting more than 600 interviews in 5 countries, the project eventually led to a smaller, more agile headquarters, a centrally located regional structure and approximately $700M in annual savings. In addition to extensive project work within the Department of Defense, Carleton has also conducted organizational studies in the private sector for companies such as Office Depot and Textron Defense Systems. He has also participated in Global Requisite Organizational Summits held in Canada and Argentina.
In his Business Operations role, he is tasked with the daily management of ongoing project efforts, training operations, web content and personnel/contractor management.
Prior to his current role, Carleton spent 5 years at G&K Services, where he held various sales roles from Route Sales, Territory Sales, Major Account Sales and eventually responsible for all Direct Sales in the Colorado region. His willingness to “go farther” than his competitor and offer “outside the norm” product availability led to explosive market share growth, as well as the highest corporate sales honors. Carleton eventually secured exclusive partnerships with leading oil and gas companies to provide flame retardant safety apparel to thousands of employees in rural Colorado.
Carleton is a graduate of The University of Tulsa and holds a BSBA - Management degree. He also holds SECRET Level Security Clearance issued by the U.S. Department of Defense. Carleton has received numerous sales awards including the “Spirit of Excellence Award,” “Benchmark Award”, and “Colorado’s Top Sales Executive” four times.
Below is an Excerpt from It’s All About Work.
Authored by Dr. Stephen D. Clement and Christopher R. Clement
“Who the Hell Is Elliott Jaques?” Is actually the title of chapter 8 in Dr. Jerry Harvey’s book (author of The Abilene Paradox) How Come Every Time I Get Stabbed in the Back My Fingerprints Are on the Knife? Dr. Harvey introduces the reader to Elliott Jaques with a story of his checking out one of Elliott’s books at his “beloved institution’s” library to find that he was only the second person to ever check out the book, A General Theory of Bureaucracy (1976):
Despite its absence from the New York Times best-seller list, I read it and found it to be one of the most creative, stimulating, exciting, rigorous, confrontational, intellectually demanding, and morally provocative pieces of work I had ever read in the field of management and organizational behavior. No, that’s not accurate. I found it to be the most creative, stimulating, exciting, rigorous, confrontational, intellectually demanding, and morally provocative piece of work I had ever read in the field of management and organizational behavior. In light of my reaction, I began to wonder how I, who pride myself as being a semi-bright, relatively well-read professional inthe field of organizational behavior, had not heard of Jaques’ work.
The first person to check out the book was the one who had referred him to Jaques’s work in the first place, and that was three years prior. Harvey then proceeds to network throughout the world of organizational behavior specialists, management thinkers, consultants, academics, executives, and students in an informal poll to find who would have reason to know Elliott Jaques and understand his work. Harvey writes that the majority of the responses he received were essentially, “Who the hell is Elliott Jaques?”
Elliott Jaques did not set out to be a management thinker; in fact, by education and profession, he began his career far away from organizations, specifically with a career in medicine. He received his M.D. from Johns Hopkins followed by a Ph.D. in social relations from Harvard. Dr. Jaques moved to London and studied and worked alongside Melanie Klein in her work in psychoanalyzing children, some as young as two years old.
During World War II, Dr. Jaques was tasked by the British Army to assist in identifying which young soldiers might one day be officers and generals. It was while working in the British Army that he first began to ponder the role and impact of the organization on the individual.
Consistent with this concern, Dr. Jaques became one of the first serious management theorists to address the social role of the corporation way back in the 1960s. His whole study of organizations was centered on pondering some of the most fundamental questions of human society: What is a good social institution? Can individuals be free in an organization? Can there be fairness, justice, and liberty in a hierarchy of authorities? At the heart of these issues, according to Jaques, is the importance of managerial institutions and managerial leadership to the achievement of trust in a society. Jaques argued that managerial organizations have become the most important social institutions in a modern free-enterprise democratic society.
According to Dr. Jaques, everyone’s ideas about human nature at work are clouded by ubiquitous, invasive, and serious misconceptions. These misconceptions have continuously fueled the development of poorly designed managerial leadership systems. Dr. Jaques argued that liberty and freedom are basic conditions of individuals living and working together in social systems. If these social systems are to flourish, they must be organized requisitely to provide for the trust and justice required for effective interpersonal dealings. Dr. Jaques goes on to state that bureaucracy is the only structure that truly fits human nature. Free enterprise democracy is essential for healthy working institutions, for it places these institutions firmly in the position of having to understand social needs to be able to compete and satisfy them in order to survive. Bottom line, the question of how to organize today’s institutions requisitely should be of major concern to today’s senior executives.
It’s All About Work
Starting in 1951, Dr. Jaques authored over twenty books, many of which were seldom read or referenced in organizations throughout the world. In 1964, he first proposed the idea of time span, essentially surmising that the higher up an individual is in an organization, the longer their outlook or time horizon should be. He proposed that by measuring an individual’s time span of work, researchers could ascertain at what level of work (i.e., complexity) the individual was performing. Dr. Jaques began exploring, testing, and researching this theory in the years to follow while working at Glacier Metals in the United Kingdom. It was there that he first began to study the number of levels of management in an organization; which he called “strata.” He explored the nature of those levels and their impact on the organization, its people, and its attendant work station. Much of this early work was published in A General Theory of Bureaucracy in 1976.
Dr. Jaques’s book eventually caught the attention of Sir Roderick Carnegie, who as the chief executive officer (CEO) of CRA (a large Australian mining firm) was looking for someone in the management field to help improve the company’s competitive effectiveness. Sir Roderick had spent twelve years with McKinsey Consulting observing how the best companies in the world achieved productivity and efficiency. Sir Roderick found that having sound objectives, well-executed personnel practices, and well-implemented management practices motivated highly talented people. (In his work with McKinsey, Sir Roderick developed the strategic business unit structure that was first implemented in GE, and remains so today.)
A belief that management practices are seriously flawed and that they are based on erroneous assumptions about human behavior and dependent on faulty measurement indices, such as medicine in the fifteenth century. Thus, they offer a vast opportunity for improvement
A belief that development of the time-span instrument was a significant discovery that now permits the objective assessment of the size of a job. To Jaques, this was the management equivalent of medicine’s thermometer, which, when it was invented, dramatically changed the course of medical diagnosis. Discovery of time-span measurement was considered the first step in introducing scientific methods to the running of large-scale organizations.
A strong feeling that over the course of a number of years a set of universal principles would be discovered that would transform the field of management.
A belief that any long-term improvement requires the dedicated efforts and hard work of line managers at all organizational levels.
An intense feeling that any attempt at getting work done better had to be based upon the application of sound management principles. Jaques loathed so-called short-term quick fixes. To him, the only real solution was the systematic application of field-tested sound principles, and this was likely to require hard work over a longer period of time.
Dr. Jaques continued his work at CRA from 1978 to 1985. According to Sir Roderick, then chairman of CRA, Elliott had not yet fully developed his theory; what he had was a set of deeply held hypotheses. During this same period, Jaques was also involved in serious research with the U.S. Army. Jaques’s research led him to what he called Stratified Systems Theory, a theory that organizations throughout the world could and should have no more than seven distinct layers of management between the worker and the CEO. Jaques had previously discovered two organizations that in their natural state had a similar number of management layers for thousands of years. These two organizations were the Catholic Church and the combat military. Thus, Jaques was interested in studying the U.S. Army, which had seven levels of command, or management. This concept of seven levels has existed in successful armies since the days of the Roman legion.
At this same time, one of the authors of this book, Dr. Stephen Clement, was developing the current policy and doctrine for the U.S. Army’s leadership programs. Dr. Clement was assigned by the army to oversee the Jaques research project. The question Drs. Jaques and Clement began to explore was, why did the U.S. Army maintain seven levels of command in light of the fact that technology dramatically changed the combat power available to a commander at any given level? Drs. Jaques and Clement set out to test Stratified Systems Theory in the very unique test bed of the U.S. Army.
In 1989, Jaques published Requisite Organization, which was the culmination of all of his past books and his more recent research at the U.S. Army and CRA. Dr. Clement, as Dr. Jaques’s partner in the U.S. Army and CRA projects, coauthored Executive Leadership published in 1991. The combined efforts of Jaques, Carnegie, and Clement were subsequently integrated into a set of working hypotheses, which ultimately were refined by Dr Clement into a comprehensive set of management principles.
In the twenty-plus years that have followed the publishing of Requisite Organization and Executive Leadership, countless books have been published in the field of organizational behavior and management thinking. However, we have failed to find a book or theory that has effectively reflected an all-encompassing organizational system theory that has withstood the test of time in the same vein that Jaques’s theories (Stratified Systems Theory and Requisite Organization) have. In our opinion, the seminal value of Elliott Jaques’s contribution is that he has presented us with the beginnings of a General Theory of Organizational Science.
The big contribution of theory is that it brings order out of chaos: it provides meaning where it had previously not existed. Orderliness, however, cannot be provided unless the previously unrelated mass of facts has first been funneled through the mind of some thinking scientist. —Joseph R. Royce
Elliott Jaques was that “thinking” scientist. He was the first to provide us with the concept of organizations having a significant social role. His articulation that organizations (bureaucracies), if designed correctly, permit individuals to operate to their full individual capability and realize their full potential is a central tenet of meeting that societal obligation. Jaques was quick to point out that corporate work entities are built upon contracts with individuals and not with groups or teams. He also argued that for leadership to flourish in any organizational environment, the structure has to be right. Too many organizational layers often result in managers suffocating subordinate efforts because there is insufficient distance between the two parties, manager and subordinate. As described previously, Jaques’s research suggested that the modern corporation need not have more than seven managerial layers from the bottom to the top-most layer, later expanded to eight to reflect even larger and more complex organizations.
Jaques also spelled out the need to clearly define the nature of lateral working relationships in terms of their underlying accountability and authority base. Once the correct structure has been clearly established, it is then necessary to ensure that individuals with the correct working capacity are selected to fill all roles in the structure. Finally, Jaques argued that it is then essential to ensure that all managerial leadership practices support getting work done efficiently and effectively, such as compensation practices—pay people correctly for the level of work they perform, hold subordinates accountable to work to their full individual capacity, have managers perform all potential assessments two levels down, and so on. Given the breadth of the above concepts, it is our contention that Jaques pioneered efforts at developing a general theory of organizational science. In the years since Dr. Jacques’s groundbreaking work, we believe we are now able to describe the foundational building blocks required to dramatically improve organizational performance and individual leadership.
Wikipedia Bio for Elliott Jaques (January 18, 1917 – March 8, 2003) was a Canadian psychoanalyst and organizational psychologist. He developed the notion of requisite organization from his “stratified systems theory,” running counter to many others in the field of organizational development. Although he is most widely known for developing the concept of “social systems as defense against unconscious anxiety” (Jaques, 1951) which shed light on the close relationship between organizational task (i.e. the main aim of an organization, such as to produce, cure, etc.) and unconscious group dynamics and how each can aid or distort the other. Jaques' ideas are still very influential in the psychoanalytic study of organizations.
Born in Toronto, Ontario, Jaques was educated at University of Toronto and studied medicine at Johns Hopkins University before receiving his Ph.D in social relations from Harvard University. During World War II, he moved to England where he remained after the war, studying under British psychoanalyst Melanie Klein. He was a founding member, in 1946, of the Tavistock Institute of Human Relations. In 1964, he founded the School of Social Sciences at Brunel University where he became a professor and head of the school, and of its Research Institute of Organizational Studies.
Dr. Jaques is the author of more than 20 books, including The Life and Behavior of Living Organisms (2002), Social Power and the CEO (2002), Requisite Organization (1996), Human Capability (1994) with Kathryn Cason, Executive Leadership (1993) with Dr. Stephen Clement and General Theory of Bureaucracy (1976).
The concept of the mid-life crisis was introduced by Jaques in 1965. His development approach to organizational development makes him one of the early contributors to Positive Adult Development.