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In {{author|Thomas Kuhn}}’s conception of it<ref>{{br|The Structure of Scientific Revolutions}}. It's a brilliant book. Read it. </ref> playbooks are [[normal science]]: They map out the discovered world. They contain no mysteries or conundrums. They represent tilled, tended, bounded, fenced, arable land. Boundaries have been set, tolerances limited, parameters fixed, risks codified and processes fully understood. | In {{author|Thomas Kuhn}}’s conception of it<ref>{{br|The Structure of Scientific Revolutions}}. It's a brilliant book. Read it. </ref> playbooks are [[normal science]]: They map out the discovered world. They contain no mysteries or conundrums. They represent tilled, tended, bounded, fenced, arable land. Boundaries have been set, tolerances limited, parameters fixed, risks codified and processes fully understood. | ||
[[Playbook]]s are [[algorithm]]s for the [[meatware]]: they maximise efficiency when operating within a fully understood environment. | [[Playbook]]s are [[algorithm]]s for the [[meatware]]: they maximise efficiency when operating within a fully understood environment. They are inhabited exclusively by [[known known]]s. No [[playbook]] will ever say, “if the counterparty will not agree this, make a judgment about what you think is best.” All will say, “any deviations from this requirement must be approved by [[Litigation]] and at least one [[Credit]] officer of at least C3 rank.” | ||
As far as they go [[playbook]]s speak to the belief that ''the only material [[risk]] lies in not complying with established rules'': They are of a piece with the [[doctrine of precedent]]: when they run out of road, one must appeal to the help of a higher authority, by means of [[escalation]] to a [[control function]], the idea being (in theory, if not in practice) that the [[control function]] will develop the [[algorithm]] to deal with the new situation — ''[[stare decisis]]'' — and it will become part of the corpus and be fed back down into the playbook of established [[process]].<ref>This | As far as they go, [[playbook]]s speak to the belief that, as [[normal science]], ''the only material [[risk]] lies in not complying with established rules'': They are of a piece with the [[doctrine of precedent]]: when they run out of road, one must appeal to the help of a higher authority, by means of [[escalation]] to a [[control function]], the idea being (in theory, if not in practice) that the [[control function]] will further develop the [[algorithm]] to deal with the new situation — ''[[stare decisis]]'' — and it will become part of the corpus and be fed back down into the playbook of established [[process]]es.<ref>This rarely happens in practice. [[Control function]]s make ''[[ad hoc]]'' exceptions to the process, do not build them into the playbook as standard rules, meaning that the [[playbook]] has a natural sogginess (and therefore inefficiency).</ref> The [[algorithm]] operates entirely ''inside'' the organisation’s real {{tag|risk}} tolerance boundaries. This is a good thing from a risk monitoring perspective, and is inevitable as a matter of organisational psychology — [[if in doubt, stick it in]] — but it all comes at the cost of efficiency. The [[escalation]]s it guarantees are a profoundly [[waste]]ful use of scarce resources. | ||
In theory the [[control function]] will have its own playbook, and the “court of first instance” is as bound by that as the baseline process is by the basic playbook. There is an [[algorithm]], a recipe, and the main ill that comes about is by not following it. | In theory the [[control function]] will have its own playbook, and the “court of first instance” is as bound by that as the baseline process is by the basic playbook. There is an [[algorithm]], a recipe, and the main ill that comes about is by not following it. | ||