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The Lost ARC / Unit 18   ARC 439 worked example, 60 to 90 seconds

The Organizational ARC Diagnostic

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The idea

The book's organisational ARC diagnostic asks about the three needs of the system itself, through questions about structures, policies and rewards rather than any one leader.

In practice

Step one, autonomy: how many approval levels do routine decisions need, are roles defined by outcomes or prescribed steps, and is innovation rewarded or deviation punished? Step two, relatedness: do spaces and reward systems encourage connection and collaboration, and does onboarding integrate newcomers into relationships or only into procedures? Step three, competence: does real money and time go to development, are stretch assignments shared fairly, and is failure treated as learning or as a career-limiting event?

Where people slip

The book describes weak autonomy support at scale as producing the organisational equivalent of learned helplessness: a workforce that waits for direction, complies rather than contributes, and invests only the minimum effort needed to avoid trouble.

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