1.1 Governance Standards: Scope, Hierarchy & Control

Ambiguity in organizational standards creates operational drag and inconsistent decision-making. This chapter establishes the Dannie Operating System (DOS) as the binary source code for human interaction, management logic, and corporate governance. It replaces subjective interpretation with definitive standards for how we hire, coordinate, and evaluate, ensuring that while our manufacturing processes obey physics, our management processes obey logic.

System Scope & Authority

The DOS governs the "Management Layer" (the software of the company), not the "Technical Layer" (the physics of the product).

Scope Decision Logic:

• If the query concerns Recruitment, Org Structure, Meetings, or Authority Limits → Then consult DOS (this Handbook).
• If the query concerns Solder Profiles, Component Footprints, or IPC Classifications → Then consult the Technical Repository.

Pro-Tip: If the question is "How do I solder this?", check the Tech Repo. If the question is "Who approves the purchase of the soldering machine?", check the DOS.

The Documentation Hierarchy

Not all documents carry equal weight. Operational integrity requires distinguishing between immutable laws and flexible guidelines.

1. Principles (The Constitution)

• Status: Immutable.
• Function: Strategic non-negotiables to guide decisions when no rule exists.
• Change Control: Board/CEO consensus only.

2. Policies (The Rules)

• Status: Mandatory.
• Function: Risk mitigation (Legal/Financial/Safety).
• Language: Uses "MUST" or "SHALL".
• Compliance: 100% required. Deviation constitutes a violation.

3. SOPs (The Workflows)

• Status: Standard Practice.
• Function: Reproducibility and efficiency.
• Language: Uses "SHOULD".
• Compliance: Follow unless a specific technical constraint forces a deviation.

4. Templates (The Tools)

• Status: Recommended.
• Function: Reduce cognitive load.
• Compliance: Modify as needed for context.

Language Standards (The Code)

Precision prevents paralysis.

• MUST / SHALL = Mandatory. Failure to comply is a disciplinary event.
• SHOULD = Recommended. Deviation requires documented justification.
• MAY = Optional. Left to professional judgment.

Ownership & Change Control

Static documents become operational risks. The DOS is dynamic, but changes must be controlled to maintain system integrity.

Ownership Matrix:

• If module impacts Strategy/Culture → Owner: CEO.
• If module impacts Talent/Comp/Structure → Owner: HR Director.
• If module impacts Operations/Logistics → Owner: COO.

The Single Source of Truth:

• Written = Standard: Only processes documented here are enforceable.
• Verbal = Suggestion: Hallway agreements or Slack messages are not mandates.
• Conflict Logic: If Verbal Directive ≠ Handbook → Then Handbook prevails.

Waiver Protocol:

Rigidity causes fracture. Controlled flexibility allows resilience.

• Action: Submit "Process Waiver Request" to Owner.
• Constraint: Waivers MUST have a Termination Date (≤ 90 days).
• Outcome: On expiry, revoke waiver or rewrite the standard.

Enforcement & Diagnostic Logic

Punishing every error hides systemic failures. Respond to violations based on root cause, not outcome.

Violation Diagnostic Sequence:

1. Check the System: If the standard was unclear/inaccessible → Then Rewrite Policy. (No Penalty).
2. Check the Training: If the individual lacked training → Then Train. (No Penalty).
3. Check the Intent: If standard/training were clear but violation was accidental → Then Coach/Warn.
4. Discipline: If violation was willful or repeated → Then Initiate Corrective Action.

Pro-Tip: Process Correction > Person Correction. A rule that is consistently broken is usually a bad rule, not a sign of bad employees.

Final Checklist

Parameter	Specification	Control Authority
Governance Scope	People, Decisions, Coordination	CEO / HR
Technical Scope	Manufacturing, Engineering, Quality	CTO / COO
Mandatory Language	MUST / SHALL	Policy Owner
Waiver Limit	≤ 90 Days (Mandatory Expiry)	Policy Owner
Conflict Resolution	Written Handbook overrides Verbal	CEO
Change Approval	Major (CEO + Owner) / Minor (Owner)	Owner
Enforcement	Fix System → Train → Coach → Discipline	HR / Manager