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DYNAMICROBUST PROBLEM-SOLVING Thinking Tools for Outperformance A guest contribution white paper for the BetaCodex Network Courtesy of Dr. Gerhard Wohland BetaCodex Network White Paper, Aug 2008
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The Author: Dr. Gerhard Wohland, gerhard.wohland@comperdi.de • PhD in physics • 1946, Germany • Director of the Institute for Dynamic-Robust Outperformance (IdH), Germany Some clients: Deutsche Telekom AG, DaimlerChrysler AG Stuttgart. VW AG Wolfsburg, Schwan-STABILO Nürnberg, Gerling Köln, debis Systemhaus Stuttgart, Bosch Stuttgart
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Fundamental concepts for understanding of market dynamics and how organizations can deal with them
1.
The “Taylor tub” - about the historic course of market dynamics
2.
Duality - the distinction between “red” and “blue”
3.
Centre and periphery under dynamic pressure
4.
Innovation and problem-solving in dynamic markets
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The historical course of market dynamics high dynamics dynamic
Crafts manufacturing
sluggishness
high dynamics
Tayloristic industry
Global markets
man Outperformers
Market pressure
Conventional companies
machine formal 1900
1980
2008
t
The domination of high dynamic is neither good or bad. It‘s a historical fact. Page 4
How to distinguish between “red” and “blue”.
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Duality – the distinction between “red“ and “blue“
The Integration behind the Distinction
Blue complicate formal dead
Red complex dynamic alive
”World“ Administration Knowledge to learn Behavior Data .....
Management Competence Qualification Culture Communication ....
Leadership Ability (skill) to practice Values Information ....
Distinctions are needed, if you want to think and describe dynamic relations.
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Centre and periphery under dynamic pressure Dull market
Dynamic market Periphery
Periphery
Periphery
Centre
Centre
Stimulus
Periphery
Periphery
Periphery
Stimulus
Periphery Response
Response
In dynamic markets, the centre loses its knowledge superiority, and steering collapses. Page 7
Things to remember about innovation:
Innovation applies to: • “Products” (meaning: new value creation) • Organisation (we’ll see more about that) • Thinking (e.g.: “red” and “blue”) Innovation is: • “The last link in a long chain of defeats.” • ”Red”. Therefore, the question isn’t How? to do it, but Who? can do it. • A task that can not be delegated by the centre. • Depending on having a “Resistant Nest” for talent.
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Problem-solving in low and high-dynamic markets Low dynamic (steering and control)
Periphery
Periphery
High dynamic (leadership)
Periphery
Periphery
Knowledge Problem
Competence Competence
Centre
Problem
Solution Order to periphery
Centre
Divides problems
Finds solutions Periphery
Periphery
The centre solves problems and gives out orders – the periphery executes upon them.
Problem
Periphery Periphery
The centre divides the problems, passes them to the periphery and recombines their results into a solution
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Some “Thinking tools” for outperformers that we outline in this paper
1.
Symmetrization
2.
Dual Process Development
3.
Culture Observation
4.
Strategy versus Plan
5.
Economic Outsourcing
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Symmetric coupling of centre and periphery
Centre
Asymmetrical
Symmetrical
Central service
Central service
Innovation
Innovation
Day-to-day business Control
Leadership
service service
service “right to demand�
Day-to-day business value creation
value creation
Self-control
Periphery customer
customer
The reintegration of day-to-day business responsibilty into the periphery turns the interface symmetric, and innovation becomes possible. Page 11
The duality of processes Low dynamics
High dynamics Problem-solving technology: People with ideas
1
2
3
4
5
Problem-solving technology: �Process“-description Low-dyamic problem
High-dynamic problem
High-dynamic problems call for an increase in the red part of the solving process. Page 12
The similarity in the complex portion of all problems
complicated
Project Management
Management
IT
Costs
Couple d/
Red
Organization
Neutra
ptim O / n uctio
l
n izatio
complex
Qualification
edge l w o n K / Mastery
Value creati ng
/ Para
sitic
Sales
Knowledge Management
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The duality of culture Behaviour-based culture (tayloristic-dull/slow)
Consisting of:
Behaviour (doing) What you can see and change by decision.
Governed Control (trivial) through: Extrinsic motivation to behavior
Value-based culture (post-tayloristic/dynamic)
Values (thinking) What‘s behind and cannot be changed by decision.
Leadership (complex) Intrinsic motivation to thinking
Only the blue part of culture can be changed. The red part of it can only be observed! Page 14
“Strategy”, or “planning”? Out of bounds!
5
Out of bounds!
Future Status (Target)
4 2 1 6 Current Status
“Strategic space“ 3
In conformity with strategy
If you know the way, then you can make a plan. If you don‘t know the way, then you need strategy. Page 15
Outsourcing: Harmony and conflict between “core“ competence and “shell“ competence supplier market (external reference) missing
existing 1 Business intention (internal reference)
we buy it!
we make it ourselves!
4
Buy shell (outsourcing)
Make shell (waste/muda)
3
Buy core (“Santa Clause“ interface)
2 Make core
The outsourcing decision is determined exclusively by the supplier market, not internally. Innovation is limited to core competence.
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Silke Hermann
silke.hermann@ insights-group.de Wiesbaden–Berlin-New York
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