Dynamic-Robust Problem Solving

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Make it real!

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

07


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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Make it real!

www.betacodex.org

Silke Hermann

silke.hermann@ insights-group.de Wiesbaden–Berlin-New York

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