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White paper August 2008 Dynamic-robust problem solving - thinking tools for outperformance. A guest contribution white paper for the BetaCodex Network Courtesy of Dr. Gerhard Wohland [email protected] Make it real!

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White paperAugust 2008

White paperAugust 2008

Dynamic-robust problem solving - thinking tools for outperformance.

A guest contribution white paper for the BetaCodex Network

Courtesy of Dr. Gerhard [email protected]

Make it real!

Page 2

benmark university

Institut für dynamikrobusteHöchstleistung

Dr. Gerhard Wohland, [email protected] • 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

Page 3

benmark university

Institut für dynamikrobusteHöchstleistung

formal

dynamic

sluggishness high dynamics high dynamics

machine

man

The historical course of market dynamics

The domination of high dynamic is neither good or bad. It‘s a historical fact.

t1900 1980 2008

Conventionalcompanies

Outperformers

Market pressure

Crafts manufacturing Tayloristic industry Global markets

Page 4

benmark university

Institut für dynamikrobusteHöchstleistung

How to distinguish between “red” and “blue”.

flow

repe

titio

nde

ad

aliv

e

stru

ctur

e

rule

prin

cipl

e

surp

rise

Page 5

benmark university

Institut für dynamikrobusteHöchstleistung

.........

InformationDataValuesBehaviorto practiceto learnAbility (skill)KnowledgeLeadershipAdministration

complex dynamic alive

complicate formal dead

Blue

Duality – the distinction between “red“ and “blue“

Red

....

CommunicationCulture

QualificationCompetenceManagement

”World“

The Integration

behindthe Distinction

Distinctions are needed, if you want to think and describe dynamic relations.

Page 6

benmark university

Institut für dynamikrobusteHöchstleistung

CentreSh

areh

olde

r

Mar

ket

Dynamic market

Stimulus

Resp

on

se

Mar

ket

Centre

Shar

ehol

der

Dull market

Peri-phery

Peri-phery

Peri-phery

Peri-phery

Stimulus

Resp

on

se

Peri-phery

Peri-phery

In dynamic markets, the centre loses its knowledge superiority, and steering collapses.

Centre and periphery under dynamic pressure

Peri-phery

Page 7

benmark university

Institut für dynamikrobusteHöchstleistung

Things to remember about innovation:

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.

Innovation applies to:

• “Products” (meaning: new value creation)

• Organisation (we’ll see more about that)

• Thinking (e.g.: “red” and “blue”)

Page 8

benmark university

Institut für dynamikrobusteHöchstleistung

CentreSh

areh

olde

r

Mar

ket

High dynamic (leadership)Low dynamic (steering and control)

Peri-phery

Peri-phery

Peri-phery

The centre solves problems and gives out orders – the periphery executes upon them.

Problem-solving in low and high-dynamic markets

Peri-phery

The centre divides the problems, passes them to the periphery and re-combines their results into a solution

Knowledge

Problem

Solution

Order to periphery

Peri-phery

Peri-phery

Peri-phery

Peri-phery

Mar

ket

Shar

ehol

der

Competence

Problem

Finds solutions

Competence

Problem

Divides problems

Centre

Page 9

benmark university

Institut für dynamikrobusteHöchstleistung

1. Symmetrization

2. Dual Process Development

3. Culture Observation

4. Strategy versus Plan

5. Economic Outsourcing

“Thinking tools” for outperformers (examples)

Page 10

benmark university

Institut für dynamikrobusteHöchstleistung

value creation value creation

Centre

Periphery

Asymmetrical Symmetrical

Day-to-day business

Innovation

Symmetric coupling of centre and periphery

service

serviceservice

“right to demand”

Innovation

Day-to-day business

Control

Leadership

customer

customer

Central service Central service

The reintegration of day-to-day business responsibilty into the peripheryturns the interface symmetric, and innovation becomes possible.

Self-control

Page 11

benmark university

Institut für dynamikrobusteHöchstleistung

flow

repe

titio

n

Low dynamics High dynamics

The duality of processes

1 2 3 4 5

Problem-solving technology:”Process“-description

Problem-solving technology:People with ideas

Low-dyamicproblem

High-dynamicproblem

dea

d

aliv

e

stru

ctur

e

rule

prin

cipl

e

surp

rise

High-dynamic problems call for an increase in the red part of the solving process.

Page 12

benmark university

Institut für dynamikrobusteHöchstleistung

The similarity in the complex portion of all problems

Tayloristic

/ Federativ

e

Management

Sales

IT

Costs

Project Management

Knowledge ManagementOrganization

Mastery / Knowledge

Leadersh

ip/Administratio

n

Qualifi-cation

Value creating / Parasitic

Betterment/Administration

Reduction / Optimization

Coupled / Neutral

Administration/Leadershipcomplex

complicated

Page 13

benmark university

Institut für dynamikrobusteHöchstleistung

The duality of culture

Only the blue part of culture can be changed. The red part of it can only be observed!

Behaviour (doing) Values (thinking)

Behaviour-based culture(tayloristic-dull/slow)

Value-based culture(post-tayloristic/dynamic)

Consistingof:

Governed through:

What you can seeand change by decision.

Control (trivial)

What‘s behindand cannot be changed by decision.

Extrinsic motivation to behavior

Leadership (complex)

Intrinsic motivation to thinking

Page 14

benmark university

Institut für dynamikrobusteHöchstleistung

“Strategy”, or “planning”?

In conformity with strategy

Out of bounds!Future Status(Target)

CurrentStatus “Strategic space“

1

2

3

4

5

6

Out of bounds!

If you know the way, then you can make a plan.If you don‘t know the way, then you need strategy.

Page 15

benmark university

Institut für dynamikrobusteHöchstleistung

Make shell(waste/muda) Make core

Buy shell(outsourcing)

Buy core(“Santa Clause“

interface)

we make itourselves!

we buy it!

existing missing

supplier market(external reference)

Business intention(internal

reference)

Outsourcing: Harmony and conflict between“core“ competence and “shell“ competence

1

4

3

2

The outsourcing decision is determined exclusively by the supplier market, not internally. Innovation is limited to core competence.

Page 16

benmark university

Institut für dynamikrobusteHöchstleistung

Dr. Gerhard Wohland, [email protected]

www.betacodex.org

Get in touch with us for more information about leading transformation with the BetaCodex and the Double Helix Framework, or ask us for a workshop proposal.

Make it real!

Niels [email protected] Paulo, Brazil

Gebhard [email protected], Germany

Valérya [email protected] Paulo, Brazil

Andreas [email protected], Germany

Silke [email protected], Germany

Markus [email protected], Switzerland