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Thinking Tools for Outperformance. <br>Guest contribution paper for the BetaCodex Network, authored by Dr. Gerhard Wohland, systems theorist from Germany.
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Make it real! DYNAMIC- ROBUST PROBLEM-SOLVING ThinkingToolsforOutperformance 07 AguestcontributionwhitepaperfortheBetaCodexNetwork CourtesyofDr.GerhardWohland BetaCodexNetworkWhitePaper,Aug2008
TheAuthor: Dr.GerhardWohland, gerhard.wohland@comperdi.de • PhDinphysics • 1946,Germany • DirectoroftheInstitutefor Dynamic-RobustOutperformance (IdH),Germany Someclients:DeutscheTelekomAG, DaimlerChryslerAGStuttgart.VWAGWolfsburg, Schwan-STABILONürnberg,GerlingKöln, debisSystemhausStuttgart,BoschStuttgart Page2
Fundamentalconceptsforunderstandingofmarketdynamics andhoworganizationscandealwiththem 1. The“Taylortub”-aboutthehistoriccourseofmarketdynamics 2. Duality-thedistinctionbetween“red”and“blue” 3. Centreandperipheryunderdynamicpressure 4. Innovationandproblem-solvingindynamicmarkets Page3
Thehistoricalcourseofmarketdynamics highdynamics sluggishness highdynamics Globalmarkets Tayloristicindustry Craftsmanufacturing dynamic man Outperformers Market pressure Conventional companies machine formal t 1900 1980 2008 Thedominationofhighdynamicisneithergoodorbad.It‘sahistoricalfact. Page4
Duality–thedistinctionbetween“red“and“blue“ TheIntegration behind theDistinction Blue Red complicate formal dead complex dynamic alive ”World“ Administration Management Leadership Knowledge Competence Ability (skill) tolearn Qualification topractice Behavior Culture Values Data Communication Information ..... .... .... Distinctionsareneeded,ifyouwanttothinkanddescribedynamicrelations. Page6
Centreandperipheryunderdynamicpressure Dullmarket Dynamicmarket Peri- phery Peri- phery Peri- phery Peri- phery Centre Centre Stimulus Peri- phery Stimulus Peri- phery Peri- phery Response Response Indynamicmarkets,thecentrelosesitsknowledgesuperiority,andsteeringcollapses. Page7
Thingstorememberaboutinnovation: Innovationappliesto: • “Products” (meaning:newvaluecreation) • Organisation (we’llseemoreaboutthat) • Thinking (e.g.:“red”and“blue”) Innovationis: • “Thelastlinkinalongchainofdefeats.” • ”Red”.Therefore,thequestionisn’tHow?todoit,butWho?candoit. • Ataskthatcannotbedelegatedbythecentre. • Dependingonhavinga“ResistantNest”fortalent. Page8
Problem-solvinginlowandhigh-dynamicmarkets Lowdynamic (steeringandcontrol) Highdynamic (leadership) Peri- phery Peri- phery Peri- phery Peri- phery Knowledge Competence Competence Centre Centre Problem Problem Problem Solution Dividesproblems Findssolutions Ordertoperiphery Peri- phery Peri- phery Peri- phery Peri- phery Thecentredividestheproblems, passesthemtotheperipheryandre- combinestheirresultsintoasolution Thecentresolvesproblems andgivesoutorders– theperipheryexecutesuponthem. Page9
Some“Thinkingtools”foroutperformers thatweoutlineinthispaper 1. Symmetrization 2. DualProcessDevelopment 3. CultureObservation 4. StrategyversusPlan 5. EconomicOutsourcing Page10
Symmetriccouplingofcentreandperiphery Asymmetrical Symmetrical Centralservice Centralservice Centre Innovation Innovation Leadership Day-to-daybusiness service Control service service “righttodemand” Day-to-daybusiness valuecreation Self-control valuecreation Periphery customer customer Thereintegrationofday-to-daybusinessresponsibiltyintotheperiphery turnstheinterfacesymmetric,andinnovationbecomespossible. Page11
Thedualityofprocesses Lowdynamics Highdynamics Problem-solvingtechnology: Peoplewithideas 1 2 3 4 5 Problem-solvingtechnology: ”Process“-description Low-dyamic problem High-dynamic problem High-dynamicproblemscallforanincreaseintheredpartofthesolvingprocess. Page12
Thesimilarityinthecomplexportionofallproblems complicated Project Management Management Qualifi- cation IT Mastery/Knowledge Valuecreating/Parasitic Coupled/Neutral complex Reduction/Optimization Sales Costs Knowledge Management Organization Page13
Thedualityofculture Behaviour-basedculture (tayloristic-dull/slow) Value-basedculture (post-tayloristic/dynamic) Values (thinking) Behaviour (doing) Consisting of: What‘sbehind Whatyoucansee andchangebydecision. andcannotbechangedbydecision. Governed through: Control (trivial) Leadership (complex) Intrinsicmotivationtothinking Extrinsicmotivationtobehavior Onlythebluepartofculturecanbechanged.Theredpartofitcanonlybeobserved! Page14
“Strategy”,or“planning”? Outofbounds! 5 Outofbounds! Future Status (Target) 4 2 1 6 Current Status “Strategicspace“ 3 Inconformitywithstrategy Ifyouknowtheway,thenyoucanmakeaplan. Ifyoudon‘tknowtheway,thenyouneedstrategy. Page15
Outsourcing:Harmonyandconflictbetween “core“competenceand“shell“competence suppliermarket (externalreference) missing existing 1 3 Buycore (“SantaClause“ interface) Buyshell (outsourcing) webuyit! Business intention (internal reference) 2 4 wemakeit ourselves! Makeshell (waste/muda) Makecore Theoutsourcingdecisionisdeterminedexclusivelybythesuppliermarket, notinternally.Innovationislimitedtocorecompetence. Page16
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