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Dynamic-Robust Problem Solving (BetaCodex07)

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Thinking Tools for Outperformance. …

Thinking Tools for Outperformance.
Guest contribution paper for the BetaCodex Network, authored by Dr. Gerhard Wohland, systems theorist from Germany.

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  • 1. DYNAMIC- ROBUST PROBLEM-SOLVINGThinking Tools for Outperformance A guest contribution white paper for the BetaCodex Network Courtesy of Dr. Gerhard Wohland Make it real! BetaCodex Network White Paper, Aug 2008
  • 2. Page 2 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
  • 3. Page 3 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 Fundamental concepts for understanding of market dynamics and how organizations can deal with them
  • 4. Page 4 formal dynamic sluggishness high dynamicshigh 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 Conventional companies Outperformers Market pressure Crafts manufacturing Tayloristic industry Global markets
  • 5. Page 5 How to distinguish between “red” and “blue”.
  • 6. Page 6 ......... InformationData ValuesBehavior to practiceto learn Ability (skill)Knowledge LeadershipAdministration complex dynamic alive complicate formal dead Blue Duality – the distinction between “red“ and “blue“ Red .... Communication Culture Qualification Competence Management ”World“ The Integration behind the Distinction Distinctions are needed, if you want to think and describe dynamic relations.
  • 7. Page 7 Centre Dynamic market Stimulus Response Centre Dull market Peri- phery Peri- phery Peri- phery Peri- phery Stimulus Response Peri- phery Peri- phery In dynamic markets, the centre loses its knowledge superiority, and steering collapses. Centre and periphery under dynamic pressure Peri- phery
  • 8. Page 8 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”)
  • 9. Page 9 Centre 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 Competence Problem Finds solutions Competence Problem Divides problems Centre
  • 10. Page 10 1.  Symmetrization 2.  Dual Process Development 3.  Culture Observation 4.  Strategy versus Plan 5.  Economic Outsourcing Some “Thinking tools” for outperformers that we outline in this paper
  • 11. Page 11 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 periphery turns the interface symmetric, and innovation becomes possible. Self-control
  • 12. Page 12 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-dyamic problem High-dynamic problem High-dynamic problems call for an increase in the red part of the solving process.
  • 13. Page 13 The similarity in the complex portion of all problems Management Sales IT Costs Project Management Knowledge ManagementOrganization Mastery / Knowledge Qualifi- cation Value creating / Parasitic Reduction / Optimization Coupled / Neutral complex complicated
  • 14. Page 14 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) Consisting of: Governed through: What you can see and change by decision. Control (trivial) What‘s behind and cannot be changed by decision. Extrinsic motivation to behavior Leadership (complex) Intrinsic motivation to thinking
  • 15. Page 15 “Strategy”, or “planning”? In conformity with strategy Out of bounds! Future Status (Target) Current Status “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.
  • 16. Page 16 Make shell (waste/muda) Make core Buy shell (outsourcing) Buy core (“Santa Clause“ interface) we make it ourselves! 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.
  • 17. © BetaCodex Network – All rights reservedWhite paper – The 3 Structures of an Organization 25 Find all BetaCodex Network white papers on www.betacodex.org/papers and on Slideshare. Special   Edi+on   Special   Edi+on   The BetaCodex Network white papers - so far
  • 18. www.organizeforcomplexity.com The “Organize for Complexity” book Paperback edition Deluxe edition (with bonus chapter)
  • 19. betacodex.org Get in touch with us for more information about leading BetaCodex transformation, and ask us for a keynote or a workshop proposal. Make it real! Niels Pflaeging contact@nielspflaeging.com nielspflaeging.com New York, Wiesbaden Valérya Carvalho mvaleriacarv@gmail.com LinkedIn São Paulo Silke Hermann silke.hermann@nsights-group.de insights-group.de Wiesbaden, Berlin, New York Lars Vollmer me@lars-vollmer.com lars-vollmer.com Hannover, Stuttgart

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