Dialogic Design for the Intelligent Enterprise

Slide 1: Dialogic Design for the Intelligent Enterprise Collaborative strategy, process, and action Peter H. Jones, PhD Dialogic Design International, LLC Institute for 21st Century Agoras INCOSE 2007 Symposium

Slide 2: The Intelligent Enterprise James Brian Quinn (1992, 2002): “The self-sufficient enterprise is becoming anachronistic. Each organization is part of a matrix of merging and evolving ideas and opportunities. … Leading companies focus less on positioning and more on patterns of people and institutions they work with - or against.”

Slide 3: Structured Dialogic Design Evolution of Interactive Management Purposes : - Strategic Planning / Consensus Scenarios - Managing Uncertainty - Mapping Enterprise Transformation - Democratic resolution of wicked problems - Way of coordinating enterprise intelligence

Slide 4: Transformation = attaining goals of intelligent enterprise Structured Dialogic Design = Way of transforming for collective intelligence Proposition: Common methods of transformation ill-suited to the IE goal, instrumentalism does not lead to IE

Slide 5: Why? It doesn’t work for strategy … “Organizations have been optimized for mediocrity, or ruin.” Michael Raynor, The Strategy Paradox • Enterprise transformation, as a long-term corporate strategy, is inherently uncertain. • Decision makers aiming for strategic certainty are betting the farm on One Plan. • Purpose of (any) strategy is to design options for unforeseeable uncertainties.

Slide 6: Strategic Paradox Goal of strategy: “Competitive inimitability” - Creating non-copyable processes for innovation Org intelligence requires culture of: - Distributed knowledge & decisions - Self-organizing teams - Processes optimized by practitioners Competitive strategy requires commitment - How to resolve? What do you align to?

Slide 7: Transformation as Strategic Change to IE Transformation = Organizational strategy Two schools : Emergent and Designed Drivers for Transformation: – Value deficiencies (Rouse) – Purpose / Strategic design – Profitability / survival • “Self-organizing emergence” unsuitable for complex or large-scale enterprises • IE “by design” may be overdetermined

Slide 8: Requisite Uncertainty Board 10 yrs: Uncertainty Strategic Vision Strategic Transformation (Collins “Good to Great”) Corporate 5-10 yrs: Corporate Renewal Operating 5 yrs: Strategic Commitment Division Operational Effectiveness (Porter: Cost leadership or product differentiation) Commitment Function 1Q – 1 yr. Process Redesign

Slide 9: Levels of Transformation Board 10 yrs: Uncertainty Transformation Strategic Transformation Corporate 5-10 yrs: Organizational Architecture Corporate Renewal Operating 5 yrs: Process Division Reengineering Operational Effectiveness Commitment Function 1Q – 1 yr. Socialization Process redesign

Slide 10: Why Dialogic Design? Transformation risks are profound – Resources, Processes, Values change (Christensen) – Failures of Communication & Collaboration (Kotter) – Most managers do not consider uncertainties Top-down planning analytical & past-based – Collaboration exposes risks & generates options – Knowing risks & options = flexible strategy A complex, interconnected problem, multi-dimensional – Traditional methods/practices insufficient Dialogue is generative, progressive – Collaboration = resiliency & comprehensive design

Slide 11: Intelligent Enterprise Applications SDD gives organizations tools for democratic consensus across (very) disparate stakeholders In a collective planning situation, SDD: – Scales to large-group decision making – Progressive migration of decisions over time – Consensus among very disparate stakeholders – Elicits root causes AND interconnections – Radically democratic process – No one “advantaged”

Slide 12: Model of Structured Dialogue 1. Discovery: Scope inquiry, range of participation 2. Definition: Divergent Dialogue : Triggering Question Open-ended responses (NGT method) Clarification of factors Convergent Dialogue : Clustering responses Voting paired relationships (ISM method) 4. Design Phase 5. Action Planning dialogue Discovery - Initial research into the factors of inquiry. Definition Consensus Design Root cause map Action Planning options Idealized array of design solutions Consensus on near * mid-term Stakeholders first dialogue What in response to Definition issues. actions for all stakeholders. we must consider in our Strategic options that offer strategic game plan. direction & reduce uncertainty.

Slide 13: Strategic goal Transformative vision Influenced Influenced Requirement Requirement(s) Guiding Guiding driver (s) Requirement(s) Influence map of Market C priorities & relationships Iterative dialogue for each deep driver Priority Priority Priority drivers Requirement drivers Cluster markets / customers ket mar ng ndi rsta e Un d Deep driver (s) A Analyzing deep drivers: B E.g. understanding customers Factors in influence map

Slide 14: Dialogic Design Co-Laboratory   Dialogue Co-Laboratory Webscope Screen share Cogniscope II Largely co-located, onsite Teleconference Usually mixed locations ISM method software 15-30+ participants Wiki support Online wiki + teleconference Mixed media & real-time display Mixed media & real-time display Facilitator-managed

Slide 15: Strategic Architecture Influence Map - 9 levels deep - 3 Cycles, No outliers, deeply interconnected

Slide 17: Layered Architecture Mount coordinated/ IV online marketing campaign Clarify / Build brand Prepare a simple identity value package V Introduce complementary services in marketing plan VI Clear model of product funnel & staged offerings VII

Slide 18: Purposes & Uses of Dialogic Design  Resolve issues among diverse stakeholders  Democratic large-group decision making  Policy design & decision making  Complex (wicked) problem solving  Strategic planning & effective priority setting  Portfolio & business asset allocation  Problem identification & root cause analysis

Slide 19: Exemplary SDD Applications • Peace dialogue between Greek and Turkish Cypriots (2006-2007) • National Leadership Agenda for pharmaceutical safety for the National Patient Safety Foundation (NPSF) and AMA. (1999). • Chronic Kidney Disease (CKD) Initiative: 48 stakeholders & 10 observers from 38 organizations defining 85 barriers to improving CKD outcomes, resulting in action plan. (2003). • Co-Laboratory of Democracy for transnational indigenous leaders dialogue in context of globalization: 40 Indigenous leaders from Americas and New Zealand & several experts. (2004). • Food and Drug Administration, Good Practices Review dialogues (1995-1999) • Schering-Plough Drug Development Action Planning (1992-1994). • Alternative Energy Future Planning for Northwest Energy Efficiency Alliance (2000-2001).

Slide 20: Conclusions Enterprise transformation is both competitive & organizational strategy • Must resolve Strategy Paradox. Intelligent enterprises require planning for transformation. • Must resolve the paradox of planning them. Dialogic design has tested & offers method of collective planning & strategic design for uncertainty

Slide 21: References & Sites Dialogic Design International: dialogicdesignllc.com Institute for Global Agoras: globalagoras.org Dialogue websites: The Blogora: blogora.net Dialogue community support wiki Webscope Wiki: Dialogic design templates Some current projects: Michigan Dept. of Education: Universal Design for Learning Cyprus Reunification National Invasive Species Council (USDA)

Slide 22: How People Harness their Collective Wisdom & Power to Construct the Future in Co-Laboratories of Democracy Alexander N. Christakis / Information Age / 2006 Harnessingcollectivewisdom.com