Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

How To Do 21st Century Decision Making

506 views

Published on

Strategy, Decision Making and Leadership for the 21st Century (Not the 20th Century) -- Keynote by Next Jump Co-CEOs, Charlie Kim and Meghan Messenger, for Next Jump Leadership Academy to PACE US Air Force, June 7, 2017.

Published in: Leadership & Management
  • Be the first to like this

How To Do 21st Century Decision Making

  1. 1. 1 @charlieykim @meghanmess STRATEGY, DECISION MAKING & LEADERSHIP for the 21st Century (NOT the 20th) June 7, 2017
  2. 2. SPORTS BUSINESS MILITARY EDUCATION MEDICINE NxJ ADVANTAGE: learning from the best across industries
  3. 3. 3 The PROBLEM: what worked before doesn’t work anymore STRATEGY  GREAT STRATEGY BUT EXECUTED POORLY [DOESN’T EXIST]  STRATEGY CANNOT BE DIVORCED FROM EXECUTION  ALL DATA COMES FROM THE PAST  VUCA WORLD: DATA-DRIVEN DECISION MAKING DOESN’T WORK [FUTURE ≠ PAST]  CENTRALIZED  DECENTRALIZED LEADERSHIP  BUT: SENIOR LEADERS FEEL EVERYTHING IS MISSION CRITICAL [FEAR OF FAILURE]  JUNIOR LEADERS DON’T UNDERSTAND REAL COSTS TO FAILURE [NOT ACTING RESPONSIBLE]
  4. 4. 4 SOLUTION: SUCCESS = Decision Making Factory +  CREATIVITY  COLLABORATION  NOT AFRAID TO TAKE RISKS  MAKE SOMETHING THAT DID NOT EXIST  INTUITION, A GUESS [INFORMED BY DATA]  TEAM: WORKING W/ OTHERS  MAKE “YOUR THINKING” TRANSPARENT  YOU NEED TRUST
  5. 5. 5 EDUCATION 1.0  ISOLATION  FEAR WORK 1.0 SUBJECTS [SERVE THE KING] WORK 2.0 FOLLOWERS [ASSEMBLY LINE] WORK 3.0 CITIZENS [DECISION MAKERS] EDUCATION 2.0  COMPLIANCE  UNIFORMITY EDUCATION 3.0  CREATIVITY  COLLABORATION 1750 KING FREDERICK THE GREAT 21ST CENTURY: INNOVATION1920 CUBBERLEY: FACTORY MODEL ORIGINS of EDUCATION = ORIGINS of WORK
  6. 6. - David Rose
  7. 7. ALL THESE COMPANIES WENT BANKRUPT
  8. 8. JEFF BEZOS ON BEING DISRUPTED OR BEING A DISRUPTOR WHO IS GOING TO KILL ME, IF WE DON’T MOVE? I GOTTA KILL MYSELF BEFORE THEY KILL ME.
  9. 9. 10 STRATEGIC CHALLENGES FACED BY ALL: DISRUPTED OR DISRUPTOR
  10. 10. 1991: $20MM 1996: $2MM 2001: $200K 2007: $20K NOW: $2K A) DISRUPTED OR B) DISRUPTOR: ANY COMPANY DESIGNED FOR SUCCESS IN THE 20TH CENTURY IS DOOMED TO FAILURE IN THE 21ST CENTURY
  11. 11. 12 Companies have outgrown traditional management..  CEOS WORRIED OF OTHER BIG CO  STRATEGY CHANGED EVERY 1-5 YEARS  WHAT YOU PRODUCE: PRODUCTS & SERVICES NOWBEFORE  CEOS WORRY OF 2 KIDS IN A GARAGE  STRATEGY CHANGES EVERY DAY  WHAT YOU PRODUCE: DECISION FACTORY
  12. 12. 13 GENERAL ODIERNO: former Head of the U.S. Army “The world is getting so complicated, you have to decentralize decision making. Do you really know where your enemy is for sure? The winning model is to build adaptive learning teams.”
  13. 13.  “You will do what I tell you because I out rank you”  Mandate leadership, while sometimes required, is the weakest form of leadership  It focuses on the process rather than the people  Is easier to apply and requires less time  Does not require an understanding of those you are leading Mandated leadership… Can often result in marginal solutions, disinterested members, lack of commitment to the end state, and near zero personal responsibility by those not in charge “leader/follower” model CENTRALIZED
  14. 14. 15 STRATEGY: OLD [20th Century] ~ WORKS OUT CENTRALIZED: STRATEGY, DECISION MAKING & LEADERSHIP  GOALS  KPIS/ METRICS  REWARD SYSTEM/ COMP  HIRING/ PROMOTIONS TRADITIONAL MANAGEMENT LEVERS STOPPED WORKING
  15. 15. Organic Leadership…  “You are part of the solution and we are in this together”  Is more difficult to apply and requires planning  Requires an understanding of those you lead  Requires and environment of trust, teamwork, and a shared sense of responsibility for the outcome Often results in superior solutions, greater buy-in, individual commitment to the end state, and a high degree of personal responsibility across the entire team “leader/leader-in-training” model DECENTRALIZED
  16. 16. 17 STRATEGY: NEW [21st Century] ~ WORKS OUT DECENTRALIZED: STRATEGY, DECISION MAKING & LEADERSHIP EVERYONE..  CONTRIBUTING TO STRATEGY  MAKING DECISIONS  TRAINED TO LEAD AND TRAINING OTHER LEADERS EVERYONE MUST BE TRAINED TO MAKE REAL-TIME DECISIONS/ADJUSTMENTS
  17. 17. 18 STRATEGY: OLD vs NEW STRATEGY CANNOT BE DIVORCED FROM EXECUTION
  18. 18. DECISION MAKING FACTORY [CRAFT] x [DECISION MAKING] = [10X PERFORMANCE]
  19. 19. HOW to do 21st Century DECISION MAKING
  20. 20. 21 STRATEGY is about MAKING DECISIONS/CHOICES.. IS NOT IS “NO = DOUBLE YES”  YOU MUST TEST YOUR CHOICES  B/C WE HEDGE: WE CANNOT SAY NO  CANNOT BE STUPID ON ITS FACE IS: CUSTOMER ORIENTED IS NOT: IGNORING YOUR CUSTOMERS* * NOT A CHOICE  REQUIRES COURAGE  +
  21. 21. 22 CHOICES require COURAGE IS NOT IS C A NEXT VERSION THIS VERSION LAGGING METRICS ADULT METRICS LEADING METRICS BABY METRICS
  22. 22. 23 STRATEGY requires RIGOR + CREATIVITY RIGOR BRILLIANT IN THE BASICS  CREATIVITY MAKE SOMETHING THAT DID NOT EXIST +
  23. 23. 24 HOW to be CREATIVE Simply put, creativity happens when your mind is unfocused, daydreaming or idle. (This is why we have so many “aha” moments in the shower.) Three solutions: 1/ long walks 2/ pick up a hobby/ learn something new 3/ fun and games
  24. 24. 25 ROOT CAUSE
  25. 25. LEVEL 1: GAS “GIVE A SHIT” LEVEL 2: NO LHF “LYING/HIDING/FAKING” LEVEL 3: INDEPENDENT THINKING LEVEL 4: INVITING CRITICAL FEEDBACK LEVEL 5: DECISION MAKING 26 MONEY METRIC “ON-BASE%” MONEYBALL of LEADERSHIP STRATEGY & DECISION MAKING 5 Levels to Decision Making
  26. 26. 27 MONEYBALL of LEADERSHIP 5 Levels to Decision Making OUTCOME: Score/Results ROOT CAUSE 1 CREATIVITY COLLABORATION ROOT CAUSE 2
  27. 27. LEVEL 1 GAS ROOT CAUSE 1
  28. 28. 29 GAS “give a shit” No matter how good your strategy is, if your people don’t have gas “don’t give a shit”, it won’t work. WARNING: Level 1 Alone Leads to…  ENTITLEMENT – perks inflation  FIZZLES OUT – less exciting over time
  29. 29. LEVEL 2 NO LHF “LYING/ HIDING/ FAKING” ROOT CAUSE 2
  30. 30. 31 Another LHF definition..
  31. 31. Common obstacles to accuracy Anchoring bias: Over-reliance on first piece of information Expertise bias: Weighting expert “authority” over information and logic Outcome bias: Judging something based on level of desire for the outcome Ostrich effect: Ignoring dangerous or negative information Observational selection bias: Noticing what was not noted before & wrongly assessing increased frequency Halo effect: Impression of a person or entity influences the assessment of the credibility of the information he/it provides Availability bias: Overestimating importance of available information Stereotyping: Expecting a person or group to have certain qualities without having information Blind spot bias: Failing to recognize your own cognitive bias Sunk cost bias: Being attached to an investment already made (time, effort) despite utility of it
  32. 32. UNCLASSIFIED//FOUO UNCLASSIFIED//FOUO Greatest threat to objectivity
  33. 33. LHF “lying/hiding/faking” = Walking on EGG SHELLS What does LHF feel like? Like you can’t say what you really feel. Like people are not telling you things. Like it’s not safe to disagree. Like it’s not safe to be honest. It feels like walking on egg shells. Poor performing teams are surrounded by eggs shells. And poor performing teams destroy value. 34
  34. 34. Q&A BREAK 5 MIN
  35. 35. LEVEL 2 NO LHF “LYING/ HIDING/ FAKING”  WHAT is No LHF  WHY we LHF  HOW to reduce LHF ROOT CAUSE 2
  36. 36. FEAR: LHF CREATIVITY & COLLABORATION
  37. 37. 38 CREATIVITY:  Do I have an opinion? POV I’m sharing?  Am I revealing my assumptions/ rationale? FEAR:  What am I afraid of? COLLABORATION:  Do I make it easy for others to tell me the truth? AM I MAKING THE RIGHT CALLS?  Right decisions – consistently  Wrong decisions – lessons learned  Indecision – the most common OUTCOME: Score/Results MONEYBALL of LEADERSHIP 5 Levels to Decision Making Our inability to deal with our fears/ our negative emotions
  38. 38. WHAT is No LHF TRUTH, AUTHENTICITY, LEAVING NOTHING UNSAID FACTS, MY THINKING, MY ASSUMPTIONS, GUT/INTUITION, WHAT YOU’RE FEELING [HIGHEST FORM OF TRANSPARENCY]
  39. 39. 40 FEAR: LHF RECKLESS: INAPPROPRIATE TRANSPARENCY TRUTH: NO LHF Too little Too much TRUTH
  40. 40. 41 Inappropriate Transparency TRUTH WHEN DATING TRUTH WHEN RENOVATING
  41. 41. 42 Inappropriate Transparency FLOOD LIGHTING DRAMA GRENADE
  42. 42. 43 No LHF
  43. 43. 44 LHF: Lying/ Hiding/ Faking
  44. 44. 45
  45. 45. Lying Truth
  46. 46. The 2nd Job In an ordinary organization, most people are doing a second job no one is paying them for. In businesses large and small; in government agencies, schools, and hospitals; in for-profits and non-profits and in any country in the world, most people are spending time and energy covering up their weaknesses, managing other people’s impressions of them, showing themselves to their best advantage, playing politics, hiding their inadequacies, hiding their uncertainties, hiding their limitations. Hiding. We regard this as the single biggest loss of resources that organizations suffer everyday. 47
  47. 47. WHY we LHF
  48. 48. 49 why we LHF TOP 3 REASONS [FEAR] 1. We Feel Inferior – it’s contagious 2. We Make a Mistake – leads to downward spirals 3. Loyalty – how we justify it
  49. 49. 50 1. We Feel Inferior – it’s contagious
  50. 50. 51 CULPRIT: we make others feel inferior REALITY LIES
  51. 51. 52 We cannot “stay in our own lane”, we feel inferior watching others succeed VICTIM: can’t stay in our own lane
  52. 52. 53 DOWNWARD SPIRALS 2. We Make a Mistake – leads to downward spirals
  53. 53. 54 DRIVERS of our SUCCESS are also our LIMITING FACTORS  You have more responsibility & stress  Now you worry about how you look  You make a mistake, “you’re in your head”  You start LHF (hiding emotionally)  Emotional Hiding quickly turns into Physically Hiding  You show up to the “bare minimum”  When junior, effort gets you noticed  Gives you the opportunity to get promoted  Back to basics: SHOW UP/ EFFORT  Reapply GAS
  54. 54. 3. Loyalty – how we justify it 55
  55. 55. WHERE IT GOES WRONG: LOYALTY ENTERPRISE TEAM/Dept SELF 56
  56. 56. HOW to reduce LHF YOU HAVE TO TACKLE YOUR FEARS
  57. 57. 58 2 KEY PROGRAMs to build a DECISION MAKING FACTORY COACH SAFE PEER FEEDBACK UNSAFE MAKE IT CULTURAL: EVERYONE MUST DO BOTH [LEARN + TEACH]
  58. 58. 59 GIVING FEEDBACK RECEIVING FEEDBACK
  59. 59. 60 DISRUPTED DISRUPTOR COMPANYINDIVIDUAL A.I. [YOUR JOB AUTOMATED] CREATIVITY [THE HUMAN ADVANTAGE] +- FEAR  LHF  NO CREATIVITY  NO COLLABORATION  BAD DECISION MAKING In Summary
  60. 60. Thank You meghan@nextjump.com twitter: @meghanmess charlie@nextjump.com twitter: @charlieykim

×