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Cycles
The simplest,	proven	way	
to build your business.
Systems
You gotta put in the effort
to simplify !
Complexity
Time / Effort
Your	message
Your	Target
Organization
There will be 3 evaluations for your certification
1. Your group work + a review of your work by your team mates
(45%)
2. A multiple choice test + Reflection (due 31/7) – (45%)
3. Submit one question to Simran by 09:00 tomorrow
simran@bryancassady.com
Requirements
A good final group presentation
A review of your group
1 question + Test
Systems
What’s the core message
today…
View	1: To move forward effectively you need to focus
your energies on the most important parts of your
business, the best way to do this is to use a systems
view to identify death threats and key opportunities.
View	2: Bullets,
then cannonballs.
View	3: Going
slow to go fast.
Understand what you’re aiming at and why,
take time to shoot bullets together,
then fire cannonballs.
Final
The Theory
What is a
system ?
2	or	more	independent	parts	working	
together	to	achieve	a	common	aim	
A way of doing things
A good system = product of parts
A	bowl	
of	fruit
A	football	
team
A	Toaster
A	Kitchen
A	Marriage
Tools	in	a	
Toolbox
Collection vs Systems
System
A	bowl	
of	fruit
A	football	
team
A	Kitchen
A	ToasterA	Marriage
Tools	in	a	
Toolbox
Collection
A system versus a
process
A way of doing things (it
doesn’t mean people will
work together)
A PROCESS is
2 or more independent parts
working	together	to achieve
a common aim
A GOOD	SYSTEM	is
The construction of new roads increases
the overall capacity of the communication
system, and the situation improves (P1).
Unfortunately, only for a short time.
Shorter travel time attracts more car users.
We use a car more often to run some little
errands (P2).
Average travel time increases (P2), more
people buy cars, resigning from public
transport (P3).
Traffic gets even worse. Meanwhile, the
income of public transport companies
drops, and the quality of service (P4)
deteriorates.
We	enter	the	death	spiral	of	public	
transport!
Hacking the system
New	Zealand
A good innovation
system
A holistic view, so you
can be honest with
yourself
A momentum , a way to
do things that stick
 Purpose
 Process
 Persistency
The	big	value	of	systems	
They keep you learning and they keep you
thinking
A systematic
approach to
making ideas
happen
Quality
Of Ideas
Time
Start
Learning
Cycles
No
Changes
Bad
Cycles
Smart
Winners
Lucky
Winners
Losers
Losers
Cycles: The ABC’s Of Growth.
Cycle 1
Cycle 2
Cycle 3
Cycle 4
Cycle 5 Align/Ask
Build
Communicate
Check
Systematically
Improve
Idea Quality
Time
‘Fire	bullets,	then	cannonballs’
approach explains the success of
companies 10x better than big-leap
innovations and predictive genius
Jim	Collins
Video: bullets then cannonballs
What an amazing idea !!
How to think in systems
3	Guys	and	a	Genie
Assembling the best car
ever
Best Parts don’t a system
make!
The world is often not
linear
Versus
The language of systems
Turn knob Measure Change
Causalities
Filling a glass of water 
Reinforcing feedback
The engine of growth and decline.
Small changes amplify causing accelerated growth
or decline.
Balancing Feedback
Work alone
?
Identify the missing link which connects all the cycles together
How to think in systems
We	resist	system	thinking
Because it is harder and usually more
confrontational
Some old, but
very good advice
1. Appreciation of a system
2. Understand Variation
Common Causes vs Special Causes
3. Understand human behavior
4. Theory of knowledge
20171982 1993
ICEBERG MODEL
One cannot see the tip of the iceberg if
the base is not deep enough!
There is a lot more than the final
outcome which goes unnoticed
Understanding
Systems
A	system	is	complex.	
It is made up of interrelated components of
people and processes with a clearly (or
unclearly) defined, shared destination or goal.
Appreciation of a system depends on quality
leaders’	understanding	the
interconnectedness and interdependence.
In	a	good	orchestra	people	play	together
The	same	should	happen	in	business
Variation
Common Cause versus Special Cause
Common Cause Special Cause
 Is inherent in the design of the
process
 Is due to regular, natural or ordinary
causes
 Affects all the outcomes of a process
 Results in a “stable” process that is
predictable Also known as random
or unassignable variation
 Is due to irregular or unnatural
causes that are not inherent in the
design of the process
 Affect some, but not necessarily all
aspects of the process
 Results in an “unstable”” process
that is not predictable
 Also known as non-random o
Common cause
or
Special Cause ?
 Innovation does not work in 94% of
organizations
 You’re late for class because of a flat tire
 You’re always late for class
 85% of start-ups fail
Deming estimates : 94% of problems are due to common	
causes and are management's responsibility. He estimates that
only 6% of problems are due to special causes
Common Cause or Special Cause
Understand human behaviour Theory of knowledge
Most psychologists agree that
humans have an innate desire to
perform well, to take pride in what
they do. Successful organizations
harness this by ensuring that
systems allow workers to
contribute towards improvement.
Improvement isn’t something you
do once and forget about, it isn’t a
process with an end-point.
Improvement within an
organization has to be continuous.
How to think in systems
It’s	Easy	To	Ignore	What	You	Don’t	
Want	To	Do.
The Stockdale	Paradox	(Named after Vietnam Prisoner of War)
Retain faith that you will prevail in the end, regardless of the
difficulties. AND at the same time confront the most brutal facts of
your current reality, whatever they might be
Success is about getting
everything “good enough”
++ +++ - +++
+ + + +
Failure
Success
Option 1: You can fix a “death
threat”
++ +++ - +++ Failure
Succes
s
++ +++ + +++
Option 2:You can find a “one thing”,
that makes many things better
++ +++ - +++ Failure
Success+++ ++++ + +++
2 ways to be really effective
parallel	to	sequentialmulti‐tasking	to	“unit	asking”
Work alone
Find the answer here
If only one parameter can be improved, in investing 40 hours, by given percentages, 
what would be your choice and why?
A simple answer! -
Work where most progress
The most powerful tool
ever invented for a start-up
Do Now Do Later Don't do 
A study by Economist intelligence with 312 companies split
into 2 groups:
 Go, go, go
 Think, go , think, go (paused at strategic moments)
The companies with strategic pauses achieved:
40% higher sales and 52% higher profits
Slower	is	faster	!
How to think in systems
What does it mean to learn
as you go?
Quite	Simply…
Test Learn Take
Action
Mini versus Maxi Learning
cycles
Mini
Low	stakes	
beta	test
Bullet
Maxi
High	stakes	
investment
Cannonball
Your hypothesis
matters
 Hypothesis, Test, Learn
 Take Action
A system of Active learning =
The heart of Innovation
 Holistic and honest view.
 Accept and Overcome business shortcomings.
 Momentum: a way to doing things that stick
 Purpose
 Process
 Persistency
 Making decisions and taking action as you go
An	Innovation	system	is	incomplete	without	
active	learning
Quick Recap
Increase your odds
of working on the 
right things 
Clarity to move 
forward
Problem finding + 
Stimulus 
+ Diversity
+ Work
Ideas / solutions 
worth testing
Clarity First
Really Listen
Be honest
Opportunities
Death Threats 
Understand
Analyse
Make decisions
A smart next step
A little or a big cycle
If you got it right,
launch cannonballs.
If not, fire more bullets
or try another target
1. Understand	what	you’re	
aiming	at	and	why
Alignment
2. Look	for	better	solutions
Build
3. Check	progress
Communicate + Check
4. Make	decisions
Systems
Your Work
in Groups
Today
Work	today
 What	(review	key	risks)	/	
Who	will	do	what
 Mentor	talks
 2	groups
1. Risk	Reduction
2. Pitch
Work	tomorrow
Speed	Dating
Integrate	feedback
Presentations	end	of	the	day
Pitch / Demo Schedule
Group Start End Eval
4 13:30 13:38 13:40
2 13:40 13:48 13:50
5 13:50 13:58 14:00
7 14:00 14:08 14:10
11 14:10 14:18 14:20
3 14:20 14:28 14:30
Break 14:30 14:45
6 14:45 14:53 14:55
1 14:55 15:03 15:05
10 15:05 15:13 15:15
8 15:15 15:23 15:25
9 15:25 15:33 15:35
Target 5 minutes
Then 2 minutes for feedback
09:00 if you want to join the speed dating
LINK = Lecture LINK
Optional 11:00 CET
Meet with your team to review feedback
Team ready 13:30 CET
LINK = Lecture LINK
Look back at your Mapping
How user finds
out about
new thing
How user finds
out about
new thing
How user
confirms they
will use the
new thing
How user
confirms they
will use the
new thing
A	realistic	
entry	point
Ideal ending 
(to test if users would 
actually do this)
Failure
Rate
Failure
Rate
Failure
Rate
Failure
Rate
What	could	you	do	in	8	hours	
Failure
Rate
Failure
Rate
Failure
Rate
Failure
Rate
What	is	most	important	to	work	on	now	?
https://app.mural.co/template/e669b951-
002e-4c3d-aad3-e25e017884ad/bc76ddc4-
0d60-4614-a2a8-cd3c59821bb7
A	realistic	Assessment	
What evidence of value
What evidence value capture
Your pitch (max 5 minutes/ 8
slides)
Your
challenge
/ sprint
objectives
What you
learned
Your
solution
(4P)
Evidence of
innovation
(value * Value
capture)
Your reco
(shoot, continue
with change, go)
+ next step
Why – 3
reasons
Live grading + comments
Leader board
Break

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5 Cycles Remote Innovation - Systems