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
Dr. Gerhard Wohland,
• 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
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
sluggishness high dynamicshigh dynamics
The historical course of market dynamics
The domination of high dynamic is neither good or bad. It‘s a historical fact.
t1900 1980 2008
Crafts manufacturing Tayloristic industry Global markets
How to distinguish between “red” and “blue”.
to practiceto learn
Duality – the distinction between “red“ and “blue“
Distinctions are needed, if you want to think and describe dynamic relations.
In dynamic markets, the centre loses its knowledge superiority, and steering collapses.
Centre and periphery under dynamic pressure
Things to remember about innovation:
• “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”)
High dynamic (leadership)Low dynamic (steering and control)
The centre solves problems
and gives out orders –
the periphery executes upon them.
Problem-solving in low and high-dynamic markets
The centre divides the problems,
passes them to the periphery and re-
combines their results into a solution
Order to periphery
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
Symmetric coupling of centre and periphery
“right to demand”
Central service Central service
The reintegration of day-to-day business responsibilty into the periphery
turns the interface symmetric, and innovation becomes possible.
Low dynamics High dynamics
The duality of processes
1 2 3 4 5
People with ideas
High-dynamic problems call for an increase in the red part of the solving process.
The similarity in the complex portion of all problems
Mastery / Knowledge
Value creating / Parasitic
Reduction / Optimization
Coupled / Neutral
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)
What you can see
and change by decision.
and cannot be changed by decision.
Extrinsic motivation to behavior
Intrinsic motivation to thinking
“Strategy”, or “planning”?
In conformity with strategy
Out of bounds!
Status “Strategic space“
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.
we make it
we buy it!
Outsourcing: Harmony and conflict between
“core“ competence and “shell“ competence
The outsourcing decision is determined exclusively by the supplier market,
not internally. Innovation is limited to core competence.
The “Organize for Complexity” book
Paperback edition Deluxe edition
(with bonus chapter)
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