1. The document discusses systems thinking and applying it to business and innovation. 2. It emphasizes understanding how all parts of a system work together and influence each other, as well as identifying high-leverage opportunities to improve the system. 3. The key lessons are to take a holistic view of the system, understand how different elements impact each other through feedback loops, and use an active learning approach of testing ideas in small cycles to drive iterative improvement of the overall system.

1. Cycles
The simplest, proven way
to build your business.
Systems

2. You gotta put in the effort
to simplify !
Complexity
Time / Effort
Your message
Your Target

4. 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

5. Systems

6. 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

7. The Theory

8. 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

9. A bowl
of fruit
A football
team
A Toaster
A Kitchen
A Marriage
Tools in a
Toolbox
Collection vs Systems

10. System
A bowl
of fruit
A football
team
A Kitchen
A ToasterA Marriage
Tools in a
Toolbox
Collection

11. 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

12. 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!

13. Hacking the system
New Zealand

14. 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

15. The big value of systems
They keep you learning and they keep you
thinking

16. A systematic
approach to
making ideas
happen

17. Quality
Of Ideas
Time
Start
Learning
Cycles
No
Changes
Bad
Cycles
Smart
Winners
Lucky
Winners
Losers
Losers

18. 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

19. ‘Fire bullets, then cannonballs’
approach explains the success of
companies 10x better than big-leap
innovations and predictive genius
Jim Collins

20. Video: bullets then cannonballs

21. What an amazing idea !!

22. How to think in systems

23. 3 Guys and a Genie

24. Assembling the best car
ever

25. Best Parts don’t a system
make!

26. The world is often not
linear
Versus

27. The language of systems
Turn knob Measure Change
Causalities
Filling a glass of water

28. Reinforcing feedback
The engine of growth and decline.
Small changes amplify causing accelerated growth
or decline.

29. Balancing Feedback

30. Work alone

31. ?
Identify the missing link which connects all the cycles together

32. How to think in systems

33. We resist system thinking
Because it is harder and usually more
confrontational

35. 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

36. 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

37. 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

38. 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

39. Common cause
or
Special Cause ?

40.  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

41. 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.

42. How to think in systems

43. 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

44. Success is about getting
everything “good enough”
++ +++ - +++
+ + + +
Failure
Success

45. Option 1: You can fix a “death
threat”
++ +++ - +++ Failure
Succes
s
++ +++ + +++

46. Option 2:You can find a “one thing”,
that makes many things better
++ +++ - +++ Failure
Success+++ ++++ + +++

47. 2 ways to be really effective
parallel to sequentialmulti‐tasking to “unit asking”

48. Work alone

49. 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?

50. A simple answer! -
Work where most progress

51. The most powerful tool
ever invented for a start-up
Do Now Do Later Don't do

52. 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 !

53. How to think in systems

54. What does it mean to learn
as you go?
Quite Simply…
Test Learn Take
Action

55. Mini versus Maxi Learning
cycles
Mini
Low stakes
beta test
Bullet
Maxi
High stakes
investment
Cannonball

56. Your hypothesis
matters
 Hypothesis, Test, Learn
 Take Action

57. 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

58. 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

59. 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

60. Your Work
in Groups
Today

61. Work today
 What (review key risks) /
Who will do what
 Mentor talks
 2 groups
1. Risk Reduction
2. Pitch

62. Work tomorrow
Speed Dating
Integrate feedback
Presentations end of the day

63. 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

64. 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

65. What is most important to work on now ?
https://app.mural.co/template/e669b951-
002e-4c3d-aad3-e25e017884ad/bc76ddc4-
0d60-4614-a2a8-cd3c59821bb7

66. A realistic Assessment
What evidence of value
What evidence value capture

67. 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

68. Break