Tutorial on how to use the Conflict Resolution Diagram. Presented by Portia Tung and Pascal Van Cauwenberghe at the Mini SPA conference, London, September 2010

1. Resolving Conflicts without Compromisealso known as“I want to have my cake and eat it!” Pascal Van Cauwenberghe & Portia Tung

2. About us Consultant. Storyteller. Games Maker. Consultant. Project Manager. Games Maker. His Blog: blog.nayima.be Her Blog: www.selfishprogramming.org NAYIMA We make play work

3. About this session What do we mean by “Conflict” ? Name a conflict you’d like to resolve A conflict we prepared earlier Patterns of Conflict Ideas for resolving your conflict Further reading Session feedback

4. 1/7What do we mean by conflict?

5. “I want to live in the city...” “... AND in the country”

6. “I want to eat what I want...” “... AND be fit and healthy”

7. Manager: “We need to go faster to deliver more features” Developers: “We need to go slower to increase quality.”

8. What do we need to resolve conflicts? Willingness to find a solution Refuse to compromise Common goal Articulate the conflict Explore solutions Surface assumptions Challenge assumptions A dash of creativity

9. The Shallow Thinking Process A problem Happy Days Root Cause Analysis THE Solution This is what we needed all along! Why don’t we have what we need? Magic Happens Here

10. The Logical Thinking Process

11. The Logical Thinking Process Intermediate Objectives Map Prerequisite/ Transition Tree How do we get there? In small steps. What is our goal? What are we missing? Future Reality Tree Current Reality Tree Would that work? What could possibly go wrong? Why don’t we have what we need? Magic Happens Here That’s what this session is about Conflict Resolution Diagram What could be done to resolve the underlying fundamental conflict?

12. The Conflict Resolution Diagram Prerequisite 1 Requirement 1 Objective Requirement 2 Prerequisite 2

13. 3 Types of Conflict

14. Type 1:“I want X and the opposite of X”That’s not possible, is it? “I want to live in the city...” “... AND I want to live in the country”

15. Type 2:“I want X and Y”But I have to choose, right? “I want to eat what I want...” “... AND be fit and healthy”

16. Type 3: “I want X. They want Y. We can’t both be right” Only one of us can win, at best. Developers: “We need to go slower to increase quality.” Manager: “We need to go faster to deliver more features”

17. 2/7 NAME a conflict you’d like to reSolve

18. Three types of Conflict I want X and the opposite of X That’s not possible, is it? I want X and Y but I can’t have both I have to choose, don’t I? I want X. They want Y. Only one of us can win, at best.

19. 3/7 Here’s one we prepared earlier

20. Story #1 Consultants audited business unit => FAIL We have to build a system to support the whole value stream Conflicts between sales and operations And between finance/audit and the rest More than a month of “shuttle diplomacy”

21. One of the conflicts is about product definition Lots of confusion about what products mean Ask 5 people, you get 6 different answers 2 previous attempts failed We have a hard deadline because of new EU regulations Story #1

22. Step 1: Articulate the conflict Prerequisite 1 Requirement 1 Objective Requirement 2 Prerequisite 2

23. Step 1: Articulate the conflict Sales: Customised Products Operations: Standardised Products

24. Step 2: Find the common objective Prerequisite 1 Requirement 1 Objective Requirement 2 Prerequisite 2

25. Tip: Don’t continue until you agree on a common, concrete and motivating goal If there’s no common goal, there’s no incentive to solve the conflict

26. Step 2: Find the common objective Customised Products Sell more Surviving Business Standardised Products Be more efficient

27. Tip: Strive for clarity first,then for correctness Precise and crisp definitions to ensure everyone has the same understanding

28. Step 2: Find the common objective Increase sales Increase margin Customised Products Profitability in a shrinking market Reduce costs Deliver on SLA Standardised Products

29. Step 3: Review clarity and logic Increase sales Increase margin Customised Products Profitability in a shrinking market Reduce costs Deliver on SLA Standardised Products

30. Step 3: Find the assumptions 2 4 Prerequisite 1 Requirement 1 Objective 1 5 Requirement 2 Prerequisite 2 3

31. Tip: Brainstorm assumptions Go for quantity Include “obvious” assumptions

32. Tip: Use “Extreme Assumptions”aka “Throw a tantrum” X is the ONLY way to have Y X is the BEST way to have Y X guarantees Y

33. Step 3a: Find the assumptions Increase sales Increase margin Customised Products 1 Profitability in a shrinking market Reduce costs Deliver on SLA Standardised Products

34. 3a. Our assumptions We can’t have both customised and standardised products because Product == Product Standardised != Customised As soon as sales starts to customise we end up with an infinite number of products (again) Sales doesn’t understand delivery Operations doesn’t understand business

35. Step 3: Find the assumptions 2 Increase sales Increase margin Customised Products Profitability in a shrinking market Reduce costs Deliver on SLA Standardised Products

36. 3b. Our assumptions To increase sales and margin we need to customise products because We can only compete by having an offer that’s different from our competitors Customers are becoming more demanding We must react quickly to customer demands We can never compete on price

37. Step 3: Find the assumptions Increase sales Increase margin Customised Products Profitability in a shrinking market Reduce costs Deliver on SLA Standardised Products 3

38. 3c. Our assumptions To reduce costs and deliver on SLA we need to standardise products because Having low variation is the only way to have predictable production schedules Standardised products are the only way to flexibly allocate people according to demand Product variation always costs more (changeover, setups, switches, training, bottlenecks) Lean only works with low variation production

39. Step 3: Find the assumptions 4 Increase sales Increase margin Customised Products Profitability in a shrinking market Reduce costs Deliver on SLA Standardised Products

40. 3d. Our assumptions To be profitable in a shrinking market we need to increase sales and margin because We can’t expand the market The only way to increase profitability is to sell more or increase the margin on each sale

41. Step 3: Find the assumptions Increase sales Increase margin Customised Products Profitability in a shrinking market 5 Reduce costs Deliver on SLA Standardised Products

42. 3e. Our assumptions To be profitable in a shrinking market we need to reduce costs and deliver on SLA because We are penalised for not hitting SLAs Our competitors have lower costs This is a price sensitive market, so the only way to increase profitability is to reduce costs This is a quality-sensitive market, so the only way to increase or keep market share is to increase quality Quality is hitting the SLA

43. Step 4: Challenge the assumptions 2 4 Prerequisite 1 Requirement 1 Objective 1 5 Requirement 2 Prerequisite 2 3

44. Step 4: Challenge the assumptions 2 4 Increase sales Increase margin Customised Products 1 Profitability in a shrinking market 5 Reduce costs Deliver on SLA Standardised Products 3

45. 4a. Challenge our assumptions We can’t have both customised and standardised products because Product == Product Standardised != customised As soon as sales starts to customise we end up with an infinite number of products (again) Sales doesn’t understand delivery Operations doesn’t understand business

46. 4b. Challenge our assumptions To increase sales and margin we need to customise products because We can only compete by having an offer that’s different from our competitors We must react quickly to market demands We can never compete on price

47. 4c. Challenge our assumptions To reduce costs and deliver on SLA we need to standardise products because Having low variation is the only way to have predictable production schedules Standardised products are the only way to flexibly allocate people according to demand Product variation always costs more (changeover, setups, switches, training, bottlenecks) Lean only works with low variation production

48. 4d. Challenge our assumptions To be profitable in a shrinking market we need to increase sales and margin because We can’t expand the market The only way to increase profitability is to sell more or increase the margin on each sale

49. 4e. Challenge our assumptions To be profitable in a shrinking market we need to reduce costs and deliver on SLA because We are penalised for not hitting SLAs Our competitors have lower costs This is a price sensitive market, so the only way to increase profitability is to reduce costs This is a quality-sensitive market, so the only way to increase or keep market share is to increase quality Quality is hitting the SLA

50. The assumption we challenged Increase sales Increase margin Customised Products Profitability in a shrinking market Product == Product Reduce costs Deliver on SLA Standardised Products

51. What if.... Sales and Operations were talking about different products? That would explain the confusion

52. The resolved conflict Customise Sales Product Increase sales Increase margin Profitability in a shrinking market Sales Product != Operational Product Standardise Operational Product Reduce costs Deliver on SLA

53. There was another conflict Operations: Coarse Products Low input and tracking overhead Lower costs Reduce cycle time How would you solve this conflict? Finance & audit: Detailed Products Detailed auditing Cost analysis

54. The Solution Finance & Audit “Products” Operations “Products” Sales & Marketing “Products”

55. The Result Built and deployed the system Took two years, including refactoring of product catalog Business unit has been profitable since Market share grows Among top 5 in the world meeting industry SLAs Continuously improving

56. 4/7 patterns of conflicT

57. Three types of Conflict I need X and the opposite of X That’s not possible, is it? I need X and Y but I can’t have both I have to choose, don’t I? I want X. They want Y. We can’t both be right Only one of us can win, at best.

58. Using the Conflict Resolution Diagram You can’t solve your own conflict Ask for help The biggest obstacle is willingness to find a solution without compromise Need to believe that a solution exists Use examples to show that solving the problem is possible First look for clarity, then for correctness A clear problem statement often leads to “evaporation” of the problem The CRD is a collaborative tool Don’t use it to “prove” the other party is wrong Sometimes you have to provide “shuttle diplomacy”

59. Typical conflict patterns The false conflict We’re talking about different things Assuming we have no options We always have options Today against tomorrow We can repay debt in small steps Not enough resources There are ways to do more with the same resources Conflating means and ends There’s another way to achieve the goal

60. 5/7 Did you get any ideas to look at your conflicts differently?

61. 6/7 further reading

62. Recommended Resources Summary from www.agilecoach.net “The Logical Thinking Process” – H.W. Dettmer “It’s not Luck” – E. Goldratt “Thinking in Systems” – D. Meadows

63. Summary

64. About this session What do we mean by “Conflict” ? Name a conflict you’d like to resolve A conflict we prepared earlier Patterns of Conflict Ideas for resolving your conflict Further reading Session feedback

65. Three types of Conflict I need X and the opposite of X That’s not possible, is it? I need X and Y but I can’t have both I have to choose, don’t I? I want X. They want Y. We can’t both be right Only one of us can win, at best.

66. What do we need to resolve conflicts? Willingness to find a solution Refuse to compromise Common goal Articulate the conflict Explore solutions Surface assumptions Challenge assumptions A dash of creativity

67. The Shallow Thinking Process A problem Happy Days Root Cause Analysis THE Solution This is what we needed all along! Why don’t we have what we need? Magic Happens Here

68. The Logical Thinking Process Intermediate Objectives Map Prerequisite/ Transition Tree How do we get there? In small steps. What is our goal? What are we missing? Future Reality Tree Current Reality Tree Would that work? What could possibly go wrong? Why don’t we have what we need? Magic Happens Here Conflict Resolution Diagram What could be done to resolve the underlying fundamental conflict?

69. The Conflict Resolution Diagram Articulate the conflict Find the common objective Review clarity and logic Find the assumptions Challenge the assumptions Explore potential solutions

70. We can have our cake AND eat it!

71. 7/7 Session feedback

72. Session Retro Thank You! for your Gift of Feedback

73. Thank you! Introductions Consultant. Storyteller. Games Maker. Consultant. Project Manager. Games Maker. His Blog: blog.nayima.be Her Blog: www.selfishprogramming.org NAYIMA We make play work