The document discusses the evolution of strategy, decision-making, and leadership necessary for success in the 21st century, emphasizing the need for decentralization and collaboration in decision-making. It critiques traditional management models that no longer work in a rapidly changing environment and highlights the importance of fostering creativity and transparency among teams. The challenges of leadership are examined, particularly the detrimental impact of fear, hiding, and lack of accountability within organizations.

1. 1
@charlieykim
@meghanmess
STRATEGY, DECISION MAKING & LEADERSHIP
for the 21st Century (NOT the 20th)
June 7, 2017

2. SPORTS
BUSINESS
MILITARY
EDUCATION
MEDICINE
NxJ ADVANTAGE: learning from the best across industries

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
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
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. - David Rose

8. ALL THESE COMPANIES WENT BANKRUPT

9. 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.

10. 10
STRATEGIC CHALLENGES FACED BY ALL:
DISRUPTED OR DISRUPTOR

11. 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

12. 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

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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.”

14.  “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

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STRATEGY: OLD [20th Century]
~ WORKS OUT
CENTRALIZED:
STRATEGY, DECISION MAKING & LEADERSHIP
 GOALS
 KPIS/ METRICS
 REWARD SYSTEM/ COMP
 HIRING/ PROMOTIONS
TRADITIONAL MANAGEMENT LEVERS STOPPED WORKING

16. 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

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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

18. 18
STRATEGY: OLD vs NEW
STRATEGY CANNOT BE DIVORCED FROM EXECUTION

19. DECISION MAKING FACTORY
[CRAFT] x [DECISION MAKING] = [10X PERFORMANCE]

20. HOW to do
21st Century
DECISION MAKING

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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

+

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CHOICES require COURAGE
IS NOT
IS
C
A
NEXT VERSION
THIS VERSION
LAGGING METRICS
ADULT METRICS
LEADING METRICS
BABY METRICS

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STRATEGY requires RIGOR + CREATIVITY
RIGOR
BRILLIANT IN THE BASICS

CREATIVITY
MAKE SOMETHING THAT DID NOT EXIST
+

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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

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ROOT CAUSE

26. 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

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MONEYBALL of LEADERSHIP
5 Levels to Decision Making
OUTCOME:
Score/Results
ROOT
CAUSE 1
CREATIVITY
COLLABORATION
ROOT
CAUSE 2

28. LEVEL 1
GAS
ROOT
CAUSE 1

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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

30. LEVEL 2
NO LHF “LYING/ HIDING/ FAKING”
ROOT
CAUSE 2

31. 31
Another LHF definition..

32. 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

33. UNCLASSIFIED//FOUO
UNCLASSIFIED//FOUO
Greatest threat to objectivity

34. 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

35. Q&A BREAK
5 MIN

36. LEVEL 2
NO LHF “LYING/ HIDING/ FAKING”
 WHAT is No LHF
 WHY we LHF
 HOW to reduce LHF
ROOT
CAUSE 2

37. FEAR:
LHF
CREATIVITY &
COLLABORATION

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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

39. WHAT is No LHF
TRUTH, AUTHENTICITY, LEAVING NOTHING UNSAID
FACTS, MY THINKING, MY ASSUMPTIONS, GUT/INTUITION, WHAT YOU’RE FEELING
[HIGHEST FORM OF TRANSPARENCY]

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FEAR:
LHF RECKLESS:
INAPPROPRIATE
TRANSPARENCY
TRUTH:
NO LHF
Too little Too much
TRUTH

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Inappropriate Transparency
TRUTH WHEN DATING
TRUTH WHEN RENOVATING

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Inappropriate Transparency
FLOOD LIGHTING
DRAMA GRENADE

43. 43
No LHF

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LHF: Lying/ Hiding/ Faking

45. 45

46. Lying Truth

47. 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

48. WHY we LHF

49. 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

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1. We Feel Inferior – it’s contagious

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CULPRIT: we make others feel inferior
REALITY
LIES

52. 52
We cannot “stay in our own lane”, we feel inferior watching others succeed
VICTIM: can’t stay in our own lane

53. 53
DOWNWARD SPIRALS
2. We Make a Mistake – leads to downward spirals

54. 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

55. 3. Loyalty – how we justify it 55

56. WHERE IT GOES WRONG: LOYALTY
ENTERPRISE
TEAM/Dept
SELF
56

57. HOW to reduce LHF
YOU HAVE TO TACKLE YOUR FEARS

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2 KEY PROGRAMs to build a DECISION MAKING FACTORY
COACH
SAFE
PEER
FEEDBACK
UNSAFE
MAKE IT CULTURAL: EVERYONE MUST DO BOTH [LEARN + TEACH]

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GIVING FEEDBACK
RECEIVING FEEDBACK

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DISRUPTED DISRUPTOR
COMPANYINDIVIDUAL
A.I.
[YOUR JOB AUTOMATED]
CREATIVITY
[THE HUMAN ADVANTAGE]
+-
FEAR  LHF  NO CREATIVITY  NO COLLABORATION  BAD DECISION MAKING
In Summary

61. Thank You
meghan@nextjump.com
twitter: @meghanmess
charlie@nextjump.com
twitter: @charlieykim