Written Report and Development Plan
yugigogo09Align Systems
In your own words write down:
What does it mean to be Other Focused?
Externally Open?
What does this mindset have to do with leading (e.g. positive influence)?
How does one get into each of these states of mind?
How have you experimented with these states and what have you learned?
Gather in pair, take turns teaching each other. For example, one person could teach on one state of mind.
The Fundamental State of Leadership
Comfort Centered
Stick with what I know
Externally Directed
Comply with others
Self Focused
Place own interests above the group
Internally Closed
Block out external stimuli to avoid risk
Purpose Centered
Venture beyond familiar territory
Internally Directed
Behave according to my values
Other Focused
Put collective good first
Externally Open
Learn from and adapt to the environment
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Excercize moving….
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Examples of Complex Problems
Why are the Cleveland Browns perpetually awful?
Why is gun violence abnormally high in Chicago?
Why can’t Samsung beat Apple?
What drove Brexit in the UK?
How does Exxon turn around profits?
Why can’t I (or he or she) get a date?
Common Business School Trap
Finance
Finance
Avoiding the Trap: Systemic Thinking
Finance
MIS
Accounting
Mgmt
Strategy
Marketing
Individual
Level
What is Systemic Thinking?
“Studying the role and purpose of a system and its parts to understand why they behave as they do.”
“It is holistic vs. reductionistic thinking”
Atwater, Kannan, Stevens, 2003
Alignment Leaders
Understand the System: What is the role and purpose of each part of the organization and how to do they “fit” together?
Identify Levers for Change: What is the lever or levers that will initiate change?
Create Alignment: Organization performance increases when there is alignment across the system.
&
The Most Effective Place to Act in a System for Optimal Results Is Often Counterintuitive.
Within a year of O’Neill’s speech, Alcoa’s profits would hit a record high. By the time O’Neill retired in 2000, the company’s annual net income was five times larger than before he arrived, and its market capitalization had risen by $27 billion. Someone who invested a million dollars in Alcoa on the day O’Neill was hired would have earned another million dollars in dividends while he headed the company, and the value of their stock would be five times bigger when he left.
What’s more, all that growth occurred while Alcoa became one of the safest companies in the world. Before O’Neill’s arrival, almost every Alcoa plant had at least one accident per week. Once his safety plan was implemented, some facilities would go years without a single employee losing a workday due to an accident. The company’s worker injury rate fell to one-twentieth the U.S.”
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5 Whys
Fish Bone Diagram
?
Person
Process/Method
Rewards
Environment
Mgmt
Materials/Equipment
Culture
What is Strategy?
“Strategy is making broad directional and resource choices. It is creating a unique position in the marketplace through a mix of activities. It is creating fit and integration among these activities resulting in competitive sustainability.”
-Porter
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ONCE YOU UNDERSTAND A BUSINESS IS A SYSTEM, YOU ARE ABLE TO MAKE CHOICES THAT ALIGN WITH THAT SYSTEM.
"If a farsighted capitalist had been present at Kitty Hawk, he would have done his successors a huge favor by shooting Orville down." Air fare 80 dollars lower on average. All profits combined. 200k hired 4k (2011). 41 years of consecutive profitability.
9/21/17
© 2014 All Rights Reserved AlignOrg Solutions
15
Reed Deshler 502-241-0057 [email protected]
Kreig Smith 913-685-3506 [email protected]
Aligning Systems
?
Person
Process/Method
Rewards
Environment
Mgmt
Materials/Equipment
Culture
Avoiding the Trap: Systemic Thinking
Finance
MIS
Accounting
Mgmt
Strategy
Marketing
Individual
Level
Team Exercise #3: Plant Turnaround
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Your team has been asked to help turn around Westside Production Plant.
Gather in your team and come forward to collect your information.
Read the directions. You will first read the situation and make your initial rankings (15 minutes).
Once complete, your packet with the exception of your scoring sheet.
Then you will meet as a team to come up with a team ranking (20 minutes).
9/21/17
© 2014 All Rights Reserved AlignOrg Solutions
18
Reed Deshler 502-241-0057 [email protected]
Kreig Smith 913-685-3506 [email protected]
Team Exercise #4: Plant Turnaround
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1. | Several factory overhead costs are too high |
2. | Direct labor costs are too high |
3. | The level of quality is too low |
4. | Supervision of direct labor is excessive |
5. | Turnover and absenteeism are excessive |
6. | Direct material costs are excessive |
7. | Accident rates are excessive |
8. | Thomas Carlson was an inept, power-oriented manager |
9. | The sales effort is not effective |
10. | Direct labor productivity is too low |
9/21/17
© 2014 All Rights Reserved AlignOrg Solutions
19
Reed Deshler 502-241-0057 [email protected]
Kreig Smith 913-685-3506 [email protected]
Turnaround Simulation
Common Information Effect
Information held by more members before team discussion has more influence on team judgments than information held by fewer members, independent of the validity of the information.
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Common Information Effect
Groups tend to spend too little time discussing unshared (unique, uncommon) information.
A,C,B,D
A,C,B,E
A,C,D,F
A,C: Common to all three people
B,D: Shared by two people
E,F: Unique to one person
A,B,C,D,E,F
A,B,C,D,E,F
A,B,C,D,E,F
All information fully-shared
by all three people.
A,D
B,E
C,F
No overlap of information
between three people
Three Possible Initial-Distribution Conditions
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Why the Discussion Bias?
Probability
2. Mutual Enhancement
Discussing shared information feels good!
Members are judged as more task competent & credible after discussing shared instead of unshared information.
Shared information is judged as more important, accurate, and decision-relevant than unshared info.
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Why the Discussion Bias?
3. Bias for Preference-consistent Information:
Members prefer to discuss information that is consistent with their preferences (an example of the confirmation bias)
Some Groups Miss Optimal Solutions:
Use of only shared information supports a less optimal decision alternative whereas tapping into unshared information supports the best option.
Failure to discuss unshared info thus harms group decision quality
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Common Information Effect
What does not work:
More discussion
Separate review and decision
Bigger team
More information (but same distribution)
Accountability for decision
Pre-discussion polling
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Common Information Effect
What does work:
Team leader is information manager
Increase focus on unique information
Suspend initial judgment
Frame as an information-sharing problem, learning opportunity, rather than a judgment to be made
Minimize status differences
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Alignment Leaders
Understand the System: What is the role and purpose of each part of the organization and how to do they “fit” together?
Identify Levers for Change: What is the lever or levers that will initiate change?
Create Alignment: Organization performance increases when there is alignment across the system.
Simplicity on the Other Side of Complexity
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Connecting Strategy to Choices Passenger Boarding Proposal
Directions:
In groups of 5, you have 10 minutes to discuss and come up with a proposal for a new passenger boarding system (23 rows, 137 seats).
Identify your choices and the tradeoffs you are willing to make.
Discuss what is:
What is Southwest’s Strategy?
What is the current process?
What are the issues the prevent smooth and timely boarding?
Discuss what could be:
How can the process of boarding better align with the strategy?
What possibilities exist?
What tradeoff are you willing to make?
How does your proposal reinforce the strategy?
Be prepared to share your proposal with the class.