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systems_and_the_fifth_discipline1.pptx

Systems and the Fifth Discipline

Organizational Learning Disabilities

Most companies are poor learners.

Trouble is often very apparent, yet ignored.

Let’s identify the seven leaning disabilities.

Organizational Learning Disabilities

We are trained to be loyal to our jobs

We “become” the job

What do you do for a living?

Most describe their daily task.

Not the PURPOSE of the greater enterprise

NASA janitor

Most feel they have little or no influence in the system

Responsibilities are limited to the boundaries of their position.

Detroit vs. Japan

1. I Am My Position

Thou shalt always find an external agent to blame!

Think “Little League”

We often have a propensity to blame others

When we only focus on our position, we don’t see how our actions extend beyond the boundary of that position.

“Out There” and “In Here” are usually part of a single system.

US Postal Service

2. The Enemy Is Out There

Like to be “proactive”?

…as opposed to being “reactive”?

All too often proactiveness is reactiveness in disguise

If we’re simply becoming more aggressive fighting “the enemy out there”, we’re reacting

True proactiveness

Seeing how we contribute to our own problems

It’s a product of our way of thinking, not our emotional state

3. The Illusion Of Taking Charge

She took my… He broke my…! She won’t let me… Yeah but he started it!

We are conditioned to see life as a series of events, and for every event, we think there is one obvious cause.

Organizations are concerned with “events”

Last months sales, new budget, quarterly earnings, who was just promoted, fired…

4. The Fixation On Events

Focusing on events leads to “event explanations”.

We don’t see the big picture.

Design a caveman…

Right; immediate actions to stop immediate threats!

Today however, the greatest threats are from slow, gradual processes!

Create! Use generative learning.

Everything else is simply reactionary.

4. The Fixation On Events cont.

Put a frog in a pot of boiling water and…?

Put the frog in room temperature water, and?

Now, start to turn up the heat, and?

Right… zip. Why?

The frog’s internal apparatus for survival is geared to sudden environmental changes. Not slow gradual changes

American auto industry in the 60’s

You have to slow you pace to see the subtleties going on

5. The Parable Of The Boiled Frog

The most powerful learning comes from direct experience.

What happens if the primary consequences of our actions are beyond our vision?

The “Learning Horizon”

Impossible to learn from events beyond this point

We learn best from experience but never directly experience the consequences of many of our most important decisions.

6. The Delusion Of Learning From Experience

R&D vs. Marketing

Investing in capital improvements

Promoting people

Very little opportunity for trial and error

Cycles are very difficult to see if they last beyond a year.

How long are commercials on TV?

So companies develop into departments

They then “stovepipe”

The most important issues that are cross functional, are rarely addressed

6. The Delusion Of Learning From Experience cont.

Aren’t management teams and managers great?!

Do you really believe in management and their abilities?

Always fighting for turf? Arguing?

Trying to “look good”?

Pretending everyone is “on the same page”.

If here’s disagreement?;

Usually they’ll lay blame

Polarize opinion

Fail to reveal the underlying differences

7. The Myth Of The Management Team

Most managers find collective inquiry a threat

We’re trained to never admit “we don’t know”

And companies reward those who don’t really pry!

When was the last time someone was rewarded for asking tough questions about policies?

Skilled incompetence! (Chris Argyris)

We become incredibly proficient at not learning.

7. The Myth Of The Management Team

The “Beer Game”

Time for a beer…

Prisoners?

Of the System???

Or of our own thinking…..

The Beer Game

Thoughts?

Okay, what happened?

1. Structure influences behavior

Different people in the same structure tend to produce like results

Problems and poor performance are blamed on something or someone else

However, the SYSTEM generally causes the crises, not external forces or people mistakes

Lessons Of The Beer Game

2. Structure in Human Systems is subtle

We usually think structure = external constraints on people

BUT; structure in complex living systems means the basic interrelationships that control behavior.

How people make decisions is part of the structure

The “operating policies” that we use to translate perceptions, goals, rules and norms into actions.

Lessons Of The Beer Game

3. Leverage often comes from new ways of thinking.

When we focus on our own decisions we generally ignore how the decisions affect others.

When we look at just ourselves, we only need a short lever for change.

If you understand the “system”, and use a long enough lever, you can effect change

Lessons Of The Beer Game

We inherently love heroes.

If something goes wrong though, someone must have screwed up.

So who screwed up in the beer game?

What does the history of “The Beer Game” tell us?

If thousands of players, from around the world, have the same basic results, the causes of the behavior must be beyond the individual.

The cause of the behavior is in the system

Lessons Of The Beer Game

Beer game-like structures create similar crisis's in real life.

1985; PC memory chips: glut = low prices

1986; sudden shortage = 300% increase in prices

1973-1975; semiconductors

1989; US auto industry

Real estate

Lessons Of The Beer Game

When placed in the same system, people, however different, tend to produce similar results.

Psychologist Phil Zimbardo experiment

Mock prison

Prisoners/guards

Mild resistance

Increasing rebelliousness

Abusiveness

This is a controlling structure, and look at what happened…

Structure Influences Behavior

Do you feel yourself controlled by forces in the system from time to time? Or did you feel in control?

Do you find yourself "blaming" the groups next to you for your problems?

Do you feel desperation at any time?

Structure Influences Behavior

So what does it mean to say that structures generate particular patterns of behavior?

In the beer game each player makes one move per week. That’s all!

The focus though is on THAT move

The results are inevitable classic buildup and decline of orders at each position

…and the further away from the customer the worse the errors

…AND, all this occurs based on a stable consumer demand

Structure Influences Behavior

In order for you to succeed, in the beer game as well as just about any place else, others have to do well also.

So how do you “play the game”?

First, take two aspirin and, wait..

Understand the delays

Second, don’t panic

Be disciplined

Structure Influences Behavior

All of the learning disabilities operate in the beer game:

Because players “become their position” they don’t see how their actions affect others.

Consequently, when problems arise, they blame others; “the enemy”.

When they get “proactive” and place more orders they make matters worse.

The Learning Disabilities And Our Way Of Thinking

Because their over ordering builds up gradually they don’t realize he direness of their situation until it’s too late.

By and large they don’t learn from their experiences.

The consequences of their actions occur elsewhere

The people in the different positions become consumed with blaming the other players for their problems. Hence, no one is learning….

The Learning Disabilities And Our Way Of Thinking cont.

Events

(Reactive) (Who did what to whom)

Patterns of Behavior

(Responsive) (Long term trends and implications)

Systemic Structure (Generative)

(What causes the patterns of behavior)

This is the premise:

What the heck does this all mean?

And I’m not saying jack! You want to get out of here, show me you understand this.

So…