Making Sense of Nonsense: What does it really take to make Halton an Enduring Community in the...

Centre forGlobal Innovationand Leadership

Making Sense of Nonsense: What does it really take to make Halton an Enduring Community in the

Global Village of the 21st Century

2006 FutureForce Halton Summit September 27th, 2006

Presented by: Eugene (Gene) Luczkiw Founding Director, The Institute for

Enterprise Education President & CEO, Centre for Global Innovation and Leadership

• 1994The Niagara Cottage Wine Industry Study

• 1995 Profit 100 Study

• 1999Jazzin’ in the Vineyard – Vintner’s Enterprise Study

• 1999Survey of the Automotive Parts Manufacturers’ Association’s (APMA) Small and Medium Enterprises

• 2002Finding Your Niche in Niagara – Bridging the Gap Between Youth and the Workplace Study

• 2002Instilling the Spirit – Strategies for the New Millennium: The Bachelor of Education in Enterprise Education

• 2002Autoshift 2002 – Action Strategies for the Automotive Components Industry in the 21st Century Study

• 2003Autoshift 2003 – Action Strategies for the Automotive Industry in the 21st Century Study

• 2003Team Ontario’s Report ‘Working Connections’ – A National Symposium on Career Development, Lifelong Learning and Workforce Development

• 2005Symbiosis 3 – Creating Global Opportunities for the City of St. Catharines – Finland

• 2005APMA’s Information Access Initiative for APMA’s Innovation Committee

The Institute for Enterprise Education’s Research

Since 1993, IEE has been involved in ongoing research of over 2700 small & medium-sized enterprises, and constant review of external research & literature.

The Institute for Enterprise Education

• Entrepreneurship

• Enterprise Education

• Leadership Development

• Organizations as Complex Adaptive Systems

A global centre for research and innovation in the fields of:

100knowledge growth

human evolutiongenes and culture

Agricultural Industrial Ecology of Networks

GROWTH

Knowledge Growth vs. Human Evolution

Diagnosis

Cultures of Innovation

Action Strategies Present

Reality

Future Vision & Purpose

COMMUNITY ENTERPRISE

MONITOR

Global

MentalModels

Stages ofDevelopment

CommunityContext

Social Innovation

Human Capital

COMMUNITY ENTERPRISE

MONITOR

We live in a Riverdance world governed by the rules of a jazz ensemble

Environmental

Social/ Cultural/ Demographics

Economic

What’s Happenin

gTechnology

Political

Global Paradox

Global Scan

MentalModels

Community Context

HumanCapital

Social Innovation

Community Enterprise Monitor …. cont’d

Disruptive technologies are constantly entering

the marketplace at ever increasing

numbers and rates of speed

Evolution of Globalization: The Four StagesStage One Stage Two Stage Three Stage Four

15th to 19th century

Conquest for resources

Europe centered

Colonization

19th to late 20th century

Globalization of markets

North American centered

Multi-nationalism branch plants

Late 20th to

early 21st century

Expansion of non-western capitalism

Eastern centered

Development and growth of new global economies and markets

Early 21st century

Globalization of talent

Global centered

Birth of global entrepreneur

The Seven Stages of Societal Development

Creativity / MultiplePossibilities

Printed Word 5000 BC – 1500 AD

Scientific Method1500 - 1850

PCs / Genetics1940 - 1975 2000 - ?

Hu nt er /G

a th e re rs

Ag ric u lt ur al

In d u st ria l

T ra n sp o rt at io n

pu t er /T ec h n ol og y

E co l og y o f N

e two rk s

Co ns c io u sn e ss /

Sel f- Aw

a r en e ssSTAGE 1 STAGE 2 STAGE 3 STAGE 4 STAGE 5 STAGE 6 STAGE 7

Communications/

1850 - 1940Engineering

Internet/

1975 - 2010Bio-technology Language

120,000 years

1. Technology Drivers

2. Factors of Success

3. Economic Drivers

4. Organizational Structure

5. Foundation

Stages of DevelopmentFive Critical Factors

Stage Six: Ecology of Networks(1975 – 2010)

Technology Drivers:

• New forms of technologies and telecommunications (internet, cell phones)

• Emergence of complexity sciences (connectivity)

• Birth of e-commerce and e-business• Breakthroughs in biological sciences• 100–fold increase in computing power• New waves of innovation in physical, natural

and social sciences

Factors of Success:• Learning the new rules of an ecological

network of collaborative alliances• Science, technology and enterprise integrate

knowledge to create new possibilities• A climate that engages the mind, heart and

spirit of each employee

Stage Six: Ecology of Networks(1975 – 2010) … cont’d

Economic Drivers:• Creativity and innovation• Vision and values• Collaborative networks connect with emerging

niches in the marketplace

• Organizations resemble ecologies• New organic structures and systems emerge• Incentive and power come from personal mastery

Foundation:

Organizational Structure:

• Leading organizations demonstrate the power of organic enterprises interacting with a chaotic, complex and highly disruptive global environment

Stage Six: Ecology of Networks(1975 – 2010) … cont’d

Deeply ingrained assumptions, generalizations or even images that influence how we understand the world and how we take action.

What are Mental Models?

The Rules Have Changed

Particles

The Atom

The Rules Have Changed

Physical

Values & Vision

Particles The Atom Waves

Energy

Divisible Indivisible

Structure (brain) Systems (mind)

Hardware Software

Business Strategy

Technology People

Analysis Synthesis

Brain Lock

• The hardening of neural pathways

• A terminal disease of certainty

Mental Models

Western Thinking

Eastern Thinking

Individualism

Differentiation

Relationships

Integration

Intelligence recognizes what has happened.

Genius recognizes what will happen.

John Ciardi

Global Scan

MentalModels

Community Context

HumanCapital

Social Innovation

The Scientific Method

(analysis)

versus

The Science of Complexity(synthesis)

The Innovator’s Dilemma

Why is it so difficult to change existing mental models that no

longer serve us well?

“… logical competent decisions of management

that are critical to the success of their companies are also reasons why they lose their position of

leadership.”

Professor Clayton ChristensenHarvard Business SchoolThe Innovator’s Dilemma

The Paradox of Success

Complexity Theory

Agents

Agent Interactio

networks

Emergent Behaviour

suncertainty

Higher Order

Entrepreneurship is the practice of innovation.

What is Entrepreneurship?

Peter Drucker

OPPORTUNITYISNOWHERE

action/interaction action/in

action/in

teractio

naction/interaction

person

opportunity

resources

TheEnterpris

eDiamond

Global Scan

MentalModels

Community Context

HumanCapital

Social Innovation

The community as an ecosystem where energy

flows.

(Jane Jacobs)

Global Scan

MentalModels

Community Context

HumanCapital

Social Innovation

The 8 Critical Patterns of Effective Communities

1. World Class leader in an emerging field

2. Partnership between equals - Business, Education and Government

3. Creating a new ecology outside traditional control

4. Graduates create enterprises with nurturing from the community

Global Scan

MentalModels

Community Context

HumanCapital

Social Innovation

The 8 Critical Patterns of Effective Communities …cont’d

5. Existing enterprises seek graduates

6. Early successes draw increased interest from professionals to assist start-up enterprises

7. Regions begin to import graduates from other jurisdictions

8. Most start-ups are globally focused and seek to become the best in the world

Global Scan

MentalModels

Community Context

HumanCapital

Social Innovation

‘No innovation of any consequence is possible

without a humane organization and

continued innovation in the practice of management.’

Collins (2001)

Global Scan

MentalModels

Community Context

HumanCapital

Social Innovation

Leaders need to create the right conditions that enable workers

to have more freedom and control over their work.

When these conditions are present, the creative process is engaged, leading to innovation at all levels of the organization.

Creating the Right Conditions for Innovation

Sustaining

Disruptive

There exists in life a consistency common to all

living species:

The structure (Form) of all living species is the

network.

Social Innovation

Anyone who is so closely and directly affected by my actions that I ought to consider them

before taking action.

Donahue vs. Stevenson

Who is my Network?

The network is the common pattern for all living organisms.

Organizations in society need to reflect a similar form in order to effectively deal with challenges, disruptions and opportunities.

Social Innovation

What is a Network?

The network is more than a partnership:

A network is a living organism consisting of many relationships involving learning, recognition of

patterns and responses.

(energy flow)

Entreplexity Living Organization Theory

Purposeful Agents

Agent Interactionsnetworks

Emergent Behaviour

suncertainty

Higher Order

Marketplace Acceptance

Enterprise

Diamond

People

Ideas Opportunity

Resources

Social Innovation

Human Capital

Success in the knowledge

economy comes to those who

know themselves – their

strengths, their values and how

they best perform...

Peter Drucker (1999)

In today’s fiercely competitive knowledge economy, no matter the industry or field, talent and the way

it behaves is becoming the only source of sustainable competitive

advantage.

Thomas Tierney & Jay Lorsch Creating Competitive Advantage in the Knowledge Economy

Leader to Leader, 2002

People

Rank Order of Importance of Developing Skills, Knowledge & Attitudes in Future

Hires1. Positive Work Ethic

2. Willingness to Learn

3. Openness to Change

4. Adaptability/ Flexibility

5. Self-Motivated/ Demonstrates Initiative

6. Team Player

7. Communication Skills

8. Technical Skills (job specific)

9. Project Management Skills

10.Computer Skills

11.Conflict Resolution

12.Knowledge of Industry

Autoshift 2002

People

It’s more important to know who you

are, than where you are going,

for where you are going will

change as the world around you

changes.

Collins & Porras

ValuesMotivation

Genius

Commitment

Getting to Commitment

Person

In short, people will need to be creative rather than passive, capable of self-initiated action, rather than dependent; they will need to know how to learn rather than expect to be taught; they will need to be enterprising in their outlook, and not think or act like an ‘employee’ or ‘client’.

The organizations in which they work, communities in which they live, and societies in which they belong will, in turn, also need to possess all these qualities.

Colin Ball, OECD, Paris 1989

E = MC2

Energy = Motivation x Contribution x Creativity

The Nature of the Interrelationships between Learned, Natural & Emergent

Behaviours

thoughts(mental)

feelings(emotions)

(DISC)

action(instincts)

(Kolbe)

achievements

relationships

safety/security

cognitive

affective

conative

needsnatural behaviours

Reptilian

Limbic

Cortex

learned behaviours

The worldThe worldour children are our children are

goinggoingto live into live in

is changingis changingfourfour times times

fasterfasterthan our than our schools.schools.

Dr. Willard Dagget, DirectorInternational Centre for Leadership and Education

What Should be the Nature of the Education Environment?

The role of education should be to create an environment of social innovation that nurtures each

learner’s distinct essence of being.

An essential goal in the transition from school to a productive adult life is to

develop curiosity and interest not only in learning, but in life as a whole.

To the extent that teenagers can develop intrinsic motivation (through

self-directed exploration of knowledge and through extra curricular activities) they will enjoy what they do for their

own sake.Mihaly Csikszentmihalyi & Barbara Schneider

Becoming Adult – How Teenagers Prepare for the World of Work 1991-1997

Bachelor of Education,Enterprise Education Program

Brock University’sFaculty of Education

The Institute for Enterprise Education

in partnership with

Engagement

Enablement

Empowerment

Execution

Creating Conditions

and Cultures

for Education

Classroom (reflection– finding

meaning in experience)

Environment

Experiences

Concepts/Ideas/Models (facilitator)

Emergence (ideas, insights,

knowledge)

Execution

Learning Effectiveness

Creating a Global Innovation Strategy:The Responsibility of Business, Education &

Government

Business

Education

Conditions &Cultures forInnovation

GLOBAL LEADERSHIP MONITOR

Global Leadership Monitor1. How effective is your business in dealing with

emerging global issues? (Global Scan)

2. What are the current industry practices in dealing with challenges and opportunities? (Industry Practice)

3. What is the basis of thinking with regard to these challenges and opportunities? (Mental Models)

4. What attitudes, attributes, complementary and technical skills does your organization require? (People)

5. What is the nature of your organization which seeks to deal with emerging trends? (People Infrastructure)

6. How capable is your organization in developing external and internal networks? (Connections)

• Out of clutter, find simplicity

• From discord, find harmony

• In the middle of difficulty, lies opportunity

Einstein’s Three Rules of Work

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