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2017Bernhard Sterchi
Orientation and Alignment in a VUCA World
Part of the Complexity Navigator’s Compass
agile or Agile?
Bernhard Sterchi
Context: Cynefin Framework and Compass
Overview
The Cynefin Framework
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Dave Snowden/Cognitive Edge
The Complexity Navigator’s Compass
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FrameworkActivities Principles
Distributedintelligence
Resilience
Small objects
Alignedautonomy
Remove filters
Nudge foremergence
Explore complexity- exploit order
Make sense
Manageconstraints
Experiment
Manage by vectors
Facilitaterecovery
Principles Activities
2016Bernhard Sterchi
Strategic Storyline
How to systematically manage contextual behavior in an organization.
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coherentsignals frommanagement
STRONGBRAND
consistentcustomer
experience
consistentvalues
purpose-creatingstoryline
clearcorporate
self-image
consistentstaff
decisions
Typical Trade-offs
Strategic Storyline
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1. What is happening out there?‣ Customer need‣ Competition‣ Technology‣ Regulations
2. What are we doing about it? ‣Our role, strategy, principles, priorities
‣Step
‣by step
‣from general storyline
‣to the example at hand
3. How do we tick in order to achieve that?‣Soft factors: ‣Competence‣Mindset‣Ways of working
Examples
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Urs Berger as CEO Baloise:
High Touch – High Tech
Jürgen Dormannas CEO ABB:
Not a new strategy, but better implement the existing strategy
Carsten Schloteras CEO Swisscom:
Compensation of core business
Walter Kittlas COO Siegfried:
Production accross sites
Now it’s your turn!
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Strategic Storyline
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1. What is happening out there?‣ Customer need‣ Competition‣ Technology‣ Regulations
2. What are we doing about it? ‣Our role, strategy, principles, priorities
‣Step
‣by step
‣from general storyline
‣to the example at hand
3. How do we tick in order to achieve that?‣Soft factors: ‣Competence‣Mindset‣Ways of working
Management by Rules of Thumb
Heuristics for mastering complexity
Bernhard Sterchi
Dealing with Human Complexity
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Typical Trade-offs
Finding Rules of Thumb1. Define the System in Focus
What are we talking about? Usually a recurring situation that requires action. Collect some examples.
2. OptionsWhat could you do? What else could you do? Collect many examples of sensible action.
3. ChoiceWhat would you do? Choose one or a few preferred options.
4. Rule of ThumbWhat would make that the right thing to do? Find the underlying principle that guides people towards the preferred options.
Generic examples of situations for Time Out discussions
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• (Shop): A customer walks into the shop with a broken product. The guarantee has expired a month ago, but the customer was abroad. What do you do?
• (Teamleader): The existing CMS (reporting system) is tedious to fill in, and it does not match the actual processes and division of responsibility. But for the moment it’s what we have, and top management is using it. What do you do?
• (Expert): Something is wrong. If you fix it, it would be fast and you would be sure it’s right. But it’s another team’s responsibility, and they have made the mistake in the first place. What do you do?
• (Manager): One of your direct reports proposes a solution. You know it could be much better. You don’t know all the details. Time is an issue. What do you do?
Now it’s your turn!
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Finding Rules of Thumb1. Define the System in Focus
What are we talking about? Usually a recurring situation that requires action. Collect some examples.
2. OptionsWhat could you do? What else could you do? Collect many examples of sensible action.
3. ChoiceWhat would you do? Choose one or a few preferred options.
4. Rule of ThumbWhat would make that the right thing to do? Find the underlying principle that guides people towards the preferred options.
Want to learn more?
Navigating Complexity June 6.-8. 2017Saint-Paul de Vence, France
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Bernhard Sterchi, Palladio Trusted Advisers, Gerbergasse 30, Postfach, CH-4001 Basel, +41 78 783 72 44, [email protected], www.palladio.net