Orientation and alignment in a vuca world
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The document discusses managing complexity in organizations using the Cynefin framework and strategic storylines to address customer needs, competition, and technology. It highlights the importance of coherent management signals and strategic decisions, incorporating human factors such as mindset and competence. The document also presents a process for dealing with recurring situations, emphasizing the need for rules of thumb to guide decision-making.
Orientation and alignment in a vuca world
- 1. 2017 Bernhard Sterchi Orientation and Alignment in a VUCA World Part of the Complexity Navigator’s Compass
- 3. Bernhard Sterchi Context: Cynefin Framework and Compass Overview
- 4. The Cynefin Framework 4 Dave Snowden/ Cognitive Edge
- 5. The Complexity Navigator’s Compass 5 FrameworkActivities Principles Distributed intelligence Resilience Small objects Aligned autonomy Remove filters Nudge for emergence Explore complexity - exploit order Make sense Manage constraints Experiment Manage by vectors Facilitate recovery Principles Activities
- 6. 2016 Bernhard Sterchi Strategic Storyline How to systematically manage contextual behavior in an organization.
- 9. Strategic Storyline 9 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
- 10. Examples 10 Urs Berger as CEO Baloise: High Touch – High Tech Jürgen Dormann as CEO ABB: Not a new strategy, but better implement the existing strategy Carsten Schloter as CEO Swisscom: Compensation of core business Walter Kittl as COO Siegfried: Production accross sites
- 11. Now it’s your turn! 11
- 12. Strategic Storyline 12 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
- 13. Management by Rules of Thumb Heuristics for mastering complexity Bernhard Sterchi
- 14. Dealing with Human Complexity 14
- 16. Finding Rules of Thumb 1. Define the System in Focus What are we talking about? Usually a recurring situation that requires action. Collect some examples. 2. Options What could you do? What else could you do? Collect many examples of sensible action. 3. Choice What would you do? Choose one or a few preferred options. 4. Rule of Thumb What would make that the right thing to do? Find the underlying principle that guides people towards the preferred options.
- 17. Generic examples of situations for Time Out discussions 17 • (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?
- 18. Now it’s your turn! 18
- 19. Finding Rules of Thumb 1. Define the System in Focus What are we talking about? Usually a recurring situation that requires action. Collect some examples. 2. Options What could you do? What else could you do? Collect many examples of sensible action. 3. Choice What would you do? Choose one or a few preferred options. 4. Rule of Thumb What would make that the right thing to do? Find the underlying principle that guides people towards the preferred options.
- 20. Want to learn more? Navigating Complexity June 6.-8. 2017 Saint-Paul de Vence, France 20
- 21. Bernhard Sterchi, Palladio Trusted Advisers, Gerbergasse 30, Postfach, CH-4001 Basel, +41 78 783 72 44, bernhard.sterchi@palladio.net, www.palladio.net