1. Dr Ridhwan Fontaine Week 8
Strategy
Dr Ridhwan Fontaine
Week 8

2. Good News Deadline for ALL assignments – 28 July
Final exam – 30 July (evening)

3. Today’s Agenda
Diary of unintended consequences
Systems Thinking

4. Conventional strategic model
External analysis (Porter 5 Forces)
Internal Analysis (policies and processes)
Generic strategy (cost or quality)
Strategic Decision Making

5. Islamic values leads to trust and cooperation People First
Operational Excellence based on Systems Thinking
Strategic Flexibility due to positive cash flow

6. Diary on Unintended Consequences
The best so far is that of Ma Huicheng Let me tell you why …..

7. He focused on decisions people can control

8. Trust Allah – even though you can’t predict any positive consequences from trusting Him

9. Funniest Story so far …..
Md. Siddique E. Azam => “Hanoi Rat Massacre“
The French wanted to get rid of their rat problem. They offered 1 cent per rat. People just had to bring a tail. They saw that a lot of rats without tails were still alive. People wanted rats to live and multiply so that they can have more tails to cut.

10. The Message of the Textbook
Muslim leaders need to
Develop a corporate culture in which employees internalise the values of the Qur’an => amanah
Develop a corporate culture in which employees practice systems thinking => competence
Amanah and competence is mentioned in the Quran as being the reasons for being employed

12. In “traditional thinking”, cause and effect are predictable and there would be no unintended consequences
In a “systems thinking world”, cause and effect are unpredictable and there would be lots of unintended consequences

15. In the textbook, chapters 12, 13 and 14 are relevant
Chapter 12 => consultants can help develop corporate culture where individuals know the Quran and know systems thinking
Chapter 13 => history of Systems Thinking
Chapter 14 => Shariah scholars need to know systems thinking to make better ijtihad

17. Toyota System
Develop great employees (i.e. train them in using systems thinking everyday)
They will design and build great cars

18. Difference in Performance +925% +551% +263% +832%
Table 1: The Results of Four Teams Compared
Team 1
Team 2
Team 3
Team 4
Week3
Total cost
17,410
8,354
9,703
36,280
Week 1
2,108
1,850
5,940
4,953
Difference in Performance
+925%
+551%
+263%
+832%

19. Improvement from Week 3 to Week 1
Week 3
Week 1
Improvement from Week 3 to Week 1
The level of stress *
100 20
+ 400%
The quality of decision making 35
+185%
The level of team work 25
+300%
The level of motivation 30
+230%
The level of conflict
The quality of leadership

20. The Iceberg Model

21. Practical Implications
You should realise that unintended consequences happens all the time when you develop a strategy. You need to ANTICIPATE THEM.
No significant change will happen unless your change the MENTAL MODEL (=> difference between planning and strategy)
Systems thinking requires coaching and training => role of leaders