1. Prototypes Fall 2010

2. 2 Contents Recitation Chapter 13 –Openness Chapter 14 –Localness Chapter 15 –A Manager’s Time Chapter 16 –Ending the war between work and family Chapter 17 –Microworlds: Technology for the Learning Organization Chapter 18 –The Leader’s New Work

3. February 19, 2004 3 Recitation What is the role of the subconscious in personal mastery?

4. February 19, 2004 4 Recitation Mental Models are important because… Shared vision has the effect of….. Team learning is supported by what other disciplines? Inquiry and reflection are used by what discipline? What two conversational techniques does Team Learning use?

5. Part IV: Prototypes Senge, Chapter 13--OPENNESS THE FIFTH DISCIPLINE

6. 6 Prototypes Are essential to discovering and solving key problems We are in the prototyping stage Significant innovation requires prototyping

7. 7 Where are we (in the Rawls COBA)? Somewhere between invention and innovation To what extent are we open to innovation? To what extent are we willing to address new curricula new organizational structures Prepared by James R. Burns

8. February 19, 2004 8 What explicit innovations would we like to see prototyped? Many of these will fail Out of these failures workable structures will evolve Sometimes this is the only way to learn and advance the state of practice For some firms a culture that encourages trying new things even though they will fail fosters learning To what extent do we provide a “laboratory” for research in organizational learning? Prepared by James R. Burns

9. 9 Another Reality: Business Integration Integrating themes Information technology Quality Entrepreneurship Leadership Systems thinking/System dynamics Projects and processes

10. February 19, 2004 10 Business Integration ACC FIN IS MANMAR Information Technology Quality Leadership/Entrepreneurship Systems Thinking/System Dynamics Prepared by James R. Burns

11. 11 Back to prototyping How to encourage openness the elimination of politics and game playing How to discourage localness (Ch 14) the distribution of responsibility widely, while retaining coordination/control How do managers create the time for learning (Ch 15) How can the war between work and family be ended (Ch 16) How can we learn from Microworlds (Ch17) Prepared by James R. Burns

12. February 19, 2004 12 Openness--Chapter 13-- Outline How to eliminate politics and game playing Building an environment where self interest is not paramount Participative Openness and Reflective Openness Openness & Complexity The Spirit of Openness Freedom Prepared by James R. Burns

13. February 19, 2004 13 How to eliminate politics and game playing A political environment is one in which “WHO” is more important than “WHAT” Who proposes the idea is more important than the idea itself Some individuals lose political power at the expense of others The wielding of arbitrary power over others is the essence of authoritarianism Prepared by James R. Burns

14. February 19, 2004 14 Is there anything that can be done about org. politics?? In most orgs, no, Senge says, so don’t even dwell on it Yet very few people want to live in organizations corrupted by internal politics and game playing Challenging the grip of politics and game playing starts with building shared vision Prepared by James R. Burns

15. February 19, 2004 15 Shared vision Galvanizes people beyond their personal agendas and self interest We want an organizational climate dominated by merit rather than politics, where doing what is right predominates over who wants what done. Prepared by James R. Burns

16. February 19, 2004 16 Openness The norm of speaking openly -- participative openness The capacity to continually challenge one’s own thinking -- reflective openness Openness is needed to break down the game playing that is deeply embedded in most organizations Prepared by James R. Burns

17. February 19, 2004 17 Building an environment where self interest is not paramount Badaracco and Ellsworth in Leadership and the Quest for Integrity assume that practitioners believe that people are motivated by self-interest and by a search for power and wealth The assumption can be self-fulfilling; assume this and you will have a very political org. Really, people want to be part of something larger than themselves Personal Mastery encourages people to look beyond themselves for personal vision Prepared by James R. Burns

18. February 19, 2004 18 Shared Visions Draw forth this broader commitment and concern Begins to establish a sense of trust that comes naturally Start by getting people to talk about what is really important to them When people hear each other’s visions, the political environment begins to crumble Prepared by James R. Burns

19. February 19, 2004 19 Honesty begins to Prevail Honesty and forthrightness must pervade every relationship Cannot sanction lying to anyone, administrators, students Prepared by James R. Burns

20. February 19, 2004 20 Unlearning the habits of politics and game playing Shared vision, once it takes root, does not completely dissolve game playing Prepared by James R. Burns

21. February 19, 2004 21 Participative Openness and Reflective Openness Most Common, Part. Openness-the freedom to speak one’s mind Because participative management is widely espoused. But total honesty does not prevail There is little real learning Prepared by James R. Burns

22. February 19, 2004 22 Reflective Openness While Part. Openness gets people speaking out, reflective openness gets people looking inward Starts with the willingness to challenge our own thinking

23. February 19, 2004 23 Reflective Openness, Continued Requires that we test our views, assumptions against other peoples views, assumptions and revise them as necessary Requires inquiry and reflection discussed in the mental models chapter Prepared by James R. Burns

24. Localness Senge: Chapter 14 THE FIFTH DISCIPLINE

25. February 19, 2004 25 How to achieve control without controlling LOCALNESS--extending authority and power as far from the top or corporate center as possible More akin to the word EMPOWERMENT Learning organizations are ones in which thinking and acting are merged for every participant Localness is especially needed in times of rapid change

26. February 19, 2004 26 Two new challenges emerge How to get senior managers to give up control to local managers How to make local control work

27. February 19, 2004 27 Giving up control: Will this make senior managers dispensable? Senior managers must assume responsibility for continually enhancing the organization’s capacity for learning-- THEIR NEW ROLE

28. February 19, 2004 28 Other questions about localness: How can locally controlled organizations achieve coordination? Synergy between business units? Collaborative efforts toward common corporate-wide objectives? How can the local organization be something other than just a holding company

29. February 19, 2004 29 What experience has shown: Rigid authoritarian hierarchies thwart learning Hierarchies fail to harness the spirit, enthusiasm, and knowledge of people throughout the organization and to be responsible for shifting business conditions Failure has sprung up from not being able to relinquish control

30. February 19, 2004 30 Learning organizations: do less controlling of people’s behavior invest in improving the quality of people’s thinking invest in improving the capacity for reflection and learning develop shared visions develop shared understandings

31. February 19, 2004 31 The illusion of being in control Most senior managers would rather give up anything than control Senge illustrates the illusion of control from the top with roller skates connected by springs Even though senior managers think they are in control, they are not

32. February 19, 2004 32 Vacillation When business is going well, localness prevails When business is not going well, control gets returned to central management Such vacillation is a testament to a deep lack of confidence Is an example of a “shifting the burden” archetype

33. February 19, 2004 33 Beliefs Unless senior management believes: that the quality of learning the ability to adapt the excitement and enthusiasm the human growth ARE WORTH THE RISK, they will never choose to build a locally controlled organization

34. February 19, 2004 34 Today: Expediency Many organizations are cutting management levels Becoming more locally controlled, to cut costs But these arrangements do not last a business downturn, usually

35. February 19, 2004 35 Control without controlling Local decision making may not be wise Local decisions can be myopic, failing to appreciate the impacts of decisions Just because no one is in control does not mean that there is no control Central control is too slow and too unaware of what is happening locally

36. February 19, 2004 36 The Tragedy of the Commons Archetype What is right for each part is wrong for the whole This is also called “suboptimization” in the context of quality management Each individual focuses only on his own needs, not on the needs of the whole

37. February 19, 2004 37 Tragedy of the Commons Archetype, Continued Occur frequently in businesses where localness is valued When several divisions share a common support group Prepared by James R. Burns

38. February 19, 2004 38 Corporations’ Depletable Commons financial capital, productive capital, technology community reputation, good-will of customers and suppliers, morale of employees When a company decentralizes, local divisions compete with each other for those limited resources Andersen…

39. February 19, 2004 39 The experience Breaking business into smaller pieces is supposed to encourage local initiative and risk taking IN FACT, IT DOES JUST THE OPPOSITE

40. February 19, 2004 40 The experience, Continued Divisionalization and autonomy has created more short-term oriented managers, managers who are more driven by the bottom line These aggressive division managers are driven by short-term profits only Prepared by James R. Burns

41. February 19, 2004 41 Managing COMMONS structures Who will manage the commons? Depletion of the commons will work to everyone’s disadvantage Establish signals that will alert local actors that a commons is in danger Do not take “below the waterline risks” as was the case for the Titanic

42. February 19, 2004 42 The new role of central management Identifying and managing the COMMONS Become a researcher and designer Test new structures in a simulative environment, and recommend those that succeed Encourage organizational learning Encourage risk-taking

43. February 19, 2004 43 Forgiveness Localness must encourage risk taking To do so is to practice forgiveness “If you are making mistakes, that means you are making decisions and taking risks--and we won’t grow unless you take risks “Making the mistake is punishment enough”

44. A Manager’s Time Senge: Chapter 15 THE FIFTH DISCIPLINE

45. February 19, 2004 45 How do manager’s create the time for learning? How do we expect people to learn when they have little time to think and reflect, individually and collaboratively? Even when there is time to reflect,…... Most managers do not consider the impact their actions have had carefully Managers are too busy contemplating their next move to consider why their previous policy did not pan out

46. February 19, 2004 46 What do American Managers do? They adopt a strategy When it runs into problems, they switch to another strategy Then to another and another Possibly to 4 or 6 different strategies, without once examining why a strategy seems to be failing Senge calls this the READY, FIRE, AIM atmosphere of American Corporations

47. February 19, 2004 47 Learning takes time When managing mental models, it takes considerable time to surface assumptions, examine their consistency, their accuracy, and see how different models can be knit together into more systemic perspectives

48. February 19, 2004 48 The example of Hanover’s O’Brien Doesn’t schedule short meetings Only considers complex, dilemma-like “divergent” issues Only makes 12 decisions a year

49. February 19, 2004 49 Hanover’s O’Brien, Continued If a manager is making 20 decisions a day, the manager is looking at convergent issues that should be dealt with more locally or is giving insufficient time to complex problems Either way its a sign that management work is being handled poorly Prepared by James R. Burns

50. February 19, 2004 50 For top level managers Their job should be consumed with identifying important issues the organization must address and helping others sort through decisions they must make

51. February 19, 2004 51 In the future, Senge suggests High-level managers will spend more time reflecting, modeling and designing learner processes Because reflection and inquiry are integral to the development of valid mental models

52. February 19, 2004 52 Managers must set aside time for thinking The way each of us go about managing our time will say a good deal about our commitment to learning

53. Ending the War Between Work and Family Senge, Chapter 16 THE FIFTH DISCIPLINE

54. February 19, 2004 54 Introduction Finding a balance between work and family-- number one issue Learning organizations will, Senge believes, end the imbalance between work and family Personal visions are multifaceted--personal, professional and family lives The boundary between work and family is anathema to system thinkers Prepared by James R. Burns

55. February 19, 2004 55 The Structure of Work/Family Imbalance Success to the Successful Archetype, page 308 Prepared by James R. Burns

56. February 19, 2004 56 Success to the Successful Prepared by James R. Burns

57. February 19, 2004 57 This is very unstable Once it starts to drift one way or another, it will tend to continue to drift There are several reasons why it tends to drift toward more and more time at work Income pushing ahead at work becomes a convenient excuse for avoiding the anguish of going home to an unhappy spouse The imbalance is not self-correcting--it gets worse over time Prepared by James R. Burns

58. February 19, 2004 58 The Futility of Managing your Life Within this Structure One-time improvements in family tend to get overwhelmed by escalating pressures at work Eventually, people realize that the structure itself must get changed Prepared by James R. Burns

59. February 19, 2004 59 The Individual’s Role in changing the structure Is it really your vision to have a balance between work and family? Making a conscious choice will entail setting clear personal goals for time at home. being home for dinner, giving up weekends for family, reduce evening business meetings Be willing to pay a price for taking a stand for a vision of balance between work and family Prepared by James R. Burns

60. February 19, 2004 60 The Organization’s Role By fostering such conflict, orgs. distract and un-empower their members By fostering such conflict, orgs. fail to exploit a potential synergy that can exist between learning orgs, learning individuals, learning families Bill O’Brien says the skills of leadership in a learning organization are the skills of effective parenting. Prepared by James R. Burns

61. February 19, 2004 61 What does Leading involve in a Learning Organization? Supporting people in clarifying and pursuing their own visions Helping people discover underlying causes of problems, and empowering them to make choices Looking for synergy between productive family and productive work life Prepared by James R. Burns

62. February 19, 2004 62 Senge believes these changes will lead more organizations to undo divisive pressures and demands that create family/work imbalances orgs will acknowledge that strong companies cannot be built on a foundation of broken homes and strained personal relationships Prepared by James R. Burns

63. February 19, 2004 63 Steps Orgs. can Take Provide day care for single parents Support personal mastery as a part of the org’s philosophy and strategy Make it acceptable for people to acknowledge family issues Where needed, help people obtain counseling and guidance for how to make effective use of their family time Prepared by James R. Burns

64. February 19, 2004 64 The conflict of work and home is... a conflict of time a conflict of values but can be perceived as something else entirely Prepared by James R. Burns

65. February 19, 2004 65 What the parent learns at home…. can be used at work how to build self-esteem works in both contexts, for example Prepared by James R. Burns

66. February 19, 2004 66 Let’s take a break Stand up Walk around the room—in single file Bet its been a few years since you’ve been asked to do that Now return to your chair Now, touch the top of your head with your left hand Now sit down

67. Microworlds: The Technology of the Learning Organization Senge, Chapter 17 THE FIFTH DISCIPLINE

68. February 19, 2004 68 How can we rediscover the child learner within us? Human beings learn best through firsthand experience. Learning by doing only works so long as the feedback from our actions is rapid and unambiguous But learning from experience is neither rapid nor unambiguous because the consequences of our actions are separated from us in time and space

69. February 19, 2004 69 How then can we learn? Microworlds (MW) MWs enable managers and management teams to begin “learning by doing” MWs are nothing more or less than interactive simulations MWs compress time and space so that it becomes possible to experiment and to learn when the consequences are in the distant future and in distant parts of the organization

70. February 19, 2004 70 Transitional objects: the way children learn Children have a rate of learning that is truly astounding They rehearse with transitional objects: dolls, blocks, play-houses, etc.. Managers too have their transitional objects: MWs When teams go white-water rafting, participate in a role playing exercise, participate in a dialogue practice session, they are engaging in a microworld.

71. February 19, 2004 71 Transitional objects: Are they the best? A white-water rafting trip doesn’t produce powerful insights into strategic business issues Role-playing exercises do not show us whether our personnel policies are aligned with our manufacturing and marketing policies

72. February 19, 2004 72 What about computer simulations? PC is ubiquitous and getting more powerful every month These simulations will prove to be a critical technology for implementing the disciplines of the learning organization

73. February 19, 2004 73 How Does Organizational Learning Occur? According to Shell’s Arie de Geus, by Changing the rules of the game (through openness and localness) Through play Microworlds are places for relevant play

74. February 19, 2004 74 MWs allow for…. issues and dynamics of complex business situations to be explored through trying out new strategies and policies and seeing what might happen Costs of failed experiments disappear Organizational sanctions against experimentation are nonexistent

75. February 19, 2004 75 MWs are being used today by managers…. for managing growth for product development for improving quality in both service and manufacturing business and they build upon the system archetypes

76. February 19, 2004 76 MW1: Future Learning: Discovering Internal Contradictions in a Strategy Lying behind all strategies are assumptions, which remain implicit and untested These assumptions have internal contradictions Such internal contradictions cause the strategy to also have internal contradictions Such internal contradictions make the strategy difficult to implement

77. February 19, 2004 77 The Business Plan of Index Computer Company GOAL: reach 2 billion in sales in four years Reqd. James Sawyer, vice pres. of sales, to double his sales force Other top managers were unsympathetic saying “you will work it out” While uncomfortable, Mr. Sawyer did not want to become a “nay sayer.”

78. February 19, 2004 78 Executives split into 3-person microworld teams to play out the consequences of the sales plan They constructed an explicit model of the assumptions behind the plan 20% annual sales growth Hire 20% more salespeople and you make 20% more sales Sawyer says “wait a minute...not all salespeople are equal…there is much they have to learn…before they can sell a single system

79. February 19, 2004 79 Sawyer continues... we got most of our sales people originally by hiring away from competitors today 20% is so many people that we cannot possibly get experienced people from our competitors assumptions were changed to show inexperienced sales people to be only 1/3 to 1/4 as productive as experienced salespeople

80. February 19, 2004 80 Consequences could not reach goal of $2 billion in sales in four years could only get to $1.5 billion Attempts to get to $2 billion resulted in having to double the sales force in the fourth year alone This would wreak havoc on the sales organization and the personnel budget

81. February 19, 2004 81 Sawyer’s assessment There would be a lot of pressure on our veterans And, our veterans would have to train the new salespeople This wold result in more veterans leaving This would create a vicious cycle Many of our veterans came to us to escape this kind of situation somewhere else

82. February 19, 2004 82 Then Susan Willis, Director of Human Resources had her say sales people resist any call to invest their time in training and developing new salespeople

83. February 19, 2004 83 Further, Susan Willis said: Sawyer said this was because of hiring the most aggressive salespeople who get their kicks and their commissions from closing a sale in the field There are no incentives or commissions for helping newcomers The proposed strategic plan would simply reinforce this problem

84. February 19, 2004 84 Conclusions of the MW session at Index Train new sales people more quickly Establish new rewards for sales managers to develop their staffs Get more support to help senior sales people mentor and train new sales people Create a MW for training new sales people

85. February 19, 2004 85 MW2: Seeing Hidden Strategic Opportunities: How our Beliefs Influence our Customer’s Preferences Here again MWs are helpful in surfacing different assumptions and discovering how they can be related in a larger understanding Bill Seaver and John Henry are president and VP for Meadowlands Shelving Company They have reached an impasse in the way they saw their customers and their market

86. February 19, 2004 86 Seaver believes... That the key to success in the market place lays in having good products priced competitively

87. February 19, 2004 87 Henry agrees but... Also felt service quality could play a big part in whether or not customers chose Meadowlands Believed the company should invest in upgrading its service through training Meadowlands dealers in performing a wide range of services from better account management to office design and troubleshooting customers problems

88. February 19, 2004 88 Seaver’s response was... These are good ideas but he didn’t support spending significantly more on dealer support because he was convinced that it would not have significant impact on Meadowlands’ sales.

89. February 19, 2004 89 Sales people said... “Our competitors are discounting like mad and we can only hold our own if we match or better them” When Henry himself talked with customers, frequently they said they would rather have 5% off on their sales order than have better service after the sale Still he held onto his belief that there must be a way to gain competitive advantage through better service

90. February 19, 2004 90 What the MW showed... Continual discounts in the face of poor service quality became a vicious circle Efforts to maintain customers with better service quality lacked credibility because they had experienced poor service for so long

91. February 19, 2004 91 Further, the MW showed… Investing in service quality took a long time to exhibit its effects because customers have to experience improved service before they take it seriously the repurchasing delay in the shelving industry took two-to-four years

92. February 19, 2004 92 Both Seaver and Henry were right…. Seaver was right in the short run Henry, in the long Both learned a lot about the way the company interacted with its customers and within itself.MW3: Discovering Untapped Leverage: The Drift to Low Quality in Service Businesses

93. The Leader’s New Work Peter Senge, THE FIFTH DISCIPLINE, Chapter 18

94. February 19, 2004 94 Self-directed teams require a new leadership style The traditional style of clear directions and well-intentioned manipulation doesn’t work People with a sense of their own vision and commitment would naturally reject efforts of a leader to get them committed. One leader did not know what to do, now that he had a self-directed team

95. February 19, 2004 95 Our view of leaders…. Is wrong Especially in the West, leaders are heros--great men who rise to the occasion This view reinforces a focus on events and charismatic control of those events rather than on systemic forces and collective learning

96. February 19, 2004 96 Our view of leaders, continued At its heart, the traditional view of leadership is based on assumptions of people’s powerlessness, their lack of personal vision and inability to master the forces of change

97. February 19, 2004 97 The new view of leadership in learning organizations Leaders are designers, stewards, and teachers Leaders build organizations where people continually expand their capacity to understand complexity, clarify vision, and improve shared mental models That is, leaders are responsible for creating a culture where learning is rewarded

98. February 19, 2004 98 Leader as ….. Suppose your org is an ocean liner and you are the leader. What is your role? The commonest answer, not surprisingly, is “the captain.” Other less common answers include the helmsman, the navigator, the social director (making sure everybody is involved, and communicating)

99. February 19, 2004 99 The neglected leadership role is … the designer of the ship. No one has a more sweeping influence than the designer. It does no good for the captain of the ship to say turn starboard 30 deg. when the designer only allowed for 15 deg. Yet NO ONE thinks of the designer when they think of the leader’s new role!!

100. February 19, 2004 100 Why did no one think of the designer Lao-tzu: little credit goes to the designer The functions of design are rarely visible Consequences today are the result of work done long ago in the past Design work today will show its consequences long in the future

101. February 19, 2004 101 What must leaders design? Policies, strategies, “systems,” organizations, specifically Selection policies Vision strategies Value systems Culture systems Measurement systems Rewards systems Criteria by which excellence will be determined

102. February 19, 2004 102 And what of Design? It is an integrative initiative All of the parts must fit together and work well together as a whole under a variety of circumstances The leader must view the firm as a “system” -- Ray Strata Corporate executives must become organizational architects -- Ed Simon

103. February 19, 2004 103 Gives rise to a new discipline: Business Design Must loose focus on the P&L statement Look at the long term, instead Have to get away from piecemeal reactions to problems Have to integrate the five component technologies Must integrate vision, values, purpose, systems thinking, and mental models The synergy of the disciplines can propel an organization to major breakthroughs

104. February 19, 2004 104 First tasks of Business Design Design the governing ideas--purpose, vision, and core values Building shared vision is important because it fosters a longer-term orientation and an imperative for learning Get the systems thinking going early on Get the concept of mental models and surfacing underlying assumptions going early as well

105. February 19, 2004 105 Subsequent tasks of Business Design Design the learning processes Get personal mastery going

106. February 19, 2004 106 The Leader as Steward Leaders have a purpose story This is an overarching explanation of why they do what they do how their organizations need to evolve how that evolution is part of something larger Most gifted leaders have a “larger story”

107. February 19, 2004 107 The Leader as Teacher First job of leader is to define reality Leader must help people achieve more accurate, more insightful and more empowering views of reality Must view reality at four levels: events, patterns, structures and ultimately a “purpose story”

108. February 19, 2004 108 Creative Tension What role does it play in leadership?

109. February 19, 2004 109 How can such Leaders be Developed??

110. February 19, 2004 110 Time to Choose Learning or not Systems thinking or not PM or not MM or not SV or not TL or not

111. THE END That is all, Folks See you tomorrow

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