Make it real!

Dynamic-Robust Problem Solving -

Thinking Tools for Outperformance.
A guest contribution white paper for the BetaCodex Network
Courtesy of Dr. Gerhard Wohland

07
BetaCodex Network White Paper
Aug 2008
 The Author:
Dr. Gerhard Wohland,
gerhard.wohland@comperdi.de
•  PhD in physics
•  1946, Germany
•  Director of the Institute for
Dynamic-Robust Outperformance (IdH), Germany
Some clients: Deutsche Telekom AG,
DaimlerChrysler AG Stuttgart. VW AG Wolfsburg,
Schwan-STABILO Nürnberg, Gerling Köln,
debis Systemhaus Stuttgart, Bosch Stuttgart

Institut für dynamikrobuste

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Fundamental concepts for understanding of market dynamics
and how organizations can deal with them

1.  The “Taylor tub” - about the historic course of market dynamics

2.  Duality - the distinction between “red” and “blue”

3.  Centre and periphery under dynamic pressure

4.  Innovation and problem-solving in dynamic markets

Institut für dynamikrobuste

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The historical course of market dynamics

high dynamics sluggishness high dynamics

dynamic Crafts manufacturing Tayloristic industry Global markets

man
Outperformers

Market pressure

Conventional
companies
machine
formal

1900 1980 2008 t

The domination of high dynamic is neither good or bad. It‘s a historical fact.

Institut für dynamikrobuste

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How to distinguish between “red” and “blue”.

Institut für dynamikrobuste

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Duality – the distinction between “red“ and “blue“

The Integration
Blue behind Red
the Distinction
complicate complex
formal ”World“ dynamic
dead alive
Administration Management Leadership
Knowledge Competence Ability (skill)
to learn Qualification to practice
Behavior Culture Values
Data Communication Information
..... .... ....

Distinctions are needed, if you want to think and describe dynamic relations.

Institut für dynamikrobuste

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 Centre and periphery under dynamic pressure
Dull market Dynamic market

Peri- Peri-
phery phery
Peri- Peri-
phery phery

Centre Centre

Stimulus Peri- Stimulus Peri-

Peri- phery
phery phery
Response

Response
InInstitut
dynamicfür dynamikrobuste
markets, the centre loses its knowledge superiority, and steering collapses.
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Things to remember about innovation:

Innovation applies to:

•  “Products” (meaning: new value creation)
•  Organisation (we’ll see more about that)
•  Thinking (e.g.: “red” and “blue”)

Innovation is:
•  “The last link in a long chain of defeats.”
•  ”Red”. Therefore, the question isn’t How? to do it, but Who? can do it.
•  A task that can not be delegated by the centre.
•  Depending on having a “Resistant Nest” for talent.

Institut für dynamikrobuste

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Problem-solving in low and high-dynamic markets
Low dynamic (steering and control) High dynamic (leadership)

Peri- Peri-
Peri- phery Peri- phery
phery phery

Knowledge Competence
Competence
Problem Centre Centre Problem
Problem
Solution Divides problems
Finds solutions
Order to periphery Peri- Peri-
phery phery
Peri- Peri-
phery phery

The centre solves problems The centre divides the problems,

and gives für
Institut out dynamikrobuste
orders – passes them to the periphery and re-
the periphery executes upon them.
Höchstleistung combines their results into a solution Page 9
Some “Thinking tools” for outperformers
that we outline in this paper

1.  Symmetrization

2.  Dual Process Development

3.  Culture Observation

4.  Strategy versus Plan

5.  Economic Outsourcing

Institut für dynamikrobuste

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Symmetric coupling of centre and periphery

Asymmetrical Symmetrical

Central service Central service

Centre
Innovation Innovation
Leadership
Day-to-day business
service
Control service
service
“right to demand”
Day-to-day business
value creation
value creation Self-control

Periphery
customer customer

The reintegration of day-to-day business responsibilty into the periphery

Institut
turns thefür dynamikrobuste
interface symmetric, and innovation becomes possible.
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The duality of processes

Low dynamics High dynamics

Problem-solving technology:
People with ideas

1 2 3 4 5

Problem-solving technology:
”Process“-description

Low-dyamic High-dynamic
problem problem

Institut für dynamikrobuste

High-dynamic problems call for an increase in the red part of the solving process.
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The similarity in the complex portion of all problems

complicated
Project
Management Management

IT Qualifi-
Couple n owl edge cation
d/ /K
Neutra
l Mastery
complex Value
n creati
ptim izatio ng / Para
n / O sitic
Red uctio Sales
Costs

Knowledge
Organization Management

Institut für dynamikrobuste

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 The duality of culture

Behaviour-based culture Value-based culture

(tayloristic-dull/slow) (post-tayloristic/dynamic)

Behaviour (doing) Values (thinking)

Consisting
of: What you can see What‘s behind
and change by decision. and cannot be changed by decision.

Governed Control (trivial) Leadership (complex)

through:
Extrinsic motivation to behavior Intrinsic motivation to thinking

Institut
Only für dynamikrobuste
the blue part of culture can be changed. The red part of it can only be observed!
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“Strategy”, or “planning”?

Out of bounds!

Out of bounds! 5
Future
4 Status
2 (Target)

1
6

Current
Status “Strategic space“
3

If you know the way, then you can make a plan. In conformity with strategy
If you don‘t know the way, then you need strategy.

Institut für dynamikrobuste

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Outsourcing: Harmony and conflict between
“core“ competence and “shell“ competence

supplier market
(external reference)
existing missing

1 3 Buy core
Buy shell
(“Santa Clause“
Business we buy it! (outsourcing)
interface)
intention
(internal
reference) 4 2
we make it Make shell
ourselves! Make core
(waste/muda)

The outsourcing decision is determined exclusively by the supplier market,

not internally. Innovation is limited to core competence.

Institut für dynamikrobuste

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 Make it real!

www.betacodex.org

Gebhard Borck Niels Pflaeging Valérya Carvalho

gebhard@bbtn.org niels@bbtn.org valeria@bbtn.org
gberatung.de nielspflaeging.com Betaleadership.com
Pforzheim, Germany Sao Paulo, Brazil Sao Paulo, Brazil

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