“Don’t Waste a Good Crisis – How To Succeed in Today’s Resources Sector” · “Don’t...
Transcript of “Don’t Waste a Good Crisis – How To Succeed in Today’s Resources Sector” · “Don’t...
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“Don’t Waste a Good Crisis – How To Succeed in Today’s
Resources Sector”
Barry Bloch
Chief Operating Officer – Project Support Services
1
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We are in crisis!
Global turmoil
Increasing competitiveness
Increasing regulatory complexity
Technological innovation
Economic recession
Accelerated new entrants
Changing demands of society
New operating models
Industry consolidation
Political rollercoaster Significant
redundancies
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We face four fundamental challenges
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GROWTH AND SURVIVAL
COMPETITION BEYOND TRADITIONAL MARKETS
OPERATING MODELS BEYOND ORGANISATIONAL MODELS
DISRUPTION BEYOND CHANGE
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We are not changing fast enough!
Glo
bal
Co
mp
eti
tiven
ess
Low
High
Delivering tonnage and cost
Managing safety procedures +
Attracting, retaining, developing and managing people safely +
Building new stakeholder relationships +
Complying with increased governance requirements +
Driving core business innovation +
Delivering disruptive transformation +
Creating new ways of doing business +
Finding new streams of revenue +
~1980s ~1990s ~2000s ~ 2015
We wasted
the boom
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Firstly we need to stop believing our own
nonsense!
Common Sense
Common Nonsense
Uncommon Sense
Uncommon Sense
Uncommon Nonsense
Uncommon Nonsense
What W
e B
elie
ve T
o B
e T
rue
Actually ‘True’
Actually ‘False’
Competitive Advantage
Competitive Advantage
Competitive Disadvantage
Competitive Disadvantage
License To Play
Industry Destroyers
Source: Professor J Goddard; 2004
Your
Company
Your
Competitors
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Common nonsense – It is critical to make things
practical and simple
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Uncommon sense – We can thrive on the
edge of chaos
• Organisations which are most adaptable and
dynamic operate in a zone between order and
disorder
• They are teetering between tilting and falling:
a state of permanent “almost-fell”
• This state is the hallmark of a thriving economy
and healthy organisations…
• The most productive change always occur on the
edge of chaos
The most successful organisations remain
poised in the act of collapsing
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Common nonsense – All change needs to be
managed and controlled with CLOCKWARE
• Rational planning and decision-making
methods that are used along with
measures, controls and feedback
mechanisms only work where there is a
high degree of agreement and certainty
• Yet we try manage all change using
CLOCKWARE
Management processes that are rational, planned, standardized,
controlled, measured and efficient deliver change
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Leading on the Edge with SWARMWARE
• Used on the edge between complexity, ambiguity and disintegration
• Processes for meeting new challenges and exploring new possibilities
• Employ experimentation, intuition, risk-taking, incubation, exploration and the freeing up of individuals working at the edge of knowledge and experience
• Used where major growth and change are required in an environment of little or partial agreement and certainty
There is another way to make the most of a
good crisis
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Far from Agreement
Far from Certainty
Close to Agreement
Close to Certainty
THE RATIONAL ARENA - Clockware
THE WHAT ARENA –
Strategic focus & alignment
THE HOW ARENA –
process focus & control
CHAOS -anarchy & disintegration
4. Encourage Innovation, capture and reward it
2. Welcome unpredictability, paradox and learning on the run
3. Liberate information and relationship for independent decisions
THE EDGE – Swarmware
1. Focus on Good Enough Vision and Simple Rules (not solutions)
5. Relentlessly keep your organisation on the edge and constantly manage anxiety
Leading on the edge
Source: Professor R Anderson; 2008
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• Focus on Good Enough Vision and Simple Rules (not solutions)
• Welcome unpredictability, paradox and learning on the run
• Liberate information and relationship for independent decisions
• Encourage innovation, capture and reward it
• Relentlessly keep your organization on the edge and constantly manage anxiety
Swarmware Tools
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• Provide minimum specifications rather
than trying to plan every detail
• Model and teach skillful application of
80/20
• Clarify and get buy-in on non –
negotiable simple rules
Focus on Good Enough Vision and Simple Rules
(not solutions)
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• Say YES
• Avoid smoothing over contradictions
• Always ask - what did you learn, how
should we do it next time, what can
you tell others?
Welcome unpredictability, paradox and
learning on the run
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• Make all information available to everyone and ensure people know how to use it
• Remove hierarchical blocks and impregnable silos
• Encourage interaction, collaboration and communication
• Create a mistake tolerant culture that encourages independence
Liberating information and relationship for
independent decisions
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• Experiment at the fringes, not in
your core business. Incubate!
• Fail fast!
• Support and spread innovations
that deliver better, faster, smarter
• Create robust rewards and deliver
them consistently and generously
Encouraging innovation, capturing and
rewarding it
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• Remember that real growth occurs
on the edge - help people see this
and welcome it
• Create a culture of courage, a
willingness to be wrong and positive
thinking
• Compassionately manage reactions
to the inevitable pressure and
stress - first in yourself, second in
those you lead
Relentlessly keep your system on the edge and
constantly manage anxiety
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• Balance data, control and planning with spontaneous action,
intuition, exploration and freedom
• The tight/loose mix is the key
• Cohesive and disciplined teams for day to day issues
• Spontaneous networks with open conflict and
dialogue for generating growth
In practice we need to lead with both Clockware
and Swarmware together
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Objectively
Selecting Those
Projects That
Hold Promise
Generating
Value Adding
Ideas &
Opportunities
Effectively
Managing A
Portfolio Of
Projects
Enabling
Successful
Implementation
In Operations
Measuring The
Value Delivered
& Capturing
Learning's
A
B D C D C
E
Clock-ware
control, governance, delivery
Swarm-ware
ideas, innovation, new possibilities
Significant interface challenges
and the key to success
Innovation Organization
Two cultures must co-exist to succeed
Source: John McGagh; 2008
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• The role of the leader is increasingly complex and demanding
and traditional leadership is insufficient in the face of the current
economic crisis
• Our leaders need to be courageous so as not to waste a good
crisis
• Our culture need to move beyond managing the “Science of the
Known” to embracing the “Art of the Unknown”
• To achieve this we need to challenge our “Uncommon
Nonsenses” and move from leading change with “Clockware” to
driving transformation through “Swarmware”
Conclusion
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• The role of the leader is increasingly complex and demanding
and traditional leadership is insufficient in the face of the current
economic crisis
• Our leaders need to be courageous so as not to waste a good
crisis
• Our culture need to move beyond managing the “Science of the
Known” to embracing the “Art of the Unknown”
• To achieve this we need to challenge our “Uncommon
Nonsenses” and move from leading change with “Clockware” to
driving transformation through “Swarmware”
Conclusion
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