2017Bernhard Sterchi

Orientation and Alignment in a VUCA World

Part of the Complexity Navigator’s Compass

agile or Agile?

Bernhard Sterchi

Context: Cynefin Framework and Compass

Overview

The Cynefin Framework

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Dave Snowden/Cognitive Edge

The Complexity Navigator’s Compass

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FrameworkActivities Principles

Distributedintelligence

Resilience

Small objects

Alignedautonomy

Remove filters

Nudge foremergence

Explore complexity- exploit order

Make sense

Manageconstraints

Experiment

Manage by vectors

Facilitaterecovery

Principles Activities

2016Bernhard Sterchi

Strategic Storyline

How to systematically manage contextual behavior in an organization.

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coherentsignals frommanagement

STRONGBRAND

consistentcustomer

experience

consistentvalues

purpose-creatingstoryline

clearcorporate

self-image

consistentstaff

decisions

Typical Trade-offs

Strategic Storyline

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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

Examples

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Urs Berger as CEO Baloise:

High Touch – High Tech

Jürgen Dormannas CEO ABB:

Not a new strategy, but better implement the existing strategy

Carsten Schloteras CEO Swisscom:

Compensation of core business

Walter Kittlas COO Siegfried:

Production accross sites

Now it’s your turn!

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Strategic Storyline

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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

Management by Rules of Thumb

Heuristics for mastering complexity

Bernhard Sterchi

Dealing with Human Complexity

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Typical Trade-offs

Finding Rules of Thumb1. Define the System in Focus

What are we talking about? Usually a recurring situation that requires action. Collect some examples.

2. OptionsWhat could you do? What else could you do? Collect many examples of sensible action.

3. ChoiceWhat would you do? Choose one or a few preferred options.

4. Rule of ThumbWhat would make that the right thing to do? Find the underlying principle that guides people towards the preferred options.

Generic examples of situations for Time Out discussions

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• (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?

Now it’s your turn!

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Finding Rules of Thumb1. Define the System in Focus

What are we talking about? Usually a recurring situation that requires action. Collect some examples.

2. OptionsWhat could you do? What else could you do? Collect many examples of sensible action.

3. ChoiceWhat would you do? Choose one or a few preferred options.

4. Rule of ThumbWhat would make that the right thing to do? Find the underlying principle that guides people towards the preferred options.

Want to learn more?

Navigating Complexity June 6.-8. 2017Saint-Paul de Vence, France

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Bernhard Sterchi, Palladio Trusted Advisers, Gerbergasse 30, Postfach, CH-4001 Basel, +41 78 783 72 44, bernhard.sterchi@palladio.net, www.palladio.net