WHAT THINGS ARE CHANGING FASTEST, AND WHERE?
SENSE & RESPOND AS A MANAGERIAL INNOVATION
What differentiates a managerial innovation from a product, service or process innovation? A side-by-side comparison of S&R with the legacy management system (Make & Sell) reveals why it is so difficult to implement (much less sustain) adaptive operational innovations such as empowerment, teams, and customer-back behavior. Deeply engrained and typically unexamined legacy management practices that systematically defeat adaptability are identified in this session.
Few words in today’s business vocabulary are used more inappropriately than “transformation.” At least 99% of the time, the term is applied to describe a reformation, or simply to convey the idea of “difficult changes ahead.” Participants will learn the difference between using the S&R managerial innovation to effect a reformation, and using it to manage an authentic transformation. Guidance is provided on determining which type of change is more appropriate for a given organization.
HOW S&R ORGANIZATIONS CREATE VALUE
POST-INDUSTRIAL CORE COMPETENCES
Knowing Earlier. Rapidly Sensing and Interpreting the meaning of what is happening now is the sine qua non of “Anticipate and Preempt” S&R strategies. Separate modules conducted by experts in specific methods and technologies can be arranged (see “Subject Matter Expert Modules” below).
Managing by Wire is the managerial equivalent of the fly-by-wire capability that enables pilots to adapt rapidly while flying at several times the speed of sound. It incorporates and extends Knowing Earlier capabilities by using technology to translate managerial decisions into operational action. It requires role-specific information support of the adaptive loop: Sense>Interpret>Decide>Act.
Designing an Organization as an Adaptable System. Process optimization, and to a lesser extent “Systems Thinking,” have for decades been used to diagnose and improve operations. S&R introduces a new and fundamentally different managerial concept and competence : designing a social organization as a system of roles and accountabilities. The result is an adaptive Role and Accountability Design that specifies “who owes what to whom, and why.” This design becomes the central strategy document of a S&R organization. Examples and exercises are used to illustrate the design methodology.
Dispatching Capabilities From the Customer Back. This behavior is implicit in a system design to co-create value, and has significant implications for how risk is managed, how opportunities are identified and assessed, and where general management authority and accountability must reside. Examples of successful designs for achieving this are given.
Commitment Management. Rapid and dynamic linking of modular capabilities is accomplished through the negotiation and renegotiation of commitments between accountable roles. In larger organizations, a rigorous protocol and technology are required to track the status of these commitments, and ensure that they remain coherent and compliant. How this is accomplished is the focus of this topic. A separate module on the technology can be arranged, if desired.
Authentic and Rigorous Negotiation. Unlearning the defensive mechanisms that are a survival trait in traditional organizations, and learning how to negotiate authentically (not just sincerely) is a cultural adaptation that must occur for a S&R organization to sustain itself and thrive. A successful two-day training course on this topic conducted by experts is available as a companion workshop. Otherwise, this approach is summarized as part of an Adaptive Culture module (see below).
ACTION LEARNING MODULES
INTERACTION WITH AN EXPERIENCED IMPLEMENTER
ADAPTING THE CULTURE
SUBJECT MATTER EXPERT MODULES
- Authentic Communication Skills
- Knowing Earlier Methods and Tools: ZMET (Metaphor-based), SOCRATES-ARISTOTLE (linguistic-based); SENTINEL (Real-time sensor-based)
- Commitment Management Support Technology
- Role-specific Manage-by-Wire Support Technology
- Mapping Role and Accountability Designs into IT Enterprise Architectures
- Collaborative Decisionmaking in Highly Uncertain Environments
- Customer Experience Management (Making the Customer Experience the Organization’s Value Proposition and Reason for Being)
Please see the S&R Expertise page for profiles of some of the experts involved.
TRANSFORMING LARGE ACCOUNT PLANNING
This is an application of S&R that leverages its scalability. Instead of annual plans to extract as much value as possible from each customer, large account strategies are developed in the form of designs for collaborating with the customer to co-create the greatest amount of total value.
This is normally a stand-alone workshop whose focus is on the introduction and use of S&R tools and methods, with minimal time spent on the underlying managerial concepts. It is an early payoff approach that introduces S&R principles to large organizations in fairly surreptitious way. To the extent that it leads to greater bottom-line success, it should inexorably shift the focus of internal units to satisfying current, rather than forecasted customer needs.