1. 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
BetaCodex Network White Paper
Aug 2008

2. 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
Höchstleistung Page 2

3. 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
Höchstleistung Page 3

4. 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
Höchstleistung Page 4

5. How to distinguish between “red” and “blue”.
Institut für dynamikrobuste
Höchstleistung Page 5

6. 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
Höchstleistung Page 6

7. 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 für dynamikrobusteloses its knowledge superiority, and steering collapses.
dynamic markets, the centre
Höchstleistung Page 7

8. 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
Höchstleistung Page 8

9. 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 dynamikrobuste
Institut out orders – passes them to the periphery and re-
the periphery executes upon them.
Höchstleistung combines their results into a solution Page 9

10. 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
Höchstleistung Page 10

11. 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
turns thefür dynamikrobuste
Institut interface symmetric, and innovation becomes possible.
Höchstleistung Page 11

12. 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.
Höchstleistung Page 12

13. The similarity in the complex portion of all problems
complicated
Project
Management Management
IT Qualifi-
dge cation
Couple
d/ / Knowle
Neutra
l Mastery
complex Value
n creati
ptim izatio ng / Para
n/O sitic
Red uctio Sales
Costs
Knowledge
Organization Management
Institut für dynamikrobuste
Höchstleistung Page 13

14. 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
Only the bluedynamikrobuste be changed. The red part of it can only be observed!
Institut für part of culture can
Höchstleistung Page 14

15. “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
Höchstleistung Page 15

16. 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
Höchstleistung Page 16

17. 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
Get in touch with us for
more information about
leading transformation with
the BetaCodex and the
Double Helix Framework, or
Andreas Zeuch Silke Hermann Markus Schellhammer
ask us for a workshop az@a-zeuch.de silke.hermann@ markus.schellhammer@
proposal. a-zeuch.de insights-group.de my-online.de
Winden, Germany Wiesbaden, Germany Zurich, Switzerland