PART 2:THE STRATEGIC THINKING

ABCs TEMPLATEThe Most Universal Thinking Framework

on Earth

Founded in 1990 • Offices in over 20 Countries

BY STEVE HAINES AND JIM MCKINLAY

2

SYSTEMS THINKING

The Science of Living Systems

“The natural way the world works”

Backed by 50+ Years of Scientific Research

3

WHO IS JIM MCKINLAY?

Jim is the Co-Founder & Canadian Managing Partner

of the Haines Centre for Strategic Management®

Has provided consulting services to clients in government, business and the community sector since 1970

Has a masters in Human Resource Development

Co-authored Enterprise-Wide Change book with Stephen Haines & Gail Aller-Stead (2005)

Consulted in redesign of Health Care Systems in Canada using the Centre’s Systems Thinking Approach

International work in Australia, Europe & the Caribbean

He lives in White Rock, BC with his wife Colleen

4

WHO IS STEVE HAINES?

STEVE HAINESFounder & CEO:

Haines Centre for Strategic Management® Systems Thinking Press®

Founded in 1990—38 Offices—20 Countries

STEVE is a:

“CEO—Entrepreneur—Global Strategist”and

“A Facilitator—Systems Thinker—Prolific Author”

(of 14+ books) A graduate of the US NAVAL ACADEMY’s

Legendary Leadership Class of 1968

5

OUR COMPLEX WORLD TODAY!

6

AN OVERVIEW OF THE NATIONAL INTELLIGENCE

COMMUNITY

2007

USAF USA CIA USCG DIA Dept. of Energy

HomelandSecurity

State Dept.

Dept. Treasury

DEAUS Justice

FBI USMC GeoSpatialIntelligence

Agency

National Reconnaissance

Office

NSA USN(NCIS)

NATIONAL INTELLIGENCE

7

THINK—PLAN—ACT—RESULTS

How you think (Simplicity)

Is how you plan (Clarity)

Is how you act (Speed)

And that

Determines the results you get in work and life

8

GREAT LEADERS

Great leaders know how to keep it simple . . .

"Great leaders are almost always great simplifiers,who can cut through argument, debate, and doubtto offer a solution everybody can understand."                                              - General Colin Powell

 

Great leaders know how to keep it simple . . .

"Great leaders are almost always great simplifiers,who can cut through argument, debate, and doubtto offer a solution everybody can understand."                                              - General Colin Powell

 

9

WHAT DO THESE #S REPRESENT?

TABLE GROUP EXERCISE

EXERCISE AT YOUR TABLES:

They are the natural way the world works:

3

12

10

2

4

10

SIMPLICITY

EVERYTHING IS SIMPLE, YOU SEEBUT

YOU JUST HAVE TO SEE IT

KEYS:1. Ask the #1 Systems Question: Clarity of Purpose/Goal?2. One piece of paper documents3. Rule of 3—3 Minute Rule

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THREE MAIN PREMISES

MAIN PREMISE #1 “PLANNING AND CHANGE ARE THE PRIMARYJOB OF LEADERS”

MAIN PREMISE #2“PEOPLE SUPPORT WHAT THEY HELP CREATE ”

MAIN PREMISE #3 USE SYSTEMS THINKING—FOCUS ON OUTCOMES—SERVE THE CUSTOMER!

12

MAIN PREMISE #1

PLANNING AND CHANGE

ARE

THE PRIMARY JOB

OF LEADERSHIP

13

OUR LEVEL OF THINKING

Problems that are created by our current level of thinking

can’t be solved by that same level of thinking.

-Albert Einstein

So…. If we generally use analytical thinking,

we now need real ‘Systems Thinking” to resolve our issues.

-Stephen G. Haines

OUR LEVEL OF THINKING

Problems that are created by our current level of thinking

can’t be solved by that same level of thinking.

-Albert Einstein

So…. If we generally use analytical thinking,

we now need real ‘Systems Thinking” to resolve our issues.

-Stephen G. Haines

14

GET A HIGHER AND BROADER PERSPECTIVE

Take a Helicopter View of Life!

15

ANALYTIC VS. SYSTEMS THINKINGStrategic Consistency yet Operational

Flexibility

Using “Analytic Approaches to Systems Problems”

Systems vs. Analytic Thinking

In Systems Thinking —the whole is primary and the parts are

secondary.

vs.

In Analytic Thinking—the parts are primary and the whole is

secondary.

2 of 2

STOP

16

STRATEGIC-ORIENTED ORGANIZATION

ENTERPRISE-WIDE CHANGE: THE ORGANIZATION AS A SYSTEM

An organization is a system — a complex network of inputs,processes, outputs and feedback from suppliers, employees,

andcustomers.

Management therefore needs a set of concepts and tools for wiring

and aligning those components together, with the integrity needed

forimproving quality and service, reducing time and costs

ENTERPRISE-WIDE CHANGE: THE ORGANIZATION AS A SYSTEM

An organization is a system — a complex network of inputs,processes, outputs and feedback from suppliers, employees,

andcustomers.

Management therefore needs a set of concepts and tools for wiring

and aligning those components together, with the integrity needed

forimproving quality and service, reducing time and costs

17

DESCRIBE ANY SYSTEM

HOW WOULD YOU DRAW ANY SYSTEM—

IN

THE SIMPLEST WAY POSSIBLE??

18

SIMPLICITY OF SYSTEMS THINKING

ENVIR

ONMEN

T

A Holistic, Integrated, Organizing Framework

19

JIGSAW PUZZLESARE SYSTEMS

The Key is to Build the Framework First

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THE SYSTEMSTHINKING APPROACH

Five Strategic Thinking Questions – In Sequence: PHASE A: Where do we want to be?

PHASE B: How will we know when we get there?

PHASE C: Where are we now?

PHASE D: How do we get there?

PHASE E: Ongoing: What will/may change in your environment in the

future?

vs. Analytic Thinking Which:1. Starts with today and the current state, issues, and problems.

2. Breaks the issues and/or problems into their smallest components.

3. Solves each component separately (i.e., maximizes the solution).

4. Has no far-reaching vision or goal (just the absence of the

problem).

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STRATEGIC THINKING – ABCs TEMPLATE

“Clarify and Simplify Your Thinking” – About your Project___________________________________________________________________(Name of the Organization – Issue – Problem – Project – Change Effort,

etc Future Environmental Scan:What will be changing in your

future environment that will affect

us?

EE

CC DD

AASystem Throughput/Processes:How do we get there (close the gap from C A )?CC AA

___________Today’s Date

Feedback Loop/ Key Success Measurements: How will we know when we get there?

•

•

•

•

BB

Desired Outcomes- #1 System Question:Where do we want to be?

Strengths

•

•

•

•

• Threats

•

•

•

•

•

Weaknesses

•

•

•

•

• Opportunities1

• 2

•3

•4

•5

•4

•

•

•

•

•

___________Future Date•

•

•

•

•

Inputs (SWOT): CORE STRATEGIES: TOP PRIORITY ACTIONS: OUTPUTS/OUTCOMES:

Current State Assessment:Where are you now?

.

.

.

.

.

22

SKEPTIC

List the 5-10 environmental trends – projections – opportunities –

threats facing you over the life of your plan:

Scanning/Trends

SS Socio-Demographics (People/Society):Socio-Demographics (People/Society):

KK Competition/Substitutes:Competition/Substitutes:

EE Economics:Economics: E E Ecology:Ecology:

PP Political / Regulatory:Political / Regulatory:

TT Technical:Technical:

II Industry / Supplier:Industry / Supplier:

CC Customers/Citizens:Customers/Citizens:

Future Environmental

23

TAKE A TWO-MINUTE STRETCH BREAK

24

STRATEGIC PLANNING DEFINED:

Is it:

An event?

A process?

A change in our roles?

A change in the way we run the business day-to-day?

What's your belief? Why?

Insanity. . .Is doing the same things

In the same wayAnd expecting different

results

—Steve Haines

Insanity. . .Is doing the same things

In the same wayAnd expecting different

results

—Steve Haines

If you always doWhat you’ve always done

You WON’T always getWhat you’ve always gotten

Because the world has changed!

If you always doWhat you’ve always done

You WON’T always getWhat you’ve always gotten

Because the world has changed!

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REINVENTING STRATEGIC PLANNING TO DELIVER CUSTOMER VALUE

StrategicStrategic Planning:Planning:

ClarityClarity

StrategicStrategicChange:Change:SpeedSpeed

Strategic Strategic ThinkingThinking : Simplicity

26

THE ABCs OF STRATEGIC MANAGEMENTSM

STRATEGIC PLANNING HAS BEEN REINVENTED:

IT IS NOW STRATEGIC MANAGEMENT:

1. Planning

2. People

3. Leadership

4. Change

AND

Strategic Management is the new way—A yearly cycle on

How to run your business more strategically!

27

THREE GOALSIN

STRATEGIC MANAGEMENT

GOAL #1: DEVELOP STRATEGIC AND ANNUAL PLANS

(AND DOCUMENTS)

GOAL #2: ENSURE SUCCESSFUL IMPLEMENTATION

(AND ENTERPRISE-WIDE CHANGE)

GOAL #3:BUILDING & SUSTAINING HIGH PERFORMANCE

(YEAR AFTER YEAR)

THE RESULTS: BUSINESS EXCELLENCE & SUPERIOR RESULTS

(YEAR AFTER YEAR)

28

REINVENTING STRATEGIC MANAGEMENT

• Planning • People • Leadership • Change •

1.SM

ART

START

“BEGIN

HERE”

9. STRATEGY IMPLEMENTATION(AND ENTERPRISE-WIDE CHANGE)

CUSTOMERVALUE

10. ANNUAL STRATEGIC REVIEW(AND UPDATE)

SMART START8.

PLAN-TOIMPLEMENT

THE SYSTEMS THINKING APPROACHTM TO CREATING YOUR COMPETITIVE EDGE

C INPUTA OUTCOMES

FUTURE STATE“STRATEGIC CHANGE MANAGEMENT”

D PROCESSES

B. FEEDBACK

E

FUTURE

ENVIRONM

ENT

SCAN

2. IDEAL

FUTURE VISION

STATECURRENT

• ENV. SCAN

• VISION•MISSION•CORE VALUES•POSITIONING•RALLY CRY

• ALIGNMENT OF DELIVERY• ATTUNEMENT WITH PEOPLE

3. KEY SUCCESS

MEASURES/GOALS 4. CURRENT STATE

ASSESSMENT

5. STRATEGY

DEVELOPMENT

6. THREE-YEAR

BUSINESS PLANS

7. ANNUAL PLANS/

STRATEGIC BUDGETS

29

YEARLY STRATEGIC MANAGEMENT CYCLETHE SYSTEMS THINKING APPROACHTM

"Thinking Backwards to the Future"

B

C A

D

StrategicManagement

System

Your IdealFuture

Today

Vision, MissionAnd Values

FeedbackAnd

Measures

Strategies,Business Plansand Priorities

+++++++Actions, Change

And Follow-Up

EFUTURE

ENVIRO

NM

ENT

SCAN

30

Peter Drucker on Strategic Management

Goals

Appraisal

Mission

Objectives

ActionSteps

Budget

DRUCKER QUESTIONS:

SELF ASSESSMENT

31

Operating ManagersMeeting (Boca)600 LeadersINITIATIVE LAUNCHCase for New InitiativeOutside Company Initiative ExperienceOne Year Search TargetsRole Model PresentationsRe-Launch of Current Initiatives

GENERAL ELECTRIC’S STRATEGIC MANAGEMENT

SYSTEMFirst Quarter

Second Quarter

Third QuarterFourth Quarter

January March

SeptemberOctober

February

August

April

November

June

DecemberJuly

May

• Intense Energizingof Initiatives AcrossBusinesses

Corporate Executive council:CEC at Crotonville35 Business and SeniorCorporate Leaders•Early Learning?•Customer Reaction?•Initiative Resources Sufficient?•Business Management Course (BMC) Recommendations

Anonymous OnlineCEO Survey:11,000 Employees•Do you “Feel”Initiated Yet?•Do your customers feel it?•Sufficient ResourcesTo Execute?•Messages Clear And Credible?

Leadership PerformanceReviews at BusinessLocations:All Business StaffsInitiative Leadership ReviewLevel of Commitment/Quality of Talent on InitiativesDifferentiation(20% / 70% / 10%)Promote / Reward / Remove

Corporate Executive Council:(CEC at Crotonville Locations:35 Business and SeniorCorporate LeadersInitiative Best PracticesLevel of commitment/Rev. of Initiative Leadership Customer ImpactBusiness ManagementCourse (BMC)Recommendations

Corporate Executive Council:(CEC at Crotonville)35 business and SeniorCorporate LeadersAgenda for BocaIndividual BusinessInitiative HighlightsBusiness Management(BCM) CourseRecommendations

Operating PlansPresented:All Business LeadersInitiatives Stretch TargetsIndividual BusinessOperating PlansEconomic Outlook

Corporate OfficersMeeting: (Crotonville)150 OfficersNext-Year OperatingPlan FocusRole Models PresentInitiative SuccessesExecutive DevelopmentCourse (EDC)RecommendationsAll Business Dialogues:What Have weLearned?

Corporate ExecutiveCouncil: (CEC at Crotonville)35 business and SeniorCorporate LeadersBusiness ManagementCourse (BMC)RecommendationsClear Role Models Identified Outside Compnay BestPractices PresentedInitiative Best Practices(All Businesses)Customer Impact of Initiatives

Informal IdeaExchanges atCorporate andBusinesses

Session 1: 3-Year StrategyEconomic / CompetitiveEnvironmentGeneral Earnings OutlookInitiatives Update/StrategyCustomer ImpactInitiative ResourceRequirements

32

THE “SECRET” OF NUMMI

THE TOYOTA MANAGEMENT SYSTEM:

The “secret” is not in the individual pieces.

THE TOYOTA MANAGEMENT SYSTEM:

The “secret” is not in the individual pieces.

The “secret” is in the integration of practices into a management system.

Corporate GM Study; Detroit, Michigan; 0919X/4/7/86/page 6Shnummi2.dtp

060691

33

TOYOTA MANAGEMENT SYSTEM

Linking the Seven Key Functional Areas

InternationalProductionStrategy

Production Management(IS+CIM too)

New Product

Development

Financial/ProfitManagement

System

Cross-Functional

Management

Sales Management

System

Flat Organization

& HR

34

THE “SECRET” OF NUMMI

Technology?

KAIZEN?

MUDA?MURA?MURI?

Training?

Team Concept?

Just-In-Time?

Back-to-Basics?

JIDOKA?

Flexible Work?

Simple Product?

ConsensusDecisionMaking?

KANBAN?

Education? CULTURE

Quality Circles?

Corporate GM Study; Detroit, Michigan; 0919X4/7/86/page 4Shthesec.drw

060691

35

SAMSUNG’S NEW MANAGEMENT

REDISCOVERING HUMANISM, MORALITY

GOOD MANNERS AND ETIQUETTE

REDISCOVERING HUMANISM, MORALITY

GOOD MANNERS AND ETIQUETTE

GLOBALIZATIONGLOBALIZATION

QUALITY MANAGEMENTQUALITY MANAGEMENT

MULTIFACETEDINTEGRATION

MULTIFACETEDINTEGRATION

FIRST CLASS COMPANY IN THE 21ST CENTURY(Contributes to the Community and Mankind)FIRST CLASS COMPANY IN THE 21ST CENTURY(Contributes to the Community and Mankind)

COMPETITIVENESS(Extremely Effective)COMPETITIVENESS

(Extremely Effective)

ONE DIRECTION

2 OF 2

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DELIVERING CUSTOMER VALUE-YR-YR

START

Within a Strategic Management System and Yearly Cycle

The FlywheelAnd

The Rollercoaster

Strategic Management System

And Yearly Cycle

EE

DD

CC BB

AA

YEAR 1 YEAR 2 YEAR 3 YEAR 4

BU

SIN

ES

S E

XC

ELLEN

CE &

SU

PER

IOR

RES

ULTS

(Planning – People – Leadership – Change)

1

2

3

4

TIMELINE ANNUAL STRATEGIC REVIEWS

37

THE SINGAPORE CITY-STATESTRATEGIC MANAGEMENT

SYSTEMURBAN REDEVELOPMENT AUTHORITY (URA)

CONCEPTPLAN

-1971/2001

MASTER PLAN

-10 to 15 years

-

Supported by numerous Citizen involvement and Feedback

DD

DD

CCBB

AA

DEVELOPMENTIMPLEMENTATION

DEVELOPMENTCONTROL-Formal

Review 5 Years

LANDSTRATEGIC

MANAGEMENTSYSTEM

38

DUBAI CORE STRATEGIES

CORE STRATEGIES:7 Horizontal Enablers(Cross-Sector) 6 Sectors for Focus and Development

SEVEN CORE STRATEGIES & SIX DEVELOPMENT SECTORS

39

CHINESE MINISTRY OF SCIENCEAND TECHNOLOGY (MOST)

CHINESE MINISTRY OF SCIENCEAND TECHNOLOGY (MOST)

MISSION: Enhancing Technology Innovation and Industrialization

• Cultivating Technology-Based SMEs

• Developing Innovation Clusters

• Building an Innovative Environment

40

TORCH CENTER

I. Seedling

Cultivation

EngineeringCultivate

Technology-Based

SMEs

(TORCH High Technology Industry Development Center: October 1989 Solution)

II. Forestation

EngineeringDeveloping

Innovation

Clusters

III. Fertile

SoilBuilding an

Innovative

Environment

—TORCH Center

Responsibility

41

San Diego Police Dept’sSTRATEGIC MANAGEMENT ANNUAL

CYCLE

YEARLY STRATEGIC

MANAGEMENT CYCLE

Look back

at p

ast

year Cele

brate

Success

es

New F.Y. Priorities

Assess a

nd

A

dap

t as

Need

ed

Ensu

re F

.Y. P

riorit

ies

Guide/

Focu

s

Strat

egie

s

Environmental Scan

Update Discussion by

CO’s

Review Current Goals & Revise and/or Re-

Commit!

Fin

ish

S

tron

g T

o

Years

En

d

Preview of Planning Process

Continue

meetings, Stay

focused

Annual Strategic Planning Process

Annual Strategic Planning Process

Weekly CFC

Discussion

Weekly CFC

Discussion

Monthly Zoo

Mgmt Meeting

s

Monthly Zoo

Mgmt Meeting

sTri-Annual Report

Out (TARO)

Tri-Annual Report

Out (TARO)

Support Goals and Long Term

Projects

Support Goals and Long Term

Projects

Annual Strategic

Review

Annual Strategic

Review

2 of 2

42

GAO SHARED BUSINESS MODEL

State of the Association Address

Dr. R.L. “Bob” Hough

RAAA Executive Director

RAAA Convention2006

44

Membership Growth

45

Total Transfers

46

IN SUMMARY:KEEP IT SIMPLE

IN STRATEGIC MANAGEMENT

SIMPLICITY WINS THE GAME EVERY TIME:

ONE PIECE OF PAPER DOCUMENTS:

1. Strategic Plan Trifold

2. Annual Plan Priorities (Cheat-Sheet—To Do List)

3. Key Success Measures Matrix (Continuous Improvement—year/year)

4. Yearly Comprehensive Map of Implementation

47

SUMMARY: SIMPLICITY(OF THINKING & DESIGN)

SIMPLICITY WINS THE GAME

EVERY TIME

BANISH COMPLEXITY

48

THE BOTTOM LINE

Time Management, Team Work and

Organization Effectiveness:

A Systems Approach to Strategic Management(Planning, Leadership, and Change)

isthe ultimate time management tool

foran entire organization.

Time Management, Team Work and

Organization Effectiveness:

A Systems Approach to Strategic Management(Planning, Leadership, and Change)

isthe ultimate time management tool

foran entire organization.

2 of 2

THANK YOU

FOR YOUR PARTICIPATION

JimMcKinlay and Steve HainesHaines Centre for Strategic Management