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TOCICO 2016 © 2016 Goldratt Research Labs. All Rights Reserved. My journey of discovery to explore … Why GOOD People make and often repeat BAD decisions … …and developing a way to reduce such decision mistakes …or at least learn from the experienceJ Facilitated by Dr. Alan Barnard CEO, Goldratt Research Labs

Why GOOD People make and often repeat BAD decisions · ANALYZING THE BAD DECISIONS THAT WASTES OUR SCARCEST RESOURCE – OUR LIMITED ATTENTION THIS BOX REPRESENTS THE DECISIONS WE

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TOCICO 2016

©2016GoldrattResearchLabs.AllRightsReserved.

My journey of discovery to explore …

Why GOOD People make and often repeat BAD decisions …

…and developing a way to reduce such decision mistakes…or at least learn from the experienceJ

FacilitatedbyDr.AlanBarnard

CEO,GoldrattResearchLabs

2016 TOCICO International Conference

©2016GoldrattResearchLabs.AllRightsReserved.

“Finally, and most importantly, I wanted to show that we can all beoutstanding scientists. The secret of being a good scientist, I believe, lies notin our brain power. We have enough. We simply need to look at reality andthink logically and precisely about what we see.”

Dr.Eliyahu M.Goldratt,ForewordofTHEGOAL,1983

1. DECIDE onafieldorproblemyouarepassionateabout….andturnitintoavision…

2. Thecourage toFACEINCONSISTENCIES betweenwhatwe(expectto)seeandthewaythingsare….

3. The(courageand)wisdom toCHALLENGEBASICASSUMPTIONS relatedtotheseinconsistencies.

STANDING ON THE SHOULDERS OF A GIANT…Dr. Eli Goldratt’s advice on how to be “Outstanding Scientists”…

Dr.EliGoldrattsaidthekeyingredientstomakeabreakthrough inanyfieldorproblemyouarepassionateaboutare:

Thesethreesimplestepsisthebasisofthe“ScientificMethod”whichDr.Goldrattencouragedustouseasthefoundationforcontinuously improvinganythingwearepassionateabout- anorganizations,anindustry,ourrelationships,ourlives…

Expectation

Gap

Type1AssumptionsAssumptionson

whichwebaseour

expectations…

Type2AssumptionsAssumptionson

whichwebaseour

actionstorealize

theseexpectations…

2016 TOCICO International Conference

©2016GoldrattResearchLabs.AllRightsReserved.

STANDING ON THE SHOULDERS OF A GIANT…Dr. Eli Goldratt’s advice on how to be “Outstanding Scientists”…

Vision...toinspireyourselfandothers.

Courage…toact…andnottogiveup.

Wisdom..toknowwhattochange&whatnot.

Q1:Whichofthesearethemostchallengingtoachieve?…simple butnoteasy… vs.notsimpleandnoteasy…

Q2:Weneedallthreetosucceedinlife……butwhichofthesedon’twehaveenoughof…

whichoneisOURbottlenecknow?

ImportantNote:Weoftenconfuse“LackofCourage”with“NotknowinghowtoresolveAmbivalence”*Ambivalenceissimplythestateofhavingmixedfeelingsorcontradictoryideasaboutsomethingorsomeone

2016 TOCICO International Conference

©2016GoldrattResearchLabs.AllRightsReserved.

1. DECIDE onafieldorproblemyouarepassionateabout….andturnitintoavision

2. Havethecourage toFACEINCONSISTENCIES betweenwhatwe(expectto)seeandthewaythingsare….

3. Havetodevelop(courageand)wisdom toCHALLENGEBASICASSUMPTIONS relatedtotheseinconsistencies.

MY STORY….AND PASSION …

IfIwanttomakeameaningfulbreakthrough…I willhaveto…

2016 TOCICO International Conference

©2016GoldrattResearchLabs.AllRightsReserved.

MY STORY….AND PASSION …Facing an important Inconsistency (Expectation Gap)

ANALYZING THEBADDECISIONSTHAT WASTESOURSCARCESTRESOURCE– OURLIMITEDATTENTION

THIS BOX REPRESENTS

THE DECISIONSWE MAKE EACH DAYGOOD

DECISIONS

BAD DECISIONSAvoidable

Unavoidable

Ignorance

Inertia

IneptitudeI/Wewillneverknow….

I/Wedidn'tknow….

I/Weknewbutdidnotact….

I/Weknew,actedbutcompromised….

Q1:WHEREdomostpeoplegetSTUCK?

Q2:WhereamIstuck?

Q3:WhatdoweneedtogetUNSTUCK?

2016 TOCICO International Conference

©2016GoldrattResearchLabs.AllRightsReserved.

ACKNOWLEDGEMENTSStanding on the shoulder’s of GIANTS – wisdom to challenge assumptions…

BenjaminFranklin1706- 1790

Dr.HerbertSimon1916- 2001

Dr.DanielKahnemanBorn:1934

Dr.WilliamMillerBorn:1947

Dr.RobertKeganBorn:1946

Dr.NassimTalebBorn:1960

Dr.BarryJohnsonBorn:1947

Dr.EliGoldratt1947- 2011

EachoftheseGiantscontributeduseful

Classifications(what),Correlations(how),Causalitytheories(why)and/orpracticalproblem

solvinganddecisionmakingmethods…

2016 TOCICO International Conference

©2016GoldrattResearchLabs.AllRightsReserved.

STANDING ON THE SHOULDERS OF GIANTSThe Benefits and limitations of other Decision Support Tools…

https://youtu.be/SQg5lZAmuT8

2016 TOCICO International Conference

©2016GoldrattResearchLabs.AllRightsReserved.

+

Manybenefits,butsomelimitations

=

Change Matrix CloudHypothesis:Thisnew

ChangeMatrixCloud can

Provideasimpleandpracticalsolution

tohelpusidentifyandchallenge

LIMITING/HARMFULassumptions

Conflict Cloud

Manybenefits,butsomelimitations

(C)SystemNeed

STABILITYSECURITY

(B)SystemNeed

GROWTH(A)SystemObjectiveGOAL

(NotD)ActionNOT

CHANGE

(D)Action

CHANGE

Change Matrix

STANDING ON THE SHOULDERS OF GIANTSThe Benefits and limitations of other Decision Support Tools…

Assumptions

Pro/Con List

Positives1.2.3.

Negatives1.2.3

CHANGE

à

Manybenefits,butsomelimitations

Nega%ves( ((

(Ac%ons( ((

Posi%ves( ((

CHANGE NOT

CHANGE

2016 TOCICO International Conference

©2016GoldrattResearchLabs.AllRightsReserved.

XXXXXX

The 5-Step Change Matrix Cloud Process (CMCP)5 Steps to prevent the 5 most common mistakes in decision making

Step 1MY Problem

and why its important

GAP

PROBLEMYouarefacing

SYSTEM IMPACT

LLL$$$

LOCAL IMPACT

L

MY GOAL

+ OF CHANGE + OF NOT CHANGE

4 ALTERNATIVE WIN:WINS

- OF CHANGE - OF NOT CHANGE

MY THREAT

Step 3MY Conflict Resolution

By challenging assumptions preventing win:win

X XX

J

NewSolution(bestoutof4 – more+/Less-)

TODAY

GreatIdeabut stillhalf-baked..manyYes,buts…orExcuses

Step 4My Plan

To overcome hurdles

NEW CHANGE

yes, BUT # 3OBSTACLES

yes, BUT # 2POSSIBLE NEGATIVES

yes, BUT # 1INSUFFICENCIES

MY GOAL

J+ OF CHANGE + OF NOT CHANGE

+ +

- OF CHANGE - OF NOT CHANGE- -

Step 2MY Conflict

in dealing with my problem

MY THREAT

L

CHANGE

SOLUTIONChangeneededtodeal

withmyproblem+“YESAND”Plan

toovercomeall“Yes,buts”

EXPERIMENT OUTCOME

ProblemSolved?MonitorGreen vs.RedFlags

Step 5My Experiment

To really test new Solution

WHEN?WHAT?WHY?HOW?

Problem/GAP?Objective&Metrics?Assumptions?BestTotalSolution?

EXPERIMENTDESIGN

THEIR GOAL

J+ OF CHANGE + OF NOT CHANGE

+ +

- OF CHANGE - OF NOT CHANGE- -

Step 2b THEIR Conflict

- the one that caused my problem

THEIR THREAT

L

NOT CHANGE

CAUSEAction/DecisionofoneIblameformyproblem

Option1

CHANGE++Option2

NOTCHANGE++Option4

ANOTHERCHANGE

Option3

WHEN+WHENNOT

NOT CHANGE

STATUSQUOCurrentPracticein

conflictwiththisChange

IMPORTANT

Unique�Important�

Exaggerated�

Unique�Important�

Exaggerated�

Unique�Important�

Exaggerated�

Unique�Important�

Exaggerated�

Vs.

CHANGE

SOLUTIONActionIwantedthemtotaketopreventproblem

Vs.

Unique�Important�

Exaggerated�

Unique�Important�

Exaggerated�

Unique�Important�

Exaggerated�

Unique�Important�

Exaggerated�

yes, AND # 3OVERCOME OBSTACLES

yes, AND # 2PREVENT NEGATIVES

yes, AND # 1ADD SUFFICENCIES

ThenrepeatSteps3b,4b,5bfor“TheirConflict”…

Step1canbecompleted

eitherthroughBottom-up

OrTop-DownAnalysis

Mistake 1Wrong Problem

Wasting attention bottleneck

Mistake 2bBlaming SomeoneFor causing your Problem

Mistake 2aJump to Solution

Or Inertia due to Ambivalence

Mistake 3Acting but Compromising

Asking both sides to give up something

Mistake 4Ignoring valid Yes,buts

Or using them as Excuses not to Act

Mistake 5Bad Experiment

So can’t Learn from Experience

2016 TOCICO International Conference

©2016GoldrattResearchLabs.AllRightsReserved.

HOW TO USE CMC TO TELL YOUR STORY…?

DARKCLOUD

Step 1MY Problem

and why its important

Step 2aMY Conflict

in dealing with my problem

Step 2bTHEIR Conflict

- the one I blame for causing my problem

+ OF CHANGE + OF NOT CHANGE

What are the Unique PROS (+)

of STATUS QUO ?

What are the Unique PROS (+)

of the CHANGE ?

THEIR GOAL

JWhat is ”THEIR” Goal?

CAUSE(NOCHANGE)SOLUTION(CHANGE)

Vs.

Whose Action/ Inaction caused your problem?

(who do you blame?)

What conflicting Action could

have prevented your problem?

MYPROBLEM?

IMPACTONOTHERS

IMPACTONME

What is the Problem you are

facing?

Why is this Problem bad for you?

Why is this Problem bad for others?

THREAT

- OF CHANGE - OF NOT CHANGE

What are the Unique CONS (-)

of the CHANGE ?

What are the Unique CONS (-)

of STATUS QUO ?

LWhat is “THEIR” Threat ?

+ OF CHANGE + OF NOT CHANGE

What are the Unique PROS (+)

of the CHANGE ?

What are Unique PROS (+)

of STATUS QUO ?

+ OF NOT CHANGE

JWhat is ”MY” Goal?

SOLUTION(CHANGE) NOTCHANGE

Vs.

What action do you feel pressure to

take to solve your problem?

What is the Status Quo that’s in conflict with

this action?- OF CHANGE - OF NOT CHANGE

What are the Unique CONS (-)

of the CHANGE ?

What are the Unique CONS (-)

of STATUS QUO ?

THREAT

LWhat is “MY” Threat ?

WesometimesMAKE BADCHANGESbecauseofexaggerated

FRUSTRATIONSorEXPECTATIONS

WeoftenRESISTGOOD CHANGESbecauseofexaggeratedFEARSofLOSSorRISK

2016 TOCICO International Conference

©2016GoldrattResearchLabs.AllRightsReserved.

TELLING YOUR STORY…The Problem that hangs over PAUL like a dark cloud - his Over-spending…

Paul and his Over-spending Problem

2016 TOCICO International Conference

©2016GoldrattResearchLabs.AllRightsReserved.

Nowit’sYOUR Turn

TellusYOUR Story

bysimplycompletingthe

ChangeMatrixCloudProcess

Templateonthenextpage

2016 TOCICO International Conference

©2016GoldrattResearchLabs.AllRightsReserved.

TELLYOURSTORY….WiththeChangeMatrixCloud

Step 2aMY Conflict

in dealing with my problem

Step 2bTHEIR Conflict

- the one I blame for causing my problem

TACTIC 1SOLUTION (CHANGE)

TACTIC 2CAUSE (STATUS QUO)

Whose Action that caused your problem? (who do you blame?)

What conflicting Action could have prevented your problem?

TACTIC 1SOLUTION (CHANGE)

TACTIC 2NOT CHANGE (STATUS QUO)

What action do you feel pressure to take to solve your problem?

What is the Status Quo that’s in conflict with this action?

THEIR GOALPOSITIVE IMPACT ON GOAL OF STRATEGIES 1&2

STRATEGY 1CHANGE UPSIDE

STRATEGY 2NOT CHANGE UPSIDE

What is ”THEIR” Goal?

What are the Unique PROS (+) of STATUS QUO ?

What are the Unique PROS (+) of the CHANGE ?

RISK 1CHANGE DOWNSIDE

RISK 2NOT CHANGE DOWNSIDE

THEIR THREATNEGATIVE IMPACT ON GOAL OF RISKS

What is “THEIR” Threat ?

What are the Unique CONS (-) of the CHANGE ?

What are the Unique CONS (-) of STATUS QUO ?

MY THREATNEGATIVE IMPACT ON GOAL OF RISKS 1&2

What is “MY” Threat ?

RISK 1CHANGE DOWNSIDE

RISK 2NOT CHANGE DOWNSIDE

What are the Unique CONS (-) of the CHANGE ?

What are the Unique CONS (-) of STATUS QUO ?

MY GOALPOSITIVE IMPACT ON GOAL OF STRATEGIES 1&2

STRATEGY 1CHANGE UPSIDE

STRATEGY 2NOT CHANGE UPSIDE

What is ”MY” Goal?

What are the Unique PROS (+) of the CHANGE ?

What are Unique PROS (+) of STATUS QUO ?

Step 1MY Problem

and why its important

The Change Matrix Cloud Process (CMCP)How to tell YOUR STORY on a single page…

©Dr.AlanBarnard,GoldrattResearchLabs

WHY CHANGE 1LOCAL IMPACT

WHY CHANGE 2SYSTEM IMPACT

Why is this Problem bad for you?

Why is this Problem bad for others?

What is the Problem you are facing?WHAT TO CHANGE

PROBLEM

2016 TOCICO International Conference

©2016GoldrattResearchLabs.AllRightsReserved.

Nowit’sYOUR Turn

TellusYOUR Story

bysimplycompletingthe

ChangeMatrixCloudProcess

Templateonthenextpage

2016 TOCICO International Conference

©2016GoldrattResearchLabs.AllRightsReserved.

ButhowcanweresolveConflicts?

Practically,howdowemakedecisionswhenwe

experienceAmbivalence……whenwehavemixedfeelingsandemotions

aboutsomethingorsomeone…

IntroducingSTEP3,4and5ofthe

ChangeMatrixCloudProcess

2016 TOCICO International Conference

©2016GoldrattResearchLabs.AllRightsReserved.

STANDING ON THE SHOULDERS OF GIANTSDesigning a new Decision Support Process to more upside, less downside…

https://youtu.be/8Ga5o4Fhk90

2016 TOCICO International Conference

©2016GoldrattResearchLabs.AllRightsReserved.

TELLYOURSTORY….WiththeChangeMatrixCloud

MY GOALPOSITIVE IMPACT ON GOAL OF STRATEGIES 1&2

STRATEGY 1CHANGE UPSIDE

STRATEGY 2NOT CHANGE UPSIDE

NEW TACTIC 3TO WHAT TO CHANGE

RISK 1CHANGE DOWNSIDE

RISK 2NOT CHANGE DOWNSIDE

MY THREATNEGATIVE IMPACT ON GOAL OF RISKS 1&2

Step 3MY Conflict Resolution

To resolve conflict with more upside and less downside that Status Quo

What is ”MY” Goal?

What is “MY” Threat ?

What are the Unique CONS (-) of the CHANGE ?

What are the Unique CONS (-) of STATUS QUO ?

What are the Unique PROS (+) of the CHANGE ?

What are Unique PROS (+) of STATUS QUO ?

The Change Matrix Cloud Process (CMCP)How to tell YOUR STORY on a single page…

©Dr.AlanBarnard,GoldrattResearchLabs

Assumption Injection Howto?

1st 'Why?': CHANGE will result in losing MERMAID when/if…

1st Plus: CHANGE will NOT result in losing MERMAID when/if

How to achieve it?

2nd 'Why?': CHANGE will result in CRUTCHES when/if

2nd Plus: CHANGE will NOT result in CRUTCHES when/if

How to achieve it?

Assumption Injection Howto?

1st 'Why?': NOT CHANGE cannot give us POT OF GOLD when/if…

1st Plus: NOT CHANGE can give us POT OF GOLD when/if…

How to achieve it?

1st 'Why?': NOT CHANGE cannot remove ALIGATORS when/if…

1st Plus: NOT CHANGE canremove ALIGATORS when/if…

How to achieve it?

Assumption Injection Howto?

CHANGE is in conflict with NOT CHANGE when / if …

CHANGE is NOT in conflict with NOT CHANGE when / if…

When [condition] then CHANGE, else when [condition] NOT

CHANGE?

Assumption Injection Howto?

There is not other CHANGE to achieve more + and less - because

There is another CHANGE to achieve more + and less – when…

Another Way is …

When + When Not

Another Change

Not Change ++

Change ++

Option 1: CHANGE ++

Option 2: NOT CHANGE ++

Option 3: WHEN + WHEN NOT

Option 4: ANOTHER CHANGE

✔ ✔

✔ ✔

2016 TOCICO International Conference

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TELLING YOUR STORY…Another Problem that hangs over PAUL like a dark cloud - His Obesity…

Paul and his Over-spending Problem

2016 TOCICO International Conference

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MY GOALPOSITIVE IMPACT ON GOAL OF STRATEGIES 1&2

STRATEGY 1CHANGE UPSIDE

STRATEGY 2NOT CHANGE UPSIDE

NEW TACTIC 3TO WHAT TO CHANGE

RISK 1CHANGE DOWNSIDE

RISK 2NOT CHANGE DOWNSIDE

MY THREATNEGATIVE IMPACT ON GOAL OF RISKS 1&2

Step 4Yes, But Planning

To use Yes, Buts to turn Half-baked idea into Fully Baked Solution

What is ”MY” Goal?

What is “MY” Threat ?

What are the Unique CONS (-) of the CHANGE ?

What are the Unique CONS (-) of STATUS QUO ?

What are the Unique PROS (+) of the CHANGE ?

What are Unique PROS (+) of STATUS QUO ?

The Change Matrix Cloud Process (CMCP)STEP 4 – Yes, But Planning

©Dr.AlanBarnard,GoldrattResearchLabs

Stakeholder Insufficiency Yes,buts Howtoachieve sufficiency

Stakeholder PossibleNegative Yes,buts Howtopreventnegatives

Yes, but 1: Insufficiency

Yes, but 2: Possible Negative

Yes, but 3: Implementation ObstaclesStakeholder Obstacle Yes,buts Howtoovercomeobstacles

2016 TOCICO International Conference

©2016GoldrattResearchLabs.AllRightsReserved.

Step 5My Experiment

To really test new Solution

DESIGN MYEXPERIMENTNecessary assumptions

WHEN?

Why is there a need for change?

[From STEP 1 of CMC] My problem….why it is bad for me and for others/system

StrategyWHAT FOR?

What is the objective of the change?

[From STEP 2 of CMC]We to Achieve more of the Upsides (Gain Pot of Gold + Retain Mermaid)Less of the Downsides (Not Gain Crutches + Not Retain Alligators)And. this is how can we measure this

Viability assumptionsWHY?

Why is the change difficult but possible?

Conflict Conditions/Assumptions challenged in resolving Conflict [from STEP 3 of CMC]

How to achieve Sufficiency to address Insufficiency Yes Buts with Yes, Ands..

How to address Negative Consequences Yes, buts with Yes, Ands…TACTICS

HOW TO?

What is the details of the change?

[From Step 3 of CMC] The best way to achieve the Strategy is either Change++, Not Change++, When + When Not OR Another Changes[From Step 4 of CMC]To add Sufficiency and Prevent Possible Negatives…we also have to ADD….

Sufficiency assumptions

WHY NOT?Why is the level of detail not sufficient

(warnings)?

[From Step 4 of CMC] Implementation Obstacle Warnings and the Sequenced Plan (IO map) on How to overcome these Obstacles

Note:Youmightrecognizethisformatasan

S&TNode.SoresolvingaCMCisawayto

buildyourownS&T

The Change Matrix Cloud Process (CMCP)STEP 5 – Design MY Experience

2016 TOCICO International Conference

©2016GoldrattResearchLabs.AllRightsReserved.

ExamplespresentedfromHARMONY– ACEO’sConflict

CMC Examples presented from HARMONY Understanding the “Lay-off Announcement” Conflict for CEO

2016 TOCICO International Conference

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CMC Examples presented from HARMONY Resolving the “Spend-it-or-Lose-it” Conflict for Hospital Administrator

2016 TOCICO International Conference

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Dr. Alan Barnard Interview with George RossThe Importance of having a Process to Learn from YOUR Experience

2016 TOCICO International Conference

©2016GoldrattResearchLabs.AllRightsReserved.

XXXXXX

SUMMARY – A new Development on TOC TP5 Steps CMCP to prevent the 5 most common mistakes in decision making

Step 1MY Problem

and why its important

GAP

PROBLEMYouarefacing

SYSTEM IMPACT

LLL$$$

LOCAL IMPACT

L

MY GOAL

+ OF CHANGE + OF NOT CHANGE

4 ALTERNATIVE WIN:WINS

- OF CHANGE - OF NOT CHANGE

MY THREAT

Step 3MY Conflict Resolution

By challenging assumptions preventing win:win

X XX

J

NewSolution(bestoutof4 – more+/Less-)

TODAY

GreatIdeabut stillhalf-baked..manyYes,buts…orExcuses

Step 4My Plan

To overcome hurdles

NEW CHANGE

yes, BUT # 3OBSTACLES

yes, BUT # 2POSSIBLE NEGATIVES

yes, BUT # 1INSUFFICENCIES

MY GOAL

J+ OF CHANGE + OF NOT CHANGE

+ +

- OF CHANGE - OF NOT CHANGE- -

Step 2MY Conflict

in dealing with my problem

MY THREAT

L

CHANGE

SOLUTIONChangeneededtodeal

withmyproblem+“YESAND”Plan

toovercomeall“Yes,buts”

EXPERIMENT OUTCOME

ProblemSolved?MonitorGreen vs.RedFlags

Step 5My Experiment

To really test new Solution

WHEN?WHAT?WHY?HOW?

Problem/GAP?Objective&Metrics?Assumptions?BestTotalSolution?

EXPERIMENTDESIGN

THEIR GOAL

J+ OF CHANGE + OF NOT CHANGE

+ +

- OF CHANGE - OF NOT CHANGE- -

Step 2b THEIR Conflict

- the one that caused my problem

THEIR THREAT

L

NOT CHANGE

CAUSEAction/DecisionofoneIblameformyproblem

Option1

CHANGE++Option2

NOTCHANGE++Option4

ANOTHERCHANGE

Option3

WHEN+WHENNOT

NOT CHANGE

STATUSQUOCurrentPracticein

conflictwiththisChange

IMPORTANT

Unique�Important�

Exaggerated�

Unique�Important�

Exaggerated�

Unique�Important�

Exaggerated�

Unique�Important�

Exaggerated�

Vs.

CHANGE

SOLUTIONActionIwantedthemtotaketopreventproblem

Vs.

Unique�Important�

Exaggerated�

Unique�Important�

Exaggerated�

Unique�Important�

Exaggerated�

Unique�Important�

Exaggerated�

yes, AND # 3OVERCOME OBSTACLES

yes, AND # 2PREVENT NEGATIVES

yes, AND # 1ADD SUFFICENCIES

ThenrepeatSteps3b,4b,5bfor“TheirConflict”…

Step1canbecompleted

eitherthroughBottom-up

OrTop-DownAnalysis

Mistake 1Wrong Problem

Wasting attention bottleneck

Mistake 2bBlaming SomeoneFor causing your Problem

Mistake 2aJump to Solution

Or Inertia due to Ambivalence

Mistake 3Acting but Compromising

Asking both sides to give up something

Mistake 4Ignoring valid Yes,buts

Or using them as Excuses not to Act

Mistake 5Bad Experiment

So can’t Learn from Experience

2016 TOCICO International Conference

©2016GoldrattResearchLabs.AllRightsReserved.

ABOUT THE PRESENTERSDr. Alan Barnard (PhD)

Dr. Alan Barnard is one of the leading experts in the world in Theoryof Constraints (TOC) frequently worked with Dr. Eli Goldratt, creatorof Theory of Constraints on large and complex projects around theworld. He is the CEO of Goldratt Research Labs (Singapore andusa), African Phosphates (RSA) and The Odyssey Institute (USA).Alan is also a board member of TOCICO and the Dr. Eliyahu M.Goldratt Foundation.In 2009, Alan was awarded a PhD in Management of Technology &Innovation, from the Da Vinci Institute in 2009 with a thesis titled“How to identify and unlock inherent potential within organizations(private & public) and individuals?”. Alan is also the author of 2chapters in the McGraw Hill published Theory of ConstraintsHandbook. He is also the architect of HARMONY(www.harmonytoc.com)Alan is a past-President of TOCICO (2003 to 2005) and serve on the judging panels of theLogistics Achiever Awards and Technology Top 100. He has worked with globalcompanies such as ABB, BHP Billiton, Cisco, SAP, Random House Publishing, Microsoft,African Explosives, TATA in the Private sector. Alan has also worked with UN DP, UN WFPand for example Utah State Government in the public sector on applying for exampleTheory of Constraints to City Councils and Government Agencies in in the Public Sectorto help them identify and unlock inherent potential to achieve more with the sameresources in less time.

[email protected]

2016 TOCICO International Conference

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2. WhattoChange?Ourpoorunderstandingofthemostcommon

mistakesthatcauseustomakeandoftenrepeatbaddecisions– ignorance (Ididnotknow),

inertia (Iknewbutdidnotact),differenttypesofineptitude (Iactedbutcompromised)

3. WhattoChangeto?Createa5Stepprocessdesignedspecificallytoprevent

the5mostcommontypesofdecisionmistakes.1) workingonwrongproblem,2) jumpingtosolutionorblaming,3) compromising,4) nothavingaplantoaddressvalidyes-butsand5) notdoing”honestexperiments”.

4.Howtocausethechange?TheLearningfromExperiment(LFE)Process

Step1:IdentifyProblemandwhyitsimportantStep2:DefineConflictsthatblockresolutionofProblemStep3:Explore4ViableWaystoresolveconflicts…Step4:CreatePlantoovercomevalidyes,buts…Step5:Designexperimenttotestnewinsights

5.HowtocreatePOOGI?Adopta”Learnfromexperiment”methodto

continuouslyimprovecurrentmethodsforhelpingindividualsbetterunderstandwhyweresistgoodchangesand/orover-reactandmakebadchangesandtheassumptions

behindthesedecisionerrors

1. WhyChange?Ourbottleneckisourlimited“attention”whichwe

wastewhenmakeandrepeatbaddecisions- wedo

whatweshouldnotandnotdowhatweshould.

Butwhydowerepeatthesedecisionmistakeswhich

compromiseourhappiness,harmony&productivity…?

Standing On The Shoulders of GiantsSummary of TOC 5 Question Analysis

2016 TOCICO International Conference

©2016GoldrattResearchLabs.AllRightsReserved.

INSIGHTS FROM ODYSSEY ALUMNI RESEARCHPositive Pscyhology’s PERMA & Core Conflict Correlations

Flourish

Feel / Be respected

Have more Positive

Emotions

Only do things that are

“important”

Do things that just make me feel

good

Overwhelmed / don’t’ have enough fun

Feel selfish / lack meaning

Not Flourish

WELL-BEING

FLOURISHINGPERSONJ

Enough…

PPositive Emotion

Enough…

EEngagement (Flow)

Enough…R

(Positive) Relationships

Enough…

MMeaning

Enough…A

Achievement

Flourish

Be reliable / Not fail

Have more FLOW

Do only tasks you can succeed with

Do really challenging tasks

BoredomAnxiety

Not Flourish

Flourish

Respect myself / Feel respected

Have Positive Relationships

Donot compromiseonimportantneeds(evenif

itcausesdisharmony)

Compromise important needs / wants to maintain

harmony

Upset my partner / disharmony

Feelexploited

Not Flourish

Be happy

Enjoy life / not fail

Have meaning in life

Don’t try to “save” the world

Try to “save” the world

Feel / LookSuperficialor

Sellfish

Neglect your family or other

needs

Not Flourish

Be happy

Have enough TAM buffer for important stuff

Experience achievement in

life

Don’t invest more – do best with what you have

Invest more Time/Attention/

Moneyto make Progress

Blame myself for not really

trying

Riskoffailure/

blamedfor

wastingtime

Not Flourish

POSITIVEEMOTION

WELL-BEING

Too

LittleEnough

Too

much

ENGAGEMENT

WELL-BEING

Too

LittleEnough

Too

much

POS.RELATIONSHIPSWELL-BEING

Too

LittleEnough

Too

much

MEANING

WELL-BEING

Too

LittleEnough

Toomuch

ACHIEVEMENT

WELL-BEING

Too

LittleEnough

Too

much

2016 TOCICO International Conference

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Haveenoughmeaningfulsuccesses

Successfulorganization/Life

Haveenoughopportunities

Havestaminatoovercomefailures

Beabletocollaboratewithpeople

Needtoovercome5obstacles

2ND LIMITING BELIEFFearofcomplexityresulting

inlocaloptima

3RD LIMITING BELIEFFearofconflictsresultingincompromising/win:lose

5TH LIMITING BELIEF

Blamingothers/startingconditions

1ST LIMITING BELIEFPerceptionofdiminishingreturns

/outofourcontrol

Beabletothinkclearly&stayfocused

2nd TOC BELIEFEverysystemhasinherent

simplicity- FOCUS

3rd TOC BELIEFEveryconflictcanberesolved

withwin:win

5th TOC BELIEFFindandchallengeOUR

BADassumptions

1th TOC BELIEFEverysystemcanbesubstantially

improved

4TH LIMITING BELIEFFearofUncertaintyresultingin

over- orunder-reaction

4th TOC BELIEFGetto“Goodenough”anduse

fastfeedbacktolearn

TOC FUNDAMENTALSLimiting vs. TOC’s Enabling assumptions..

2. COMPLEXITY 4. UNCERTAINTY1. CONSTRAINTS 3. CONFLICTS 5. BAD CHOICES

AdaptationbyDr.AlanBarnardfromDr.EfratGoldratt’sNotesTHECHOICE,2010,Dr.EliGoldratt

ApplicationofCMC