1. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd. Chairman Gael Ltd. Jim Mather

2. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd. My Key Messages  These are tough times  Let’s use this crisis to good effect  Scotland & all its sub-systems can be improved  Let’s do our utmost to achieve our potential  Business Continuity has many of the answers  Let’s seize the opportunity to be all than we can be

3. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd.  The Beginning 2001 - Addressing Current Reality  The journey I took - 1996-2011  2011 Challenges facing Ministers  What I am doing about it now  The Future and the Potential  What we can do…….  that would get applause from Deming, Frankl & Ramo? Scotland 2011 – my view…..

4. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd. Personal Journey 2001….  The NEED to Change  The NEED to Explain  The NEED for Method  Enter …….Goldratt –  The Theory of Constraints and the importance of identifying the core problem

5. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd.  Eli Goldratt  TOC  The Economic Case  The Critical Chain and the Parliament Building My Journey – Sources - Inputs

6. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd.  W. Edwards Deming  The Book  The 14 Points  Profound Knowledge  Systems Thinking  Psychology  Variation  The Theory of Knowledge My Journey – Sources - Inputs

7. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd. W. Edwards Deming Distribution Customers Customer Research Design and Re-Design Stage 0: Generation of Ideas ProductionAssemblyInspection Receipt and Test of Materials Suppliers of Materials and Equipment A B C D Tests of processes, machines, methods and costs Deming – Production viewed as a System

8. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd.  Walter A. Shewart  Operational Definitions  Statistical Process Control Charts My Journey – Sources - Inputs

9. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd.  Peter Senge  Five Disciplines developed as an ensemble  Personal Mastery  Mental Models  Building Shared Vision  Team Learning  Systems Thinking My Journey – Sources - Inputs

10. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd.  Joshua Cooper Ramo  The Age of Unthinkable  Objective in an era of Turbo Unintended Consequences:-  Become Resilient Immune Systems  “Greenspan ideas no longer working…..”  “Better to be Gardeners”  “Wealth gap unsustainable” My Journey – Sources - Inputs

11. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd.  Advice  Look at the world differently  Recognise increased instability is here to stay - focus more on Resilience instead of Returns  (Dept. of Resilience larger than Dept. of Defence)  (National Scepticism Council)  Be Oblique in Solving problems  Learn to give away power  Be Systems Thinkers My Journey – Sources - Inputs

12. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd.  John Seddon  Check, Plan, Do  Type & Frequency of Demand  Value v. Failure Balance  Focus on:  Preventable / Reduce-able Risk  Challenging Orthodoxies  Broadcasting what works  Economies of Flow  Avoiding the slavish adoption of Manufacturing Tools My Journey – Sources - Inputs

13. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd.  Scenario Planners  Ari de Geus  Adam Kahane My Journey – Sources - Inputs

14. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd.  George Kennan  "Today you cannot do good unless you are prepared to:  Exert your share of power  Take your share of responsibility  Make your share of mistakes  Assume your share of risk” My Journey – Sources - Inputs

15. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd.  Professor Chris Argyris  Defensive Reasoning  Double-Loop Learning  Open-mindedness  Willingness to work together to improve the system forever My Journey – Sources - Inputs

16. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd.  Professor Kenneth Cloke  Multiple Truths  Jerk-Free Zones  Prisoners Dilemma update  Ladder of Unity My Journey – Sources - Inputs

17. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd. Opposition Unifying Worth Goal Fair & Open Processes Care for each other Experience Relationship Professor Ken Cloke’s Ladder of Unity

18. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd. Target Condition Current Condition Vision for 2016 Source: Mike Rother Delivered by means of continuous Mentoring My Journey – Sources - Inputs

19. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd. Worthy Altruistic Unifying Goal Determination to constantly optimise the whole system Active Maintenance of Relationships Constant Referral to Community Interest and Community Involvement Involvement of external people and organisations that could “Contribute or Benefit From” the success of the “System” Charles Ehin

20. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd. William Stern: "The basic driving force for every living system is the development of its inherent potential." My Journey – Sources - Inputs

21. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd. My Journey – Sources - Inputs  Viktor Frankl:  Logotherapy  Work  Relationships  Resilience The lack of meaning is the paramount existential stress. Existential neurosis is synonymous with meaninglessness Frankl’s meaning in life: Help others find theirs

22. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd. Johnson & Broms: The principles of living system: 1.Ingenious and self-ordering 2.Inter-dependent & interconnected 3.Diverse My Journey – Sources - Inputs

23. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd. Likely reasons why change & innovation programmes fail  Lack of leadership  Resistance from employees (at any level)  No common vision or misunderstanding of the planned outcome  Lack of communication of need for change  Lack of communication during planning, implementation and review stages  Trying to do many projects or initiatives at once  Hangover from past changes  Forcing change from the top without consulting or involving those directly affected  Little or no time spent reviewing and embedding/reinforcing the change once it has been made  No consideration given to overall system – i.e. how the change impacts on other areas of the business  Inadequate resources allocated/available to see it through Future SME 2011

24. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd. Likely reasons why change & innovation programmes fail  Lack of leadership  Resistance from employees (at any level)  No common vision or misunderstanding of the planned outcome  Lack of communication of need for change  Lack of communication during planning, implementation and review stages  Trying to do many projects or initiatives at once  Hangover from past changes  Forcing change from the top without consulting or involving those directly affected  Little or no time spent reviewing and embedding/reinforcing the change once it has been made  No consideration given to overall system – i.e. how the change impacts on other areas of the business  Inadequate resources allocated/available to see it through Future SME 2011

25. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd. Three Horizons – Three Mindsets H1 – Status Quo – Business as Usual H2 – Gradual Evolution of Existing Business H3 – Radical Departure from Existing Business Model

26. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd. First the Regulated…Sector by Sector…

27. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd.  Eric Beinhocker  Beyond Shareholder value  Endure & Grow  Policies that favour:-  Taking many small risks over a few big ones  Growth and endurance rather than short-term gains. Then all businesses that want to survive

28. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd.  ICAS Conference 30 th Sept 2011  Prof Costas Markides  Only 25% of businesses can survive a major discontinuity Starting now……  Rebecca Henderson  "Successful firms build strong commitments to rejuvenating the firm"

29. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd. Meanwhile the 2011 Challenge Facing Scottish Ministers…….. The Financial Crisis of 2007 and its aftermath……..

30. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd. Government Spending Source: ONS/HMT 35 37 39 41 43 45 47 49 Government spending and tax revenues spending receipts

31. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd. Government Spending…… Source: ONS/HMT % GDP

32. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd. Estimated Scottish Departmental Expenditure Limit - 2009-10 to 2026- 27 The Goudie Gap

33. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd. We urgently need to improve the quality of public services…… Yet ….Public Expectation remains high

34. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd. Financial Crisis – Many Sources of Advice  Philip Augar  George Soros  Nouriel Roubini  Liaquat Ahamed  Professor John Kay  Ken & William Hopper  Ronnie Bowie  Faculty and Institute of Actuaries  Hyman P. Minsky

35. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd. Collaborative Conversations Purposeful Engagement at all Levels Clear Unifying Worthy Purpose National, Local, Sectoral & Themed Systems Thinking Learning Society QMS Risk Management Mediation Rejection of / Exposure to Defensive Reasoning Adaptive Capability Respect, Fairness – Shared Value Constant Challenge of Stasis & Orthodoxies Genuine Empowerment / Mentoring Resilience Towards Scottish Resilience…. Personal Mastery

36. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd. Understand Goals & Achievement Goal Rev. Time Innovations, Improvements, Inhibitors Removed and Investment

37. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd. Upper Control Limit Average Lower Control Limit UCL Average LCL  The Steps: – Decide what to measure – Make system stable – Monitor & maintain control – Improve the system - forever Take a Scientific Approach

38. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd.  Role at the University of Strathclyde  Systems Thinking:  Courses  Internal Adoption  Future SME – Adaptive SMEs  Links with Other Universities – The Rise of the Systems Thinker  Vanguard Lincoln Summer 2011  Consultancy  Holyrood Events  Rural Leadership Group  Argyll & Bute Emulation  Facilitated Neutral Conversations  Gael  Q-Pulse  Gael Risk  MindGenius  Higher Purpose What am I doing about it….

39. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd.  Based in Scotland  Compliance and Risk Solutions  Over 2,500 Customers Worldwide  75% of UK NHS Trusts use Q-Pulse Gael Involvement - beyond advocacy

40. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd. Dynamic Risk Oversight for Business Resilience

41. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd.

42.  Hazards  Their Associated Risks  Vulnerable Assets  Their Associated Risks Identify

43. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd.  Threats  Consequences  Inherent Risk  CIA Classification for Assets Understand

44. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd.  Hazard Importance  Asset Importance  Risk Importance  High Inherent Risks Prioritise

45. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd.  Take Action (Mitigate)  Associate Existing Controls  Implement New Controls  Quantify Residual Risk  Set Residual Targets  Track ALARP Risk Assess & Treat

46. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd.  Document  Manage Register(s)  Manage Risks  On going Actions  Audit Controls Formalise & Manage

47. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd.  Specific to your Role  Visibility of System Gaps  Change Alerts and Impact  Controls Effectiveness Monitor & Review

48. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd.  Easily Understand Risk Relationships & the Routes to Incident  Visualises the Consequence of Change  Simply way to Communicate Risk to all Staff  Easy to Audit  Hazards & Risk relevant to Roles Aids Training (via Registers) Bowtie Visualisations

49. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd.  MindGenius  Identify and Import  Q-Pulse  Controls & Events Monitoring  Effectiveness through Audit  Other Business Systems Gael Risk Integration Strategy

50. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd.  Leverages Collaboration  Simple Robust Capture using Multiple Techniques  Organise & Understand  Create Structure  Fill Gaps  Categorise & Export directly to Gael Risk MindGenius Benefits

51. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd.  QMS – Risk Management Capabilities  Constant Management of  Performance / Integrity  Corrective & Preventive actions  Audit  Reports / Suggestions  Documentation Q-Pulse Benefits

52. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd.  Store Controlled, re useable library of Risk Scenario Maps  Controls & Events Monitoring  Automated Change Warnings  Validation of Likelihood  Risk Based Auditing Approach  Autonomous Change alerts to Gael Risk Q-Pulse Benefits

53. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd.  True Risk Oversight  Dynamic Risk Management  Understand the Impact of Change  ‘Risk Status’ Confidence  Continually Increase Risk Maturity  Reduce your Risk Exposure Integration Benefits

54. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd.  Staff: Enables widespread understanding of Risk across the organisation  Management: Provides comprehensive management oversight including key controls that manage inherent risks  Risk Professionals: Assists in the management of the Risk Lifecycle User Benefits

55. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd.  Designed to make implementation faster, simpler and more comprehensive  Asset registers reflect business importance and integrate Confidentiality / Integrity / Availability (CIA) classification  Association of controls with the areas of the ISO27001 standard enables fast identification of gaps  Automatically generates Statement Of Applicability (SOA) for ISO 27001  Achieve business resilience ISO 27001, BCP & DR Benefits

56. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd.  100% Web Based  Secure Cloud Technology  Access Through Standard Browsers  Always on Latest Version  Can React and Deploy Quickly  Zero Down Time to Upgrades Designed for Industry Needs

57. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd.

58. Gael is UKAS ISO 27001 Certified e: risk@gaelquality.comrisk@gaelquality.com t: +44 (0) 1355 593400

59. Q-Pulse is a registered trademark of Gael Products Ltd. All rights reserved worldwide. Copyright © 2011 Gael Ltd. Chairman Gael Ltd. Jim Mather