1. White paper August 2008 White paper August 2008 Dynamic-robust problem solving - thinking tools for outperformance. A guest contribution white paper for the BetaCodex Network Courtesy of Dr. Gerhard Wohland gerhard.wohland@benmark.net Make it real!

2. Page 2 benmark university Institut für dynamikrobuste Höchstleistung Dr. Gerhard Wohland, gerhard.wohland@benmark.net 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

3. Page 3 benmark university Institut für dynamikrobuste Höchstleistung formal dynamic sluggishnesshigh dynamics machine man The historical course of market dynamics The domination of high dynamic is neither good or bad. It‘s a historical fact. t 1900 1980 2008 Conventional companies Outperformers Market pressure Crafts manufacturing Tayloristic industry Global markets

4. Page 4 benmark university Institut für dynamikrobuste Höchstleistung How to distinguish between “red” and “blue”. flow repetition dead alive structure rule principle surprise

5. Page 5 benmark university Institut für dynamikrobuste Höchstleistung......... InformationData ValuesBehavior to practiceto learn Ability (skill)Knowledge LeadershipAdministration complex dynamic alive complicate formal dead Blue Duality – the distinction between “red“ and “blue“ Red.... Communication Culture Qualification Competence Management ”World“ The Integration behind the Distinction Distinctions are needed, if you want to think and describe dynamic relations.

6. Page 6 benmark university Institut für dynamikrobuste Höchstleistung Centre Shareholder Market Dynamic market Stimulus Response Market Centre Shareholder Dull market Peri- phery Stimulus Response Peri- phery In dynamic markets, the centre loses its knowledge superiority, and steering collapses. Centre and periphery under dynamic pressure Peri- phery

7. Page 7 benmark university Institut für dynamikrobuste Höchstleistung Things to remember about innovation: 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. Innovation applies to: “Products” (meaning: new value creation) Organisation (we’ll see more about that) Thinking (e.g.: “red” and “blue”)

8. Page 8 benmark university Institut für dynamikrobuste Höchstleistung Centre Shareholder Market High dynamic (leadership)Low dynamic (steering and control) Peri- phery The centre solves problems and gives out orders – the periphery executes upon them. Problem-solving in low and high-dynamic markets Peri- phery The centre divides the problems, passes them to the periphery and re- combines their results into a solution Knowledge Problem Solution Order to periphery Peri- phery Market Shareholder Competence Problem Finds solutions Competence Problem Divides problems Centre

9. Page 9 benmark university Institut für dynamikrobuste Höchstleistung 1. Symmetrization 2. Dual Process Development 3. Culture Observation 4. Strategy versus Plan 5. Economic Outsourcing “Thinking tools” for outperformers (examples)

10. Page 10 benmark university Institut für dynamikrobuste Höchstleistung value creation Centr e Periphery AsymmetricalSymmetrical Day-to-day business Innovation Symmetric coupling of centre and periphery service “right to demand” Innovation Day-to-day business Control Leadership custome r Central service The reintegration of day-to-day business responsibilty into the periphery turns the interface symmetric, and innovation becomes possible. Self-control

11. Page 11 benmark university Institut für dynamikrobuste Höchstleistung flow repetition Low dynamics High dynamics The duality of processes 12345 Problem-solving technology: ”Process“-description Problem-solving technology: People with ideas Low-dyamic problem High-dynamic problem dead alive structure rule principle surprise High-dynamic problems call for an increase in the red part of the solving process.

12. Page 12 benmark university Institut für dynamikrobuste Höchstleistung The similarity in the complex portion of all problems Tayloristic / Federative Management Sales IT Costs Project Management Knowledge Management Organization Mastery / Knowledge Leadership/Administration Qualifi- cation Value creating / Parasitic Betterment/Administration Reduction / Optimization Coupled / Neutral Administration/Leadership complex complicated

13. Page 13 benmark university Institut für dynamikrobuste Höchstleistung The duality of culture Only the blue part of culture can be changed. The red part of it can only be observed! Behaviour (doing) Values (thinking) Behaviour-based culture (tayloristic-dull/slow) Value-based culture (post-tayloristic/dynamic) Consisting of: Governed through: What you can see and change by decision. Control (trivial) What‘s behind and cannot be changed by decision. Extrinsic motivation to behavior Leadership (complex) Intrinsic motivation to thinking

14. Page 14 benmark university Institut für dynamikrobuste Höchstleistung “Strategy”, or “planning”? In conformity with strategy Out of bounds! Future Status (Target) Current Status “Strategic space“ 1 2 3 4 5 6 Out of bounds! If you know the way, then you can make a plan. If you don‘t know the way, then you need strategy.

15. Page 15 benmark university Institut für dynamikrobuste Höchstleistung Make shell (waste/muda) Make core Buy shell (outsourcing) Buy core (“Santa Clause“ interface) we make it ourselves! we buy it! existing missing supplier market (external reference) Business intention (internal reference) Outsourcing: Harmony and conflict between “core“ competence and “shell“ competence 1 4 3 2 The outsourcing decision is determined exclusively by the supplier market, not internally. Innovation is limited to core competence.

16. Page 16 benmark university Institut für dynamikrobuste Höchstleistung Dr. Gerhard Wohland, gerhard.wohland@benmark.net

17. www.betacodex.org Get in touch with us for more information about leading transformation with the BetaCodex and the Double Helix Framework, or ask us for a workshop proposal. Make it real! Niels Pflaeging niels@bbtn.org nielspflaeging.com Sao Paulo, Brazil Gebhard Borck gebhard@bbtn.org gberatung.de Pforzheim, Germany Valérya Carvalho valeria@bbtn.org Betaleadership.com Sao Paulo, Brazil Andreas Zeuch az@a-zeuch.de a-zeuch.de Winden, Germany Silke Hermann silke.hermann@ insights-group.de Wiesbaden, Germany Markus Schellhammer markus.schellhammer@ my-online.de Zurich, Switzerland