A lot of research has shown that systems are the key to innovation success.
Systems are made up of interrelated components of people and processes with a clearly defined, shared destination or goal.
Systems work best when everyone shares an understanding and commitment to the aim or purpose of the system.
The foundations are clarity and a commitment to learn, and improve.
Great companies have 3 characteristics that set them apart from the rest. These characteristics are:1. An ability to see and build on strengths 2. A commitment to build innovation eco-systems and 3. A commitment to ongoing action
Deliverables: Simplifying the challenges, structuring the learning process, getting better internally and in your eco-system.
Enough information to update your objectives and start another cycle.
3. Quick Recap
Increase your odds
of working on the
right things
Problem finding +
Stimulus
+ Diversity
+ Work
Ideas / solutions
worth testing
Clarity to
move
forward
Clarity First
Really Listen
Be honest
Opportunities
Death Threats
4. What’s the core message today…
View 1: To move forward effectively you need to focus your energies on the most important parts of your
business, the best way to do this is to use a systems view to identify death threats and key opportunities.
View 2: Bullets, then cannonballs.
View 3: Going slow to go fast.
Final
Understand what you’re aiming at and why,
take time to shoot bullets together,
then fire cannonballs.
9. A system versus a process
a GOOD SYSTEM is
2 or more independent parts
working together to achieve a
common aim
a PROCESS is
A way of doing things (it
doesn’t mean people will work
together)
10. A good innovation system
• A holistic view, so you can be honest with yourself
• A momentum , a way to do things that stick
• Purpose
• Process
• Persistency
11. The big value of
systems
They keep you learning and they keep you thinking
17. The flywheel effect
Crawl, Walk, Run
Change happens
slowly, but then it
happens all at one
Building a flywheel
Source: The flywheel Effect , Jim Collins
20. How to think in systems
1. Understand businesses are systems
2. Make room for system thinking
3. Use system thinking to identify death threats and “one things”
4. Take a systematic approach to learning
30. Launch
Product
Sell
Product
Partner Support and profit for partners
Case Studies
Link to Sprint Ideas
Link to other methods
I
Interest
Real
Benefits
Links to
Other
Methods
Clear
Benefits
A
Aware
Articles
Books
Talks
Social media
A
Act (Buy)
Dramatic
Difference
Emotions
Remove Risks
Fit with existing
Programs
D
Desire
Reason
to
believe
Emotions
Remove Risks
Fit with existing
Programs
31. How to think in systems
1. Understand businesses are systems
2. Make room for system thinking
3. Use system thinking to identify death threats and “one things”
4. Take a systematic approach to learning
34. Some old, but very good advice
1. Appreciation of a system
2. Understand Variation
Common Causes vs Special Causes
3. Understand human behavior
4. Theory of knowledge 20171982 1993
35. Understanding Systems
A system is complex.
It is made up of interrelated
components of people and
processes with a clearly (or
unclearly) defined, shared
destination or goal.
Appreciation of a system
depends on quality leaders’
understanding the
interconnectedness and
interdependence.
In a good orchestra people play together
The same should happen in business
36. Variation
Common Cause versus Special Cause
Common Cause
• Is inherent in the design of the
process
• Is due to regular, natural or
ordinary causes
• Affects all the outcomes of a
process
• Results in a “stable” process that is
predictable Also known as random
or unassignable variation
Special Cause
• Is due to irregular or unnatural
causes that are not inherent in the
design of the process
• Affect some, but not necessarily all
aspects of the process
• Results in an “unstable”” process
that is not predictable
• Also known as non-random o
38. Common Cause or Special Cause
• Innovation does not work in 94% of organizations
• You’re late for class because of a flat tire
• You’re always late for class
• 85% of start-ups fail
Deming estimates : 94% of problems are due to common
causes and are management's responsibility. He estimates that
only 6% of problems are due to special causes
39. Understand human behavior
Most psychologists agree that humans have an innate
desire to perform well, to take pride in what they do.
Successful organizations harness this by ensuring that
systems allow workers to contribute towards
improvement.
Theory of knowledge
Improvement isn’t something you do once and forget
about, it isn’t a process with an end-point. Improvement
within an organization has to be continuous.
40. How to think in systems
1. Understand businesses are systems
2. Make room for system thinking
3. Use system thinking to identify death threats and “one things”
4. Take a systematic approach to learning
41. It’s Easy To Ignore What You Don’t Want
To Do.
The Stockdale Paradox (Named after Vietnam Prisoner of
War)
Retain faith that you will prevail in the end, regardless of the
difficulties. AND at the same time confront the most brutal
facts of your current reality, whatever they might be
42. ++ +++ - +++
+ + + +
Failure
Success
Success is about getting everything “good
enough”
43. ++ +++ - +++ Failure
Success
++ +++ + +++
Option 1: You can fix a “death threat”
44. ++ +++ - +++ Failure
Success
+++ ++++ + +++
Option 2 You can find a “one thing”, that makes many things
better
46. 2 ways to be really effective
multi-tasking to
“unitasking”
parallel to
sequential
47. A simple example
With
Current 40 hours
Web site right 80% 90% 90% 80% 80% 80% 80%
Better Laptop 80% 99% 80% 99% 80% 80% 80%
Co-founder 30% 60% 30% 30% 60% 30% 30%
Product 80% 90% 80% 80% 80% 90% 80%
Pricing 40% 75% 40% 40% 40% 40% 75%
48. The most powerful tool ever invented
for a start-up
Do Now Do Later Don't do
49. Slower is faster !
A study by Economist intelligence with 312 companies split into
2 groups:
1. Go, go, go
2. Think, go , think, go (paused at strategic moments)
The companies with strategic pauses achieved:
40% higher sales and 52% higher profits
50. How to think in systems
1. Understand businesses are systems
2. Make room for system thinking
3. Use system thinking to identify death threats and “one things”
4. Take a systematic approach to learning
51. What does it mean to learn as you go?
Quite Simply…
1. Test
2. Learn
3. Take Action
52. Mini versus Maxi Learning cycles
Mini
Low stakes
beta test
Bullet
Maxi
High stakes
investment
Cannonball
54. A system of Active learning =
The heart of Innovation
• Holistic and honest view.
• Accept and Overcome business shortcomings.
• Momentum: a way to doing things that stick
• Purpose
• Process
• Persistency
• Making decisions and taking action as you go
An Innovation system is incomplete without active
learning
55. Quick Recap
Increase your odds
of working on the
right things
Problem finding +
Stimulus
+ Diversity
+ Work
Ideas / solutions
worth testing
Clarity to
move
forward
Clarity First
Really Listen
Be honest
Opportunities
Death Threats
Understand
Analyse
Make decisions
A smart next step
A little or a big
cycle
56. If you got it right,
launch
cannonballs.
If not, fire more
bullets or try
1.Understand what you’re
aiming at and why
Alignment
2.Look for better solutions
Build
3.Check progress
Communicate + Check
4.Make decisions
Systems