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Leadership and Design
      Thinking

    Treating Your
   Organization as
Unfinished Prototype

       Professor Robert Sutton
  Department of Management Science &
             Engineering
          Stanford d.School
The Attitude of Wisdom


• Acting on best knowledge you
  have RIGHT NOW while doubting
  what you know (and seeking
  ever better information)

• OR treating your organization
  like an unfinished prototype
COVENTIONAL WISDOM IN
      THE GAMING INDUSTRY


• Comping” rooms is a great way
  of attracting customers
• High rollers are an important
  source of profits
• Building beautiful edifices
  with convention and meeting
  space is a good way to
  attract business
THE FACTS—AS DISCOVERED
            BY HARRAH’S
• Free chips and meals are more
  important than rooms—most frequent
  gamblers live nearby

• Most profits come from regular
  players of slot machines, not from
  high rollers

• Investing in data mining, pilot
  programs, experiments, and HR
  practices to cut turnover and
  provide better service provides a
  better return than building palaces
20+ experiments a day a Yahoo!
Leadership and the
  Attitude of Wisdom


Act on the best knowledge you
have right now and act like
you know what you are doing:
but never forget that you
might be wrong.
“I think it is very important for you to do two
    things: act on your temporary conviction as
    if it was a real conviction; and when you
    realize that you are wrong, correct course
    very quickly …. And try not to get too
    depressed in the part of the journey,
    because there’s a professional
    responsibility. If you are depressed, you
    can’t motivate your staff to extraordinary
    measures. So you have to keep your own
    spirits up even though you well understand
    that you don’t know what you’re doing.”
-                             Andy Grove, Intel
Contact us and learn more


robert.sutton@stanford.edu

www.bobsutton.net (blog)

www.evidence-basedmanagement.com
Sources

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Sutton, Robert Leadership And Design Thinking

  • 1. Leadership and Design Thinking Treating Your Organization as Unfinished Prototype Professor Robert Sutton Department of Management Science & Engineering Stanford d.School
  • 2. The Attitude of Wisdom • Acting on best knowledge you have RIGHT NOW while doubting what you know (and seeking ever better information) • OR treating your organization like an unfinished prototype
  • 3.
  • 4. COVENTIONAL WISDOM IN THE GAMING INDUSTRY • Comping” rooms is a great way of attracting customers • High rollers are an important source of profits • Building beautiful edifices with convention and meeting space is a good way to attract business
  • 5. THE FACTS—AS DISCOVERED BY HARRAH’S • Free chips and meals are more important than rooms—most frequent gamblers live nearby • Most profits come from regular players of slot machines, not from high rollers • Investing in data mining, pilot programs, experiments, and HR practices to cut turnover and provide better service provides a better return than building palaces
  • 6. 20+ experiments a day a Yahoo!
  • 7. Leadership and the Attitude of Wisdom Act on the best knowledge you have right now and act like you know what you are doing: but never forget that you might be wrong.
  • 8.
  • 9. “I think it is very important for you to do two things: act on your temporary conviction as if it was a real conviction; and when you realize that you are wrong, correct course very quickly …. And try not to get too depressed in the part of the journey, because there’s a professional responsibility. If you are depressed, you can’t motivate your staff to extraordinary measures. So you have to keep your own spirits up even though you well understand that you don’t know what you’re doing.” - Andy Grove, Intel
  • 10. Contact us and learn more robert.sutton@stanford.edu www.bobsutton.net (blog) www.evidence-basedmanagement.com