A633.3.3.RB - Complex Adaptive Systems _RutbellGreg

Today, the business world is part of a complex adaptive system. Organizations are complex adaptive systems with interacting parts. In a complex adaptive system, all parts interact with each other according to a set of rules. There is no way to know how organizations will evolve over time. We cannot precisely or accurately state what the future will be or control changes. The world is changing quickly and all organizations must be adaptive to survive. The business world is really part of a complex adaptive system in which you cannot predict the future or control developments in a highly precise way. The key to survival and leadership is being able to adapt responsively as changes happen. In the past, successful business leaders played by the rules, followed best practices, developed models and engaged in reengineering based on the business situation and issue. The goal was to continuously and incrementally improve on those things their businesses were already doing. However, this has all changed. The world is changing so fast with advancements in technology in a volatile world that this approach no longer works. Successful leaders must have clear vision, objectives, operating guiding principles and a willingness to challenge the way things have been done in the past, i.e., status quo. Examples from the technology industry and from relatively large diversified companies show that successful firms adapt well to significant change. Yet, many business leaders recognize that they have to create more adaptive organizations to respond to change. This awareness is just the first step because many managers, executives and business professionals feel their organizations are not very good at dealing with today’s rapid changes. For any company to succeed, it must learn to adapt. (Fulmer, 2000) The ability of some companies to adapt is demonstrated by the fact that many have been leaders in their industries for years. Examples from the oil, aerospace and industrial equipment industries and from relatively large diversified companies show that successful firms adapt well to significant change. For example, ExxonMobil, Chevron and Royal Dutch Shell have led the world's petroleum industry for over a century. Boeing and European Airbus have dominated the commercial aerospace industry. Caterpillar and John Deere have dominated the construction, farming and earth moving equipment industry. (Grant, 2013) Given today’s chaos, confusion and uncertainty, many executives and organizations are afraid to act and are not sure what to do. They tend to fear the risks of changes and a new situation, instead of being focused on its potential outcome business results and rewards. Executives often want to undergo extensive planning with detailed analysis including models and simulations to determine situational responses, but long-term planning is increasingly difficult in a rapidly changing environment and world. While some planning is still necessary, we need to be able to respond to change and adapt. In this new business environment, the first step is to see the world as it really is and recognize what is happening in order to adapt. Develop the foundations of an adaptive organization based on three concepts similar to the sides of a triangle: landscapes, learning and leadership. In other words, provide leadership in a learning organization to adapt the organization to its landscape more effectively. Today, the business environment is like a rugged mountain landscape, which evokes many new forms that must then compete to move up the peaks usually through rough and rugged terrains. This competition can result in many new types of organizations offering different types of products and services. (Fulmer, 2000) To create an adaptive culture in any organization, facilitate individual learning by encouraging people to keep learning and to experiment, and by hiring smart people. Ask, challenge and encourage employees to share what they have learned and to apply their new knowledge in projects, assignments and mentoring others. The present mountainous rugged landscape requires strategic planning, however, the planning process must change because the traditional planning takes too much time and depends too much on future models in a volatile environment that works against predictability and probability. Think of strategic planning as a process of developing a “consistent pattern of decisions and actions” to increase the chances of achieving goals. Use strategic planning to help people understand the current situation and to identify ways to prepare for the future. Planning can facilitate adaptive behavior if you emphasize critical thinking. Assess what your organization needs to do to fit its environment more effectively now and in the future. Engage in active observation and try to understand both competitive behavior and key customer values. Push for faster and rapid improvements based on reducing costs, improving quality, and enhancing creativity and innovation (ideas). Given adaptive systems’ uncertainty, allow space for creativity and learning in organizations. Keep goals simple – incorporate key company values and make sure everyone understands the objectives. Structure the organization for adaptation. Be able to “operate at the leading edge” as the organizing principle. Decentralize, increase the span of control at every level, use temporary structures as much as possible, develop powerful information systems and remember that the structure will continually evolve and change. (Fulmer, 2000) For example, is education a complex adaptive system? Most people think Boeing is associated more with airplanes more than education, but in reality it turns out that Boeing’s educational portfolio and resources is massive. Millions of hours each year of course delivery instruction to approximately 170,000 employees across 45 countries! This makes Boeing a university too! Boeing leadership asks "Why is it, after so much is being invested in STEM (science, technology, engineering and mathematics) education, research and practice, that we still have problems finding qualified people to work in STEM disciples? "The educational system that produces the critical talent for the United States’ future security and prosperity is complex …It is composed of systems nested within subsystems, each operating on multiple temporal scales where observable causality is often hidden… Changes to this system emerge through evolutionary processes and are encumbered by complex physical, behavioral, and social phenomena as well as competing interests. Faced with overwhelming complexity in the learning ecosystem (including shifting economic, political, and business environments), we tend to focus primarily on issues that are relevant to the cultural boundaries within which we operate…" " behaviors are analyzed through the lens of complex adaptive systems to better conceptualize the current educational ecosystem. Therefore, we plan on identifying methods to model the larger system. A deep understanding of this structure (exponential complexity encountered as knowledge is distributed through the organization) is required in order to transcend subcultural boundaries and meld a unified framework. From this might emerge a fresh composite that values different cultural and situational perspectives". Today, there is not a labor shortage but a skills shortage. Skills are needed to fuel creativity, innovation and ideas. If we look at some of the key concepts of a complex adaptive system including emergence, self-similarity and self-organization it doesn't sound like the usual stuff for university or does it? Is education something to be implemented or is it something that just happens? Or is it a complex adaptive system that is needed to support environments where learning by doing takes place and where engagement happens inside and outside the classroom? (Talbert, 2011) References Fulmer, William E. (2000). Shaping the Adaptive Organization: Landscapes, Learning and Leadership in Volatile Times. New York City: AMACOM (American Management Association). Grant, Robert M. (2013). Contemporary Strategy Analysis (8th ed.). The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, United Kingdom: John Wiley & Sons Ltd. Obolensky, Nick (2010). Complex Adaptive Leadership: Embracing Paradox and Uncertainty. Farnham (Surrey), England: Gower Publishing Limited. Talbert, Robert (2011). Education as a complex adaptive system? Retrieved http://chronicle.com/blognetwork/castingoutnines/2011/09/27/education-as-a-complex- adaptive-system/

A633.2.3.RB - Butterfly Effect_RutbellGreg

Based on this week's reading, reflect on complexity science and theory in organizations and the butterfly effect (p.66). Identify 2 examples where “small changes yield large results” in your organization. What are the implication of complexity theory for you and your organization and how can you use this to drive improvements. According to Nick Obolensky, the butterfly effect is very important inside complex organizations (many of which thrive on chaos theory) because small incremental changes can yield large results. The butterfly effect may seem to be an unplanned behavior and action, it can be demonstrated by simple systems. For example, a ball placed at the top of a hill could roll into any surrounding lower valley depending on minor differences in its original position. Other variables such as weather conditions including wind, rocks, holes, etc. play into effect too. This is a science physics example that demonstrates that a very small difference in the original state of a physical system can make a big difference to the state at a later time. (Obolensky, 2010) In my present Industrial Engineer position at Boeing Commercial Airplanes 737 Program, I am responsible for process and methods improvements for lean manufacturing including cost reduction, reducing cycle time, improvements, etc. I meet with manufacturing Employee Involvement Teams (EIT) which are self-directed and high-performance teams made up of first line supervisors, team leaders, mechanics, facilitators and leadership who build the airplane. We generate and review ideas of doing things differently to improve the build assembly process and drive change. We usually hear the phrase "that's a great idea" during our coordination team meetings when discussing reviewing new ideas and ways of building the airplane. Unfortunately, we sometimes hear the phrases "we have always done it this way", "that's a stupid idea and won't work" and "we looked at doing it this way before and it didn't work". What are these phrases? They are fallacies and paradigms (a way of looking at an idea and the thought thinking analysis process behind it). There are many great mechanics who are legends at building airplanes but unfortunately for some their wealth and breadth of knowledge, skills and experience can work against them. And unfortunately, I need to say that sometimes I fall into this category too. Why? Sometimes experience can work against you. (Barker, 1993) There are always several doubters and naysayers on the team. What do I do to try and motivate them because they are not fully in agreement or alignment with my or the teams thoughts and ideas on continuous improvement? How do I try and convince (persuade and motivate) them to take action? I use storytelling with a real world Boeing example. For example, I select another Boeing program such as the 777 where they have implemented the idea and use it as a benchmark. And if possible, we go directly to the floor assembly where the work is being done to discuss and review. Or I pick one of Boeing's competitors such European Airbus and one of their programs or another industry such as BMW, Toyota or Honda and use it as an example. I also emphasize that they the mechanics are the subject matter experts (SME's), process owners and are counting on them for their knowledge, expertise and feedback. I am there for technical support and to provide them with the tools to do their jobs. I like to challenge them with "What if..." "Just imagine..." "Just think..." if we could implement the idea on the final assembly line here? What would be the business results? Things would be better productivity, quality, ergonomics and safety. This approach is successful because it engages, empowers and challenges the workforce. The best and most exciting thing about this process is that once a mechanic sees his idea being reviewed and implemented he/she takes ownership and pride in it which in turn enhances attitude and morale. Ownership includes responsibility, accountability and authority. How can this process be improved? Sometimes I need more persistence, patience and focus in trying out a new idea and also in implementation as it is not always successful the first time. Sometimes it takes two or three rounds to implement an idea. Continuous improvement (new ideas) states that there is always a better way of doing something. If you can't do it better, there is someone, somewhere in the world who can and sometimes for lower cost too. Cases in point. Here is an example. What did Toyota and other car manufacturers do to GM, Ford and Chrysler in the 1970's? Another example. Airbus (European consortium) was small and not well known in the 1970's, however, caught up with Boeing and now both companies have an equal share of the global commercial market including the best rivalry competitors in history. You have to be willing change including trying new ideas. The hard part is removing the old paradigms and replacing them with new ones! How do you do this? Be open to change and new ideas. It's all in your attitude and approach to business and ideas. The commercial aerospace industry is very complex and the risks are great. A huge investment is required for land, labor, raw materials, tooling, design and risk sharing business partners. Some raw materials, for example, titanium, is available only in Russia. Designing a new airplane can cost billions of dollars and the break-even point could be years away. The world and global economy are unstable. A major event such as Sept 11 can trigger an industry downfall. Foreign governments can protect their interests such as European Airbus (consortium of England, France, Germany and Spain). Success and failure can come overnight. In my current thinking, what is most important to me? What is most important to my manager and company as an IE and EIT facilitator? I have two important goals and objectives in my position, roles and responsibilities: 1. provide value to my company 2. servant leadership and help others. I was hired and am paid for my knowledge, skills, abilities, creativity and innovation to enhance the 737 Program Final Assembly to develop, implement and improve systems, processes, methods and improvements. The business result of this is to build the world's most advanced manufacturing, assembly and production system. The 737 Program is regarded in the aerospace industry as the world's most advanced and incredible assembly line. In addition, I am responsible to create a culture of teaming and being a role model example to my peers and the workforce. I am also a servant leader and help others at work regardless of title and position. My philosophy of life (and business) is that we are here to serve others. Servant leadership is both a leadership philosophy and set of leadership practices. According to Robert Greenleaf in "The Servant Leader" "The servant-leader is servant first. It begins with the natural feeling that one wants to serve, to serve first. Then conscious choice brings one to aspire to lead" (Greenleaf, 2002). Robert Greenleaf recognized that organizations as well as individuals could be servant-leaders. Indeed, he had great faith that servant-leader organizations could change the world. This is my thesis: I help everyone at work who asks for my help and assistance regardless of title and position. (Greenleaf, 2002) There are two big results of my efforts (small changes yield large results). The first is designing, building and implementing a production system that supports production, quality, cost and schedule. The second is culture. Collaboration working together to achieve goals. Examples of culture include: vision, guiding operating principles, values, teamwork, relationships and communication. Together, we are creating the future of flight and commercial aviation. References Barker, Joel A. (1993). Paradigms: Business of Discovering the Future. New York City: HarperCollins. Denning, Stephen (2011). The Leader's Guide to Storytelling - Mastering The Art and Discipline of Business Narrative. San Francisco, CA: Jossey-Bass (John Wiley & Sons, Inc.). Greenleaf, Robert K. (2002). Servant Leadership - A Journey into the Nature of Legitimate Power & Greatness. Mahwah, New Jersey: Paulist Press. Obolensky, Nick (2010). Complex Adaptive Leadership: Embracing Paradox and Uncertainty. Farnham (Surrey), England: Gower Publishing Limited.

A633.1.2.RB - Leadership Gap

Chapter 1 of the Obolensky text begins with a reflective exercise. Create a reflection blog that responds to the questions asked in this exercise. Has your own attitude to leaders changed in your life, and if so how? If we take as a starting point the attitude to those in authority/leaders as held by your grandparents, and then look at those attitudes held by your parents, and then by you, and then by the younger generation, is there a changing trend? If so, what is it? Why do you think that this has occurred? Additionally, while we live in a world with more information about leadership and leadership practices why is it that we have an apparent gap in the quality of our leaders and how do you think we can close this gap? The old way of leading by command, control, direction and charisma from superior knowledge and personality is not really applicable anymore because increasingly better educated followers know faster than leaders what is happening and often what needs to be done. The harder leaders try to keep up, the less credibility they get. And in today's business environment, if an organization has employees lacking the knowledge, skills and abilities, it will not last long, "even if Moses himself were in charge." For example, I worked for McDonnell Douglas (former aerospace giant) for 10 years and unfortunately, the downfall and failure was it was lead by command, control and did not have a supportive culture (along with a weak and reactive strategy). The culture was weak and there were many "silos" of so called leaders trying to create their own empires "competing" against other silos and not "working together." In addition, there were labor and union issues. MDC needed to get out of the Dark Ages as to how employees were managed. They were stuck in the "command-and-control era" which was typical of US factory management when supervisors gave orders on high and workers "checked their minds at the gate." After the Boeing merger in 1997, in an effort to shake up the hierachical company culture, Boeing leadership benchmarked successful organizations including Toyota, Nissan, Honda and John Deere. This encouraged employees to take ownership of their jobs and also the company adopted a team-based management model. The secret to success: it all comes down to culture, people and teams. (Obolensky, 2010) Traditional approaches to strategy, for example, standard sequence process flow models, frameworks and diagrams include several assumptions including a stable world and little if no change (all things held constant). The goal is to develop and build a sustained competitive advantage by achieving dominance in either production or services, a market niche, or specific capabilities and resources in processes and methods. However, globalization, world events, technology and the speed of change have combined and integrated a "synergy" and created turbulence in the business environment. Today, sustained competitive advantage comes from four organizational capabilities that promote rapid adaptation and include the ability (with speed) to: 1. read and act on signals of change, 2. experiment rapidly and frequently with products, services, business models and strategies, 3. manage complex and interconnected systems of multiple stakeholders, 4. motivate employees and partners. This sparks creativity, innovation, ideas and enhanced products and services with processes. (Reeves and Deimler, 2011) So many of the world’s problems, and the issues that businesses and people face every day, can seem intractable and unsolvable. Leadership consultants Ronald Heifetz, Alexander Grashow and Marty Linsky propose a new way to lead the charge to change: “Adaptive leadership” calls for shedding outdated approaches and embracing new skills and attitudes to guide organizations in the 21st century. Adaptive leadership combines established ways of managing with new skills and perspectives for dealing with unprecedented challenges. Adaptive leaders: 1. think experimentally to enable discovery and corrective action, 2. harness conflict as an engine of creativity and innovation, 3. respect the organization’s cultural DNA as they challenge the culture to innovate. (Heifetz, Grashow and Linsky, 2009) For example, I am a big sports enthusiast and my sports heroes and teams (organizations) in my life are: 1. the Dallas Cowboys including the former legendary coach Tom Landry and quarterbacks Roger Staubach "Captain America" and Troy Aikman, 2. John Wooden "The Wizard of Westwood" the former legendary college basketball coach at Indiana State University and UCLA and 3. Larry Bird "Mr Basketball" from Indiana State University and the Boston Celtics. What makes these leaders different from sports figures today? The led by example, role models, action, character, integrity, smart, intelligent, and fun passion of the game. Unfortunately, today, so much of sports is wrapped up in money, publicity, ego and performance enhancing drugs. I had the opportunity to hear John Wooden speak several times in Southern California. Wooden created the "Pyramid of Success." In 2009, Wooden was named The Sporting News "Greatest Coach of All Time." (Fellowship of Christian Athletes, 2010) Why is it that we have an apparent gap in the quality of our leaders and how do I think we can close the gap? Unfortunately, there has been an explosion in ethics scandals cases including leadership. For example, Enron, WorldCom etc. Unfortunately, Boeing has also had several ethics cases. Ethics should be embedded in culture and leadership should "talk the talk" and "walk the talk." Ethics courses are also included in many MBA and university college curriculum today. Organizations also have ethics training and some have "ethics codes" in which employees are required to sign. Joel Barker, futurist, author and lecturer, states that the role of leadership is to find, recognize, and secure the future. He states that paradigms (ways of thinking) and mental models, patterns and examples effect the quality of leadership. This includes strategic leadership, innovation and vision. For example, Watching for the Future The Future is where our greatest leverage is outlines how the Swiss, watch makers supreme, did not anticipate the demise of mainsprings and such for the battery and electronics as espoused by the Japanese. This is Paradigm Shift. The irony is that the Swiss were the ones who introduced electronic quartz and let it go. Hopefully we learn from the past, the present is too slim in which to act, it is with the future we must prepare. We all know the rules for success in our business or professions, yet we also know that these rules—paradigms—can change at any time. Managers must allow and be willing to hear from their employees who step outside the box to solve a problem. Managers must facilitate and encourage cross talk means people of diverse backgrounds from diverse opinions sit together and talk. Especially people from different paradigm can be particularly good at helping get past another person's paradigm. By listening to all those screwy ideas, managers gain a special leverage for innovation because many screwy ideas may produce one good idea. Everything in 21st century will be hyphenated. Always be receptive, no one says you have to adopt the idea. Put idea 66 together with 48 and 3 and bingo a hyphenated idea. Managers are in a unique position because they hear all the ideas and can make connections. (Barker, 1993) References Barker, Joel A. (1993). Paradigms: Business of Discovering the Future. New York City: HarperCollins. Fellowship of Christian Athletes (2010). The Greatest Coach Ever: Timeless Wisdom and Insights from John Wooden. Escondido, CA: Christianaudio. Heifetz, Ronald, Grashow, Alexander and Linsky, Marty (2009). The Practice of Adaptive Leadership: Tools and Tactics for Changing Your Organization and the World. Boston: Harvard Business Review Press. Obolensky, Nick (2010). Complex Adaptive Leadership: Embracing Paradox and Uncertainty. Farnham (Surrey), England: Gower Publishing Limited. Reeves, Martin and Deimler, Mike (2011). Adaptability: The New Competitive Advantage. Harvard Business Review, Retrieved from: http://web.a.ebscohost.com.ezproxy.db.erau.edu/ehost/detail/detail?vid=9&sid=84bcad46-a179-4bc4-9295-cf6f3a0b6d9d@sessionmgr4001&hid=4204&bdata=JnNpdGU9ZWhvc3QtbG12zQ