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A free e-newsletter spotlighting systemic thinking and
innovations
in leadership, management, and organizational development.
Please
forward to your colleagues.

June 19, 2002 Issue 26 |

“As
little as one-third to one-half of
most
companies’ stock-market value
is accounted
for these days by hard assets such
as property,
plant, and equipment. The growing
share
of measurement lies in intellectual
or ‘invisible’
attributes not traditionally viewed
as assets
at all—such as customer
satisfaction, internal
business processes, an
organization’s
ability to learn and grow, and the
effectiveness
of corporate culture. It is within
this
realm of invisible factors that
spirituality
in business lives.”
—Brenda Rarey

“All
of the great leaders have had one
characteristic
in common: it was the willingness to
confront
unequivocally the major anxiety of
their
people in their time. This, and not
much
else, is the essence of
leadership.”
—John Kenneth Galbraith
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Leading
in a Complex World: Systems Thinking
in
Action®
September
30–October 2, 2002
UPDATE!
Nick
Pudar, director of GM Strategic
Initiatives,
is an additional keynote.
In many real-world business
settings, the
toughest leadership calls involve
decisions
that allocate significant resources
when
outcomes are highly uncertain. A
flawed
decision that moves hundreds of
millions
of dollars into a doomed venture can
have
devastating results, while a
systemic and
well-reasoned assessment of a new
project’s
positive potential can vault a
company into
an industry-starring role. Backed by
a confidence
based on an understanding of system
dynamics,
systems thinking tools, and options
theory
principles, senior decision-makers
at General
Motors have made the right tough
calls and
taken industry-leading steps in
auto-leasing,
vehicle communications, and
entertainment
systems. More cutting-edge
innovations are
in the works. With reference to a
questioning
process based on Russell Ackoff's
concept
of “idealized design,”
Nick
will speak candidly about how
leaders reach
their decisions and give us an
insider’s
look at actual examples of
leadership and
strategic change at General Motors.
Nick
Pudar, director of GM Strategic
Initiatives,
has been with General Motors since
1981.
He manages an internal consulting
team that
works on GM’s enterprise
strategic
issues. Nick holds a B.S. in
mechanical
engineering from General Motors
Institute
and an M.S. in management from
Massachusetts
Institute of Technology.
Get
all the latest conference details.
See you in beautiful San Diego! |
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Books
and Resources on Organizational
Change and
Learning
Organizing for Learning:
Strategies for Knowledge Creation and Enduring
Change
by Daniel H. Kim
New technologies, global markets, and the
growing importance of knowledge assets over
capital are forcing us to rethink what has
long been taken as fact. The most important
challenge for organizations is to develop
the capacity for continuous learning—that
is, to go beyond managing existing knowledge
to creating new knowledge. Accomplishing
this requires that we not only think differently,
but also frame problems in whole new ways.
This collection of lead articles from The
Systems Thinker® newsletter opens
a new dimension of insight into dilemmas
that confound many organizations.
Order #OL017r, $24.95
Order

“Emergent
Learning in Action: The After Action
Review”
by Charles S. Parry and Marilyn J.
Darling
This
article describes one of the best
examples
of emergent learning—the
“After
Action Review.” An iterative
practice
of reflecting, planning, and acting
around
a central performance challenge, the
AAR
helps to evolve a team’s
implicit
and explicit knowledge into new
practices
and standards of excellence.
Developed 20
years ago by U.S. Army leaders as a
way
to use on-the-ground action as the
crucible
for learning, today it has been
adopted
by many companies, such as Harley
Davidson
and Power Construction, seeking to
develop
ongoing learning practices.
Order #120801, $6.00
Order

Organizational
Learning at Work: Embracing the
Challenges
of the New Workplace (Pegasus
Communications)
The practical wisdom evident in this
volume
is a powerful reminder that the
success
of an organization's journey is
determined
as much by the way pivotal obstacles
are
traversed as by the vision of the
final
destination. These distinguished
authors
use the potent approach of systems
thinking
and organizational learning to
tackle prevalent
organizational challenges, pointing
the
way to specific steps that can
effectively
move people toward their goals.
Order
#OL010, $24.95
See
more resources on organizational learning.
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Systems
Thinking 101: New Approaches to
Organizational
Challenges
July 15, 2002, Waltham, MA
Enjoy
a midsummer day’s dream in Boston—a
workshop with Ginny Wiley, systems thinking
educator, organizational consultant, and
president of Pegasus Communications. Find
out why systems thinking—and not Puck’s
supernatural power —is an essential
tool for organizational success. Systems
thinking helps us understand the causes
that underlie persistent problems, recognize
the highest leverage points for systemic
intervention, formulate effective short-
and long-term strategic plans, and make
decisions with greater clarity and foresight.
Participate in this hands-on session and
familiarize yourself with some of the powerful
tools that systems thinking has to offer.
To learn more or to register, please call
1-781-398-9700, or go to our
web site and complete and fax the registration
form to 1-781-894-7175.
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FACE
TO FACE
Delivering
Energy with Excellence at Colonial Pipeline: An Interview with
Charles
Alday |
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FROM
THE FIELD
Systems
Tools Spur Student Interest |
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FROM
THE RESOURCE SHELF
Achieving Innovation by Way of Chaos |
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FACE
TO FACE
Delivering
Energy with Excellence at Colonial Pipeline: An Interview with
Charles
Alday
by Kali Saposnick
Each
year, companies from around the globe send their staff to the
Systems
Thinking in Action conference hosted by Pegasus
Communications.
In this article, veteran attendee Charles Alday of Colonial
Pipeline—operator
of the world’s largest refined petroleum products
pipeline—shares
how he has developed a systemic approach to improving his
company’s
operational processes.
About six years ago, Colonial Pipeline had a defining
moment: One
million gallons of diesel fuel spilled from a ruptured
pipeline
into Reedy River in South Carolina, damaging the
company’s
reputation with both the public and regulators. Forced to
scrutinize
how they conducted business and maintained their pipeline,
top management
initiated changes in the executive leadership and in
operational
procedures. Around that time, Charles Alday became part of a
core
group of change agents charged with helping the company
implement
its philosophy of putting safety first and achieving
spill-free,
error-free operations.
As operational
excellence manager, Alday works with individuals and teams
to create
a seamless energy delivery system. For example, to develop
administrative
policies to guide the performance of daily tasks, Charles
and his
group gathered input from all operations-related functions
at the
grassroots level. To help a design team map out and
integrate processes
involved in automating operations functions, he invited a
consultant
to conduct systems thinking workshops. In addition, Charles
manages
the “Lessons Learned” program, a database where
error-related
feedback is collected and disseminated. “We’ve
significantly
reduced errors and spills by providing procedures for
tasks,”
Alday explains. “People report avoiding mistakes and
near
misses by becoming more intentional about their thoughts and
actions.”
Although Charles feels the company still faces many
challenges,
he believes that, since change efforts were initiated,
“Colonial’s
workforce has not only become more professional as they
master tools
to help improve their performance, but the operations team
has become
a more integrated organization that identifies and solves
problems
holistically.”
Charles Alday and a Colonial Pipeline team will be attending
this
year’s Pegasus conference, Leading in a Complex World:
Systems Thinking in Action. Learn more about the conference.
See Pegasus Highlights in the right column for more
information
about books and resources on organizational change and
learning. |
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FROM
THE FIELD
Systems
Tools Spur Student Interest
How does the overpopulation of Canada geese affect our environment?
What is the effect of cloning on biodiversity? These and other provocative
questions guided the 85 eighth-grade science projects at this year's
Carlisle, MA, middle-school EcoFair. Based on an innovative integration
of systems thinking and system dynamic tools into the school's curriculum,
the students' presentations highlighted their understanding of the
impact that people's actions and public-policy decisions can have
on the environment.
"It's
discovery learning," explains science teacher Jim
Trierweiler,
who developed an introductory physics and chemistry program
based
on a learner-centered approach to science. In his classroom,
teams
of four collaborate to explore why, for instance, a boomerang
returns
to its thrower. "The idea is to provide students with a
question
so challenging that even the highest achiever doesn't have a
clue.
To figure it out, team members have to talk to one
another,"
Trierweiler explains. As they struggle to draw behavior over
time
graphs of the air pressure above and below the wing as the
boomerang
moves through its flight pattern, they'll eventually ask Jim
for an
explanation. "And that's when they'll listen to me!"
he
says. "This method enables them to understand key concepts
such
as Bernoulli's effect, which explains how a boomerang works,
at a
deeper level."
To prepare for this year's EcoFair, rather than structure
their projects
around research papers, students were required to use systems
tools
to conceptualize an environmental problem. For instance,
Nicole Spencer
mapped out a stock and flow diagram of how wolves and hunters
affect
the caribou population. "Before I did this project, I knew
that
wolves helped keep the caribou healthy, but I didn't know that
when
hunters' killed the wolves, it had a negative impact on the
caribou."
Michael Luby, who worked on "Fusion's Effect on Global
Warming,"
says that "using causal loop and stock and flow diagrams
shows
me how interrelated everything about the environment is.
Without the
diagrams, I would just write a good report, but this way I
really
understand." Other student projects included "What's
the
FDA Trying to Feed Us? Stop Genetically Engineered Foods,"
"Humans'
Effect on the California Condor Population," "How the
Gulf
War Affected the Environment," and "Nuclear Fusion Is
a
Good Alternative to Fossil Fuel."
Crucial
to the EcoFair's success were the middle school's systems
mentors—science
curriculum coordinator, Alan Ticotsky, and eighth-grade math
teacher,
Rob Quaden. Supported by a grant from the Waters Foundation,
Alan
works full-time across disciplines with teachers and students
to find
ways to apply systems tools in the classroom. His goal is to
make
sure that "every Carlisle middle-school student gains, at
the
very least, an enthusiastic appreciation of science."
Quaden
mentors students two days a week and helps them build simple
computer
simulations. "As a teacher, I'm concerned whether the kids
clearly
understand their concept for the research paper," says Rob.
"With
a diagram, I can see their thinking in a visual way and
clarify any
misconceptions.
"Based
on the EcoFair's positive reception, their efforts are clearly
paying
off. Animated discussions around the students' sophisticated
projects
(which included diagrams, summaries, pictures, and research
papers)
demonstrated that Carlisle eighth graders are gaining a deep
understanding
of their connection to the world around them.
—KS
Learn more about
causal
loop diagrams and stock
and flow diagrams. |
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FROM THE RESOURCE SHELF
Achieving
Innovation by Way of Chaos
by Kali
Saposnick
Today,
some corporate executives have begun to question traditional
ways
of directing economic activity and building business
enterprises.
According to Richard T. Pascale, Mark Millemann, and Linda
Gioja in
Surfing the Edge of Chaos: The Laws of Nature and the New Laws
of Business (Crown Business, 2000), these leaders recognize
that
organizations are living systems with enormous potential to
learn
from and adapt to their environment. To cultivate this
potential,
they are letting go of command-and-control leadership styles
and becoming
context setters—that is, creating the conditions that
will most
likely produce their desired outcomes.
Underlying these ideas are core principles of complexity
science.
Complexity science represents a radical departure from what
the authors
call “social engineering,” the long- entrenched
belief
that leaders are more knowledgeable than others and change is
predictable.
The authors contend that social engineering failed to achieve
significant
organizational transformation because it didn’t take
into account
that people cannot be engineered. Rather, leaders must give
employees
ownership of organizational initiatives and find ways to fully
utilize
their staff’s potential.
The authors offer several guidelines to help leaders translate
complexity
principles into business applications. For instance, they
claim that
companies must avoid using one strategy for too long;
otherwise, their
mechanisms for coping with change will erode. Also, to undergo
a dramatic
metamorphosis, managers must lead their staff to the edge of
chaos,
harvest conflict and instability, and allow the system to
self-organize
in new ways. According to Pascale et al, companies that follow
these
principles can significantly increase their competitive edge
in the
global marketplace.
Read the complete article online or see
The Systems Thinker®, Vol. 12, No. 7 (September 2001). |
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Copyright 2002 Pegasus Communications. LEVERAGE POINTS can
be
freely distributed in its entirety or reproduced or excerpted
for
another publication with written permission from Pegasus
Communications.
Contact permissions@pegasuscom.com.
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