D2 Thu 0845 The Leadership Challenge of …safesummit.com/.../2017/10/D2_Thu_0845_The-Leadership-Challenge-of...The Leadership Challenge of Decentralized Control Donald G. Reinertsen

No part of this presentation may be reproducedwithout the written permission of the author.

The Leadership Challenge of Decentralized Control

Donald G. ReinertsenReinertsen & Associates

600 Via Monte D’OroRedondo Beach, CA 90277 U.S.A.

(310)-373-5332Internet: [email protected]

Twitter: @dreinertsenwww.ReinertsenAssociates.com

SAFe Summit 2017San Antonio, TX

October 5, 2017

Today’s Topics

• The Intent of Decentralized Control• Creating Initiative• Maintaining Alignment• Creating Leaders

Copyright 2017, Reinertsen & Associates 2


The Intent of Decentralized Control

Tomahawk (TLAM-C)


• Highly accurate: GPS, TERCOM• Subsonic: < Mach 1• Low observability

AIM-120 AMRAAM

• Air-to-Air• Mach 4• Radar-guided


The Forecasting Challenge


A =V2 t2

Planning Horizon

ErrorDatum

Search Area

D = Vt

D = Vt

Managed Adaptation Is Vital

• Complexity is rising – more degrees of freedom.• Uncertainty is rising – higher velocity of change. • Forecasting is getting exponentially harder. • We can’t front load decisions. • We must continuously make important decisions correctly

and quickly.


Scrum

• A great technology with many of the ingredients of success.• Is its management approach enough?• At small scale, local optimization is system optimization.• At large scale, cost, benefits, and resources are distributed

in time and space. • Teams can be unaware of distributed effects and may either

lack authority or not use it.


Hybrid/Matrix Organization


GeneralManager

VP ofMarketing

VP ofEngineering

VP ofManufacturing

VP ofFinance

MarketingRepresentative

DesignEngineers

ManufacturingEngineer

Financial Analyst

Project Participants

Team Leader

Key Decision Areas Select product features Modify product features Prepare project budget Modify project budget Prepare project schedule Modify project schedule Prepare manning plan Modify manning plan Select team members Hire team members Remove team members Evaluate team member

performance Determine team member

compensation


Determine team member bonuses Authorize travel Cancel project Select development location Set layout of team work area Select key business partners Manage key business partners Select key technology partners Manage key technology partners Select outside contractors Manage outside contractors Select vendors Manage vendor contracts Select manufacturing site

Determine required level of quality for introduction

Pay for manufacturing variances

Select product processes Select engineering tools Select development methods Modify development methods Determine test procedures Determine test criteria Set reuse objectives Determine reporting

requirements Set manufacturing yield

targets Set documentation standards

There Is No Decentralization Dial


Different decisions should be optimized within different frames of reference: local, product line, sector, or enterprise.

Centralized Decentralized


• No Scale Economies• Higher Bandwidth• Duplication• Local Optimization• Knowledge of Context• Limited Resources• Fast Decisions• Less Distortion

• Scale Economies• Limited Bandwidth• Reduced Duplication• System Optimization• Omniscience• Omnipotence• Slow Decisions• Distorted Information

vs

Decentralizing Control with Decision Rules

Engineer Supervisor ProgramManager

Boeing 777 Weight Reduction Decision Authority

$300

$2,500

$600

Dollars per Pound

13Copyright 2017, Reinertsen & Associates

What We Need

14

• To thrive in an environment of high uncertainty we need to create initiative and alignment.• Initiative is acting without instructions, taking

charge. • Alignment requires staying focused on the

mission and subordinating local goals.

Copyright 2017, Reinertsen & Associates

Creating Initiative


The United States Marine Corps


CreatingInitiative

• Authority• Information• Adequate Resources• Preparation• Practice• Develop Judgment• No Punishment• Trust


Develop Judgment

• People must be trained to act on incomplete information. • The 80 percent rule.

• Risk-taking is a learned skill.• Judgment comes from study, experience, practice, and

coaching.


Boldness and Initiative• Cultivate ability to take calculated risks.• Errors of over-boldness are dealt with leniently.


Initiative, the willingness to act on one’s own judgment, is a prerequisite for boldness.

…. there must be no “zero defects” mentality. Abolishing “zero defects” means that we do not stifle boldness or initiative through threat of punishment.

—MCDP 1

A High Trust Organization

• Marines place great emphasis on trusting superiors, subordinates, and peers.

• Dependability: The certainty of proper performance of duty.

• Integrity: Nothing less than complete honesty in all dealing with subordinates, peers, and superiors is acceptable.

• Unselfishness: Looking out for the needs of subordinates before your own is the essence of leadership.

• Loyalty: Faithfulness to country, Corps, unit, seniors, subordinates, and peers. Semper Fidelis.


Maintaining Alignment


MaintainingAlignment

• Intent• Meaning• Doctrine• Socialization• Values • Cohesion• Planning• Communications


Auftragstaktik - Mission Orders

• Tell people WHY they are doing things, not what to do and how to do it.

• What end state is trying to be achieved?• What goal, larger than the battle itself, are we trying to

achieve?• Understand the Commander’s Intent at least two levels up in

the organization.• If you know WHY you are doing things, you can adapt to

changing conditions.


Marine Corps Doctrine• Fundamental and enduring beliefs. • It reduces the need for coordination.• It is different from rules and policies.


Doctrine establishes a particular way of thinking about war and a way of fighting. It also provides a philosophy for leading Marines in combat, a mandate for professionalism, and a common language. In short, it establishes the way we practice our profession. In this manner, doctrine provides the basis for harmonious actions and mutual understanding.

—MCDP 1

• Small problems quicklybecome big ones.

• Planning reduces but does not eliminate uncertainty.

• You can’t afford to size static resources for the worst case.

• Dynamic responses are very effective.

• But, response time is critical.


WildlandFirefighting

Firefighting Doctrine


• Rules and checklists focus on restricting actions that are considered to be risky.

• Doctrine teaches us how to take risk successfully.

The 10 Standard Fire Orders

The 18 Watch Out Situations

• Doctrine guides HOW we think.

Doctrine vs. Policies and Rules


Rules

Mindless Rules

Mindless Behavior

Principles

Mindfulness

Mindful Behavior

What to Do

What to doand

Why to do it

Doctrine communicates beliefs about what is important and about key causal relationships.

Developing Leaders


Marine Corps Leadership Principles1. Be technically and tactically proficient.2. Know yourself and seek self-improvement.3. Know your Marines and look out for their welfare.4. Keep your Marines informed.5. Set the example. 6. Ensure the task is understood, supervised, and accomplished.7. Train your Marines as a team.8. Make sound and timely decisions.9. Develop a sense of responsibility among your subordinates.10. Employ your command in accordance with its capabilities.11. Seek responsibility, and take responsibility for your actions.


Strong Local Leadership• Put the talent near the front lines.• Promote from within.


A centralized system theoretically needs only one competent person, the senior commander, who is the sole authority. A decentralized system requires leaders at all levels to demonstrate sound and timely judgment. Initiative becomes an essential condition of competence among commanders.

All commanders should consider professional development of theirsubordinates a principal responsibility of command.

—MCDP 1

Marine Corps 14 Leadership Traits

• Justice• Judgment• Dependability• Initiative• Decisiveness• Tact• Integrity

• Enthusiasm• Bearing• Unselfishness• Courage• Knowledge• Loyalty• Endurance


Motto of Marine Corps OCS

Copyright 2017, Reinertsen & Associates32

Lead byExample

Leading by Example

• Take care of your Marines and they will take care of the mission.

• Priorities: Mission, Marines, Self.• Leadership derives its effectiveness from actions not

words.• Seniors take responsibilities for stumbles and pass on

credit for successes.• The lowest ranks eat first.• Rank is a privilege that is earned every day.


Summary

• The goal of aligned decentralization is to produce good decisions quickly.

• To achieve this we must shift much more initiative to lower in the organization.

• This is far more complex than simply delegating authority.

• As we shift power we need specific systems that make people safe and successful when they exercise initiative.

• Reducing batch size is a perfect way to enable this.

• If you look for role models you can find them. Copyright 2017, Reinertsen & Associates 34


1991 / 1997 1997 2009

Going Further

Print OnlyPrint + Kindle

Print Only

Documents

D2 Thu 0845 The Leadership Challenge of …safesummit.com/.../2017/10/D2_Thu_0845_The-Leadership-Challenge-of...The Leadership Challenge of Decentralized Control Donald G. Reinertsen