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& Change
 Managing Complexity




Michael Cardus - www.create-learning.com
Quick fixes to organizational problems:

•“New Age…the hierarchy will topple with this new e-
generation”
•Everyone acts “autonomously” doing what is right and
everyone cooperates, without being clear of who is accountable
or for what.
•The walk about and everything will work out
•Be like the Japanese
•Be excellent; go from good to great; all in under a minute;
while looking for your cheese; on your iceberg.
•“We need more leaders and less managers”

We can all agree that it is good to be innovative, creative, and successful.
The question is how to create the conditions to make it possible to be so.

                           Michael Cardus - www.create-learning.com
Deming to the Editor of Time Magazine 1981;

Dear Sir,
Your article about Japan in TIME for 30 March 1981 is excellent, but the paragraph
concerning my work is ridiculous and can do a lot of harm to American industry at
the very time when they need guidance.

Dr. Deming did not just give a lecture in 1950. He gave 35 lectures in the summer of
1950 to engineers and to top management. Six months later he was there again, and
six months after that yet again. He has made 19 trips to Japan.

One trouble with American industry today is that top management supposes that
one lecture or one day will do it.

“Come, spend a day with us, and do for us what you did for Japan, that we too may
be saved.”

It is not so simple. Few people in top management in America understand their
responsibilities and know that they must serve a life term on quality and productivity
from now on, under competent leadership. (Emphasis added)

Found in The W. Edwards Deming Institute 3rd Quarter 2005 Newsletter
                              Michael Cardus - www.create-learning.com
Deming and Ackoff’s systems ideas enable us
to manage what we cannot control.
Organizations today are increasingly complex;
they are beyond powers of traditional
hierarchical management. Learning to
manage for improvement of the system has
become urgent in all fields. It pays great
benefits.

Systems thinking enables continual
improvement, something that old-style
management cannot attain. It improves
businesses, hospitals, schools, nations,
families–even ourselves–in this rapidly
changing, increasingly complex and
dangerous world.

Amazingly, systems thinking helps us manage
complexity and at the same time improve the
quality of life for everyone involved.
http://www.managementwisdom.com/syth2.html
                                             Michael Cardus - www.create-learning.com
The application of overly simplified solutions
adds cost in 2 ways:

•First, it leads to continual reorganizations and
changes.
•Second, the repeated changes attack the
morale of your people and increases their
change resistance.




      Michael Cardus - www.create-learning.com
Complexity may be identified
                                 in terms of the number of
                                 variables that have to be dealt
                                 with in a given time in a
                                 situation, the clarity and
                                 precision with which they can
                                 be identified, and their rate of
                                 change. (Jaques 1998)




Michael Cardus - www.create-learning.com
Goal
                                                     QQTR


                                                             ty
                                                          exi
                                                       pl
                                                     om
                                                 C
                                            t of
                                          gh
                                        ei
                                    W
                                 lt
                               Fe
                           &
                       n
Where               Spa
you are         e
            m
          Ti
 now
                Michael Cardus - www.create-learning.com
Goal
                                                   QQTR
                                  n
                               spa ter
                             e- ea ter
                          tim e gr rea .
                        he Th e g cles                    xity
                     r t ct. Th ta                      le
                 n ge je … bs                        m
                                                       p
              lo pro uity n o                     C
                                                    o
           he he big ow
          T t                                t of
             f am nkn
            o e u                        ei
                                           gh
               th the               lt
                                       W
                                  Fe
                                      &
Where                            an
you are                        Sp
                           e
                       m
 now                 Ti
                        Michael Cardus - www.create-learning.com
We all think about complexity
   and time differently.




      Michael Cardus - www.create-learning.com
How big is your bucket (how complex is the project)?
What is the time-span of the longest goal to be completed?
Who is BEST to fill the bucket (who has the requisite CAC)?
How do you know?




                             Success will only
                             move as high as
                               the ability to
                            handle complexity
                             of the individual
                              managing the
                                work / staff.



                    Michael Cardus - www.create-learning.com
Michael Cardus - www.create-learning.com
Complexity Based Upon Time-Span Management



2 to 5 Years



1 to 2 Years



3 Months to 1 Year



1 day to 3 Months
                     Michael Cardus - www.create-learning.com
Michael Cardus - www.create-learning.com
Michael Cardus - www.create-learning.com
Michael Cardus - www.create-learning.com
Michael Cardus - www.create-learning.com
Images in order of appearance:
http://www.flickr.com/photos/87913776@N00/5129625865/
http://create-learning.com/blog/manager-training/your-quick-fixes-are-exacerbating-
http://www.flickr.com/photos/kwl/4743024076/
http://en.wikipedia.org/wiki/Edwards_Deming
http://create-learning.com/blog/manager-training/complexity-and-achieving-goals-at

http://www.flickr.com/photos/davidw/2063575447
http://create-learning.com/blog/team-building/5-steps-to-determine-
competency-in-work
http://create-learning.com/blog/manager-training/9-indicators-that-a-
manager-is-not-able-to-handle-the-complexity-of-the-work-some-ideas-
of-what-to-do-about-it
http://create-learning.com/blog/manager-training/the-difference-is-the-
point-of-interaction
http://www.amazon.com/Toyota-Kata-Managing-Improvement-
Adaptiveness/dp/0071635238




                        Michael Cardus - www.create-learning.com

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Managing Complexity & Change

  • 1. & Change Managing Complexity Michael Cardus - www.create-learning.com
  • 2. Quick fixes to organizational problems: •“New Age…the hierarchy will topple with this new e- generation” •Everyone acts “autonomously” doing what is right and everyone cooperates, without being clear of who is accountable or for what. •The walk about and everything will work out •Be like the Japanese •Be excellent; go from good to great; all in under a minute; while looking for your cheese; on your iceberg. •“We need more leaders and less managers” We can all agree that it is good to be innovative, creative, and successful. The question is how to create the conditions to make it possible to be so. Michael Cardus - www.create-learning.com
  • 3. Deming to the Editor of Time Magazine 1981; Dear Sir, Your article about Japan in TIME for 30 March 1981 is excellent, but the paragraph concerning my work is ridiculous and can do a lot of harm to American industry at the very time when they need guidance. Dr. Deming did not just give a lecture in 1950. He gave 35 lectures in the summer of 1950 to engineers and to top management. Six months later he was there again, and six months after that yet again. He has made 19 trips to Japan. One trouble with American industry today is that top management supposes that one lecture or one day will do it. “Come, spend a day with us, and do for us what you did for Japan, that we too may be saved.” It is not so simple. Few people in top management in America understand their responsibilities and know that they must serve a life term on quality and productivity from now on, under competent leadership. (Emphasis added) Found in The W. Edwards Deming Institute 3rd Quarter 2005 Newsletter Michael Cardus - www.create-learning.com
  • 4. Deming and Ackoff’s systems ideas enable us to manage what we cannot control. Organizations today are increasingly complex; they are beyond powers of traditional hierarchical management. Learning to manage for improvement of the system has become urgent in all fields. It pays great benefits. Systems thinking enables continual improvement, something that old-style management cannot attain. It improves businesses, hospitals, schools, nations, families–even ourselves–in this rapidly changing, increasingly complex and dangerous world. Amazingly, systems thinking helps us manage complexity and at the same time improve the quality of life for everyone involved. http://www.managementwisdom.com/syth2.html Michael Cardus - www.create-learning.com
  • 5. The application of overly simplified solutions adds cost in 2 ways: •First, it leads to continual reorganizations and changes. •Second, the repeated changes attack the morale of your people and increases their change resistance. Michael Cardus - www.create-learning.com
  • 6. Complexity may be identified in terms of the number of variables that have to be dealt with in a given time in a situation, the clarity and precision with which they can be identified, and their rate of change. (Jaques 1998) Michael Cardus - www.create-learning.com
  • 7. Goal QQTR ty exi pl om C t of gh ei W lt Fe & n Where Spa you are e m Ti now Michael Cardus - www.create-learning.com
  • 8. Goal QQTR n spa ter e- ea ter tim e gr rea . he Th e g cles xity r t ct. Th ta le n ge je … bs m p lo pro uity n o C o he he big ow T t t of f am nkn o e u ei gh th the lt W Fe & Where an you are Sp e m now Ti Michael Cardus - www.create-learning.com
  • 9. We all think about complexity and time differently. Michael Cardus - www.create-learning.com
  • 10. How big is your bucket (how complex is the project)? What is the time-span of the longest goal to be completed? Who is BEST to fill the bucket (who has the requisite CAC)? How do you know? Success will only move as high as the ability to handle complexity of the individual managing the work / staff. Michael Cardus - www.create-learning.com
  • 11. Michael Cardus - www.create-learning.com
  • 12. Complexity Based Upon Time-Span Management 2 to 5 Years 1 to 2 Years 3 Months to 1 Year 1 day to 3 Months Michael Cardus - www.create-learning.com
  • 13. Michael Cardus - www.create-learning.com
  • 14. Michael Cardus - www.create-learning.com
  • 15. Michael Cardus - www.create-learning.com
  • 16. Michael Cardus - www.create-learning.com
  • 17. Images in order of appearance: http://www.flickr.com/photos/87913776@N00/5129625865/ http://create-learning.com/blog/manager-training/your-quick-fixes-are-exacerbating- http://www.flickr.com/photos/kwl/4743024076/ http://en.wikipedia.org/wiki/Edwards_Deming http://create-learning.com/blog/manager-training/complexity-and-achieving-goals-at http://www.flickr.com/photos/davidw/2063575447 http://create-learning.com/blog/team-building/5-steps-to-determine- competency-in-work http://create-learning.com/blog/manager-training/9-indicators-that-a- manager-is-not-able-to-handle-the-complexity-of-the-work-some-ideas- of-what-to-do-about-it http://create-learning.com/blog/manager-training/the-difference-is-the- point-of-interaction http://www.amazon.com/Toyota-Kata-Managing-Improvement- Adaptiveness/dp/0071635238 Michael Cardus - www.create-learning.com