d2 thu 0845 the leadership challenge of...
TRANSCRIPT
![Page 1: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/1.jpg)
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
![Page 2: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/2.jpg)
Today’s Topics
• The Intent of Decentralized Control• Creating Initiative• Maintaining Alignment• Creating Leaders
Copyright 2017, Reinertsen & Associates 2
![Page 3: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/3.jpg)
Copyright 2017, Reinertsen & Associates 3
The Intent of Decentralized Control
![Page 4: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/4.jpg)
Tomahawk (TLAM-C)
Copyright 2017, Reinertsen & Associates 4
• Highly accurate: GPS, TERCOM• Subsonic: < Mach 1• Low observability
![Page 5: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/5.jpg)
AIM-120 AMRAAM
• Air-to-Air• Mach 4• Radar-guided
Copyright 2017, Reinertsen & Associates 5
![Page 6: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/6.jpg)
The Forecasting Challenge
Copyright 2017, Reinertsen & Associates 6
A =V2 t2
Planning Horizon
ErrorDatum
Search Area
D = Vt
D = Vt
![Page 7: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/7.jpg)
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.
Copyright 2017, Reinertsen & Associates 7
![Page 8: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/8.jpg)
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.
Copyright 2017, Reinertsen & Associates 8
![Page 9: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/9.jpg)
Hybrid/Matrix Organization
Copyright 2017, Reinertsen & Associates 9
GeneralManager
VP ofMarketing
VP ofEngineering
VP ofManufacturing
VP ofFinance
MarketingRepresentative
DesignEngineers
ManufacturingEngineer
Financial Analyst
Project Participants
Team Leader
![Page 10: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/10.jpg)
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
Copyright 2017, Reinertsen & Associates 10
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
![Page 11: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/11.jpg)
There Is No Decentralization Dial
Copyright 2017, Reinertsen & Associates 11
Different decisions should be optimized within different frames of reference: local, product line, sector, or enterprise.
![Page 12: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/12.jpg)
Centralized Decentralized
Copyright 2017, Reinertsen & Associates 12
• 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
![Page 13: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/13.jpg)
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
![Page 14: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/14.jpg)
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
![Page 15: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/15.jpg)
Creating Initiative
Copyright 2017, Reinertsen & Associates 15
![Page 16: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/16.jpg)
The United States Marine Corps
Copyright 2017, Reinertsen & Associates 16
![Page 17: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/17.jpg)
CreatingInitiative
• Authority• Information• Adequate Resources• Preparation• Practice• Develop Judgment• No Punishment• Trust
Copyright 2017, Reinertsen & Associates 17
![Page 18: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/18.jpg)
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.
Copyright 2017, Reinertsen & Associates 18
![Page 19: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/19.jpg)
Boldness and Initiative• Cultivate ability to take calculated risks.• Errors of over-boldness are dealt with leniently.
Copyright 2017, Reinertsen & Associates 19
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
![Page 20: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/20.jpg)
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.
Copyright 2017, Reinertsen & Associates 20
![Page 21: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/21.jpg)
Maintaining Alignment
Copyright 2017, Reinertsen & Associates 21
![Page 22: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/22.jpg)
MaintainingAlignment
• Intent• Meaning• Doctrine• Socialization• Values • Cohesion• Planning• Communications
Copyright 2017, Reinertsen & Associates 22
![Page 23: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/23.jpg)
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.
Copyright 2017, Reinertsen & Associates 23
![Page 24: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/24.jpg)
Marine Corps Doctrine• Fundamental and enduring beliefs. • It reduces the need for coordination.• It is different from rules and policies.
Copyright 2017, Reinertsen & Associates 24
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
![Page 25: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/25.jpg)
• 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.
Copyright 2017, Reinertsen & Associates 25
WildlandFirefighting
![Page 26: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/26.jpg)
Firefighting Doctrine
Copyright 2017, Reinertsen & Associates 26
• 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.
![Page 27: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/27.jpg)
Doctrine vs. Policies and Rules
Copyright 2017, Reinertsen & Associates 27
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.
![Page 28: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/28.jpg)
Developing Leaders
Copyright 2017, Reinertsen & Associates 28
![Page 29: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/29.jpg)
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.
Copyright 2017, Reinertsen & Associates 29
![Page 30: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/30.jpg)
Strong Local Leadership• Put the talent near the front lines.• Promote from within.
Copyright 2017, Reinertsen & Associates 30
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
![Page 31: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/31.jpg)
Marine Corps 14 Leadership Traits
• Justice• Judgment• Dependability• Initiative• Decisiveness• Tact• Integrity
• Enthusiasm• Bearing• Unselfishness• Courage• Knowledge• Loyalty• Endurance
Copyright 2017, Reinertsen & Associates 31
![Page 32: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/32.jpg)
Motto of Marine Corps OCS
Copyright 2017, Reinertsen & Associates32
Lead byExample
![Page 33: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/33.jpg)
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.
Copyright 2017, Reinertsen & Associates 33
![Page 34: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/34.jpg)
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
![Page 35: 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](https://reader030.vdocument.in/reader030/viewer/2022011801/5ae21d927f8b9a495c8ba816/html5/thumbnails/35.jpg)
Copyright 2017, Reinertsen & Associates 35
1991 / 1997 1997 2009
Going Further
Print OnlyPrint + Kindle
Print Only