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The art and science of the possible

~ A celebration of non-zero sum thinking

The art and science of the possible

Tag Archives: strategy

Lightfoot strategy

22 Friday May 2015

Posted by lnedelescu in business, complexity

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complexity, Emergence, strategy

Light Foot Strategy

There are many models for strategy under uncertainty but few useful metaphors. Just what does strategy under complex, unpredictable conditions look like? Picture yourself attempting to cross a fast moving stream by stepping on small, irregular, slippery and so unstable rocks. Your vision is clear: get to the other side of the stream. You could sit there and contemplate a viable path across the stream, but your plan will be sketchy at best. For one, the water partially obscures many of the stones you’re about to use, making it impossible to make accurate predictions in terms of stability. Off you go. You find out quickly that the best approach is keeping a lightfoot and moving very fast. You never want to lean all your weight on any particular stone. You use each stone with the assumption that it will roll – and so you minimize your time spent on each step. You improvise – you focus on the next viable step, and only see the few stones around it.

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Strategy vs. Resilience

20 Friday Jun 2014

Posted by lnedelescu in business, Emerging Markets

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business, Emerging Economies, Entrepreneurship, Planning, Resilience, Start-ups, strategy

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Back in 2006 I was part of Lockheed Martin’s strategy department. I had been with the company for 6 years, and had successfully graduated their 3-year long Leadership Development Program that groomed young professionals into future executives.

I would be traveling regularly to Europe, California, Florida and New York, overseeing a number of advanced research projects and international business partnerships. I was a firm believer in strategy, and the strategic planning process that was so carefully coordinated by smart, battle hardened people with white hair.

That’s when an idea took hold: would all my strategy acumen give me an edge in an emerging economy? Could I be a successful entrepreneur there as opposed to an employee in the U.S.?

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Introducing the World to Generative Management

09 Sunday Mar 2014

Posted by lnedelescu in business, design thinking, management, strategy

≈ 2 Comments

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Analytics, Big Data, business, Clay Christensen, Design Thinking, disruptive innovation, Generative Management, George Gilder, integrative thinking, Kevin Kelly, Nassim Taleb, operations, Peter Drucker, Roger Martin, Russell Ackoff, strategy, thought leaders

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Like yin and yang, human enterprise has two facets: closed-loop activities and open-ended endeavors. In management we call these two operations and strategy.

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A consulting industry first: strategy architected around complexity principles

25 Tuesday Feb 2014

Posted by lnedelescu in complexity, consulting, design thinking, innovation, knowledge, management, problem solving, strategy

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Alignment, complexity, Criteria, Innovation, Performance, Peter Drucker, phase transitions, Portfolio, Qualitative Leaps, Quantitative, strategy

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When people ask me what it is that I do, they often act surprised and sometimes suspicious upon hearing my answer: “I solve wicked problems with undefined parameters”; yes, really.

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When it comes to strategy, it’s ok to cut corners

16 Tuesday Jul 2013

Posted by lnedelescu in business, knowledge, management, science, society, strategy

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Decision Making, Heuristics, Human Systems, Humans, Implicit Knowledge, Life, problem solving, Science vs Art, Social Context, strategy

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Life is not a sanitized laboratory experiment. It’s rather a messy ebb and flow that makes scientific precision a futile pursuit. The scientific method has its rightful place in the universe, but human affairs are more artful than scientific.

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Creativity is inversely proportional to planning

13 Saturday Jul 2013

Posted by lnedelescu in human capital, innovation, knowledge, problem solving, strategy

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Creative Act, creativity, Ideation, Strategic Planning, strategy, Thought Patterns

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One of my favorite study subjects is of course myself. And when it comes to good ideas, I’ve come to notice over the years that the essence of a truly inspired idea forms in only a few seconds. This almost instantaneous process is usually triggered by exposure to a unique experience that provides the missing piece that completes a thought pattern in the making. Patterns in the making or simply incomplete patterns, are themselves the result of internalizing prior knowledge and experiences, which, for a creative individual, should be a continuous process. And so, the creative potential emerges at the intersection between patterns in the making and exposure to diverse experiences.

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It is through strategy and invention that morality and profitability become symbiotic

21 Friday Jun 2013

Posted by lnedelescu in business, capitalism, Organizational Development, society, strategy

≈ 2 Comments

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2008 financial crisis, business, Enron, Invention, Machiavelli, Morality, Society, Speculation, strategy, Wall Street

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With Enron still in recent collective memory, business has not fully recovered its morality and ethics standing. And the 2008 financial crisis didn’t help, in fact lowering trust in the world’s business establishment. So the question of whether morality and profitability in business can be symbiotic is fair. I had not really formed an opinion on this issue until the very recent past, when several incidents in my professional life gave me no choice but to do so.

And so, having pondered the issue, I believe there is an answer that constructively transcends the growing divide between the pro-profit and anti-corporate, anti-globalization groups. In short, business success doesn’t have to be synonymous with immorality. The key to achieving a symbiosis between profitability and morality is in my opinion a combination of strategy and invention.

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Effective strategy in complex environments, or why a complex world requires abstract thinking

06 Thursday Jun 2013

Posted by lnedelescu in complexity, consulting, human capital, management, strategy, taxonomy

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Abductive Reasoning, abstract thinking, antifragility, Art, business schools, Categorization, complexity, Daniel Pink, Dave Snowden, hierarchy, integrative thinking, management consulting, Management Theory, mental models, Nassim Taleb, right brain thinking, Roger Martin, Sense Making, statistical analysis, strategy, weak-signals

dalisurreal

As I have recently argued, the world’s top strategists agree that strategy in complex, cause-and-effect blurred environments requires a unique mindset.

According to Snowden and others, in complex environments cause and effect relationships do not repeat and a categorization mindset where data is fit to preconceived notions about reality (i.e. models, frameworks, etc.) is ineffective. This by the way rules out most of the consultants who provide precisely this: prescription style, a-la-carte frameworks and models. What works are sense-making models (to understand the distinction between categorization and sense-making in the words of the world’s top strategists, see my related blog). Categorization models are fast and efficient, but may miss so called “weak signals”, comparatively insignificant data points that are simply part of the average in normal situations, but which can be the source of new emergent patterns in complex circumstances – fat tails and Black Swans respectively in Nassim Taleb parlance.

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Severe business crisis turn-around: turning vicious “tailspins” into virtuous dynamics

13 Monday May 2013

Posted by lnedelescu in business, consulting, Crisis, strategy

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business, Business Development, Crisis Turnaround, Recovery, Risk, Selectivity, strategy, Tailspin, Vicious vs. Virtuous Cycles

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Just like aviation seems to have mastered the science of stable flight, so does business look stable and predictable from afar. But at a closer look tailspins are never far-away and remain a possibility. Many companies don’t go out of business over prolonged periods of decline, but rather suddenly. The warning signs for a vicious cycle are there, but the signals are usually weak and management overlooks them until it is too late. At that point revenue spirals downward, less money is available to pursue new business resulting in a reduced probability of getting business, and the enterprise is headed straight for a spectacular crash.

I will save the details for how a company enters tailspin for another blog, but here I want to focus on the key strategy to recover from vicious cycles, and even turn them around into virtuous ones.

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A visualization of “discontinuous evolution”

08 Wednesday May 2013

Posted by lnedelescu in complexity, design thinking, knowledge, management, Organizational Development, problem solving

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complexity, Discontinuous Change, Innovation, management, phase transitions, strategy

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In my blog entry arguing for a unified theory of management, I proposed that most top management reference a fundamental distinction between exploration of new knowledge (i.e. innovation) and exploitation of existing knowledge (i.e. efficient operations).

Business and indeed the entire society is caught in an evolutionary dynamic that balances exploration and exploitation – see David Hurst’s ecological perspective. While the exploitation cycle is amenable to incremental thinking, exploration appears to be prone to discontinuities – hard to predict leaps of logic.

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  • Intelligence is Intentional
  • Plenty of Room at the Top: the case for a viable man-machine economic future
  • What does an “innovation economy” really mean?
  • Lightfoot strategy
  • Capital: a brief philosophy

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