Recommeded books by Author in the acknowledgment Tipping Point, Wisdom of Crowds, New Yorker and New York Times.
Author quotes "The test of a first-rate intelligence is the ability to hold two opposing ideas in mind at the same time and still retain the ability to function. One should, for example, be able to see that things are hopeless yet be determined to make them otherwise"
Gives example of Lee Chin, how he'z faced with two options. Sticking with Warren Buffet Policy or the new strategy for investing in tech companies. He comes up with a strategy to short a few stocks and choose one stock and put everything into it.
Remember example of opposable thumb, how u can write by pressing finger and thumb.
Example of P&G. One option with Leafley to cut down the costs and the other option they was to innovate and charge premium.
Leafley choose "and" option rather then going for "or" option.
Before long P&G was swlling soaps, detergents at prices attractive in relation to those store brands. At the same time company introduced products like Olay Regenerist skin Cream which cost as high as $25 for three ounce bottle.
Red Hat also faced two options, one Microsoft Model, make the software n charge premium, other free software model, where u charge very less.
Red Hat went for both the options. Linux could be downloaded for free but Corporates had to take the Service from Linux for constant updation. Changed the model for product based to service based.
Four Season Hotel Best Example.
Two models existing. One make large Hotels give all amenities distribute them over rooms and charge. Second option make small hotels n charge less with less amenities. People had a relationship between hotel size and amenity level.
He came up with small hotel, all amenities and charged premium for it. Critical question is not what various leaders did, but how their cognitive processes produced their actions.
The process of thinking and deciding
Salience --) Causality --) Architecture --) Resolution
Also check John Sterman, MIT's expert in system thinking.
P&G Gyaan
He questioned the casual reasoning that said useful innovation output is directly proportional to the dollars invested in it. He asked P&G to obtain 50% of its innovation from outside the company by connecting with a wide array of outside innovators.
Designing a Ride, not a Railcar
Amtrak US passenger rail corporation vis-a-vis passenger airliens. Brown was given the assignment of designing the Railcar. He argured that they were missing on larger part i.e travellers avoided Amtrak because they disliked the entire experience like booking, waiting, boarding procedures.
Brown describes it as "a synthetic process".
Kamath rejected conventional wisdom, tradeoff between quality and efficiency.
Mapping the mind
The Tripod of Stance, tools and experience.
Stance is what you are, how you see the world. It has both individual and cultural elements.
(A narrow and defensive stance would lead to acquisition of minimum no. of tools)
Tools you use to organize your thinking and understand the world.
(Theories to processes to rules of Thumbs)
Experience enables us to hone our sensitivity and skills.
(Sensitivity - A chef knows a difference between two same dishes.
Skills - Chef can get the desired dish n no. of times.)
Example
Two models in pharma company. Research, develop n earn premium on drug. Or Take subsidies from govt to make it available to people. IOWH came up with third model. Developed a clinic by raising fund n came out with a drug affordable for people.
Stance
About World
Current Models do not represent the best.
Conflicting Models r to be leveraged.
Better Models exists.
About Self
I m capable of bringing better models.
I m comfortable wading into complexity to ferret out a new model.
I can create a better model.
Cultivating Stance
Watch movie Crash. (Anything we think real is model of reality, that model in imperfect)
3 most important tools for integrative thinkers
Generative Reasoning
Induction + Deduction +Generative Reasoning. (Read Charles Sanders Peirce)
"Radial Metaphors" can be used. A model around the metaphor. Business organization as family, one example.
Casual Modelling
The thinker must think abt multi dimensional and non linear causal relationship between salient points.
Read John Sterman, MIT prof in system dynamics.
Reverse engineering to be used for seeing u r casual models.
Assertive Inquiry
To ask leading questions n not have a defensive strategy for your model.
"don't you think that ....", "would't you agree that...."
Read theories of Chris Argyis, prof at HBS.
Overall an awesome concept, a must read for everyone.
