module 3: operations management
TRANSCRIPT
Module 3:Operations Management
11/03/2021 – 12/03/2021Day 2
1. Ethics and CSR: This session explores Ethics and values-based leadership, wellbeing, and corporate social responsibility through the lens of the Ethical Leadership Framework.
2. Governance: This session examines the component parts required to create and sustain responsible accountability and governance including financial, legal, procurement, H&S and compliance requirements such as ensuring Gender and Diversity equity and parity, in accordance with the Equality Act.
3. Finance: This session provides a comprehensive understanding of strategic finance techniques including scenarios, modelling and identifying trends such as the Gender Pay Gap, application of economic theory to decision-making, and how to evaluate financial and non-financial information.
4. Design thinking: Design is a transformational force that helps organisations develop products, services and experiences that connect and resonate with customers. To help organisations address today’s business challenges in innovative ways, business leaders are seeking to develop their creative and design thinking skills.
FinanceLecture 3
Problems in school funding are not new
• In the US, 40 years ago, the Serrano v. Priest decision, California Supreme Court declared the school finance system was unconstitutional because “it makes the quality of a child’s education a function of the wealth of his parents and neighbors.”
• As changes in school finance formulas have evolved, administrations have a dilemma related to the flypaper effect. As in the UK, they generally have at least partial control over how much of the new grant will “stick”.
• Several studies have examined the effect of modern school finance reforms on the distribution of school spending and specifically on the distribution across income groups. This is an important topic to analyse because it is generally the basis of school finance reform itself.
The Marketisation of Education
• Marketisation is used to refer to a trend in education policy from the 1980s where schools were encouraged to compete against each other and act more like private businesses rather than institutions under the control of local government.
• Associated with the Education Reform Act of 1988, although significant parts of education policy, since then, have also been about marketisation, regardless of which government is in power including:
• Testing and League tables
• Ofsted
• Formula funding
• Parental choice
• Schools opting out of local authority control
• Academies and free schools
Whitty 2002, Ball et. al 1994, Gewirtz's 1995
SOURCE : UK PUBLIC SPENDING.CO.UK
Trends of expenditure for UK education
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10
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2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19
UK Education Expenditure in Billions foreach year
Percentage of pupils achieving thresholdin English and mathematics GCSEs
Source’s: UK public spending and Gov.uk/GCSE statistics 2019
Trend analysis. Education spend versus GCSE outcomes
UK Education Expenditure in Billions for each year
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10
20
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2009 2010 2011 2012 2013 2014 2015 2017 2018 2019
UK Education Expenditure inBillions for each year
Level 5 (Pre 2015 & Expectedprogress 2015 on)
Education spend versus “expected progress” outcomes
UK Education Expenditure in Billions for each year
Source’s: UK public spending and Gov.uk/GCSE statistics 2019
Funding and expenditure
Revenue funding is funding which can be spent to provide services and buy items that will be used within a year e.g. salaries, heating, lighting, services and small
items of equipment.
Revenue expenditure refers to short-term expenses required to meet the ongoing operational costs of
running a school usually over one year. They include the repair and maintenance costs necessary to keep an
asset in working order without substantially improving or extending the useful life of the asset.
Capital funding is used to acquire, upgrade, and maintain physical assets such as property, buildings,
technology, or equipment.
Capital expenditures are typically one-time large purchases or repairs of fixed assets that will be used
over a longer period. They can include repairing a roof, purchasing equipment, or building a new facility.
Sources of funding
Revenue funding
• The national funding formula
• Grants and premiums
• Self-generated income
• Rates relief (Academies only)
Capital funding
• Devolved formula capital (DFC)
• School condition allocations (SCA)
• Condition improvement fund (CIF)
The Education and Skills Funding Agency (ESFA) is a single agency accountable for funding education and skills for children, young people and adults including:• academies (free schools,
university technical colleges and special academies)
• maintained schools
Forms of Expenditure
Non-discretionary expenses Discretionary expenses
• Staffing • Premises• Insurance • IT licences
• Staff professional development• Educational supplies and services• Enrichment opportunities
Revenue expenditure
Capital expenditure• maintain buildings and fund small-scale capital projects.• keeping school buildings safe: tackling poor building condition, building
compliance, energy efficiency, and health and safety issues.• Condition Improvement Fund (CIF) must be spent on the project detailed in the
approved bid.
Financial benchmarking
• Financial benchmarking involves running a financial analysis of income and expenditure
• Then making a comparison of the results in order to assess an organizations overall competitiveness, efficiency and productivity.
• Schools financial benchmarking service
• Compare across a range of ‘characteristics’ including senior leaders as a percentage of workforce, pupil to teacher ratio, pupil to adult ratio, average class size.
The cost of staffing
• Salary
• Allowances and other payments
• Superannuation (Pension)
• National Insurance
• Apprenticeship levy
Financial Planning
Financial planning is an essential part of good financial management. It provides an organisation with a clear view of how it intends to use its resources.
It has two interrelated elements: the School Improvement Plan and the school’s budget.
• The School Improvement Plan (Strategic plan for the organization):• identifies educational priorities
• usually has a strong focus on raising standards (or maintaining high standards
• should indicate the resource implications of each priority to guide decisions on the school’s budget.
• should reflect the decisions made about the cost-effectiveness
• indicate ways in which the progress of an initiative can be monitored and evaluated
• The budget:
• sets out how resources are allocated and provides a mechanism for monitoring expenditure through the year.
• concrete expression of the School Improvement Plan
• coherent framework, which allows staff and governors to see how the school’s spending will help the school achieve its targets and other objectives.
Good budgeting means not running into deficit, but equally not carrying large balances of unspent money from year to year without good reason.
Ealing Grid for Learning
Financial Planning
Current Year Year 2 Year 3
Teachers E01 3,404,460 3,349,423 3,386,619
Education Support Staff E03 615,049 629,205 637,656
Premises Staff E04 82,639 83,348 84,817
Administration E05 390,101 403,495 413,889
Catering Staff E06 0 0 0
Other Staff E07 25,452 25,452 25,452
Extended Schools Staff E31 0 0 0
3-Year Summary of Salaries
The role of finance in your organisation
• Finance is a central element that contributes to the overall success of strategic planning.
• We should ensure that plans cover a time-span of up to five years. Three years in detail two more years in outline.
• The strategic plan must have a financial foundation with a view to ensure that the organisation can cope with a variety of planned and unplanned scenarios.
• The very nature of finance is very data rich and can look very clinical in terms of the accounting elements, but where finance can be helpful can be in terms of modelling and planning for “What if?” scenarios so that leadership can have the best information for decision making.
£ Activities Outcomes Impact
The role of finance in decision making
The transformative elements of finance can happen if there is involvement in management operations and whole school strategy,
Increases in pay costs (e.g. Annual Pay Increases and pay increments (E.g. M1 to M2)
Increases in non-pay inflation (e.g. energy costs)
Increases in employer pension contributions)
Increases in employer national insurance contributions
Funding changes resulting from the National Funding Formula
Changes to the Capital Funding Formula
Reductions in the Education Service Grant
Financial Strategy
Financial strategy will have variations based on the type of school or institution you are working in. Having made this point, whether you are working in a large Multi Academy Trust, or a County Infants school, many of these principles apply:
• Clearly the priority for any School/Academy is to educate students/children in order to increase their life chances and for them to fulfill their potential.
• The Strategy, Vision, Values and shared aims will be a starting point for any financial discussion.
• The School/MAT development plan / improvement plan should embody the year on year priorities of the education elements that you wish to achieve.
• But what, do you think might be the financial constraints that might derail even the best conceived plan? Spend a few minutes jotting down what you might think and then let’s compare notes:
Performing modelling and scenario planning
• All organisations will carry out some degree of disaster planning
• Many will plan and model scenarios from their PESTLE analysis
• Health and Emergency services will plan and rehearse for a major incident
• In business, scenarios will be planned for so that the business can continue to function uninterrupted
• An example of this might well be an interruption in the supply chain for key manufacturer
• This would be financially modelled, but also alternative supply chains would be sought in advance of a disaster
• For education, this is no different• A finance department would need to financially model to forecast the
fiscal future in order to stay solvent – even in difficult financial times• A financial forecast will will typically take historical income, Include
assumptions about the future, the current balance sheet and cash flow
First consideration: Is this threat real? Although this
could have financial impact if it goes ahead. Analysis of
pupil projections is key. Has there been new building
stock in the area? A good deal of intelligence gathering
required
If the threat is real, consider modelling a 1.5 form intake
to start and work this financial model over three
years
Work up a staffing model to ensure savings can sustain
the school as an all through 1.5 entry school as one
scenario
Cost an option to promote your school to a wider catchment area. Pupil
projections might help you remodel this
Is there any other savings that could be made in the
school back office or services procurement that could
sustain the school?
Scenario planning
Here is a possible scenario that you could plan for and arrive at a solution:
• You are a two- form entry primary school on the edge of a large town. You are county controlled and receive your funding from the local authority.
• The school building is fairly old (1930s), but serviceable.
• Your pupil numbers have risen slowly since you have taken over the school and your budget is healthy and at present you are meeting your strategic objectives.
• Recently, you have been informed of the possibility of a Free School being set up in your vicinity.
• What are the possible financial opportunities and threats that could arise from this? Jot down five financial considerations..
Economic Theory
There are two aspects to how economic theory impacts education:
• The first is how education impacts the economy. If nothing else, this justifies the rationale and wider purpose of the relationship between education and the economy. In a paper by Jasmina Osmankovic in the Journal of Economics and Business, Vol. IX, Issue 1, June 2011, the correlation was strongly made between educational outcomes and economic success of countries. We will explore this aspect further. This can be thought of as the Macro elements of economic theory.
• The second is the Micro element which looks at how economics impacts education and how, in this day and age, schools should borrow business practice and apply elements of “Managerial Economics”
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Economic Theory Overview:
How financial funding can be aimed at economic outcomes
A political financial intervention – Pupil Premium
The reason for this intervention was well intended and was certainly aimed at solving an identified problem.
The statistics indicated in 2010, that children’s outcomes and life chances were limited if they came from areas where the index of multiple deprivation was higher. The evidence also showed that children from these identified areas may well drain other state resources (unemployment, health) when they reach adulthood.
• Whilst the intention was aimed at producing a more positive outcome and the investment was significant, the initial assessment was not conclusive. Not least, because this initiative was introduced at a time where education funding was being reduced.
• Household income generally isn’t found to be an important causal contributor to child’s attainment. It is a poor proxy for other important social factors that tell us how well a child is likely to do at school, including parental education.
Education & Economic Theory
In Osmankovic ‘s study she wanted to understand why and how certain countries have made progress while others have regressed in the development process, many economic theories explaining processes of growth and development have emerged and developed.
By applying methods of analysis, synthesis and comparison, and based on earlier works, classification of theories of development has been made to analyse the evolution process of the role and importance of education in the development process.
Figure 1: The classification of theoretical approaches in studying the role of education in economic development1
Theory Detail
Linear stages of Growth Model
To invest in the economy, it was necessary to stimulate savings in order to have greater capital accumulation, which led to further increase of GDP
Theories and Patterns of structural change
explains the transfer of labour between the two sectors in the economy. Lewis in this model assumes a surplus of labor in the traditional (agricultural) sector, which is transferred (without loss) in the modern (urban) sector.3 The key to economic growth in this model is the modernisation of traditional sector, which then leads to the growth of modern sector, and ultimately restructuring the economy
International‐dependence revolution
If this is applied to relations at the global level, we can say that the dependency is based on the international division of labor that allows a high degree of industrial development in some countries, while at the same time industrial development is limited in a number of other countries and is under the control of the world's centers of power.
Neoclassical, free market counterrevolution
In the case of developing countries, this approach calls for free markets, the elimination of state intervention in economic policy and state ownership, financial and trade liberalisation
Education & Economic Theory
Economic conditions for Human Development
Authority AWPU
London £8595
Middlesbrough £4756
Wokingham £4150
Darlington £4648
Newcastle £4710
Back to fair funding and equality of educational provision
• Clearly the challenge will be to ameliorate the impact of these forthcoming financial storms.
• How can we as educators compensate for poverty in public policy?
The application of business economics to education
• Managerial Economics (also called Business Economics) a subject first introduced by Joel Dean in 1951, is essentially concerned with the economic decisions of business managers. It is a branch of Economics that applies microeconomic analysis to specific business decisions (i.e. Economics applied in business decision-making).
• Managerial Economics may be viewed as Economics applied to problem solving at the level of the company. The problems of course relate to choices and allocation of resources, which are basically economic in nature and are faced by managers all the time.
• It is that branch of Economics, which serves as a link between abstract theory and management.
• Whilst this model is not an exact fit for education in that the majority of schools are not in the business of making profit, many practices do apply
The application of business economics to education
Pricing Business economics assists businesses in determining price strategies. Whilst this is not the norm for education, the concept of value based pricing is. The relative cost of providing an additional class or another 6th form course has to be costed to determine if this is to be economic
OperationalProduction
Managerial economics uses a variety of quantitative methods to analyse efficiency including economies of scale. Something that MAT’s can usefully contribute towards.
Managing risk We come back to PESTLE here and being able to model how to assess and reduce risk for an organisation.
Employment Making key decisions – in line with the above for employment and training for the organisation
The application of business economics to education
Financial Practice
45 minutes independent work plus 15 min break. Enter SLT Zoom room at 11.45 am
Funding and expenditure
Revenue funding is funding which can be spent to provide services and buy items that will be used within a year e.g. salaries, heating, lighting, services and small
items of equipment.
Revenue expenditure refers to short-term expenses required to meet the ongoing operational costs of
running a school usually over one year. They include the repair and maintenance costs necessary to keep an
asset in working order without substantially improving or extending the useful life of the asset.
Capital funding is used to acquire, upgrade, and maintain physical assets such as property, buildings,
technology, or equipment.
Capital expenditures are typically one-time large purchases or repairs of fixed assets that will be used
over a longer period. They can include repairing a roof, purchasing equipment, or building a new facility.
Funding and expenditure reflection
Revenue funding Revenue expenditure
Capital funding Capital expenditures
• Can you think of examples from your context for each of the boxes above?
• Does your school have any further sources of income not mentioned so far today?
• Are there any opportunities you could explore to raise further income?
Independent task
• Take some time outside of this session to review your organisation’s sources of income and forms of expenditure.
• Identify funding from each of the following: The national funding formula (via the LA for maintained schools); Grants and premiums; Self-generated income; Rates relief (Academies only); Sources of Capital funding
• Identify non-discretionary and discretionary expenditure. And consider any possible areas where savings could be made
• Calculate the following:
• staff pay as percentage of total expenditure
• average teacher cost
• pupil-to-teacher ratio
• class sizes
• teacher contact ratio
• Use the schools financial benchmarking service to compare your organisation with similar organisations and identify areas for review and development
Financial Planning reflection
The School Improvement Plan/Organisations Strategic Plan… Not at all Partially Fully Unsure
• identifies educational priorities
• has a strong focus on raising standards (or maintaining high standards)
• indicates the resource implications of each priority to guide decisions on the budget
• should reflect the decisions made about the cost-effectiveness
• indicates ways in which the progress of an initiative can be monitored
• indicates ways in which the progress of an initiative can be evaluated
The budget… Not at all Partially Fully Unsure
• sets out how resources are allocated.
• provides a mechanism for monitoring expenditure through the year.
• is a concrete expression of the School Improvement Plan/Organisations Strategic Plan
• is a coherent framework, which allows staff and governors to see how spending will help the organisation achieve its targets and other objectives
Areas of strength: Areas for development:
Scenario planning
Here is a possible scenario that you could plan for and arrive at a solution:
• You are a two-form entry primary school on the edge of a large town. You are county controlled and receive your funding from the local authority.
• The school buildings are fairly old (1930s), but serviceable.
• Your pupil numbers have risen slowly since you have taken over the school and your budget is healthy and at present you are meeting your strategic objectives.
• Recently, you have been informed of the possibility of a Free School being set up in your vicinity.
• What are the possible financial opportunities and threats that could arise from this?
• Assess the possible financial opportunities and threats already suggested
• Jot down examples of financial opportunities and threats if a similar scenario applied to your context
First consideration: Is this threat real? Although this
could have financial impact if it goes ahead. Analysis of
pupil projections is key. Has there been new building
stock in the area? A good deal of intelligence gathering
required
If the threat is real, consider modelling a 1.5 form intake
to start and work this financial model over three
years
Work up a staffing model to ensure savings can sustain
the school as an all through 1.5 entry school as one
scenario
Cost an option to promote your school to a wider catchment area. Pupil
projections might help you remodel this
Is there any other savings that could be made in the
school back office or services procurement that could
sustain the school?
First consideration: Is this threat real? Although this
could have financial impact if it goes ahead. Analysis of
pupil projections is key. Has there been new building
stock in the area? A good deal of intelligence gathering
required
If the threat is real, consider modelling a 1.5 form intake
to start and work this financial model over three
years
Work up a staffing model to ensure savings can sustain the school as an all through
1.5 entry school as one scenario
Cost an option to promote your school to a wider catchment area. Pupil
projections might help you remodel this
Is there any other savings that could be made in the
school back office or services procurement that could
sustain the school?
Scenario planning
Here is a possible scenario that you could plan for and arrive at a solution:
• You are a two-form entry primary school on the edge of a large town. You are county controlled and receive your funding from the local authority.
• The school buildings are fairly old (1930s), but serviceable
• Your pupil numbers have risen slowly since you have taken over the school and your budget is healthy and at present you are meeting your strategic objectives.
• Recently, you have been informed of the possibility of a Free School being set up in your vicinity.
• What are the possible financial opportunities and threats that could arise from this?
• Assess the possible financial opportunities and threats already suggested
• Jot down examples of financial opportunities and threats if a similar scenario applied to your context
Political Economic Social Technological Legal EnvironmentalEx
amp
le
• Changes to teacher training qualification
• Changes to curriculum with short lead times
• Shortages of materials on national/ international markets
• Competition from neighbouring schools
• Fundraising plans impacted
• Decline in birth rate, reflecting national trends
• Local population changes (increasing/ decreasing numbers)
• Demographic changes impacting student needs
• New computer viruses may affect operations
• Computer hardware being out of date
• Computer software being out of date
• Inequality of access to devices and data
• Risk of non-compliance with new legislation
• Changes to child protection legislation
• Change to school opening hours
• Reduction of green space available for activities
• Longer term road closures impacting access to school
• Using a high volume of paper/photocopier tone
Po
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Pro
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olu
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Discussion – 30 minutes
• In groups take turns to share your problems and proposed solutions.
Actions Time
Problem owner shares their thinking while the group listens (begin with the greatest priority)
5 minutes
Rest of the group asks any clarifying questions 3 minutes
Rest of the group gives feedback recognising:• one thing that has gone well in the analysis (WWW) • one element that could be considered further (EBI)
2 minutes
39
Design ThinkingLecture 4 with Charmi Patel
40
Social innovation by design Executivelearning experience
41
Day 02
TALK: Introduction todesign
42
Empoweringbusiness,people and society toshapethenext
43
Foto: Rasmus Hjortshøj
Ab o ut Danish Design Center
44
Executive training
Transformation programmes
Global branding
We work with -
45
Leading innovationby design
46
Danish Design Centre - How and why
47
X-labs
Dedicated design teams for
digital transformation48
Boxing Future Health
949
< -rn c ircula rconst ructionc halle nge..org 0 CJ -nJ
1..as rslides - Team o._ Summit Europe - 2018 Conference 2 0 1 8- Reg"... Glemt ro d e - t.'1andag -· • pl-designsundhed o._ Digltalt: Google vs.Vest.... Ta fordi du enter Skype
Ci rc ular Construction Challenge- Rethink Was te What is CCC? What can I win? Why CCC? What are the criteria? Submit yourid ea!
Do You antto Help
Zero- aste orld?
Join the Circular Construction
to co-create transformative so111111111
environment
Weare calling for innovatorsthatreuse, recycleand u to new • or ebuiltenvironment Addressing a global challenge of waste overload, thea rcular Construction
inviting businesses and innovators to helpbuilda world where waste does notexist:What Is yOursolutionfor reuse and upcycling in the built environment?
• • • •Join theCircular Construction Challenge by submittingyour idea orsolution beforethe deadline on
October 1,2018.Read more and getall the details by downloading thechallenge call' .
We launchedofficially on 24 August Did youmisstheCircularConstruction Challenge kickoff? Hereare
most important takeaways [in Danish]..
50
51
Denmark - somcharacteristicsSmall, open, accessibleeconomy Top place to start a business Most digital societyNumber one intrustAnti-corruptionWelfare state, balancedlifestyleLeader in health, food, cities, sustainability…
52
QualityHighest standard inmaterials,
crafting, and detailing
HolisticA coherent approach to function, tech-
nology, systems and user-context
FactualAddressing the right problem,
unpretentious,discreet
CraftHigh professionalism, detail-oriented,
natural materials,textural
TransformativeInnovative, collaborative,
multidisciplinary, process-oriented
User-drivenSensible, transparent, user-centered,
everyday aesthetics
SocialDemocratic, non-hierarchical, trust-
worthy, rooted in socialmovements
HumanCaring, em pathetic,
humanistic, inclusive
SimpleStringent,
minimalistic
DurableLong-lasting, solid, conscious
of trad ition
The Danish context
Innovating with values: Denmark’s design DNA
53
Social
Social
54
Holistic
Holistic
55
Transformative
Transformative
56
What is design andhow
does it create value?
57
What isdesign?
“Everyone designs who devises courses ofaction
aimed at changing existing situations into
preferred ones.”
Herbert Simon (1969)
“Design is the human capacity to shape and
make our environments in ways ... that satisfy
our needs and give meaning to our lives”
John Heskett (2002)
58
“Design is the glue that ties all the elements together.”
—Michael Qvortrup, Design Manager, Danfoss
Winner,DanishDesignAward2018
59
company brand
Design has a positive impact on revenue
Design enhances the
Design increasescustomer satisfaction
Design DeliversTheValue of Design
75%
79%
65%
60
Design-led companieshave32% morerevenue and56% higher total returns to shareholders compared with other companies.McKinsey & Co, ”The Business Value of Design”, 2018
61
Exploring
Investigative
Asking the right questions
Creative
Visual
Concrete
Iterative
Trial and error
Prototyping
Usercentered
Engaging
Empathic
Elements of designwork
62
(CO-)CREATE NEW SOLUTIONS
MAKE THE FUTURECONCRETE
EXPLORE THEPROBLEMSPACE
Dtherseiegn
diam
pepnrsoioancshesin
63
Explore the problem space
Up close to daily practices
and contexts of living.
64
Co-create
Ideas are best created together with
citizens, stakeholders and otheractors.
65
Making the futureconcrete
Create tangible futures
through prototypes
66
Design ThinkingSeminar 4 with Charmi Patel
67
Now you get to try it!
68
ConvergentDivergent
TakedecisionsCreate opportunities
69
(CO-)CREATE NEW SOLUTIONS
MAKE THE FUTURECONCRETE
EXPLORE THEPROBLEMSPACE
Dtherseiegn
diam
pepnrsoioancshesin
70
MorePROBLEM:
and more peopleare addicted to theirscreens
71
PROB
LEM:More and more people are addicted to theirscreens
PEXPLORE THE ROBLEM SPACE
72
How might we...
For who... (target group)
Where and/or when... (context)
What value are you creating... (impact)
73
Start here!
Write y our problem on
the card!
The mother
The teenager
f or CEO
onicelectr
manuf acturing
company
Politician
74
PROB
LEM:More and more people are addicted to theirscreens
(CO) CREATE NEW SOLUTIONS
75
IDEA MATRIX
76
PROB
LEM:More and more people are addicted to theirscreens
MAKE THEFUTURE CONCRETE
77
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Day 02
TALK: A new form
Frof leadership
om decision-maker to future maker
79
80
Credit: ScanpixDenmark
Design leadership in practice
81
Managers, as designers, are throwninto situations
that are not of their own making yet for which
they are responsible to produce a desired
outcome. Theyoperate in a problemspace with no
firm basis for judging one solution as superior to
another, and still theymust proceed.
- Boland &Collopy (2004) Managing asDesigning
82
83
DESIGN ASFUTURE-MAKINGDESIGN AS DECISION-MAKING 84
Towards MANAGING as DESIGNING
From
”Which decision should I make?”
To
“What should I make a decision about?”
85
Decision attitudeManaging
What is the decision
space?
What isthe current or
past situation? Which
decision should I
make?
Thedecision isthere
to be FOUND.
Design attitude
Designing
What isthe problem/opportunity space?
What could be a better future situation?
How might we expandourrange of optionsto
decideabout?
Thedecision isthere to be CREATED.
86
(CO-)CREATE NEW SOLUTIONS
MAKE THE FUTURECONCRETE
EXPLORE THEPROBLEMSPACE
D3d
esim
igennasipopnrsoachesin
87
Leveraging
empathy
Navigating
ambiguity
(Co-)create
new solutions
Explore the
problem
space
Make the
future
concrete
Rehearsing
the future
Principle #2
Principle #3Principle #1
Pleraindciinpglebsufsoinress
ibnyndoevsaitginon
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You have four cards, that you will use
in the next three hours for reflections.
Your BusinessChallengeDialogue & reflection tool
89
Leveraging Empathy
90
Coloplast
91
“The best service we
can give our users is
that they forget they
use our products.”
- Lars Rasmussen, CEO ofColoplast
92
Challenge #1: Empathic data
“To employees long accustomed to being told to be
rational and objective, these methods can seem
rather subjective and personal. Businesses want to
understand their customers, of course, but design
thinking approaches to connecting with customers can
feel too close, uncomfortably emotive, sometimes
overwhelmingly affecting.”
Austin, R. & Bason, C. (2019) The Right Way to Lead Design Thinking. Harvard Business
Review 93
“It was an eye-opener.”Director-General, State Agency
94
“What I wanted wasto
disturb thHe
ea
mdN
.u
”rse, NationalHospital
95
Leaders should -
- endorse processes whichinvolve
information about customers/
- users
support the employees who are
dealing with distressingemotions
that arise when the effectiveness
- of the processis questioned
pushemployees to open up but be
supportive of tackling new
- insights
frame new findings as
opportunities for redesign and
improvements [not performance
problems]
96
[REFLECTION]
Leveraging EmpathyWhat would you do to leverage empathy
in your company/organisation?
[5 minutes]
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[SHARING & DISCUSSION]
Leveraging EmpathyLet’s share our
thoughts
[10 minutes]
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Encouraging Divergence & Navigating Ambiguity
99
Pieter Mouritsen A/S100
“In the past I would have told my staff: Just go find
asolution to the power-problem or, find out how it should
look. Now I know that good ideas can come from
anywhere - design work as a collaboration between a
lot of different people.”
- Pieter Mouritsen, CEO ofPieter Mouritsen A/S
101
Challenge #2: Iteration
“Design methods ask employees not to race to the
finish line, not to converge on an answer as quickly as
possible, and instead to widen the set of options—to
go sideways for a while rather than forward. This can
be difficult for people schooled in the need for
efficiency, the importance of cost savings, the value of
being lean, and soon. It can feel like “spinning wheels”
because it kind of is.”
Austin, R. & Bason, C. (2018) Leading Transformation by Design. HBRforthcoming
102
“Like searching in the dark.”
103
“A loss of control. But
a positive loss ofcontrol.”Deputy Dean, CommunityCollege
104
Leaders should -
- help their staff resist the urge to
converge quickly on a solution
- without feeling they lack direction
support the goal-oriented people
to deal with their insecurities and
worries about the process of
divergent thinking [in theireyes
- an unnecessary ambiguity]
lead by example, bysharing
feelings of uncertaintywith
employees while at the same time
showing trust in the open-
endedness as a benefit [not a lack
of direction]
105
[REFLECTION]
Encouraging Divergence &
HowNavigating Ambiguity
might you support divergent thinking and
handle ambiguity in your company/
organisation?
[5 minutes]
106
[SHARING & DISCUSSION]
Encouraging Divergence& Navigating
AmbiguityLet’s share our
thoughts
[10 minutes]
107
k
Day 02
Br15m
einute
as
108
Rehearsing New Futures
109
Source: 1508
110
Kilde: Onboarding Group 111
Challenge #3: Learning to fail forward
“If that were not enough, design approaches also call
on employees to often experience something that
they have historically tried to avoid: failure. The
aspects of these methods that involve iterative
prototyping and testing work best when they produce
lots of negative
results, outcomes that show you what does not
work. But piling up seemingly unsuccessful
outcomes does not feel good to most people.”
Austin, R. & Bason, C. (2018) Leading Transformation by Design. HBR
112
#5 Rehearse the future
“To really show an idea rather than
just talk about it is very powerful.”
Director Strategic Planning, CityGovernment
113
“Create value for users
and for staff, at the same
time.”
114
75
“A design attitude views each project as an
opportunity for invention that includes a
questioning of basic assumptions and a
resolve to leave the world a better place
than we found it.”
Boland & Collopy (2004)
115
Leaders should -
- enable testing and trial & error
practices with users/staffers by
- providing time and resources
address skepticism about the
value of the work by conveying to
employees that “failed”
- prototypes represent progress
be specific about what overall
- outcomes need to be achieved
have a focus on creating value
not just for external clients but
also for employees, which will
broaden the potential benefits of
change and securebuy-in
116
[REFLECTION]
Rehearsing New FuturesWhat could it look like if you rehearsed new
futures in yourcompany/organisation?
[5 minutes]
117
[SHARING & DISCUSSION]
Rehearsing New FuturesLet’s share our
thoughts
[10 minutes]
118
fYour advice
de or becoming asign driven leader
119
Agree on 3 pieces of advice based
on what you have learned and
experienced:
· What advice would you give
fellow leaders who have a wish to
become more design driven?
· Write your advice on the cards
Advice you bring with you
120
https://danskdesigncenter.dk/en/toolbox
121
THANK YOU
to see Wehopeyou again soon
122
Final thoughts
123
Plenary