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Module 3: Operations Management 11/03/2021 – 12/03/2021 Day 2

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Page 1: Module 3: Operations Management

Module 3:Operations Management

11/03/2021 – 12/03/2021Day 2

Page 2: Module 3: Operations Management

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.

Page 3: Module 3: Operations Management

FinanceLecture 3

Page 4: Module 3: Operations Management

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.

Page 5: Module 3: Operations Management

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

Page 6: Module 3: Operations Management

SOURCE : UK PUBLIC SPENDING.CO.UK

Trends of expenditure for UK education

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0

10

20

30

40

50

60

70

80

90

100

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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0

10

20

30

40

50

60

70

80

90

100

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

Page 9: Module 3: Operations Management

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.

Page 10: Module 3: Operations Management

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

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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.

Page 12: Module 3: Operations Management

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.

Page 13: Module 3: Operations Management

The cost of staffing

• Salary

• Allowances and other payments

• Superannuation (Pension)

• National Insurance

• Apprenticeship levy

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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

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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

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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.

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£ 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,

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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:

Page 19: Module 3: Operations Management

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

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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..

Page 21: Module 3: Operations Management

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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ECO

NO

MY

££ £

£

££

££

£

£EC

ON

OM

Y

££ £

Economic Theory Overview:

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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.

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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

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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

Page 26: Module 3: Operations Management

Economic conditions for Human Development

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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?

Page 28: Module 3: Operations Management

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

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The application of business economics to education

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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

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Financial Practice

45 minutes independent work plus 15 min break. Enter SLT Zoom room at 11.45 am

Page 32: Module 3: Operations Management

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.

Page 33: Module 3: Operations Management

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?

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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

Page 35: Module 3: Operations Management

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:

Page 36: Module 3: Operations Management

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?

Page 37: Module 3: Operations Management

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

Page 38: Module 3: Operations Management

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

ten

tial

Pro

ble

ms

Po

ssib

le s

olu

tio

ns

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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

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Design ThinkingLecture 4 with Charmi Patel

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Social innovation by design Executivelearning experience

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Day 02

TALK: Introduction todesign

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Empoweringbusiness,people and society toshapethenext

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Foto: Rasmus Hjortshøj

Ab o ut Danish Design Center

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Executive training

Transformation programmes

Global branding

We work with -

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Leading innovationby design

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Danish Design Centre - How and why

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X-labs

Dedicated design teams for

digital transformation48

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Boxing Future Health

949

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< -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]..

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Denmark - somcharacteristicsSmall, open, accessibleeconomy Top place to start a business Most digital societyNumber one intrustAnti-corruptionWelfare state, balancedlifestyleLeader in health, food, cities, sustainability…

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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

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Social

Social

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Holistic

Holistic

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Transformative

Transformative

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What is design andhow

does it create value?

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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)

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“Design is the glue that ties all the elements together.”

—Michael Qvortrup, Design Manager, Danfoss

Winner,DanishDesignAward2018

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company brand

Design has a positive impact on revenue

Design enhances the

Design increasescustomer satisfaction

Design DeliversTheValue of Design

75%

79%

65%

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Design-led companieshave32% morerevenue and56% higher total returns to shareholders compared with other companies.McKinsey & Co, ”The Business Value of Design”, 2018

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Exploring

Investigative

Asking the right questions

Creative

Visual

Concrete

Iterative

Trial and error

Prototyping

Usercentered

Engaging

Empathic

Elements of designwork

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(CO-)CREATE NEW SOLUTIONS

MAKE THE FUTURECONCRETE

EXPLORE THEPROBLEMSPACE

Dtherseiegn

diam

pepnrsoioancshesin

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Explore the problem space

Up close to daily practices

and contexts of living.

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Co-create

Ideas are best created together with

citizens, stakeholders and otheractors.

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Making the futureconcrete

Create tangible futures

through prototypes

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Design ThinkingSeminar 4 with Charmi Patel

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Now you get to try it!

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ConvergentDivergent

TakedecisionsCreate opportunities

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(CO-)CREATE NEW SOLUTIONS

MAKE THE FUTURECONCRETE

EXPLORE THEPROBLEMSPACE

Dtherseiegn

diam

pepnrsoioancshesin

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MorePROBLEM:

and more peopleare addicted to theirscreens

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PROB

LEM:More and more people are addicted to theirscreens

PEXPLORE THE ROBLEM SPACE

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How might we...

For who... (target group)

Where and/or when... (context)

What value are you creating... (impact)

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Start here!

Write y our problem on

the card!

The mother

The teenager

f or CEO

onicelectr

manuf acturing

company

Politician

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PROB

LEM:More and more people are addicted to theirscreens

(CO) CREATE NEW SOLUTIONS

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IDEA MATRIX

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PROB

LEM:More and more people are addicted to theirscreens

MAKE THEFUTURE CONCRETE

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Day 02

TALK: A new form

Frof leadership

om decision-maker to future maker

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Credit: ScanpixDenmark

Design leadership in practice

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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

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DESIGN ASFUTURE-MAKINGDESIGN AS DECISION-MAKING 84

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Towards MANAGING as DESIGNING

From

”Which decision should I make?”

To

“What should I make a decision about?”

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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.

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(CO-)CREATE NEW SOLUTIONS

MAKE THE FUTURECONCRETE

EXPLORE THEPROBLEMSPACE

D3d

esim

igennasipopnrsoachesin

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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

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Leveraging Empathy

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Coloplast

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“The best service we

can give our users is

that they forget they

use our products.”

- Lars Rasmussen, CEO ofColoplast

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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

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“It was an eye-opener.”Director-General, State Agency

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“What I wanted wasto

disturb thHe

ea

mdN

.u

”rse, NationalHospital

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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]

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[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

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Pieter Mouritsen A/S100

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“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

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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

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“Like searching in the dark.”

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“A loss of control. But

a positive loss ofcontrol.”Deputy Dean, CommunityCollege

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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]

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[REFLECTION]

Encouraging Divergence &

HowNavigating Ambiguity

might you support divergent thinking and

handle ambiguity in your company/

organisation?

[5 minutes]

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[SHARING & DISCUSSION]

Encouraging Divergence& Navigating

AmbiguityLet’s share our

thoughts

[10 minutes]

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k

Day 02

Br15m

einute

as

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Rehearsing New Futures

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Source: 1508

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Kilde: Onboarding Group 111

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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

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#5 Rehearse the future

“To really show an idea rather than

just talk about it is very powerful.”

Director Strategic Planning, CityGovernment

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“Create value for users

and for staff, at the same

time.”

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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)

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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

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[REFLECTION]

Rehearsing New FuturesWhat could it look like if you rehearsed new

futures in yourcompany/organisation?

[5 minutes]

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[SHARING & DISCUSSION]

Rehearsing New FuturesLet’s share our

thoughts

[10 minutes]

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fYour advice

de or becoming asign driven leader

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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

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https://danskdesigncenter.dk/en/toolbox

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THANK YOU

to see Wehopeyou again soon

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Final thoughts

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Plenary