Thinking across boundaries, or integrative thinking, is the ultimate entrepreneurial act. Call it business creativity. Call it holistic thinking.

To see problems and opportunities integratively is to see them as wholes related to larger wholes, rather than dividing information and experience into discrete bits assigned to distinct, separate categories that never touch one another

This paradigm shift to Systems ThinkingSM is a shift from seeing elements, structures, functions, and events to seeing processes and interrelationships. It is switching our perspective from (#1) events (pure analytical thinking) to (#2) patterns (some relational thinking), to (#3) mental models (partial systems thinking), and then breakthrough thinking from analytical to (#4) holistic systems thinking.

Mental Models Worldview Basic Assumptions

This model asks us to ask five questions: A Where do we want to be? (i.e., our ends, outcomes, purposes, goals, holistic vision) B How will we know when we get there? (i.e., the customers needs and wants connected into a quantifiable feedback system) C Where are we now? (i.e., todays issues and problems) D How do we get there? (i.e., close the gap from C A in a complete and holistic way) E And an ongoing question: What is changing in the environment that we need to consider?

1. When you develop your change strategy, remember to focus on cost containment. 2. Some strategies in this area include: Cut costs across the board. Do some selective cost-cutting based on yearly action priorities. Reorganize and flatten your hierarchy and expand others more. Eliminate waste and bureaucracy. Improve your business processes.

How to Reduce Costs and Complexity 1. Begin Business Process Improvement through process mapping/cross-functional teams. 2. Arrange for Blow Out Bureaucracy Workshop presented by the Centre for Strategic Management. 3. Eliminate waste of all types (outside waste assessment) all non-value-added activities wasted movement

 corrections overproduction waiting excess inventory transporting parts and materials processing parts

4. Examine/delete layers of management. 5. Examine materials and equipment costs. 6. Reduce usagetelephone, copier, etc. 7. Increase productivity and efficiency everywhere. 8. Benchmark best practices vs. your costs. 9. Adopt Quality Improvement in Your Daily Work (QIDW)/continuous improvement (individual/ teams). 10. Solicit cost-savings ideas and solutions.

11. Examine all overhead costs. 12. Examine all administrative costs. 13. Focus training dollars on your strategic plan. 14. Increase response, speed, KISS. Chapter IIIApplication: Phase AThe Outcome Thinking Tools 99 15. Promote innovation, creativity. 16. Promote automation, robotics. 17. Deal with poor performers (up or out). 18. Reduce supplier costs. 19. Reduce inventory (just in time). 20. Invest in people and technology.

We often use the acronym SKEPTIC as a way to remember the key stakeholders. S Socio-Demographics K Kompetition E Economics/Environment P Politics T Technology I Industry, and, of course, your C Customers

Step #1 Establish department plans and objectives for the year tied to the strategic plan, and explicitly explain them to all employees. Step #2 Make sure each employee sets individual goals with his or her manager andidentifies the behaviors expected to achieve these goals, as well as the ways in which goal achievement will be measured. Goals should be checked to see that they are stated in specific terms and that they are obtainable and measurable. Make sure each manager coaches and counsels his or her employees on a regular basis, as appropriate, to track progress. Incentives and rewards (nonfinancial) can and should be given throughout this cycle. Step #3 Make sure managers conduct semiformal, periodic, progress reviews with each employee on a monthly or quarterly basis. They should use this time to make any necessary changes in the employees goal statement and the behaviors or actions necessary to achieve employee goals. Praise and/or encouragement should be freely given and corrections suggested and discussed. Priorities and time schedules should also be reviewed and clarified. Both parties should agree on a summary of expectations for the next period. Step #4 Make sure each manager conducts a formal employee-performance appraisal meeting on an annual basis with each of his or her employees. Goals and behaviors must be reviewed. Step #5 Each manager must also meet with each of his or her employees to discuss career goals. Objectives and development needs are discussed in relation to corporate goals and needs.