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Discovery-Led
Decision-Making
in ‘Wicked’ Times
Ben Shenoy
8th April 2020
How do we make decisions under
conditions of uncertainty?

If you are in healthcare…
what do you need to be thinking about?

If you are in healthcare…
what do you need to be thinking about?
If you are in aviation…
what do you need to be thinking about?

If you are in aviation…
what do you need to be thinking about?
If you are in digital infrastructure…
what do you need to be thinking about?

If you are in digital infrastructure…
what do you need to be thinking about?
McKinsey’s Three Horizons framework
Horizon 1
3-6 months
(current/next quarter)
Horizon 2
12-18 months
(annual planning
round)
Horizon 3
~36 months
(longer-term vision)
When do we make the biggest decisions
during any initiative?

Classic managerial decision-making
& the planning dilemma
We take the most important decisions
when we know the least
How should we act when we know how to do something?
KNOWNS
UNKNOWNS &
ASSUMPTIONS
KNOWNS
UNKNOWNS &
ASSUMPTIONS

‘Business
as Usual’
How should we act when we know how to do something?
How do we do more
of what works?
KNOWNS
UNKNOWNS &
ASSUMPTIONS
KNOWNS
UNKNOWNS &
ASSUMPTIONS
How should we act when we know how to do something?
How do we do more
of what works?
KNOWNS
UNKNOWNS &
ASSUMPTIONS
KNOWNS
UNKNOWNS &
ASSUMPTIONS
SCALE
How should we act when we don’t know much?
KNOWNS
UNKNOWNS &
ASSUMPTIONS
KNOWNS
UNKNOWNS &
ASSUMPTIONS
SCALE

How should we act when we don’t know much?
TEST
How do we learn
what we need to know?
KNOWNS
UNKNOWNS &
ASSUMPTIONS
KNOWNS
UNKNOWNS &
ASSUMPTIONS
SCALE
What do these firms have in common?
Levi Strauss AT&T Kirin
Kodak Marks & Spencer Boeing
SSIH/Asaug Bausch & Lomb Philips
GM Ciba-Geigy U.S. Steel
DEC Nike Polaroid
Siebel Nokia IBM
Xerox PanAm Ogilvy & Mather

The Tyranny of Success
KNOWNS
UNKNOWNS &
ASSUMPTIONS
KNOWNS
UNKNOWNS &
ASSUMPTIONS
SCALE TEST
What is meant by the term ‘wicked problem’?

What is meant by the term ‘wicked problem’?
No agreement on the nature of the problem,
and certainly no clear view on what interventions
might work to resolve it.
(Rittel & Webber, 1973; Grint, 2005)
There is often a gap between
expressed values, beliefs and attitudes
of a community (or organization)
and their behaviours in practice.
(Heifetz, 1995)
There are complex interdependencies,
which may reveal or create new problems
when trying to solve aspects of the wicked problem.
Normal solutions no longer seem to work.
You only start understanding the problem
once you try solving it.
There are multiple stakeholders involved,
often with polarized interests,
and some of whom are unknown or invisible.
How wicked problems arise
WICKED
PROBLEMS
TECHNOLOGYEXCHANGE
Not just digital technology:
• Physical sciences (e.g. energy,
materials)
• Medical sciences
(e.g. treatment vs. prevention)
• Social sciences (behaviour within
systems
Socioeconomic
boundaries:
• Globalization & its
consequences
(e.g. trade,
migration)
• Contest between
nation-states and
intra- and supra-
national entities
• Blurring of enterprise
boundaries
(e.g. open
innovation, open
intellectual property,
hybrid organizations)
• New business models
(e.g. platforms)
• Changing
consumption
patterns (e.g.
ownership to use)
• Finite energy sources (e.g. Peak Oil)
• Consequences of consumption (global
warming, plastics)
• Demography (e.g. NW vs. SE)
PLANET
How should we act in a ‘wicked’ environment?
KNOWNS
UNKNOWNS &
ASSUMPTIONS
KNOWNS
UNKNOWNS &
ASSUMPTIONS
SCALE

TEST
How should we act in a ‘wicked’ environment?
FRAME
What’s
the right
problem
to solve?
SCALE
KNOWNS
UNKNOWNS &
ASSUMPTIONS
KNOWNS
UNKNOWNS &
ASSUMPTIONS
TEST
Knowing & Not Knowing
It ain’t what you don’t know that gets you into trouble.
It’s what you know for sure that just ain’t so.
Mark Twain
Reframing healthcare
Reframing exchange in a COVID era
Knowing & Not Knowing: reprise
Discovery consists of seeing what everybody has seen,
and thinking what nobody has thought.
Albert Szent-Gyorgyi
Discovery-Led Decision-Making
FRAME
SCALE
KNOWNS
UNKNOWNS &
ASSUMPTIONS
KNOWNS
UNKNOWNS &
ASSUMPTIONS
VARIATIONADAPTATION
SELECTION
TEST
Thank you!
Ben Shenoy
ben@benshenoy.com
@PsySleuth

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Discovery-led decision-making for ‘wicked’ times webinar, 8 April 2020

  • 2.
  • 3. How do we make decisions under conditions of uncertainty? 
  • 4. If you are in healthcare… what do you need to be thinking about? 
  • 5. If you are in healthcare… what do you need to be thinking about?
  • 6. If you are in aviation… what do you need to be thinking about? 
  • 7. If you are in aviation… what do you need to be thinking about?
  • 8. If you are in digital infrastructure… what do you need to be thinking about? 
  • 9. If you are in digital infrastructure… what do you need to be thinking about?
  • 10. McKinsey’s Three Horizons framework Horizon 1 3-6 months (current/next quarter) Horizon 2 12-18 months (annual planning round) Horizon 3 ~36 months (longer-term vision)
  • 11. When do we make the biggest decisions during any initiative? 
  • 12. Classic managerial decision-making & the planning dilemma We take the most important decisions when we know the least
  • 13.
  • 14. How should we act when we know how to do something? KNOWNS UNKNOWNS & ASSUMPTIONS KNOWNS UNKNOWNS & ASSUMPTIONS 
  • 15. ‘Business as Usual’ How should we act when we know how to do something? How do we do more of what works? KNOWNS UNKNOWNS & ASSUMPTIONS KNOWNS UNKNOWNS & ASSUMPTIONS
  • 16. How should we act when we know how to do something? How do we do more of what works? KNOWNS UNKNOWNS & ASSUMPTIONS KNOWNS UNKNOWNS & ASSUMPTIONS SCALE
  • 17.
  • 18. How should we act when we don’t know much? KNOWNS UNKNOWNS & ASSUMPTIONS KNOWNS UNKNOWNS & ASSUMPTIONS SCALE 
  • 19. How should we act when we don’t know much? TEST How do we learn what we need to know? KNOWNS UNKNOWNS & ASSUMPTIONS KNOWNS UNKNOWNS & ASSUMPTIONS SCALE
  • 20. What do these firms have in common? Levi Strauss AT&T Kirin Kodak Marks & Spencer Boeing SSIH/Asaug Bausch & Lomb Philips GM Ciba-Geigy U.S. Steel DEC Nike Polaroid Siebel Nokia IBM Xerox PanAm Ogilvy & Mather 
  • 21. The Tyranny of Success KNOWNS UNKNOWNS & ASSUMPTIONS KNOWNS UNKNOWNS & ASSUMPTIONS SCALE TEST
  • 22. What is meant by the term ‘wicked problem’? 
  • 23. What is meant by the term ‘wicked problem’? No agreement on the nature of the problem, and certainly no clear view on what interventions might work to resolve it. (Rittel & Webber, 1973; Grint, 2005) There is often a gap between expressed values, beliefs and attitudes of a community (or organization) and their behaviours in practice. (Heifetz, 1995) There are complex interdependencies, which may reveal or create new problems when trying to solve aspects of the wicked problem. Normal solutions no longer seem to work. You only start understanding the problem once you try solving it. There are multiple stakeholders involved, often with polarized interests, and some of whom are unknown or invisible.
  • 24. How wicked problems arise WICKED PROBLEMS TECHNOLOGYEXCHANGE Not just digital technology: • Physical sciences (e.g. energy, materials) • Medical sciences (e.g. treatment vs. prevention) • Social sciences (behaviour within systems Socioeconomic boundaries: • Globalization & its consequences (e.g. trade, migration) • Contest between nation-states and intra- and supra- national entities • Blurring of enterprise boundaries (e.g. open innovation, open intellectual property, hybrid organizations) • New business models (e.g. platforms) • Changing consumption patterns (e.g. ownership to use) • Finite energy sources (e.g. Peak Oil) • Consequences of consumption (global warming, plastics) • Demography (e.g. NW vs. SE) PLANET
  • 25. How should we act in a ‘wicked’ environment? KNOWNS UNKNOWNS & ASSUMPTIONS KNOWNS UNKNOWNS & ASSUMPTIONS SCALE  TEST
  • 26. How should we act in a ‘wicked’ environment? FRAME What’s the right problem to solve? SCALE KNOWNS UNKNOWNS & ASSUMPTIONS KNOWNS UNKNOWNS & ASSUMPTIONS TEST
  • 27. Knowing & Not Knowing It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so. Mark Twain
  • 29. Reframing exchange in a COVID era
  • 30. Knowing & Not Knowing: reprise Discovery consists of seeing what everybody has seen, and thinking what nobody has thought. Albert Szent-Gyorgyi