In2:IN Newsletter
In2:InThinking Network October 2007 Newsletter


Good morning from Canoga Park, California and welcome to the October edition of our monthly newsletter, filled with good portions of thought-provoking features, all designed to keep our members thinking and gaining insights on the actions that will follow.

Why settle for the prevailing style of thought?
Be a leader.
Improve your thinking about thinking.

As always, this edition was prepared monthly by volunteers of the In2:InThinking Network.  Content comes from volunteers, in service to our fellow members.  We invite you to further develop our network by sharing this newsletter with friends and colleagues.

Click either link below to submit the name(s) and email address(es) of anyone you would like to have added to this mailing list, or let us know if you would like to be removed. 


In2:InThinking Network Newsletter Team

Welcome First Timers

Your names have been added to our mailing list by virtue of your attendance in our series of Thinking Roadmap seminars, workshops, and overviews, or attendance at the annual In2:InThinking Network Forum, or through a personal request, from you or a friend.  Welcome to our thinking network.

Partners InThinking - Organization Systems Renewal - Seattle University
Organization Systems Renewal

Continuing this month, we highlight a partner organization of the In2:InThinking Network.   We first featured the Seattle-based Organization Systems Renewal program at Seattle University in our October 2006 newsletter.  We believe the resources of these organizations such as the OSR will expand your thinking about thinking...

The Facts:
Organization Systems Renewal (OSR) is a graduate level program in the design and leadership of Organizational Change. The OSR program was established in 1979 and is affiliated with Seattle University. It is a unique program that provides the opportunity for students to achieve excellence as designers and leaders of change within their organizations and communities. The OSR program is interdisciplinary, combining academic knowledge in the areas of systems, organizations, design, change, intervention, leadership, group dynamics, inquiry, global and multicultural perspectives.

How does your organization compliment the In2:InThinking Network?
Students in the OSR program learn to understand and address organizational challenges from a systems perspective. The program emphasizes the interconnections between personal, social, business, government, ecological, and global challenges. The systems perspective woven throughout the program is a compliment to the mission of the In2:InThinking Network.

Tell us about your membership. What does it mean to be a member of your organization and how does one become a member?
Our program is a graduate level masters program at Seattle University. One must apply through Seattle University for admission into the program. We do invite our greater community to attend Open Houses or conferences with some of our guest visiting faculty.

What resources does your organization offer its members?
Students attain a Master of Arts in Organizational Design and Renewal as a result of completion of our 2 year program. Other resources would include informational resources from having attended one of our conferences or Open Houses.

What exciting developments are on the horizon for your organization?
Our alumni association is active in creating learning events and ongoing opportunities for learning and growth within the OSR community.   Our alumni association hosted two major conferences recently, "Creating the Change You Want to See in the World," featuring  Betty Sue Flowers, author of
Presence, Human Purpose and the Field of the Future and "Unleashing Your Assets: Leading Transformative Change", featuring Kathryn Cramer, author of Change the Way you See Everything

Visit the OSR on the web...

Member Profile - Steve Lanham
Steve Lanham
Each month we interview members of the In2:InThinking Network to get their perspectives on a variety of questions. This month we asked Steve Lanham to provide his insights.

The Facts: 
I work for Schneider National on a Ford Motor Company account. We deliver Ford parts directly to the dealers. I am also a husband to my wonderful wife Shannon and a father to my very very lively 2 year old daughter Faith. In my spare time I enjoy playing with my daughter. I love to watch her learn new things. I also play golf although not as well as I'd like to.

In2:IN Forum Attendance: 
I have not attended an In2:IN Forum but look forward to doing so in the future.

Tell us about a recent "a ha" moment:
Some time ago I attended an Enterprise Thinking class and, I've been thinking about that quite a lot since attending. I've been fascinated by many of the concepts Bill Bellows put forth. In particular that we would pick up a nail in our driveway to save us from damaging our tires, feet, etc. but we don't have the same ethic in our work lives. We don't seem to apply the same diligence and care to our work as we do to our home lives. I've been doing some work with others at our site to try and instill the "pick up the nail" ethic at work. I'm happy to say it's going well. I lead a discussion on the theories of Dr. Deming at work and have had many "a ha" moments from the discussons that take place.

What book(s) are you reading now:
I am currently reading
Smart Talk for achieving your potential by Lou Tice. I attended a training session based on Mr. Tices' concepts. I found them interesting. The book is easy to read has good information on how to grow into your potential.

What recent book have you read that you consider both beneficial and readable?
The Successful Manager's Handbook: Develop Yourself, Coach Others. I think the information is very good, and it's fairly readable.

What advice do you have for people new to In2:IN? 
I would advise people to communicate with each other and grow the network. I forwarded the newsletter to a few people and now about 10 more people are interested. I haven't participated as much as I'd like but I look to rectify that in the near future.

Member Profile - Natalia Mironova
Natalia Mironova and Rudy Hernandez
In addition to Steve, we would also like to introduce our members to Natalia Mironova, shown here with Rudy Hernandez during her Fall 2007 visit to Canoga Park, CA.   (Click on photo to see Natalia and Rudy in front the F-1 rocket engine engine that stands in front of Pratt & Whitney Rocketdyne's Canoga facility.)

The Facts:
I live in Chelyabinsk, which is located near Ural Mountains chain in the middle part of Russia. Nuclear and chemical military productions add social and political spices, as well as recent gatherings of the most authoritarian presidents of Asian countries in this beautiful paradise for the huge "anti-terror" military game presentation. Thus, been living here, you must be risk manager nature.  It goes through all my life: engineer, scientific researcher, social activist, regional representative, social researcher, manager, Ph.D., author of the "heretical" social dynamics models.

What I am doing now? Now my scientific interest focuses on the promoting systems approach to sociology of governance. I try to follow the wisdom of Russell Ackoff, and I try to promote his vision through the Russian synergetic community.  I translated and published his article "Transforming the Systems Movement" on the well known Sergey P. Kurdyumov web site in Russia.  I published the book Social Dynamics: Metamorphoses of Self-organization and Governance.  More over, I am finishing my new book The Role of Civil Actors in Modern State  Governance.  At the end of 2007, I will run for the State Duma (Russian Congress) with Green Russia (a faction of the political party "Apple"), which tries to bite the Russian governance system.

Follow this link to find Natalia's entire Member Profile on our website.

 Book Review - Payback

Authors: James Andrew and Harold Sirkin
Publisher: Harvard Business Press
Length: 228 pages
Reviewer: Dale Deardorff

Recently, it has become popular for all organizations, companies and business enterprises to espouse the statement that "Innovation is the Key to Future Success." Some have even established the goal to increase the ROI for products or services with strategies that embrace "payback" without recognizing what the term means or what their current Innovation position is. To some, increasing innovation, measuring innovation, and understanding the financial repercussions of risk-based product development; coupled with implementation and integration may seem like overwhelming challenges. Andrew and Sirkin have created is a step-by-step explanation of the "Cash Curve" to begin to quantify the measurement and mapping of ROI influences.  As consultants for Boston Consulting Group (BCG) and participants in the 2006 surveys on innovation, they understand nuances which they are willing to share.  If you're looking for specific guidance into HOW to follow the process of innovation, this is not the book for you...but, those are specific to your organizational strategies and marketplace, hence....only you know whether you need disruptive/radical innovation or sustaining product evolution.

What the authors have done is to create an excellent, well organized book which is structured and easy to read that quantifies innovation from a financial cash payback or a cash trap perspective. Anyone who is empowered to create, support or implement Innovation should read  Payback to understand what makes business outcomes a measurable ROI success. These indirect benefits can be knowledge, brand, ecosystems or organizational. The book's models and framework can be used and implemented by small business owners or established mature enterprises. They break the innovation approach into three separate business models:

1)  Integrator - the company wants to exert strict control over the S factors (Start-up, Speed, Scale & Support Costs)

2) Orchestrator - the company does not have to commit itself to personnel, capital equipment, organizational structures, or markets that might need to be changed during the life cycle of the product or service

3)  Liscensor - the company is the primary owner of the spark of the new product and sometimes of its commercialization, but has no ownership of the realization.

Having just personally purchased my third generation of Ipod, the examples from Apple are quite enlightening and accurate. The Ipod is a success story of "Supurb Cash Curve Management" where start-up expenses were kept low over the course of the development by managing the composition and number of direct program resources to less than 50 people. This allowed the product development costs to be less than $10M. In less than 1 year, Apple was able to move the product into the marketplace by partnerships developed with companies such as PortalPlayer who had previously developed a successful MP3 player. Finally, Apple spent almost $70M between 2001 and 2003 on marketing and advertising campaigns featuring hip and colorful silhouettes gyrating and moving to the music played on Ipods.The authors suggest that by 2004 the company had achieved "payback" and were into secondary and follow on product deliveries of Nano, Ipod video and Iphone. As of February 2007, more than 90 million Ipods had been sold and the Imusic store was selling legally-downloadable podcasts, songs, books and videos without legal repercussions. This provides a perfect example of product development and payback.  The story of Motorola's Iridium satellite communication network is shared as an innovation venture which did not succeed. Motorola established partnerships to help share the development pre-launch costs of $5B to launch 66 satellites into Low-Earth orbit. This satellite network was designed to revolutionize communication connectivity and gateways. The problem was that the system took 12 years to get off the ground while $120M was spent on marketing to customers who would subscribe to the service. Iridium was only able to sign up 15,000 potential customers rather than the 600,000 that Motorola's Marketing Department had projected. The Iridium project declared bankruptcy in 1999 and sold off assets to a final group of investors for $25M. What seemed like a great idea turned into a cash trap that if mapped on a Cash Curve framework could have quickly indicated that the target costs for the start-up were wrong and implementation time to see payback was potentially unachievable.The management of this Cash Curve is the key to Innovation because it finally provides a framework which encapsulates projected and anticipated risks into a simple measurement for innovation development. In the future I would expect the authors to mature the risk parameters and include "opportunity" parameters to balance the financial projections for cash flow scenarios which will allow predictable innovation payback. These types of tools are critical to the effective business decisions required to visualize and analytically understand the implications and alternatives available during innovation development. The authors never lose sight of the purpose of innovation, which is to generate cash - which they refer to as reaping the rewards of financial returns.

The bottom line identified by the book is that without leadership, little progress can be made to improve payback.  Business leaders who read this book will come away with a new understanding of the need for rethinking the innovation models they have used in the past, an ability to revaluate the risk perspectives previously identified and the ability to hunt for cash traps. With this enlightened understanding they can complete an accurate view of the innovation portfolio and start to establish valuable cash curves to identify payback.

Just a Spoonful of Mercury Helps the Medicine go Down...
Japanese fisherman
Here's yet another reminder of the challenge for systems thinkers to balance the near term needs of society with the longer term needs of society....much easier said than done.  Link to the article in Time magazine through the picture at left to learn more about the context of a real-life challenge facing fishermen and families in Japan.
Partner Event - Annual Pegasus Conference
Pegasus Conference

Download Pegasus's conference brochure for the latest details about Amplifying Our Impact: Strategies for Unleashing the Power of Relationship, the 17th Annual Pegasus Conference, Seattle, Washington - November 5-7, 2007.

In addition to network member presentations by Tracy Huston and Elaine Johnson, Cyndi Crother-Laurin (past Forum presenter and Ongoing Discussion Thought Leader) will deliver a presentation on the topic of "Catch! Leadership Lessons from Seattle's Famous Fishmongers."

Call Pegasus at 1-800-272-0945 to discuss team registration options.   
Partner Event - Enterprise Thinking Seminar
Capital Quality Initiative
The Capital Quality Initiative (CQI) of Lansing, Michigan is partnering with the In2:InThinking Network (In2:IN) to host the first-ever Enterprise Thinking seminar in Michigan on Monday, November 12th and Tuesday, the 13th.

Since first being offered at Pratt & Whitney Rocketdyne in 1993, this seminar has been presented over 600 times, across both the US and UK, with over 8,000 attendees.   The objective of this seminar is to explore the potential of "better thinking" directed toward continuous investment in our products and processes.  In the new economy, the proficient utilization of thinking will be a necessary condition; fundamental to business competitiveness.  The aim of Enterprise Thinking is to elevate the consciousness of individual and collective thinking about sub-systems, variation, knowledge, numbers, and interactions.   

The seminar will be offered by In2:IN member Bill Bellows in Lansing as an 8-hour program, split into two 4-hour morning sessions, each running from 8am-noon.   The registration fee is $275 for CQI and In2:IN members, or $325 for non-members.   Follow this link to download the seminar brochure.
Red Hats, not Red Pens, in Red Square
The International Leadership Series present Edward de Bono "Creativity and Strategic Thinking Techniques: Effective Practices for Innovation," on December 10 2007 at the Marriott Grand Hotel in Moscow.  Edward de Bono is famous for developing creative thinking techniques and introducing the term "Lateral Thinking".  In the seminar Dr de Bono will explain the concepts behind his effective methods: Six Thinking Hats, Lateral Thinking Training and DATT and will show how companies can develop a structured approach to ensuring their organisation thinks and acts creatively.
Register at:
Phone +44 2074903774 or email: 
Transforming OurSpace Using Thinkers Thoughts
Rick Ladd

This month it's my privilege to take the helm from Shel, to think some thoughts, and to share them with you. I'd like to address a subject I believe is closely related to his piece last month on education. What I read in Shel's thoughts are a reminder to respect people, whether children or adults, students or teachers. To respect their knowledge of their world, to respect their ability and desire to learn and grow, and to respect their view of the world we share with, but don't necessarily perceive the same as, them and everyone else.

I'd like to extend the concept just a smidge and take it to the workplace. If I use de Bono's Six Thinking Hats model, I would have to say the majority of my job is Blue Hat. I spend my time thinking about thinking, and my responsibilities include helping our knowledge workers communicate, collaborate, and innovate.

The use of information technology is an important aspect of this work, in that it is used to expand our human capacities for research and communication, but it is not the lifeblood of a learning organization. It is, and most likely will continue to be, in the domain of humans and our relationships - our social networking - where the real job of managing our knowledge takes place.

Our most difficult and intractable task, then, is with respect to affecting cultural change - to transforming a buttoned-up, knowledge hoarding culture into an open, sharing, and learning/teaching culture. So that's my subject and, as I write these words I find it somewhat laughable to think I'm going to say much of value in just a few paragraphs. Nevertheless, I shall plod onward.

Rick Ladd

On Respect and Cultural Transformation

If many companies are experiencing what mine is today, one of the main issues causing consternation (at least in successful ones, where there's time and resources to reflect rather than a constant struggle to survive) is how to attract and retain high-quality people to maintain their workforce in the face of a large and looming exodus of Baby Boomers.  I am amazed at the level of hand- wringing and teeth gnashing that swirls around me and seems to find its way to a majority of the conversations about our general direction.

What really strikes me, though, is the difficulty so much of the senior management of our organizations has in understanding and respecting the very people they say they want to have as part of their organizations. When I use the word respect, what I'm thinking of is recognizing that all employees (both experienced and newly-hired) have the need not only to work and receive a paycheck, but also to be part of something bigger than themselves and to be recognized as capable of understanding and contributing to the needs of that organization.

The act of simply listening can be sorely hampered by the preconceived notions we take into a relationship.  Many or our senior management, and others in leadership positions, think the way they did things, and the answers they came up with, remain useful in all situations and for all time.  The people they need to carry out the business of the organization most likely don't see things quite the way management does. This is likely to be especially true of new-hires.

In my experience, this is not because they are fundamentally different than people who may be only 20 years their seniors, but because they grew up in a world where communication and expectations have dramatically shifted from that of their parents.

I could go on with details of these differences, why they matter, and how ignoring them may have disastrous consequences, but I think I'm out of room. Besides, since I could be blowing hot air, I'm interested in what you might have to say, so . . .

What do you think?
Who Moved My Check?
Last month we featured the potential value to a pitcher of a batter's perspective.   This month we feature a rodent's view of behaviorism.   

Follow this link to learn more on behaviorism from Alfie Kohn.
In This Issue
Partners InThinking
Book Review
Article Headline
Signup Block
Ongoing Discussion Preview
As a reminder, the Ongoing Discussion (OD) for October will 
feature Gipsie Ranney, shown below on a recent visit to St. Petersburg.
Gipsie Ranney
On Thursday and Friday, October 18th and 19th, Gipsie will engage us in a dialogue on the topic of "Motivation in the Workplace."

In addition, we are pleased to announce that Gipsie has accepted our offer to appear at our 2008 Forum.

Follow this link to register now

For those readers not already on the OD mailing list - click below...

Ideas to Ponder...
"I must admit that I personally measure success in terms of the contributions an individual makes to her or his fellow human beings."
Margaret Mead
Margaret Mead
Cultural Anthropologist

"The good life is a process, not a state of being. It is a direction not a destination.

1902-1987  Psychotherapist

"Do not fear to be eccentric in opinion, for every opinion now accepted was
once eccentric.''Bertrand Russell

Bertrand Russell 1872-1970
Philosopher, Essayist, Mathematician

Ackoff's Blog...
Check out the Ackoff Center Blog for the latest feedback on Russ Ackoff's latest book, Management f-Laws, news on the 2008 Russell Ackoff Doctoral Student Fellowships
Russ Ackoff
and a link to his paper
"A Major Mistake that Managers Make," which he published in 2006.
Deming Learning Network
Thought of the Month
These items are contributed by Gordon Hall of the Deming Learning Network in Aberdeen, Scotland.

"Rational behaviour requires theory. Reactive behaviour requires only reflex action" - W. Edwards Deming
How often do we pause to consider our underlying theories when we develop strategies - especially in context of strategies for managing the performance of individuals?

Note: we are proud to announce that Gordon has accepted our offer to appear at our 2008 Forum.   His presentation is titled "Do We Build an Organisation's Culture by Design?"
2007 Forum DVDs
2007 Forum DVD Set
For the fifth year in a row, we contracted with Kid Flix, the after-school video services team at Placerita Junior High School in nearby Valencia, CA to videotape our entire (weekend) conference.  Once again, a job well done by Paul Kass and his Kid Flix "CREW".  Their footage was converted into our final DVD package by Dave Nave & Associates.  The package of 10 presentations, including the after-dinner entertainment by taiko group On Ensemble, sells for $150.   To order, follow the link from the DVD image above.

If you could not join us, here's your chance to find out what you missed.  If you attended and want to revisit or share the memories, Dave is ready to fill your order.
2008 Forum
If you've not yet heard, we've confirmed dates for our seventh annual Forum - April 17-22.   Mark your calendars and stayed tuned for coming details.   As for location, we'll be in Los Angeles.   As for pricing, the registration fee for this 6-day event will be $350.  This price includes all pre- and post-conference seminars and workshops, conference presentations and activities, materials, and meals (dinner on Friday, continental breakfast on Saturday and Sunday, and lunch and dinner on Saturday).  We will also continue a tradition we started this year, offering a discounted registration price of $200 for full-time students in home school, public schools, colleges, or universities.
Donate to the In2:IN
Our network efforts are enabled day-by-day, month-by-month, and year-by-year by  civic-minded volunteers whose contributions include a passion for making a difference, coupled with ideas, time and energy.   Together, we are working, learning, and thinking about how we can foster and inspire "better thinking for a better future" and what this effort enables individuals and  organizations of all shapes and sizes to do differently. 

Contributions to our network also include financial support from our members, coupled with the proceeds of our annual Forum.   Towards this end, please consider contributing a tax-deductible donation to the In2:InThinking Network, which is charted as a 501c3 non-
profit organization.  Your donation can be towards our general fund (to support the website and newsletter), or towards scholarships and financial assistance of future attendees of our annual Forum.

Contact Bill Bellows
for additional information on how to contribute.
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