Jelena Fedurko_TOCICO 2014_Webinar Series_Part 2_30 Jan 2014

1Webinar Series_2014_Part1 Copyright 2014 by Jelena Fedurko

Webinar Series: Understanding Systems and Conflicts through Clouds

Part 2: 10 criteria to qualify a statement as an UDE; typical mistakes of constructing

UDE CloudsJelena Fedurko

The author of: Behind the Cloud: Enhancing Logical Thinkingand

Through Clouds to Solutions: Working with UDEs and UDE Clouds

[email protected] 2014


Webinar Series: Understanding Systems and Conflicts through Clouds Part 1: Reasons and triggers for different Cloud types; sequence of constructing; typical mistakes

23 Jan 2014 Part 2: 10 criteria to qualify a statement as an UDE; typical mistakes of constructing UDE Clouds

30 Jan 2014Part 3: Challenges of cloud consolidation process; working with assumptions

6 Feb 2014


Brief recap on Webinar Part 1: Reasons and triggers for

different Cloud types; sequence of constructing;

typical mistakes


We use Clouds when we identify that we have a problem this happens every time when we find ourselves in a certain situation while we would like to be in a different situation

Triggers for different Cloud types

On one hand I want that, on the other hand I want to / feel forced to / should do that

I want that, THEY want that

The current performance measurements are perceived low (numeric value) because we want/are forced to meet higher level of measurement

I had to interrupt what I was doing to put out a fire

Internal Dilemma/Conflict Cloud

Day-to-Day Conflict CloudOrganizational Interest Conflict Cloud

UDE CloudConsolidated UDE Cloud

Fire-Fighting Cloud


D

D

A

C

B 1

2

5

3

4

Different Cloud types have different sequence of building

Inner Dilemma/Conflict Cloud Day-to-Day Conflict Cloud & Organizational Interest Conflict Cloud

D

D

A

C

B2

4

5

3

1UDE Cloud

D

DA

C

B 3

2

5

4

1Fire-fighting Cloud

D

DA

C

B1

2

5

4

3


D

D

A

C

B 1

2

5

3

4

Inner Dilemma/Conflict Cloud

Day-to-Day Conflict Cloud & Organizational Interest

Conflict CloudD

DA

C

B1

2

5

4

3

The conflict is evident and easy to record.The FORCED action is very clear and we do not like it, but consider it.We are in a DILEMMA. The main focus is on the CONFLICT.

This conflict is also evident and easy to record.We are NOT in a dilemma. We want to fight for our position against THEIR position. The most challenging is to determine THE COMMON OBJECTIVE.

These conflicts are relatively easy to record. They are on the surface, and thinking about the situation is triggered by evident contradictions.

RECAP


Clouds that are not that simple to construct

D

D

A

C

B2

4

5

3

1UDE Cloud

D

DA

C

B 3

2

5

4

1Fire-fighting Cloud


D

D

A

C

B3

2

5

4

1

What need of the system is jeopardized

by the fire?

What need of the system is protected

by this rule?

What rule prevents the Lieutenant from putting out the fire?

The Lieutenant breaks the rule

(check that it will put out the fire).

What is the lowest objective of the two

needs?

Source: Goldratt Satellite Program, Session 7, Managing People, 1999

Fire-fighting Cloud


D

D

A

C

B3

2

5

4

1

Maintain good customer

relationships

Only Customer Account Manager

makes all calls to the customer

Allow the shipping person to call the

customer

Have a high level of customer service

Fire-fighting Cloud

Ensure on time shipment to the

customer


by this rule?



needs?


by the fire?

The Lieutenant breaks the rule



D

D

A

C

B3

2

1

4

5D

D

A

C

B4

2

1

3

5

The sequence presented in the Goldratt Satellite Program

The sequence that is easier for me to use

Fire-fighting Cloud


D

D

A

C

B

3 2

5

41


by the fire?


by this rule?

Demand that subordinates strictly follow the rule that

prevents putting out the fire


needs?

Allow subordinates to disregard the rule that prevents putting

out the fire

Fire-fighting Cloud (sequence 2)INSTEAD OF ORIGINAL

GUIDELNES FOR D: The Lieutenant breaks the rule


INSTEAD OF ORIGINAL GUIDELNES FOR D:



D

D

A

C

B4

2

5

3

1

Maintain good customer

relationships

Demand that only Customer Account Manager makes all

calls to the customer

Allow the shipping person to call the

customer

Have a high level of customer service

Fire-fighting Cloud (sequence 2)

Ensure on time shipment to the

customer


by this rule?


needs?


by the fire?

Allow subordinates to disregard the rule that prevents putting

out the fire

Demand that subordinates strictly follow the rule that

prevents putting out the fire


D

D

A

C

B

3 4

5

21Why is this UDE

undesirable what important need of the

system does it jeopardize/endanger?

What other important need

prevents you from always taking the

action in D?

What action do you take to meet this other

need in C?

What is the common objective achieved with both

B and C?

What action do you take to meet the

jeopardized need in B?

ENDANGERS

UDEUDE Cloud


The fire-fighting Cloud is triggered by a fire that has recently happened in the system. This analysis comes from the realization that the fire in the system did not happen on its own, but was caused by some element in the system either because of existence OR lack of a certain procedure, or by violating an existing procedure and lack of mechanism to prevent such violation. The main focus is on the endangered need and what has caused the fire.

To record these conflicts requires deep and concentrated thinking. The main focus is on the endangered needs of the system.

Fire-fighting Cloud RECAP

D

DA

C

B 3

2

5

4

1

The UDE Cloud is used for system analysis.The conflict two conflicting modes of behaviour of the system is not evident and not easy to verbalize.The analysis is triggered by realization of the GAP between the current level of system performance and the desired/required one.The GAP is verbalized as UnDesirable Effects (UDEs). The major effort goes on verbalizing what important need of the system is endangered by the identified UDE.

UDE Cloud

D

D

A

C

B2

4

5

3

1UDE


Working with UDE Clouds


What triggers an UDE Cloud?

The GAP the difference between the desired andactual levels of performance of the system.

GAP

The existence of the Gap means that there are some persistent problemsin our system that prevent us from closing the gap and reaching the levelof performance that is desired or expected. These reoccurring problemsare called UnDesirable Effects UDEs.


1 List of UDEsUDE1: xxxxxxxxxUDE2: xxxxxxxxxUDE3: xxxxxxxxxUDE4: xxxxxxxxxUDE5: xxxxxxxxx

2

UDE

UDE

UDE

UDEUDE

UDE

UDE Map

3DD

DDCC

BBAA

DD

DDCC

BBAA

DD

DDCC

BBAA

UDE X UDE Y UDE Z

DD

DDCC

BBAA

4

DD

DDCC

BBAA

UDE

?5 6

DD

DDCC

BBAA

UDE DD

DDCC

BBAA

DD

DDCC

BBAA

Process of identifying UDEs and building UDE Clouds

Jelena Fedurko, Through Clouds to Solutions,


1. It is a simple statement and it cannot contain Cause & Effect relationship.

2. UDE is a an ongoing problem that exists in your reality because of which you cannot perform better.

3. It is a description of the state not a one-time action (its wording cannot have verbs like get, go etc).

4. It is within your area of responsibility.5. Something can be done about it. 6. It must not be blame.7. It must not be a speculated cause.8. It must not be a hidden solution (wishful thinking of solving the

problem). 9. It does not require a clarification of its negative impact/effect. 10. It must not be subjective it should not contain such adjectives

as difficult, hard, poor, etc.

10 Rules for Wording UDEs10 Rules for wording UDEs


Statement 1: Although this would be sensible it is not possible to switch jobs from one machine to another due to technical reasons.(1) The sentence contains causeeffect relationship due to (violates Rule 1).Rule 1 clearly states that it should be a simple sentence with only one pair consisting of a subject and its corresponding verb. In this sentence we have three parts and three subject-verb pairs.(2) It is not clear what is the negative impact of not being able to switch jobs between the machines (violates Rule 9). (3) It leaves an impression that not possible to switch jobs from one machine to another is a speculated cause (violates Rule 7). However, without knowing the environment it is difficult to suggest what the closest effect is. Most likely it is an issue of capacity:a) a switch over to another machine may be needed to prevent an interruption to the flow when the regular machine is down/ maintained; or b) the regular machine is a capacity constraint and is needed to produce more lucrative orders that cannot be produced on other machines. If the issue is capacity, a possible generic UDE wording could be: Machines are not available when needed. Statement 1 does NOT qualify as an UDE.

10 Rules for Wording UDEsCan we qualify these statements as UDEs?


Statement 2: When we attempt to meet the DDP (Due Date Performance), we incur additional cost because we have to locally purchase SKUs.

Statement 2 does NOT qualify as an UDE.

(1) The sentence contains causeeffect relationship because we have to (violates Rule 1).(2) The sentence has three subject-verb pairs (violates Rule 1).(3) One can make a comment about the not really negative nature of the issue as it is presented in the current wording (violates Rule 9). However, if we understand the word additional as decreasing planned throughput then it is negative.

Keeping this comment in mind and having removed causalities, we can accept the resulting wording We incur additional costs for locally purchased SKUs as an UDE.

10 Rules for Wording UDEsCan we qualify these statements as UDEs?


The key processes of working with UDE Clouds are: identifying and wording several UDEs constructing each individual UDE Cloud in such a

way that it will manifest its respective UDE and is logically sound

consolidating UDE Clouds to identify a more generic Cloud

revealing assumptions justifying logical connections challenging assumptions and finding a solution

through designing an Injection/set of Injections.

The key processes of working with

UDE Clouds


D

D

A

C

B

3 4

5

21ENDANGERS

UDE: Identify 1 UDE and build your UDE Cloud

Why is this UDE undesirable what

important need of the system does it

jeopardize/endanger?

What action do you take to meet the jeopardized

need in B?

What is the common objective

achieved with both B and C?

What other important

need prevents you from always taking the

action in D?

What action do you take to meet this other need in C?


There are three problematic areas: - while building an UDE Cloud

difficulties to determine what is in box B difficulties in wording C as a systems Need

- while consolidating difficulties in finding a common aspect among the

consolidated entities.

The problematic areas in working with

UDE Clouds


UDE: In the last year sales to new customers were UDE: In the last year sales to new customers were very low.

DAttract more

new customers

BIncrease sales

to new customers

ENDANGERS

Such UDE Clouds do not really help typical mistakes while

building an UDE Cloud. Example 1.

Example 1

Why do we say that there is a mistake? Where is the mistake?



DAttract more

new customers

BIncrease sales

to new customers

ENDANGERS

Why such wording of B is

a mistake?



This UDE is undesirable because the sales to new customers are low. We may find it undesirable only if the desirable state is to have more sales to this

specific group new customers. UDE and B are simply a mirror reflection. Box D adds an aspect of quantities in terms of number of new customers, which

gives more clarity of where the system wants the focus of activities of sales people to be attracting new customers vs, for example, increasing sales/contract size with the new customers.

B is not helpful. If B is not corrected, the only hope to get a better understanding of the situation is if the user manages to properly surface assumptions behind B-D.

Example 1



DSell more to

new customers

BMeet sales

targets

ENDANGERS



Example 2Another B and another D

Why do we say that there is a mistake? Where is the mistake?



DSell more to

new customers

BMeet sales

targets

ENDANGERS



Why such wording of D is

a mistake?

This UDE is undesirable because the sales to new customers are low. If we want to correct something undesirable we usually take the

actions to remove it. If sales numbers from a specific group is low and we want them higher the only action that could be done is to sell more to this group. UDE and D are simply a mirror reflection.

Box B is good enough, as it shows a specific need to comply with the measurements and management expectations.

Example 2



DMotivate salespeople

to put more effort to obtain

new customers

BIncrease sales

to new customers

ENDANGERS



Example 3


UDE: In the last year sales to new customers were very low.

DMotivate salespeople

to put more effort to obtain

new customers

BIncrease sales

to new customers

ENDANGERS



Why such wording of B and D is a mistake?

UDE and B are simply a mirror reflection, as discussed earlier. Box D is the rephrasing of Sell more to new customers. Motivate sales

people to put more effort means push them to take actions to sell more, for a salesperson to obtain new customers is meaningful only if the sale can be done.

The three entities UDE, B and D are a complete repetition of each other.

Example 3



DB

?

ENDANGERS

What should be in B?

Meet sales targets Ensure expected contribution to the

budget Maintain market share Be the market leader Prevent competitors from growing Increase sales efficiency Ensure continuous innovation

What important need of the system

could be endangered by this

UDE?



DB

?

ENDANGERS

What should be in B? (continued)

Meet sales targets a valid need of a head of the system to comply with the measurements and management expectations.

Ensure expected contribution to the budget more of a concern about the financial health of the whole system.

Maintain market share a strategic concern, implies heavy competition. Be the market leader a vision, securing the future, vanity. Prevent competitors from growing securing future, strong implication of the

danger from competition. Increase sales efficiency further in the process of surfacing assumptions behind B-

D, it will be revealed whether it is cost mentality or ROI mentality with effort being interpreted as investment.

Ensure continuous innovation the focus is on new customers as agents of bringing new ideas for the company to be on the leading edge of technology or creativity.

The identified needs are different in nature some are more generic, some more specific in relation to new

customers. Every identified need has its background.



DDo aggressive

advertising

BMeet sales

targets

ENDANGERS

Identifying C in an UDE Cloud

What we write in D should be NOT anything, but related to this UDE

C

?3. What other important need prevents you from always taking the action in D?

1 2

3



DDo aggressive

advertising

BMeet sales

targets

ENDANGERS

Typical mistake in wording C in an UDE Cloud

What we write in D should be NOT anything, but related this UDE

CIt increases

our expenses

Very often in the process of filling in Box C, the person building the cloud instead of answering the question What other important need prevents you from always taking the action in D?

answers the question Why cant we do D all the time?

TO DO THIS IS WRONG!

1 2

3

BECAUSE the resulting answer will give the wording of the NEGATIVE OUTCOME of doing D, but NOT the POSITIVE NEED OF THE SYSTEM that D endangers.



DDo aggressive

advertising

BMeet sales

targets

ENDANGERS

Typical mistake in wording C in an UDE Cloud

CIt increases

our expenses

If you have made this mistake reword the negative outcome of D that you wrote in C as a positive need of the system.

Use the phrase

We cannot always do D,

BECAUSE WE MUST

1 2

3

CControl cost

CSpend money

sensibly

ORC

Insufficient response

to advertising

Typical signals of putting in C a perceived negative outcome of D: - no verb in the

wording;- a full sentence

starting with we will, we may, it increases, it will, it may


Jelena has 14 years of TOC experience as atrainer and consultant providing support in TOCimplementations in the areas of production,supply chain, project management, sales,marketing and people management.Jelena has worked in Japan, Poland, Turkey, Italy,Russia, Ukraine, India, China, Chile, Colombia,Mexico and other countries throughout the world.Jelena is the author of the books Behind theCloud Enhancing logical thinking and ThroughClouds to Solutions. The books present newdevelopments in the area of working withassumptions and UDE Clouds.Together with Oded Cohen, Jelena has co-authored the book Theory of ConstraintsFundamentals.She has authored numerous articles on TOCconcepts and implementation, has written severalchapters in TOC books and has edited a numberof TOC books and publications.Jelena is International Director of TOC StrategicSolutions Ltd and Founder and Co-President ofTOCPA.

[email protected]

www.tocpractice.com

Jelena Fedurko

Jelena Fedurko_TOCICO 2014_Webinar Series_Part 2_30 Jan 2014

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