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    1

    Session Code: DJ

    Power of Observation: What

    Purchasers Can Learn From Darwin

    Thomas L. Tanel, C.P.M., CISCMPresident & CEO

    CATTAN Services Group, Inc.

    Monday, April 29, 2013

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    y p

    Power of Observation:

    What Purchasers CanLearn From Darwin

    Session Code-DJ

    ISMs 98thAnnual International Supply

    Management Conference

    April 29, 2013 Grapevine, Texas

    Thomas L. Tanel, C.P.M., CTL, CCA, CISCM ,

    CATTAN Services Group, Inc.College Station, TX

    [email protected]

    Created by CATTAN Services Group, Inc. 2009

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    The Power of A Theory and Darwins

    ObservationsPower of a theory

    =

    That which it explains

    That which it needs to

    assume in order to dothe explaining

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    Darwin and the Power of Observation

    Here was a man who applied his powers ofobservationand rigorous testing to everything helooked at in great detail, from the movements in

    plants and barnacles, to how pigeons navigate, to theimportance of earthworms in soil health and ecology.

    The essence of Darwinism is nothing more than, that

    simple-minded observation, as near as we can tell.

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    Darwin and the Power of Observation

    What Darwin did formost of his careerwas observe.

    Only later on did hecome up with atheory to explain his

    observations.

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    Five Darwinian Suggestions for

    Improving Your Power of Observation

    Spend time in meetings carefully observing

    people talking

    Spend time in meetings watching how othersreact to those speaking

    Find ways to test your observation hypotheses

    Find ways to test your hypotheses by askingquestions

    Watch higher ups carefully

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    Darwin and Survival of the Fittest

    It is so simple that in the guise of survival ofthe fittest (the renaming that Darwin adoptedfrom Herbert Spencer): the fittest are defined asthose that survive, so the catchphrase amounts tothose that survive, survive.

    But Darwin didnt define the fittest as those thatsurvive. His fittest were those endowed withthe best equipmentto survive, and that makes allthe difference.

    As Darwin observed(and he himself was atpains to point out), natural selection is all aboutdifferential survival within species, not betweenthem.

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    What Do You See?

    Which image?1. An old lady

    2. A youngwoman

    3. A man with a

    big brownmustache

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    What Do You See?

    Which image?1. Old man and

    woman2. Two men in

    sombreros

    3. A woman inthe doorway

    4. A cup

    5. All 4 images

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    Observations

    An observationis an experience perceived

    through one or more senses.

    Observations are using one or more of the five

    sensesto gather information.

    Observation is stating a given factthat has

    nothing to do with your opinion.

    A noting and recording of. FACTS!!!

    Example: There is one instructor in the room.

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    What Do You Observe?

    A

    Rabbit

    or aDuck?

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    The Power of Observation

    Charles Kettering, the famous inventor, once said: A problemwell stated is a problem half solved.

    This implies that a good portion of problem solving should be

    devoted to a thorough understanding of whats going on[observation] before any corrective action steps are taken.

    In many cases, too much time is spent on proposing varioussolutions before the problem has been correctly defined.

    Observationis a powerful technique that can be used to helpunderstand problems. Often, clues about how to solve a

    problem can come from simply observingthe process.

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    What Do You Observe?

    A Womanat a

    Vanityor a

    Skull?

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    Tips for Making Observations

    Use all of your senses (sight,hearing, touch, and smell) to makequalitative observations.

    Review your observationsto be surethey are accurate and objective.

    Whenever possible, count or usemeasurement devices to makequantitative observations. Be sureto include units of measure with

    them. Check your observationsto be sure

    that they are statements aboutinformation gained through yoursenses, not explanations of what you

    observed.

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    Inferences

    An inferenceis an explanation or interpretationof anobservation

    To infer means to construct a linkbetween what is

    observeddirectly and what is already known from

    past experience

    An inference isNOTa guesssince a guess is an

    opinion formed from little or no evidence.

    A recording of data or an event that you witness orstudya CONCLUSION drawn.

    Example: When you entered the room, you most

    likely inferred that the individual in the front of the

    room is the instructor.

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    The Inference Formula

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    Observation versus Inference Examples

    OBSERVATION INFERENCE

    The brass knob on that door isnot bright and shiny.

    The office is not used often.

    There is a spot in my frontyard where grass does notgrow.

    Someone may have spilled atoxic substance there.

    I see that iodine turns purplewhen I put it on a potato chip

    The chip has starch in it.

    Through the window I see theflag waving

    It must be windy out.

    The fishes are floating on topof the tank

    Perhaps no one fed the fish

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    Steps in Inferring

    1. Make as many observationsabout the object or event aspossible.

    2. Recall from your experiencesas much relevant informationabout the object or event and integrate that information withwhat you observe.

    3. Stateyour inference in such a way that clearly distinguishes itfrom other kinds of statements (observation or prediction):

    From what I observe I infer that From those observations it can be inferred that

    The evidence suggests that .. may have happened.

    What I observe may have been caused by .

    A possible explanation for what I see is that .

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    Look at these two sets of

    animal tracks.

    List 3 OBSERVATIONS

    Make 2 INFERENCES

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    Observation and Inference ActivitySelf-Check 1

    Observations Inferences

    One set of prints is smaller than

    the other

    One animal is smaller than the other

    The small and large prints areheaded in the same direction

    Both are walking toward something

    There are three toes for eachprint

    Both animals are birds

    The small and large prints get

    closer to each other

    The large animal is pursuing the

    small animal

    Both are walking in a gully

    The larger prints get fartherapart

    The larger bird is going downhill

    The larger bird is running

    The larger bird is stepping over

    stones

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    Now what do you think?

    Make 2 OBSERVATIONS

    Make an INFERENCE

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    Observation and Inference ActivitySelf-Check 2

    Observations Inferences

    The prints converge The larger animal catches and either

    eats or carries off the smaller animalThe animals were there at differenttimes

    Both animals discovered food in thesame place

    The prints become allmixed up

    The animals were milling about

    The animals were fighting

    The smallerfootprints get furtherapart

    The smaller animal begins to run

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    Now what do you think?

    Make an OBSERVATION

    Make 2 INFERENCES

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    Observation and Inference ActivitySelf-Check 3

    Observations Inferences

    The small tracks stop The larger animal ate the smaller one

    The smaller animal flew away

    The snow at this point become crustyand the smaller animal was not heavyenough to make tracks

    The large prints areclose together

    The large animal was walking ratherthan running

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    Thin-Slicing and the Power of

    ObservationBoth "thin-slicing" and using the power of

    observation, are concerned with the challengeof identifying and focusing on only the mostsignificant information.

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    Marcus Aurelius on Observation

    Observe constantly that all thingstake place by change, and accustom thyself

    to consider that the nature of the Universeloves nothing so much as to change thethings which are, and to make new things

    like them.

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    Observation in the Land of the Blind

    In the land of the

    blind the one eyed

    man is king.

    The thing is, the

    saying isn't about how

    many eyes you've got,or how good they are,

    it's about how well

    you use them.

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    Lets Test Your Observation Power:OuchOut of the Ring

    Can you delineate just one perfect square (the ring) by connecting

    all 8 dots together?

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    Lets Test Your Observation Power:OuchOut of the Ring

    Can you delineate just one perfect square (the ring) by connecting

    all 8 dots together?

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    Observation in the Land of the Blind:Wake Up and Take Notice

    So the ability to be blind to most of

    what we see and deaf to most of

    what we hear is quite useful. It

    helps us get by in life.

    Whatever our role we tend to be so

    busy just getting along that we

    rarely make the time to sit up and

    reall y take notice.

    We are in the habit of not looking,

    of not hearing, and of not noticing.

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    Lets Test Your Observation Power:Bermuda Triangle

    Read attentively the article of the journal below and detect any incongruity!

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    Practice Observation In the

    Land of the Blind Pierre Wack, the influential scenario

    planner used to refer to himself as theeyes of the wolf at the front of the packat Royal/Dutch Shell.

    His view was that: "Scenarios help us tounderstand today better by imaginingtomorrow, increasing the breadth ofvision and enabling us to spot change

    earlier Effective future thinkingbrings a reduction in the level of crisis

    management and improvesmanagement capability, particularlychange management."

    Observationis probably

    the most succinctdescription there is of the

    practice of scenario

    planning.

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    Lets Test Your Observation Power:Just Red

    How many "red" words are in the sentence below?

    First of all, I would redefine theconcept of thegreensynthesis, be

    causeI don't want to reduce this

    to an obviousstatement andswear that black is white.

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    Lets Test Your Observation Power:Just Red

    How many "red" words are in the sentence below?

    First of all, I wouldred

    efine the

    concept of thegreensynthesis, be

    causeI don't want to reduce this

    to an obviousstatement andswear that black is white.

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    Lets Test Your Observation Power:Coca Cola

    Read quickly the text in the small poster below.

    Do you notice something strange?

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    Lets Test Your Observation Power:Ants Reckoning

    At first glance, guess which color ants are the

    most numerous?

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    Lets Test Your Observation Power:Comparing Patterns

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    Lets Test Your Observation Power:

    ComparingPatterns

    Background Texture

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    Observation and Seeing:

    Whats Invisible?

    As Jonathan Swift said: vision isthe art of seeing things invisibleto others.

    And why does so much ofwhat's in front of us seeminvisible?

    Well, perhaps becausepeople

    only see what they are preparedto see(Ralph Waldo Emerson),and because what we seedepends mainly on what we look

    for (John Lubbock).

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    Have You Become Truly Observant?Find the Arrow on the FedEx Truck

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    Have You Become Truly Observant?Find The Hidden Tiger

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    Have You Become Truly Observant?How Many Human Faces Can You See?

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    How Many Human Faces Did You See?Look at the Red Dots on Nose

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    Techniques to Become Truly

    Observant

    Become hyper-observant of the more discreet elementsof your everyday environment

    Look for patterns amidst your everyday routines

    Regard anything out of ordinary patterns as possibly arisk or intentional distraction

    Focus on incongruent people, equipment, processes,methods, material flow, etc.

    Look beyond what you are shown or told, and

    Do not tune out familiar surroundings---look deeperfor things that you may have missed

    H Y B T l Ob ?

    http://assets.hulu.com/shows/key_art_i_spy.jpghttp://assets.hulu.com/shows/key_art_i_spy.jpg
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    Have You Become Truly Observant?

    Take a Good Look at this Picture

    Well, Have You Really?!?

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    Do You Think Like Sherlock Holmes?

    To both see and observe:

    Therein lies the Sherlock Holmes secret.

    The confluence of seeing and observingis central to the concept of mindfulness:

    A mental alertness that takes in the present

    moment to the fullest, andAble to concentrate on its immediate

    landscape and free itself of any distractions.

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    How to Think Like Sherlock Holmes

    Mindfulness

    Inattentional

    Blindness

    Selective

    Looking

    Cognitive

    Vigilance

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    Have You Become Like Holmes?Are These Dots Moving?

    Essentially, Holmess message is one of focus.

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    Distinguishing Between Facts

    and Inferences

    Statement of Fact Statement of Inference

    Made after observation orexperience

    Made anytime---before, during orafter observation

    Confined to what one observes;cannot be made about the future

    Goes beyond what one observes;may concern the past, present orfuture

    Limited number possible Unlimited number possible

    High probability, not certainty as

    perception depends on personsinterpretive processes

    Represents some degree of

    probability

    Tends to bring people togetherand further agreement

    Tends to create distance betweenpeople and more likely to causedisagreement

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    Distinguishing Between Facts and Inferences

    Read the story that follows carefully. When you are finished, decide how you

    would classify the statements that follow on the next slide.Brown, a section supervisor, called to an employee who was coming

    through the door twelve minutes after starting time. Brown asked the

    employee to come into his office, and said: Iam glad to see that you were

    able to make it in today despite the transportation problems. I have been

    thinking about talking to you concerning your many latenesses andabsences. As you know, we have specific rules here that say that an

    employee must call in if he or she expects to be more than ten minutes

    late. I have to begin to take some corrective steps when an employee is

    late more than three times in any one month. I know that getting your

    two children to school sometimes makes it difficult for you to come in on

    time, but still I must ask you to do something to avoid this situation in the

    future. The rules provide for a written warning and then suspension

    before dismissal. If you continue to be absent or late, I will have to follow

    these rules, much as I regret to do it. Please help me avoid such

    unpleasantness.

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    Fact or Inference?a. The employee referred to in the story was late that day.

    b. The employee is a woman.

    c. There were transportation problems affecting the employee that day.

    d. The rules of the company call for a warning after three or more latenesses in

    one month.

    e. Brown should give a written warning this time or at the employees next lateness

    if company rules are to be complied with.

    f. The employee in the story has two children.

    g. The employee sometimes takes the two children to school in the morning.

    When you have checked your choices above, think of one additional fact from the

    story________________________________________________________________.

    Creativity and Innovation

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    Creativity and Innovation

    In any organization today, sooner or later the words

    "innovation" and "creativity" will come up.

    Few leaders truly know how to foster creativity and

    innovation in their workplace.

    And even fewer actually do it!!!

    "The way forward is paradoxically not to look ahead,but to look around [observation],"explains John Sealy

    Brown, the director of the Palo Alto Research Center

    (PARC) for Xerox.

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    Critical Thinking

    i i l d d i

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    Einstein on Knowledge and Experience:Seeing Things Before They Happen

    Albert Einstein once said, The only source of

    knowledge is experience.

    Experience allows us to use both our

    education and our observationsto gain a

    greater understanding and become a morevaluable resource for others.

    ll d i hi ki

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    H.G. Wells on Inductive Thinking:Seeing Things Before They Happen

    H.G. Wells argues that inductive thinking allows one tobuild up an understanding of the broad outlines of futurehistory by the comparison and criticism of suggestive

    facts.

    Wells suggests using existing or researched information toinfer a future state of affairs.

    He proposes that such inferences can be reasonablyaccurate.

    U i Ob i S O i i

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    Using Observation to See Opportunities

    and Problems Before They Happen

    Trouble Down the Highway

    Th B fi f E h d

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    The Benefits of Enhanced

    Darwinian Observation Skills

    Better understanding of colleagues, suppliers, bosses,

    service providers, and allied functions

    Improved decision making skills

    Recognizing and emulating 'success behavior'

    Learning the best ways to help people

    Learning the best ways to influence people

    Finding new ways to solve persistent problems

    Seeing opportunities and problems before they happen

    Louis Pasteur gave us this aphorism: In the field of observation, chance favors only the prepared mind.

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    Go to The Source for Better Decisions:

    Seeing Things Before They Happen Make it routine to go to as many

    individuals directly influenced bythe issue so you can see firsthandand fully understand the subtledetails, realties of a situation andtheir histories of the future.

    Keep informed about the future and

    new trends.

    Get out and visit your supply chainboth internally and externally---observe.

    There is no phenomena unless

    it is an observedphenomena.

    John Wheeler

    Observation and the Periphery:

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    Observation and the Periphery:

    Seeing Things Before They Happen

    Valuing the peripheryrequires a seismic shift inorganizational thinking.

    Instead of considering any deviation from standard operating

    procedure to be irrelevant, excessive or unnecessarilyexpensive, organizations must begin to viewsuch variances asportals to the future.

    With wide eyes and an open mind, they must actively and

    systematically extend the range of observationoutward,beyond the comfort of the known.

    Those who do not pay attention to the peripheryare soonovercome by the waves of change.

    B i Fit t Rid th W f Ch

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    Being Fit to Ride the Waves of Change:

    Seeing Things Before They Happen

    Surfs up! Its time to grab the board, hit the water, and ride those waves.

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    Thank You !