The rules of the system dictate the results Rules are an essential part of every business system as they create a measure of predictability and continuity of outcomes by governing the actions of people, software, equipment and machinery. Some rules are expressly defined, some are implied, others are assumed and they all vary in terms of flexibility. There will also be certain areas of the business where, by design or omission, the rules are unclear, ambiguous or do not exist at all, which in themselves constitute governing rules of the system.
But the rules I am referring to are not limited to policies, procedures, controls and processes that would typically be documented, because the rules that govern an organisation’s performance also extend into the murky territory of the beliefs, perceptions, prejudices, preferences, values, insecurities and fears
unique to each employee and
stakeholder. When we consider that an organisation’s performance, profitability and competitiveness are bound by the rules that define it, we can see that in order to improve these outcomes, we cannot do so within the same set of rules.
Using deconstructive innovation to uproot the root cause
Deconstructive innovation is a methodical process aimed at helping leaders retrace their steps and navigate their way through the complex minefield of visible and invisible rules that govern their business, helping them identify and rectify the rules that no longer serve the system.
The process involves working backwards
from the observable problem until you find its origin. At each preceding process, you start by identifying the purpose of the process and then identify the extent to which the rules
The Innovation Journal
(or lack thereof) governing that process are supporting or hindering its purpose. If you do not find conflicting or omitted rules serious enough to be the cause of the problem, move on to the next preceding process.
Repeat this exercise, reversing through the value chain until you uncover the singular or compounded origin of the problem across one or more processes respectively. Finding the defective or missing rules is the hardest part, because once you have identified the root cause of the problem, invariably the solution becomes self evident. Problems are not solved by searching for solutions, but by asking the right questions and this process helps you do just that.
The solution can be as simple as redefining or eliminating the offending rule, or it can be as cumbersome as redesigning an entire sub- system of the business, replacing equipment or technology, or shutting down and outsourcing a department or function. You will never know how far the rabbit hole goes until you climb in.
The cost of redundant rules An example of a problem I still encounter regularly is leaders who struggle to identify service or operational issues quickly enough to salvage the situation or implement damage control measures. Nine times out of ten, the deconstructive innovation process leads to the diehard legacy of monthly reporting as a key contributor to the problem.
As long as managers continue to receive critical operational feedback up to 45 days after the fact, they will continue to operate with their hands tied behind their back. Yet, despite the availability of technology to solve this problem, real time reporting remains the exception because businesses are still bound to an old standard that was relevant in the 20th century, but which is now redundant. September 2012 | Management Today 49
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