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Decurion Journey

v2
by

Bryan Ungard

on 21 November 2012

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Transcript of Decurion Journey

Providing Places for People to Flourish Decurion's Operating Philosophy Developmental Level Business Competance Ideas Commitments Practices Guiding Ideas ArcLight Cinemas Properties Group Nothing becomes real unless you practice it. “Learning without reflection and practice is not real learning”
- Thich Nhat Hanh Acknowledge and manage both the tangible and intangible Ken Wilber Principles, Practices, & Guidelines of Learning Community Authentic
Community Chaos Emptying Pseudo-Community (cc) image by nuonsolarteam on Flickr M. Scott Peck Working with Essence Why What How Operational Activities as a Curriculum Using the Everyday Challenges of Business
to Transform
Individuals and Organizations The Dual Bottom Line The Five Practices of Context A Development Curriculum for Everyone Business Competance
Servant Leadership
Community Building
Personal Excellence
Professional Disipline Self Management People Naturally Develop Don Beck A Stage IV Company Structure Drives Behavior Scaffolding for Development 100 Year Play Developmental
States & Stages Dual Bottom Line Nothing Extra Purpose & Values
Based Organization 100 Year Thinking Seven Generations Selling Experience Developmental Paths Business Requirements
Approach Systematic & Rigorous Non-person Dependant World Class Operations Stage IV Leadership Conscious Infratructure Senior Living Financial Return
and
Individual and Collective Development Leading Self Leading
Others Leading
an
Organization Structural law states that energy follows the path of least resistance. The underlying structure determines behavior You can change the underlying structure to form a new path of least resistance. There are two types of structure. Structural tension leads to advancement, a process of continual improvement. Structural conflict leads to oscillation, a pattern of advancement followed by a setback. It’s the one-step forward, one-step back syndrome. Adaptive vs. Technical
Change Decurion's System of Management Guiding Ideas Decurion's Why Purpose Values Axioms People are not only means but also ends in themselves.

Individuals and communities naturally develop.

Work is meaningful.

Pursuing human development and profitability emerges as one thing—nothing extra is required. Excellence

Respect

Clock Building

Servant Leadership

Learning

Compassion If we can’t be proud of it, we don’t want to do it. We feel a responsibility to treat people with fairness and decency. We believe in managing and building this company to last at least through the next century. We feel an obligation to contribute to the communities in which we operate. We care about people. We believe in providing an opportunity for individuals to develop, grow, and contribute. To Provide Places for People to Flourish 1992 2010 ArcLight's Why ArcLight's What ArcLight's How Senior Living's Why Senior Living's What Senior Living's How RPG's Why RPG's What RPG's How Pacific Theatres To Provide a Place for People to Flourish and to Enhance the Community To Provide Places for People to Flourish What are
we doing about
what's happening
in the world? Business is Everywhere Business now pervades almost every aspect of our lives Business is the most powerful institution in the world today Business is producing dramatic results in the world Capitalism - A Force for Good or Evil? Many people maintain that because the sole legal purpose of a corporation is to maximize profit, the system is corrupt and drives behavior that causes suffering. Capitalism has driven (or at least been a big part of) dramatic improvements:
Longevity has almost tripled
World hunger is declining
Poverty has been dramatically reduced (85% to 20%)
Worldwide illiteracy is steadily decreasing
Human rights are expanding
Political freedom is increasing
Life satisfaction (self reported) is increasing
We are more connected and interconnected than ever before Serious issues are becoming obvious:
75% of the forests are gone
30% of arable land is gone
90% of large mammals have disappeared in the last century alone
95% of large fish are gone
Half of all species alive today are likely to disappear in 50 years
The toxic burden on humans is rising
Since1980, we’ve been using more than nature can renew
New forms of control, manipulation, and aggression are common

Business is viewed with suspicion and mistrust:
Occupy Wall Street “The whole growth model we created over the last 50 years is simply unsustainable economically and ecologically…Both mother nature and father greed have hit the wall at once." -- Thomas Friedman, March 7, 2009 Big business is the societal institution least trusted by Americans at 16%. (Congress was at 17%). -- Gallup, 2009 "A conscious business fosters peace and happiness in the individual, respect and solidarity in the community, and mission accomplishment in the organization." -- Fred Kofman, Conscious Business Quotations The Most Dramatic Improvements
Ever to Human Life Capitalism as the greatest system of social cooperation ever invented. Conscious Capitalism Capitalism privileges loving systems. Lets look at another possibility Capitalism is an inherently altruistic system that privileges those who serve others. The determining factor is the developmental level (consciousness) of the participants. Our Hypothesis: How is Business Run Now? The daily existence inside our institutions (not just business) is one of suffering. It is a daily encounter with manipulation, control, and isolation. An inherent lack of freedom. We see the mass of people leading lives of quiet desperation. Results, Not People Transformation A Focus on Transformation But Where is the Change? There is a
better way to
run a business Profitability and Human Development We believe there is no tradeoff between them. This suffering shows up in common notions such as:
Work/life balance
Work to live rather than live to work
Thank God It’s Friday In some way our relationship to work is one that reduces us rather than completes us.
Our workplaces are not places of flourishing. Its been more than 20 years since:
Peter Senge wrote The Fifth Discipline
Since Pegasus and the SoL were founded There are thousands of books on
Leadership
Culture Change
Innovation
and Breakthrough Performance There lots people who specialize in these topics The language of these fields is entering the mainstream Why is there so little evidence that organizations are changing? While fully acknowledging some remarkable accomplishments and amazing success stories, the question still stands: Why aren’t there more? Why aren’t there thousands? Why aren’t there tens of thousands? Why in the face of so much data that a better way is needed, and with methods that we think work, have so few organizations made the leap? Questioning Fundamental Assumptions And we believe that there is no contradiction or trade-off between pursuing profit and human development. We think there are "unspoken" assumptions that pervade our business and social institutions. We think they drive behavior about profit and human development. We believe it’s time for new assumptions that drive different behavior. We believe it’s possible, indeed necessary, for places of business to be places where people can flourish. Transformation requires questioning everything and being willing to change everything. We’ve had to look at our fundamental assumptions and be willing to change them through practice This has been part of our answer And it has led to some remarkable results Business Culture
Norms Assumptions about people and development:

People have limited potential.

Human development is somebody else's job (schools’, churches’, or the therapists’, perhaps).

Human development is too fuzzy to take seriously.

Human development, except for the narrow skills that apply to business, sports, or science, is not appropriate to be dealt with in business. Old Assumption Old Assumption Old Assumption New Assumption New Assumption New Assumption Assumptions about work:

Only some work is meaningful.

You're lucky to get a shot at doing meaningful work.

A career is about doing your time working up the ladder so as to earn your way to substantial, engaging, meaningful work. Assumptions about ends and means:

People are only means to an end.

Results must be traded off for human development.

There is an inherent conflict between profit and human development.

I can either do good or make money, not both. We believe in the full potential of human development. We believe that people are 10 times more capable than they are generally given credit for. We derive meaning from every activity. We believe every activity from cleaning the bathrooms to working with angry customers is meaningful. New assumptions about work: New assumptions about people and development: People are worth developing.


All operational activities are learning and teaching opportunities.


Everything required to develop yourself toward your goals is already right in front of you. New assumptions about ends and means: As a way of practicing with these new assumptions we codified them as axioms—things we hold to be true. We have chosen to hold these new assumptions as both truths and operational design principles. Moving To Action Let's state the "unspoken" assumptions as directly and bluntly as possible. Alive with the celebration of film and community We will act as if they are true. Stage IV Leadership Until one is committed, there is hesitancy, the chance to draw back, always ineffectiveness. Concerning all acts of initiative (and creation), there is one elementary truth the ignorance of which kills countless ideas and splendid plans: that the moment one definitely commits oneself, then providence moves too.

A whole stream of events issues from the decision, raising in one's favor all manner of unforeseen incidents, meetings and material assistance, which no man could have dreamt would have come his way.

I learned a deep respect for one of Goethe's couplets: -- W. H. Murray in The Scottish Himalaya Expedition, 1951. "Whatever you can do or dream you can, begin it.
Boldness has genius, power and magic in it!" “This is the true joy in life, the being used for a purpose recognized by yourself as a mighty one; the being thoroughly worn out before you are thrown on the scrap heap; the being a force of Nature instead of a feverish selfish little clod of ailments and grievances complaining that the world will not devote itself to making you happy.”

-- George Bernard Shaw From “As kingfishers catch fire”

As kingfishers catch fire, dragonflies draw flame;
As tumbled over rim in roundy wells
Stones ring; like each tucked string tells, each hung bell’s
Bow swung finds tongue to fling out broad its name;
Each mortal thing does one thing and the same:
Deals out that being indoors each one dwells;
Selves—goes itself; myself it speaks and spells,
Crying What I do is me: for that I came.

-- Gerard Manley Hopkins Purpose
(Collins and Porras, Built to Last, p. 224)

Purpose “is the organization’s fundamental reason for being.”

“An effective purpose reflects the importance people attach to the company’s work—it taps their idealistic motivations—rather than just describing the organization’s output or target customers. It captures the soul of the organization.”

A statement of purpose addresses the questions: Why not just shut the place down? What would the world lose if it ceased to exist?

“Purpose (which should last at least 100 years) should not be confused with specific goals or business strategies (which should change many times in 100 years). Whereas you might achieve a goal or complete a strategy, you cannot fulfill a purpose; it is like a guiding star on the horizon—forever pursued, but never reached.” Federalism Communal & Hierarchical
Goverance Meaning and the Basics Type II Accountability The Genius of the And According to F. Scott Fitzgerald, the mark of a first rate mind is the ability to hold two contradictory ideas and still function. “The Genius of the And” is a phrase Collins and Porras introduce in Built to Last to describe the aspirations and behavior of their visionary companies. These companies did not succumb to the Tyranny of the Or. They did not assume they could be profitable or idealistic, successful in the short term or the long term, produce products that are differentiated or low cost, give creative autonomy or ensure consistency and control. They did both. And they did so not by balancing one with the other, not by having some of each, but by pursing both completely. They embraced the Genius of the And. Decurion’s Communal Governance Structure:
Councils, Transfunctional Communities, Work Groups, and Project Groups
(6 February 2008)

1) The Decurion Communal Governance Structure includes several kinds of groups.
The Executive Councils set policy, direct and approve single and multi-year KSIs, oversee budgets, oversee projects, and analyze and approve investments.
The Operating Councils implement the AOP and the cascading goals, objectives, and tactics extending from them.
Transfunctional Communities exist at the level of business unit functions. By “trans” functional we mean that they include individual functions that perform well within their functional identity AND that they cross boundaries and operate as unified inclusive communities.
Work Groups and Project Groups are places of Beginner and Intermediate level of practice of the Decurion Fundamentals. They are task-, function-, or goal-oriented groups that are established to accomplish a specific business outcome.

2) When participating in a Council, Transfunctional Community, Project Group, or Work Group, members of the community are required to participate as business people and to act for the whole business.

3) We expect decisions to be made based on the merit of facts and through a process where everyone is equally responsible.

4) We pursue merit and collective intelligence, not consensus. Managing Context Context as the Key to Meaning
(9 September 2002)

The idea that the meaning of a word, idea, or activity could change dramatically depending on the context in which it is expressed may seem counterintuitive. Yet the bark of a dog is different from the bark of a tree. The words are the same, but their meaning is determined by the context in which they occur. Similarly, instructions given to a subordinate have one meaning if delivered in a context of a command and control hierarchical structure and an entirely different meaning if given in a context where everyone understands the values of individual growth and contributing to others.

Context gives meaning to the tasks we perform and is in turn created by the way in which we perform the tasks. We call our approach to creating context “Nothing Extra” because (ideally) we do not work on context and then work on tasks (or vice versa). Instead, we strive to build context through the manner in which we carry out the tasks. Building context is not a matter of thinking or talking: it is a matter of action.


Change the Context and You Change Everything; Use Tasks to Create Context

Context is the ground out of which particulars arise and gain meaning.
When you change the context within which something is embedded, you change its meaning.
The context of a business is the background that constructs how you feel, think, and experience its goods and services. Change the context and you change the business.
Don’t work on tasks; work through tasks on context.
Our first job (regardless of role, title, technical skills, years on the job) is to build a context that conveys to guests who we are and what we stand for.
A context is roughly equivalent to a stage of development. Five Practices of Context
(5 November 2002)

We build context through the way in which we carry out our tasks. Building context is a matter not of thinking or discussion but of action. We have introduced five practices aimed at creating a context consonant with our purpose and values. They are Personal Excellence, Professional Discipline, Business Competence, Servant Leadership, and Learning Community.

One Context—10,000 Tasks:
The Five Practices of Context

Personal Excellence: The practice of using what you are doing as a way to be proud of who you are becoming. It is the habit of doing things exceptionally.

Professional Discipline: Professional behavior marks how we conduct ourselves and complete the tasks for which we are responsible.

Business Competence: The ability to integrate guest service and profitability at ever more mature levels.

Servant Leadership: Everyone leads by being as whole as they can be and doing the right thing for the business.

Learning Community: The basis of our interpersonal relationships, whether with a guest, fellow employee, or the larger society. Excellent, Enduring Institution
(9 September 2002)

One of our goals is to ensure that Decurion and its operating businesses become excellent, enduring institutions. Excellence is one of our core values. We judge ourselves not only by easily measured benchmarks such as the performance of competitors but also by standards we create for ourselves. Are we proud of what we are doing? Are we and others becoming more powerful, more whole, more complete? Are we flourishing? And the notion of an enduring institution ties to our core value of clock building. We seek to create companies that are not dependent on any one person, any one business model, or any one set of circumstances.

Toward a Vivid Description of Excellent Enduring Institution

Excellent: flourishing; excellent with respect to becoming something or someone more whole, complete, or fulfilled; people suited to their fully evolved function or characteristic activity.

Enduring: survives beyond any one person or set of people; sustainable for 100+ years; stewards for future generations of leaders to follow.

Institution: shapes business events without specific people; self-correcting according to market necessities; meta- and parastructures giving rise to competitive business model infrastructures; mechanisms which compel the organization toward the integration of the three circles through generations of management.

Mandate from Decurion to its Operating Companies:

• If it’s an operating company, run it excellently.

• Go beyond this to become an excellent, enduring institution. The “Collins Criteria”

1. Make a significant contribution
2. Generate substantial economic returns
3. Do everything with unadulterated excellence
4. Lend meaning to the lives of persons involved


Jim Collins’s Definition of a Great Institution
(Output Variables)
8 April 2005

Delivers Superior Performance

In business, performance is defined by financial returns and achievement of corporate purpose. In the social sectors, performance is defined by results and efficiency in delivering on the social mission.

Makes a Distinctive Impact

The organization makes such a unique contribution and/or does its work with such unadulterated excellence that if it were to disappear, it would leave a hole that could not be easily filled by any other institution on the planet.

Achieves Lasting Endurance

The organization can deliver exceptional results over a long period of time, beyond any single leader, great idea, market cycle, or well-funded program. When hit with setbacks, it bounces back even stronger than before. “Scaffolding Learning”
(Adapted from Strategic Reading: Guiding Students to Lifelong Literacy
by Jeffrey Wilhelm Tanya Baker, and Julie Dube)


• Vygotsky’s notion of instruction would have teachers doing complex tasks in meaningful contexts with students helping as much as they can. Through repetitions of the task, students take on more and more of the responsibility, with the teacher helping as needed and naming the new strategies employed by the student. Eventually students do the task on their own.

• In the learning-centered teaching process, the teacher first models a new strategy in the context of its use and students watch. As this is done, the teacher will talk through what the strategy is, when the strategy should be used, and how to go about using it. The next stop on the continuum is for the teacher to engage in the task with the students helping out. The third step is for students to take over the task of using the strategy with the teacher helping and intervening as needed. Finally, the student independently uses the strategy and the teacher watches.

• A metaphor that has been used to describe this kind of teaching is ‘scaffolding.’ The student is seen as constructing an edifice that represents her cognitive abilities. The construction starts from the ground up, on the foundation of what is already known and can be done. The new is built on top of the known.

• The teacher has to provide this scaffold to support the construction, which is proceeding from the round into the atmosphere of the previously unknown. The scaffold is the environment the teacher creates, the instructional support, and the processes and language that are lent to the student in the context of approaching a task and developing the abilities to meet it.

• It is important that the teacher gradually releases responsibility to the student until the task can be completed independently. Decurion’s Approach to Building Scaffolding for Development



• First: Build awareness of a model or a theory. “Understand”

• Second: focus attention through experiential learning on tools, skills, practices. “Practice”

• Third: Practice methods until they become tacit habits and communal commitments (i.e., dispositions). Institutionalize them through infrastructure. “Internalize”

• Fourth: Generalize; enact values and axioms without external reinforcement in novel situations. “Build” Tacit & Explicit Knowledge • “Explicit knowledge can be expressed in words and numbers and shared in the form of data, scientific formulae, specifications, manuals, and the like. This kind of knowledge can be readily transmitted between individuals formally and systematically” (The Knowledge Management Yearbook 1999-2000, p. 38 ).

• “Tacit knowledge is highly personal and hard to formalize, [Michael Polanyi referred to this knowledge domain as personal knowledge] making it difficult to communicate or share with others. Subjective insights, intuitions, and hunches fall into this category of knowledge. Tacit knowledge is deeply rooted in an individual’s actions and experience as well as in the ideals, values, or emotions he or she embraces” (Ibid., p. 39).

• “We can know more than we can tell” (M. Polanyi, The Tacit Dimension, p. 4). Why, What, and How The Pursuit of Profitability As a Developmental Path The Practice of pursuing profit as the best, most useful way to develop ourselves and to contribute to others. Not as a concept or an ideology,
but as a practice. Practices Nothing becomes real unless you practice it. “Learning without reflection and practice is not real learning”
- Thich Nhat Hanh Acknowledge and manage both the tangible and intangible Ken Wilber Principles, Practices, & Guidelines of Learning Community Authentic
Community Chaos Emptying Pseudo-Community (cc) image by nuonsolarteam on Flickr Scott M. Peck Working with Essence Why What How Nothing Extra Using the Everyday Challenges of Business
to Transform
Individuals and Organizations The Pursuit of Profitability The Five Practices of Context A Development Curriculum for Everyone Business Competance
Servant Leadership
Community Building
Personal Excellence
Professional Disipline Self Management Structure Drives Behavior Scaffolding for Development 100 Year Play Maximizing Profitability
as a way of
Maximizing Human Development Leading Self Leading
Others Leading
an
Organization Structural law states that energy follows the path of least resistance. The underlying structure determines behavior You can change the underlying structure to form a new path of least resistance. There are two types of structure. Structural tension leads to advancement, a process of continual improvement. Structural conflict leads to oscillation, a pattern of advancement followed by a setback. It’s the one-step forward, one-step back syndrome. Adaptive vs. Technical
Change Excellent, Enduring Institution
(9 September 2002)

One of our goals is to ensure that Decurion and its operating businesses become excellent, enduring institutions. Excellence is one of our core values. We judge ourselves not only by easily measured benchmarks such as the performance of competitors but also by standards we create for ourselves. Are we proud of what we are doing? Are we and others becoming more powerful, more whole, more complete? Are we flourishing? And the notion of an enduring institution ties to our core value of clock building. We seek to create companies that are not dependent on any one person, any one business model, or any one set of circumstances.

Toward a Vivid Description of Excellent Enduring Institution

Excellent: flourishing; excellent with respect to becoming something or someone more whole, complete, or fulfilled; people suited to their fully evolved function or characteristic activity.

Enduring: survives beyond any one person or set of people; sustainable for 100+ years; stewards for future generations of leaders to follow.

Institution: shapes business events without specific people; self-correcting according to market necessities; meta- and parastructures giving rise to competitive business model infrastructures; mechanisms which compel the organization toward the integration of the three circles through generations of management.

Mandate from Decurion to its Operating Companies:

• If it’s an operating company, run it excellently.

• Go beyond this to become an excellent, enduring institution. The “Collins Criteria”

1. Make a significant contribution
2. Generate substantial economic returns
3. Do everything with unadulterated excellence
4. Lend meaning to the lives of persons involved


Jim Collins’s Definition of a Great Institution
(Output Variables)
8 April 2005

Delivers Superior Performance

In business, performance is defined by financial returns and achievement of corporate purpose. In the social sectors, performance is defined by results and efficiency in delivering on the social mission.

Makes a Distinctive Impact

The organization makes such a unique contribution and/or does its work with such unadulterated excellence that if it were to disappear, it would leave a hole that could not be easily filled by any other institution on the planet.

Achieves Lasting Endurance

The organization can deliver exceptional results over a long period of time, beyond any single leader, great idea, market cycle, or well-funded program. When hit with setbacks, it bounces back even stronger than before. “Scaffolding Learning”
(Adapted from Strategic Reading: Guiding Students to Lifelong Literacy
by Jeffrey Wilhelm Tanya Baker, and Julie Dube)


• Vygotsky’s notion of instruction would have teachers doing complex tasks in meaningful contexts with students helping as much as they can. Through repetitions of the task, students take on more and more of the responsibility, with the teacher helping as needed and naming the new strategies employed by the student. Eventually students do the task on their own.

• In the learning-centered teaching process, the teacher first models a new strategy in the context of its use and students watch. As this is done, the teacher will talk through what the strategy is, when the strategy should be used, and how to go about using it. The next stop on the continuum is for the teacher to engage in the task with the students helping out. The third step is for students to take over the task of using the strategy with the teacher helping and intervening as needed. Finally, the student independently uses the strategy and the teacher watches.

• A metaphor that has been used to describe this kind of teaching is ‘scaffolding.’ The student is seen as constructing an edifice that represents her cognitive abilities. The construction starts from the ground up, on the foundation of what is already known and can be done. The new is built on top of the known.

• The teacher has to provide this scaffold to support the construction, which is proceeding from the round into the atmosphere of the previously unknown. The scaffold is the environment the teacher creates, the instructional support, and the processes and language that are lent to the student in the context of approaching a task and developing the abilities to meet it.

• It is important that the teacher gradually releases responsibility to the student until the task can be completed independently. Decurion’s Approach to Building Scaffolding for Development



• First: Build awareness of a model or a theory. “Understand”

• Second: focus attention through experiential learning on tools, skills, practices. “Practice”

• Third: Practice methods until they become tacit habits and communal commitments (i.e., dispositions). Institutionalize them through infrastructure. “Internalize”

• Fourth: Generalize; enact values and axioms without external reinforcement in novel situations. “Build” Why, What, and How Decurion's "What" Decurion's "How" and we know something about development... Results Matter Is there something in our relationship to money that has us devaluing profitability? Everything you have to do to run an excellent business
is all that's required to develop yourself and others 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020 2070 2100 2011 2012 2040 Decurion's Story 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 Institutional Transformation Guiding Ideas Developmental Level Business Competance Robertson Christopher S. Forman Kazimierz Gozdz Increase Standards
& Leadership
Everywhere Hedgehog Concept 1973
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