0:00:05.840,0:00:08.360
Over the[br]years when dissent, when teaching decision

0:00:08.360,0:00:12.240
making processes to students[br]and executives at MIT and elsewhere,

0:00:12.440,0:00:16.920
I often set up group exercises[br]that let students practice

0:00:17.160,0:00:21.560
this sort of debate[br]and constructive conflict in teams,

0:00:21.880,0:00:25.680
and it gives them firsthand experience[br]on how these

0:00:26.800,0:00:31.480
processes reliably deliver[br]higher quality decisions

0:00:31.720,0:00:35.400
than decisions that didn't have[br]this kind of design process.

0:00:35.400,0:00:37.320
And so that's what I've talked about here.

0:00:37.320,0:00:40.880
I also, in what I teach[br]students and executives

0:00:40.880,0:00:42.960
as well, will oftentimes watch

0:00:44.000,0:00:48.120
a clip of a movie motion[br]picture called 13 Days,

0:00:48.360,0:00:51.840
which depicted the decision making process[br]that President

0:00:51.840,0:00:55.680
Kennedy used during what was what's now[br]called the Cuban Missile Crisis.

0:00:55.960,0:00:58.880
This is probably[br]one of the most consequential decisions

0:00:59.160,0:01:01.920
that any president[br]has ever made in history,

0:01:01.920,0:01:06.000
because it was the closest time[br]that the U.S.

0:01:06.000,0:01:08.400
and Russia came to launching nuclear

0:01:09.120,0:01:12.880
warheads on one another,[br]essentially starting World War three.

0:01:13.160,0:01:16.360
Here are some of my own highlights[br]that play out in the movie.

0:01:16.360,0:01:20.960
And as you'll see,[br]many of these kind of core activities

0:01:20.960,0:01:25.280
that Kennedy used in making this decision[br]align with the four principles

0:01:25.280,0:01:27.080
that I'm suggesting in our program.

0:01:27.080,0:01:30.480
Number one,[br]he was very clear about his goal,

0:01:30.920,0:01:34.000
and his goal was to avoid nuclear war.

0:01:34.400,0:01:40.200
Now, this is different than what tradition[br]would have had suggested for a U.S.

0:01:40.200,0:01:42.320
president. And tradition would say.

0:01:42.320,0:01:44.240
The the the challenge

0:01:45.280,0:01:45.600
is to

0:01:45.600,0:01:48.840
overcome your adversary in the future[br]adversary order.

0:01:49.720,0:01:52.280
That's what traditional policy[br]would have recommended.

0:01:52.280,0:01:55.960
But he didn't take that[br]route, the route that he took as he wants

0:01:55.960,0:01:58.080
to avoid nuclear war.

0:02:00.000,0:02:02.400
And as as you see in the movie,[br]he had a lot of pressures

0:02:02.760,0:02:06.320
to make to follow sort[br]of a more traditional decision process

0:02:06.560,0:02:08.000
as commander in chief.

0:02:08.000,0:02:12.240
So this is my first principle[br]is to be very clear about the problem

0:02:12.600,0:02:14.000
or the decision

0:02:14.000,0:02:17.600
or the goals that you're trying to achieve[br]with this decision process.

0:02:18.120,0:02:20.760
The second is that you'll see

0:02:20.920,0:02:23.560
that he actually owned[br]the decision process

0:02:24.040,0:02:26.600
from the very beginning[br]as commander in chief.

0:02:27.000,0:02:30.120
Now, he sought out[br]lots of different perspectives

0:02:30.360,0:02:34.960
that he knew and his advisers knew were[br]important to the decision making process.

0:02:35.240,0:02:38.720
And as you'll see,[br]he sought perspective from people

0:02:38.720,0:02:42.200
who dislike him and even distrusted him.

0:02:42.640,0:02:45.960
But he knew those people had valuable[br]expertise

0:02:45.960,0:02:49.360
that could inform[br]his understanding of the problem.

0:02:49.800,0:02:54.360
This was my second recommendation[br]in designing a decision process

0:02:54.600,0:02:59.520
is to seek out multiple perspectives[br]to understand the problem that you face.

0:03:00.080,0:03:04.160
The third thing I want to point out[br]is he utilized teams of advisors,

0:03:04.160,0:03:08.160
several sets of advisers[br]to come up with creative solutions

0:03:08.400,0:03:12.240
and multiple solutions[br]to this problem that he was facing.

0:03:13.680,0:03:14.560
Those alternative

0:03:14.560,0:03:18.240
solutions that he faced actually led to[br]some of the decisions

0:03:18.320,0:03:22.760
that he actually made, the solutions[br]that he actually put in place.

0:03:23.120,0:03:27.600
And the solutions creatively[br]did avoid these

0:03:27.600,0:03:31.120
two countries[br]going to nuclear war with one another.

0:03:31.400,0:03:35.760
So this was my third suggested[br]principle, is to when you're

0:03:35.960,0:03:40.880
trying to arrive at decisions,[br]especially on high stakes decision,

0:03:41.040,0:03:45.440
generate multiple alternatives[br]and multiple solutions to consider.

0:03:45.880,0:03:47.200
And then finally,

0:03:47.200,0:03:51.120
I want to point out is that President[br]Kennedy made the tough call.

0:03:51.480,0:03:52.000
Right.

0:03:52.000,0:03:55.920
And everybody sort of got behind him[br]when he made those tough calls.

0:03:55.920,0:03:57.600
And this is my fourth

0:03:57.600,0:04:01.000
principle is that, you know,[br]you make tough calls,

0:04:01.000,0:04:02.480
make sure that now you're

0:04:02.480,0:04:07.200
moving from decision making to decision[br]implementation or decision execution.

0:04:07.240,0:04:10.080
So it's again,[br]I think that the movie provides

0:04:10.280,0:04:13.240
an excellent illustration[br]of some of the design principles

0:04:13.240,0:04:16.640
for decision processes[br]that I'm recommending in this program.

0:04:17.200,0:04:20.960
One importantly, what I think the Cuban[br]Missile Crisis shows is that if you have

0:04:20.960,0:04:26.360
a high quality decision process, you're[br]going to produce higher quality decisions.

0:04:26.680,0:04:27.160
Right.

0:04:27.160,0:04:29.760
So that's the big point of sort of

0:04:29.760,0:04:32.880
when you think of[br]of architecting a decision process,

0:04:33.120,0:04:35.480
you can architect a high quality process

0:04:35.760,0:04:38.000
and then you'll have higher quality[br]decisions.

0:04:38.000,0:04:41.880
Research done by Ohio State[br]Professor Long that suggests

0:04:41.880,0:04:44.760
that about 50% managers decisions

0:04:45.080,0:04:47.880
fail to achieve their intended outcomes.

0:04:48.080,0:04:50.760
So in general,[br]I think you can rightly say that

0:04:51.040,0:04:54.560
status quo decision processes[br]in organizations earn about an F,

0:04:55.080,0:04:57.240
okay in terms of rating scale

0:04:57.640,0:05:00.520
and he one of the big insights said

0:05:01.240,0:05:05.480
in this research was the actual decisions[br]and the consequences of those decisions

0:05:05.760,0:05:08.960
is that managers used[br]for decision processes

0:05:09.240,0:05:12.320
and making those decisions[br]as transformational leaders.

0:05:12.320,0:05:14.080
I think you want to take[br]some of the principles

0:05:14.080,0:05:16.640
and some of the processes[br]that we're describing here

0:05:17.560,0:05:21.920
to help you make better decisions[br]as you're looking at your organization

0:05:22.160,0:05:25.360
holistically[br]in terms of change and innovation

0:05:25.640,0:05:29.640
by having a better decision process,[br]we hope that you'll have better outcomes

0:05:29.640,0:05:33.000
and better consequences[br]in those decisions that you make.

0:05:33.400,0:05:36.120
Remember that the best decisions can or

0:05:36.160,0:05:39.840
can become an outcome[br]of the best quality processes.

0:05:40.080,0:05:43.920
And now we're going to turn our attention[br]to sort of continue this logic of design

0:05:43.920,0:05:48.480
thinking, but applying it specifically[br]to ways approaches to innovation.

0:05:48.720,0:05:51.600
And we're going to apply it[br]to how to design high performing teams.