1 00:00:05,840 --> 00:00:08,360 Over the years when dissent, when teaching decision 2 00:00:08,360 --> 00:00:12,240 making processes to students and executives at MIT and elsewhere, 3 00:00:12,440 --> 00:00:16,920 I often set up group exercises that let students practice 4 00:00:17,160 --> 00:00:21,560 this sort of debate and constructive conflict in teams, 5 00:00:21,880 --> 00:00:25,680 and it gives them firsthand experience on how these 6 00:00:26,800 --> 00:00:31,480 processes reliably deliver higher quality decisions 7 00:00:31,720 --> 00:00:35,400 than decisions that didn't have this kind of design process. 8 00:00:35,400 --> 00:00:37,320 And so that's what I've talked about here. 9 00:00:37,320 --> 00:00:40,880 I also, in what I teach students and executives 10 00:00:40,880 --> 00:00:42,960 as well, will oftentimes watch 11 00:00:44,000 --> 00:00:48,120 a clip of a movie motion picture called 13 Days, 12 00:00:48,360 --> 00:00:51,840 which depicted the decision making process that President 13 00:00:51,840 --> 00:00:55,680 Kennedy used during what was what's now called the Cuban Missile Crisis. 14 00:00:55,960 --> 00:00:58,880 This is probably one of the most consequential decisions 15 00:00:59,160 --> 00:01:01,920 that any president has ever made in history, 16 00:01:01,920 --> 00:01:06,000 because it was the closest time that the U.S. 17 00:01:06,000 --> 00:01:08,400 and Russia came to launching nuclear 18 00:01:09,120 --> 00:01:12,880 warheads on one another, essentially starting World War three. 19 00:01:13,160 --> 00:01:16,360 Here are some of my own highlights that play out in the movie. 20 00:01:16,360 --> 00:01:20,960 And as you'll see, many of these kind of core activities 21 00:01:20,960 --> 00:01:25,280 that Kennedy used in making this decision align with the four principles 22 00:01:25,280 --> 00:01:27,080 that I'm suggesting in our program. 23 00:01:27,080 --> 00:01:30,480 Number one, he was very clear about his goal, 24 00:01:30,920 --> 00:01:34,000 and his goal was to avoid nuclear war. 25 00:01:34,400 --> 00:01:40,200 Now, this is different than what tradition would have had suggested for a U.S. 26 00:01:40,200 --> 00:01:42,320 president. And tradition would say. 27 00:01:42,320 --> 00:01:44,240 The the the challenge 28 00:01:45,280 --> 00:01:45,600 is to 29 00:01:45,600 --> 00:01:48,840 overcome your adversary in the future adversary order. 30 00:01:49,720 --> 00:01:52,280 That's what traditional policy would have recommended. 31 00:01:52,280 --> 00:01:55,960 But he didn't take that route, the route that he took as he wants 32 00:01:55,960 --> 00:01:58,080 to avoid nuclear war. 33 00:02:00,000 --> 00:02:02,400 And as as you see in the movie, he had a lot of pressures 34 00:02:02,760 --> 00:02:06,320 to make to follow sort of a more traditional decision process 35 00:02:06,560 --> 00:02:08,000 as commander in chief. 36 00:02:08,000 --> 00:02:12,240 So this is my first principle is to be very clear about the problem 37 00:02:12,600 --> 00:02:14,000 or the decision 38 00:02:14,000 --> 00:02:17,600 or the goals that you're trying to achieve with this decision process. 39 00:02:18,120 --> 00:02:20,760 The second is that you'll see 40 00:02:20,920 --> 00:02:23,560 that he actually owned the decision process 41 00:02:24,040 --> 00:02:26,600 from the very beginning as commander in chief. 42 00:02:27,000 --> 00:02:30,120 Now, he sought out lots of different perspectives 43 00:02:30,360 --> 00:02:34,960 that he knew and his advisers knew were important to the decision making process. 44 00:02:35,240 --> 00:02:38,720 And as you'll see, he sought perspective from people 45 00:02:38,720 --> 00:02:42,200 who dislike him and even distrusted him. 46 00:02:42,640 --> 00:02:45,960 But he knew those people had valuable expertise 47 00:02:45,960 --> 00:02:49,360 that could inform his understanding of the problem. 48 00:02:49,800 --> 00:02:54,360 This was my second recommendation in designing a decision process 49 00:02:54,600 --> 00:02:59,520 is to seek out multiple perspectives to understand the problem that you face. 50 00:03:00,080 --> 00:03:04,160 The third thing I want to point out is he utilized teams of advisors, 51 00:03:04,160 --> 00:03:08,160 several sets of advisers to come up with creative solutions 52 00:03:08,400 --> 00:03:12,240 and multiple solutions to this problem that he was facing. 53 00:03:13,680 --> 00:03:14,560 Those alternative 54 00:03:14,560 --> 00:03:18,240 solutions that he faced actually led to some of the decisions 55 00:03:18,320 --> 00:03:22,760 that he actually made, the solutions that he actually put in place. 56 00:03:23,120 --> 00:03:27,600 And the solutions creatively did avoid these 57 00:03:27,600 --> 00:03:31,120 two countries going to nuclear war with one another. 58 00:03:31,400 --> 00:03:35,760 So this was my third suggested principle, is to when you're 59 00:03:35,960 --> 00:03:40,880 trying to arrive at decisions, especially on high stakes decision, 60 00:03:41,040 --> 00:03:45,440 generate multiple alternatives and multiple solutions to consider. 61 00:03:45,880 --> 00:03:47,200 And then finally, 62 00:03:47,200 --> 00:03:51,120 I want to point out is that President Kennedy made the tough call. 63 00:03:51,480 --> 00:03:52,000 Right. 64 00:03:52,000 --> 00:03:55,920 And everybody sort of got behind him when he made those tough calls. 65 00:03:55,920 --> 00:03:57,600 And this is my fourth 66 00:03:57,600 --> 00:04:01,000 principle is that, you know, you make tough calls, 67 00:04:01,000 --> 00:04:02,480 make sure that now you're 68 00:04:02,480 --> 00:04:07,200 moving from decision making to decision implementation or decision execution. 69 00:04:07,240 --> 00:04:10,080 So it's again, I think that the movie provides 70 00:04:10,280 --> 00:04:13,240 an excellent illustration of some of the design principles 71 00:04:13,240 --> 00:04:16,640 for decision processes that I'm recommending in this program. 72 00:04:17,200 --> 00:04:20,960 One importantly, what I think the Cuban Missile Crisis shows is that if you have 73 00:04:20,960 --> 00:04:26,360 a high quality decision process, you're going to produce higher quality decisions. 74 00:04:26,680 --> 00:04:27,160 Right. 75 00:04:27,160 --> 00:04:29,760 So that's the big point of sort of 76 00:04:29,760 --> 00:04:32,880 when you think of of architecting a decision process, 77 00:04:33,120 --> 00:04:35,480 you can architect a high quality process 78 00:04:35,760 --> 00:04:38,000 and then you'll have higher quality decisions. 79 00:04:38,000 --> 00:04:41,880 Research done by Ohio State Professor Long that suggests 80 00:04:41,880 --> 00:04:44,760 that about 50% managers decisions 81 00:04:45,080 --> 00:04:47,880 fail to achieve their intended outcomes. 82 00:04:48,080 --> 00:04:50,760 So in general, I think you can rightly say that 83 00:04:51,040 --> 00:04:54,560 status quo decision processes in organizations earn about an F, 84 00:04:55,080 --> 00:04:57,240 okay in terms of rating scale 85 00:04:57,640 --> 00:05:00,520 and he one of the big insights said 86 00:05:01,240 --> 00:05:05,480 in this research was the actual decisions and the consequences of those decisions 87 00:05:05,760 --> 00:05:08,960 is that managers used for decision processes 88 00:05:09,240 --> 00:05:12,320 and making those decisions as transformational leaders. 89 00:05:12,320 --> 00:05:14,080 I think you want to take some of the principles 90 00:05:14,080 --> 00:05:16,640 and some of the processes that we're describing here 91 00:05:17,560 --> 00:05:21,920 to help you make better decisions as you're looking at your organization 92 00:05:22,160 --> 00:05:25,360 holistically in terms of change and innovation 93 00:05:25,640 --> 00:05:29,640 by having a better decision process, we hope that you'll have better outcomes 94 00:05:29,640 --> 00:05:33,000 and better consequences in those decisions that you make. 95 00:05:33,400 --> 00:05:36,120 Remember that the best decisions can or 96 00:05:36,160 --> 00:05:39,840 can become an outcome of the best quality processes. 97 00:05:40,080 --> 00:05:43,920 And now we're going to turn our attention to sort of continue this logic of design 98 00:05:43,920 --> 00:05:48,480 thinking, but applying it specifically to ways approaches to innovation. 99 00:05:48,720 --> 00:05:51,600 And we're going to apply it to how to design high performing teams.