1 00:00:00,560 --> 00:00:03,120 Over the years when you sit when teaching decision 2 00:00:03,120 --> 00:00:06,960 making processes to students and executives at MIT and elsewhere, 3 00:00:07,200 --> 00:00:11,680 I often set up group exercises that let students practice 4 00:00:11,880 --> 00:00:16,320 this sort of debate and constructive conflict in teams, 5 00:00:16,640 --> 00:00:19,840 and it gives them firsthand experience on how 6 00:00:19,840 --> 00:00:23,280 these processes reliably 7 00:00:23,280 --> 00:00:26,280 deliver higher quality decisions 8 00:00:26,480 --> 00:00:30,160 than decisions that didn't have this kind of design process. 9 00:00:30,160 --> 00:00:32,040 And so that's what I've talked about here. 10 00:00:32,040 --> 00:00:35,640 I also, in what I teach students and executives 11 00:00:35,640 --> 00:00:37,760 as well, will oftentimes watch 12 00:00:39,480 --> 00:00:42,840 clips of a movie, the motion picture called 13 Days, 13 00:00:43,120 --> 00:00:46,600 which depicted the decision making process that President 14 00:00:46,600 --> 00:00:50,480 Kennedy used during what was what's now called the Cuban Missile Crisis. 15 00:00:50,680 --> 00:00:53,640 This is probably one of the most consequential decisions 16 00:00:53,920 --> 00:00:56,680 that any president has ever made in history, 17 00:00:56,680 --> 00:01:00,760 because this is the closest time that the U.S. 18 00:01:00,760 --> 00:01:04,800 and Russia came to launching nuclear warheads on one 19 00:01:04,800 --> 00:01:08,920 another, essentially starting World War three, which would have undoubtedly 20 00:01:08,920 --> 00:01:12,640 killed millions of people probably pretty quickly as well. 21 00:01:13,640 --> 00:01:14,760 Historians have also 22 00:01:14,760 --> 00:01:18,720 watched the movie and given it their blessing that the way the dynamics 23 00:01:18,720 --> 00:01:22,160 are played out in the movie are mostly correct and accurate. 24 00:01:22,160 --> 00:01:24,120 So this is one of the reasons that I recommend it 25 00:01:24,120 --> 00:01:26,520 and I recommend it to you as well. 26 00:01:26,520 --> 00:01:29,720 Here are some of my own highlights that play out in the movie. 27 00:01:29,720 --> 00:01:34,320 And as you'll see, many of these are kind of core activities 28 00:01:34,320 --> 00:01:38,640 that Kennedy used in making this decision align with the four principles 29 00:01:38,640 --> 00:01:40,400 that I'm suggesting in our program. 30 00:01:40,400 --> 00:01:43,960 Number one, he was very clear about his goal, 31 00:01:44,280 --> 00:01:47,360 and his goal was to avoid nuclear war. 32 00:01:47,760 --> 00:01:53,560 Now, this is different than what tradition would have had suggested for a U.S. 33 00:01:53,560 --> 00:01:55,680 president. And tradition would say. 34 00:01:55,680 --> 00:01:59,560 The the the challenge or the goal is to overcome 35 00:01:59,560 --> 00:02:02,800 your adversary, to beat your adversary or to win. 36 00:02:03,080 --> 00:02:05,640 That's what traditional policy would have recommended. 37 00:02:05,640 --> 00:02:07,560 But he didn't take that route. 38 00:02:07,560 --> 00:02:11,480 The route that he took is he wants to avoid nuclear war. 39 00:02:13,320 --> 00:02:15,760 And as as you see in the movie, he had a lot of pressures 40 00:02:16,080 --> 00:02:19,680 to make to follow sort of a more traditional decision process 41 00:02:19,920 --> 00:02:21,360 as commander in chief. 42 00:02:21,360 --> 00:02:25,600 So this is my first principle is to be very clear about the problem 43 00:02:25,920 --> 00:02:27,360 or the decision 44 00:02:27,360 --> 00:02:31,000 or the goal that you're trying to achieve with this decision process. 45 00:02:31,480 --> 00:02:34,120 The second is that you'll see 46 00:02:34,280 --> 00:02:36,920 that he actually owned the decision process 47 00:02:37,360 --> 00:02:40,080 from the very beginning as commander in chief. 48 00:02:40,320 --> 00:02:43,480 Now, he sought out lots of different perspectives 49 00:02:43,720 --> 00:02:48,320 that he knew and his advisers knew were important to the decision making process. 50 00:02:48,600 --> 00:02:52,080 And as you'll see, he sought perspective from people 51 00:02:52,080 --> 00:02:55,680 who disliked Dean and even distrusted him. 52 00:02:56,000 --> 00:02:59,320 But he knew those people had valuable expertise 53 00:02:59,320 --> 00:03:02,720 that could inform his understanding of the problem. 54 00:03:03,160 --> 00:03:07,680 This was my second recommendation in designing a decision process 55 00:03:07,920 --> 00:03:12,920 is to seek out multiple perspectives to understand the problem that you face. 56 00:03:13,440 --> 00:03:17,520 The third thing I want to point out is he utilized teams of advisors, 57 00:03:17,520 --> 00:03:21,520 several sets of advisers to come up with creative solutions 58 00:03:21,760 --> 00:03:25,680 and multiple solutions to this problem that he was facing. 59 00:03:27,000 --> 00:03:27,960 Those alternative 60 00:03:27,960 --> 00:03:31,680 solutions that he faced actually led to some of the decisions 61 00:03:31,680 --> 00:03:36,120 that he actually made, the solutions that he actually put in place. 62 00:03:36,480 --> 00:03:40,960 And these solutions creatively did avoid these 63 00:03:40,960 --> 00:03:44,480 two countries going to nuclear war with one another. 64 00:03:44,760 --> 00:03:49,120 So this was my third suggested principle, is to when you're 65 00:03:49,320 --> 00:03:54,240 trying to arrive at decisions, especially on high stakes decision, 66 00:03:54,360 --> 00:03:58,800 generate multiple alternatives or multiple solutions to consider. 67 00:03:59,240 --> 00:04:01,320 And then finally, the fourth thing I want to point out 68 00:04:01,600 --> 00:04:04,480 is that President Kennedy made the tough call. 69 00:04:04,800 --> 00:04:05,400 Right. 70 00:04:05,400 --> 00:04:09,320 And everybody sort of got behind him when he made those tough calls. 71 00:04:09,320 --> 00:04:11,000 And this is my fourth 72 00:04:11,000 --> 00:04:14,400 principle, is that, you know, when you make tough calls, 73 00:04:14,400 --> 00:04:15,840 make sure that now you're 74 00:04:15,840 --> 00:04:20,600 moving from decision making to decision implementation or decision execution. 75 00:04:20,600 --> 00:04:23,480 So at the end, I think that the movie provides 76 00:04:23,640 --> 00:04:26,600 an excellent illustration of some of the design principles 77 00:04:26,600 --> 00:04:30,000 for decision processes that I'm recommending in this program. 78 00:04:30,560 --> 00:04:34,320 More importantly, what I think the Cuban Missile Crisis shows is that if you have 79 00:04:34,320 --> 00:04:39,720 a high quality decision process, you're going to produce higher quality decisions. 80 00:04:40,040 --> 00:04:40,520 Right. 81 00:04:40,520 --> 00:04:43,080 So that's the big point of sort of 82 00:04:43,080 --> 00:04:46,200 when you think of of architecting a decision process, 83 00:04:46,480 --> 00:04:51,040 you can architect a high quality process and you'll have higher quality decisions. 84 00:04:51,360 --> 00:04:55,240 Research done by Ohio State Professor Paul Nutt suggests 85 00:04:55,240 --> 00:04:58,080 that about 50% managers decisions 86 00:04:58,400 --> 00:05:01,200 fail to achieve their intended outcomes. 87 00:05:01,440 --> 00:05:04,120 So in general, I think you could rightly say that 88 00:05:04,360 --> 00:05:08,000 status quo decision processes in organizations earn about an F. 89 00:05:09,000 --> 00:05:11,000 In terms of a grading scale. 90 00:05:11,000 --> 00:05:14,480 And he one of the big insights that that came 91 00:05:14,480 --> 00:05:18,840 from his research of actual decisions and the consequences of those decisions 92 00:05:19,120 --> 00:05:23,960 is that managers used poor decision processes in making those decisions. 93 00:05:24,160 --> 00:05:27,200 As transformational leaders, I think you want to take some of the principles 94 00:05:27,480 --> 00:05:30,000 and some of the processes that we're describing here 95 00:05:30,960 --> 00:05:33,880 to help you make better decisions as you're 96 00:05:33,920 --> 00:05:37,440 looking at your organization holistically in terms of change 97 00:05:37,760 --> 00:05:40,840 and innovation by having a better decision process. 98 00:05:40,840 --> 00:05:44,640 We hope that you'll have better outcomes and better consequences 99 00:05:44,800 --> 00:05:46,760 in those decisions that you make. 100 00:05:46,760 --> 00:05:49,480 Remember that the best decisions can or 101 00:05:49,520 --> 00:05:53,160 can become an outcome of the best quality processes. 102 00:05:53,440 --> 00:05:57,280 And now we're going to turn our attention to sort of continue this logic of design 103 00:05:57,280 --> 00:06:01,880 thinking, but applying it specifically to ways approaches to innovation. 104 00:06:02,120 --> 00:06:04,960 And we're going to apply it to how to design high performing teams.