[Script Info]
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[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:00.56,0:00:03.06,Default,,0000,0000,0000,,Over the\Nyears when you sit when teaching decision
Dialogue: 0,0:00:03.06,0:00:06.82,Default,,0000,0000,0000,,making processes to students\Nand executives at MIT and elsewhere,
Dialogue: 0,0:00:07.20,0:00:11.60,Default,,0000,0000,0000,,I often set up group exercises\Nthat let students practice
Dialogue: 0,0:00:11.88,0:00:16.26,Default,,0000,0000,0000,,this sort of debate\Nand constructive conflict in teams,
Dialogue: 0,0:00:16.64,0:00:19.78,Default,,0000,0000,0000,,and it gives them firsthand experience\Non how
Dialogue: 0,0:00:19.84,0:00:23.20,Default,,0000,0000,0000,,these processes reliably
Dialogue: 0,0:00:23.20,0:00:26.26,Default,,0000,0000,0000,,deliver higher quality decisions
Dialogue: 0,0:00:26.48,0:00:30.07,Default,,0000,0000,0000,,than decisions that didn't have\Nthis kind of design process.
Dialogue: 0,0:00:30.16,0:00:31.92,Default,,0000,0000,0000,,And so that's what I've talked about here.
Dialogue: 0,0:00:31.92,0:00:35.64,Default,,0000,0000,0000,,I also, in what I teach\Nstudents and executives
Dialogue: 0,0:00:35.64,0:00:37.64,Default,,0000,0000,0000,,as well, will oftentimes watch
Dialogue: 0,0:00:39.48,0:00:42.94,Default,,0000,0000,0000,,clips of a movie,\Nthe motion picture called 13 Days,
Dialogue: 0,0:00:43.12,0:00:46.63,Default,,0000,0000,0000,,which depicted the decision making process\Nthat President
Dialogue: 0,0:00:46.63,0:00:50.39,Default,,0000,0000,0000,,Kennedy used during what was what's now\Ncalled the Cuban Missile Crisis.
Dialogue: 0,0:00:50.68,0:00:53.58,Default,,0000,0000,0000,,This is probably\None of the most consequential decisions
Dialogue: 0,0:00:53.92,0:00:56.62,Default,,0000,0000,0000,,that any president\Nhas ever made in history,
Dialogue: 0,0:00:56.62,0:01:00.73,Default,,0000,0000,0000,,because this is the closest time\Nthat the U.S.
Dialogue: 0,0:01:00.73,0:01:04.80,Default,,0000,0000,0000,,and Russia came\Nto launching nuclear warheads on one
Dialogue: 0,0:01:04.80,0:01:08.91,Default,,0000,0000,0000,,another, essentially starting World\NWar three, which would have undoubtedly
Dialogue: 0,0:01:08.91,0:01:12.61,Default,,0000,0000,0000,,killed millions of people\Nprobably pretty quickly as well.
Dialogue: 0,0:01:13.64,0:01:14.71,Default,,0000,0000,0000,,Historians have also
Dialogue: 0,0:01:14.71,0:01:18.68,Default,,0000,0000,0000,,watched the movie and given it their\Nblessing that the way the dynamics
Dialogue: 0,0:01:18.68,0:01:22.13,Default,,0000,0000,0000,,are played out in\Nthe movie are mostly correct and accurate.
Dialogue: 0,0:01:22.13,0:01:24.06,Default,,0000,0000,0000,,So this is one of the reasons\Nthat I recommend it
Dialogue: 0,0:01:24.06,0:01:26.52,Default,,0000,0000,0000,,and I recommend it to you as well.
Dialogue: 0,0:01:26.52,0:01:29.62,Default,,0000,0000,0000,,Here are some of my own highlights\Nthat play out in the movie.
Dialogue: 0,0:01:29.62,0:01:34.40,Default,,0000,0000,0000,,And as you'll see,\Nmany of these are kind of core activities
Dialogue: 0,0:01:34.40,0:01:38.66,Default,,0000,0000,0000,,that Kennedy used in making this decision\Nalign with the four principles
Dialogue: 0,0:01:38.66,0:01:40.41,Default,,0000,0000,0000,,that I'm suggesting in our program.
Dialogue: 0,0:01:40.41,0:01:43.97,Default,,0000,0000,0000,,Number one,\Nhe was very clear about his goal,
Dialogue: 0,0:01:44.28,0:01:47.30,Default,,0000,0000,0000,,and his goal was to avoid nuclear war.
Dialogue: 0,0:01:47.76,0:01:53.62,Default,,0000,0000,0000,,Now, this is different than what tradition\Nwould have had suggested for a U.S.
Dialogue: 0,0:01:53.62,0:01:55.32,Default,,0000,0000,0000,,president. And tradition would say.
Dialogue: 0,0:01:55.67,0:01:59.55,Default,,0000,0000,0000,,The challenge\Nor the goal is to overcome
Dialogue: 0,0:01:59.55,0:02:02.67,Default,,0000,0000,0000,,your adversary,\Nto beat your adversary or to win.
Dialogue: 0,0:02:03.08,0:02:05.54,Default,,0000,0000,0000,,That's what traditional policy\Nwould have recommended.
Dialogue: 0,0:02:05.54,0:02:07.30,Default,,0000,0000,0000,,But he didn't take that route.
Dialogue: 0,0:02:07.56,0:02:11.35,Default,,0000,0000,0000,,The route that he took is\Nhe wants to avoid nuclear war.
Dialogue: 0,0:02:13.32,0:02:15.71,Default,,0000,0000,0000,,And as as you see in the movie,\Nhe had a lot of pressures
Dialogue: 0,0:02:16.08,0:02:19.68,Default,,0000,0000,0000,,to make to follow sort\Nof a more traditional decision process
Dialogue: 0,0:02:19.92,0:02:21.30,Default,,0000,0000,0000,,as commander in chief.
Dialogue: 0,0:02:21.30,0:02:25.53,Default,,0000,0000,0000,,So this is my first principle\Nis to be very clear about the problem
Dialogue: 0,0:02:25.92,0:02:27.32,Default,,0000,0000,0000,,or the decision
Dialogue: 0,0:02:27.32,0:02:30.92,Default,,0000,0000,0000,,or the goal that you're trying to achieve\Nwith this decision process.
Dialogue: 0,0:02:31.48,0:02:33.94,Default,,0000,0000,0000,,The second is that you'll see
Dialogue: 0,0:02:34.28,0:02:36.92,Default,,0000,0000,0000,,that he actually owned\Nthe decision process
Dialogue: 0,0:02:37.36,0:02:40.03,Default,,0000,0000,0000,,from the very beginning\Nas commander in chief.
Dialogue: 0,0:02:40.32,0:02:43.44,Default,,0000,0000,0000,,Now, he sought out\Nlots of different perspectives
Dialogue: 0,0:02:43.72,0:02:48.25,Default,,0000,0000,0000,,that he knew and his advisers knew were\Nimportant to the decision making process.
Dialogue: 0,0:02:48.60,0:02:52.02,Default,,0000,0000,0000,,And as you'll see,\Nhe sought perspective from people
Dialogue: 0,0:02:52.02,0:02:55.62,Default,,0000,0000,0000,,who disliked him and even distrusted him.
Dialogue: 0,0:02:56.00,0:02:59.24,Default,,0000,0000,0000,,But he knew those people had valuable\Nexpertise
Dialogue: 0,0:02:59.24,0:03:02.66,Default,,0000,0000,0000,,that could inform\Nhis understanding of the problem.
Dialogue: 0,0:03:03.16,0:03:07.63,Default,,0000,0000,0000,,This was my second recommendation\Nin designing a decision process
Dialogue: 0,0:03:07.92,0:03:12.82,Default,,0000,0000,0000,,is to seek out multiple perspectives\Nto understand the problem that you face.
Dialogue: 0,0:03:13.44,0:03:17.43,Default,,0000,0000,0000,,The third thing I want to point out\Nis he utilized teams of advisors,
Dialogue: 0,0:03:17.43,0:03:21.47,Default,,0000,0000,0000,,several sets of advisers\Nto come up with creative solutions
Dialogue: 0,0:03:21.76,0:03:25.53,Default,,0000,0000,0000,,and multiple solutions\Nto this problem that he was facing.
Dialogue: 0,0:03:27.00,0:03:27.96,Default,,0000,0000,0000,,Those alternative
Dialogue: 0,0:03:27.96,0:03:31.78,Default,,0000,0000,0000,,solutions that he faced actually led to\Nsome of the decisions
Dialogue: 0,0:03:31.78,0:03:36.05,Default,,0000,0000,0000,,that he actually made, the solutions\Nthat he actually put in place.
Dialogue: 0,0:03:36.48,0:03:40.93,Default,,0000,0000,0000,,And these solutions creatively\Ndid avoid these
Dialogue: 0,0:03:40.93,0:03:44.34,Default,,0000,0000,0000,,two countries\Ngoing to nuclear war with one another.
Dialogue: 0,0:03:44.76,0:03:49.14,Default,,0000,0000,0000,,So this was my third suggested\Nprinciple, is to when you're
Dialogue: 0,0:03:49.32,0:03:54.28,Default,,0000,0000,0000,,trying to arrive at decisions,\Nespecially on high stakes decision,
Dialogue: 0,0:03:54.36,0:03:58.66,Default,,0000,0000,0000,,generate multiple alternatives\Nor multiple solutions to consider.
Dialogue: 0,0:03:59.24,0:04:01.24,Default,,0000,0000,0000,,And then finally,\Nthe fourth thing I want to point out
Dialogue: 0,0:04:01.60,0:04:04.34,Default,,0000,0000,0000,,is that President\NKennedy made the tough call.
Dialogue: 0,0:04:05.40,0:04:09.27,Default,,0000,0000,0000,,And everybody sort of got behind him\Nwhen he made those tough calls.
Dialogue: 0,0:04:09.27,0:04:10.83,Default,,0000,0000,0000,,And this is my fourth
Dialogue: 0,0:04:10.83,0:04:14.37,Default,,0000,0000,0000,,principle, is that, you know,\Nwhen you make tough calls,
Dialogue: 0,0:04:14.37,0:04:15.73,Default,,0000,0000,0000,,make sure that now you're
Dialogue: 0,0:04:15.73,0:04:20.60,Default,,0000,0000,0000,,moving from decision making to decision\Nimplementation or decision execution.
Dialogue: 0,0:04:20.60,0:04:23.35,Default,,0000,0000,0000,,So at the end,\NI think that the movie provides
Dialogue: 0,0:04:23.64,0:04:26.58,Default,,0000,0000,0000,,an excellent illustration\Nof some of the design principles
Dialogue: 0,0:04:26.58,0:04:29.83,Default,,0000,0000,0000,,for decision processes\Nthat I'm recommending in this program.
Dialogue: 0,0:04:30.56,0:04:34.38,Default,,0000,0000,0000,,More importantly, what I think the Cuban\NMissile Crisis shows is that if you have
Dialogue: 0,0:04:34.38,0:04:39.65,Default,,0000,0000,0000,,a high quality decision process, you're\Ngoing to produce higher quality decisions.
Dialogue: 0,0:04:40.52,0:04:42.94,Default,,0000,0000,0000,,So that's the big point of sort of
Dialogue: 0,0:04:43.08,0:04:46.28,Default,,0000,0000,0000,,when you think of\Nof architecting a decision process,
Dialogue: 0,0:04:46.48,0:04:50.94,Default,,0000,0000,0000,,you can architect a high quality process\Nand you'll have higher quality decisions.
Dialogue: 0,0:04:51.36,0:04:55.24,Default,,0000,0000,0000,,Research done by Ohio State\NProfessor Paul Nutt suggests
Dialogue: 0,0:04:55.24,0:04:58.10,Default,,0000,0000,0000,,that about 50% managers decisions
Dialogue: 0,0:04:58.40,0:05:01.23,Default,,0000,0000,0000,,fail to achieve their intended outcomes.
Dialogue: 0,0:05:01.44,0:05:04.03,Default,,0000,0000,0000,,So in general,\NI think you could rightly say that
Dialogue: 0,0:05:04.36,0:05:08.12,Default,,0000,0000,0000,,status quo decision processes\Nin organizations earn about an F.
Dialogue: 0,0:05:09.00,0:05:10.74,Default,,0000,0000,0000,,In terms of a grading scale.
Dialogue: 0,0:05:11.00,0:05:14.43,Default,,0000,0000,0000,,And he one of the big insights\Nthat that came
Dialogue: 0,0:05:14.48,0:05:18.77,Default,,0000,0000,0000,,from his research of actual decisions\Nand the consequences of those decisions
Dialogue: 0,0:05:19.12,0:05:23.87,Default,,0000,0000,0000,,is that managers used poor decision\Nprocesses in making those decisions.
Dialogue: 0,0:05:24.16,0:05:27.20,Default,,0000,0000,0000,,As transformational leaders, I think\Nyou want to take some of the principles
Dialogue: 0,0:05:27.48,0:05:29.89,Default,,0000,0000,0000,,and some of the processes\Nthat we're describing here
Dialogue: 0,0:05:30.96,0:05:33.78,Default,,0000,0000,0000,,to help you make better decisions\Nas you're
Dialogue: 0,0:05:33.92,0:05:37.39,Default,,0000,0000,0000,,looking at your organization\Nholistically in terms of change
Dialogue: 0,0:05:37.76,0:05:40.84,Default,,0000,0000,0000,,and innovation\Nby having a better decision process.
Dialogue: 0,0:05:40.84,0:05:44.54,Default,,0000,0000,0000,,We hope that you'll have better outcomes\Nand better consequences
Dialogue: 0,0:05:44.80,0:05:46.63,Default,,0000,0000,0000,,in those decisions that you make.
Dialogue: 0,0:05:46.76,0:05:49.48,Default,,0000,0000,0000,,Remember that the best decisions can or
Dialogue: 0,0:05:49.52,0:05:53.02,Default,,0000,0000,0000,,can become an outcome\Nof the best quality processes.
Dialogue: 0,0:05:53.44,0:05:57.17,Default,,0000,0000,0000,,And now we're going to turn our attention\Nto sort of continue this logic of design
Dialogue: 0,0:05:57.28,0:06:01.83,Default,,0000,0000,0000,,thinking, but applying it specifically\Nto ways approaches to innovation.
Dialogue: 0,0:06:02.12,0:06:04.93,Default,,0000,0000,0000,,And we're going to apply it\Nto how to design high performing teams.