Wisdom and the Supply Chain

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1 Wisdom and the Supply Chain A Framework for Continuously Improving Decision Making Wisdom, representing the highest of human striving, is perhaps the only framework big enough to represent the seriousness and responsibility of this task. (American Board of Internal Medicine, choosing wisely ) Dr. Charles (Chuck) Oden charles.oden@saintleo.edu Saint Leo University

2 Wisdom What is it? What are its effects both personally and professionally? How does this effect the supply chain? How to increase/utilize wisdom? Not just what you know, but how you use what you know.

3 It s the same as knowledge The older you get the wiser you become You either have it or you don t I can get by with my education, experience and street smarts.

4 Wisdom is the application of knowledge and skills, toward the attainment of a common good, through the balance of intrapersonal, interpersonal, and extrapersonal interests over the short and long term, through the mediation of positive ethical values, by acting so as to balance adaptation to shaping and selection of environment. Robert J. Sternberg Balance Theory of Wisdom

5 - Rational decision making based on general knowledge of life - Prosocial behaviors involving empathy, compassion, and altruism - Emotional stability - Insight or self-reflection - Decisiveness in the face of uncertainty - Tolerance of divergent value systems - Intelligence and knowledge - Understanding of human nature

6 - Emotional resiliency - Humility - An ability to learn from experience - Openness - Superior judgment and problem-solving skills The ability to navigate major life challenges in pursuit of the good life and the greater good for humankind Berlin Wisdom Paradigm

7 Framework Wisdom is the practical integration of reflection, knowledge, and relationships. Sounds simple, right?

8 Correlation between wisdom and intelligence (IQ) is 68% Increases in IQ do not result in increases in wisdom and may actually result in a decease due to neglect of the other aspects of wisdom

9 A wise manager or employee: 1. Learns hard-fought lessons from tough situations. 2. Utilizes reflective thinking, intuition, and the ability to withhold judgment. 3. Is able to reflect upon available options, understand why things happen or why decisions are chosen 4. Has the ability and willingness to look at phenomena and events from different perspectives 5. Is flexible in adopting multiple perspectives of multiple stakeholders 6. Accepts responsibility, absence of a tendency to blame other people or circumstances for one s own situation or feelings 7. Demonstrates spiritual and values-based introspection

10 Knowledge Management During the Industrial Age we became very focused on knowledge.

11 Wise managers and employees: 1. Demonstrate expert knowledge with extraordinary scope, depth and balance 2. Apply intelligence, experience, and reason to solve both personal and professional problems 3. Provide expert judgment and advice concerning difficult situations 4. Understand a situation or phenomenon thoroughly, while also understanding the limits of knowledge 5. Deep comprehension of the positive and negative aspects of human nature

12 6. Views problems from a broader long-term perspective 7. Is perceptive and has the ability to analyze and assess consequences 8. Addresses important and difficult questions 9. Suggests adaptive strategies 10. Synergy of mind and character, the orchestration of knowledge and virtues 11. Understands both interpersonal and intrapersonal relationships

13 12. Acknowledges ambiguity and uncertainty while continuing to make important decisions 13. Recognizes the uncertainty of life 14. Desires to know the truth 15. Embraces the deep contradictions in life and learns from each of them (good-bad; dependence-independence; selfishness-altruism; control-lack of control, finitenesseternity, etc).

14 We struggle to be mentally present. In 2009 we could pay attention on average for about 13 seconds, now it is down to about 8 seconds. Goldfish can focus for 9 seconds.

15 If we only provide individuals with more information on what things they can do differently, we risk merely increasing information overload and mental exhaustion. If, on the other hand, we help people increase their focus and change how they engage in work, we have the potential to radically transform the workplace. Potential Project

16 A wise manager or employee: 1. Is emotionally intelligent. Able to recognize, understand, and manage our own and others emotions 2. Is interested, inspired and active 3. Is not reliant on temporary measures of happiness, amusement, or pride 4. Resolves conflicts through cooperation instead of dominance, submission or avoidance 5. Is interested in personal growth, well-being of friends, and societal engagement. Not just living a pleasurable life 6. Has a positive temperament/disposition 7. Is sensitive and understanding to the needs of others and is willing to help 8. Has the ability to understand context, essence, and self in situations 9. Characterized by a high level of openness

17 Wisdom is the practical integration of reflection, knowledge, and relationships.

18 Include the description of each of these three aspects of wisdom as an assessment for managers and employees, both self and peer evaluations. There may be fewer outstanding evaluations and hopefully more progression over time.

19 Wisdom development, compassion, self-reflection, striving to make practically wise choices. Creating a culture where mistakes or poor outcomes are not only openly acknowledged, but also studied in order to discover how to improve, and how to avoid similar mistakes in the future.

20 Cognitive Ability Reasoning skills Insight Reflective attitude Concern for others Emotional intelligence* Tolerance of ambiguity Purpose/Meaning Awareness of actions Responsible choices Ability to cope Humility Job Satisfaction* Team cohesiveness* Quality of life Ethical choices* Well-being Trauma recovery Appreciation of life Connections Pleasure in small things Identification of possibilities Self-confidence Personal and spiritual growth Different perspectives Curiosity Interpersonal trust* Satisfaction with life Decreases habitual behavior and poor choices

21 How can Wisdom impact the Supply Chain?

22 I have been working with CEOs and their teams for over 25 years. Their biggest challenge is building teams that create new innovative realities before others have even thought of them. I have seen leaders whose teams, once sparked by wisdom, are like a basketball team In the Zone on a fast break committed to a new innovation. I have found a number of important elements on these teams. But the first is wisdom that reveals insight, that creates actions that unleash wealth and well-being. (Paul David Walker)

23 The Supply Chain is a high performance culture. Always on the clock. Working faster, thinking faster, using as many tech tools as possible to increase efficiency. People skills are more expected than cultivated. We never have clarity and focus of mind to really do the right things, rather than just do a lot of things. Therefore, a need for wisdom.

24 - International focus of the supply chain. Many countries view wisdom more highly than we do, providing an opportunity for shared focus and values. - Incredibly rapid changes in technology reshaping the industry. - Difficult discussions within the S&OP process require reflection, knowledge, and relationships to keep focused and civil. - Hard fought lessons learned from Lean Six Sigma efforts need to be utilized by knowledge and reflection - CRM and SRM efforts are challenging and require wisdom

25 - Clarity and the ability to discern what is true, right/best and lasting. - Individuals who are more creative, compassionate, courageous, ethical, patient, and generous - Deep commitment to the well being and mental health of our employees. - A place where people flourish and develop. - Cultivation of the perceptual, emotional, and interpersonal aspects of human beings. - The ability to explore fundamental and difficult questions.

26 - Understanding of the filters and perceptions that help us determine why we make the choices we make. - More open to others ideas - More willing to listen and learn - Communicate more effectively in the midst of chaos. - Better navigate difficult conversations. - Invest in employees, suppliers, and customers - Consideration of ethical perspective (greatest good, respect of rights, fair and just rules and procedures, religious guidance)

27 - Get a clear understanding of wisdom and the characteristics you would like to develop. - Read biographies looking for examples of wise and unwise behavior and skillful and unskillful handling of life s situations. What values guide their lives? How were their perspectives different from your own? - Get to know people with different skills, outlooks and values. - Have an open, curious, and inquisitive mind. - Hang out with people who are already living the values you consider wise.

28 - Increase reflection by learning from mistakes Every company needs people who have made mistakes and then made the most of them. Bill Gates Set aside pride, test your underlying assumptions. Citibank CEO If you want to succeed, double your failure rate Thomas Watson IBM - Become intentional about chasing wisdom. - Put structure in place for growth Establish wisdom growth as an organizational goal Include wisdom aspects as part of hiring and evaluation Ask, in which area of wisdom do I need the most improvement.

29 - We must do that which we think we cannot. Dealing with an awkward situation better equips us for handling this situation the next time. - Talk to people with different perspectives and backgrounds. Try not to judge them, but try to understand why they feel or think as they do. - Ask a lot of questions, then listen. - Don t judge things you don t know much about. Our judgments are often limited to our own experience. - You ve had challenges, you ve tried and failed, then persisted and overcome. Let others learn from your experiences.

30 You get wiser when you put yourself out there and give yourself the opportunity to learn, make mistakes, and reflect on the experience. Every time you experience something new, you open yourself up to the possibility of learning and getting a little wiser for having tried it.

31 Wisdom and the Supply Chain A Framework for Continuously Improving Decision Making When wisdom is the priority for an individual or a team (organization) passionate about a purpose, they create what seem like miracles (Paul David Walker) Dr. Charles (Chuck) Oden charles.oden@saintleo.edu Saint Leo University

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