Mental Models Senge Chapter 10 THE FIFTH DISCIPLINE

Mental Models Senge: Chapter 10 THE FIFTH DISCIPLINE 1

What are Mental Models? • The mental constructs that dictate – the decisions that we take – the actions that we engage in • The Second of Five Disciplines – Who remembers the other four? 2 -19 -00 Prepared by James R. Burns 2

What’s the Problem? • Many of the best ideas never get put into practice – Why? ? ? – Because they conflict with deeply held internal images of how the world works – These images limit us to familiar ways of thinking and acting • We keep making the same mistakes over and over again--we’re not learning 2 -19 -00 Prepared by James R. Burns 3

The discipline of Mental Models (MMs) Involves • Surfacing these models • Testing these models • Improving our internal pictures of how the world works • PROMISES TO BE A MAJOR BREAKTHROUGH FOR BUILDING LEARNING ORGANIZATIONS 2 -19 -00 Prepared by James R. Burns 4

Why are MMs so powerful in affecting what we do? • They affect what we see – They become the cognitive lense through which we view the world – Two people with different MMs can see the same situation and describe it differently – Big three auto-makers believed Americans bought cars on the basis of styling – Today outdated MMs dominate the service industries, which still provide mediocre quality in the name of controlling costs 2 -19 -00 Prepared by James R. Burns 5

So the Problem arises when our mental model is wrong…RIGHT? • WRONG!!! • The problem with mental models is that they are tacit--below the level of awareness • We don’t realize that our behavior is being dictated by a certain mental model that we have bought into deeply 2 -19 -00 Prepared by James R. Burns 6

A Digression and Break • Arm Wrestling • Good Exercise • Good way to break up a boring session on mental models • Find an opponent • The contestant who can defeat his opponent the most times in one minute wins. 2 -19 -00 Prepared by James R. Burns 7

An Industrial Goods Manufacturer • Was losing market share • Production managers held inventories as low as possible • Result was long lead times, long delivery times even though production capacity was adequate • A team of MIT system dynamicists were brought in 2 -19 -00 Prepared by James R. Burns 8

What did the models show? • Low inventories meant long lead times • Why not carry some inventory • They did this for a while and it worked – The firm’s market share picked up • But the new policies were not taken to heart • Four years later when another recession occurred, the firm went back to their original low inventories and began losing market share again 2 -19 -00 Prepared by James R. Burns 9

Why did they do this? • The inertia of deeply entrenched mental models can overwhelm even the best systemic insights 2 -19 -00 Prepared by James R. Burns 10

Shell--one of the first firms to investigate MMs • Is broken up into over a hundred companies • Must continually challenge the leaders of these firms to scrutinize their MMs 2 -19 -00 Prepared by James R. Burns 11

Overcoming the basic diseases of the hierarchy • For hierarchical organizations the dogma is “manage, organize, control” • For learning organizations, the dogma is vision, values, and MMs • Healthy firms are ones that bring people together to develop the best possible MMs for facing any situation at hand 2 -19 -00 Prepared by James R. Burns 12

The Experience at HANOVER • Hanover--an insurance carrier (a property and casualty insurance firm) • Hanover hired consultant Chris Argyris. He brought in his “ACTION SCIENCE” • Argyris: “Because we insulate our mental models from examination, we develop ‘SKILLED INCOMPETENCE. . ’” • Recall a conflict with a client--what did you say--what did you think, what did you not say 2 -19 -00 Prepared by James R. Burns 13

Left-Hand Column Analysis – The left-hand column details what you were thinking – The right-hand column details what was actually said • Sample case: Jim is an R&D project manager. Jim assumes his supervisor Todd feels harshly about him. Jim just had a conversation with Todd. Jim writes out the conversation with Todd in the right-hand column and his thoughts at the time in the left. 2 -19 -00 Prepared by James R. Burns 14

• TODD: Jim, I’d like to come down there next week. We’re a few • We’re two months late and I don’t think he knew. I was weeks behind, and I think we hoping we could catch up might all benefit from a meeting at your office. • I need to make it clear that I’m willing to take responsibility • ME: I’ve been very concerned for this, but I don’t want to about these deadlines. As you volunteer for more work know, we’ve had some tough luck here, and we’re working • He never offers this help in the around the clock. But of course, planning stages, when I could we’ll squeeze in a meeting at really use it. It’s too late now to your convenience. bring that up. • TODD: Well, its occurred to me • The changes he keeps making that we could use better are the real reason we’re late. coordination. There are some He must have another one. ways I could help. • It’s a shame I can’t tell him that he’s the cause of the delays. If I • ME: Well, I’m happy to talk through any changes you have can hold him off two more in mind. weeks, I think we’ll be ready. • TODD: I don’t have anything 2 -19 -00 Prepared by James R. Burns 15 specific in mind

What can you do with this? • You can learn a lot about how your responses could have been better, more to the point. • You can also ask yourself what has really led me to think and feel this way? • What was my intention? What was I trying to accomplish? • Did I achieve the results I intended? • Did my comments contribute to the difficulties 2 -19 -00 Prepared by James R. Burns 16

When we examine our mental models… • Each of us has contributed to a conflict through our own thinking • We made sweeping generalizations about others that determined what we said and how we behaved • We are led to see subtle patterns of reasoning which determines our behavior and how these continually got us into 2 -19 -00 Prepared by James R. Burns trouble 17

Hanover & Argyris’s Colleague Lee Bolman • Bolman further exposed Hanover’s managers to the ideas and practices of action science • Be a good inquirer • Balance inquiry with advocacy • Understand that all we ever have are assumptions, never “truths, ” that we always see the world through our mental models and that the mental models are always incomplete and in Western culture, non-systemic 2 -19 -00 Prepared by James R. Burns 18

Hanover Bottom Line Results • Over a 15 year period, Hanover got better and better at its margins and market share • Its average return was 21. 8% where the industry average was 15. 9 percent • Today, Hanover continues to build a foundation of basic skills in reflection, surfacing and public examination of mental models 2 -19 -00 Prepared by James R. Burns 19

Hanover’s Strategy • Recognize “leaps of abstraction” – Jumps from observation to generalization • Exposing the “left-hand column” • Balance inquiry and advocacy • Facing up to distinctions between espoused theories (what we say) and theories in use (what we do as determined by our MMs) 2 -19 -00 Prepared by James R. Burns 20

The Discipline of Mental Models • Bring key assumptions about important business issues to the surface – Who remembers the Goldratt mechanism for doing just this? • Without surfacing these assumptions, an organization’s range of actions are limited to what is familiar and comfortable • Develop face-to-face learning skills 2 -19 -00 Prepared by James R. Burns 21

The Discipline of MMs, Continued • Both sides of the discipline--business skills and interpersonal issues--are crucial • Without interpersonal skills, learning is still fundamentally adaptive, not generative • Generative learning requires managers with reflection and inquiry skills, not just consultants and planners 2 -19 -00 Prepared by James R. Burns 22

Planning as Learning and Internal Boards: Managing Mental models Throughout an Organization • Firms need to put in place mechanisms that make the practices of reflection and surfacing mental models unavoidable • How? By recasting traditional planning as learning and establishing “internal boards of directors” to bring senior management and local management together • How? By using SCENARIOS in the case of 2 -19 -00 Prepared by James R. Burns 23 Shell

More ways to surface mental models • Use tools for mapping mental models--Shell. These include systems thinking tools like the archetypes, as well as the computer simulation capabilities of a tool like VENSIM • Microworlds and numerous other “soft systems” tools are also used 2 -19 -00 Prepared by James R. Burns 24

What is the common denominator of these tools? • They work to expose assumptions about important business issues • The basic idea is to institutionalize managing mental models through the planning process 2 -19 -00 Prepared by James R. Burns 25

Hanover also uses internal boards • Composed of two to four senior managers and local general managers • Senior managers are not allowed to impose their mental models on local managers • Hanover developed a Credo on Mental Models 2 -19 -00 Prepared by James R. Burns 26

Hanover’s Credo • The effectiveness of a leader is related to the continual improvement of the leader’s mental models • Don’t impose a favored mental model on people • Self-concluding decisions result in deeper convictions and more effective implementation • Better mental models enable owners to adjust to change in environment or circumstance • Internal board members rarely need to make direct decisions 2 -19 -00 Prepared by James R. Burns 27

Hanover’s Credo, Continued • Multiple mental models bring multiple perspectives • Groups add dynamics and knowledge beyond what one person can do alone • The goal is not congruency among the group • When the process works it leads to congruency • The leaders’ worth is measured by their contribution to others’ MMs 2 -19 -00 Prepared by James R. Burns 28

Reflection and Inquiry Skills: Managing Mental Models at Personal and Interpersonal Levels • Reflection skills concern becoming more aware of how we form our mental models and the ways they influence our actions • Inquiry skills concern how we operate in face-to-face interactions with others 2 -19 -00 Prepared by James R. Burns 29

Reflection Skills • Recognize leaps of abstraction • Miller’s 7 plus/minus 2 rule • Untested models of customer behavior are often leaps of abstraction • To surface leaps of abstraction, ask “What do I believe about how the world works? ” • Then ask, “Is this generalization inaccurate or misleading? ” 2 -19 -00 Prepared by James R. Burns 30

Reflection Skills • Where possible test the generalizations directly 2 -19 -00 Prepared by James R. Burns 31

Inquiry skills • Use left-hand, right-hand column analysis • In conflicts, avoid the systems archetype of escalation 2 -19 -00 Prepared by James R. Burns 32

Mental Models and The Fifth Discipline: Systems Thinking • The two disciplines go hand-in-hand • ST without MM is like an airplane without wing flaps 2 -19 -00 Prepared by James R. Burns 33

Copyright C 2000 by James R. Burns • All rights reserved world-wide. CLEAR Project Steering Committee members have a right to use these slides in their presentations. However, they do not have the right to remove this copyright or to remove the “prepared by…. ” footnote that appears at the bottom of each slide. 2 -19 -00 Prepared by James R. Burns 34