A challenge to knowledge managers: Correcting repeated failures to learn Alan McLucas alan.mclucas@codarra.com.au 1 Why We Make ‘Bad’ Decisions Inherent massive complexity C > 1013 (Kline) Ability to reliably solve problems C < 5 (Kline) Limited cognitive capability re dynamic behaviour (Sterman, Morecroft, Kleinmuntz…) Bounded rationality (Simon, Argyris) Erroneous mental models (Senge), personal constructs (Kelly) or inappropriate use of heuristics (Gigerenzer) Restrictive ‘Systems of Meaning’ (Flood) Politics and ‘Systems of Knowledge-Power’ (Flood) Alan McLucas alan.mclucas@codarra.com.au 2 Pre-conditions for Disaster Litany of systemic failures at all levels in organisations involved A breakdown in communications Existence of a ‘culture of denial’ - no problems to worry about Failure to understand critical systemic influences Failure to learn Failure to manage risks Alan McLucas alan.mclucas@codarra.com.au 3 CASE STUDIES • 18 soldiers killed and12 injured when two Black Hawk helicopters collided during a routine exercise •A 1kg fragment of steel killed a spectator who was 430 . metres away among the watching crowd of over 30,000 • A fire in the engine room of HMAS WESTRALIA resulted in the deaths of four Naval personnel. •Explosion and fire at Esso’s Longford Gas Plant No.1 in Sep 98 caused the death of two workers and injuries to eight others Alan McLucas alan.mclucas@codarra.com.au 4 Selection of Case Studies • Drawn from real-life ‘messy’ problems • Had to be extensively documented • Needed to be reported with high levels of objectivity and reliability • Able to withstand legal and public scrutiny Alan McLucas alan.mclucas@codarra.com.au 5 Concept (cognitive) Mapping ‘Active smoking, rather than passive smoking leads to heart disease’ active smoking … passive smoking Alan McLucas alan.mclucas@codarra.com.au heart disease 6 Concept map - a partial low HDL/LDL or temporary view, a transient object high cholesterol stress to aid understanding ! genetic predisposition active smoking heart disease passive smoking elevated blood pressure Alan McLucas alan.mclucas@codarra.com.au lack of regular exercise 7 Black Hawk Helicopter Crash Case Study Alan McLucas alan.mclucas@codarra.com.au 8 Alan McLucas alan.mclucas@codarra.com.au 9 Concept Mapping - Conclusions • Concept maps, in each case studied, exhibited very similar structures. • Critical ‘core’ nodes in each concept map could be summarised as … failure to understand, failure to learn and, hence, failure to manage risks. • Focusing management effort on critical ‘core’ nodes might well have averted these disasters - but who would have known? Alan McLucas alan.mclucas@codarra.com.au 10 Concept Mapping - Conclusions • Managers and decision-makers have an underdeveloped appreciation of the nature of the complexity with which they must deal. • Techniques demonstrated here can enhance understanding, learning and management of risks in complex environments. • Greatest gains are to be made in correcting the worst failure: repeated failure to learn. Alan McLucas alan.mclucas@codarra.com.au 11 Recognition-Primed Decision-Making (Klein) 12 Challenge to Knowledge Managers • Understand the strengths and weaknesses of naturalistic decision-making. • Recognise systemic structures underlying complex problems. • Ability to identify critical nodes, ‘pressure points’ or ‘leverage points’ - where to apply management effort to produce a big change. • Understanding the dynamics that produce counter-intuitive behaviour in problems and elude our strategies to correct them. Alan McLucas alan.mclucas@codarra.com.au 13