**June 20, 2023** #### #### Links [Transistor](https://share.transistor.fm/s/c449933e) [Spotify](https://open.spotify.com/episode/3z9CeuGojZ7tJ914nQRrbt) [Google Podcasts](https://podcasts.google.com/feed/aHR0cHM6Ly9mZWVkcy50cmFuc2lzdG9yLmZtL2Vzc2VudGlhbC1keW5hbWljcy13aXRoLWRlcmVrLWh1ZHNvbg/episode/ZGRhMjdhZDUtMzI0ZS00ZTM3LWJiNDEtZGFlMmQzZjFhNGI2?sa=X&ved=0CAUQkfYCahcKEwiYosaY_tH_AhUAAAAAHQAAAAAQLA) [Apple Podcasts](https://podcasts.apple.com/ca/podcast/ann-mactaggart-focusing-on-the-value-creation-system/id1542392917?i=1000617715163) [Podcast Addict](https://podcastaddict.com/episode/https%3A%2F%2Fmedia.transistor.fm%2Fc449933e%2F3771f3ce.mp3&podcastId=3153944) #### Summary Ann and Derek share thoughts on how to help management focus on building a value creation system. #### Concepts - [[The Management Attention Deficit Problem]] - [[Systems Thinking]] - [[Value Creation System]] #### Quotes **Management** >One of the things that we have talked about is stepping back from your business a little bit, separating yourself, and then seeing the business as a system. >This would be my advice to any business leader: Leave your office, go someplace that you can be alone, and be calm. And then take a blank piece of paper and then start documenting what your business system is. How do you turn inputs into value for customers? What's your purpose? How do you accomplish your purpose? What are the steps? >If you physically separate yourself, as well as mentally separate yourself, that allows better management attention,...that physical separation allows you space to focus on what are we really trying to accomplish here. ^g34iyj **Boards** >I have not worked with a board who fully understands their role in helping management focus their attention. >My first piece of advice to a board member..."Do No Harm! Whatever you do in a board meeting, don't distract management!" >The board should insist management can explain their system for creating value, and should insist that management reflects a clear purpose that has a business case for it, and then the board's job is to hold management to two things: one, stay focused on that system, and then, two, run it well. > Wouldn't it be cool, at the beginning of the meeting... that you're actually reminding everybody of why we're here, and what the purpose is, who the customer is, and that sets the level of engagement, but also sets the level of detail that we're trying to stay at, as a board, so that we're not distracting management. **Advisors** >Anyone who is engaged as an expert, to write a report or set of recommendations to management about what they should do to improve their business, should factor in to their remarks management's capacity to absorb what they are saying and to implement it. >The outside advisor doesn't know enough to recommend how to get unstuck, and the client is too stuck to be able to be able to think through how to get unstuck, so what you need to do is put the two together. **Employees** >Ask your boss, "What's the system? Where does my stuff that I work on come from? Who gets it when I hand it off? Can I look over the fence and see the whole system?" #### See also - [[Episode 73 Ann MacTaggart - Management Attention is a Precious Resource]] - Ann and Derek are at [Get Unconstrained](https://getunconstrained.com/) %% Outtakes >Focus on the customer, and what does the customer value? >People who are distracted ... have to go on their gut, because they haven't set up an experiment that they can observe. > You have a basis to politely and professionally push back with other questions on, "How does this serve our purpose? How does this make sure our customers are getting the most value out of dealing with us?"