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quot;Deep Smarts; a potent form of experience-based wisdom.quot;




                                        Deep Smarts:
                             Experience-Based Wisdom
                                                 A presentation by

                       Dorothy Leonard and Walter Swap
                                                  March 16, 2005

                                             Synopsis by Rod Cox
                                  ________________________________________




    quot;Throughout your organization are people whose intuition, judgment, and knowledge, both
    explicit and tacit, are stored in their heads and – depending on the task – in their hands.
    Their knowledge is essential. They are, relative to others, expert. These are the people with
    Deep Smarts, and it is not an exaggeration to say that they form the basis of your
    organizational viability.quot;

The business world of the 1990s is indelibly linked to the spectacular rise and fall of entrepreneurial
companies. Leaders of these companies were typically young, highly intelligent, very energetic, technically
skilled, and refreshingly unfettered by conventional business bureaucracies. Yet few of their innovative
companies survived. In spite of their obvious talents, these leaders lost their shirts when, among other
business shifts, their abundant supply of venture capital dried up. Gifted sprinters in an up market, they
found themselves unprepared for the demands of a twenty-kilometer down-market race. In case after case,
these leaders lacked the tacit knowledge to make it work. Missing were Deep Smarts, among them:
    •    the necessary experience to comprehend complex systems
    •    a tacit understanding of the inferences and implications of their marketplace
    •    an awareness of how seemingly unrelated internal and external forces (shifts in world finances, for
         instance) can affect a company.
Less than a decade later, leadership issues remain as hot as they were in the 1990s, but for a different
reason. With the impending exodus of Baby Boomers from the workforce, what will happen to organizations
when the official and unofficial quot;smartsquot; walk out the door?
Last month's Management Forum Series presenter, Maryann Billington, discussed the shifts in age
demographics which foretell a severe world-wide shortage of talented workers. In this presentation, Leonard
and Swap address the implications of a potential shortage of the wise, deep, smart leadership and
experience that forms the backbone of successful companies.
                               ____________________________________
Drs. Leonard and Swap are co-authors of Deep Smarts: How to Cultivate and Transfer Enduring Business
Wisdom, upon which this Executive Forum presentation is based. Dr. Dorothy Leonard is Professor of
Business Administration Emerita at Harvard Business School. Her husband, Dr. Leonard Swap, is
Professor of Psychology Emeritus at Tufts University where he was also Dean of the College. Their book is
based upon extensive multi-year research (much of it in person) at companies of all levels world-wide and
as divergent as NASA, Netscape, GE Healthcare, BMW, American Girl, Bank of America, World Bank,
Whirlpool, BestBuy, Samsung, and Toyota.

The quotes, figures, and graphics in this synopsis are from their presentation and book. Executive Forum
encourages you to read the entire book paying particular attention to the excellent Implications for
Managers and Keep in Mind sections at the end of each chapter. Also take note of the abundant real-
life examples which show how Deep Smarts play out in organizations that are familiar – and perhaps similar
– to yours.



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quot;Deep Smarts; a potent form of experience-based wisdom.quot;




quot;W                  e need leaders with high levels of judgment, experience and capability, as we have
                    seen how profoundly even a few individuals lacking such abilities can influence the
                    course of our lives and the lives of our organizations . . . We cannot afford to leave the
accumulation of deep smarts to chance and random experience. Rather, we need to be purposeful in our
approach.quot;


What are Deep Smarts, and Why Do We Care About Them?
quot;Deep Smarts address a special form of experience-based expertise that . . . is critical for managers to
understand and appreciate – for their own benefit as well as that of their organizations. Deep Smarts are a
potent form of expertise based on first-hand life experiences, providing insights drawn from tacit knowledge,
and shaped by beliefs and social forces.

Deep Smarts are as close as we get to wisdom. They are based on know-how more than know-what – the
ability to comprehend complex, interactive relationships and make swift, expert decisions based on that
system level comprehension but also the ability, when necessary, to dive into component parts of that
system and understand the details. Deep Smarts cannot be attained through formal educations alone – but
they can be deliberately nourished and grown and, with dedication, transferred or recreated.quot;

Leaders with Deep Smarts can be identified by their ability:
    •    to address practical, real-life (often urgent) issues effectively
    •    to comprehend complex systems (when a change is made in component A, what are the
         corresponding changes in components B and C?)
    •    to use a wealth of tacit knowledge – the things that are in our heads but are not easily articulated
    •    to quickly sort through a repertoire of experiences and perceptions – internal and external
         influences, acquired and shaped over time – to come up with a nuanced response to the situation
         at hand


                                                   Shaping Deep Smarts


                       Knowledge Framing: Beliefs and          Knowledge Filtering: Social
                       Assumptions (Chapter 5)                 Influences (Chapter 6)

Internal Influences                                                                                     Eternal Influences
       (Self)                                                                                             (Other People)
                       Knowledge Building: Experience          Knowledge Transferring: Coaching
                       and Expertise (Chapters 2, 3 and 4)     and Guided Experience (Chapters 7
                                                               and 8)


                                                  Acquiring Deep Smarts



The horizontal axis denotes internal influences (who we are, our upbringing, education and backgrounds) as
well as external influences (people whom we admire, our coaches, those we emulate).

The vertical axis denotes the generic processes of knowledge acquisition (personal or vicarious experience)
and shaping (beliefs, assumptions and social influences).



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quot;Deep Smarts; a potent form of experience-based wisdom.quot;




Knowledge Building: Acquiring Deep Smarts By Means Of
Internal Experience and Expertise
quot;People learn – create and recreate knowledge – through experience. [Therefore] enticing longtime
employees to retire has unintended consequences.quot; When someone leaves, we lose not just technical
proficiency, but also their acquired knowledge of key patterns, interactions and relationships.

quot;The ability to see patterns in a sea of information is a hallmark of Deep Smarts.quot; Key to building this
pattern-recognition is experience. Some experiences occur frequently, others less frequently. If
experiences are plotted on a bell curve, the experiences in the middle (higher) section of the curve are likely
to be common events encountered even by beginners. Deep Smarts may not be as critical for success in
this middle area. But the tails of the bell curve – the areas of less common situations and practices – are
where people with Deep Smarts are invaluable. This is where their years of practice pay off by making
them particularly capable of intuitively recognizing patterns and solutions. (Keep in mind, however, that
mindless repetition can develop bad habits. Not every long-term employee has Deep Smarts.)

Knowledge Framing: Shaping Deep Smarts By Means Of Internal
Beliefs And Assumptions
Beliefs are important to Deep Smarts. They build up over time as an outcome of life experience and
influence by people around us. They are often tacit and unquestioned, and they often are the basis for our
decisions and actions. Granted, truth may be relative to our viewpoint, but they are part of our Deep Smarts,
and they will influence our decisions.

Beliefs are core to who we are – our personal identities – and they support much of our behavior. They are
highly resistant to social influence. Think of beliefs as quot;lenses that refract our view of the world and define
what is real – even when quot;objectivequot; evidence is to the contrary. One person's truth is another's myth. That
is, the opposite of a truth is not necessarily a lie, but another truth.quot;

Because our personal identities are formed in large part by our individual beliefs, our beliefs serve as a filter
which influences how we see the world.

         Discipline-based beliefs literally affect what someone perceives. Often, we migrate to specific
         disciplines because our own worldview is supported and reinforced in that discipline. Hence, it
         heavily influences the nature of our Deep Smarts. For example, BMW designers subscribe to a
         discipline that believes quot;BMW customers love their cars, and in no small part because they are
         produced with so much intimate, affectionate attention [to the sensations of good design].quot;

         Organizational beliefs affect what we believe to constitute good strategies and business
         practices. These often originate in the early days of the organization and become entrenched. As
         such, they become part of the Deep Smarts of the organization. quot;When belief systems are central
         to the identity of the organization and reinforced by early experience, they can become as strong as
         ideology – almost a religion. [Alternatively] they can stifle innovation and learning.quot;

         Polaroid, as a case in point, refused to consider digital imaging because their business model
         rigidly insisted that quot;customers want a physical print.quot; Polaroid was further hampered by insisting
         on the high profit margins generated by film; profit margins on digital imaging were predicted to be
         only half that of film. By the time Polaroid's precipitous drop in market share forced it to reconsider
         and bring out a digital camera in 1996, it was too late. In 2001, Polaroid filed for Chapter 11
         bankruptcy. quot;The new and imported knowledge about opportunities in the digital markets failed to
         fit with the entrenched belief systems about what was a good business model.quot;

         Cultural beliefs include language, behavioral norms and all of those things that give an
         organization an identity different from any other organization. quot;Cultural values affect virtually all
         individual behaviors and behaviors related to business are no exception.quot;



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quot;Deep Smarts; a potent form of experience-based wisdom.quot;



Those who seek to transfer Deep Smarts need to be aware of the belief systems involved: those of the
people or organization as well as their own. When beliefs are very central, they are difficult to change or
extinguish. When they are broader, they are more easily transferred.

To facilitate changes in belief systems:

         Challenge assumptions. Whirlpool opened a lucrative brand-new market by challenging the
         assumption that all of its customers were women. After taking a candid look at how home
         appliances are used, they introduced their Gladiator line of man-targeted appliances. Gladiator
         includes a refrigerator designed specifically to hold beer in the garage and is expected to generate
         $300 million for Whirlpool by 2007.

         Change frames. Reconfigure the way people view the work world. quot;Convince yourself that the
         situation represents a new and exciting opportunity, that other team members are vital to its
         success, then communicate this sense of excitement and interdependence to the team.quot;

         Create counter-experiences. Cross Corporation found that their commitment to quality
         inadvertently created a quality control ethic that resulted in the rejection of nearly 30% of their
         finished pens because the pen's appearance wasn't perfect – under magnification. Vigorous
         workforce re-education measures were stymied until a number of workers were invited to view,
         through a one-way window, customers sorting through a batch of pens.

         The customers regularly praised the pens' writing abilities. Not one customer mentioned quot;flawless
         appearance.quot; This helped the workers change their assumptions and significantly fewer pens
         were subsequently rejected. The point is, people are likely to change their core beliefs only when
         they encounter a stronger belief and perhaps not even then.

Managers who understand the relationship between beliefs and Deep Smarts are better prepared to shift the
beliefs that are jamming the operation.

 quot;In the best of all worlds, managers create an environment where beliefs and assumptions are routinely
challenged, because dissenting views are almost always useful. Deep Smarts cannot build in a culture that
allows no questioning because in such an organization, only top managers are assumed to have relevant
experience. Obviously, this cannot be the case. One important managerial skill is the ability to identify
assumptions (including one's own) and question them.quot;



Knowledge Filtering: Shaping Deep Smarts By Means Of
External Social Influences
Social influences contribute to Deep Smarts, for better or worse. By this, we mean that perceptions – our
own or those of others, internal or imported, beneficial or pernicious – can affect how knowledge is seen and
used in organizations. Although one person's truth may be another person's myth, the people and the
organizations we admire heavily influence our view of reality.

We develop Deep Smarts to some extent by imitating them. Under the best of circumstances, we can build
supportive knowledge as a result of influences; we can also transfer Deep Smarts to others by means of
social influence.

quot;The more aware we are of how knowledge is screened and shaped, and the greater choice we exercise on
how we ourselves are influenced, the better. . . . Without direct and extensive knowledge transfer, we rarely
acquire enough of the smarts we admire to achieve the same level of success as our models.quot;




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quot;Deep Smarts; a potent form of experience-based wisdom.quot;



Social influence carries with it a variety of emphases, influences and packaging.


                             Varieties of Social Influence on Beliefs and Knowledge

Increasing influence

                       Compliance               Conformity                  Herd                    Tribe
Nature of              Explicit: quot;Do this       Explicit: quot;I know this is   Largely explicit: quot;I    Largely tacit: quot;This is
Influence              because I know more      wrong, but everyone         don't know what to      how my tribe does
                       than you doquot; or quot;Do      else is doing it.quot;          believe, but everyone   things, what they
                       this or else.quot;                                       else seems to know      believe in. So do I.quot;
                                                                            what to do.quot;
Basis of               Direct exercise of       Indirect Influence:         Emotional arousal       Desire for belonging,
Influence              power: reward,           whatever quot;everyonequot;         caused by scarcity or   emulation.
                       punishment,              is doing. Fear of           greed.
                       expertise.               looking bad, odd, quot;out
                                                of it.quot;
Uncertainty Level      Generally low            Generally low               High                    Generally low unless
About What Is                                                                                       conflicting views of
Real or Correct                                                                                     other tribes are made
                                                                                                    apparent.
Type of Change         Shallow: behavior        Shallow: behavior           Moderate: behavior      Deep: behavior and
                       change. Peripheral       change. Peripheral          change. Peripheral      central beliefs may
                       beliefs may change;      beliefs may change.         and moderately          change.
                       may build receptors                                  central beliefs may
                                                                            change.
Direct Contact         Normally, yes.           Yes. Influence              No. Perception of       No. Person need not
Necessary?             Monitoring of behavior   diminishes when not         consensual beliefs is   be a member of the
                       enhances compliance.     face-to-face.               important.              tribe to be influenced.
                                                                                                    Role modeling is
                                                                                                    possible with no
                                                                                                    personal contact or
                                                                                                    interaction.
Countermeasures        If possible, leave the   Seek allies to reduce       Counter with other      Reframe beliefs to
                       relationship.            conformity pressures.       more central beliefs.   align with goals. Seek
                                                                                                    guided experience for
                                                                                                    reality check. Draw
                                                                                                    on other tribes for
                                                                                                    support.


Note that social influence has light side as well as a dark side. When social influence results in increased
understanding, production, profitability and worker satisfaction, we have Harley-Davidson. When social
influence results in blind obedience, we have Jonestown.

    •       Compliance – quot;just doing itquot; – rarely builds Deep Smarts because it seldom builds receptors; thus,
            the transfer of beliefs or knowledge is limited.
    •       Conformity or acquiescence doesn't motivate people to understand the issues or seek further
            experience because the motive for learning comes from outside the individual. In other words, it
            doesn't require quot;commitment from the heart as well as from the brain,” and is unlikely to build Deep
            Smarts.
    •       Herd influences – when we get swept up in a general belief that includes emotion as well as reason
            – includes the aspect of uncertainty about what is true. In this scarcity/greed approach, people
            may focus on what other people are doing at the expense of allowing for alternatives; decisions
            made quot;while galloping along with the herdquot; are based on shallow Smarts.



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quot;Deep Smarts; a potent form of experience-based wisdom.quot;


         Although herds by nature don't have Deep Smarts, they are an excellent place to develop them. It
         is much easier to develop knowledge sharing when people ascribe to the same organizational
         language, goals, practices and disciplines. [This] has both a good side and a bad side. The bad
         side . . . is when they are uncertain or confused about the right course of action, people often follow
         the herd, and herds don't have Deep Smarts. . . . It takes strong leadership to withstand the power
         of a stampede, much less to stop one.quot;

    •    Tribes are communities of like-minded individuals. The connection is often very powerful
         emotionally, leading to acceptance of new behaviors and beliefs. Tribes are excellent for
         developing and transferring Deep Smarts.

          quot;[Tribe communities] help in the building and transfer of smarts in multiple ways: they help
         members locate relevant processes rather than reinvent them; they foster creative fusion among
         experts; and they socialize new members into the belief systems of the group. Perhaps most
         important, they serve as the focal group for tribal passions – the love of the mission that draws
         these people together. . . Participants in tribal communities gain more than knowledge about a
         given field of practice; they learn know-how. These communities of practice provide the focus
         necessary for providing the practical, experiential basis for Deep Smarts.quot;

         Note that tribes may occur as an entire organization, they may occur as a group within an
         organization, or they may occur outside an organization. Wherever we create reference models
         that we want to join, they influence us and define what is possible for us.

         Consider the power of alumni networks that throughout our lives may provide us with an identifying
         framework. And in a more monetary sense, they may also provide a rich connective network of
         similar-minded people through whom we can tap into career resources.
         quot;The people who work for us generally want to be part of a tribe. . . The social impulse is wired in.quot;
         To a certain extent, we can develop Deep Smarts by imitating what individuals, groups or
         organizations are doing. Benchmarking and best-practices are common ways to show us paths to
         greater success. However, imitating the practices of an established company may not work if it
         conflicts with local practice, or if the potential learning occurs in the absence of receptors.

A downside to social influence is that people may simply go through the motions and comply with directives
– particularly in the presence of an influential manager – rather than absorb or build Deep Smarts. On the
other hand, quot;a manager can create a powerful motivating force in a group that is a tribe people want to join
and stay with. . . . If you and your colleagues are strong leaders, people will see you as positive role models
and try to imitate you. Positive models demonstrate that lofty achievements are possible and create
receptors in that they embody at least one visible path to some desirable goal.quot;

Knowledge Transferring: Acquiring Deep Smarts By Means Of
External Coaching And Guided Experience
Let us first establish that transferring Deep Smarts requires coaching techniques more than teaching
techniques. Coaches have domain experience to pass along to others. This is important because there are
many times when the knowledge needs to be passed on. Specifically, whenever we leave a job, we take
with us an immense treasure of knowledge – Deep Smarts often sourced solely in our heads – that is critical
to the success of the incoming job holder.
    •    quot;Experts can mentor novices despite a very large gap in knowledge if the experts are willing to
         coach and the novices can bear having their knowledge gap exposed.
    •    All along the ladder of expertise, people can coach those who are less experienced. They transfer
         what they have learned so far.
    •    Coaching can help shorten the time to fill some parts of the knowledge gap. . . . A little knowledge
         is helpful . . . to frame experiences as they unfold.quot;




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quot;Deep Smarts; a potent form of experience-based wisdom.quot;




Add to this an understanding that transfer of knowledge requires a skillful and willing coach, and a capable,
receptive learner. quot;Neuroscientists have known for some time that experience alters the structure of the
brain, encoding the new information in specific structures and thereby modifying those structures. The
result? Direct experience is more effective in locking in memories that can be retrieved later, and hence is
more useful than is vicarious learning.quot; Thus, the more direct the experience, the greater the Deep Smarts
transfer.

Deep Smarts experience gives us something in our memory to which we can link a situation. Said another
way, quot;information does not become knowledge until it connects with something we already know.quot;

Coaching requires a level of expertise, to be sure, but it also requires the desire and skill to connect with
people who may have little knowledge. Visualize this as a ladder where every person on a rung above that
of novice has knowledge valuable to anyone on a lower rung.



         The Ladder Of Expertise

                  Master
                                                      quot;The world is not divided between novices and experts. . .
                (Expert)
                                                      Attaining Deep Smarts takes time as well as effort. . . All
                                                      of us at some times in our lives assume the role of novice.
                                                      Most of us spend our professional and personal lives
               Journeyman
                                                      moving up the ladder of expertise.quot;
                (Advanced)

                                                      As a rule of thumb, consider the ten-year rule:

               Apprentice                              quot;Although the sheer amount of practice and experience is
             (Intermediate)                           not a powerful predictor of expertise, the combination of
                                                      an extended period of concentrated effort coupled with
                                                      self-reflection has been shown to build expertise in a wide
                                                      variety of domains. . . Most evidence suggests that it
                                                      takes at least ten years of concentrated study and
                                                      practice to become experts as opposed to being merely
                Novice
                                                      competent.quot;
              (Beginner)




Experts behave differently than novices.
    •    They recognize bear traps because of their pattern-recognition.
    •    They make decision swiftly because of their expertise.
    •    They recognize context because of their conditionalized knowledge.
    •    They extrapolate alternatives because of their experience.
    •    They make fine distinctions that are indistinguishable to an untrained eye or ear.
    •    They know what they don't know when they encounter an unusual situation.
    •    They know when rules don't apply because no two situations are exactly the same.




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quot;Deep Smarts; a potent form of experience-based wisdom.quot;




                                 Differences Between Experts and Novices

                                     Experts                          Novices                           Limitations
Speed of Decision-        Make decisions swiftly,          Need to review all facts,        Over-confident expert may
Making                    efficiently, without reviewing   choose among alternatives.       ignore relevant data.
                          basic facts.
Context                   Take context into account:       Rely on rules of thumb that      Difficult to transfer
                          knowledge is                     minimize context.                contextualized knowledge.
                          quot;contextualized.quot;
Tacit Knowledge           Have extensive tacit             Knowledge is largely explicit.   Difficult to access tacit
(Intuition)               knowledge – drives decision                                       knowledge so transfer is
                          making.                                                           difficult.
Pattern-recognition       Have large inventory of          Limited experience constrains    When no patterns exist,
ability                   patterns drawn from              number of patterns.              expert may be no better than
                          experience. Unflappable.                                          novice.
Extrapolation             Are able to extrapolate from     Lack of receptors limits basis   Mental set: Expert may base
                          novel situation to find a        for extrapolation.               solution on inappropriate
                          solution.                                                         pattern.
Awareness of              Know when rules don't apply.     Don't know what they don't       Ignorance: Expert may
knowledge gaps                                             know.                            assume expertise where
                                                                                            none exists.
Discrimination            Are able to make fine            Use of rules of thumb            Expertise may not transfer if
                          distinctions.                    obscures fine distinctions.      novice lacks receptors.
Analysis                  Process faster because of        Analysis often based on          Pattern may not apply in the
                          pattern-recognition in head.     microscopic view.                case at hand.


A powerful way to convince a well-intended yet over-confident protégé that he still has things to learn is to
take him on a field trip. Direct observation is usually a more powerful teacher than indirect recitation.

To develop receptors and increase knowledge transfer:
    •      Create an alignment (partnership) between the coach and the protégé so that they agree on
           direction.
    •      Uncover buried knowledge by using relevant, cogent stories as learning tools.
    •      Transfer tacit knowledge by being open, observable and inclusive, and by creating experience
           opportunities where the knowledge can be relearned or recreated.
    •      Develop cognitive knowledge by using the protégé's current level (pre-existing stock) of
           understanding as a starting point.
    •      Take advantage of the apprentices and journeymen. Sometimes the gap on the Ladder of
           Expertise between expert and novice is too great to bridge.
    •      Create incentives for the coach-to-coach and remove dis-incentives.


Applications: What Does This Mean For You and Your
Organization?
1. As mentioned before, Deep Smarts are an essential part of core capabilities, the engine of your
organization. Since our culture encourages sink-or-swim quot;you figure it outquot; job transitions, critical (often



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quot;Deep Smarts; a potent form of experience-based wisdom.quot;


tacit) knowledge now resting in the minds of soon-to-retire workers is in danger of being lost. quot;Younger
workers can be trained, but experience is irreplaceable.quot; (Lt. Col. Alex Findlay)
Recognize that transferring Deep Smarts is difficult:
     •    Your organization may not see a need
     •    It takes time and energy
     •    It may require a new language
     •    It may slow production-oriented activities

     •    People may resist if they perceive that they'll have less personal value

2. Information becomes knowledge when it connects with what we know; i.e., with our experiences with
events, data, objects and people. Without these receptors, information remains just information, not
knowledge or smarts. As the old saying goes, quot;a lecture is where the notes of the professor go to the notes
of the students without passing through the heads of either.quot; Some methods of knowledge transfer are
more effective than others. In order of self-directedness, they are:

          Active Learning

                              Learning by doing
                              Guided experience
                                 - Guided practice
                                 - Guided observation
                                 - Guided experimentation
                                 - Guided problem-solving
                              Socratic questioning (facilitating)
                              Stories with a moral
                              Rules of thumb
                              Directives, presentations and lectures
          Passive Learning




                    Mode                                    Potential Application In Your Organization
Directives, presentations and lectures
require little of the learner except to pay
attention and follow orders. Nevertheless, they
can be helpful when the knowledge is known
but needs practice, or when knowledge is
nearly absent and there are no receptors (as a
starting point.)

Rules of thumb – generally reliable rules –
may provide useful shortcuts to more
contextualized understanding and are useful for
transferring information quickly.




Stories with a moral are likely to be
remembered since narratives are more
engaging than raw data.




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quot;Deep Smarts; a potent form of experience-based wisdom.quot;




Socratic questioning requires the listener to
go beyond active listening to come up with
answers themselves. This facilitates
clarification as well as assumption challenges.




Guided observation includes learning from
modeled action (watching and shadowing) and
by challenging assumptions and beliefs (mind-
stretching). quot;Guiding someone to observe
behaviors to which they would not normally be
exposed creates an opportunity for confronting
assumptions and previously unquestioned
beliefs.quot;

Guided problem solving has a major
advantage in that the coach and the protégé
are working jointly on the problem. Thus, the
engaged protégé learns how to approach the
problem.



Guided experimentation focuses on
identifying potential options for action.




The several modes of guided experience are particularly effective in developing and transferring Deep
Smarts, especially when used in an atmosphere of deliberate practice that includes identifying the particular
skills that need practice, encouraging reflection and providing positive feedback. Guided experience also
coaches the novice into another area of Deep Smarts: know-who. People with Deep Smarts seldom know
all the answers so they draw upon their knowledge of who has them.


3.    How do you plan to develop Deep Smarts in your managers?

           Where do the Deep Smarts lie – and where are the knowledge gaps?


           Who are your experts and knowledge coaches?


           How can you design projects to be dual purpose: getting the project done and coaching the
           protégés?


           How will you initiate tomorrow's leaders into the business of building and transferring Deep Smarts?




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4.   How do you plan to develop Deep Smarts in your individuals and yourself?

          How can you purposefully build an experience repertoire? (quot;How can I build patterns of
          recognition?quot;)


          Who are your knowledge coaches? (Who are my best potential mentors?quot;)


          What will it take to insist on experience-based learning in addition to classroom education? (quot;How
          can I get experience?quot;)

          If your career doesn't suit you, what experiments can you plan? (quot;What am I interested in, and how
          can I experience it?quot;)


5.   What are the threats to losing or failing to nurture Deep Smarts?




6.   What beliefs and assumptions shape your Smarts? Which ones should you challenge?




7.   What social influences filter your Smarts? Which ones are beneficial and which are dangerous?




                                       ____________________________




quot;The activities and decision – large and small, planned and serendipitous – of an entire life
build Deep Smarts. . . Seemingly incidental or even trivial decision can aggregate to make
large differences in whether and how we progress up the ladder of expertise. . . Our Deep
Smarts develop continuously – at work, in leisure . . . and in morning meetings. The more
consciously we design our own experience and that of those individuals we can help
move up the ladder of expertise, the deeper the resulting smarts.quot;




                              25th Anniversary Management Forum Series
                                  Executive Forum        www.executiveforum.com
                    Members may copy for internal training use only. All other rights are withheld.
                                                      Page 11

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Deep Smarts

  • 1. quot;Deep Smarts; a potent form of experience-based wisdom.quot; Deep Smarts: Experience-Based Wisdom A presentation by Dorothy Leonard and Walter Swap March 16, 2005 Synopsis by Rod Cox ________________________________________ quot;Throughout your organization are people whose intuition, judgment, and knowledge, both explicit and tacit, are stored in their heads and – depending on the task – in their hands. Their knowledge is essential. They are, relative to others, expert. These are the people with Deep Smarts, and it is not an exaggeration to say that they form the basis of your organizational viability.quot; The business world of the 1990s is indelibly linked to the spectacular rise and fall of entrepreneurial companies. Leaders of these companies were typically young, highly intelligent, very energetic, technically skilled, and refreshingly unfettered by conventional business bureaucracies. Yet few of their innovative companies survived. In spite of their obvious talents, these leaders lost their shirts when, among other business shifts, their abundant supply of venture capital dried up. Gifted sprinters in an up market, they found themselves unprepared for the demands of a twenty-kilometer down-market race. In case after case, these leaders lacked the tacit knowledge to make it work. Missing were Deep Smarts, among them: • the necessary experience to comprehend complex systems • a tacit understanding of the inferences and implications of their marketplace • an awareness of how seemingly unrelated internal and external forces (shifts in world finances, for instance) can affect a company. Less than a decade later, leadership issues remain as hot as they were in the 1990s, but for a different reason. With the impending exodus of Baby Boomers from the workforce, what will happen to organizations when the official and unofficial quot;smartsquot; walk out the door? Last month's Management Forum Series presenter, Maryann Billington, discussed the shifts in age demographics which foretell a severe world-wide shortage of talented workers. In this presentation, Leonard and Swap address the implications of a potential shortage of the wise, deep, smart leadership and experience that forms the backbone of successful companies. ____________________________________ Drs. Leonard and Swap are co-authors of Deep Smarts: How to Cultivate and Transfer Enduring Business Wisdom, upon which this Executive Forum presentation is based. Dr. Dorothy Leonard is Professor of Business Administration Emerita at Harvard Business School. Her husband, Dr. Leonard Swap, is Professor of Psychology Emeritus at Tufts University where he was also Dean of the College. Their book is based upon extensive multi-year research (much of it in person) at companies of all levels world-wide and as divergent as NASA, Netscape, GE Healthcare, BMW, American Girl, Bank of America, World Bank, Whirlpool, BestBuy, Samsung, and Toyota. The quotes, figures, and graphics in this synopsis are from their presentation and book. Executive Forum encourages you to read the entire book paying particular attention to the excellent Implications for Managers and Keep in Mind sections at the end of each chapter. Also take note of the abundant real- life examples which show how Deep Smarts play out in organizations that are familiar – and perhaps similar – to yours. 25th Anniversary Management Forum Series  Executive Forum www.executiveforum.com Members may copy for internal training use only. All other rights are withheld. Page 1
  • 2. quot;Deep Smarts; a potent form of experience-based wisdom.quot; quot;W e need leaders with high levels of judgment, experience and capability, as we have seen how profoundly even a few individuals lacking such abilities can influence the course of our lives and the lives of our organizations . . . We cannot afford to leave the accumulation of deep smarts to chance and random experience. Rather, we need to be purposeful in our approach.quot; What are Deep Smarts, and Why Do We Care About Them? quot;Deep Smarts address a special form of experience-based expertise that . . . is critical for managers to understand and appreciate – for their own benefit as well as that of their organizations. Deep Smarts are a potent form of expertise based on first-hand life experiences, providing insights drawn from tacit knowledge, and shaped by beliefs and social forces. Deep Smarts are as close as we get to wisdom. They are based on know-how more than know-what – the ability to comprehend complex, interactive relationships and make swift, expert decisions based on that system level comprehension but also the ability, when necessary, to dive into component parts of that system and understand the details. Deep Smarts cannot be attained through formal educations alone – but they can be deliberately nourished and grown and, with dedication, transferred or recreated.quot; Leaders with Deep Smarts can be identified by their ability: • to address practical, real-life (often urgent) issues effectively • to comprehend complex systems (when a change is made in component A, what are the corresponding changes in components B and C?) • to use a wealth of tacit knowledge – the things that are in our heads but are not easily articulated • to quickly sort through a repertoire of experiences and perceptions – internal and external influences, acquired and shaped over time – to come up with a nuanced response to the situation at hand Shaping Deep Smarts Knowledge Framing: Beliefs and Knowledge Filtering: Social Assumptions (Chapter 5) Influences (Chapter 6) Internal Influences Eternal Influences (Self) (Other People) Knowledge Building: Experience Knowledge Transferring: Coaching and Expertise (Chapters 2, 3 and 4) and Guided Experience (Chapters 7 and 8) Acquiring Deep Smarts The horizontal axis denotes internal influences (who we are, our upbringing, education and backgrounds) as well as external influences (people whom we admire, our coaches, those we emulate). The vertical axis denotes the generic processes of knowledge acquisition (personal or vicarious experience) and shaping (beliefs, assumptions and social influences). 25th Anniversary Management Forum Series  Executive Forum www.executiveforum.com Members may copy for internal training use only. All other rights are withheld. Page 2
  • 3. quot;Deep Smarts; a potent form of experience-based wisdom.quot; Knowledge Building: Acquiring Deep Smarts By Means Of Internal Experience and Expertise quot;People learn – create and recreate knowledge – through experience. [Therefore] enticing longtime employees to retire has unintended consequences.quot; When someone leaves, we lose not just technical proficiency, but also their acquired knowledge of key patterns, interactions and relationships. quot;The ability to see patterns in a sea of information is a hallmark of Deep Smarts.quot; Key to building this pattern-recognition is experience. Some experiences occur frequently, others less frequently. If experiences are plotted on a bell curve, the experiences in the middle (higher) section of the curve are likely to be common events encountered even by beginners. Deep Smarts may not be as critical for success in this middle area. But the tails of the bell curve – the areas of less common situations and practices – are where people with Deep Smarts are invaluable. This is where their years of practice pay off by making them particularly capable of intuitively recognizing patterns and solutions. (Keep in mind, however, that mindless repetition can develop bad habits. Not every long-term employee has Deep Smarts.) Knowledge Framing: Shaping Deep Smarts By Means Of Internal Beliefs And Assumptions Beliefs are important to Deep Smarts. They build up over time as an outcome of life experience and influence by people around us. They are often tacit and unquestioned, and they often are the basis for our decisions and actions. Granted, truth may be relative to our viewpoint, but they are part of our Deep Smarts, and they will influence our decisions. Beliefs are core to who we are – our personal identities – and they support much of our behavior. They are highly resistant to social influence. Think of beliefs as quot;lenses that refract our view of the world and define what is real – even when quot;objectivequot; evidence is to the contrary. One person's truth is another's myth. That is, the opposite of a truth is not necessarily a lie, but another truth.quot; Because our personal identities are formed in large part by our individual beliefs, our beliefs serve as a filter which influences how we see the world. Discipline-based beliefs literally affect what someone perceives. Often, we migrate to specific disciplines because our own worldview is supported and reinforced in that discipline. Hence, it heavily influences the nature of our Deep Smarts. For example, BMW designers subscribe to a discipline that believes quot;BMW customers love their cars, and in no small part because they are produced with so much intimate, affectionate attention [to the sensations of good design].quot; Organizational beliefs affect what we believe to constitute good strategies and business practices. These often originate in the early days of the organization and become entrenched. As such, they become part of the Deep Smarts of the organization. quot;When belief systems are central to the identity of the organization and reinforced by early experience, they can become as strong as ideology – almost a religion. [Alternatively] they can stifle innovation and learning.quot; Polaroid, as a case in point, refused to consider digital imaging because their business model rigidly insisted that quot;customers want a physical print.quot; Polaroid was further hampered by insisting on the high profit margins generated by film; profit margins on digital imaging were predicted to be only half that of film. By the time Polaroid's precipitous drop in market share forced it to reconsider and bring out a digital camera in 1996, it was too late. In 2001, Polaroid filed for Chapter 11 bankruptcy. quot;The new and imported knowledge about opportunities in the digital markets failed to fit with the entrenched belief systems about what was a good business model.quot; Cultural beliefs include language, behavioral norms and all of those things that give an organization an identity different from any other organization. quot;Cultural values affect virtually all individual behaviors and behaviors related to business are no exception.quot; 25th Anniversary Management Forum Series  Executive Forum www.executiveforum.com Members may copy for internal training use only. All other rights are withheld. Page 3
  • 4. quot;Deep Smarts; a potent form of experience-based wisdom.quot; Those who seek to transfer Deep Smarts need to be aware of the belief systems involved: those of the people or organization as well as their own. When beliefs are very central, they are difficult to change or extinguish. When they are broader, they are more easily transferred. To facilitate changes in belief systems: Challenge assumptions. Whirlpool opened a lucrative brand-new market by challenging the assumption that all of its customers were women. After taking a candid look at how home appliances are used, they introduced their Gladiator line of man-targeted appliances. Gladiator includes a refrigerator designed specifically to hold beer in the garage and is expected to generate $300 million for Whirlpool by 2007. Change frames. Reconfigure the way people view the work world. quot;Convince yourself that the situation represents a new and exciting opportunity, that other team members are vital to its success, then communicate this sense of excitement and interdependence to the team.quot; Create counter-experiences. Cross Corporation found that their commitment to quality inadvertently created a quality control ethic that resulted in the rejection of nearly 30% of their finished pens because the pen's appearance wasn't perfect – under magnification. Vigorous workforce re-education measures were stymied until a number of workers were invited to view, through a one-way window, customers sorting through a batch of pens. The customers regularly praised the pens' writing abilities. Not one customer mentioned quot;flawless appearance.quot; This helped the workers change their assumptions and significantly fewer pens were subsequently rejected. The point is, people are likely to change their core beliefs only when they encounter a stronger belief and perhaps not even then. Managers who understand the relationship between beliefs and Deep Smarts are better prepared to shift the beliefs that are jamming the operation. quot;In the best of all worlds, managers create an environment where beliefs and assumptions are routinely challenged, because dissenting views are almost always useful. Deep Smarts cannot build in a culture that allows no questioning because in such an organization, only top managers are assumed to have relevant experience. Obviously, this cannot be the case. One important managerial skill is the ability to identify assumptions (including one's own) and question them.quot; Knowledge Filtering: Shaping Deep Smarts By Means Of External Social Influences Social influences contribute to Deep Smarts, for better or worse. By this, we mean that perceptions – our own or those of others, internal or imported, beneficial or pernicious – can affect how knowledge is seen and used in organizations. Although one person's truth may be another person's myth, the people and the organizations we admire heavily influence our view of reality. We develop Deep Smarts to some extent by imitating them. Under the best of circumstances, we can build supportive knowledge as a result of influences; we can also transfer Deep Smarts to others by means of social influence. quot;The more aware we are of how knowledge is screened and shaped, and the greater choice we exercise on how we ourselves are influenced, the better. . . . Without direct and extensive knowledge transfer, we rarely acquire enough of the smarts we admire to achieve the same level of success as our models.quot; 25th Anniversary Management Forum Series  Executive Forum www.executiveforum.com Members may copy for internal training use only. All other rights are withheld. Page 4
  • 5. quot;Deep Smarts; a potent form of experience-based wisdom.quot; Social influence carries with it a variety of emphases, influences and packaging. Varieties of Social Influence on Beliefs and Knowledge Increasing influence Compliance Conformity Herd Tribe Nature of Explicit: quot;Do this Explicit: quot;I know this is Largely explicit: quot;I Largely tacit: quot;This is Influence because I know more wrong, but everyone don't know what to how my tribe does than you doquot; or quot;Do else is doing it.quot; believe, but everyone things, what they this or else.quot; else seems to know believe in. So do I.quot; what to do.quot; Basis of Direct exercise of Indirect Influence: Emotional arousal Desire for belonging, Influence power: reward, whatever quot;everyonequot; caused by scarcity or emulation. punishment, is doing. Fear of greed. expertise. looking bad, odd, quot;out of it.quot; Uncertainty Level Generally low Generally low High Generally low unless About What Is conflicting views of Real or Correct other tribes are made apparent. Type of Change Shallow: behavior Shallow: behavior Moderate: behavior Deep: behavior and change. Peripheral change. Peripheral change. Peripheral central beliefs may beliefs may change; beliefs may change. and moderately change. may build receptors central beliefs may change. Direct Contact Normally, yes. Yes. Influence No. Perception of No. Person need not Necessary? Monitoring of behavior diminishes when not consensual beliefs is be a member of the enhances compliance. face-to-face. important. tribe to be influenced. Role modeling is possible with no personal contact or interaction. Countermeasures If possible, leave the Seek allies to reduce Counter with other Reframe beliefs to relationship. conformity pressures. more central beliefs. align with goals. Seek guided experience for reality check. Draw on other tribes for support. Note that social influence has light side as well as a dark side. When social influence results in increased understanding, production, profitability and worker satisfaction, we have Harley-Davidson. When social influence results in blind obedience, we have Jonestown. • Compliance – quot;just doing itquot; – rarely builds Deep Smarts because it seldom builds receptors; thus, the transfer of beliefs or knowledge is limited. • Conformity or acquiescence doesn't motivate people to understand the issues or seek further experience because the motive for learning comes from outside the individual. In other words, it doesn't require quot;commitment from the heart as well as from the brain,” and is unlikely to build Deep Smarts. • Herd influences – when we get swept up in a general belief that includes emotion as well as reason – includes the aspect of uncertainty about what is true. In this scarcity/greed approach, people may focus on what other people are doing at the expense of allowing for alternatives; decisions made quot;while galloping along with the herdquot; are based on shallow Smarts. 25th Anniversary Management Forum Series  Executive Forum www.executiveforum.com Members may copy for internal training use only. All other rights are withheld. Page 5
  • 6. quot;Deep Smarts; a potent form of experience-based wisdom.quot; Although herds by nature don't have Deep Smarts, they are an excellent place to develop them. It is much easier to develop knowledge sharing when people ascribe to the same organizational language, goals, practices and disciplines. [This] has both a good side and a bad side. The bad side . . . is when they are uncertain or confused about the right course of action, people often follow the herd, and herds don't have Deep Smarts. . . . It takes strong leadership to withstand the power of a stampede, much less to stop one.quot; • Tribes are communities of like-minded individuals. The connection is often very powerful emotionally, leading to acceptance of new behaviors and beliefs. Tribes are excellent for developing and transferring Deep Smarts. quot;[Tribe communities] help in the building and transfer of smarts in multiple ways: they help members locate relevant processes rather than reinvent them; they foster creative fusion among experts; and they socialize new members into the belief systems of the group. Perhaps most important, they serve as the focal group for tribal passions – the love of the mission that draws these people together. . . Participants in tribal communities gain more than knowledge about a given field of practice; they learn know-how. These communities of practice provide the focus necessary for providing the practical, experiential basis for Deep Smarts.quot; Note that tribes may occur as an entire organization, they may occur as a group within an organization, or they may occur outside an organization. Wherever we create reference models that we want to join, they influence us and define what is possible for us. Consider the power of alumni networks that throughout our lives may provide us with an identifying framework. And in a more monetary sense, they may also provide a rich connective network of similar-minded people through whom we can tap into career resources. quot;The people who work for us generally want to be part of a tribe. . . The social impulse is wired in.quot; To a certain extent, we can develop Deep Smarts by imitating what individuals, groups or organizations are doing. Benchmarking and best-practices are common ways to show us paths to greater success. However, imitating the practices of an established company may not work if it conflicts with local practice, or if the potential learning occurs in the absence of receptors. A downside to social influence is that people may simply go through the motions and comply with directives – particularly in the presence of an influential manager – rather than absorb or build Deep Smarts. On the other hand, quot;a manager can create a powerful motivating force in a group that is a tribe people want to join and stay with. . . . If you and your colleagues are strong leaders, people will see you as positive role models and try to imitate you. Positive models demonstrate that lofty achievements are possible and create receptors in that they embody at least one visible path to some desirable goal.quot; Knowledge Transferring: Acquiring Deep Smarts By Means Of External Coaching And Guided Experience Let us first establish that transferring Deep Smarts requires coaching techniques more than teaching techniques. Coaches have domain experience to pass along to others. This is important because there are many times when the knowledge needs to be passed on. Specifically, whenever we leave a job, we take with us an immense treasure of knowledge – Deep Smarts often sourced solely in our heads – that is critical to the success of the incoming job holder. • quot;Experts can mentor novices despite a very large gap in knowledge if the experts are willing to coach and the novices can bear having their knowledge gap exposed. • All along the ladder of expertise, people can coach those who are less experienced. They transfer what they have learned so far. • Coaching can help shorten the time to fill some parts of the knowledge gap. . . . A little knowledge is helpful . . . to frame experiences as they unfold.quot; 25th Anniversary Management Forum Series  Executive Forum www.executiveforum.com Members may copy for internal training use only. All other rights are withheld. Page 6
  • 7. quot;Deep Smarts; a potent form of experience-based wisdom.quot; Add to this an understanding that transfer of knowledge requires a skillful and willing coach, and a capable, receptive learner. quot;Neuroscientists have known for some time that experience alters the structure of the brain, encoding the new information in specific structures and thereby modifying those structures. The result? Direct experience is more effective in locking in memories that can be retrieved later, and hence is more useful than is vicarious learning.quot; Thus, the more direct the experience, the greater the Deep Smarts transfer. Deep Smarts experience gives us something in our memory to which we can link a situation. Said another way, quot;information does not become knowledge until it connects with something we already know.quot; Coaching requires a level of expertise, to be sure, but it also requires the desire and skill to connect with people who may have little knowledge. Visualize this as a ladder where every person on a rung above that of novice has knowledge valuable to anyone on a lower rung. The Ladder Of Expertise Master quot;The world is not divided between novices and experts. . . (Expert) Attaining Deep Smarts takes time as well as effort. . . All of us at some times in our lives assume the role of novice. Most of us spend our professional and personal lives Journeyman moving up the ladder of expertise.quot; (Advanced) As a rule of thumb, consider the ten-year rule: Apprentice quot;Although the sheer amount of practice and experience is (Intermediate) not a powerful predictor of expertise, the combination of an extended period of concentrated effort coupled with self-reflection has been shown to build expertise in a wide variety of domains. . . Most evidence suggests that it takes at least ten years of concentrated study and practice to become experts as opposed to being merely Novice competent.quot; (Beginner) Experts behave differently than novices. • They recognize bear traps because of their pattern-recognition. • They make decision swiftly because of their expertise. • They recognize context because of their conditionalized knowledge. • They extrapolate alternatives because of their experience. • They make fine distinctions that are indistinguishable to an untrained eye or ear. • They know what they don't know when they encounter an unusual situation. • They know when rules don't apply because no two situations are exactly the same. 25th Anniversary Management Forum Series  Executive Forum www.executiveforum.com Members may copy for internal training use only. All other rights are withheld. Page 7
  • 8. quot;Deep Smarts; a potent form of experience-based wisdom.quot; Differences Between Experts and Novices Experts Novices Limitations Speed of Decision- Make decisions swiftly, Need to review all facts, Over-confident expert may Making efficiently, without reviewing choose among alternatives. ignore relevant data. basic facts. Context Take context into account: Rely on rules of thumb that Difficult to transfer knowledge is minimize context. contextualized knowledge. quot;contextualized.quot; Tacit Knowledge Have extensive tacit Knowledge is largely explicit. Difficult to access tacit (Intuition) knowledge – drives decision knowledge so transfer is making. difficult. Pattern-recognition Have large inventory of Limited experience constrains When no patterns exist, ability patterns drawn from number of patterns. expert may be no better than experience. Unflappable. novice. Extrapolation Are able to extrapolate from Lack of receptors limits basis Mental set: Expert may base novel situation to find a for extrapolation. solution on inappropriate solution. pattern. Awareness of Know when rules don't apply. Don't know what they don't Ignorance: Expert may knowledge gaps know. assume expertise where none exists. Discrimination Are able to make fine Use of rules of thumb Expertise may not transfer if distinctions. obscures fine distinctions. novice lacks receptors. Analysis Process faster because of Analysis often based on Pattern may not apply in the pattern-recognition in head. microscopic view. case at hand. A powerful way to convince a well-intended yet over-confident protégé that he still has things to learn is to take him on a field trip. Direct observation is usually a more powerful teacher than indirect recitation. To develop receptors and increase knowledge transfer: • Create an alignment (partnership) between the coach and the protégé so that they agree on direction. • Uncover buried knowledge by using relevant, cogent stories as learning tools. • Transfer tacit knowledge by being open, observable and inclusive, and by creating experience opportunities where the knowledge can be relearned or recreated. • Develop cognitive knowledge by using the protégé's current level (pre-existing stock) of understanding as a starting point. • Take advantage of the apprentices and journeymen. Sometimes the gap on the Ladder of Expertise between expert and novice is too great to bridge. • Create incentives for the coach-to-coach and remove dis-incentives. Applications: What Does This Mean For You and Your Organization? 1. As mentioned before, Deep Smarts are an essential part of core capabilities, the engine of your organization. Since our culture encourages sink-or-swim quot;you figure it outquot; job transitions, critical (often 25th Anniversary Management Forum Series  Executive Forum www.executiveforum.com Members may copy for internal training use only. All other rights are withheld. Page 8
  • 9. quot;Deep Smarts; a potent form of experience-based wisdom.quot; tacit) knowledge now resting in the minds of soon-to-retire workers is in danger of being lost. quot;Younger workers can be trained, but experience is irreplaceable.quot; (Lt. Col. Alex Findlay) Recognize that transferring Deep Smarts is difficult: • Your organization may not see a need • It takes time and energy • It may require a new language • It may slow production-oriented activities • People may resist if they perceive that they'll have less personal value 2. Information becomes knowledge when it connects with what we know; i.e., with our experiences with events, data, objects and people. Without these receptors, information remains just information, not knowledge or smarts. As the old saying goes, quot;a lecture is where the notes of the professor go to the notes of the students without passing through the heads of either.quot; Some methods of knowledge transfer are more effective than others. In order of self-directedness, they are: Active Learning Learning by doing Guided experience - Guided practice - Guided observation - Guided experimentation - Guided problem-solving Socratic questioning (facilitating) Stories with a moral Rules of thumb Directives, presentations and lectures Passive Learning Mode Potential Application In Your Organization Directives, presentations and lectures require little of the learner except to pay attention and follow orders. Nevertheless, they can be helpful when the knowledge is known but needs practice, or when knowledge is nearly absent and there are no receptors (as a starting point.) Rules of thumb – generally reliable rules – may provide useful shortcuts to more contextualized understanding and are useful for transferring information quickly. Stories with a moral are likely to be remembered since narratives are more engaging than raw data. 25th Anniversary Management Forum Series  Executive Forum www.executiveforum.com Members may copy for internal training use only. All other rights are withheld. Page 9
  • 10. quot;Deep Smarts; a potent form of experience-based wisdom.quot; Socratic questioning requires the listener to go beyond active listening to come up with answers themselves. This facilitates clarification as well as assumption challenges. Guided observation includes learning from modeled action (watching and shadowing) and by challenging assumptions and beliefs (mind- stretching). quot;Guiding someone to observe behaviors to which they would not normally be exposed creates an opportunity for confronting assumptions and previously unquestioned beliefs.quot; Guided problem solving has a major advantage in that the coach and the protégé are working jointly on the problem. Thus, the engaged protégé learns how to approach the problem. Guided experimentation focuses on identifying potential options for action. The several modes of guided experience are particularly effective in developing and transferring Deep Smarts, especially when used in an atmosphere of deliberate practice that includes identifying the particular skills that need practice, encouraging reflection and providing positive feedback. Guided experience also coaches the novice into another area of Deep Smarts: know-who. People with Deep Smarts seldom know all the answers so they draw upon their knowledge of who has them. 3. How do you plan to develop Deep Smarts in your managers? Where do the Deep Smarts lie – and where are the knowledge gaps? Who are your experts and knowledge coaches? How can you design projects to be dual purpose: getting the project done and coaching the protégés? How will you initiate tomorrow's leaders into the business of building and transferring Deep Smarts? 25th Anniversary Management Forum Series  Executive Forum www.executiveforum.com Members may copy for internal training use only. All other rights are withheld. Page 10
  • 11. quot;Deep Smarts; a potent form of experience-based wisdom.quot; 4. How do you plan to develop Deep Smarts in your individuals and yourself? How can you purposefully build an experience repertoire? (quot;How can I build patterns of recognition?quot;) Who are your knowledge coaches? (Who are my best potential mentors?quot;) What will it take to insist on experience-based learning in addition to classroom education? (quot;How can I get experience?quot;) If your career doesn't suit you, what experiments can you plan? (quot;What am I interested in, and how can I experience it?quot;) 5. What are the threats to losing or failing to nurture Deep Smarts? 6. What beliefs and assumptions shape your Smarts? Which ones should you challenge? 7. What social influences filter your Smarts? Which ones are beneficial and which are dangerous? ____________________________ quot;The activities and decision – large and small, planned and serendipitous – of an entire life build Deep Smarts. . . Seemingly incidental or even trivial decision can aggregate to make large differences in whether and how we progress up the ladder of expertise. . . Our Deep Smarts develop continuously – at work, in leisure . . . and in morning meetings. The more consciously we design our own experience and that of those individuals we can help move up the ladder of expertise, the deeper the resulting smarts.quot; 25th Anniversary Management Forum Series  Executive Forum www.executiveforum.com Members may copy for internal training use only. All other rights are withheld. Page 11