Archive for October, 2019

Companies, Acquisitions, Startups, and Hurricanes

If you run a company, the most important thing you can control is how you allocate your resources. You can’t control how the people in your company will respond to input, but you can choose the projects they work on.  You can’t control which features and functions your customers will like, but you can choose which features and functions become part of the next product. And you can’t control if a new technology will work, but you can choose the design space to investigate.  The open question – How to choose in a way that increases your probability of success?

If you want to buy a company, the most important thing you can control is how you allocate your resources. In this case, the resources are your hard-earned money and your choice is which company to buy. The open question – How to choose in a way that increases your probability of success?

If you want to invest in a startup company, the most important thing you can control is how you allocate your resources. This case is the same as the previous one – your money is the resource and the company you choose defines how you allocate your resources. This one is a little different in that the uncertainty is greater, but so is the potential reward. Again, the same open question – How to choose in a way that increases your probability of success?

Taking a step back, the three scenarios can be generalized into a category called a “system.”  And the question becomes – how to understand the system in a way that improves resource allocation and increases your probability of success?

These people systems aren’t predictable in an if-A-then-B way. But they do have personalities or dispositions. They’ve got characteristics similar to hurricanes. A hurricane’s exact path cannot be forecasted, the meteorologist can use history and environmental conditions to broadly define regions where the probability of danger is higher.  The meteorologist continually monitors the current state of the hurricane (the system as it is) and tracks its position over time to get an idea of its trajectory (a system’s momentum). The key to understanding where the hurricane could go next: where it is right now (current state), how it got there (how it has behaved over time), and how have other hurricanes tracked under similar conditions (its disposition).  And it’s the same for systems.

To improve your understanding of how your system may respond, understand it as it is.  Define the elements and how those elements interact.  Then, work backward in time to understand previous generations of the system.  Which elements were improved? Which ones were added? Then, like the meteorologist, start at the system’s genesis and move forward to the present to understand its path.  Use the knowledge of its path and the knowledge of systems (it’s important to be the one that improves the immature elements of the system and systems follow S-curves until the S-curve flattens) to broadly define regions where the probability of success is higher.

These methods won’t guarantee success.  But, they will help you choose projects, choose acquisitions, choose technologies, and choose startups in a way that increases your probability of success.

Image credit — Alexander Gerst

When Problems Are Bigger Than They Seem

If words and actions are different, believe the actions.

If the words change over time, don’t put stock in the person delivering them.

If a good friend doesn’t trust someone, neither should you.

If the people above you don’t hold themselves accountable, yet they try to hold you accountable, shame on them.

If people are afraid to report injustices, it’s just a matter of time before the best people leave.

If actions are consistently different than the published values, it’s likely the values should be up-revved.

If you don’t trust your leader, respect your instincts.

If people are bored and their boredom is ignored, expect the company to death spiral into the ground.

If behaviors are different than the culture, the culture isn’t the culture.

If all the people in a group apply for positions outside the group, the group has a problem.

When actions seen by your eyes are different than the rhetoric force-fed into your ears, believe your eyes.

If you think your emotional wellbeing is in jeopardy, it is.

If to preserve your mental health you must hunker down with a trusted friend, find a new place to work.

If people are afraid to report injustices, company leadership has failed.

If the real problems aren’t discussed because they’re too icky, there’s a bigger problem.

If everyone in the group applies for positions outside the group and HR doesn’t intervene, the group isn’t the problem.

And to counter all this nonsense:

If someone needs help, help them.

If someone helps you, thank them.

If someone does a good job, tell them.

Rinse, and repeat.

Without trust, there is nothing.

If someone treats you badly, that’s on them. You did nothing wrong.

When you do your best and your boss tells you otherwise, your boss is unskillful.

If you make a mistake, own it. And if someone gives you crap about it, disown them.

If someone is untruthful, hold them accountable. If they’re still untruthful, double down and hold them accountable times two.

If you’re treated unfairly, it’s because someone has low self-esteem. And if you get mad at them, it’s because you have low self-esteem.

What people think about you is none of your concern, especially if they treat you badly.

If you see something, say something, especially when you see a leader treat their team badly.

A leader that treats you badly isn’t a leader.

If you don’t trust your leader, find a new leader. And if you can’t find a new leader to trust, find a new company.

If someone belittles you, that’s about them. Try to forgive them. And if you can’t, try again.

No one deserves to be treated badly, even if they treat you badly.

If you have high expectations for your leader and they fall short, that says nothing about your expectations.

If someone’s behavior makes you angry, that’s about you. And when your behavior makes someone angry, the calculus is the same.

When actions are different from the words, believe the actions.

When the words are different than the actions, there can be no trust.

The best work is built on trust. And without trust, the work will not be the best.

If you don’t feel comfortable calling people on their behavior it’s because you don’t believe they’ll respond in good faith.

If you don’t think someone is truthful, nothing good will come from working with them.

If you can’t be truthful it’s because there is insufficient trust.

Without trust there is nothing.

If there’s a mismatch between someone’s words and their actions, call them on their actions.

If you call someone on their actions and they use their words to try to justify their actions, run away.

When Best Practice Withers Into Old Practice

When best practices get old, they turn into ruts of old practice. No, it doesn’t make sense to keep doing it this way, but we’ve done it this way in the past, we’ve been successful, and we’re going to do it like we did last time. You can misuse old practices long after they’ve withered into decrepit practices, but, ultimately, your best practices will turn into old practices and run out of gas.  And then what?

It’s unskillful to wait until the wheels fall off before demonstrating a new practice – a new practice is a practice that you’ve not done before – but that’s what we mostly do. There’s immense pressure to do what we did last time because we know how it turned out last time. But when the environment around a process changes, there’s no guarantee that the output of the old process will adequately address the changing environment.  What worked last time will work next time, until it doesn’t.

But there’s another reason why we don’t try new practices. We’ve never taught people how to do it. Here are some thoughts on how to try new practices.

  • If you think the work can be done a better way, try a new practice, then decide if it was better. If the new practice was better, do it that way until you come up with an even better practice. Rinse and repeat.
  • Don’t ask, just try the new practice.
  • When you try a new practice, do it in a way that is safe to fail. (Thanks to Dave Snowden for that language.) Like before you use a new cleaning product to remove a stain on your best sweater, test the new practice in a way that won’t ruin your sweater.
  • If someone asks you to use the old practice instead of trying the new practice, ask them to do it the old way and you do it the new way.
  • If that someone is your boss, tell them you’re happy to do WHAT they want but you want to be the one that decides HOW to do it.
  • If your boss still wants you to follow the old practice, do it the old way, do it the new way, and look for a new job because your boss isn’t worth working for.

Just because best practices were best last time, doesn’t mean they’re good practice this time.

Image credit – Dustin Moore

Now that you know your product is bad for the environment, what will you do?

If your products were bad for the environment, what would you do?

If your best products were the worst for the environment, what would you do?

If you knew your products hurt the people that use them, what would you do?

If you knew  your sales would be reduced if you told your customers that your products were bad for their health, what would you do?

If you knew a competitive technology was fundamentally less harmful to the environment, what would you do?

If you knew that competitive technology did not hurt the people that use it, what would you do?

If you knew that competitive technology was taking market share from you, what would you do?

If you knew that competitive technology was improving faster than yours, what would you do?

If you knew how to redesign your product to make it better for the environment, but that redesign would reduce the product’s performance in other areas, what would you do?

If that same redesign effort generated patented technology, what would you do?

So, what will you do?

Image credit — Shane Gorski

Mike Shipulski Mike Shipulski
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