Archive for the ‘Clarity’ Category

Resource Allocation IS Strategy

In business, we have vision statements, mission statements, strategic plans, strategic initiatives, and operating plans. And every day there are there are countless decisions to make. But, in the end, it all comes down to one thing – how we allocate our resources.  Whether it’s hiring people, training them, buying capital, or funding projects, all strategic decisions come back to resource allocation.  Said more strongly, resource allocation is strategy.

Take a look back at last year.  Where did you allocate your capital dollars?  Which teams got it and which did not?  Your capital allocation defined your priorities.  The most important businesses got more capital.  More to the point – the allocated capital defined their importance. Which projects were fully staffed and fully budgeted? Those that were resourced more heavily were more important to your strategy, which is why they were resourced that way. Which businesses hired people and which did not?  The hiring occurred where it fulfilled the strategy. Which teams received most of the training budget?  Those teams were strategically important.  Prioritization in the form of resource allocation.

Repeat the process for this year’s operating plan.  Where is the capital allocated?  Where is the hiring allocated?  Where are the projects fully staffed and budgeted?  Regardless of the mission statements, this year’s strategy is defined by where the resources are allocated.  Full stop.

Repeat the process for your forward-looking strategic plans.  Where are the resources allocated?  Which teams get more?  Which get fewer?  Answer these questions and you’ll have an operational definition of your company’s forward-looking strategy.

To know if the new strategy is different from the old one, look at the budgets.  Do they show a change in resource allocation?  Will old projects stop so new ones can start? Do the new projects serve new customers and new value propositions?  Same old projects, same old customers, same old value propositions, same old strategy.

To determine if there’s a new strategy, look for changes in capital allocation.  If the same teams are allocated more of the same capital, it’s likely the strategy is also the same. Will one team get more capital while the others get less?  Well, it’s likely a new strategy is starting to take shape.

Look for a change in hiring.  Fewer hires like last year and more of a new flavor probably indicate a change in strategy.  And if people flow from one team to another, that’s the same as one team getting new hires and the other team losing them.  That type of change in resource allocation is an indicator of a strategic change.

If the resource allocation differs from the strategic plan, believe the resource allocation. And if the resource allocation is the same as last year, so is the strategy.  And if there is talk of changing resource allocation but no actual change, then there is no change in strategy.

Image credit – Scouse Smurf

Some Ifs and Thens To Get You Through Your Day

If you didn’t get what you wanted, why not try wanting what you got?

If the timing isn’t right, what can you change so it is right?

If it could get you in trouble, might you be on to something?

If it’s impossible, don’t bother.

If it’s easy, let someone else do it.

If there’s no possibility of bad things, there’s no possibility of magic.

If you need trust but have not yet secured it, declare failure and do something else.

If there is no progress, don’t push.  Move the blocking agent out of the way.

If you don’t know where the cost is, you can’t design it out.

If the timing isn’t right, why didn’t you do it sooner?

If the project went flawlessly, you didn’t try to do anything meaningful.

If you know some people won’t like it, isn’t that reason enough to do it?

If it’s almost impossible, give it a go.

If it’s easy, teach someone else to do it.

If you don’t know where the waste is, you can’t get rid of it.

If you don’t need trust, it’s the perfect time to build it.

If you try the hardest thing first and it doesn’t work, at least you avoid wasting time on the easy stuff.

If you don’t know the number of parts in your product, you have too many.

If the product came out perfectly, you took too long.

If you don’t give it a go, how can you know it’s impossible?

If trust is in short supply, supply it.

If it’s easy, do something else.

If forgiveness is so much better than permission, why do we like to do things under the radar?

If bad things didn’t happen, try harder next time.

Image credit — Gabriel Caparó

Two Sides of the Same Coin

Praise is powerful, but not when you don’t give it.

People learn from mistakes, but not when they don’t make them.

Wonderful solutions are wonderful, but not if there are no problems.

Novelty is good, but not if you do what you did last time.

Disagreement creates deeper understanding, but not if there’s 100% agreement.

Consensus is safe, but not when it’s time for original thought.

Progress is made through decisions, but not if you don’t make them.

It’s skillful to constrain the design space, but not if it doesn’t contain the solution.

Trust is powerful, but not before you build it.

 

A mantra: Praise people in public.

If you want people to learn, let them make mistakes.

Wonderful problems breed wonderful solutions.

If you want novelty, do new things.

There can be too little disagreement.

Consensus can be dangerous.

When it’s decision time, make one.

Make the design space as small as it can be, but no smaller.

Build trust before you need it.

Image credit – Ralf St.

Time is not coming back.

How do you spend your time?

How much time do you spend on things you want to do?

How much time do you spend on things you don’t want to do?

How much time do you have left to change that?

If you’re spending time on things you don’t like, maybe it’s because you don’t have any better options.  Sometimes life is like that.

But maybe there’s another reason you’re spending time on things you don’t like.

If you’re afraid to work on things you like, create the smallest possible project and try it in private.

If that doesn’t work, try a smaller project.

If you don’t know the ins and outs of the thing you like, give it a try on a small scale.  Learn through trying.

If you don’t have a lot of money to do the thing you like, define the narrowest slice and give it a go.

If you could stop on one thing so you could start another, what are those two things?  Write them down.

And start small. And start now.

Image credit — Pablo Monteagudo

What’s in the way of the newly possible?

When “it’s impossible” it means it “cannot be done.”  But maybe “impossible” means “We don’t yet know how to do it.” Or “We don’t yet know if others have done it before.”

What does it take to transition from impossible to newly possible? What must change to move from the impossible to the newly possible?

Context-Specific Impossibility. When something works in one industry or application but doesn’t work in another, it’s impossible in that new context.  But usually, almost all the elements of the system are possible and there are one or two elements that don’t work due to the new context.  There’s an entire system that’s blocked from possibility due to the interaction between one or two system elements and an environmental element of the new context.  The path to the newly possible is found in those tightly-defined interactions.   Ask yourself these questions: Which system elements don’t work and what about the environment is preventing the migration to the newly possible?  And let the intersection focus your work.

History-Specific Impossibility.  When something didn’t work when you tried it a decade ago, it was impossible back then based on the constraints of the day.  And until those old constraints are revisited, it is still considered impossible today.  Even though there has been a lot of progress over the last decades, if we don’t revisit those constraints we hold onto that old declaration of impossibility.  The newly possible can be realized if we search for new developments that break the old constraints. Ask yourself: Why didn’t it work a decade ago? What are the new developments that could overcome those problems?  Focus your work on that overlap between the old problems and the new developments.

Emotionally-Specific Impossibility. When you believe something is impossible, it’s impossible.  When you believe it’s impossible, you don’t look for solutions that might birth the newly possible.  Here’s a rule: If you don’t look for solutions, you won’t find them. Ask yourself: What are the emotions that block me from believing it could be newly possible? What would I have to believe to pursue the newly possible?  I think the answer is fear, but not the fear of failure.  I think the fear of success is a far likelier suspect. Feel and acknowledge the emotions that block the right work and do the right work.  Feel the fear and do the work.

The newly possible is closer than you think. The constraints that block the newly possible are highly localized and highly context-specific. The history that blocks the newly possible is no longer applicable, and it’s time to unlearn it.  Discover the recent developments that will break the old constraints.  And the emotions that block the newly possible are just that – emotions.  Yes, it feels like the fear will kill you, but it only feels like that.  Bring your emotions with you as you do the right work and generate the newly possible.

image credit – gfpeck

The People Part of the Business

Whatever business you’re in, you’re in the people business.

Scan your organization for single-point failure modes, where if one person leaves the wheels would fall off.  For the single-point failure mode, move a new person into the role and have the replaced person teach their replacement how to do the job.  Transfer the knowledge before the knowledge walks out the door.

Scan your organization for people who you think can grow into a role at least two levels above their existing level.  Move them up one level now, sooner than they and the organization think they’re ready.  And support them with a trio of senior leaders.  Error on the side of moving up too few people and providing too many supporting resources.

Scan your organization for people who exert tight control on their team and horde all the sizzle for themselves.  Help these people work for a different company. Don’t wait. Do it now or your best young talent will suffocate and leave the company.

Scan your organization for people who are in positions that don’t fit them and move them to a position that does.  They will blossom and others will see it, which will make it safer and easier for others to move to positions that fit them.  Soon enough, almost everyone will have something that fits them.  And remember, sometimes the position that fits them is with another company.

Scan your organization for the people who work in the background to make things happen. You know who I’m talking about.  They’re the people who create the conditions for the right decisions to emerge, who find the young talent and develop them through the normal course of work, who know how to move the right resources to the important projects without the formal authority to do so, who bring the bad news to the powerful so the worthy but struggling projects get additional attention and the unworthy projects get stopped in their tracks, who bring new practices to new situations but do it through others, who provide air cover so the most talented people can do the work everyone else is afraid to try, who overtly use their judgment so others can learn how to use theirs, and who do the right work the right way even when it comes at their own expense.  Leave these people alone.

When you take care of the people part of the business, all the other parts will take care of themselves.

Image credit – are you my rik?

Do you create the conditions for decisions to be made without you?

What does your team do when you’re not there?  Do they make decisions or wait for you to come back so you can make them?

If your team makes an important decision while you’re out of the office, do you support or criticize them? Which response helps them stand taller? Which is most beneficial to the longevity of the company?

If other teams see your team make decisions while you are on vacation, doesn’t that make it easier for those other teams to use their good judgment when their leader is on vacation?

If a team waits for their leader to return before making a decision, doesn’t that slow progress?  Isn’t progress what companies are all about?

When you’re not in the office, does the organization reach out directly to your team directly? Or do they wait until they can ask your permission?  If they don’t reach out directly, isn’t that a reflection on you as the leader? Is your leadership helping or hindering progress?  How about the professional growth of your team members?

Does your team know you want them to make decisions and use their best judgment? If not, tell them.  Does the company know you want them to reach out directly to the subject matter experts on your team? If not, tell them.

If you want your company to make progress, create the causes and conditions for good decisions to be made without you.

Image credit – Conall

When you say yes to one thing, you say no to another.

Life can get busy and complicated, with too many demands on our time and too little time to get everything done.  But why do we accept all the “demands” and why do we think we have to get everything done? If it’s not the most important thing, isn’t a “demand for our time” something less than a demand? And if some things are not all that important, doesn’t it say we don’t have to do everything?

When life gets busy, it’s difficult to remember it’s our right to choose which things are important enough to take on and which are not.  Yes, there are negative consequences of saying no to things, but there are also negative consequences of saying yes.  How might we remember the negative consequences of yes?

When you say to yes to one thing, you say no to the opportunity to do something else.  Though real, this opportunity cost is mostly invisible.  And that’s the problem.  If your day is 100% full of meetings, there is no opportunity for you to do something that’s not on your calendar.  And in that moment, it’s easy to see the opportunity cost of your previous decisions, but that doesn’t do you any good because the time to see the opportunity cost was when you had the choice between yes and no.

If you say yes because you are worried about what people will think if you say no, doesn’t that say what people think about you is important to you? If you say yes because your physical health will improve (exercise), doesn’t that say your health is important to you? If you say yes to doing the work of two people, doesn’t it say spending time with your family is less important?

Here’s a proposed system to help you.  Open your work calendar and move one month into the future.  Create a one-hour recurring meeting with yourself.  You just created a timeslot where you said no in the future to unimportant things and said yes in the future to important things.  Now, make a list of three important things you want to do during those times.  And after one month of this, create a second one-hour recurring meeting with yourself.  Now you have two hours per week where you can prioritize things that are important to you.  Repeat this process until you have allocated four hours per week to do the most important things.  You and stop at four hours or keep going.  You’ll know when you get the balance right.

And for Saturday and Sunday, book a meeting with yourself where you will do something enjoyable.  You can certainly invite family and/or friends, but it the activity must be for pure enjoyment.  You can start small with a one-hour event on Saturday and another on Sunday.  And, over the weeks, you can increase the number and duration of the meetings.

Saying yes in the future to something important is a skillful way to say no in the future to something less important.  And as you use the system, you will become more aware of the opportunity cost that comes from saying yes.

Image credit – Gilles Gonthier

Some Questions to Ask Yourself

If you can’t imagine it, it’s impossible.

But if you can imagine it, at worst it can only be almost impossible.

Who controls your imagination?

What you think about something affects you like it’s true, even when it isn’t.

And what you think is true often isn’t.

Are you responsible for what you think?

If you have two things to do, that’s doable.  So, do them.

And if you have twenty things to do, chose two and do them.

What if getting ten things done in a week is enough?

If the work is good, it’s likely you’re doing it with people you enjoy.

And if you work with people you enjoy, the work gets better.

Which comes first, the good work or the people you enjoy?

If you tell someone what to do and how to do it, they can do it.

But if you’re not there to tell them, they cannot.

Will you always be there?

If you show you care, people know you care.

And if you tell people you care, they’re not sure.

Why not show them so they can be sure?

If you tell the truth, people can work with you even if they don’t share your truth.

But if you sometimes tell the truth, it means sometimes you don’t.

And how does that work?

 

image credit — Miranda Granche

The Mighty Capacity Model

There are natural limits to the amount of work that any one person or group can do.  And once that limit is reached, saying yes to more work does not increase the amount of work that gets done.  Sure, you kick the can down the road when you say yes to work that you know you can’t get done, but that’s not helpful.  Expectations are set inappropriately which secures future disappointment and more importantly binds or blocks other resources. When preparatory work is done for something that was never going to happen, that prep work is pure waste.  And when resources are allocated to a future project that was never going to happen, the results are misalignment, mistiming, and replanning, and opportunity cost carries the day.

But how to know if you the team has what it takes to get the work done?  The answer is a capacity model.  There are many types of capacity models, but they all require a list of the available resources (people, tools, machines), the list of work to be done (projects), and the amount of time (in hours, weeks, months) each project requires for each resource.  The best place to start is to create a simple spreadsheet where the leftmost column lists the names of the people and the resources (e.g., labs, machines, computers, tools).  Across the top row of the spreadsheet enter the names of the projects.  For the first project, go down the list of people and resources,  and for each person/resource required for the project, type an X in the column.  Repeat the process for the remainder of the projects.

While this spreadsheet is not a formal capacity model, as it does not capture the number of hours each project requires from the resources, it’s plenty good enough to help you understand if you have a problem.  If a person has only one X in their row, only one project requires their time and they can work full-time on that project for the whole year.  If another person has sixteen Xs in their row, that’s a big problem. If a machine has no Xs in its row, no projects require that machine, and its capacity can be allocated to other projects across the company. And if a machine has twenty Xs in its row, that’s a big problem.

This simple spreadsheet gives a one-page, visual description of the team’s capacity.  Held at arm’s length, the patterns made by the Xs tell the whole story.

To take this spreadsheet to the next level, the Xs can be replaced with numbers that represent the number of weeks each project requires from the people and resources.  Sit down with each person and for each X in their row, ask them how many weeks each project will consume.  For example, if they are supposed to support three projects, X1 is replaced with 15 (weeks), X2 is replaced with 5, and X3 is replaced with 5 for a total of 25 weeks (15 + 5 + 5).  This means the person’s capacity is about 50% consumed (25 weeks / 50 weeks per year) by the three projects.  For each resource, ask the resource owner how much time each project requires from the resource.  For a machine that is needed for ten projects where each project requires twenty weeks, the machine does not have enough capacity to support the projects.  The calculation says the project load requires 200 machine-weeks (10*20 = 200 weeks) and four machines (200 machine-weeks / 50 weeks per year = 4 machines) are required.

Creating a spreadsheet that lists all the projects is helpful in its own right.  And you’ll probably learn that there are far more projects than anyone realizes.  (Helpful hint: make sure you ask three times if all the projects are listed on the spreadsheet.)  And asking people how much time is required for each project is respectful of their knowledge and skillful because they know best how long the work will take. They’ll feel good about all that.  And quantifying the number of weeks (or hours) each project requires elevates the discussion from argument to analysis.

With this simple capacity model, the team can communicate clearly which projects can be supported and which cannot.  And, where there’s a shortfall, the team can make a list of the additional resources that would be needed to support the full project load.

Fight the natural urge to overcomplicate the first version of the capacity model.  Start with a simple project-people/resource spreadsheet and use the Xs.  And use the conversations to figure out how to improve it for next time.

Problems, Learning, Business Models, and People

If you know the right answer, you’re working on an old problem or you’re misapplying your experience.

If you are 100% sure how things will turn out, let someone else do it.

If there’s no uncertainty, there can be no learning.

If there’s no learning, your upstart competitors are gaining on you.

If you don’t know what to do, you’ve started the learning cycle.

If you add energy to your business model and it delivers less output, it’s time for a new business model.

If you wait until you’re sure you need a new business model, you waited too long.

Successful business models outlast their usefulness because they’ve been so profitable.

When there’s a project with a 95% chance to increase sales by 3%, there’s no place for a project with a 50% chance to increase sales by 100%.

When progress has slowed, maybe the informal networks have decided slower is faster.

If there’s something in the way, but you cannot figure out what it is, it might be you.

 

A bouquet of wilting adapters” by rexhammock is licensed under CC BY-SA 2.0.

Mike Shipulski Mike Shipulski
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