Archive for the ‘Culture’ Category

Whether it goes well or poorly, what matters is how you respond.

When was the last time you taught someone a new method or technique? What was their reaction? How did it make you feel? Will you do it again?

When was the last time you learned something new from a colleague? What was your reaction? What did you do so it would happen again?

When was the last time you woke up early because you were excited to go to work? How did you feel about that? What can change so it happens once a week?

When was the last time you had a crazy idea and your colleagues helped you make it real? How did you feel about that? How can you do it for them? What can you do to make it happen more frequently?

When was the last time you had a crazy idea and it was squelched because it violated a successful recipe? How did you feel about that? What can you do so it happens differently next time?

When was the last time you used your good judgement without asking for permission? How did you feel about that? What can you do to give others the confidence to use their best judgement?

When was the last time someone gave you credit for doing good work? And when was the last time you did the same for someone else? What can you do so the behavior blossoms into common practice?

When was the last time you openly contradicted a majority opinion with a dissenting minority opinion? Though it was received poorly, you must do it again. The majority needs to hear your dissenting opinion so they can sharpen their thinking.

When was the last time you gave good advice to a younger colleague? How can you systematize that type of behavior?

When was the last time you did work so undeniably good that others twisted it a bit and adopted it as their own? Don’t feel badly. When doing innovative work this is what success looks like. All that really matters is your customers realize the value from the work and not who gets credit. What can you do so this type of thing happens as a matter of course?

Good things happen and bad things happen.  That’s how life goes. But the important part is you pay attention to what worked and what didn’t. And the second important part is actively making the good stuff happen more frequently and the bad stuff happen less frequently.

Image credit — jacquemart

The Trust Network II

I stand by my statement that trust is the most important element in business (see The Trust Network.)

The Trust Network are the group of people who get the work done. They don’t do the work to get promoted, they just do the work because they like doing the work. They don’t take others’ credit (they’re not striving,) they just do the work. And they help each other do the work because, well, it’s the right thing to do.

Sometimes, they use their judgement to protect the company from bad ideas. But to be clear, they don’t protect the Status Quo. They use their good judgement to decide if a new idea has merit, and if it doesn’t, they try to shape it. And if they can’t shape it, they block it.  Their judgement is good because their mutual trust allows them to talk openly and honestly and listen to each other. And through the process, they come to a decision and act on it.

But there’s another side to the Trust Network.  They also bring new ideas to the company.

Trying new things is scary, but the Trust Network makes it safe. When someone has a good idea, the Network positively reinforces the goodness of the idea and recommends a small experiment. And when one installment of positivity doesn’t carry the day, the Trust Network comes together to create the additional positivity need to grow the idea into an experiment.

To make it safe, the Trust Network knows to keep the experiment small.  If the small experiment doesn’t go as planned, they know there will be no negative consequences. And if the experiment’s results do attract attention, they dismiss the negativity of failure and talk about the positivity of learning. And if there is no money to run the experiment, they scare it up. They don’t stop until the experiment is completed.

But the real power of the Trust Network shows its hand after the successful experiment. The toughest part of innovation is the “now what” part, where successful experiments go to die. Since no one thought through what must happen to convert the successful experiment to a successful product, the follow-on actions are undefined and unbudgeted and the validated idea dies. But the Trust Network knows all this, so they help the experimenter define the “then what” activities before the experiment is run.  That way, the resources are ready and waiting when the experiment is a success.  The follow-on activities happen as planned.

The Trust Network always reminds each other that doing new things is difficult and that it’s okay that the outcome of the experiment is unknown. In fact, they go further and tell each other that the outcome of the experiment is unknowable. Regardless of the outcome of the experiment, the Trust Network is there for each other.

To start a Trust Network, find someone you trust and trust them. Support their new ideas, support their experiments and support the follow-on actions.  If they’re afraid, tell them to be afraid and run the experiment. If they don’t have the resources to run the experiment, find the resources for them. And if they’re afraid they won’t get credit for all the success, tell them to trust you.

And to grow your Trust Network, find someone else you trust and trust them. And, repeat.

Image credit — Rolf Dietrich Brecher

The Trust Network

Trust is the most important element in business. It’s not organizational authority, it’s not alignment, it’s not execution, it’s not best practices, it’s not competitive advantage and it’s not intellectual property. It’s trust.

Trust is more powerful than the organizational chart.  Don’t believe me? Draw the org chart and pretend the person at the top has a stupid idea and they try to push down into the organization. When the top person pushes, the trust network responds to protect the company.  After the unrealistic edict is given, the people on the receiving end (the trust network) get together in secret and hatch a plan to protect the organization from the ill-informed, but well-intentioned edict. Because we trust each other, we openly share our thoughts on why the idea is less than good. We are not afraid to be judged by members of trust network and, certainly, we don’t judge other members of the network. And once our truths are shared, the plan starts to take shape.

The trust network knows how things really work because we’ve worked shoulder-to-shoulder to deliver the most successful new products and technologies in company history. And through our lens of what worked, we figure out how to organize the resistance. And with the plan roughed out, we reach out to our trust network. We hold meetings with people deep in the organization who do the real work and tell them about the plan to protect the company.  You don’t know who those people are, but we do.

If you don’t know about the trust network, it’s because you’re not part of it. But, trust me, it’s real. We meet right in front of you, but you don’t see us. We coordinate in plain sight, but we’re invisible. We figure out how things are going to go, but we don’t ask you or tell you. And you don’t know about us because we don’t trust you.

When the trust network is on your side, everything runs smoothly. The right resources flow to the work, the needed support somehow finds the project and, mysteriously, things get done faster than imagined. But when the trust network does not believe in you and your initiative, the wheels fall off. Things that should go smoothly, don’t, resources don’t flow to the work and, mysteriously, no one knows why.

You can push on the trust network, but you can’t break us. You can use your control mechanisms, but we will feign alignment until your attention wanes. And once you’re distracted, we’ll silently help the company do the right thing. We’re more powerful than you because you’re striving and we’re thriving. We can wait you out because we don’t need the next job. And, when the going gets tough, we’ll stick together because we trust each other.

Trust is powerful because it must be earned. With years of consistent behavior, where words match actions year-on-year, strong bonds are created. In that way, trust can’t be faked. You’ve either earned it or you haven’t. And when you’ve earned trust, people in the network take you seriously and put their faith in you. And when you haven’t earned trust, people in the network are not swayed by your words or your trendy initiative.  We won’t tell you we don’t believe in you, but we won’t believe in you.

The trust network won’t invite you to join. The only way in is to behave in ways that make you trustworthy. When you think the company is making a mistake, say it. The trust network likes when your inner thoughts match your outer words. When someone needs help, help them. Don’t look for anything in return, just help them. When someone is about to make a mistake, step in and protect them from danger. Don’t do it for you, do it for them.  And when someone makes a mistake, take the bullets. Again, do it for them.

After five or ten years of unselfish, trustworthy behavior, you’ll find yourself in meetings where the formal agenda isn’t really the agenda. In the meeting you’ll chart the company’s path without the need to ask permission. And you’ll be listened to even when your opinion is contrary to the majority. And you’ll be surrounded by people that care about you.

Even if you don’t believe in the trust network, it’s a good idea to behave in a trustworthy way. It’s good for you and the company. And when the trust network finally accepts you, you’re be doubly happy you behaved in a trustworthy way.

Image credit — manfred majer

You’re probably not doing transformational work.

Continuous improvement is not transformation. With continuous improvement, products, processes and services are improved three percent year-on-year. With transformation, products are a mechanism to generate data, processes are eliminated altogether and services move from fixing what’s broken to proactive updates that deliver the surprising customer value.

A strategic initiative is not transformation. A strategic initiative improves a function or process that is – a move to consultative selling or a better new product development process. Transformation dismantles. The selling process is displaced by automatic with month-to-month renewals. And while product development is still a thing, it’s relegated to a process that creates the platform for the real money-maker – the novel customer value made possible by the data generated by the product.

Cultural change is not transformation. Cultural change uses the gaps in survey data to tweak a successful formula and adjust messaging.  Transformation creates new organizations that violate existing company culture.

If there the corporate structure is unchanged, there can be no transformation.

If the power brokers are unchanged, there can be no transformation.

If the company culture isn’t violated, there can be no transformation.

If it’s not digital, there can be no transformation.

In short, if the same rules apply, there can be no transformation.

Transformation doesn’t generate discomfort, it generates disarray.

Transformation doesn’t tweak the successful, it creates the unrecognizable.

Transformation doesn’t change the what, it creates a new how.

Transformation doesn’t make better caterpillars, it creates butterflies.

 

Image credit – Chris Sorge

 

 

Business is about feelings and emotions.

If you use your sane-and-rational lenses and the situation doesn’t make sense, that’s because the situation is not governed by sanity and rationality. Yet, even though there’s a mismatch between the system’s behavior and sane-and-rational, we still try to understand the system through the cloudy lenses of sanity and rationality.

Computer programs are sane and rational; Algorithms are sane and rational; Machines are sane and rational. Fixed inputs yield predicted outputs; If this, then that; Repeat the experiment and the results are repeated.  In the cold domain of machines, computer programs and algorithms you may not like the output, but you’re not surprised by it.

But businesses are not run by computer programs, algorithms and machines. Businesses are run by people. And that’s why things aren’t always sane and rational in business.

Where computer programs blindly follow logic that’s coded into them, people follow their emotions. Where algorithms don’t decide what to do based on their emotional state, people do. And where machines aren’t afraid to try something new, people are.

When something doesn’t make sense to you, it’s because your assumptions about the underlying principles are wrong. If you see things that violate logic, it’s because logic isn’t the guiding principle. And if logic isn’t the guiding principle, the only other things that could be driving the irrationality are feelings and emotions. But if you think the solution is to make the irrational system behave rationally, be prepared to be perplexed and frustrated.

The underpinnings of management and leadership are thoughts, feelings and emotions. And, thoughts are governed by feelings and emotions. In that way, the currency of management and leadership is feelings and emotions.

If your first inclination is to figure out a situation using logic, don’t.  Logic is for computers, and even that’s changing with deep learning. Business is about people. When in doubt, assess the feelings and emotions of the people involved.  And once you understand their thoughts and feelings, you’ll know what to do.

Business isn’t about algorithms. Business is about people. And people respond based on their emotional state. If you want to be a good manager, focus on people’s feelings and emotions. And if you want to be a good leader, do the same.

Image credit: Guiseppe Milo

How to Prevent Depletion

On every operating plan there are more projects than there are people to do them and at every meeting there more new deliverables than people to take them on. At every turn, our demand for increased profits pushes our people for more.  And, to me, I think this is the reason every day feel fuller than the last.

This year do you have more things to accomplish or fewer? Do you have more meetings or fewer? Do you get more emails or fewer?

We add work to people’s day as if their capacity to do work is infinite. And we add metrics to measure them to make sure they get the work done. And that’s a recipe for depletion. At some point, even the best, most productive people reach their physical and emotional limits. And at some point, as the volume of work increases, we all become depleted. It’s not that we’re moving slowly, being wasteful or giving it less than our all. When the work exceeds our capacity to do it, we run out of gas.

Here are some thoughts that may help you over the next year.

The amount of work you will get done this year is the same as you got done last year. But don’t get sidetracked here. This has nothing to do with the amount of work you were asked to do last year. Because you didn’t complete everything you were asked to do last year, the same thing will happen this year unless the amount of work on this year’s plan is equal to the amount of work you actually accomplished last year. Every year, scrub a little work off your yearly commitments until the work content finally equals your capacity to get it done.

Once the work content of your yearly plan is in line, the mantra becomes – finish one before you start one. If you had three projects last year and you finished one, you can add one project this year. If you didn’t finish any projects last year you can’t start one this year, at least until you finish one this year. It’s a simple mantra, but a powerful one. It will help you stop starting and start finishing.

There’s a variant to the finish-before-you-start approach that doesn’t have to wait for the completion of a long project. Instead of finishing a project, unimportant projects are stopped before they’re finished. This is loosely known as – stop doing before start doing.  Stopping is even more powerful than finishing because low value work is stopped and the freed-up resources are immediately applied to higher value work. This takes judgement and courage to stop a dull project, but it’s well worth the discomfort.

If you want to get ahead of the game, create a stop-doing list. For each item on the list estimate how much time you will free up and sum the freed-up time for the lot. Be ruthless. Stop all but the most important work. And when your boss says you can’t stop something because it’s too important, propose that you stop for a week and see what happens.  And when no one notices you stopped, propose to stop for a month and see what happens. Rinse and repeat.

When the amount of work you have to get done fits with your capacity to do it, your physical and mental health will improve. You’ll regain that spring in your step and you’ll be happier. And the quality of your work will improve. But more importantly, your family life and personal relationships will improve. You’ll be able to let go of work and be fully present with your friends and family.

Regardless of the company’s growth objectives, one person can only do the work of one person. And it’s better for everyone (and the company) if we respect this natural constraint.

The only thing predictable about innovation is its unpredictability.

A culture that demands predictable results cannot innovate.  No one will have the courage to do work with the requisite level of uncertainty and all the projects will build on what worked last time.  The only predictable result – the recipe will be wildly successful right up until the wheels fall off.

You can’t do work in a new area and deliver predictable results on a predictable timetable. And if your boss asks you to do so, you’re working for the wrong person.

When it comes to innovation, “ecosystem,” as a word, is unskillful. It doesn’t bound or constrain, nor does it show the way. How about a map of the system as it is? How about defined boundaries? How about the system’s history? How about the interactions among the system elements? How about a fitness landscape and the system’s disposition? How about the system’s reason for being? The next evolution of the system is unpredictable, even if you call it an ecosystem.

If you can’t tolerate unpredictability, you can’t tolerate innovation.

Innovation isn’t about reducing risk. Innovation is about maximizing learning rate.  And when all things go as predicted, the learning rate is zero. That’s right. Learning decreases when everything goes as planned. Are you sure you want predictable results?

Predictable growth in stock price can only come from smartly trying the right portfolio of unpredictable projects.  That’s a wild notion.

Innovation runs on the thoughts, feelings, emotions and judgement of people and, therefore, cannot be predictable. And if you try to make it predictable, the best people, the people that know the drill, will leave.

The real question that connects innovation and predictability: How to set the causes and conditions for people to try things because the results are unpredictable?

With innovation, if you’re asking for predictability, you’re doing it wrong.

Image credit: NASA Goddard

For innovation to flow, drive out fear.

The primary impediment to innovation is fear, and the prime directive of any innovation system should be to drive out fear.

A culture of accountability, implemented poorly, can inject fear and deter innovation.  When the team is accountable to deliver on a project but are constrained to a fixed scope, a fixed launch date and resources, they will be afraid.  Because they know that innovation requires new work and new work is inherently unpredictable, they rightly recognize the triple accountability – time, scope and resources – cannot be met.  From the very first day of the project, they know they cannot be successful and are afraid of the consequences.

A culture of accountability can be adapted to innovation to reduce fear.  Here’s one way. Keep the team small and keep them dedicated to a single innovation project. No resource sharing, no swapping and no double counting. Create tight time blocks with clear work objectives, where the team reports back on a fixed pitch (weekly, monthly). But make it clear that they can flex on scope and level of completeness.  They should try to do all the work within the time constraints but they must know that it’s expected the scope will narrow or shift and the level of completeness will be governed by the time constraint.  Tell them you believe in them and you trust them to do their best, then praise their good judgement at the review meeting at the end of the time block.

Innovation is about solving new problems, yet fear blocks teams from trying new things. Teams like to solve problems that are familiar because they have seen previous teams judged negatively for missing deadlines. Here’s the logic – we’d rather add too little novelty than be late.  The team would love to solve new problems but their afraid, based on past projects, that they’ll be chastised for missing a completion date that’s disrespectful of the work content and level of novelty.  If you want the team to solve new problems, give them the tools, time, training and a teacher so they can select different problems and solve them differently. Simply put – create the causes and conditions for fear to quietly slink away so innovation will flow.

Fear is the most powerful inhibitor. But before we can lessen the team’s fear we’ve got to recognize the causes and conditions that create it. Fear’s job is to keep us safe, to keep us away from situations that have been risky or dangerous.  To do this, our bodies create deep memories of those dangerous or scary situations and creates fear when it recognizes similarities between the current situation and past dangerous situations.  In that way, less fear is created if the current situation feels differently from situations of the past where people were judged negatively.

To understand the causes and conditions that create fear, look back at previous projects.  Make a list of the projects where project members were judged negatively for things outside their control such as: arbitrary launch dates not bound by the work content, high risk levels driven by unjustifiable specifications, insufficient resources, inadequate tools, poor training and no teacher.  And make a list of projects where team members were praised.  For the projects that praised, write down attributes of those projects (e.g., high reuse, low technical risk) and their outcomes (e.g., on time, on cost).  To reduce fear, the project team will bend new projects toward those attributes and outcomes. Do the same for projects that judged negatively for things outside the project teams’ control. To reduce fear, the future project teams will bend away from those attributes and outcomes.

Now the difficult parts.  As a leader, it’s time to look inside.  Make a list of your behaviors that set (or contributed to) causes and conditions that made it easy for the project team to be judged negatively for the wrong reasons.  And then make a list of your new behaviors that will create future causes and conditions where people aren’t afraid to solve new problems in new ways.

Image credit — andrea floris

You can’t innovate when…

Your company believes everything should always go as planned.

You still have to do your regular job.

The project’s completion date is disrespectful of the work content.

Your company doesn’t recognize the difference between complex and complicated.

The team is not given the tools, training, time and a teacher.

You’re asked to generate 500 ideas but you’re afraid no one will do anything with them.

You’re afraid to make a mistake.

You’re afraid you’ll be judged negatively.

You’re afraid to share unpleasant facts.

You’re afraid the status quo will be allowed to squash the new ideas, again.

You’re afraid the company’s proven recipe for success will stifle new thinking.

You’re afraid the project team will be staffed with a patchwork of part time resources.

You’re afraid you’ll have to compete for funding against the existing business units.

You’re afraid to build a functional prototype because the value proposition is poorly defined.

Project decisions are consensus-based.

Your company has been super profitable for a long time.

The project team does not believe in the project.

Image credit Vera & Gene-Christophe

The Four Ways to Run Projects

There are four ways to run projects.

One – 80% Right, 100% Done, 100% On Time, 100% On Budget

  • Fix time
  • Fix resources
  • Flex scope and certainty

Set a tight timeline and use the people and budget you have.  You’ll be done on time, but you must accept a reduced scope (fewer bells and whistles) and less certainty of how the product/service will perform and how well it will be received by customers. This is a good way to go when you’re starting a new adventure or investigating new space.

 

Two – 100% Right, 100% Done, 0% On Time, 0% On Budget

  • Fix resources
  • Fix scope and certainty
  • Flex time

Use the team and budget you have and tightly define the scope (features) and define the level of certainty required by your customers. Because you can’t predict when the project will be done, you’ll be late and over budget, but your offering will be right and customers will like it. Use this method when your brand is known for predictability and stability. But, be weary of business implications of being late to market.

 

Three – 100% Right, 100% Done, 100% On Time, 0% On Budget

  • Fix scope and certainty
  • Fix time
  • Flex resources

Tightly define the scope and level of certainty. Your customers will get what they expect and they’ll get it on time.  However, this method will be costly. If you hire contract resources, they will be expensive.  And if you use internal resources, you’ll have to stop one project to start this one. The benefits from the stopped project won’t be realized and will increase the effective cost to the company.  And even though time is fixed, this approach will likely be late.  It will take longer than planned to move resources from one project to another and will take longer than planned to hire contract resources and get them up and running.  Use this method if you’ve already established good working relationships with contract resources.  Avoid this method if you have difficulty stopping existing projects to start new ones.

 

Four – Not Right, Not Done, Not On Time, Not On Budget

  • Fix time
  • Fix resources
  • Fix scope and certainty

Though almost every project plan is based on this approach, it never works.  Sure, it would be great if it worked, but it doesn’t, it hasn’t and it won’t. There’s not enough time to do the right work, not enough money to get the work done on time and no one is willing to flex on scope and certainty.  Everyone knows it won’t work and we do it anyway.  The result – a stressful project that doesn’t deliver and no one feels good about.

Image credit – Cees Schipper

The people part is the hardest part.

The toughest part of all things is the people part.

Hold on to being right and all you’ll be is right.  Transcend rightness and get ready for greatness.

Embrace hubris and there’s no room for truth.  Embrace humbleness and everyone can get real.

Judge yourself and others will pile on.  Praise others and they will align with you.

Expect your ideas to carry the day and they won’t. Put your ideas out there lightly and ask for feedback and your ideas will grow legs.

Fight to be right and all you’ll get is a bent nose and bloody knuckles.  Empathize and the world is a different place.

Expect your plan to control things and the universe will have its way with you.  See your plan as a loosely coupled set of assumptions and the universe will still have its way with you.

Argue and you’ll backslide.  Appreciate and you’ll ratchet forward.

See the two bad bricks in the wall and life is hard.  See the other nine hundred and ninety-eight and everything gets lighter.

Hold onto success and all you get is rope burns.  Let go of what worked and the next big thing will find you.

Strive and get tired. Thrive and energize others.

The people part may be the toughest part, but it’s the part that really matters.

Image credit — Arian Zwegers

Mike Shipulski Mike Shipulski
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