Archive for the ‘Fear’ Category

How To Know if You’re Moving in a New Direction

If you want to move in a new direction, you can call it disruption, innovation, or transformation. Or, if you need to rally around an initiative, call it Industrial Internet of Things or Digital Strategy. The naming can help the company rally around a new common goal, so take some time to argue about and get it right.  But, settle on a name as quickly as you can so you can get down to business. Because the name isn’t the important part.  What’s most important is that you have an objective measure that can help you see that you’ve stopped talking about changing course and started changing it.

When it’s time to change course, I have found that companies error on the side of arguing what to call it and how to go about it.  Sure, this comes at the expense of doing it, but that’s the point.  At the surface, it seems like there’s a need for the focus groups and investigatory dialog because no one knows what to do.  But it’s not that the company doesn’t know what it must do. It’s that no one is willing to make the difficult decision and own the consequences of making it.

Once the decision is made to change course and the new direction is properly named, the talk may have stopped but the new work hasn’t started. And this is when it’s time to create an objective measure to help the company discern between talking about the course change and actively changing the course.

Here it is in a nutshell. There can be no course change unless the projects change.

Here’s the failure mode to guard against. When the naming conventions in the operating plans reflect the new course heading but sitting under the flashy new moniker is the same set of tired, old projects.  The job of the objective measure is to discern between the same old projects and new projects that are truly aligned with the new direction.

And here’s the other half of the nutshell. There can be no course change unless the projects solve different problems.

To discern if the company is working in a new direction, the objective measure is a one-page description of the new customer problem each project will solve.  The one-page limit helps the team distill their work into a singular customer problem and brings clarity to all. And framing the problem in the customer’s context helps the team know the project will bring new value to the customer. Once the problem is distilled, everyone will know if the project will solve the same old problem or a new one that’s aligned with the company’s new course heading.  This is especially helpful the company leaders who are on the hook to move the company in the new direction.  And ask the team to name the customer.  That way everyone will know if you are targeting the same old customer or new ones.

When you have a one-page description of the problem to be solved for each project in your portfolio, it will be clear if your company is working in a new direction. There’s simply no escape from this objective measure.

Of course, the next problem is to discern if the resources have actually moved off the old projects and are actively working on the new projects. Because if the resources don’t move to the new projects, you’re not solving new problems and you’re not moving in the new direction.

Image credit – Walt Stoneburner

Dare To Feel Stuck

When you’re stuck, it’s not because you don’t have good ideas. And it’s not because you’re not smart. You’re stuck because you’re trying to do something difficult. You’re stuck because you’re trying to triangulate on something that’s not quite fully formed. Simply put, you’re stuck because it’s not yet time to be unstuck.

Anyone can avoid being stuck by doing what was done last time. But that’s not unsticking yourself, that’s copping out. That’s giving in to something lesser. That’s dumbing yourself down. That’s letting yourself off the hook. That’s not believing in yourself. That’s not doing what you were born to do. That’s not unsticking, that’s avoiding the discomfort of being stuck.

Being stuck – not knowing what to do or what to write – is not a bad thing. Sure, it feels bad, but it’s a sign you’re trekking in uncharted territory. It may be a new design space or it may be new behavioral space, but make no mistake – you’re swimming in a new soup. If you’ve already mastered tomato soup, you won’t feel stuck until you jump into a pool filled with chicken noodle. And when you do, don’t beat yourself up because your lungs are half-filled with noodles. Instead, simply recognize that chicken soup is different than tomato. Pat yourself on the back for jumping in without a life preserver. And even as you tread water, congratulate yourself for not drowning.

Unsticking takes time and you can’t rush it. But that’s where most fail – they climb out of the soup too soon. The soup doesn’t feel good because it’s too hot, too salty, or too noodly, so they get out. They can’t stand the discomfort so they get out before the bodies can acclimate and figure out how to swim in a new way. The best way to avoid getting stuck is to stay out of the soup and the next best way is to get out too early. But it’s not best to avoid being stuck.

Life’s too short to avoid being stuck. Sure, you may prevent some discomfort, but you also prevent growth and learning. Do you want to get to your deathbed and realize you limited your personal growth because you were afraid to feel the discomfort of being stuck? Imagine getting to the end of your life and all you can think of is the see of things you didn’t experience because you were unwilling to feel stuck.

Stuck is not bad, it just feels bad. Instead of seeing the discomfort as discomfort, can you learn to see it as the precursor to growth? Can you learn to see the discomfort as an indicator of immanent learning? Can you learn to see it as the tell-tale sign of your quest for knowledge and understanding?

If you’re not yet ready to feel stuck, I get that. But to get yourself ready, keep your eye out for people around you who have dared to get stuck. Learn to recognize what it looks like. And when you do find someone who is stuck, tell them they are doing a brave thing. Tell them that it’s supposed to feel uncomfortable. Tell them that no one has ever died from the discomfort of being stuck. And tell them that staying with the discomfort is the best way to get unstuck. And thank them for demonstrating the right behavior.

Image credit — NeilsPhotography

Disruption – the work that makes the best things obsolete.

I think the word “disruption” doesn’t help us do the right work. Instead, I use “innovation.” But that word has also lost much of its usefulness. There are different flavors of innovation and the flavor that maps to disruption is the flavor that makes things obsolete. This flavor of new work doesn’t improve things, it displaces them. So, when you see “innovation” in my posts, think “work that makes the best things obsolete.”

Doing work that makes the best things obsolete requires new behavior. Here’s a post that gives some tips to help make it easy for new behaviors to come to be. Within the blog post, there is a link to a short podcast that’s worth a listen. One Good Way to Change Behavior

And here’s a follow-on post about what gets in the way of new behavior.  What’s in the way?

It’s difficult to define “disruption.” Instead of explaining what disruption is or isn’t, I like to use “no-to-yes.” Don’t improve the system by 3%, instead use no-to-yes to make the improved system do something the existing system cannot. Battle Success With No-to-Yes

Instead of “disruption” I like “compete with no one.” To compete with no one, you’ve got to make your services so fundamentally good that your competition doesn’t stand a chance.  Compete With No One

Disruption, as a word, is not actionable. But here’s what is actionable: Choose to solve new problems. Choose to solve problems that will make today’s processes and outcomes worthless. Before you solve a problem ask yourself “Will the solution displace what we have today?” Innovation In Three Words

Here’s a nice operational definition of how to do disruption – Obsolete your best work.

And if you’re not yet out of gas, here are some posts that describe what gets in the way of new behavior and how to create the right causes and conditions for new behaviors to emerge.

Make it Easy

The Most Powerful Question

Creating the Causes and Conditions for New Behavior to Grow

Seeing What Isn’t There

The only thing predictable about innovation is its unpredictability.

For innovation to flow, drive out fear.

Image credit — Thomas Wensing

If you’re not sure…

If you’re not sure, it likely hasn’t been done before.
If you’re sure it’s been done before, teach someone how to do it.
If you’re not sure, you may not know how people will respond.
If you’re sure how they’ll respond, why bother?
If you’re not sure, you may be onto something.
If you’re sure, it’s re-hash.
If you’re not sure, it deserves your time.
If you’re sure, it deserves to be done poorly.
If you’re not sure, the uncertainty may be a sign of importance.
If you’re sure, it’s important someone else does it.
If you’re not sure, it may be a big learning opportunity.
If you’re sure, take the opportunity to learn something else.
If you’re not sure, your idea may threaten the status quo.
If you’re sure the status quo will like it, commit to something else to threaten the timeline.
If you’re not sure, it will be exciting.
If you’re sure, it will be exciting to grow someone worthy.
If you’re not sure, invest the time to figure out the fundamentals.
If you’re sure, invest in a future leader and teach them the fundamentals.
If you’re not sure, do it anyway.
If you’re sure, do something else.

Image credit – Nik Wallenda

What Good Ideas Feel Like

If you have a reasonably good idea, someone will steal it, make it their own and take credit. No worries, this is what happens with reasonably good ideas.

If you have a really good idea, you’ll have to explain it several times before anyone understands it. Then, once they understand, you’ll have to help them figure out how to realize value from the idea. And after several failed attempts at implementation, you’ll have to help them adjust their approach so they can implement successfully. Then, after the success, someone will make it their own and take credit. No worries, this is what happens with really good ideas.

When you have an idea so good that it threatens the Status Quo, you’ll get ridiculed. You’ll have to present the idea once every three months for two years. The negativity will decrease slowly, and at the end of two years the threatening idea will get downgraded to a really good idea. Then it will follow the wandering path to success described above. Don’t feel special. This is how it goes with ideas good enough to threaten.

And then there’s the rarified category that few know about. This is the idea that’s so orthogonal it scares even you. This idea takes a year or two of festering before you can scratch the outer shell of it. Then it takes another year before you can describe it to yourself. And then it takes another year before you can bring yourself to speak of it. And then it takes another six months before you share it outside your trust network.  And where the very best ideas get ridiculed, with this type of idea people don’t talk about the idea at all, they just think you’ve gone off the deep end and become unhinged. This class of idea is so heretical it makes people uncomfortable just to be near you. Needless to say, this class of idea makes for a wild ride.

Good ideas make people uncomfortable. That’s just the way it is.  But don’t let this get in the way.  More than that, I urge you to see the push-back and discomfort as measures of the idea’s goodness.

If there’s no discomfort, ridicule or fear, the idea simply isn’t good enough.

Image credit – Mindaugas Danys

The Difficulty of Commercializing New Concepts

If you have the data that says the market for the new concept is big enough, you waited too long.

If you require the data that verifies the market is big enough before pursuing new concepts, you’ll never pursue them.

If you’re afraid to trust the judgement of your best technologists, you’ll never build the traction needed to launch new concepts.

If you will sell the new concept to the same old customers, don’t bother. You already sold them all the important new concepts. The returns have already diminished.

If you must sell the new concept to new customers, it could create a whole new business for you.

If you ask your successful business units to create and commercialize new concepts, they’ll launch what they did last time and declare it a new concept.

If you leave it to your successful business units to decide if it’s right to commercialize a new concept created by someone else, they won’t.

If a new concept is so significant that it will dwarf the most successful business unit, the most successful business unit will scuttle it.

If the new concept is so significant it warrants a whole new business unit, you won’t make the investment because the sales of the yet-to-be-launched concept are yet to be realized.

If you can’t justify the investment to commercialize a new concept because there are no sales of the yet-to-be-launched concept, you don’t understand that sales come only after you launch. But, you’re not alone.

If a new concept makes perfect sense, you would have commercialized it years ago.

If the new concept isn’t ridiculed by the Status Quo, do something else.

If the new concept hasn’t failed three times, it’s not a worthwhile concept.

If you think the new concept will be used as you intend, think again.

If you’re sure a new concept will be a flop, you shouldn’t be. Same goes for the ones you’re sure will be successful.

If you’re afraid to trust your judgement, you aren’t the right person to commercialize new concepts.

And if you’re not willing to put your reputation on the line, let someone else commercialize the new concept.

Image credit – Melissa O’Donohue

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

What’s in the way?

If you want things to change, you have two options. You can incentivize change or you can move things out of the way that block change. The first way doesn’t work and the second one does.  For more details, click this link at it will take you to a post that describes Danny Kahneman’s thoughts on the subject.

And, also from Kahneman, to move things out of the way and unblock change, change the environment.

Change-blocker 1. Metrics. When you measure someone on efficiency, you get efficiency. And if people think a potential change could reduce efficiency, that change is blocked.  And the same goes for all metrics associated with cost, quality and speed. When a change threatens the metric, the change will be blocked. To change the environment to eliminate the blocking, help people understand who the change will actually IMPROVE the metric. Do the analysis and educate those who would be negatively impacted if the change reduced the metric. Change their environment to one that believes the change will improve the metric.

Change-blocker 2. Incentives. When someone’s bonus could be negatively impacted by a potential change, that change will be blocked. Figure out whose incentive compensation are jeopardized by the potential change and help them understand how the potential change will actually increase their incentives.  You may have to explain that their incentives will increase in the long term, but that’s an argument that holds water. Until they believe their incentives will not suffer, they’ll block the change.

Change-blocker 3. Fear. This is the big one – fear of negative consequences. Here’s a short list: fear of being judged, fear of being blamed, fear of losing status, fear of losing control, fear of losing a job, fear of losing a promotion, fear of looking stupid and fear of failing. One of the best ways to help people get over their fear is to run a small experiment that demonstrates that they have nothing to fear. Show them that the change will actually work. Show them how they’ll benefit.

Eliminating the things that block change is fundamentally different than pushing people in the direction of change. It’s different in effectiveness and approach. Start with the questions: “What’s in the way of change?” or “Who is in the way of change?” and then “Why are they in the way of change?” From there, you’ll have an idea what must be moved out of the way. And then ask: “How can their environment be changed so the change-blocker can be moved out of the way?”

What’s in the way of giving it a try?

Image credit B4bees

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

Defy success and choose innovation.

Innovation is difficult because it requires novelty. And novelty is difficult because it’s different than last time. And different than last time is difficult because you’ve got to put yourself out there.  And putting yourself out there is difficult because no one wants to be judged negatively.

Success, no matter how small, reinforces what was done last time. There’s safety in doing it again. The return may be small, but the wheels won’t fall off.  You may run yourself into the ground over time, but you won’t fail catastrophically. You may not reach your growth targets, but you won’t get fired for slowly destroying the brand. In short, you won’t fail this year, but you will create the causes and conditions for a race to the bottom.

Diminishing returns are real. As a system improves it becomes more difficult to improve.  A ten percent improvement is more difficult every year and at some point, improvement becomes impossible.  In that way, success doesn’t breed success, it breeds more effort for less return. And as that improvement per unit effort decreases, it becomes ever more important (and ever more difficult) to do something different (to innovate).

Paradoxically, success makes it more difficult to innovate.

Success brings profits that could fund innovation. But, instead, success brings the expectation of predictable growth.  Last year we were successful and grew 10%. We know the recipe, so this year let’s grow 12%. We can do what we did last year, but do it more efficiently.  A sound bit of logic, except it assumes the rules haven’t changed and that competitors haven’t improved. But rules and competitors always change, and, at some point the the same old recipe for success runs out of gas.

It’s time to do something new (to innovate) when the same old effort brings reduced results. That change in output per unit effort means the recipe is tiring and it’s time for a new one. But with a new approach comes unpredictability, and for those who demand predictability, a new approach is scary. Sure, the yearly trend of reduced return on investment should scare them more, but it doesn’t.  The devil you know is less scary than the one you don’t.  But, it shouldn’t be.

Calculate your revenue dollars per sales associate and plot it over time.  If the metric is flat over the last three years, it was time to innovate three years ago.  If it’s decreasing over the last three years, it was time to innovate six years ago.

If you wait to innovate until revenue per sales person is flat, you waited too long.

No one likes to be judged negatively, more than that, no one likes their company to collapse and lose their job. So, choose to do something new (to innovate) and choose the possibility of being judged. That’s much better than choosing to go out of business.

Image credit – Michel Rathwell

Mike Shipulski Mike Shipulski
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