Archive for the ‘Intellectual Intertia’ Category

What You Don’t Have

If you have more features, I will beat you with fewer.

If you have a broad product line, I will beat you with my singular product.

If your solution is big, mine will beat you with small.

If you sell across the globe, I will sell only in the most important market and beat you.

If you sell to many customers, I will provide a better service to your best customer and beat you.

If your new projects must generate $10 million per year, I will beat you with $1 million projects.

If you are slow, I will beat you with fast.

If you use short term thinking, I will beat you with long term thinking.

If you think in the long term, I will think in the short term and beat you.

If you sell a standardized product, I will beat you with customization.

If you are successful, I will beat you with my hunger.

If you try to do less, I will beat you with far less.

If you do what you did last time, I will beat you with novelty.

If you want to be big, I will be a small company and beat you.

I will beat you with what you don’t have.

Then, I will obsolete my best work with what I don’t have.

Your success creates inertia. Your competitors know what you’re good at and know you’ll do everything you can to maintain your trajectory.  No changes, just more of what worked.  And they will use your inertia. They will start small and sell to the lowest end of the market. Then they’ll grow that segment and go up-scale. You will think they are silly and dismiss them. And then they will take your best customers and beat you.

If you want to know how your competitors will beat you, think of your strength as a weakness.  Here’s a thought experiment to explain.  If your success is based on fast, turn speed into weakness and constrain out the speed. Declare that your new product must be slow. Then, create a growth plan based on slow.  That growth plan is how your competitors will beat you.

Your growth won’t come from what you have, it will come from what you don’t have.

It’s time to create your anti-product.

Are you doing what you did last time?

If there’s no discomfort, there’s no novelty.

When there’s no novelty, it means you did what you did last time.

When you do what you did last time, you don’t grow.

When you do what you did last time, there’s no learning.

When you do what you did last time, opportunity cost eats you.

If there’s no discomfort, you’re not trying hard enough.

 

If there’s no disagreement, critical thought is in short supply.

When critical thought is in short supply, new ideas never see the light of day.

When new ideas never see the light of day, you end up doing what you did last time.

When you do what you did last time, your best people leave.

When you do what you did last time, your commute into work feels longer than it is.

When you do what you did last time, you’re in a race to the bottom.

If there’s no disagreement, you’re playing a dangerous game.

 

If there’s no discretionary work, crazy ideas never grow into something more.

When crazy ideas remain just crazy ideas, new design space remains too risky.

When new design space remains too risky, all you can do is what you did last time.

When you do what you did last time, managers rule.

When you do what you did last time, there is no progress.

When you do what you did last time, great talent won’t accept your job offers.

If there’s no discretionary work, you’re in trouble.

 

We do what we did last time because it worked.

We do what we did last time because we made lots of money.

We do what we did last time because it’s efficient.

We do what we did last time because it feels good.

We do what we did last time because we think we know what we’ll get.

We do what we did last time because that’s what we do.

 

Doing what we did last time works well, right up until it doesn’t.

When you find yourself doing what you did last time, do something else.

 

Image credit — Matt Deavenport

The Power of Prototypes

A prototype moves us from “That’s not possible.” to “Hey, watch this!”

A prototype moves us from “We don’t do it that way.” to “Well, we do now.”

A prototype moves us from “That’s impossible.” to “As it turns out, it was only almost impossible.”

A prototype turns naysayers into enemies and profits.

A prototype moves us from an argument to a new product development project.

A prototype turns analysis-paralysis into progress.

A prototype turns a skeptical VP into a vicious advocate.

A prototype turns a pet project into top-line growth.

A prototype turns disbelievers into originators of the idea.

A prototype can turn a Digital Strategy into customer value.

A prototype can turn an uncomfortable Board of Directors meeting into a pizza party.

A prototype can save a CEO’s ass.

A prototype can be too early, but mostly they’re too late.

If the wheels fall off your first prototype, you’re doing it right.

If your prototype doesn’t dismantle the Status-Quo, you built the wrong prototype.

A good prototype violates your business model.

A prototype doesn’t care if you see it for what it is because it knows everyone else will.

A prototype turns “I don’t believe you.” into “You don’t have to.”

When you’re told “Don’t make that prototype.” you’re onto something.

A prototype eats not-invented-here for breakfast.

A prototype can overpower the staunchest critic, even the VP flavor.

A prototype moves us from “You don’t know what you’re talking about.” to “Oh, yes I do.”

If the wheels fall off your second prototype, keep going.

A prototype is objective evidence you’re trying to make a difference.

You can argue with a prototype, but you’ll lose.

If there’s a mismatch between the theory and the prototype, believe the prototype.

A prototype doesn’t have to do everything, but it must do one important thing for the first time.

A prototype must be real, but it doesn’t have to be really real.

If your prototype obsoletes your best product, congratulations.

A prototype turns political posturing into reluctant compliance and profits.

A prototype turns “What the hell are you talking about?” into “This.”

A good prototype bestows privilege on the prototyper.

A prototype can beat a CEO in an arm-wrestling match.

A prototype doesn’t care if you like it. It only cares about creating customer value.

If there’s an argument between a well-stated theory and a well-functioning prototype, it’s pretty clear which camp will refine their theory to line up with what they just saw with their own eyes.

A prototype knows it has every right to tell the critics to “Kiss my ass.” but it knows it doesn’t have to.

You can argue with a prototype, but shouldn’t.

A prototype changes thinking without asking for consent.

Image credit — Pedro Ribeiro Simões

Words To Live By


What people think about you is none of your business.

If you’re afraid to be wrong, you shouldn’t be setting direction.

Think the better of people, as they’ll be better for it.

When you find yourself striving, pull the emergency brake and figure out how to start thriving.

If you want the credit, you don’t want to make a difference.

If you’re afraid to use your best judgment, find a mentor.

Family first, no exceptions.

When you hold a mirror to the organization, you demonstrate that you care.

If you want to grow people and you invest less than 30% of your time, you don’t want to grow them.

When someone gives you an arbitrary completion date, they don’t know what they’re doing.

When the Vice President wants to argue with the physics, let them.

When all else fails, use your best judgment.

If it’s not okay to tell the truth, work for someone else.

The best way to make money is not the best way to live.

When someone yells at you, that says everything about them and nothing about you.

Trust is a result. Think about that.

When you ask for the impossible, all the answers will be irrational.

No one can diminish you without your consent.

If you don’t have what you want, why not try to want what you have?

When you want to control things, you limit the growth of everyone else.

People can tell when you’re telling the truth, so tell them.

If you find yourself watching the clock, find yourself another place to work.

When someone does a great job, tell them.

If you have to choose between employment and enjoyment, choose the latter.

If you’re focused on cost reduction, you’re in a race to the bottom.

The best way to help people grow is to let them do it wrong (safely).

When you hold up a mirror to the organization, no one will believe what they see.

If you’re not growing your replacement, what are you doing?

If you’re not listening, you’re not learning.

When someone asks for help, help them.

If you think you know the right answer, you’re the problem.

When someone wants to try something new, help them.

Whatever the situation, tell the truth, and love everyone.

Image credit — John Fife

When it’s Time to Make a Difference

 

When it’s time to make meaningful change, there’s no time for consensus.

When the worn path of success must be violated, use a small team.

When it’s time for new thinking, create an unreasonable deadline, and get out of the way.

The best people don’t want the credit, they want to be stretched just short of their breaking point.

When company leadership wants you to build consensus before moving forward, they don’t think the problem is all that important or they don’t trust you.

When it’s time to make unrealistic progress, it’s time for fierce decision making.

When there’s no time for consensus, people’s feelings will be hurt. But there’s no time for that either.

When you’re pissed off because there’s been no progress for three years, do it yourself.

When it’s time to make a difference, permission is not required. Make a difference.

The best people must be given the responsibility to use their judgment.

When it’s time to break the rules, break them.

When the wheels fall off, regardless of the consequences, put them back on.

When you turn no into yes and catch hell for violating protocol, you’re working for the wrong company.

When everyone else has failed, it’s time to use your discretion and do as you see fit.

When you ask the team to make rain and they balk, you didn’t build the right team.

When it’s important and everyone’s afraid of getting it wrong, do it yourself and give them the credit.

The best people crave ridiculous challenges.

When the work must be different, create an environment that demands the team acts differently.

When it’s time for magic, keep the scope tight and the timeline tighter.

When the situation is dire and you use your discretion, to hell with anyone who has a problem with it.

When it’s time to pull a rabbit out of the hat, you get to decide what gets done and your special team member gets to decide how to go about it.  Oh, and you also get to set an unreasonable time constraint.

When it’s important, to hell with efficiency.  All that matters is effectiveness.

The best people want you to push them to the limit.

When you think you might get fired for making a difference, why the hell would you want to work for a company like that?

When it’s time to disrespect the successful business model, it’s time to create harsh conditions that leave the team no alternative.

The best people want to live where they want to live and do impossible work.

Image credit — Bernard Spragg. Nz

What it Takes to Do New Work

 

What it takes to do new work.

 

Confidence to get it wrong and confidence to do it early and often.

Purposeful misuse of worst practices in a way that makes them the right practices.

Tolerance for not knowing what to do next and tolerance for those uncomfortable with that.

Certainty that they’ll ask for a hard completion date and certainty you won’t hit it.

Knowledge that the context is different and knowledge that everyone still wants to behave like it’s not.

Disdain for best practices.

Discomfort with success because it creates discomfort when it’s time for new work.

Certainty you’ll miss the mark and certainty you’ll laugh about it next week.

Trust in others’ bias to do what worked last time and trust that it’s a recipe for disaster.

Belief that successful business models have half-lives and belief that no one else does.

Trust that others will think nothing will come of the work and trust that they’re likely right.

Image credit — japanexpertna.se

The Five Hardships of Success

Everything has a half-life, but we don’t behave that way.  Especially when it comes to success.  The thinking goes – if it was successful last time, it will be successful next time.  So, do it again. And again.  It’s an efficient strategy – the heavy resources to bring it to life have already been spent. And it’s predictable – the same customers, the same value proposition, the same supply base, the same distribution channel, and the same technology. And it’s dangerous.

Success is successful right up until it isn’t. It will go away. But it will take time.  A successful product line won’t fall off the face of the earth overnight. It will deliver profits year-over-year and your company will come to expect them.  And your company will get hooked on the lifestyle enabled by those profits. And because of the addiction, when they start to drop off the company will do whatever it takes to convince itself all is well.  No need to change.  If anything, it’s time to double-down on the successful formula.

Here’s a rule: When your successful recipe no longer brings success, it’s not time to double-down.

Success’s decline will be slow, so you have time.  But creating a new recipe takes a long time, so it’s time to declare that the decline has already started. And it’s time to learn how to start work on the new recipe.

Hardship 1 – Allocate resources differently. The whole company wants to spend resources on the same old recipes, even when told not to.  It’s time to create a funding stream that’s independent of the normal yearly planning cycle.  Simply put, the people at the top have to reallocate a part of the operating budget to projects that will create the next successful platform.

Hardship 2 – Work differently. The company is used to polishing the old products and they don’t know how to create new ones. You need to hire someone who can partner with outside companies (likely startups), build internal teams with a healthy disrespect for previous success, create mechanisms to support those teams and teach them how to work in domains of high uncertainty.

Hardship 3 – See value differently. How do you provide value today? How will you provide value when you can’t do it that way? What is your business model? Are you sure that’s your business model? Which elements of your business model are immature? Are you sure? What is the next logical evolution of how you go about your business? Hire someone to help you answer those questions and create projects to bring the solutions to life.

Hardship 4 – Measure differently. When there’s no customer, no technology and no product, there’s no revenue.  You’ve got to learn how to measure the value of the work (and the progress) with something other than revenue.  Good luck with that.

Hardship 5 – Compensate differently. People that create something from nothing want different compensation than people that do continuous improvement. And you want to move quickly, violate the status quo, push through constraints and create whole new markets. Figure out the compensation schemes that give them what they want and helps them deliver what you want.

This work is hard, but it’s not impossible. But your company doesn’t have all the pieces to make it happen.  Don’t be afraid to look outside your company for help and partnership.

Image credit — Insider Monkey

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

Transcending a Culture of Continuous Improvement

We’ve been too successful with continuous improvement. Year-on-year, we’ve improved productivity and costs.  We’ve improved on our existing products, making them slightly better and adding features.

Our recipe for success is the same as last year plus three percent. And because the customers liked the old one, they’ll like the new one just a bit more. And the sales can sell the new one because its sold the same way as the old one.  And the people that buy the new one are the same people that bought the old one.

Continuous improvement is a tried-and-true approach that has generated the profits and made us successful. And everyone knows how to do it.  Start with the old one and make it a little better. Do what you did last time (and what you did the time before). The trouble is that continuous improvement runs out of gas at some point. Each year it gets harder to squeeze out a little more and each year the return on investment diminishes. And at some point, the same old improvements don’t come. And if they do, customers don’t care because the product was already better than good enough.

But a bigger problem is that the company forgets to do innovative work. Though there’s recognition it’s time to do something different, the organization doesn’t have the muscles to pull it off. At every turn, the organization will revert to what it did last time.

It’s no small feat to inject new work into a company that has been successful with continuous improvement.  A company gets hooked on the predictable results of continuous which grows into an unnatural aversion to all things different.

To start turning the innovation flywheel, many things must change. To start, a team is created and separated from the continuously improving core.  Metrics are changed, leadership is changed and the projects are changed. In short, the people, processes, and tools must be built to deal with the inherent uncertainty that comes with new work.

Where continuous improvement is about the predictability of improving what is, innovation is about the uncertainty of creating what is yet to be. And the best way I know to battle uncertainty is to become a learning organization.  And the best way to start that journey is to create formal learning objectives.

Define what you want to learn but make sure you’re not trying to learn the same old things. Learn how to create new value  for customers; learn how to deliver that value to new customers; learn how to deliver that new value in new ways (new business models.)

If you’re learning the same old things in the same old way, you’re not doing innovation.

Purposeful Procrastination

There’s a useful trick when you want to do new work. It has some of the characteristics of procrastination, but it’s different. With procrastination, the problem solver waits to start the solving until it’s almost impossible to meet the deadline. The the solver uses the unreasonable deadline to create internal pressure so they can let go of all the traditional solving approaches.  With no time for traditional approaches, the solver must let go of what worked and try a new approach.

Now, the mainstream procrastinator doesn’t wait with forethought as I described, but forethought isn’t the required element.  The internal pressure doesn’t care if it was forethought, it constrains out the tried-and-true, either way. Forethought or not, the results speak for themselves – unimaginable work done in far less time than reasonable.
But what if you could take the best parts of procrastination and supercharge it with purpose and process? What if you could help people achieve the results of procrastination – unimagined solutions done in an unreasonable time window – but without all the stress that comes with procrastination? What about a process for purposeful procrastination?
The IBE (Innovation Burst Event) was created to do just that – to systematize the goodness of procrastination without all the baggage that comes with it.

The heart of the IBE is the Design Challenge, where a team with diverse perspective is brought together by a facilitator to solve a problem in five minutes. The unreasonable time constraint generates all the goodness that comes with procrastination, but, because it’s a problem solving exercise, there’s no drama.  And like with procrastination, the teams deliver unimaginable results within an unrealistic time constraint.

The purposefulness of the IBE comes with up-front work to create Design Challenges that investigate design space that has high potential.  This can be driven by the Voice of the Customer (VOC) or Voice of the Technology (VOT). Either way, the choice of the design space is purposeful.
If you want to jump-start your innovation work, try the IBE.  And who knows, if you call it purposeful procrastination you may get a lot of people to participate.

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

Mike Shipulski Mike Shipulski
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