Archive for the ‘Level 5 Courage’ Category

Technical Risk, Market Risk, and Emotional Risk

Technical risk – Will it work?

Market risk – Will they buy it?

Emotional risk – Will people laugh at your crazy idea?

 

Technical risk – Test it in the lab.

Market risk – Test it with the customer.

Emotional risk – Try it with a friend.

 

Technical risk – Define the right test.

Market risk – Define the right customer.

Emotional risk – Define the right friend.

 

Technical risk – Define the minimum acceptable performance criteria.

Market risk – Define the minimum acceptable response from the customer.

Emotional risk – Define the minimum acceptable criticism from your friend.

 

Technical risk – Can you manufacture it?

Market risk – Can you sell it?

Emotional risk – Can you act on your crazy idea?

 

Technical risk – How sure are you that you can manufacture it?

Market risk – How sure are you that you can sell it?

Emotional risk – How sure are you that you can act on your crazy idea?

 

Technical risk – When the VP says it can’t be manufactured, what do you do?

Market risk – When the VP says it can’t be sold, what do you do?

Emotional risk – When the VP says your idea is too crazy, what do you do?

 

Technical risk – When you knew the technical risk was too high, what did you do?

Market risk – When you knew the market risk was too high, what did you do?

Emotional risk – When you knew someone’s emotional risk was going to be too high, what did you do?

 

Technical risk – Can you teach others to reduce technical risk? How about increasing it?

Market risk – Can you teach others to reduce technical risk? How about increasing it?

Emotional risk – Can you teach others to reduce emotional risk? How about increasing it?

 

Technical risk – What does it look like when technical risk is too low? And the consequences?

Market risk – What does it look like when technical risk is too low? And the consequences?

Emotional risk – What does it look like when emotional risk is too low? And the consequences?

 

We are most aware of technical risk and spend most of our time trying to reduce it.  We have the mindset and toolset to reduce it.  We know how to do it.  But we were not taught to recognize when technical risk is too low.  And if we do recognize it’s too low, we don’t know how to articulate the negative consequences. With all this said, market risk is far more dangerous.

We’re unfamiliar with the toolset and mindset to reduce market risk. Where we can change the design, run the test, and reduce technical risk, market risk is not like that.  It’s difficult to understand what drives the customers’ buying decision and it’s difficult to directly (and quickly) change their buying decision. In short, it’s difficult to know what to change so they make a different buying decision.  And if they don’t buy, you don’t sell. And that’s a big problem.  With that said, emotional risk is far more debilitating.

When a culture creates high emotional risk, people keep their best ideas to themselves. They don’t want to be laughed at or ridiculed, so their best ideas don’t see the light of day. The result is a collection of wonderful ideas known only to the underground Trust Network. A culture that creates high emotional risk has insufficient technical and market risk because everyone is afraid of the consequences of doing something new and different.  The result – the company with high emotional risk follows the same old script and does what it did last time.  And this works well, right up until it doesn’t.

Here’s a three-pronged approach that may help.

  1. Continue to reduce technical risk.
  2. Learn to reduce market risk early in a project.
  3. And behave in a way that reduces emotional risk so you’ll have the opportunity to reduce technical and market risk.

Image credit — Shan Sheehan

If you’re not creating derision, why bother?

When you see good work, say so.

When you see exceptional work, say so in public.

When you’ve had good teachers, be thankful.

When you’ve had exceptional teachers, send them a text because texts are personal.

When you do great work and no one acknowledges it, take some time to feel the pain and get back to work.

When you do great work and no one acknowledges it, take more time to feel the pain and get back to work.

When you’ve done great work, tell your family.

When you’ve done exceptional work, tell them twice.

When you do the work no one is asking for, remember your time horizon is longer than theirs.

When you do the work that threatens the successful business model, despite the anguish it creates, keep going.

When they’re not telling you to stop, try harder.

When they’re telling you to stop it’s because your work threatens.  Stomp on the accelerator.

When you can’t do a project because the ROI is insufficient, that’s fine.

When no one can calculate an ROI because no one can imagine a return, that’s better.

When you give a little ground on what worked, you can improve other dimensions of goodness.

When you outlaw what worked, you can create new market segments.

When everyone understands why you’re doing it, your work may lead to something good.

When no one understands why you’re doing it, your work may reinvent the industry.

When you do new work, don’t listen to the critics. Do it despite them.

When you do work that threatens, you will be misunderstood.  That’s a sign you’re on to something.

When you want credit for the work, you can’t do amazing work.

When you don’t need credit for the work, it opens up design space where the amazing work lives.

When your work makes waves, that’s nice.

When your work creates a tsunami, that’s better.

When you’re willing to forget what got you here, you can create what could be.

When you’re willing to disrespect what got you here, you can create what couldn’t be.

When your work is ignored, at least you’re doing something different.

When you and your work are derided, you’re doing it right.

Image credit — Herry Lawford

Say no to say yes.

If the project could obsolete your best work, do it.  Otherwise, do something else.

But first, makes sure there’s solid execution on the turn-the-crank projects that pay the bills.

If you always say yes to projects, you never have the bandwidth to do the magical work no one is asking for.

When was the last time you used your discretion to work on a project of your choosing? How do you feel about that?

If you’re told to stop the project by the most successful business unit, stomp on the accelerator.

The best projects aren’t the ones with the best ROI. The best projects are the ones that threaten success.

If you’re certain of a project’s ROI, there is no novelty.

If the project has novelty, you can’t predict the ROI. All you can do is decide if it’s worth doing.

There’s a big difference between calculating an ROI and predicting the commercial success of a project.

If your company demands certainty, you can be certain the new projects will be just like the old ones.

If the success of a project hinges on work hasn’t been done before, you may have a winner.

Say yes to predictability and you say no to novelty.

Say no to novelty and you say no to innovation.

Say no to innovation and you say no to growth.

Say no to growth and the game is over.

Say no to good projects so you can say yes to the magical ones.

Say no to ROI so you work on projects that could reinvent the industry.

If the project doesn’t excite, just say no.

Image credit – Lucie Provincher

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

Why do you go to work?

Why did you go to work today? Did your work bring you meaning? How do you feel about that? Your days are limited. What would it take to slather your work with meaning?

Last week, did you make a difference? Did you make a ruckus?

Would you rather strive for the next job, or would you rather make a difference?

Ten years from now, what will be different because of you? Who will remember? How do you feel about that?

Who stands taller because of you?

Do you want to make a difference or do you want the credit?

Do you care what people think or do you do what’s right?

Do you stand front and center when things go badly? Do you sit quietly in the background when things go well? If you don’t, why don’t you do what it takes to develop young talent?

Have you ever done something that’s right for the company but wrong for your career? If you have, many will remember.

What conditions did you create to help people try new things?

Would you rather make the decision yourself or teach others to make good decisions?

Here’s a rule: If you didn’t make a ruckus, you didn’t make a difference.

Last week, did you go with the flow, or did you generate that much-needed turbulence for those that are too afraid to speak up?

What have you given that will stay with someone for the rest of their life?

Do bring your whole self to the work?

If the right people know what you did, can that be enough for you?

At the end of the day, what is different because of you? More importantly, at the end of the day who is different? Who did you praise? Who did you push? Who did you believe in? Who did you teach? Who did you support? Who did you learn from? Who did you thank? Who did you challenge? Who did empathize with? Who were you truthful with? Who did you share with? Who did you listen to?

And how do you feel about that?

Image credit — banoootah_qtr

Wrong Questions to Ask When Doing Technology Development

I know you’re trying to do something that has never been done before, but when will you be done? I don’t know.  We’ll run the next experiment then decide what to do next.  If it works, we’ll do more of that.  And if it doesn’t, we’ll do less of that. That’s all we know right now.

I know you’re trying to create something that is new to our industry, but how many will we sell? I don’t know. Initial interviews with customers made it clear that this is an important customer problem. So, we’re trying to figure out if the technology can provide a viable solution.  That’s all we know right now.

No one is asking for that obscure technology. Why are you wasting time working on that?  Well, the voice of the technology and the S-curve analyses suggest the technology wants to move in this direction, so we’re investing this solution space.  It might work and it might not.  That’s all we know right now.

Why aren’t you using best practices? If it hasn’t been done before, there can be no best practice.  We prefer to use good practice or emergent practice.

There doesn’t seem like there’s been much progress.  Why aren’t you running more experiments? We don’t know which experiments to run, so we’re taking some time to think about what to do next.

Will it work?  I don’t know.

That new technology may obsolete our most profitable product line.  Shouldn’t you stop work on that? No. If we don’t obsolete our best work, someone else will. Wouldn’t it be better if we did the obsoleting?

How many more people do you need to accelerate the technology development work? None.  Small teams are better.

Sure, it’s a cool technology, but how much will it cost?  We haven’t earned the right to think about the cost.  We’re still trying to make it work.

So, what’s your solution? We don’t know yet.  We’re still trying to formulate the customer problem.

You said you’d be done two months ago.  Why aren’t you done yet? I never said we’d be done two months ago. You asked me for a completion date and I could not tell you when we’d be done.  You didn’t like that answer so I suggested that you choose your favorite date and put that into your spreadsheet. We were never going to hit that date, and we didn’t.

We’ve got a tight timeline.  Why are you going home at 5:00? We’ve been working on this technology for the last two years.  This is a marathon.  We’re mentally exhausted.  See you tomorrow.

If you don’t work harder, we’ll get someone else to do the technology development work.  What do you think about that? You are confusing activity with progress.  We are doing the right analyses and the right thinking and we’re working hard.  But if you’d rather have someone else lead this work, so would I.

We need a patented solution.  Will your solution be patentable? I don’t know because we don’t yet have a solution. And when we do have a solution, we still won’t know because it takes a year or three for the Patent Office to make that decision.

So, you’re telling me this might not work?  Yes. That’s what I’m telling you.

So, you don’t know when you’ll be done with the technology work, you don’t know how much the technology will cost, you don’t know if it will be patentable, or who will buy it? That’s about right.

Image credit — Virtual EyeSee

No Time for the Truth

Company leaders deserve to know the truth, but they can no longer take the time to learn it.

Company leaders are pushed too hard to grow the business and can no longer take the time to listen to all perspectives, no longer take the time to process those perspectives, and no longer take the time to make nuanced decisions. Simply put, company leaders are under too much pressure to grow the business.  It’s unhealthy pressure and it’s too severe.  And it’s not good for the company or the people that work there.

What’s best for the company is to take the time to learn the truth.

Getting to the truth moves things forward.  Sure, you may not see things correctly, but when you say it like you see it, everyone’s understanding gets closer to the truth.  And when you do see things clearly and correctly, saying what you see moves the company’s work in a more profitable direction.  There’s nothing worse than spending time and money to do the work only to learn what someone already knew.

What’s best for the company is to tell the truth as you see it.

All of us have good intentions but all of us are doing at least two jobs. And it’s especially difficult for company leaders, whose responsibility is to develop the broadest perspective.  Trouble is, to develop that broad perspective sometime comes at the expense of digging into the details. Perfectly understandable, as that’s the nature of their work. But subject matter experts (SMEs) must take the time to dig into the details because that’s the nature of their work. SMEs have an obligation to think things through, communicate clearly, and stick to their guns.  When asked broad questions, good SMEs go down to bedrock and give detailed answers. And when asked hypotheticals, good SMEs don’t speculate outside their domain of confidence. And when asked why-didn’t-you’s, good SMEs answer with what they did and why they did it.

Regardless of the question, the best SMEs always tell the truth.

SMEs know when the project is behind. And they know the answer that everyone thinks will get the project get back on schedule. And the know the truth as they see it. And when there’s a mismatch between the answer that might get the project back on schedule and the truth as they see it, they must say it like they see it.  Yes, it costs a lot of money when the project is delayed, but telling the truth is the fastest route to commercialization. In the short term, it’s easier to give the answer that everyone thinks will get things back on track. But truth is, it’s not faster because the truth comes out in the end.  You can’t defy the physics and you can’t transcend the fundamentals.  You must respect the truth. The Universe doesn’t care if the truth is inconvenient.  In the end, the Universe makes sure the truth carries the day.

We’re all busy.  And we all have jobs to do. But it’s always the best to take the time to understand the details, respect the physics, and stay true to the fundamentals.

When there’s a tough decision, understand the fundamentals and the decision will find you.

When there’s disagreement, take the time to understand the physics, even the organizational kind. And the right decision will meet you where you are.

When the road gets rocky, ask your best SMEs what to do, and do that.

When it comes to making good decisions, sometimes slower is faster.

Image credit — Dennis Jarvis

Effectiveness at the Expense of Efficiency

Efficiency is a simple measurement – output divided by resources needed to achieve it. How much did you get done and how many people did you need to do it? What was the return on the investment? How much money did you make relative to how much you had to invest? We have efficiency measurements for just about everything. We are an efficiency-based society.

It’s easy to create a metric for efficiency. Figure out the output you can measure and divide it by the resources you think you used to achieve it. While a metric like this is easy to calculate, it likely won’t provide a good answer to what we think is the only question worth asking– how do we increase efficiency?

Problem 1. The resources you think are used to produce the output aren’t the only resources you used to generate the output.  There are many resources that contributed to the output that you did not measure. And not only that, you don’t know how much those resources actually cost.  You can try the tricky trick of fully burdened cost, where the labor rate is loaded with an overhead percentage.  But that’s, well, nothing more than an artifact of a contrived accounting system. You can do some other stuff like calculate the opportunity cost of deploying those resources on other projects. I’m not sure what that will get you, but it won’t get you the actual cost of achieving the output you think you achieved.

Problem 2. We don’t measure what’s important or meaningful.  We measure what’s easy to measure.  And that’s a big problem because you end up beating yourself about the head and shoulders trying to improve something that is easy to measure but not all that meaningful. The biggest problem here is local optimization.  You want something easy to measure so you cull out a small fraction of a larger process and increase the output of that small part of the process.  The thing is, your customer doesn’t care about the efficiency of that small piece of that process.  And, improving that small piece likely doesn’t do anything for the output of the total process.  If more products aren’t leaving the factory, you didn’t do anything.

Problem 3. Productivity isn’t all that important. What’s important is effectiveness.  If you are highly efficient at the wrong thing, you may be efficient, but you’re also ineffective. If you launch a product in a highly efficient way and no one buys it, your efficiency numbers may be off the charts, but your effectiveness numbers are in the toilet.

We have very few metrics on effectiveness.  But here are some questions a good effectiveness metric should help you answer.

  • Did we work on the right projects?
  • Did we make good decisions?
  • Did we put the right people on the projects?
  • Did we do what we said we’d do?
  • After the project, is the team excited to do a follow-on project?
  • Did our customers benefit from our work?
  • Do our partners want to work with us again?
  • Did we set ourselves up to do our work better next time?
  • Did we grow our young talent?
  • Did we have fun?
  • Do more people like to work at our company?
  • Have we developed more trust-based relationships over the last year?
  • Have we been more transparent with our workforce this year?

If I had a choice between efficiency and effectiveness, I’d choose effectiveness.

Image credit – Bruce Tuten

Bringing Your Whole Self to Work

Do you bring your whole self to work? If not, how do you feel about that?

When you demonstrate your unique goodness and it’s met with “You don’t fit in.” they may say they want you to fit in, but, really, that’s objective evidence that they need your unique goodness.

Witches were burned at the stake because their special powers frightened people.

If it’s a good idea, don’t block it because people call it heresy.

The Universe doesn’t care if it’s heresy, as long as it’s a good idea.

The Universe doesn’t discriminate against witches.

If you’re a plumber that fixes pipes and fixes potholes, they’ll expect you to fix pipes and fill potholes.

Sometimes you’ve got to withhold the solution If you want the organizational learning to happen.

If you fill all the potholes, the company never learns that someone’s not doing their job.

A plumber who fixes pipes and fills potholes should be paid more than a plumber that just fixes pipes.

When no one listens to reason, the only thing left to do is let the wheels fall off.

And if you really care about the long-term success of the company, you’ll let them fall off.

If you see things differently, you’re obligated to say so, even if you’re wrong.

When you speak truth to Power, does Power thank you or kick you?

If after speaking unsayable truth to Power, they kick you, that says a lot about Power.

When you’re satisfied with what you have, striving-based motivation tactics have no power.

It’s easy to mentor down into the organization, but it takes a special person to mentor uphill.

Never do your boss’s job.

When successful thinking becomes geriatric, it’s time for hospice.

Successful business models change only after they become unsuccessful.

Change happens only after exhausting all other possibilities. And it takes special people to make it happen.

If you ‘re afraid and hold back because you’re concerned about being burned at the stake, you should put your magic wand in your pocket, jump on your broom (or vacuum cleaner), and find another job.

Image credit — Jerzy Kociatkiewicz

Battling Judgment

Judging results when things are different than our expectations.

If you don’t like being judged, stop judging yourself.

No one can judge you without your consent, even you.

If someone judges you, that’s about them.

People’s judgment of you is none of your business.

When you see a friend judging themselves, give them a hug. A virtual one will do.

Judging someone means you want them to be different than they are.

If someone gives you a gift and you don’t accept it, it’s still theirs. Judgment is like that.

If you’re afraid of being judged for trying something new, be afraid, and try it anyway.

Judgment is objective evidence of disapproval if you accept it.

Judging someone won’t change their behavior, other than make them angry.

When you see a friend being judged, give them a hug (in a social distance way.)

When someone judges you, don’t worry.  In ten years, no one will remember.

When someone tries to judge you, let them try.

If you do your best, why do you think it’s okay to judge yourself about the outcome?

If you don’t do your best, don’t judge. Ask why.

Judgment can debilitate, but only if you let it.

Image credit — Stuart Richards

Mike Shipulski Mike Shipulski
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