Posts Tagged ‘no-to-yes’

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

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

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

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

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.

Innovation Truths

If it’s not different, it can’t be innovation.

With innovation, ideas are the easy part. The hard part is creating the engine that delivers novel value to customers.

The first goal of an innovation project is to earn the right to do the second hardest thing. Do the hardest thing first.

Innovation is 50% customer, 50% technology and 75% business model.

If you know how it will turn out, it’s not innovation.

Don’t invest in a functional prototype until customers have placed orders for the sell-able product.

If you don’t know how the customer will benefit from your innovation, you don’t know anything.

If your innovation work doesn’t threaten the status quo, you’re doing it wrong.

Innovation moves at the speed of people.

If you know when you’ll be finished, you’re not doing innovation.

With innovation, the product isn’t your offering. Your offering is the business model.

If you’re focused on best practices, you’re not doing innovation. Innovation is about doing things for the first time.

If you think you know what the customer wants, you don’t.

Doing innovation within a successful company is seven times hard than doing it in a startup.

If you’re certain, it’s not innovation.

With innovation, ideas and prototypes are cheap, but building the commercialization engine is ultra-expensive.

If no one will buy it, do something else.

Technical roadblocks can be solved, but customer/market roadblocks can be insurmountable.

The first thing to do is learn if people will buy your innovation.

With innovation, customers know what they don’t want only after you show them your offering.

With innovation, if you’re not scared to death you’re not trying hard enough.

The biggest deterrent to innovation is success.

Image credit — Sherman Geronimo-Tan

Don’t change culture. Change behavior.

There’s always lots of talk about culture and how to change it.  There is culture dial to turn or culture level to pull. Culture isn’t a thing in itself, it’s a sentiment that’s generated by behavioral themes.  Culture is what we use to describe our worn paths of behavior.  If you want to change culture, change behavior.

At the highest level, you can make the biggest cultural change when you change how you spend your resources. Want to change culture? Say yes to projects that are different than last year’s and say no to the ones that rehash old themes.  And to provide guidance on how to choose those new projects create, formalize new ways you want to deliver new value to new customers.  When you change the criteria people use to choose projects you change the projects.  And when you change the projects people’s behaviors change. And when behavior changes, culture changes.

The other important class of resources is people.  When you change who runs the project, they change what work is done.  And when they prioritize a different task, they prioritize different behavior of the teams.  They ask for new work and get new behavior. And when those project leaders get to choose new people to do the work, they choose in a way that changes how the work is done.  New project leaders change the high-level behaviors of the project and the people doing the work change the day-to-day behavior within the projects.

Change how projects are chosen and culture changes. Change who runs the projects and culture changes. Change who does the project work and culture changes.

Image credit – Eric Sonstroem

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.

The right time horizon for technology development

Patents are the currency of technology and profits are the currency of business.  And as it turns out, if you focus on creating technology you’ll get technology (and patents) and if you focus on profits you’ll get profits. But if no one buys your technology (in the form of the products or services that use it), you’ll go out of business.  And if you focus exclusively on profits you won’t create technology and you’ll go out of business.  I’m not sure which path is faster or more dangerous, but I don’t think it matters because either way you’re out of business.

It’s easy to measure the number of patents and easier to measure profits.  But there’s a problem.  Not all patents (technologies) are equal and not all profits are equal.  You can have a stockpile of low-level patents that make small improvements to existing products/services and you can have a stockpile of profits generated by short-term business practices, both of which are far less valuable than they appear. If you measure the number of patents without evaluating the level of inventiveness, you’re running your business without a true understanding of how things really are.  And if you’re looking at the pile of profits without evaluating the long-term viability of the engine that created them you’re likely living beyond your means.

In both cases, it’s important to be aware of your time horizon.  You can create incremental technologies that create short term wins and consume all your resource so you can’t work on the longer-term technologies that reinvent your industry.  And you can implement business practices that eliminate costs and squeeze customers for next-quarter sales at the expense of building trust-based engines of growth.  It’s all about opportunity cost.

It’s easy to develop technologies and implement business processes for the short term.  And it’s equally easy to invest in the long term at the expense of today’s bottom line and payroll.  The trick is to balance short against long.

And for patents, to achieve the right balance rate your patents on the level of inventiveness.

Image credit – NASA’s Solar Dynamics Observatory

Even entrepreneurial work must fit with the brand.

To meet ever-increasing growth objectives, established companies want to be more entrepreneurial.  And the thinking goes like this – launch new products and services to create new markets, do it quickly and do it on a shoestring.  Do that Lean Startup thing.  Build minimum viable prototypes (MVPs), show them to customers, incorporate their feedback, make new MVPs, show them again, and then thoselaunch.

For software products, that may work well, largely because it takes little time to create MVPs, customers can try the products without meeting face-to-face and updating the code doesn’t take all that long.  But for products and services that require new hardware, actual hardware, it’s a different story.  New hardware takes a long time to invent, a long time to convert into an MVP, a long time to show customers and a long time to incorporate feedback.  Creating new hardware and launching quickly in an entrepreneurial way don’t belong in the same sentence, unless there’s no new hardware.

For hardware, don’t think smartphones, think autonomous cars.  And how’s that going for Google and the other software companies? As it turns out, it seems that designing hardware and software are different.  Yes, there’s a whole lot of software in there, but there’s also a whole lot of new sensor systems (hardware).  And, what complicates things further is that it’s all packed into an integrated system of subsystems where the hardware and software must cooperate to make the good things happen.  And, when the consequences of a failure are severe, it’s more important to work out the bugs.

And that’s the rub with entrepreneurship and an established brand.  For quick adoption, there’s strong desire to leverage the established brand – GM, Ford, BMW – but the output of the entrepreneurial work (new product or service) has to fit with the brand.  GM can’t launch something that’s half-baked with the promise to fix it later. Ford can come out with a new app that is clunky and communicates intermittently with their hardware (cars) because it will reflect poorly on all their products.  In short, they’ll sell fewer cars.  And BMW can’t come out with an entrepreneurial all-electric car that handles poorly and is slow off the start.  If they do, they’ll sell fewer cars.  If you’re an established company with an established brand, the output of your entrepreneurial work must fit with the established brand.

If you’re a software startup, launch it when it’s half-baked and fix it later, as long as no one will die when it flakes out.  And because it’s software, iterate early and often. And, there’s no need to worry about what it will do to the brand, because you haven’t created it yet.  But if you’re a hardware startup, be careful not to launch before it’s ready because you won’t be able to move quickly and you’ll be stuck with your entrepreneurial work for longer than you want.  Maybe, even long enough to sink the brand before it ever learned to swim.  Developing hardware is slow.  And developing robust hardware-software systems is far slower.

If you’re an established company with an established brand, tread lightly with that Lean Startup thing, even when it’s just software.  An entrepreneurial software product that works poorly can take down the brand, if, of course, your brand stands for robust, predictable, value and safety.  And if the entrepreneurial product relies on new hardware, be doubly careful.  If it goes belly-up, it will be slow to go away and will put a lot of pressure on that wonderful brand you took so long to build.

If you’re an established brand, it may be best to buy your entrepreneurial products and services from the startups that took the risk and made it happen.  That way you can buy their successful track record and stand it on the shoulders of your hard-won brand.

Image credit – simpleinsomnia

How to Choose the Best Idea

We have too many ideas, but too few great ones.  We don’t need more ideas, we need a way to choose the best one or two ideas and run them to ground.

Before creating more ideas, make a list of the ones you already have.  Put them in two boxes.  In Box 1, list the ideas without a video of a functional prototype in action.  In Box 2, list the ideas that have a video showing a functional prototype demonstrating the idea in action.  For those ideas with a functional prototype and no video, put them in Box 1.

Next, throw away Box 1. If it’s not important enough to make a crude physical prototype and create a simple video, the idea isn’t worth a damn.  If someone isn’t willing to carve out the time to make a physical prototype, there’s no emotional energy behind the idea and it should be left to die.  And when people complain that it’s unfair to throw away all those good ideas in Box 1, tell them it’s unfair to spend valuable resources talking about ideas that aren’t worthy.  And suggest, if they want to have a discussion about an idea, they should build a physical prototype and send you the video.  Box 2, or bust.

Next, get the band together and watch the short videos in Box 2, and, as a group, put them in two boxes.  In Box 3, put the videos without customers actively using the functional prototype.  In Box 4, put the videos with customers actively using the functional prototype.

Next, throw way Box 3.  If it’s not important enough to make a trip to an important customer and create a short video, the idea isn’t worth a damn.  If you’re not willing to put yourself out there and take the idea to an important customer, the idea is all fizzle and no sizzle.  Meaningful ideas take immense personal energy to run through the gauntlet, and without a video of a customer using the functional prototype, there’s not enough energy behind it.  And when everyone argues that Box 3 ideas are worth pursuing, tell them to pursue a video showing a most important customer demonstrating the functional prototype.

Next, get the band back together to watch the Box 4 videos.  Again, put the videos in two boxes. In Box 5 put the videos where the customer didn’t say what they liked and how they’d use it.  In Box 6, put the videos where the customer enthusiastically said what they liked and how they’ll use it.

Next, throw away Box 5.  If the customer doesn’t think enough about the prototype to tell you how they’ll use it, it’s because they don’t think much of the idea.  And when the group says the customer is wrong or the customer doesn’t understand what the prototype is all about, suggest they create a video where a customer enthusiastically explains how they’d use it.

Next, get the band back in the room and watch the Box 6 videos.  Put them in two boxes.  In Box 7, put the videos that won’t radically grow the top line.  In Box 8, put the videos that will radically grow the top line.  Throw away Box 7.

For the videos in Box 8, rank them by the amount of top line growth they will create.  Put all the videos back into Box 8, except the video that will create the most top line growth.  Do NOT throw away Box 8.

The video in your hand IS your company’s best idea.  Immediately charter a project to commercialize the idea.  Staff it fully.  Add resources until adding resources doesn’t no longer pulls in the launch.  Only after the project is fully staffed do you put your hand back into Box 8 to select the next best idea.

Continually evaluate Boxes 1 through 8.  Continually throw out the boxes without the right videos.  Continually choose the best idea from Box 8.  And continually staff the projects fully, or don’t start them.

Image credit – joiseyshowaa

Mike Shipulski Mike Shipulski
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