Posts Tagged ‘Success’

Mutual Trust, Intuitive Skill, and Center of Emphasis

Mutual Trust. Who do you trust implicitly? And of that shortlist, who trusts you implicitly? You know how they’ll respond. You know what decision they’ll make. And you don’t have to keep tabs on them and you don’t have to manage them. You do your thing and they do theirs and, without coordinating, everything meshes.

When you have mutual trust, you can move at lightning speed. No second-guessing. No hesitation. No debates. Just rapid progress in a favorable direction. Your eyes are their eyes. Their ears are your ears. One person in two bodies.

If I could choose one thing to have, I’d choose mutual trust.

Mutual trust requires shared values. So, choose team members with values that you value. And mutual trust is developed slowly over time as you work together to solve the toughest problems with the fewest resources and the tightest timelines. Without shared values, you can’t have mutual trust. And without joint work on enigmatic problems, you can’t have mutual trust.

Mutual trust is a result. And when your trust-based relationships are more powerful than the formal reporting structure, you’ve arrived.

Intuitive Skill. In today’s world, decisions must be made quickly. And to make good decisions under unreasonable time constraints and far too little data requires implicit knowledge and intuitive skill. Have you read the literature? Have you studied the history? Have you drilled, and drilled, and drilled again? Did you get the best training? Have you honed your philosophy by doing the hard work? Have you done things badly, learned the hard lessons, and embossed those learnings on your soul? Have you done it so many times you know how it will go? Have you done it so many different ways your body knows how it should respond in unfamiliar situations?

If you have to think about it, you don’t yet have intuitive skill.  If you can explain why you know what to do, you don’t have intuitive skill. Make no mistake.  Intuitive skill does not come solely from experience.  It comes from study, from research, from good teachers, and from soul searching.

When your body starts doing the right thing before your brain realizes you’re doing it, you have intuitive skill.  And when you have intuitive skill, you can move at light speed.  When it takes more time to explain your decision than it does to make it, you have intuitive skill.

Center of Mass, Center of Emphasis. Do you focus on one thing for a week at a time? And do you wake up dreaming about it? And do you find yourself telling people that we’ll think about something else when this thing is done? Do you like doing one thing in a row? Do you delay starting until you finish finishing? Do you give yourself (and others) the flexibility to get it done any way they see fit, as long as it gets done? If the answer is yes to all these, you may be skilled in center-of-emphasis thinking.

The trick here is to know what you want to get done, but have the discipline to be flexible on how it gets done.

Here’s a rule.  If you’re the one who decides what to do, you shouldn’t be the one who decides the best way to do it.

Yes, be singularly focused on the objective, but let the boots-on-the-ground circumstances and the context of the moment define the approach. And let the people closest to the problem figure out the best way to solve it because the context is always changing, the territory is always changing, and the local weather is always changing. And the right approach is defined by the specific conditions of the moment.

Build trust and earn it. And repeat. Practice, study, do, and learn. Hone and refine. And repeat. And choose the most important center of emphasis and let the people closest to the problem choose how to solve it. And then build trust and earn it.

This post was inspired by Taylor Pearson and John Boyd, the creator of the OODA loop.

Image credit – Andy Maguire

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

Want to succeed? Learn how to deliver customer value.

Whatever your initiative, start with customer value. Whatever your project, base it on customer value. And whatever your new technology, you guessed it, customer value should be front and center.

Whenever the discussion turns to customer value, expect confusion, disagreement, and, likely, anger. To help things move forward, here’s an operational definition I’ve found helpful:

When they buy it for more than your cost to make it, you have customer value.

And when there’s no way to pull out of the death spiral of disagreement, use this operational definition to avoid (or stop) bad projects:

When no one will buy it, you don’t have customer value and it’s a bad project.

As two words, customer and value don’t seem all that special. But, when you put them together, they become words to live by.  But, also, when you do put them together, things get complicated.  Here’s why.

To provide customer value, you’ve got to know (and name) the customer.  When you asked “Who is the customer?” the wheels fall off. Here are some wrong answers to that tricky question. The Board of Directors is the customer. The shareholders are the customers. The distributor is the customer. The OEM that integrates your product is the customer. And the people that use the product are the customer. Here’s an operational definition that will set you free:

When someone buys it, they are the customer.

When the discussions get sticky, hold onto that definition. Others will try to bait you into thinking differently, but don’t bite. It will be difficult to stand your ground.  And if you feel the group is headed in the wrong direction, try to set things right with this operational definition:

When you’ve found the person who opens their wallet, you’ve found the customer.

Now, let’s talk about value. Isn’t value subjective? Yes, it is.  And the only opinion that matters is the customer’s. And here’s an operational definition to help you create customer value:

When you solve an important customer problem, they find it valuable.

And there you have it.  Putting it all together, here’s the recipe for customer value:

  1. Understand who will buy it.
  2. Understand their work and identify their biggest problem.
  3. Solve their problem and embed it in your offering.
  4. Sell it for more than it costs you to make it.

Image credit — Caroline

When It’s Time to Defy Gravity

If you pull hard on your team, what will they do? Will they rebel? Will they push back? Will they disagree? Will they debate? And after all that, will they pull with you? Will the pull for three weeks straight? Will they pull with their whole selves? How do you feel about that?

If you pull hard on your peers, what will they do? Will they engage? Will they even listen? Will they dismiss? And if they dismiss, will you persist? Will you pull harder? And when you pull harder, do they think more of you? And when you pull harder still, do they think even more of you? Do you know what they’ll do? And how do you feel about that?

If you push hard on your leadership, what will they do? Will they ‘lllisten or dismiss? And if they dismiss, will you push harder? When you push like hell, do they like that or do they become uncomfortable, what will you do?  Will they dislike it and they become comfortable and thankful you pushed? Whatever they feel, that’s on them. Do you believe that? If not, how do you feel about that?

When you say something heretical, does your team cheer or pelt you with fruit? Do they hang their heads or do they hope you do it again?  Whatever they do, they’ve watched your behavior for several years and will influence their actions.

When you openly disagree with the company line, do your peers cringe or ask why you disagree? Do they dismiss your position or do they engage in a discussion? Do they want this from you? Do they expect this from you? Do they hope you’ll disagree when you think it’s time? Whatever they do, will you persist? And how do you feel about that?

When you object to the new strategy, does your leadership listen? Or do they un-invite you to the next strategy session?  And if they do, do you show up anyway? Or do they think you’re trying to sharpen the strategy? Do they think you want the best for the company? Do they know you’re objecting because everyone else in the room is afraid to? What they think of your dissent doesn’t matter.  What matters is your principled behavior over the last decade.

If there’s a fire, does your team hope you’ll run toward the flames? Or, do they know you will?

If there’s a huge problem that everyone is afraid to talk about, do your peers expect you get right to the heart of it? Or, do they hope you will? Or, do they know you will?

If it’s time to defy gravity, do they know you’re the person to call?

And how do you feel about that?

Image credit – The Western Sky

Learn to Recognize Waiting

If you want to do a task, but you don’t have what you need, that’s waiting for a support resource. If you need a tool, but you don’t have it, you wait for a tool. If you need someone to do the task, but you don’t have anyone, you wait for people. If you need some information to make a decision, but you don’t have it, you wait for information.

If a tool is expensive, usually you have to wait for it. The thinking goes like this – the tool is expensive, so let’s share the cost over too many projects and too many teams. Sure, less work will get done, but when we run the numbers, the tool will look less expensive because it’s used by many people.  If you see a long line of people (waiting) or a signup list (people waiting at their desks), what they are waiting for is usually an expensive tool or resource. In that way, to find the cause of waiting, stand at the front of the line and look around. What you see is the cause of the waiting.

If the tool isn’t expensive, buy another one and reduce the waiting. If the tool is expensive, calculate the cost of delay.  Cost of delay is commonly used with product development projects. If the project is delayed by a month, the incremental revenue from the product launch is also delayed by a month.  That incremental revenue is the cost of delaying the project by a month. When the cost of delay is larger than the cost of an expensive tool, it makes sense to buy another expensive tool. But, to purchase that expensive tool requires multiple levels of approvals.  So, the waiting caused by the tool results in waiting for approval for the new tool. I guess there’s a cost of delay for the approval process, but let’s not go there.

Most companies have more projects than people, and that’s why projects wait. And when projects wait, projects are late. Adding people is like getting another expensive tool.  They are spread over too many projects, and too little gets done. And like with expensive tools, getting more people doesn’t come easy. New hires can be justified (more waiting in the approval queue), but that takes time to find them, hire them, and train them. Hiring temporary people is a good option, though that can seem too expensive (higher hourly rate), it requires approval, and it takes time to train them.  Moving people from one project to another is often the best way because it’s quick and the training requirement is less.  But, when one project gains a person, another project loses one. And that’s often the rub.

When it’s time to make an important decision and the team has to wait for missing information, the project waits. And when projects wait, projects are late. It’s difficult to see the waiting caused by missing or uncommunicated information, but it can be done. The easiest to see when the information itself is a project deliverable. If a milestone review requires a formal presentation of the information, the review cannot be held without it. The delay of the milestone review (waiting) is objective evidence of missing information.

Information-based waiting is relatively easy to see when the missing information violates a precedent for decision making.  For example, if the decision is always made with a defined set of data or information, and that information is missing, the precedent is violated and everyone knows the decision cannot be made. In this case, everyone’s clear why the decision cannot be made, everyone’s clear on what information is missing, and everyone’s clear on who dropped the ball.

It’s most difficult to recognize information-based waiting when the decision is new or different and requires judgment because there’s no requirement for the data and there’s no precedent to fall back on. If the information was formally requested and linked to the decision, it’s clear the information is missing and the decision will be delayed.  But if it’s a new situation and there’s no agreement on what information is required for the decision, it’s almost impossible to discern if the information is missing. In this situation, it comes down to trust in the decision-maker. If you trust the decision-maker and they say there’s information missing, then there’s information missing. If you trust the decision-maker and they say there’s no information missing, they should make the decision. But if you don’t trust the decision-maker, then all bets are off.

In general, waiting is bad.  And it’s helpful if you can recognize when projects are waiting. Waiting is especially bad went the delayed task is on the critical path because when the project is waiting on a task that’s on the critical path, there’s a day-for-day slip in the completion date.  Hint: it’s important to know which tasks and decisions are on the critical path.

Image credit — Tomasz Baranowski

Strategy, Tactics, and Action

When it comes to strategy and tactics, there are a lot of definitions, a lot of disagreement, and a whole lot of confusion. When is it strategy? When is it tactics? Which is more important? How do they inform each other?

Instead of definitions and disagreement, I want to start with agreement.  Everyone agrees that both strategy AND tactics are required. If you have one without the other, it’s just not the same. It’s like with shoes and socks: Without shoes, your feet get wet; without socks, you get blisters; and when you have both, things go a lot better.  Strategy and tactics work best when they’re done together.

The objective of strategy and tactics is to help everyone take the right action.  Done well, everyone from the board room to the trenches knows how to take action. In that way, here are some questions to ask to help decide if your strategy and tactics are actionable.

What will we do? This gets to the heart of it.  You’ve got to be able to make a list of things that will get done. Real things. Real actions. Don’t be fooled by babble like “We will provide customer value” and “Will grow the company by X%.” Providing customer value may be a good idea, but it’s not actionable. And growing the company by an arbitrary percentage is aspirational, but not actionable.

Why will we do it? This one helps people know what’s powering the work and helps them judge whether their actions are in line with that forcing function. Here’s a powerful answer: Competitors now have products and services that are better than ours, and we can’t have that. This answer conveys the importance of the work and helps everyone put the right amount of energy into their actions. [Note: this question can be asked before the first one.]

Who will do it? Here’s a rule: if no one is freed up to do the new work, the new work won’t get done. Make a list of the teams that will stop their existing projects before they can take action on the new work. Make a list of the new positions that are in the budget to support the strategy and tactics. Make a list of the new companies you’ll partner with. Make a list of all the incremental funding that has been put in the budget to help all the new people complete all these new actions.  If your lists are short or you can make any, you don’t have what it takes to get the work done.  You don’t have a strategy and you don’t have tactics.  You have an unfunded mandate.  Run away.

When will it be done? All actions must have completion dates.  The dates will be set without consideration of the work content, so they’ll be wrong.  Even still, you should have them. And once you have the dates, double all the task durations and push out the dates in your mind.  No need to change the schedule now (you can’t change it anyway) because it will get updated when the work doesn’t get done on time. Now, using your lists of incremental headcount and budget, assign the incremental resources to all the actions with completion dates. Look for actions and budgets as those are objective evidence of the unfunded mandate character of your strategy and tactics. And for actions without completion dates, disregard them because they can never be late.

How will we know it’s done? All actions must call out a definition of success (DOS) that defines when the action has been accomplished. Without a measurable DOS, no one is sure when they’re done so they’ll keep working until you stop them.  And you don’t want that.  You want them to know when they’re done so they can quickly move on to the next action without oversight. If there’s no time to create a DOS, the action isn’t all that important and neither is the completion date.

When the wheels fall off, and they will, how will we update the strategy and tactics? Strategy and tactics are forward-looking and looking forward is rife with uncertainty.  You’ll be wrong.  What actions will you take to see if everything is going as planned? What actions will you take when progress doesn’t meet the plan? What actions will you take when you learn your tactics aren’t working and your strategy needs a band-aid? What will you do? Who will do it? When will it be done? And how will you know it’s done?

Image credit: Eric Minbiole

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

28 Things I Learned the Hard Way

  • If you want to have an IoT (Internet of Things) program, you’ve got to connect your products.
  • If you want to build trust, give without getting.
  • If you need someone with experience in manufacturing automation, hire a pro.
  • If the engineering team wants to spend a year playing with a new technology, before the bell rings for recess ask them what solution they’ll provide and then go ask customers how much they’ll pay and how many they’ll buy.
  • If you don’t have the resources, you don’t have a project.
  • If you know how it will turn out, let someone else do it.
  • If you want to make a friend, help them.

 

  • If your products are not connected, you may think you have an IoT program, but you have something else.
  • If you don’t have trust, you have just what you earned.
  • If you hire a pro in manufacturing automation, listen to them.
  • If Marketing has an optimistic sales forecast for the yet-to-be-launched product, go ask customers how much they’ll pay and how many they’ll buy.
  • If you don’t have a project manager, you don’t have a project.
  • If you know how it will turn out, teach someone else how to do it.
  • If a friend needs help, help them.

 

  • If you want to connect your products at a rate faster than you sell them, connect the products you’ve already sold.
  • If you haven’t started building trust, you started too late.
  • If you want to pull in the delivery date for your new manufacturing automation, instead, tell your customers you’ve pushed out the launch date.
  • If the VP knows it’s a great idea, go ask customers how much they’ll pay and how many they’ll buy.
  • If you can’t commercialize, you don’t have a project.
  • If you know how it will turn out, do something else.
  • If a friend asks you twice for help, drop what you’re doing and help them immediately.

 

  • If you can’t figure out how to make money with IoT, it’s because you’re focusing on how to make money at the expense of delivering value to customers.
  • If you don’t have trust, you don’t have much
  • If you don’t like extreme lead times and exorbitant capital costs, manufacturing automation is not for you.
  • If the management team doesn’t like the idea, go ask customers how much they’ll pay and how many they’ll buy.
  • If you’re not willing to finish a project, you shouldn’t be willing to start.
  • If you know how it will turn out, it’s not innovation.
  • If you see a friend that needs help, help them ask you for help.

Image credit — openDemocracy

Two Questions to Grow Your Business

Two important questions to help you grow your business:

  1. Is the problem worth solving?
  2. When do you want to learn it’s not worth solving?

No one in your company can tell you if the problem is worth solving, not even the CEO. Only the customer can tell you if the problem is worth solving. If potential customers don’t think they have the problem you want to solve, they won’t pay you if you solve it. And if potential customers do have the problem but it’s not that important, they won’t pay you enough to make your solution profitable.

A problem is worth solving only when customers are willing to pay more than the cost of your solution.

Solving a problem requires a good team and the time and money to run the project. Project teams can be large and projects can run for months or years. And projects require budgets to buy the necessary supplies, tools, and infrastructure. In short, solving problems is expensive business.

It’s pretty clear that it’s far more profitable to learn a problem is not worth solving BEFORE incurring the expense to solve it.  But, that’s not what we do.  In a ready-fire-aim way, we solve the problem of our choosing and try to sell the solution.

If there’s one thing to learn, it’s how to verify the customer is willing to pay for your solution before incurring the cost to create it.

Image credit — Milos Milosevic

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

All-or-Nothing vs. One-in-a-Row

All-or-nothing thinking is exciting – we’ll launch a whole new product family all at once and take the market by storm! But it’s also dangerous – if we have one small hiccup, “all” turns into “nothing” in a heartbeat. When you take an all-or-nothing approach, it’s likely you’ll have far too little “all” and far too much “nothing”.

Instead of trying to realize the perfection of “all”, it’s far better to turn nothing into something.  Here’s the math for an all-or-nothing launch of product family launch consisting of four products, where each product will create $1 million in revenue and the probability of launching each product is 0.5 (or 50%).

1 product x $1 million x 0.5 = $500K

2 products x $1 million x 0.5 x 0.5 = $500K

3 products x $1 million x 0.5 x 0.5 x 0.5 = $375K

4 products x $1 million x 0.5 x 0.5 x 0.5 x 0.5 = $250K

In the all-or-nothing scheme, the launch of each product is contingent on all the others.  And if the probability of each launch is 0.5, the launch of the whole product family is like a chain of four links, where each link has a 50% chance of breaking.  When a single link of a chain breaks, there’s no chain. And it’s the same with an all-or-nothing launch – if a single product isn’t ready for launch, there are no product launches.

But the math is worse than that. Assume there’s new technology in all the products and there are five new failure modes that must be overcome.  With all-or-nothing, if a single failure mode of a single product is a problem, there are no launches.

But the math is even more deadly than that. If there are four use models (customer segments that use the product differently) and only one of those use models creates a problem with one of the twenty failure modes (five failure modes times four products) there can be no launches. In that way, if 25% of the customers have one problem with a single failure mode, there are can be no launches.  Taken to an extreme, if one customer has one problem with one product, there can be no launches.

The problem with all-or-nothing is there’s no partial credit – you either launch four products or you launch none. Instead of all-or-nothing, think “secure the launch”. What must we do to secure the launch of a single product? And once that one’s launched, the money starts to flow.  And once we launch the first one, what must we do to secure the launch the second? (More money flows.) And, once we launch the third one…. you get the picture. Don’t try to launch four at once, launch a single product four times in a row. Instead of all-or-nothing, think one-in-a-row, where revenue is achieved after each launch of a single launch.

And there’s another benefit to launching one at a time. The second launch is informed by learning from the first launch.  And the third is informed by the first two. With one-in-a-row, the team gets smarter and each launch gets better.

Where all-or-nothing is glamorous, one-in-a-row is achievable. Where all-or-nothing is exciting, one-in-row is achievable. And where all-or-nothing is highly improbable, one-in-a-row is highly profitable.

Image credit – Mel

Mike Shipulski Mike Shipulski
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