Posts Tagged ‘Trust-based approach’

Before you can make a million, you’ve got to make the first one.

With process improvement, the existing process is refined over time.  With innovation, the work is new. You can’t improve a process that does not yet exist.  Process creation, yes.  Process improvement, no.

Standard work, where the sequence of process steps has proven successful, is a pillar of the manufacturing mindset.  In manufacturing, if you’re not following standard work, you’re not doing it right.  But with innovation, when the work is done for the first time, there can be no standard work. In that way, if you’re following the standard work paradigm, you are not doing innovation.

In a well-established manufacturing process, problems are tightly scoped and constrained. There can be several ways to solve it and one of the ways is usually better than the others. Teams are asked to solve the problem three or four ways and explain the rationale for choosing one solution over the other. With innovation it’s different.  There may not be a solution, never mind three.  With innovation, it’s one-in-a-row solution.  And the real problem is to decide which problem to solve.  If you’re asked to use Fishbone diagrams to solve the problem three or four ways, you’re not doing innovation. Solve it one way, show a potential customer and decide what to do next.

With manufacturing and product development, it’s all about Gantt charts and hitting dates.  The tasks have a natural precedence and all of them have been done before.  There are branches in the plan, but behind them is clear if-then logic.  With innovation, the first task is well-defined.  And the second task – it depends on the outcome of the first.  And completion dates?  No way. If you can predict the completion date, you’re not doing innovation.  And if you’re asked for a fully built-out Gantt chart, you’re in trouble because that’s a misguided request.

Systems in manufacturing can be complicated, with lots of moving parts.  And the problems can be complicated. But given enough time, the experts can methodically figure it out. But with innovation, the systems can be complex, meaning they are not predictable.  Sometimes parts of the system interact strongly with other parts and sometimes they don’t interact at all. And it’s not that they do one or the other, it’s that they do both.  It’s like they have a will of their own, and, sometimes, they have a bad attitude. And if it’s a new system, even the basic rules of engagement are unknown, never mind the changing strength of the interactions.  And if the system is incomplete and you don’t know it, linear thinking of the experts can’t solve it.  If you’re using linear problem solving techniques, you’re not doing innovation.

Manufacturing is about making one thing a million times. Innovation is about choosing among the million possibilities and making one-in-a-row, and then, after the bugs are worked out, making the new thing a million times.  But one-in-a-row must come first.  If you can’t do it once, you can’t do it a million times, even with process improvement, standard work, Gantt charts and Fishbone diagrams.

Image credit jacinta lluch valero

Put Yourself Out There

If you put yourself out there and it doesn’t go as you expect, don’t get down.  All you are responsible for is your effort and your intentions.  You’re not responsible for the outcome. Intentions don’t drive outcomes. In fact, be prepared for your work to bring out the opposite of your intentions.

If you put yourself out there and it goes poorly, don’t judge yourself negatively. Sometimes, things go that way. It’s not a problem, unless you make it one. So, don’t make it one. Just put yourself out there.

The clothes don’t get clean without an agitator. Hold onto that, and put yourself out there.

How do you know you’ve put yourself out there? The status quo is angry with you. The people in power want you to stop. The organization tries to scuttle your work. And the people that know the truth take you out to lunch.

If you put yourself out there and your message is met with 100% agreement, you didn’t put yourself out there. You may have stepped outside the lines, but you didn’t put your whole self on the line. You didn’t splash everyone with a full belly flop. There wasn’t enough sting and your belly isn’t red enough.

You won’t get it right, but put yourself out there anyway. You can’t predict the outcome, but take a run at the status quo. You don’t know how it will turn out, but that’s not a reason to hold back, it’s objective evidence it’s time to take a run at it.

Don’t put yourself out there because it’s the right thing to do, put yourself out there because you have an emotional connection.  Put yourself out there because it’s time to put yourself out there. Put yourself out there because you don’t know what else to do.

Be prepared to be misunderstood, but put yourself out there. Expect to be laughed at and talked about behind your back, but put yourself out there. And expect there will be one or two people who will have your back.  You know who they are.

No sense holding back. Get over the fear and put yourself out there.

The only one holding you back is you.

Image credit – Mark Bonica

Dismantle the business model.

When companies want to innovate, there are three things they can change – products, services and business models. Products are usually the first, second and third priorities, services, though they have a tighter connection with customer and are more lasting and powerful, sadly, are fourth priority.  And business models are the superset and the most powerful of all, yet, as a source of innovation, are largely off limits.

It’s easy to improve products. Measure goodness using a standard test protocol, figure out what drives performance and improve it. Create the hard data, quantify the incremental performance and sell the difference.  A straightforward method to sell more – if you liked the last one, you’re going to like this one. But this is fleeting. Just as you are reverse engineering the competitors’ products, they’re doing it to you. Any incremental difference will be swallowed up by their next product. The half-life of your advantage is measured in months.

It’s easy for companies to run innovation projects to improve product performance because it’s easy to quantify the improvement and because we think customers are transactional. Truth is, customers are emotional, not rational. People don’t buy performance, they buy the story they create for themselves.

Innovating on services is more difficult because, unlike a product, it’s not a physical thing. You can’t touch it, smell it or taste it.  Some say you can measure a service, but you can’t. You can measure its footprints in the sand, but you can’t measure it directly. All the click data in the world won’t get you there because clicks, as measured, don’t capture intent – an unintentional click on the wrong image counts the same a premeditated click on the right one. Sure, you can count clicks, but if you can’t count the why’s, you don’t have causation. And, sure, you can measure customer satisfaction with an online survey, but the closest you can get is correlation and that’s not good enough.  It’s causation or bust.  You’ve got to figure out WHY they like your services. (Hint – it’s the people who interface directly with your customers and the latitude you give them to advocate on the customers’ behalf.)

Where services are difficult to innovate, the business model is almost impossible. No one is quite sure what the business model actually is an in-the-trenches-way, but they know it’s been responsible for the success of the company, and they don’t want to change it. Ultimately, if you want to innovate on the business model, you’ve got to know what it is, but before you spend the time and energy to define it, it’s best to figure out if it needs changing.  The question – what does it look like when the business model is out of gas?

If you do what you did last time and you get less in return, the business model is out of gas.

Successful models are limiting. Just like with the Prime Directive, where Captain Kirk could do anything he wanted as long as he didn’t interfere with the internal development of alien civilizations, do anything you want with the business model as long as you don’t change it. And that’s why you need external help to formally define the business model and experiment with it. The resource should understand your business first hand, yet be outside the chain of command so they can say the sacrilegious things that violate the Prime Directive without being fired.  For good candidates, look to trusted customers and suppliers.

To define the business model, use a simple block diagram (one page) where blocks are labelled with simple nouns and arrows are labelled with simple verbs. Start with a single block on the right of the page labelled “Customer” and draw a single arrow pointing to the block and label it.  Continue until you’ve defined the business model.  (Note – maximum number of blocks is 12.)  You’ll be surprised with the difficulty of the process.

After there’s consensus on the business model, the next step is to figure out how the environment changed around it and to identify and test the preferred evolutionary paths. But that’s for another time.

Image credit – Steven Depolo

Full Circle Innovation

It’s not enough to sell things to customers, because selling things is transactional and, over time, transactional selling deteriorates into selling on price. And selling on price is a race to the bottom.

Sales must move from transactional to relational, where people in the sales organization become trusted advisers and then something altogether deeper. At this deeper level of development, the sales people know the business as well as the customer, know where the customer wants to go and provide unique perspective and thoughtful insight.  That’s quite a thing for sales, but it’s not enough.  Sales must become the conduit that brings the entire company closer to the customer and their their work.

When the customer is trying to figure out what’s next, sales brings in a team of marketing, R&D and manufacturing to triangulate on the future.  The objective is to develop deep understanding of the customer’s world.  The understanding must go deeper than the what’s.  The learning must scrape bottom and get right down to the bedrock why’s.

To get to bedrock, marketing leads learning sessions with the customer.  And it all starts by understanding the work.  What does the customer do? Why is it done that way? What are the most important processes? How did they evolve? Why do they flow the way they do? These aren’t high-level questions, they are low-level, specific questions, done in front of the actual work.

The mantra – Go to the work.

When the learning sessions are done well, marketing includes experts in manufacturing and R&D.  Manufacturing brings their expertise in understanding process and R&D brings their expertise in products and technologies.  And to understand the work the deepest way, the tool of choice is the Value Stream Map (VSM).

Cross-organization teams are formed (customer, sales, marketing, manufacturing, and R&D) and are sent out to create Value Steam Maps of the most important processes.  (Each team is supported by a VSM expert.)  Once the maps are made, all the teams come back together to review the them and identify the fundamental constraints and how to overcome them.  The solutions are not limited to new product offerings, rather the solutions could be training, process changes, policy changes, organizational changes or business model changes.

Not all the problems are solved in the moment.  After the low hanging fruit is picked, the real work begins.  After returning home, marketing and R&D work together to formulate emergent needs and create new ways to meet them.  The tool of choice is the IBE (Innovation Burst Event).

To prepare for the IBE, marketing and R&D formalize emergent needs and create Design Challenges to focus the IBE teams.  Solving the Design Challenges breaks the conflicts creates novel solutions that meet the unmet needs.  In this way, the IBE is a pull process – customer needs create the pull for a solution.

The IBE is a one or two-day event where teams solve the Design Challenges by building conceptual prototypes (thinking prototypes).  Then, they vote on the most interesting concepts and create a build plan (who, what, when).  The objective of the build plan is to create a Diabolically Simple Prototype (DSP), a functional prototype that demonstrates the new functionality. What makes it diabolical is quick build time.  At the end of the IBE is a report out of the build plan to the leader who can allocate the resources to execute it.

In a closed-loop way, once the DSP is built, sales arranges another visit to the customer to demonstrate the new solution.  And because the prototype designed to fulfill the validated customer need, by definition, the prototype will be valuable to the customer.

This full circle process has several novel elements, but the magic is in the framework that brings everyone together.  With the process, two companies can work together effectively to achieve shared business objectives.  And, because the process brings together multiple functions and their unique perspectives, the solutions are well-thought-out and grounded in the diversity of the collective.

Image credit – Gerry Machen

Why not start?

startIt doesn’t matter where the journey ends, as long as it starts.

After starting, don’t fixate on the destination, focus on how you get there.

A long project doesn’t get shorter until you start. Neither does a short one.

Start under the radar.

When a project is too big to start, tear off a bite-sized chunk, chew it and swallow.

Sometimes slower is faster, but who cares. You’ve started.

If you can’t start, help some else start. You’ll both be better for it.

Fear blocks starting. But if you’re going to be afraid, you might as well start.

The only way to guarantee failure is to fail to start.

After you start, tell your best friend.

When starting, be clear on your location and less clear on the destination.

You either start or you don’t. With starting, there’s no partial credit.

Don’t start unless you’re going to finish.

Starting is scary, right up until you start.

The best way to free up time to start a good project is to stop a bad one.

Sometimes it’s best to stop starting and start finishing.

You don’t need permission to start. You just need to start.

Start small. If that doesn’t work, start smaller.

In the end, starting starts with starting.

And if you don’t start you can’t finish.

 

Image credit — jakeandlindsay

Connection Before Numbers

thankfulCompound annual growth, profit margin, Key Business Indicators, capability indices, defects per million opportunity, confidence intervals, statistical significance, regression coefficients, temperature, pressure, force, stress, velocity, volume, inches, meters, decibels.  The numbers are supposed to tell the story.  But they don’t.

There’s never enough data to see the whole picture. But, even when the discussion is limited to topics covered by the data, people don’t see things the same way.  And even if the numbers were 100% complete, there would be no common interpretation.  And if there was a common interpretation there’d be a range of diverging opinions on how to move forward.  Even with perfect numbers, there is divergence among people.

Numbers are numb. They don’t have meaning until we attach it. And, as entities that attach meaning, we think do it rationally.  But we use past history and fear to assign meaning.  We are not rational, we’re emotional. Even the most rigorous scientist has an obsessive nature, infatuation and deep fascination.  Even when swimming in a sea of data, we’re emotional, and, therefor, irrational.

Excitement, happiness, joy, anxiety, sadness, fear, collaboration, cooperation, competition, respect, disrespect, kindness, love. We live and work in a collection of people systems where emotion carries the day. Emotion and irrationality are not bad, it’s the way it is.  We’re human. And, I’m thankful for it.

But with emotion and irrationality comes connection as part of the matched set.  If you want one, you have to buy all three. And I want connection. Connection brings out the best in people – their passion, energy and love.  When magical things happen at work, connection is responsible. And when magic happens at home, it’s connection.

I’m thankful I have strong connections.

Image credit – Irudayam

Dangerous Expectations

buttercupExpectations result from mental models and wants. When you have a mental model of a system and you want the system to behave in a way that fits your mental model, that’s an expectation.  And when you want the system to behave differently than your mental model, that’s also an expectation.  When the system matches your wants, the world is good.  And when your wants are out of line with the system, the world is not so good.

Speculation is not expectation. Speculation happens when you propose, based on your mental model, how the system will behave. With speculation, there’s no attachment to the result, no wanting it to be one way or another. There’s just watching and learning.  If the system confirms your mental model, the applicability of the model is reinforced (within this narrow context.) And when the system tramples your mental model, you change your mental model.  No attachment, no stress, no whining, no self-judgement.

When doing work that’s new, system response is unknown. Whether the system will be exercised in a new way or it’s an altogether new system, metal models are young and untested.  When it’s the first time, speculation is the way to go. Come up with your best mental model, run the experiment and record the results.  After sitting in data, refine your mental model and repeat.   If your mental model doesn’t fit the system, don’t judge yourself negatively, don’t hold yourself back, don’t shy away.  Refine your mental model and build-test-learn as fast as you can.  And if your mental model fits the system, don’t judge yourself in a positive way.  This was your first test and you don’t understand the system fully.  Refine your model and test for a deeper understanding.  [Note – systems have been known to temporarily conform to mental models to obfuscate their true character.]

When doing work that’s new, expectation gets in the way. If you expect your models to be right and they’re not, you learning rate is slower than your expectations.  That’s not such a big deal on its own, but the rippling self-judgement can be crippling. Your emotional state becomes fragile and it’s difficult to keep pushing through the work. You doubt yourself and your abilities; you won’t put yourself out there; and you won’t propose radical mental models for fear of looking like you don’t know what you’re doing.  You won’t run the right experiments and you never the understand the fundamental character of the system. You block your own learning.  If you expect your models won’t to fit the system, you block your learning from the start.  Sometimes your lack of confidence blocks you from even trying. [Note – not trying is the only way to guarantee you won’t learn.]

Within the domain of experiments, mental models and generic systems, it’s relatively easy to see the wisdom of speculations and the perils of expectations, where wanting leads to judging and judging leads to self-blocking.  But it’s not so easy to see in the domain of life where experiments are replaced with personal interactions and generic systems are replaced with everyday situations and mental models are ever-present.  But in both domains the rules and consequences are the same.

Just as in the lab, in day-to-day life expectations are dangerous.

Image credit – Dermot  O’Halloran

 

 

Moving Away from Best Practices

rotten-appleIf the work is new, there is no best practice.

When you read the best books you’ll understand what worked in situations that are different than yours.  When you read the case studies you’ll understand how one company succeeded in a way that won’t work in yours.  The best practices in the literature worked in a different situation, in a different time and a under different cultural framework.  They won’t work best for you.

Just because a practice worked last time doesn’t mean it’s a best practice this time.  More strongly, just because it worked last time doesn’t mean it was best last time. There may have been a better way.

When a problem has high urgency it should be solved in a fast way, but if urgency is low, the problem should be solved in an efficient way. Which way is best? If the consequences of getting it wrong are severe, analyses and parallel solutions are skillful, but if it’s not terribly important to get it right, a lower cost way is better.  But is either the best way?

The best practices found in books are usually described a high level of abstraction using action words, block diagrams and arrows.  And when described at such a high level, they’re not actionable.  You may know all the major steps, but you won’t know how each step should be done.  And if the detail is provided, the context of your situation is different and the prescriptive steps don’t apply.

Instead of best practices, think effective practices.  Effective because the people doing the work can do it effectively.  Effective because it fits with the capability and capacity of the people doing the work.  Effective because it meshes with existing processes and projects.  Effective because it fits with your budget, timeline and risk profile.  Effective because it fits with your company values.

Because all our systems are people systems, there are no best practices.

image credit — johnwayne2006

If you believe…

walking to his first day of school

If you believe the work is meaningful, best effort flows from every pore.

If you believe in yourself, positivity carries the day.

If you believe the work will take twelve weeks, you won’t get it done in a day-and-a-half.

If you believe in yourself, when big problems find you, you run them to ground.

If you believe people have good intensions, there are no arguments, there is only progress.

If you believe in yourself, you are immune to criticism and negative self-talk.

If you believe people care about you, you’re never lonesome.

If you believe in your team, there’s always a way.

If you believe in yourself, people believe in you.  And like compound interest, the cycle builds on itself.

 

Image credit – Joe Shlabotnik

 

Established companies must be startups, and vice versa.

oppositesFor established companies, when times are good, it’s not the right time to try something new – the resources are there but the motivation is not; and when times are tough it’s also the wrong time to try something new – the motivation is there but the breathing room is not.  There are an infinite number of scenarios, but for the established company it’s never a good time to try something new.

For startup companies, when times are good, it’s the right time to try something new – the resources are there and so is the motivation; and when times are tough it’s also the right time to try something new – the motivation is there and breathing room is a sign of weakness.  Again, the scenarios are infinite, but for the startup is always a good time to try something new.

But this is not a binary world. To create new markets and new customers, established companies must be a little bit startup, and to scale, startups must ultimately be a little bit established. This ambidextrous company is good on paper, but in the trenches it gets challenging. (Read Ralph Ohr for an expert treatment.)  The establishment regime never wants to do anything new and the startup regime always wants to.  There’s no middle ground – both factions judge each other through jaded lenses of ROI and learning rate and mutual misunderstanding carries the day.  Trouble is, all companies need both – established companies need new markets and startups need to scale. But it’s more complicated than that.

As a company matures the balance of power should move from startup to established.  But this tricky because the one thing power doesn’t like to do is move from one camp to another. This is the reason for the “perpetual startup” and this is why it’s difficult to scale.  As the established company gets long in the tooth the balance of power should move from the establishment to the startup.  But, again, power doesn’t like to change teams, and established companies squelch their fledgling startup work. But it’s more complicated, still.

The competition is ever-improving, the economy is ever-changing and the planet is ever-warming.  New technologies come on-line, and new business models test the waters. Some work, some don’t.  Huge companies buy startups just to snuff them out and established companies go away.  The environment is ever-changing on all fronts.  And the impermanence pushes and pulls on the pendulum of power dynamics.

All companies want predictability, but they’ll never have it.  All growth models are built on rearward-looking fundamentals and forward-looking conjecture.  Companies will always have the comfort of their invalid models, but will never the predictability they so desperately want.  Instead of predictability, companies would be better served by a strong sense of how it wants to go about its business and overpowering genetics of adaptability.

For a strong definition of how to go about business, a simple declaration does nicely. “We want to spend 80% of our resources on established-company work and 20% on startup-company work.” (Or 90-10, or 95-5.)  And each quarter, the company measures itself against its charter, and small changes are made to keep things on track.  Unless, of course, if the environment changes or the business model runs out of gas.  And then the company adapts.  It changes its approach and it’s projects to achieve its declared 80-20 charter, or, changes the charter altogether.

A strong charter and adaptability don’t seem like good partners, but they are.  The charter brings focus and adaptability brings the change necessary to survive in an every-changing environment.  It’s not easy, but it’s effective.  As long as you have the right leaders.

Image credit – Rick Abraham1

People Are The Best Investment

BuddhaAnything that happens happens because of people, and anything that doesn’t happen doesn’t happen because of people.  Technology doesn’t create itself, products don’t launch themselves, companies don’t build themselves and trust doesn’t grow on its own.  Any kind of work, any kind of service, any kind of organizing – it’s all done by people.

The productivity/quality movement has been good for factories – parts move in a repeatable flow and they’re processed in repeatable ways by machines that chunk out repeatable output.  Design the process, control the inputs and turn the crank. Invest in the best machines and to do the preventative maintenance to keep them in tip-top shape.  Just follow the preventive maintenance (PM) schedule and you’ll be fine.  But when the productivity/quality movement over-extended into the people domain, things don’t go as well.

People aren’t machines, and their work product is not cookie-cutter parts.  And, there’s no standard PM schedule for people. We all know this, but we behave like people are machines – we design their work process, train them on it and measure their output. But machines are iron-based entities that don’t have consciousness and people are carbon-based beings with full consciousness.  The best machines do what their told, but the best people tell you what to do.  Machines and people are fundamentally different, but how we run them is markedly similar.

Where machines need oil, people need empathy. And for empathy you need vulnerability and for that you need trust. But there’s no standard PM schedule for trust.  There’s no flowchart or troubleshooting protocol for helping people.  What work do you give them? It depends. When do you touch base and when do you leave them alone? It depends. How much responsibility do you give them? It depends.  With machines it’s follow the PM schedule and with people – it depends.

Where machines wear out, people develop and grow. And to grow people you need to see them as they are and meet them where they are. And to do that you’ve got to see yourself as you are.  You can’t give people what they need if you add to the drama with your reactivity and you can’t discern their suffering from your projections if you’re not grounded. How much time do you spend each day to learn to dampen your reactivity?  How much time do you spend to slow your monkey mind so you can see your projections?

With machines it’s control the inputs and get what you got last time.  With people it’s maybe; it depends; don’t worry about how it will go; and why don’t you try? Growing people is much more difficult than keeping machines running smoothly.  But, there is nothing more fulfilling than helping people grow into something they couldn’t imagine.

Image credit – Benjamin Balazs

 

 

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Mike Shipulski Mike Shipulski
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