Archive for May, 2020

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

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

Mike Shipulski Mike Shipulski
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