A Race To The Top

We all want to increase sales. But to do do this, our products must offer a better value proposition – they must increase the goodness-to-cost ratio. And to do this we increase goodness and decrease cost. (No argument here – this is how everyone does it.) When new technologies mature, we design them in to increase goodness and change manufacturing and materials to reduce cost. Then, we sell. This is the proven cowpath. But there’s a problem.

The problem is everyone is thinking this way. You’re watching/developing the same technologies as your competitors; improving the same manufacturing processes; and trying the same materials. On its own, this a recipe for hyper-competition. But with the sinking economy driving more focus on fewer consumers, price is the differentiator. With this cowpath it’s a race to the bottom.

But there’s a better way where there are no competitors and millions (maybe billions) of untapped consumers clamoring for new products. Yes, it’s based on the time-tested method of improving the goodness-to-cost ratio, but there’s a twist – instead of more it’s less. The ratio is increased with less goodness and far less cost. Since no one in their right mind will take this less-with-far-less approach, there is no competition – it’s just you. And because you will provide less goodness, you must sell where others don’t – into the untapped sea of yet-to-be consumers of developing world. With less-with-far-less it’s a race to the top.

Technology is the most important element of less-with-far-less. By reducing some goodness requirements and dropping others all together, immature technologies become viable.  You can incorporate fledgeling technologies sooner and commercialize products with their unreasonably large goodness-to-cost ratios. The trick – think less output and narrow-banded goodness.

Immature technologies have improved goodness-to-cost ratios (that’s why we like them), but their output is low. But when a product is designed to require less output, previously immature technologies become viable. Sure, there’s a little less goodness, but the cost structure is far less – just right for the developing world.

Immature technologies are more efficient and smaller, but their operating range is small. But when a product is designed to work within a narrow band of goodness, technologies become viable sooner. Yes, the product does less, but the cost structure is far less – a winning combination for the developing world.

Less-with-far-less makes the product fit the technology – that’s not the hard part. And less-with-far-less makes the product fit the developing world – not hard. In our all-you-can-eat world, where more is seen as the only way, we can’t comprehend how less can win the race to the top. The hard part is less.

Less-with-far-less is not limited by technology or market – it’s limited because we can’t see less as more.

A Fraternity of Team Players

It’s easy to get caught up in what others think. (I fall into that trap myself.) And it’s often unclear when it happens. But what is clear: it’s not good for anyone.

It’s hard to be authentic, especially with the Fraternity of Team Players running the show, because, as you know, to become a member their bylaws demand you take their secret oath:

I [state your name] do solemnly swear to agree with everyone, even if I think differently. And in the name of groupthink, I will bury my original ideas so we can all get along. And when stupid decisions are made, I will do my best to overlook fundamentals and go along for the ride. And if I cannot hold my tongue, I pledge to l leave the meeting lest I utter something that makes sense. And above all, in order to preserve our founding fathers’ externally-validated sense of self, I will feign ignorance and salute consensus.

It’s not okay that the fraternity requires you check your self at the door. We need to redefine what it means to be a team player. We need to rewrite the bylaws.

I want to propose a new oath:

I [state your name] do solemnly swear to think for myself at all costs. And I swear to respect the thoughts and feelings of others, and learn through disagreement. I pledge to explain myself clearly, and back up my thoughts with data. I pledge to stand up to the loudest voice and quiet it with rational, thoughtful discussion. I vow to bring my whole self to all that I do, and to give my unique perspective so we can better see things as they are. And above all, I vow to be true to myself.

Before you’re true to your company, be true to yourself. It’s best for you, and them.

Separation of church and state, yes; separation of team player and self, no.

Less-With-Far-Less for the Developing World

The stalled world economy will make growth difficult, and companies are digging in for the long haul, getting ready to do more of what they do best – add more function and features, sell more into existing markets, and sell more to existing customers. More of the same, but better. But growth will not come easy with more-on-more thinking. It will be more-on-more trench warfare – ugly hand-to-hand combat with little ground gained. It’s time for another way. It’s time for less. It’s time to create new markets with less-with-far-less thinking.

Real growth will come from markets and consumers that don’t exist. Real (and big) growth will come from the developing world. They’re not buying now, but they will. They will when product are developed that fit them. But here’s the kicker – products for the developed world cannot be twisted and tweaked to fit. Your products must be re-imagined.

The fundamentals are different in the developing world. Three important ones are – ability to pay, population density, and literacy/skill.

The most important fundamental is the developing world’s ability to pay. They will buy, but to buy products must cost 10 to 100 times less. (No typo here – 10 to 100 times less.) Traditional cost reduction approaches such as Design for Manufacturing and Assembly (DFMA) won’t cut it – their 50% cost reductions are not even close. Reinvention is needed; radical innovation is needed; fundamental innovation is needed. Less-with-far-less thinking is needed.

To achieve 10-100X cost reductions, the product must do less and do it far more efficiency (with far less). Product functionality must be decimated – ripped off the bone until only bone remains. The product must do only one thing. Not two – one. The product must be stripped to its essence, and new technology must be developed to radically improve efficiency of delivering its essence. Products for the developing world will require higher levels of technology than products for the developed world.

Radical narrowing of functionality will make viable the smaller, immature, more efficient technologies. Infant technologies usually have lower output and less breadth, but that’s just what’s needed – narrow, deep, and less. Less-with-far-less.

In the developing world, population density is low. People are spread out, and rural is the norm. And it’s not developed world rural, it’s three-day-hike rural. In the developing world, people don’t go to products; products go to people. If it’s not portable, it won’t sell. And developing world portable does not mean wheels – it means backpack. Your products must fit in a backpack and must be light enough to carry in one.

Big, stationary, expensive equipment is not exempt. It also must fit in a backpack. And this cannot be achieved with twist-and-bend engineering. To fit in a backpack, the product must be stripped naked and new technology must be developed to radically improve efficiency. This requires radical narrowing, radical reimagining, and radical innovation. It requires less-with-far-less thinking. (And if it doesn’t run on batteries, it should at least have battery backup to deal with rolling blackouts.)

People in the developing world are intelligent, but most cannot read well and have little experience with developed world products. Where the developed world’s solution is picture-based installation instructions, less-with-far-less products for the developing world demand no instructions. For the developing world, the instruction manual is the on button. And this requires serious technology – software algorithms fed by low cost sensors. And the only way it’s possible is by distilling the product to its essence. Algorithms, yes, but algorithms to do only one thing very well. Less-with-far-less.

The developed world makes products with output that requires judgment – multi-colored graphical output that lets the user decide if things went well. Products for the developing world must have binary output – red/green, beep/no-beep. Less-with-far-less. But again, this seemingly lower-level functionality (a green light versus a digital display) actually requires more technology. The product must interpret results and decide if it’s good – much harder than a sexy graphical output that requires interpretation and judgement.

Creating products for the developing world requires different thinking. Instead of adding more functions and features, it’s about creating new technologies that do one thing very well (and nothing more) and do it with super efficiency. Products for the developing world require higher technologies than those for the developed world. And done well, the developed world will buy them. But the crazy thing is, the less-with-far-less products that will be a hit in the developing world will boomerang back and be an even bigger hit in the developed world.

You might be a superhero if…

You might be a superhero if…

  • Using just dirt, rocks, and sticks, you can bring to life a product that makes life better for society.
  • Using just your mind, you can radically simplify the factory by changing the product itself.
  • Using your analytical skills, you can increase product function in ways that reinvent your industry.
  • Using your knowledge of physics, you can solve a longstanding manufacturing problem by making a product insensitive to variation.
  • Using your knowledge of Design for Manufacturing and Assembly, you can reduce product cost by 50%.
  • Using your knowledge of materials, you can eliminate a fundamental factory bottleneck by changing what the product is made from.
  • Using your curiosity and creativity, you can invent and commercialize a product that creates a new industry.
  • Using your superpowers, you think you can fix a country’s economy one company at a time.

 

How To Accelerate Engineers Into Social Media

Engineers fear social media, but shouldn’t. Our fear comes from lack of knowledge around information flow. Because we don’t understand how information flow works, we stay away. But our fear is misplaced – with social media information flow is controllable.

For engineers, one-way communication is the best way to start. Engineers should turn on the information tap and let information flow to them. Let the learning begin.

At first, stay away from FaceBook – it’s the most social (non-work feel), least structured, and most difficult to understand – at least to me.

To start, I suggest LinkedIn – it’s the least social (most work-like) and highly controllable. It’s simple to start – create an account, populate your “resume stuff” (as little as you like) and add some connections (people you know and trust). You now have a professional network who can see your resume stuff and they can see yours. But no one else can, unless you let them. Now the fun part – find and join a working group in your interest area. A working group is group of like-minded people who create work-related discussions on a specific topic. Mine is called Systematic DFMA Deployment. You can search for a group, join (some require permission from the organizer), and start reading the discussions. The focused nature of the groups is comforting and you can read discussions without sharing any personal information. To start two-way communication, you can comment on a discussion.

After LinkedIn, engineers should try Twitter. Tweets (sounds funny, doesn’t it?) are sentences (text only) that are limited to 140 characters. With Twitter, one-way communication is the way to start – no need to share information. Just create an account and you’re ready to learn. With LinkedIn it’s about working groups, and with Twitter it’s about hashtags (#). Hashtags create focus with Twitter and make it searchable. For example, if the tweet creator uses  #DFMA in the sentences, you can find it.  Search for #DFMA and you’ll find tweets (sub-140 character sentences) related to design for manufacturing and assembly. When you find a hashtag of interest, monitor those tweets. (You can automate hashtag searches – HootSuite – but that’s for later). And when you find someone who consistently creates great content, you can follow them. Once followed, all their tweets are sent to your Twitter account (Twitter feed). To start two-way communication you can retweet (resend a tweet you like), send a direct message to someone (like a short email), or create your own tweet.

Twitter’s format comforts me – short, dense bursts of sentences and no more. Long tweets are not possible. But a tweet can contain a link to a website which points to a specific page on the web. To me it’s a great combination – short sentences that precisely point to the web.

With engineers and social media, the goal is to converge on collaboration. Ultimately, engineers move from one-way communication to two-way communication, and then to collaboration. Collaboration on LinkedIn and Twitter allows engineers to learn from (and interact with) the world’s best subject matter experts. Let me say that again – with LinkedIn and Twitter, engineers get the latest technical data, analyses, and tools from the best people in the world. And it’s all for free.

For engineers, social and media are the wrong words. For engineers, the right words are – controlled, focused, work-related information flow. And when engineers get comfortable with information flow, they’ll converge on collaboration. And with collaboration, engineers will learn from each other, help each other, innovate and, even, create personal relationships with each other.

Companies still look at social media as a waste of work time, and that’s especially true when it comes to their engineers. But that’s old thinking.  More bluntly, that’s dangerous thinking. When their engineers use social media, companies will develop better products and technologies and commercialize them faster.

Plain and simple, companies that accelerate their engineers into social media will win.

 

Celestial Work and Gravitational Pull

Meeting agendas are a good idea. They make clear what will happen and they’re time bound. (At least good ones.) They look forward in time and shape what will happen.

Meeting agendas are created by the organizer so others follow. It’s strange to think about, but from thin air, the organizer congers magic words on a page that shape direction. The agenda sets the agenda and it’s followed. But in truth, agendas are followed because we choose to follow.

But I want to introduce another schema – the work sets the agenda. In this parallel universe, we don’t choose to follow an agenda; we choose to do work so powerful it sets the agenda – work so dense its gravitational field pulls the organization toward it.

I can hear the moans and groans – we can’t choose the work we do. But you can – if your work is good enough. If your work is brighter than the sun, it’s undeniable and, like the sun, cannot be ignored.

I can hear the next round of moans – we can’t do work that good. But you can – if you think you can and you try. (The only way to guarantee you can’t is not to try.)

And the last round of groans – we’ll get fired if we fail. If you’ll get fired for trying to reinvent your universe, you’re working at the wrong place anyway.

If you like to follow agendas, follow them. But if you don’t, do celestial work, and set them.

Climbing The Branches Of The Problem Tree

The problem tree is big, old, and rugged with a fully developed branch network and the deepest roots. And nestled in its crown, set directly over the trunk, is the hidden tree house where the problem solvers play.

The problem tree has a left and right, with its why branches to the right and why-nots to the left. To the right, the biggest why limbs grow from the trunk then split into a series of smaller why branches which terminate at the why leaves. It’s the same on the left – big why-not limbs, why-not branches, why-not leaves.

To start their game, the problem solvers first agree on the biggest why limbs – the main reasons why to solve the problem. Once labeled, the team asks why again, and builds out the why side of the canopy – narrowing as they go. They continue their hierarchical why mapping until they get to the why leaves – the lowest-level whys. The last part is most tenuous because as the branches get smaller they can’t hold the weight and they sway in the political wind. But as the organization watches impatiently, the problem solvers know they must hang onto the smallest branches and stretch themselves hard to reach the leaves.

Once the whys are mapped the solvers know why they must solve the problem. They know who wants it solved (the biggest branches can have their own sponsor) and how the whys (and their sponsors) compliment or compete. And where the rubber meets the road (leaf level), they know why it must be solved – think manufacturing floor. Like a spider web, the why network sticks the solvers to the right problem.

Novice solvers think their ready to solve, but the seasoned climbers know it’s time swing on the wild side. It’s time to climb where few dare – the politically charged left side – the why-nots. Slowly, carefully, the climbers step from the safety of their tree house and explore why the company cannot, has not, or may not want to solve the problem. There are usually three big why-not branches – constraints, capability, and culture.

When the solvers shimmy out on the constraint branch, they usually find the smaller no-time-to-solve-it branch, with its leaves of – existing operating plans, product launches, other big problems, unfilled open positions, and reduced headcount. Though real, these branches are tough to talk about because the organization does not want to hear about them. And, sometimes, for all their dangerous climbing and shimmying, the solvers are accused of not being team players.

Their climb on the capability branch is challenging, but not for its complexity. There’s usually one branch – we don’t know how to do it, with a couple leaves – we’ve never done it before and we don’t do it that way. The capability branch is difficult because it causes the organization to overtly admit a fundamental gap. Also, it threatens the subject matter experts, who are important to the solution.

The culture branch is toughest of all. Its limbs can be slippery and sometimes have cover names (so it’s difficult for me to list them), but thematically, the best climbers know the branches represent the worn patterns of company behavior. Often, the behaviors (and the climate they create) have not been formalized, and shining a light on them may is too bright for some. But when the solvers find a why-not branch that cuts across one of these worn cowpaths, that’s just what they must do. Because without changing the behavioral pattern, there can be no solution.

With the problem tree fully built-out on a single page, it’s clear why the problem should be solved and what’s in the way (why-not). And when the solvers present it, the company decides if the whys are important enough to overcome the why-nots. If it’s a go, the first step is to prune the why-nots – resources to solve the constraint problems, tools and training to improve the capability problems, and a change in leadership behavior to solve the cultural problems. After those are taken care of, the problem definition phase comes to a close.

The problem tree defines the problem, it does not solve it. But through the process of building it out, the problem solvers (problem definers) help the company clear cut the forest of why-nots. Now, standing tall, standing alone, clearly seen for what it is, solving the problem is a breeze.

Creative Problem Creation

Problems get a bad rap. We’re all clear on the negativity around problems, but we don’t appreciate their positive character. It’s time we use their powers for good.

One of the least popular characteristics of problems is their selfishness. Like the friend who shows up for dinner unannounced, problems, left to their own, care only about their calendar. But to overcome this shortcoming and harness their energy, we can create them to fit our time table.

An important strong suit of problems is their ability to create focus. When the VP has a problem, everybody has a problem. And it’s this persuasive power of problems that focuses the organization on a solution – resources, alignment, and creativity on demand.

I propose we bring problems to life on our own terms to create new thinking; to creatively fabricate problems to generate laser-focused thinking in the direction of our choice; to imagine what could be and create the right problems to get us there. Creativity on demand.

The most provocative and productive problems to manufacture are those that remove inherent goodness of your products or that outlaw their physical fundamentals. Like putting your thumb over a hose, these problems spray high velocity thinking in unpredictable directions. Here are some examples:

  1. Big coffee pot can make only one cup – single-cup brewer industry.
  2. Speedboats cannot carry multiple passengers – personal water craft industry.
  3. Lights must illuminate only a small area – LED proliferation.
  4. Sturdy running shoes must be floppy – bare foot running shoe movement.
  5. Desktop computers must be mobile – laptop industry.
  6. Stiff, wear-like-iron dungarees must be worn out – faded/distressed jean movement.
  7. Eye glasses cannot rest on the nose – contact lenses.
  8. Pencils cannot be sharpened – mechanical pencils.
  9. Laser printers must be slow – home printer industry.

Sure, these examples were reverse engineered. But take a minute to walk back in time and sit in those industries. What if back then you created those problems for yourself? What if you create them tomorrow?

The thinking in the post is strongly shaped by Jeffrey Paul Baumgartner’s Anti Conventional Thinking (ACT).

Not Invented Here

Not Invented Here (NIH) is ever-present and misunderstood.

An operational definition of NIH: Group 1 creates new thinking that falls within the official domain of Group 2. When presented with the new thinking, Group 2 rejects it.

It is said Group 2 rejects new thinking because they’re threatened.   But that’s too high level to be helpful.  To get at the root of it, we need to dig.

First, some NIH:

  • Your new thinking is out of alignment with my priorities. Even if I spend a lot of time to understand it, I’m afraid I’ll fail. I reject your new thinking.
  • Your new thinking is out of alignment with responsibility.  (That thinking should come from me.) If I adopt your new thinking, I’ll look stupid, and I’m afraid I’ll fail. I reject your new thinking.
  • Your new thinking is out of alignment with my knowledge. I’m afraid I’ll fail. I reject your new thinking.
  • Your new thinking is out of alignment with how I do things. I’m afraid I’ll fail.  I reject your new thinking.

Now, some non-NIH :

  • My priorities are out of alignment with your new thinking. Though I already have several good ideas that I don’t have time for, can you give me more details so together we can combine the best elements?
  • My responsibility is out of alignment with your new thinking, but your new thinking is good. Can you give me more details so together we can investigate possibilities?
  • My knowledge is out of alignment with your new thinking. Can you give me more details so we can learn together?
  • My way of doing things is out of alignment with your new thinking. Can you give me more details so together we can rethink things?

The key to NIH reduction is to create alignment. With your new thinking not yet fully formed, ask Group 2 for their input. Better yet, ask for their help. Tell them what you don’t know, tell them what you have wrong, tell them how they have a better perspective because it’s their domain, and ask them to help improve it.  (All this is best done informally and off-line, at least to start.)

One little-known fact about NIH – it’s pronoun sensitive. Take care to replace I, you, and yours with we.

Curiosity Fuels Creativity

Creativity generates things that are novel and useful. Make them successful, and you’ve got innovation. There can be no innovation without creativity.

We associate creativity with innate ability that only some have; with transparent happenings that can’t be codified; with eureka moments that come from the subconscious. If anything defies process, it’s creativity. So let’s not use process to squelch creativity, let’s foster behaviors that spawn creativity.

Curiosity is the kindling for creativity; fan its flames and creativity ignites. There a two parts to curiosity – to see things as they are and to propose what could be.

To see things as they are is to create awareness of what is – awareness of context, or changes in context, awareness of worn paths and anomalies, and awareness at high and low levels of abstraction. It takes a disciplined, uncluttered mind to become aware of a new reality, especially while sitting in the old one. And because uncluttering comes only from slack time, to see things as they are is doubly difficult.

The next part of curiosity is to challenge what is in order to propose what could be. To start, root cause must be understood for the new what is. This requires active rejection of old fundamentals and a deep dive to understand new ones. This is toughest when the old fundamentals have been (and are still) successful. (And it’s doubly tough because it requires slack time.) Curiosity twists, pounds, and bends the new fundamentals into a future reality which culminates with a proposal of what could be. Done right, curiosity’s proposal is borderline heretical.

The good news is we don’t need new people – we have plenty of creative capacity. But here’s the bad news – our process thinking isn’t going to get us there because it’s all about behaviors. It’s time to think about how to change things so we can spend more time on behaviors that generate creativity. But if you must use process thinking, come up with a process that lets us spend more time on creative behaviors

The thinking (and some of the language) for this post came from Diego Uribe, a true thought leader in creativity. Thank you Diego.

Thoughts on Vacation

Some thoughts on vacation:

Take fewer longer vacations at the expense of shorter ones.

Work hard, but on something else.

On route to your destination, throw your cell phone from a moving vehicle.

Forget about your work so you can do it better when you return.

Don’t check in at work – that undoes all the relaxation.

Vacation with kids, and take your cues from them.

Mike Shipulski Mike Shipulski

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