Shipulski On Design

Posts Tagged ‘Trust-based approach’

When it’s time for new work, the best and smartest get in a small room to figure out what to do.  The process is pretty simple: define a new destination, and, to know when they journey is over, define what it looks like to live there.  Define the idealized future state and define the work to get there.  Turn on the GPS, enter the destination and follow the instructions of the computerized voice.

But with new work, the GPS analogy is less than helpful.  Because the work is new, there’s no telling exactly where the destination is, or whether it exists at all.  No one has sold a product like the one described in the idealized future state.  At this stage, the product definition is wrong.  So, set your course heading for South America though the destination may turn out to be Europe.  No matter, it’s time to make progress, so get in the car and stomp the accelerator.

But with new work there is no map.  It’s never been done before.  Though unskillful, the first approach is to use the old map for the new territory.  That’s like using map data from 1928 in your GPS.  The computer voice will tell you to take a right, but that cart path no longer exists.  The GPS calls out instructions that don’t match the street signs and highway numbers you see through the windshield.  When the GPS disagrees with what you see with your eyeballs, the map is wrong.  It’s time to toss the GPS and believe the territory.

With new work, it’s not the destination that’s important, the current location is most important.  The old sea captains knew this.  Site the stars, mark the time, and set a course heading.  Sail for all your worth until the starts return and as soon as possible re-locate the ship, set a new heading and repeat.  The course heading depends more on location than destination.  If the ship is east of the West Indies, it’s best to sail west, and if the ship is to the north, it’s best to sail south.  Same destination, different course heading.

When the work is new, through away the old maps and the GPS and channel your inner sea caption. Position yourself with the stars, site the landmarks with your telescope, feel the wind in your face and use your best judgement to set the course heading.  And as soon as you can, repeat.

Image credit – Timo Gufler.

Once you have a project to work on, it’s always a challenge to choose the first task.  And once finished with the first task, the next hardest thing is to figure out the next next task.

Two words to live by: Critical Path.

By definition, the next task to work on is the next task on the critical path.  How do you tell if the task is on the critical path?  When you are late by one day on a critical path task, the project, as a whole, will finish a day late.  If you are late by one day and the project won’t be delayed, the task is not on the critical path and you shouldn’t work on it.

Rule 1: If you can’t work the critical path, don’t work on anything.

Working on a non-critical path task is worse than working on nothing.  Working on a non-critical path task is like waiting with perspiration.  It’s worse than activity without progress.  Resources are consumed on unnecessary tasks and the resulting work creates extra constraints on future work, all in the name of leveraging the work you shouldn’t have done in the first place.

How to spot the critical path? If a similar project has been done before, ask the project manager what the critical path was for that project.  Then listen, because that’s the critical path.  If your project is similar to a previous project except with some incremental newness, the newness is on the critical path.

Rule 2: Newness, by definition, is on the critical path.

But as the level of newness increases, it’s more difficult for project managers to tell the critical path from work that should wait.  If you’re the right project manager, even for projects with significant newness, you are able to feel the critical path in your chest.  When you’re the right project manager, you can walk through the cubicles and your body is drawn to the critical path like a divining rod.   When you’re the right project manager and someone in another building is late on their critical path task, you somehow unknowingly end up getting a haircut at the same time and offering them the resources they need to get back on track.  When you’re the right project manager, the universe notifies you when the critical path has gone critical.

Rule 3: The only way to be the right project manager is to run a lot of projects and read a lot.  (I prefer historical fiction and biographies.)

Not all newness is created equal.  If the project won’t launch unless the newness is wrestled to the ground, that’s level 5 newness. Stop everything, clear the decks, and get after it until it succumbs to your diligence.  If the product won’t sell without the newness, that’s level 5 and you should behave accordingly.  If the newness causes the product to cost a bit more than expected, but the project will still sell like nobody’s business, that’s level 2.  Launch it and cost reduce it later.  If no one will notice if the newness doesn’t make it into the product, that’s level 0 newness. (Actually, it’s not newness at all, it’s unneeded complexity.)  Don’t put in the product and don’t bother telling anyone.

Rule 4: The newness you’re afraid of isn’t the newness you should be afraid of.

A good project plan starts with a good understanding of the newness.  Then, the right project work is defined to make sure the newness gets the attention it deserves.  The problem isn’t the newness you know, the problem is the unknown consequence of newness as it ripples through the commercialization engine. New product functionality gets engineering attention until it’s run to ground.  But what if the newness ripples into new materials that can’t be made or new assembly methods that don’t exist?  What if the new materials are banned substances?  What if your multi-million dollar test stations don’t have the capability to accommodate the new functionality?  What if the value proposition is new and your sales team doesn’t know how to sell it?  What if the newness requires a new distribution channel you don’t have? What if your service organization doesn’t have the ability to diagnose a failure of the new newness?

Rule 5: The only way to develop the capability to handle newness is to pair a soon-to-be great project manager with an already great project manager. 

It may sound like an inefficient way to solve the problem, but pairing the two project managers is a lot more efficient than letting a soon-to-be great project manager crash and burn.  After an inexperienced project manager runs a project into the ground, what’s the first thing you do?  You bring in a great project manager to get the project back on track and keep them in the saddle until the product launches.  Why not assume the wheels will fall off unless you put a pro alongside the high potential talent?

Rule 6: When your best project managers tell you they need resources, give them what they ask for.

If you want to deliver new value to new customs there’s no better way than to develop good project managers.  A good project manager instinctively knows the critical path; they know how the work is done; they know to unwind situations that needs to be unwound; they have the personal relationships to get things done when no one else can; because they are trusted, they can get people to bend (and sometimes break) the rules and feel good doing it; and they know what they need to successfully launch the product.

If you don’t know your critical path, you don’t know very much.  And if your project managers don’t know the critical path, you should stop what you’re doing, pull hard on the emergency break with both hands and don’t release it until you know they know.

Image credit – Patrick Emerson

There are many different organizational structures, each with its unique set of strengths and weaknesses. The top-down organization has its strong alignment and limited flexibility while the bottom-up has its empowering consensus and sloth-like pace.  Which one’s better?  Well, it depends.

The function-based organization has strong subject matter expertise and weak cross-function coordination, while the business unit-based organization knows its product, market and customers but has difficulty working east-west across product families and customer segments.  Is one better than the other?  Same answer- it depends.

The matrix organization has the best of both worlds – business unit and functional – and isn’t particularly good at either.  And there’s the ambidextrous organization that I don’t pretend to understand.  If I had to choose one, which would I choose? It depends.

The best organizational structure depends on what you’re trying to do, depends on the environmental context, depends on the organization’s history and biases and the general state of organizational capability, capacity and profitability.  But that’s not the whole picture because none of this is static.  All of this changes over time and it changes in an unpredictable way.  Because the best organizational structure depends on all these complicating factors and the factors change over time, there is never a “best” organizational structure.

Constant change has always been the dominant fundamental perturbing and disturbing our organizational structures.  But, as competition turns up the wick and the pace of learning builds geometrically, change’s ability to influence our organizational structures has grown from disturbing to dismantling.

Change is the dominant fundamental, but its real power comes from the uncertainty it brings to the party.  Our tired, old organizational structures were designed to survive in a long-dead era of glacial change and rationed uncertainty.  And though our organizational structures were built in granite, the elevated sea levels of uncertainty are creating fissures in our inflexible organizational structures and profitability is leaking from all levels

If uncertainty is the disease, adaptability is the antidote.  The organization must continually monitor its environment for changes.  And when it senses an emerging shift, the organization it must move resources in a way that satisfies the new reality.  The organization structure shifts to fit the work.  The structure changes as the character of the projects change.  The organizational structure never reaches equilibrium; it survives through continual evolutionary loop of sense-change-sense.

I don’t have a name for an organization like this, and I think it’s best not to name it.  Instead, I think it’s best to describe how it behaves.  It’s a living organization that behaves like a living organism.  It wants to survive, so it changes itself based on changes in its environment.  It’s an organization that self organizes.

Directionally, organizational structures should be less static and more dynamic, and they should evolve to fit the work.  The difficult part is how to define the explicit rules on how it should change, when it should change and how it decides.  But it’s more than difficult to describe explicit rules, it’s impossible.  In domains of high levels of uncertainty there can be no predictability and without predictability a finite set of explicit rules will not work.  The DNA of this living organization is implicit knowledge, evolutionary experimentation and personal judgement.

I’m not sure what to call this type of organizational structure, and I’m not exactly sure how to create one. But it sure sounds like a lot of fun.

Image credit — actor212

Do good work and people will notice.  Do work to get noticed and people will notice that too.

Try to do good work and you’ll get ahead. Try to get ahead and you won’t.

If the work feels good while you’re doing it, it’s good work.  If it doesn’t, it’s not.

If you watch the clock while you work, that says nothing about the clock.

When you surf the web at work, you’re not working.  When you learn from blog posts, podcasts and TED talks, you are.

Using social media at work is good for business, except when it isn’t.

When you feel you don’t have the authority, you don’t.  If you think you need authority, you shouldn’t.

When people seek your guidance you have something far more powerful than authority, you have trust.

Don’t pine for authority, earn the right to influence.

Influence is to authority as trust is to control.

Personal relationships are more powerful than org charts.  Work the relationships, not the org chart.

There’s no reason to change right up until there’s a good reason.  It may be too late, but at least you’ll have a reason.

Holding on to what you have comes at the expense of creating the future.

As a leader don’t take credit, take responsibility.

And when in doubt, try something.

Image credit — Peter Clark

If you know what to do, do it.  But if you always know what to do, do something else.  There’s no excitement in turning the crank every-day-all-day, and there’s no personal growth.  You may be getting glowing reviews now, but when your process is documented and becomes standard work, you’ll become one of the trivial many that follow your perfected recipe, and your brain will turn soggy.

If you want to do the same things more productively, do continuous improvement.  Look at the work and design out the waste.  I suggest you look for the waiting and eliminate it.  (One hint – look for people or parts queueing up and right in front of the pile you’ll find the waste maker.)  But if you always eliminate waste, do something else.  Break from the minimization mindset and create something new.  Maximize something. Blow up the best practice or have the courage to obsolete your best work.  In a sea of continuous improvement, be the lighthouse of doing new.

When you do something for the first time, you don’t know how to do it. It’s scary, but that’s just the feeling you want.  The cold feeling in your chest is a leading indicator of personal growth.  (If you don’t have a sinking feeling in your gut, see paragraph 1.) But organizations don’t make it easy to do something for the first time.  The best approach is to start small.  Try small experiments that don’t require approval from a budget standpoint and are safe to fail.  Run the experiments under the radar and learn in private.  Grow your confidence in yourself and your thinking.  After you have some success, show your results to people you trust.  Their input will help you grow.  And you’ll need every bit of that personal growth because to staff and run a project to bring your new concept to life you’ll need resources.  And for that you’ll need to dance with the most dangerous enemy of doing new things – the deadly ROI calculation.

The R is for return.  To calculate the return for the new concept you need to know: how many you’ll sell, how much you’ll sell them for, how much it will cost, and how well it will work.  All this must be known BEFORE resources can be allocated. But that’s not possible because the new thing has never been done before.  Even before talking about investment (I), the ROI calculation makes a train wreck of new ideas.  To calculate investment, you’ve got to know how many person-hours will be needed, the cost of the materials to make the prototypes and the lab resources needed for testing.  But that’s impossible to know because the work has never been done before.  The ROI is a meaningless calculation for new ideas and its misapplication has spelled death for more good ideas than anything else known to man.

Use the best practice and standardize the work. There’s immense pressure to repeat what was done last time because our companies prefer incremental growth that’s predictable over unreasonable growth that’s less certain.  And add to that the personal risk and emotional discomfort of doing new things and it’s a wonder how we do anything new at all.

But magically, new things do bubble up from the bottom. People do find the courage to try things that obsolete the business model and deliver new lines of customer goodness.  And some even manage survive the run through the ROI gauntlet.  With odds stacked against them, your best people push through their fears cut through the culture of predictability.

Imagine what they will do when you demand they do new work, give them the tools, time and training to do it, and strike the ROI calculation from our vocabulary.

Image credit – Tony Sergo

At every meeting you have a chance to move things forward or hold them back.  When a new idea is first introduced it’s bare-naked.  In its prenatal state, it’s wobbly and can’t stand on its own and is vulnerable to attack. But since it’s not yet developed, it’s impressionable and willing to evolve into what it could be.  With the right help it can go either way – die a swift death or sprout into something magical.

Early in gestation, the most worthy ideas don’t look that way.  They’re ugly, ill-formed, angry or threatening.  Or, they’re playful, silly or absurd.  Depending on your outlook, they can be a member of either camp. And as your outlook changes, they can jump from one camp to the other.  Or, they can sit with one leg in each.  But none of that is about the idea, it’s all about you.  The idea isn’t a thing in itself, it’s a reflection of you. The idea is nothing until you attach your feelings to it.  Whether it lives or dies depends on you.

Are you looking for reasons to say yes or reasons to say no?

On the surface, everyone in the organization looks like they’re fully booked with more smart goals than they can digest and have more deliverables than they swallow, but that’s not the case.  Though it looks like there’s no room for new ideas, there’s plenty of capacity to chew on new ideas if the team decides they want to.  Every team can spare and hour or two a week for the right ideas.  The only real question is do they want to?

If someone shows interest and initiative, it’s important to support their idea.  The smallest acceptable investment is a follow-on question that positively reinforces the behavior.  “That’s interesting, tell me more.” sends the right message.  Next, “How do you think we should test the idea?” makes it clear you are willing to take the next step.  If they can’t think of a way to test it, help them come up with a small, resource-lite experiment.  And if they respond with a five year plan and multi-million dollar investment, suggest a small experiment to demonstrate worthiness of the idea.  Sometimes it’s a thought experiment, sometimes it’s a discussion with a customer and sometimes it’s a prototype, but it’s always small.  Regardless of the idea, there’s always room for a small experiment.

Like a staircase, a series of small experiments build on each other to create big learning.  Each step is manageable – each investment is tolerable and each misstep is survivable – and with each experiment the learning objective is the same: Is the new idea worthy of taking the next step?  It’s a step-wise set of decisions to allocate resources on the right work to increase learning.  And after starting in the basement, with step-by-step experimentation and flight-by-flight investment, you find yourself on the fifth floor.

This is about changing behavior and learning.  Behavior doesn’t change overnight, it changes day-by-day, step-by-step.  And it’s the same for learning – it builds on what was learned yesterday.  And as long at the experiment is small, there can be no missteps.  And it doesn’t matter what the first experiment is all about, as long as you take the first step.

Your team will recognize your new behavior because it respectful of their ideas.  And when you respect their ideas, you respect them.  Soon enough you will have a team that stands taller and runs small experiments on their own.  Their experiments will grow bolder and their learning will curve will steepen.  Then, you’ll struggle to keep up with them, and you’ll have them right where you want them.

image credit — Rob Warde

Supply and demand have been joined at the hip since the beginning.  When demand is high, the deck is shuffled so supply seems low.  The fabricated scarcity drives up prices and shareholders are happy.  When demand is low, the competition pushes each other on price.  The abundance creates a commodity, and it’s a race to the bottom.

But this is old thinking.

Scarcity isn’t a lever to jack up prices or manipulate relationships, it’s an opportunity to spend your limited resources on the most important work and to build relationships.  When you tell a potential partner you want work with them and you are willing to spend your finite resources to make it happen, it’s a huge compliment.  Voting with your feet makes a powerful statement that you’re serious about working with them because you think they’re special.  You are telling them that you will say no to others so you can say yes to them.  Both know they’re part of something important and the free-flowing positivity results in something otherwise impossible.

Scarcity is limiting only if your mental framework thinks it is.  If you hoard and hold tightly, scarcity breeds win-lose relationships governed by power dynamics.  But if you choose the anti-framework, scarcity creates trust.

Played differently, abundance does not create commodity, it’s opportunity to show others you have enough to spare.  In personal relationships, when you share some of your work for free your relationships blossom.  When you give it away you are signaling that you have plenty to spare.  It’s clear to everyone you are a geyser of new thinking.  Here – take this.  I’ll make more.  These simple words create a foundation of trust which bolsters your personal brand.  And because all business relationships are personal relationships, it does the same thing for your company’s brand.

Make it a commodity or give it away – how you see abundance is your choice.  The old way breeds bare-knuckled competition.  The new way creates a brand steeped in trust.

If you have scarcity, be thankful for it.  Allocate your precious resources thoughtfully and with love.  Spend your time with the people and causes that matter.  It will feel good to everyone, including you.  And if you have abundance, be thankful.  Choose to develop closer relationships based on trust. Choose to give it away.

Happy Thanksgiving.

image credit — GloriaGarcia

Why are you holding back?  Why aren’t you giving your best?  Why are you blocking yourself?

An open, honest disagreement can be a positive learning experience for both.  If your intensions are good, everything works out well. I’m not sure why, but when your pockets are full of good intensions, the universe is kind to you.

But the universe’s kindness doesn’t manifest in the outcome you want. It’s a better teacher than that.  The universe has been around a long time and has seen it all.  It understands context.  And it has a good memory.  It uses both as input for its outputs. And to keep things lively, it often exercises its dry sense of humor.  But more than anything, the universe is a good judge of character.  And that’s how it decides how things should go.

A situation has no inherent emotional component.  Any emotion attached to the situation is attached by you.  If you feel fear, it’s not the situation.  You’re afraid.  Things aren’t scary, you make them scary.  Situations don’t hold you back, you do.

Fear is a protection mechanism.  But from what?  If you hold back because you’re afraid what others will think, you are protecting yourself from judgement.  At the surface it looks like you are afraid of being judged by others, but that’s not it. You are afraid of being judged by you.  But if your intensions are good, the universe will give you what you deserve.  There’s nothing to fear.  Yet, you block yourself.

You’re not afraid others will judge you as second class.  You want to avoid the discomfort of judging yourself as second class.  You don’t put yourself out there because you don’t want to be reminded that you don’t feel good about yourself.  People and situations can’t knock you down a rung, only you can.  You have control over how much love you give yourself. And it’s time to give yourself more.

This may sound silly, but it’s not – if you make a little time every day to wish yourself kindness, happiness and peace you will have more peace and happiness.  You will attach less fear to situations judge yourself less and block yourself less.

Give it a try.  You’re worth it.

Companies don’t need more ideas, they need ideas that are more meaningful.  Companies have plenty ideas because they measure and track the number of new ideas generated.  Enter your idea on the company’s open innovation web portal, and you’re done. Let the record show that a new idea was added to the hopper.  Increment the counter and update the metrics.  One new idea for the good guys.  It’s a good day to be alive.

For some reason leaders are comforted by a large number of new ideas in the hopper even though there’s no hope of working on them.  Maybe they think there’s value in a backlog of ideas they can fall back on if the existing work doesn’t pan out.  If that’s the case, they probably think the ideas in the hopper have good potential.  But because the ideas are not graded on their potential, that’s simply wishful thinking.

The only thing good about counting the number of new ideas is that the number of new ideas is easy to count.  The good thing about grading ideas on their level of meaningfulness is it causes the most meaningful ideas to rise to the top.  The bad thing about grading ideas is that it requires judgement. And today, judgment is in short supply.  If you use your judgement poorly your career suffers, but if you avoid using your judgement no one notices.  Here’s a rule: If you never you use your judgement, you can never use it poorly.

For a select few, any work that doesn’t require judgment doesn’t rise to the level of work worth doing.  For them, only the most meaningful work will do, and rolling the dice on their career is simply the cost of doing business.  For them, it’s judgement or bust.

If you use your judgement and choose to work on a meaningful idea, be prepared for the loneliness.  Meaningful ideas are, by definition, understood by a few and misunderstood by the rest.  It’s lonely to advance an idea that most don’t understand.  And prepare to be misjudged for your actions because your steadfast pursuit of the idea will also be misunderstood. Your vigor and aliveness will be seen as aggressiveness, anger, negativity, closemindedness, or political incorrectness.  But this misjudgment comes with the territory.  There’s no way around it.  It’s just how it goes.  It’s not personal.

But just as the trivial many will try to tear you down, there are a vital few who will praise you, support you and bolster you.  These are the special people in your organization.  You know who I’m talking about.  You have a personal relationship with them.  You know about their families. You’ve been through tough times together.  They’ve seen you struggle, stumble and tumble, and they’ve seen you get up and move forward.  They’ve seen you run into a brick wall and helped you back to your feet.  Don’t dismiss their praise and don’t feel guilty about accepting help from them. They don’t want credit for helping you, they want you to succeed.

You don’t know this, but those special people want to help you because you’ve already helped them.  Some time ago you unknowingly helped them through a tough time, or were kind to them.  Or, you invested in them or believed in them.  More than likely, though, you inspired them.

Keep moving forward.  Keep pushing.  And take comfort from the special people that believe in you.

Image credit – Ice Man

People have a natural bias toward doing what was done last time.  The behavior is the result of untold generations that evolved to serve a single objective – to survive.  Survival is about holding onto what is – protecting the family, providing food and waking up the next morning.  In survival mode any energy spent on activities even partially unrelated to food, water and shelter is wasted energy.  Any deviation from the worn path creates newness and uncertainty which causes adrenaline to flow and increases caloric burn rate.  In survival mode the opportunity cost of those extra calories is larger than the potential benefit of a new experience.

Today, calories are readily available for most and survival is no longer the objective, yet the bias persists.  Today, the bias is not driven by a culture of survivability.  It’s driven by a culture of accountability.  Accountability forces its own singular focus – make the numbers – and, like survivability, tightly links the consequences of mistakes and shortcomings to the individual.  Spend your calories any way you want just don’t miss the numbers.

In a culture of accountability there is no time to rest and recharge.  Like the predator that never sleeps, metrics continually keep a hungry eye on the human prey.  And like with food and water, any deviation from the worn path of increased throughput and profit is unsafe behavior.

But when the watering hole dries up and the fruit has been picked from the trees, the worn path isn’t the safest path.  Frantic foraging is the only real option, but it’s not much safer and certainly no way to go through life.   Paradoxically, a culture of accountability, with its intent of reducing the risk of missing the numbers can create far more dangerous failure modes.  Where over fishing depletes the fish population and over farming makes for a dust bowl, over reliance on what worked last time can create failure modes that jeopardize survival.

To break the bias and help people do new things, measure new things and talk about new things.  Start the next meeting with a review of what’s different.  The team will feel energized.  And after the discussion, adjourn the meeting because everything else is the same.  At the next status meeting, talk only about the surprising insights.  With the next email, send praise about the new learning.  At team meetings, acknowledge the inherent uncertainty of doing new things and praise it over the potentially catastrophic consequences of over extending the tried-and-true.  And for metrics, stop measuring outcomes.

Image credit — Applied Nomadology

Control strategies don’t work, but trust strategies do.

Nothing goes as planned.  Trying to control things tightly is wasteful.  It takes too much energy to batten down all the hatches and keep them that way every-day-all-day.  Maybe no water gets in, but the crew doesn’t get enough oxygen and their brains wither.

Trust on the other hand, is flexible and far more efficient.  It takes little energy to hire a pro, give them the right task and get out of the way.  And with the best pros it requires even less energy because the three-step becomes a two-step – hire them and get out of the way.

When both hands are continuously busy pulling the levers of contingency plans there are no hands left to point toward the future.  When both arms are clinging onto the artificial schedule of the project plan there are no arms left to conduct the orchestra.  Control strategies make sure even the piccolo plays the right notes at the right time, while trust strategies let the violins adjust based on their ear and intuition and even let the conductors write their own sheet music.

Control is an illusion, but trust is real.  The best statistical analyses are rearward-looking and provide no control in a changing environment. (You can’t drive a car by looking in the rear view mirror.) Yet, that’s the state-of-the-art for control strategies – don’t change the inputs, don’t change the process and we’ll get what we got last time.  That’s not control.  That’s self-limiting.

Trust is real because people and their relationships are real.  Trust is a contract between people where one side expects hard work and good judgment and the other side expects to be challenged and to be given the flexibility to do the work as they see fit.  Trust-based systems are far more adaptable than if-then control strategies.  No control algorithm can effectively handle unanticipated changes in input conditions or unplanned drift in decision criteria, but people and their judgement can.  In fact, that’s what people are good at, and they enjoy doing it.  And that’s a great recipe for an engaged work force.

Control strategies are popular because they help us believe we have control.  And they’re ineffective for the same reason.  Trust strategies are not popular because they acknowledge we have no real control and rely on judgment.  And that’s why they’re effective.

When control strategies fail, trust strategies are implemented to save the day.  When the wheels fall off a project, the best pro in the company is brought in to fix what’s broken.   And the best pro is the most trusted pro.  And their charge – Tell us what’s wrong (Use your judgement.), tell us how you’re going to fix it (Use your best judgement for that.) and tell us what you need to fix it. (And use your best judgement for that, too.)

In the end, trust trumps control. But only after all other possibilities are exhausted.

Image credit – Dobi.