Posts Tagged ‘leadership’

Make better decisions

Posted by John Foster on August 3rd, 2010

There are some people who are naturally gifted at understanding a group vibe. These folks always seem to know the “right thing to do” and are often rewarded well for their savvy. And, kind of like the old LIFE cereal commercial, other people begin to depend on the few that have a sense of right and wrong for decisions.  When pondering a difficult decision they say, “Let’s get Mikey!” and run off to seek direction as if that one person really knows the answer by some divine right.

In this manner, many people rely on their boss for direction.  ”We’d better get Jim’s input on this before we proceed!”  While Supervisor Jim may have a good sense of what won’t work, it’s doubtful that he will be able to provide much insight on some new idea or direction.  Of course his opinion matters and his experience helps, but he probably has no more perspective on a new situation than you (sometimes less).   This is a huge threat to innovation, because most controversial decisions are “kicked upstairs” and new ideas are almost always killed.

In reality, great decisions come from being connected to an appropriate set of stakeholders who provide diverse and independent input on a situation.

The magic 8-ball says...

A great boss should say, “Well, I’m not sure about this… who else have you asked?”  This attitude leads people to check things out more broadly before coming to a conclusion.  You’re probably thinking, sure I can ask a lot of people and get 20 different opinions, but I’ll still have 20 opinions… there’s no way to please everyone.  That might be true, but it’s no reason not to proceed.  Since we already know that deciding in a vacuum leads to bad decisions, how might we overcome the problem of having too many opinions?

Ask the Magic 8-ball! (this is a very retro post)  Not that Magic 8-Ball… create a new kind of organization chart that helps you magically determine who to ask and what to ask in order to get better decisions.  It works like this:

1. Clarify your question  (anything can be decided this way, from small to large issues).

2. Determine who cares about this issue (think broadly) or will be impacted by your decision (commonly known as stakeholders).

3. Gather their thoughts on the issue via a series of short 1-1 discussions (build an evolving, proposed solution as you move from person to person, and share it as you go).  This approach is better than a group meeting because it avoids group think or an information cascade that bias the outcome.

4. Test your proposal as you gather input (i.e. ask what they like/don’t like, how they would change it and assure them that you’ll share the “final” proposal before you move forward).

There are two valuable benefits of this approach:

1. You get better insight based on the various perspectives and independent reactions.

2. You build support for your issue as the stakeholders get better context and understand your constraints more deeply by participating in the process.

Here’s one way to chart your stakeholders.  Each “orbit” around you is an existing group (e.g. “sales team” or “senior leaders” or “women in our company”).  Use the orbit to help you identify specific individuals in each stakeholder group and test your breadth and diversity of input.  Tap the wisdom of this crowd by sampling a small set (2-3) of people from each orbit, for a total stakeholder group of  12-20 people.

An atomic organization chart

Popularity: 10% [?]

Leadership is a group outcome

Posted by John Foster on October 6th, 2009

I’m not a big fan of competency models.  They can be interesting as a measuring stick for basic performance, but they tend towards generic “best” practices and don’t seem to be very useful to the people I’ve worked around.  I’m not sure I’ve ever heard a successful person dissect his/her performance along the lines of an existing model.  abe_lincoln

It’s troubling to me that “fixing” yourself up according to an ideal set of competencies is a path towards success.   But the really big flaw in this approach is the focus on individual competence.

Bob Sutton echoes this thought in his recent post of Flawed, Suspect, and Incomplete Assumptions about Managing People .  I trust his instincts and value his persistence in defeating these types of assumptions.  I think they are a big problem for businesses today.

I’ve been watching people perform in a wide variety of settings for quite some time and I’ve come to believe that leadership development is a waste of time.  And I’ve wasted lots of time on it, trust me!  Instead, I’ve shifted to relationship development.  Helping people function better together has way more impact than teaching people insights about themselves that they can generalize to better behavior in the future.

Also, consider the idea that leadership is not a competency at all.  It’s really an outcome.  When I behave successfully with others to solve something, start something, finish something, we’ve accomplished leadership.

Most great leaders are actually collaborators in great actions that change the course of events and create big impact.  Consider Abraham Lincoln… (read Team of Rivals) how much time do you suppose he invested in leadership development versus improving his connections with others?   Next time you consider spending training dollars or valuable time on leadership training, spend that money, time, and energy on improving the performance of your relationships with others instead.

Some tips for better (team) interactions:

1. Spend more time together.

2. Improve your dialog, building on ideas instead of “winning” with the best one.

3. Compare the number of questions versus statements you make as a group.

4. Connect with advisers outside of your team.  Invite them in to your team to give their perspective.

5. Ask someone on your team to give you advice on your own participation.

Work successfully with others and leadership will happen!

Popularity: 42% [?]

United Breaks Guitars

Posted by John Foster on July 8th, 2009

United Breaks GuitarsNow this is how to leverage the web!  Check out a new song by Dave Carroll called United Breaks Guitars.  And for more on the story behind the song visit Dave Caroll Music.  We’ve all had frustrating experiences with poor service and it’s really amazing that such a scene can actually occur.  I myself had a small tiff with a stewardess… I mean flight attendant… on United recently.  She wanted my 2 year-old son to leave the seatback phone in the holder and I thought the relative value of the inflight phone service (nearing zero) and the distinct advantage of having a 2 year-old entertained while the flight boards (priceless) were a good trade off.  My wife was worried I’d get us kicked off the plane for an FAA safety violation (see Ben Stiller in Meet the Parents) but I backed down.

It is quite fun to poke at these people for being so mean, difficult, or otherwise ornery.  But the real issue isn’t the person involved, these incidents are symptoms of a much larger core issue.  Bad service comes from companies that don’t take care of people.  United isn’t about “destination management” they are about airplane management, so they emphasize mechanical and safety issues, not human ones.  Sure, they say they are there for “your safety” but really they are there to control things. When Southwest Airlines hit the scene with an emphasis on people and the customer experience, they immediately became the most profitable airline around.

Another example is the battle between Microsoft and Apple.  While Microsoft has a clear advantage in revenue and profitability (so far), it is clear that customers prefer the Apple experience.  When a single business can dominate an industry so fully like Microsoft or United, they can get away with poor service because customers can’t vote with their wallets.  But as soon as that advantage is removed, the crash and burn is inevitable (and fast)… as in Kmart versus Walmart.

I think this is so obvious I can’t imagine why other businesses don’t pull it off.  But just in case it’s not that clear to everyone, here’s a few reasons it works:

1. People make buying decisions, so treating people well leads to more favorable buying decisions.

2. The loyalty effect is an important driver of sustained profitability.

3. If you want your customers to be treated well, you MUST treat your employees well.  See the Service Profit Chain for more on how this works.

Got any more points to add?

Popularity: 28% [?]

Transparency beats asymmetries

Posted by John Foster on June 26th, 2009

As I begin this post I’m realizing transparency is a big topic, but it’s coming up all over the place in business, personal, and social situations, so I want to start picking it apart.  I noticed Seth Godin’s post earlier this week, and liked his statement that the issue is not to be viewed as a moral right, but a business tactic, tool or threat.  So this post is about sharing information as a business tactic to win complex games.

I’ve had many discussions with friends about putting things on the Web and how fearful they are about things being used against them.  I hear comments about invasion of privacy, loss of employment, Gattaca and Big Brother.   One of my best friends refuses to participate in social networking sites so he won’t make it any easier for anyone to find out stuff about him.  He’s a very sharp guy, and I think he is playing a good poker game.  And, as Seth points out, poker is not much fun if you can see everyone’s cards.

Ostrich head in sandFor me the issue here is not about transparency, but what game you are playing.  Poker is a small scale strategy game pitting one person against another.  Transparency is the exact wrong thing to do in that game.  But most “games” in life and business are far more complex, and given our 21st Century context (see Thomas Friedman), I think it’s dangerous to live life with a poker face.  It’s more like having one’s head in the sand.

In a complex system, transparency is important as it relates to information asymmetries.  This is when one “side” in a transaction knows more than another.  In such cases, people tend to undervalue an opportunity to avoid risks based on gaps in knowledge. It has been shown in economic theory that the overall value of a system is increased when everyone has access to the same information.

In markets, individuals benefit greatly by sharing their information with others to allow for fair exchanges.  This sharing brings the added bonus of systemic aggregation of information (the Internet enables this like never before).  Aggregation allows people to discover patterns that provide opportunities to adjust tactics and “win” more often.

So here’s some “games of life” to think of as markets instead of as poker:

  • Job interviews/hiring decisions… what if employers and employees knew more about jobs and candidates? Better alignment of jobs and people lead to greater engagement and less turnover.
  • Health… what if people were able to share their health information more fully? They could see trends and patterns and share them with medical professionals to get earlier and better treatment.
  • Business… what if employers shared their performance goals and metrics more fully (even when it’s bad news)?  Employees could intervene earlier and with greater permission to prevent negative trends.
  • Dating… more disclosure about values and interests leads to better match making and longer lasting relationships.

Popularity: 16% [?]

Accurate Self Awareness

Posted by John Foster on June 16th, 2009

I spend a lot of time talking to people about getting good feedback.  Usually, they’ve picked up somehow that everything is not going along as well as they’d like.  It could be a friend saying, “you should go talk with so-and-so, I think you two are not on the same page.”  Or, maybe it’s a boss telling you to shape up in a particular area.  Or, maybe you’ve noticed nobody will sit next to you in the cafeteria.

Humans are social animals
The human desire to achieve is outdone only by the human desire to fit in, so these kind of scenarios are usually unsettling at the core of your emotional well-being.  The “reptilian brain stem” portion of your brain starts sending signals to your body that you are in danger and you feel stress and anxiety.

Downward spiral

Downward spiral

Avoid the downward spiral
Over time, this is really bad for your body if you don’t deal with it. In the short term, this is really bad for your job because a lot of your energy is tied up in worry, defensiveness, etc.   Lots of people begin to “ping” those around them to see if this perceived threat is real.  Unfortunately, if this is not done well it feeds the problem and the spiral takes you down and then out to the market for a new job.

Tips for getting an accurate self assessment:

1. Ask better questions. A generic “how am I doing?” question usually leads to a neutral, safe response like, “fine.”  This gives you a false impression and accelerates the negative spiral by reinforcing your positive self image in the face of some legitimate concerns.  Instead of the generic, open-ended approach, ask a specific question about a specific concern you have.   See my “that’s a good question” post for some tips on this.

2. Ask the right people. In a panic situation, we tend to go to our closest allies for guidance and support.  But you need to build perspective when you are unsure, so extend your reach and ask some people you know will be more critical (helpful) and less inclined to protect you.  Having your feedback biased to your closer colleagues means your awareness is biased too.

3. Reduce risk for truthful input. Recognize that most people are not going to tell you their full critical opinion

Scaredy Cats

Scaredy Cats

because it is “risky” to do so.  They may not want to hurt your feelings, may feel their opinion is not important, may believe it’s not their place to be critical of you, or be afraid that they’ll get a reputation for being harsh or unforgiving.  Try these two ways to get the full story from others:

  • Build trust and be persistent.  Think of this like coaxing a cat out from under the bed.  Here kitty, kitty…
  • Provide an anonymous channel to you.  You can ask a friend to gather some input for you, or you can use a tool like Rypple to do it yourself.

Popularity: 25% [?]

Free Advice for GM #2- A Chevy for Everyone

Posted by John Foster on June 15th, 2009

Continuing in a series of posts about GM and organization design, let’s take a closer look at creating the right organization for Chevrolet.  I know restructuring is not this simple; so take this as the first installment in a high level comparison of organization design options, not a comprehensive plan of action.

A return the the chevy brand essence?

A return to the Chevy brand essence?

Let’s start with Chevrolet, because that’s the easiest to imagine given their current situation.

To me, Chevy is Americana.  This is the car that represents the American Dream, value, performance, and accessibility.

Chevrolet should help people get their first car, the family car, and have a competitive truck option.  This market means head-to-head competition with Toyota and Honda, so it has to be efficient and cost competitive and produce top quality, reliable, desirable vehicles.  Check out this post on The Truth About Cars for a quick review of the Chevy brand.

Key Traits of the new Chevrolet organization:

1. Efficient hierarchical structure. Clean lines of authority to provide clear direction, efficient decision-making, speed to market, and drive focus on customer needs as the basis for every action.  This market is not about sexy cars, it’s about helping people feel good while they get places safely and manage household costs.

2. Make each model a business. Get past the silos of design, engineering, marketing, etc. and organize each model around a General Manager, with a P&L outcome and a target consumer to drive functional integration.   Fidelity Investments organizes this way (dozens of P&L units), and it works really well.  Develop a rabid consumer orientation as a rallying point, rather than being fractured by functional expertise.

3. Restructure the supply chain. As pointed out by Charles Mann in Beyond Detroit, source great parts from the best suppliers by developing a modular platform.  Don’t try to own everything, focus on total design, build, and sell.

4. Engage employees. Focus on great leadership and build pride (See Jon Katzenbach). The days of management v. labor must be left behind.  This organization needs every single person engaged in a mission to deliver cost competitive, high quality vehicles.  Organize production around manufacturing teams provide job rotations to help employees learn, grow, and develop as a natural component of work.  Use the portfolio of models to allow employees career movement.

5. Reward performance. Pay individuals, teams, and business units more when they meet performance goals in revenue, quality, and costs.  Create healthy internal competition between the businesses.

Next up, how to recover the SATURN brand through an open-source organization.

Popularity: 15% [?]

Infectious Action

Posted by John Foster on May 26th, 2009

Here in Palo Alto there’s a movement afoot.  The folks over at the Stanford d.school are hoping to get a portion of downtown Palo Alto to become a pedestrian mall.  Check out the post on Metacool by Diego Rodriguez for more details and to join in the action.

I love that they have a class called Creating Infectious Action (CIA) there.  Based on the recent scare caused by the swine flu, infectious transmission of very small things is a force to respect.  I loved Stephen King’s view of this topic (The Stand) as it plays on all of the big fears involved in such an outbreak.  The point is, if you want to make change happen, understanding how this dynamic works is like being a change magician.

Damon Centola at MIT has done some great research to point out how social networking theory needs a bit of a makeover.  In short, the original “small world” theory (Granovetter, 1973) proposed that people who don’t know each other very well can spread behaviors, information and diseases through a dynamic called long ties.  This appears to hold up just fine with simple contagions that can be passed between two people with no other effort (like the flu), but not to hold up if the contagion being passed requires 2 or more people to reinforce it.  Think of it like being a carrier of a flu virus which requires you also to kiss someone else in 10 minutes to activate the infection.  If you catch the bug, but don’t kiss someone within the time limit, the bug dies out and there’s no spread.

Complex Contagion Bridge

For something like the Palo Alto pedestrian mall to come to life, there’s quite a lot of reinforcement that needs to happen, long ties are too weak in this case.  It’s a complex contagion that requires conversation, discussion, influence, and discernment.  In order for it to take hold, a person has to first “catch” the idea via one of the hundreds of people posting it on Facebook or a blog (long ties/small world) and then they have to discuss it with people they know well (strong/high bandwidth ties).

According to Damon, complex contagions operate under four social mechanisms:

1. Strategic complementarity (huh?)… that is, several complimentary factors in play at the same time. Like how technology and cost go together to support innovation.  Until costs come down, some technologies are not enough to create action.

2. Credibility… this is the “everybody’s doing it” influence factor at work.   Research by Chip and Dan Heath shows how hearing the same thing from multiple sources helps get something to “stick”.

3. Legitimacy… if close friends do something together, “innocent bystanders” feel more able to join in.

4. Emotional Contagion… ever feel the vibe of a big crowd and just go for it?  That’s this one.

So don’t just let Facebook do your work with a simple post.  You have to mix it up with people mano a mano, get some demonstrations going, and experience live interaction to get a real change to take place.

Popularity: 5% [?]

JFX now on wordpress

Posted by John Foster on May 12th, 2009

Foster_John

JFX is now on wordpress to make it easier for more people to join in the fun.  To get the kinks out, I’ll be bringing over some content from my facebook page.  More soon!

Popularity: 4% [?]