Archive for the ‘Fear’ Category
The Difficulty of Commercializing New Concepts
If you have the data that says the market for the new concept is big enough, you waited too long.
If you require the data that verifies the market is big enough before pursuing new concepts, you’ll never pursue them.
If you’re afraid to trust the judgement of your best technologists, you’ll never build the traction needed to launch new concepts.
If you will sell the new concept to the same old customers, don’t bother. You already sold them all the important new concepts. The returns have already diminished.
If you must sell the new concept to new customers, it could create a whole new business for you.
If you ask your successful business units to create and commercialize new concepts, they’ll launch what they did last time and declare it a new concept.
If you leave it to your successful business units to decide if it’s right to commercialize a new concept created by someone else, they won’t.
If a new concept is so significant that it will dwarf the most successful business unit, the most successful business unit will scuttle it.
If the new concept is so significant it warrants a whole new business unit, you won’t make the investment because the sales of the yet-to-be-launched concept are yet to be realized.
If you can’t justify the investment to commercialize a new concept because there are no sales of the yet-to-be-launched concept, you don’t understand that sales come only after you launch. But, you’re not alone.
If a new concept makes perfect sense, you would have commercialized it years ago.
If the new concept isn’t ridiculed by the Status Quo, do something else.
If the new concept hasn’t failed three times, it’s not a worthwhile concept.
If you think the new concept will be used as you intend, think again.
If you’re sure a new concept will be a flop, you shouldn’t be. Same goes for the ones you’re sure will be successful.
If you’re afraid to trust your judgement, you aren’t the right person to commercialize new concepts.
And if you’re not willing to put your reputation on the line, let someone else commercialize the new concept.
Image credit – Melissa O’Donohue
The Trust Network II
I stand by my statement that trust is the most important element in business (see The Trust Network.)
The Trust Network are the group of people who get the work done. They don’t do the work to get promoted, they just do the work because they like doing the work. They don’t take others’ credit (they’re not striving,) they just do the work. And they help each other do the work because, well, it’s the right thing to do.
Sometimes, they use their judgement to protect the company from bad ideas. But to be clear, they don’t protect the Status Quo. They use their good judgement to decide if a new idea has merit, and if it doesn’t, they try to shape it. And if they can’t shape it, they block it. Their judgement is good because their mutual trust allows them to talk openly and honestly and listen to each other. And through the process, they come to a decision and act on it.
But there’s another side to the Trust Network. They also bring new ideas to the company.
Trying new things is scary, but the Trust Network makes it safe. When someone has a good idea, the Network positively reinforces the goodness of the idea and recommends a small experiment. And when one installment of positivity doesn’t carry the day, the Trust Network comes together to create the additional positivity need to grow the idea into an experiment.
To make it safe, the Trust Network knows to keep the experiment small. If the small experiment doesn’t go as planned, they know there will be no negative consequences. And if the experiment’s results do attract attention, they dismiss the negativity of failure and talk about the positivity of learning. And if there is no money to run the experiment, they scare it up. They don’t stop until the experiment is completed.
But the real power of the Trust Network shows its hand after the successful experiment. The toughest part of innovation is the “now what” part, where successful experiments go to die. Since no one thought through what must happen to convert the successful experiment to a successful product, the follow-on actions are undefined and unbudgeted and the validated idea dies. But the Trust Network knows all this, so they help the experimenter define the “then what” activities before the experiment is run. That way, the resources are ready and waiting when the experiment is a success. The follow-on activities happen as planned.
The Trust Network always reminds each other that doing new things is difficult and that it’s okay that the outcome of the experiment is unknown. In fact, they go further and tell each other that the outcome of the experiment is unknowable. Regardless of the outcome of the experiment, the Trust Network is there for each other.
To start a Trust Network, find someone you trust and trust them. Support their new ideas, support their experiments and support the follow-on actions. If they’re afraid, tell them to be afraid and run the experiment. If they don’t have the resources to run the experiment, find the resources for them. And if they’re afraid they won’t get credit for all the success, tell them to trust you.
And to grow your Trust Network, find someone else you trust and trust them. And, repeat.
Image credit — Rolf Dietrich Brecher
What’s in the way?
If you want things to change, you have two options. You can incentivize change or you can move things out of the way that block change. The first way doesn’t work and the second one does. For more details, click this link at it will take you to a post that describes Danny Kahneman’s thoughts on the subject.
And, also from Kahneman, to move things out of the way and unblock change, change the environment.
Change-blocker 1. Metrics. When you measure someone on efficiency, you get efficiency. And if people think a potential change could reduce efficiency, that change is blocked. And the same goes for all metrics associated with cost, quality and speed. When a change threatens the metric, the change will be blocked. To change the environment to eliminate the blocking, help people understand who the change will actually IMPROVE the metric. Do the analysis and educate those who would be negatively impacted if the change reduced the metric. Change their environment to one that believes the change will improve the metric.
Change-blocker 2. Incentives. When someone’s bonus could be negatively impacted by a potential change, that change will be blocked. Figure out whose incentive compensation are jeopardized by the potential change and help them understand how the potential change will actually increase their incentives. You may have to explain that their incentives will increase in the long term, but that’s an argument that holds water. Until they believe their incentives will not suffer, they’ll block the change.
Change-blocker 3. Fear. This is the big one – fear of negative consequences. Here’s a short list: fear of being judged, fear of being blamed, fear of losing status, fear of losing control, fear of losing a job, fear of losing a promotion, fear of looking stupid and fear of failing. One of the best ways to help people get over their fear is to run a small experiment that demonstrates that they have nothing to fear. Show them that the change will actually work. Show them how they’ll benefit.
Eliminating the things that block change is fundamentally different than pushing people in the direction of change. It’s different in effectiveness and approach. Start with the questions: “What’s in the way of change?” or “Who is in the way of change?” and then “Why are they in the way of change?” From there, you’ll have an idea what must be moved out of the way. And then ask: “How can their environment be changed so the change-blocker can be moved out of the way?”
What’s in the way of giving it a try?
Image credit B4bees
You’re probably not doing transformational work.
Continuous improvement is not transformation. With continuous improvement, products, processes and services are improved three percent year-on-year. With transformation, products are a mechanism to generate data, processes are eliminated altogether and services move from fixing what’s broken to proactive updates that deliver the surprising customer value.
A strategic initiative is not transformation. A strategic initiative improves a function or process that is – a move to consultative selling or a better new product development process. Transformation dismantles. The selling process is displaced by automatic with month-to-month renewals. And while product development is still a thing, it’s relegated to a process that creates the platform for the real money-maker – the novel customer value made possible by the data generated by the product.
Cultural change is not transformation. Cultural change uses the gaps in survey data to tweak a successful formula and adjust messaging. Transformation creates new organizations that violate existing company culture.
If there the corporate structure is unchanged, there can be no transformation.
If the power brokers are unchanged, there can be no transformation.
If the company culture isn’t violated, there can be no transformation.
If it’s not digital, there can be no transformation.
In short, if the same rules apply, there can be no transformation.
Transformation doesn’t generate discomfort, it generates disarray.
Transformation doesn’t tweak the successful, it creates the unrecognizable.
Transformation doesn’t change the what, it creates a new how.
Transformation doesn’t make better caterpillars, it creates butterflies.
Image credit – Chris Sorge
Business is about feelings and emotions.
If you use your sane-and-rational lenses and the situation doesn’t make sense, that’s because the situation is not governed by sanity and rationality. Yet, even though there’s a mismatch between the system’s behavior and sane-and-rational, we still try to understand the system through the cloudy lenses of sanity and rationality.
Computer programs are sane and rational; Algorithms are sane and rational; Machines are sane and rational. Fixed inputs yield predicted outputs; If this, then that; Repeat the experiment and the results are repeated. In the cold domain of machines, computer programs and algorithms you may not like the output, but you’re not surprised by it.
But businesses are not run by computer programs, algorithms and machines. Businesses are run by people. And that’s why things aren’t always sane and rational in business.
Where computer programs blindly follow logic that’s coded into them, people follow their emotions. Where algorithms don’t decide what to do based on their emotional state, people do. And where machines aren’t afraid to try something new, people are.
When something doesn’t make sense to you, it’s because your assumptions about the underlying principles are wrong. If you see things that violate logic, it’s because logic isn’t the guiding principle. And if logic isn’t the guiding principle, the only other things that could be driving the irrationality are feelings and emotions. But if you think the solution is to make the irrational system behave rationally, be prepared to be perplexed and frustrated.
The underpinnings of management and leadership are thoughts, feelings and emotions. And, thoughts are governed by feelings and emotions. In that way, the currency of management and leadership is feelings and emotions.
If your first inclination is to figure out a situation using logic, don’t. Logic is for computers, and even that’s changing with deep learning. Business is about people. When in doubt, assess the feelings and emotions of the people involved. And once you understand their thoughts and feelings, you’ll know what to do.
Business isn’t about algorithms. Business is about people. And people respond based on their emotional state. If you want to be a good manager, focus on people’s feelings and emotions. And if you want to be a good leader, do the same.
Image credit: Guiseppe Milo
Defy success and choose innovation.
Innovation is difficult because it requires novelty. And novelty is difficult because it’s different than last time. And different than last time is difficult because you’ve got to put yourself out there. And putting yourself out there is difficult because no one wants to be judged negatively.
Success, no matter how small, reinforces what was done last time. There’s safety in doing it again. The return may be small, but the wheels won’t fall off. You may run yourself into the ground over time, but you won’t fail catastrophically. You may not reach your growth targets, but you won’t get fired for slowly destroying the brand. In short, you won’t fail this year, but you will create the causes and conditions for a race to the bottom.
Diminishing returns are real. As a system improves it becomes more difficult to improve. A ten percent improvement is more difficult every year and at some point, improvement becomes impossible. In that way, success doesn’t breed success, it breeds more effort for less return. And as that improvement per unit effort decreases, it becomes ever more important (and ever more difficult) to do something different (to innovate).
Paradoxically, success makes it more difficult to innovate.
Success brings profits that could fund innovation. But, instead, success brings the expectation of predictable growth. Last year we were successful and grew 10%. We know the recipe, so this year let’s grow 12%. We can do what we did last year, but do it more efficiently. A sound bit of logic, except it assumes the rules haven’t changed and that competitors haven’t improved. But rules and competitors always change, and, at some point the the same old recipe for success runs out of gas.
It’s time to do something new (to innovate) when the same old effort brings reduced results. That change in output per unit effort means the recipe is tiring and it’s time for a new one. But with a new approach comes unpredictability, and for those who demand predictability, a new approach is scary. Sure, the yearly trend of reduced return on investment should scare them more, but it doesn’t. The devil you know is less scary than the one you don’t. But, it shouldn’t be.
Calculate your revenue dollars per sales associate and plot it over time. If the metric is flat over the last three years, it was time to innovate three years ago. If it’s decreasing over the last three years, it was time to innovate six years ago.
If you wait to innovate until revenue per sales person is flat, you waited too long.
No one likes to be judged negatively, more than that, no one likes their company to collapse and lose their job. So, choose to do something new (to innovate) and choose the possibility of being judged. That’s much better than choosing to go out of business.
Image credit – Michel Rathwell
The Courage To Speak Up
If you see things differently than others, congratulations. You’re thinking for yourself.
If you find yourself pressured into thinking like everyone else, that’s a sign your opinion threatens. It’s too powerful to be dismissed out-of-hand, and that’s why they want to shut you up.
If the status quo is angered by your theory, you’re likely onto something. Stick to your guns.
If your boss doesn’t want to hear your contrarian opinion, that’s because it cannot be easily dismissed. That’s reason enough to say it.
If you disagree in a meeting and your sentiment is actively dismissed, dismiss the dismisser. And say it again.
If you’re an active member of the project and you are not invited to the meeting, take it as a compliment. Your opinion is too powerful to defend against. The only way for the group-think to survive is to keep you away from it. Well done.
If your opinion is actively and repeatedly ignored, it’s too powerful to be acknowledged. Send a note to someone higher up in the organization. And if that doesn’t work, send it up a level higher still. Don’t back down.
If you look into the future and see a train wreck, set up a meeting with the conductor and tell them what you see.
When you see things differently, others will try to silence you and tell you you’re wrong. Don’t believe them. The world needs people like you who see things as they are and have the courage to speak the truth as they see it.
Thank you for your courage.
Image credit – Cristian V.
For innovation to flow, drive out fear.
The primary impediment to innovation is fear, and the prime directive of any innovation system should be to drive out fear.
A culture of accountability, implemented poorly, can inject fear and deter innovation. When the team is accountable to deliver on a project but are constrained to a fixed scope, a fixed launch date and resources, they will be afraid. Because they know that innovation requires new work and new work is inherently unpredictable, they rightly recognize the triple accountability – time, scope and resources – cannot be met. From the very first day of the project, they know they cannot be successful and are afraid of the consequences.
A culture of accountability can be adapted to innovation to reduce fear. Here’s one way. Keep the team small and keep them dedicated to a single innovation project. No resource sharing, no swapping and no double counting. Create tight time blocks with clear work objectives, where the team reports back on a fixed pitch (weekly, monthly). But make it clear that they can flex on scope and level of completeness. They should try to do all the work within the time constraints but they must know that it’s expected the scope will narrow or shift and the level of completeness will be governed by the time constraint. Tell them you believe in them and you trust them to do their best, then praise their good judgement at the review meeting at the end of the time block.
Innovation is about solving new problems, yet fear blocks teams from trying new things. Teams like to solve problems that are familiar because they have seen previous teams judged negatively for missing deadlines. Here’s the logic – we’d rather add too little novelty than be late. The team would love to solve new problems but their afraid, based on past projects, that they’ll be chastised for missing a completion date that’s disrespectful of the work content and level of novelty. If you want the team to solve new problems, give them the tools, time, training and a teacher so they can select different problems and solve them differently. Simply put – create the causes and conditions for fear to quietly slink away so innovation will flow.
Fear is the most powerful inhibitor. But before we can lessen the team’s fear we’ve got to recognize the causes and conditions that create it. Fear’s job is to keep us safe, to keep us away from situations that have been risky or dangerous. To do this, our bodies create deep memories of those dangerous or scary situations and creates fear when it recognizes similarities between the current situation and past dangerous situations. In that way, less fear is created if the current situation feels differently from situations of the past where people were judged negatively.
To understand the causes and conditions that create fear, look back at previous projects. Make a list of the projects where project members were judged negatively for things outside their control such as: arbitrary launch dates not bound by the work content, high risk levels driven by unjustifiable specifications, insufficient resources, inadequate tools, poor training and no teacher. And make a list of projects where team members were praised. For the projects that praised, write down attributes of those projects (e.g., high reuse, low technical risk) and their outcomes (e.g., on time, on cost). To reduce fear, the project team will bend new projects toward those attributes and outcomes. Do the same for projects that judged negatively for things outside the project teams’ control. To reduce fear, the future project teams will bend away from those attributes and outcomes.
Now the difficult parts. As a leader, it’s time to look inside. Make a list of your behaviors that set (or contributed to) causes and conditions that made it easy for the project team to be judged negatively for the wrong reasons. And then make a list of your new behaviors that will create future causes and conditions where people aren’t afraid to solve new problems in new ways.
Image credit — andrea floris
You can’t innovate when…
Your company believes everything should always go as planned.
You still have to do your regular job.
The project’s completion date is disrespectful of the work content.
Your company doesn’t recognize the difference between complex and complicated.
The team is not given the tools, training, time and a teacher.
You’re asked to generate 500 ideas but you’re afraid no one will do anything with them.
You’re afraid to make a mistake.
You’re afraid you’ll be judged negatively.
You’re afraid to share unpleasant facts.
You’re afraid the status quo will be allowed to squash the new ideas, again.
You’re afraid the company’s proven recipe for success will stifle new thinking.
You’re afraid the project team will be staffed with a patchwork of part time resources.
You’re afraid you’ll have to compete for funding against the existing business units.
You’re afraid to build a functional prototype because the value proposition is poorly defined.
Project decisions are consensus-based.
Your company has been super profitable for a long time.
The project team does not believe in the project.
Image credit Vera & Gene-Christophe
Everyday Leadership
What if your primary role every day was to put other people in a position to succeed? What would you start doing? What would you stop doing? Could you be happy if they got the credit and you didn’t? Could you feel good about their success or would you feel angry because they were acknowledged for their success? What would happen if you ran the experiment?
What if each day you had to give ten compliments? Could you notice ten things worthy of compliment? Could you pay enough attention? Would it be difficult to give the compliments? Would it be easy? Would it scare you? Would you feel silly or happy? Who would be the first person you’d compliment? Who is the last person you’d compliment? How would they feel? What could it hurt to try it for a week?
What if each day you had to ask five people if you can help them? Could you do it even for one day? Could you ask in a way the preserves their self-worth? Could you ask in a sincere way? How do you think they would feel if you asked them? How would you feel if they said yes? How about if they said no? Would the experiment be valuable? Would it be costly? What’s in the way of trying it for a day? How do you feel about what’s in the way?
What if you made a mistake and you had to apologize to five people? Could you do it? Would you do it? Could you say “I’m sorry. I won’t do it again. How can I make it up to you?” and nothing else? Could you look them in the eye and apologize sincerely? If your apology was sincere, how would they feel? And how would you feel? Next time you make a mistake, why not try to apologize like you mean it? What could it hurt? Why not try?
What if every day you had to thank five people? Could you find five things to be thankful for? Would you make the effort to deliver the thanks face-to-face? Could you do it for two days? Could you do it for a week? How would you feel if you actually did it for a week? How would the people around you feel? How do you feel about trying it?
What if every day you tried to be a leader?
Image credit – Pedro Ribeiro Simões
A Healthy Dose of Heresy
Anything worth its salt will meet with resistance. More strongly, if you get no resistance, don’t bother.
There’s huge momentum around doing what worked last time. Same as last time but better; build on success; leverage last year’s investment; we know how to do it. Why are these arguments so appealing? Two words: comfort and perceived risk. Why these arguments shouldn’t be so appealing: complacency and opportunity cost.
We think statically and selectively. We look in the rear view mirror, write down what happened and say “let’s do that again.” Hey, why not? We made the initial investment and did the leg work. We created the script. Let’s get some mileage out of it. And we selectively remember the positive elements and actively forget the uncertainty of the moment. We had no idea it was going to work, and we forget that part. It worked better than we imagined and we remember the “working better” part. And we forget we imagined it would go differently. And we forget that was a long time ago and we don’t take the time to realize things are different now. The rules are dynamic, yet our thinking is static.
We compete with the past tense. We did this and they did that, and, therefore, that’s what will happen again. So wrong. We’ve got smarter; they’ve got smarter; battery capacity has tripled; power electronics are twice as efficient; efficiency of solar panels has doubled; CRISPR can edit our genes. The rules are different but the sheet music hasn’t changed. The established players sing the same songs and the upstarts cut them off at the knees.
If you were successful last time and everyone thinks your proposed project is a good idea, ball it up and throw it in the trash. It reeks of stale thinking. If your project plan is dismissed by the experts because it contradicts the tired recipe of success, congratulations! You may be onto something! Stomp on the accelerator and don’t look back.
If your proposal meets with consensus, hang your head and try again. You missed the mark. If they scream “heretic” and want to burn you at the stake, double down. If the CEO isn’t adamantly against it, you’re not trying hard enough. If she throws you out of the room half way through your presentation, you may have a winner!
Yesterday’s recipes for success are today’s worn paths of mediocracy.
If you’re confident it will work, you shouldn’t be. If you’re filled with electric excitement it might actually work and scared to death it might end in a wild fireball of burn metal toxic fumes, what are you waiting for?!
Heretics were burned at the stake because the establishment knew they were right. Goddard was right and the New York Times wasn’t. Decades later they apologized – rockets work is space. And though the Qualifiers and Pope Paul V were unanimous in their dismissal of Galileo and Copernicus, the heretics had it right – the sun is at the center of everything.
Don’t seek out dissent, but if all you get is consensus, be wary. Don’t be adversarial, but if all you get is open arms, question your thesis. Don’t be confrontational, but if all you get is acceptance, something’s wrong.
If there’s no resistance, work on something else.
Image Credit WPI (Robert Goddard’s Lab)