The Illusion of Planning
Planning is important work, but it’s non-value added work. Short and sweet – planning is waste.
Lean has taught us waste should be reduced, and the best way to reduce waste from planning is to spend less time planning. (I feel silly writing that.) Lean has taught us to reduce batch size, and the best way to reduce massive batch size of the annual planning marathon is to break it into smaller sessions. (I feel silly writing that too.)
Unreasonable time constraints increase creativity. To create next year’s plan, allocate just one for the whole thing. (Use a countdown timer.) And, because batch size must be reduced, repeat the process monthly. Twelve hours of the most productive planning ever, and countless planning hours converted into value added work.
Defining the future state and closing the gap is not the way to go. The way to go is to define the current state (where you are today) and define how to move forward. Use these two simple rules to guide you:
- Do more of what worked.
- Do less of what didn’t.
Here’s an example process:
The constraint – no new hires. (It’s most likely the case, so start there.)
Make a list of all the projects you’re working on. Decide which to stop right now (the STOP projects) and which you’ll finish by the end of the month (the COMPLETED projects). The remaining projects are the CONTINUE projects, and, since they’re aptly named, you should continue them next month. Then, count the number of STOP and COMPLETED projects – that’s the number of START projects you can start next month.
If the sum of STOP and COMPLETED is zero, ask if you can hire anyone this month. If the answer is no, see you next month.
If the sum is one, figure out what worked well, figure out how to build on it, and define the START project. Resources for the START project should be the same as the STOP or COMPLETED project.
If the sum is two, repeat.
Now ask if you can hire anyone this month. If the answer is no, you’re done. If the answer is yes, define how many you can hire.
With your number in hand, and building on what worked well, figure out the right START project. Resources must be limited by the number of new hires, and the project can’t start until the new hire is hired. (I feel silly writing that, but it must be written.) Or, if a START project can’t be started, use the new resource to pile on to an important CONTINUE project.
You’re done for the month, so send your updated plan to your boss and get back to work.
Next month, repeat.
The process will evolve nicely since you’ll refine it twelve times per year.
Ultimately, planning comes down to using your judgment to choose the next project based on the resources you’re given. The annual planning process is truly that simple, it’s just doesn’t look that way because it’s spread over so many months. So, if the company tells its leaders how many resources they have, and trusts them to use good judgment, yearly planning can be accomplished in twelve hours per year (literally). And since the plan is updated monthly, there’s no opportunity for emergency re-planning, and it will always be in line with reality.
Less waste and improved quality – isn’t that what lean taught us?
A Viral Infection Of Alignment And Consensus
Alignment is all the rage. The thinking goes: If we’re all pulling in the same direction, we’ll get their faster. There’s truth to that – the boat does go faster with more oars and more backs pulling on them. And as long as the boat’s heading in the right direction, alignment holds water. But here’s the dark side – while we’re all pulling on our own oar, we’re all sitting in the same boat. And when the boat is scuttled by a fast moving storm, we all go down together – in alignment.
Alignment, overdone, is not resilient. One longboat lost at sea doesn’t spell the end of for the clan, unless there’s only one boat. With the remaining boats, the Jarl can continue with trading neighboring clans while the shipwrights turn oaks into a beautiful replacement. Certainly a setback, but the Vikings survived. But more than survival, it’s also an opportunity for the shipwrights to try a new technology and make the new longboat faster than the old one.
Consensus isn’t the same as alignment, it but it too is in fashion and it too has a dark underbelly. Yes, it creates convergence on a go-forward plan, and, yes, everyone knows the plan and is good with it. But consensus dulls to the lowest common denominator and creates middle-of-the-of-the-road plans devoid of edge, sizzle, and excitement. Consensus reduces diversity of thinking, and, therefore, reduces resilience.
Consensus, unbridled, reduces thinking to a single strain which can be completely wiped out by an unforeseen antibiotic of change. But with consensus in check, many strains of thinking swim about the organization and no one environmental factor can wipe them out. When protected from consensus, diversity of thinking spawns parallel competing mindsets which improve corporate survivability.
Businesses are too complex to predict all possible bacterial and viral attacks. And even if you could, there are just too many too many of them. It’s far too costly for an organization to be robust to all possibilities.
It’s time to acknowledge knowable threats will find you at unpredictable times. And it’s time to evolve into a resilient organization.
How Things Really Happen
From the outside it’s unclear how things happen; but from the inside it’s clear as day. No, it’s not your bulletproof processes; it’s not your top down strategy; and it’s not your operating plans. It’s your people.
At some level everything happens like this:
An idea comes to you that makes little sense, so you drop it. But it comes again, and then again. It visits regularly over the months and each time reveals a bit of its true self. But still, it’s incomplete. So you walk around with it and it eats at you; like a parasite, it gets stronger at your expense. Then, it matures and grows its voice – and it talks to you. It talks all the time; it won’t let you sleep; it pollutes you; it gets in the way; it colors you; and finally you become the human embodiment of the idea.
And then it tips you. With one last push, it creates enough discomfort to roll over the fear of acknowledging its existence, and you set up the meeting.
You call the band and let them know it’s time again to tour. You’ve been through it before and you all know deal. You know your instruments and you know how to harmonize. You know what they can do (because they’ve done it before) and you trust them. You sing them the song of your idea and they listen. Then you ask them to improvise and sing it back, and you listen. The mutual listening moves the idea forward, and you agree to take a run at it.
You ask how it should go. The lead vocalist tells you how it should be sung; the lead guitar works out the fingering; the drummer beats out the rhythm; and the keyboardist grins and says this will be fun. You all know the sheet music and you head back to your silos to make it happen.
In record time, the work gets done and you get back together to review the results. As a group you decide if the track is good enough play in public. If it is, you set up the meeting with a broader audience to let them hear your new music. If it’s not, you head back to the recording studio to amplify what worked and dampen what didn’t. You keep re-recording until your symphony is ready for the critics.
Things happen because artists who want to make a difference band together and make a difference. With no complicated Gantt chart, no master plan, no request for approval, and no additional resources, they make beautiful music where there had been none. As if from thin air, they create something from nothing. But it’s not from thin air; it’s from passion, dedication, trust, and mutual respect.
The business books over-complicate it. Things happen because people make them happen – it’s that simple.
The Ladder Of Your Own Making
There’s a natural hierarchy to work. Your job, if you choose to accept it is to climb the ladder of hierarchy rung-by-rung. Here’s how to go about it:
Level 1. Work you can say no to – Say no to it. Say no effectively as you can, but say it. Saying no to level 1 work frees you up for the higher levels.
Level 2. Work you can get someone else to do – Get someone else to do it. Give the work to someone who considers the work a good reach, or a growth opportunity. This isn’t about shirking responsibility, it’s about growing young talent. Maybe you can spend a little time mentoring and the freed up time doing higher level work. Make sure you give away the credit so next time others will ask you for the opportunity to do this type of work for you.
Level 3. Work you’ve done before, but can’t wiggle out of – Do it with flair, style, and efficiency; do it differently than last time, then run away before someone asks you to do it again. Or, do it badly so next time they ask someone else to do it. Depending on the circumstance, either way can work.
Level 4. Work you haven’t done before, but can’t wiggle out of – Come up with a new recipe for this type of work, and do it so well it’s unassailable. This time your contribution is the recipe; next time your contribution is to teach it to someone else. (See level 2.)
Level 5. Work that scares others – Figure out why it scares them; break it into small bites; and take the smallest first bite (so others can’t see the failure). If it works, take a bigger bite; if it doesn’t, take a different smallest bite. Repeat, as needed. Next time, since you’ve done it before, treat it like level 3 work. Better still, treat it like level 2.
Level 6. Work that scares you – Figure out why it scares you, then follow the steps for level 5.
Level 7. Work no one knows to ask you to do – You know your subject matter better than anyone, so figure out the right work and give it a try. This flavor is difficult because it comes at the expense of work you’re already signed up to do and no one is asking you to do it. But you should have the time because you followed the guidance in the previous levels.
Level 8. Work that obsoletes the very thing that made your company successful – This is rarified air – no place for the novice. Ultimately, someone will do this work, and it might as well be you. At least you’ll be able to manage the disruption on your own terms.
In the end, your task, if you choose to accept it, is to migrate toward the work that obsoletes yourself. For only then can you start back at level 1 on the ladder of your own making.
The Power Of Pizza
When you want to recognize people for their wonderful work, dollar-for-dollar, the best value on the planet is pizza.
Research shows monetary rewards aren’t all that rewarding, and the thinking carries with pizza – you can buy bargain brand, wood-fired, free-range, vegan, or designer, the power of pizza is independent of pedigree. The power of pizza is about the forethought and intention to make the celebration happen. You must realize that people made the extra effort; you must decide you want to tell them you appreciate their work; you must figure out the leaders of the folks that did the work so you can let them know their people did a great job and that you’re buying them pizza; you must schedule the venue (the venue doesn’t actually matter); send out the invitation; order the pizza; and host the celebration. With pizza, you spend your time on behalf of their behavior, and that’s special.
Here are the rules of pizza:
Rule 1 – Buy 50% more pizza than is reasonable. They didn’t skimp on their effort, so don’t skimp on the pizza. When you buy extra pizza, you tell people they matter; you tell them they’re worth it; you tell them that no one will go hungry on your watch. One good outcome – they take the extra pizza back to the office, their coworkers smell it, and ask where they got it. Now, they get to tell the story of how, out of the blue, they were invited to a pizza party to recognize their excellent performance. But the best possible outcome is the extra pizza is taken home and given to the kids. The kids get pizza, and the proud parent gets to tell the story of their special lunch. Leftover pizza has real power.
Rule 2 – Buy a small salad. For those that want to celebrate yet watch their waste line, salad says you thought of them. But don’t buy a big salad because even the most vigilant salad-eaters celebrate with pizza. (See rule 1.)
Rule 3 – There is a natural hierarchy of drinks, and higher is better. At the top are beer and wine (no need to explain); next is fully caffeinated, full calorie soda; next is diet soda; next is flavored seltzer (it’s the bubbles that matter). If you’re considering anything less than seltzer, don’t.
Rule 4 – Keep the agenda simple. Here’s a good template: 1. Thank you for your amazing work. 2. What kind of pizza do you want?
Rule 5 – Use pizza sparingly. It’s power is inversely proportional to frequency.
People don’t want compensation for their extra special work, they want recognition. And pizza could be the purest form of recognition – simple, straightforward, and tangible.
In reality, pizza has nothing to do with pizza, and has everything to do with honest, heartfelt recognition of exceptional work.
Image credit – Jeff Kubina.
Summoning The Courage To Ask
I’ve had some great teachers in my life, and I’m grateful for them. They taught me their hard-earned secrets, their simple secrets. Though each had their own special gifts, they all gave them in the same way – they asked the simplest questions.
Today’s world is complex – everything interacts with everything else; and today’s pace is blistering – it’s tough to make time to understand what’s really going on. To battle the complexity and pace, force yourself to come up with the simplest questions. Here are some of my favorites:
For new products:
- Who will buy it?
- What must it do?
- What should it cost?
For new technologies:
- What problem are you trying to solve?
- How will you know you solved it?
- What work hasn’t been done before?
For new business models:
- Why are you holding onto your decrepit business model?
For problems:
- Can you draw a picture of it on one page?
- Can you make it come and go?
For decisions:
- What is the minimum viable test?
- Why not test three or four options at the same time?
For people issues:
- Are you okay?
- How can I help you?
For most any situation:
- Why?
These questions are powerful because they cut through the noise, but their power couples them to fear and embarrassment – fear that if you ask you’ll embarrass someone. These questions have the power to make it clear that all the activity and hype is nothing more than a big cloud of dust heading off in the wrong direction. And because of that, it’s scary to ask these questions.
It doesn’t matter if you steal these questions directly (you have my permission), twist them to make them your own, or come up with new ones altogether. What matters is you spend the time to make them simple and you summon the courage to ask.
Image credit — Montecruz Foto.
Can It Grow?
If you’re working in a company you like, and you want it to be around in the future, you want to know if it will grow. If you’re looking to move to a new company, you want to know if it has legs – you want to know if it will grow. If you own stock, you want to know if the company will grow, and it’s the same if you want to buy stock. And it’s certainly the case if you want to buy the whole company – if it can grow, it’s worth more.
To grow, a company has to differentiate itself from its competitors. In the past, continuous improvement (CI) was a differentiator, but today CI is the minimum expectation, the cost of doing business. The differentiator for growth is discontinuous improvement (DI).
With DI, there’s an unhealthy fascination with idea generation. While idea generation is important, companies aren’t short on ideas, they’re short on execution. But the one DI differentiator is the flavor of the ideas. To do DI a company needs ideas that are radically different than the ones they’re selling now. If the ideas are slightly twisted variants of today’s products and business models, that’s a sure sign continuous improvement has infiltrated and polluted the growth engine. The gears of the DI engine are gummed up and there’s no way the company can sustain growth. For objective evidence the company has the chops to generate the right ideas, look for a process that forces their thinking from the familiar, something like Jeffrey Baumgartner’s Anticonventional Thinking (ACT).
For DI-driven growth, the ability to execute is most important. With execution, the first differentiator is how the company investigates radically new ideas. There are three differentiators – a focus on speed, a “market first” approach, and the use of minimum viable tests (MVTs). With new ideas, it’s all about how fast you can learn, so speed should come through loud and clear. Without a market, the best idea is worthless, so look for “market first” thinking. Idea evaluation starts with a hypothesis that a specific market exists (the market is clearly defined in the hypothesis) which is evaluated with a minimum viable test (MVT) to prove or disprove the market’s existence. MVTs should error on the side of speed – small, localized testing. The more familiar minimum viable product (MVP) is often an important part of the market evaluation work. It’s all about learning about the market as fast as possible.
Now, with a validated market, the differentiator is how fast company can rally around the radically new idea and start the technology and product work. The companies that can’t execute slot the new project at the end of their queue and get to it when they get to it. The ones that can execute stop an existing (lower value) project and start the new project yesterday. This stop-to-start behavior is a huge differentiator.
The company’s that can’t execute take a ready-fire-aim approach – they just start. The companies that differentiate themselves use systems thinking to identify gaps in resources and capabilities and close them. They do the tough work of prioritizing one project over another and fully staff the important ones at the expense of the lesser projects. Rather than starting three projects and finishing none, the companies that know how to do DI start one, finish one, and repeat. They know with DI, there’s no partial credit for a project that’s half done.
All companies have growth plans, and at the highest level they all hang together, but some growth plans are better than others. To judge the goodness of the growth plan takes a deeper look, a look into the work itself. And once you know about the work, the real differentiator is whether the company has the chops to execute it.
Image credit – John Leach.
The Safest Bet Is Far Too Risky
It’s harder than ever to innovate, and getting harder.
The focus on growth can be empowering, but when coupled with signed-in-blood accountability, empowering turns to puckering. It’s an unfair double-bind. Damned if you try something new and it doesn’t work, and damned if you stay the course and don’t hit the numbers. The most popular approach seems to be to do more of what worked. A good approach, but not as good as it’s made out to be.
Doing more of what worked is good, and it works. But it can’t stand on its own. With today’s unreasonable workloads, every resource is fully booked and before doing more of anything, you’ve got to do less of something else. ‘More of what worked’ must walk hand-in-hand with ‘Stop what didn’t work.’ Without stopping, without freeing up resources, ‘more of what worked’ is insufficient and unsustainable.
But even the two together are insufficient, and there’s a much needed third leg to stabilize the stool – ‘starting new work.’ Resources freed by stopping are allocated to starting new work, and this work, also known as innovation, is the major source of growth.
‘More of what worked’ is all about productivity – doing more with the same resources; and so is ‘stopping what didn’t work’ – reclaiming and reallocating ineffective resources. Both are important, but more importantly – they’re not innovation.
As you’re well aware, the rules are changing faster than ever, and at some point what worked last year won’t work this year. The only way to stay ahead of a catastrophe is to make small bets in unproven areas. If the bets are successful, they turn into profitable innovation and growth. But the real value is the resiliency that comes from the ritualistic testing/learning cycles.
Going all-in on what worked last year is one of the riskiest bets you can make.
An Injection Of Absurdity
Things are cyclic, but there seems to be no end to the crusade of continuous improvement. (Does anyone remember how the Crusades turned out?) If only to take the edge off, there needs to be an injection of absurdity.
There’s no pressure with absurdity – no one expects an absurd idea to work. If you ask for an innovative idea, you’ll likely get no response because there’s pressure from the expectation the innovative idea must be successful. And if you do get a response, you’ll likely get served a plain burrito of incremental improvement garnished with sour cream and guacamole to trick your eye and doused in hot sauce to trick your palate. If you ask for an absurd idea, you get laughter and something you’ve never heard before.
When drowning in the sea of standard work, it takes powerful mojo to save your soul. And the absurdity jetpack is the only thing I know with enough go to launch yourself to the uncharted oasis of new thinking. Immense force is needed because continuous improvement has serious mass – black hole mass. Like with light, a new idea gets pulled over the event horizon into the darkness of incremental thinking. But absurdity doesn’t care. It’s so far from the center lean’s pull is no match.
But to understand absurdity’s superpower is to understand what makes things absurd. Things are declared absurd when they cut against the grain of our success. It’s too scary to look into the bright sun of our experiences, so instead of questioning their validity and applicability, the idea is deemed absurd. But what if the rules have changed and the fundamentals of last year’s success no longer apply? What if the absurd idea actually fits with the new normal? In a strange Copernican switch, holding onto to what worked becomes absurd.
Absurd ideas sometimes don’t pan out. But sometimes they do. When someone laughs at your idea, take note – you may be on to something. Consider the laughter an artifact of misunderstanding, and consider the misunderstanding a leading indicator of the opportunity to reset customer expectations. And if someone calls your idea absurd, give them a big hug of thanks, and get busy figuring out how to build a new business around it.
Retreating From Activity To Progress
Every day is a meeting-to-meeting sprint with no time for some of the favorite fundamentals like the bathroom and food. Though crazy, it’s the norm and no longer considered crazy. But it is crazy. When you’re too busy to answer emails that’s one thing, but when you’re too busy to realize answering email isn’t progress, that’s a problem.
Our in-boxes are full; our plates are full; our calendars are full. But our souls are empty.
You’re clear on what must get done over the next 48 hours, but the pace is too fast to know why the work is important in the first place. (One of the fastest way to complete a task is to deem it unimportant and don’t do it – all of the done with none of the work.) But it’s worse. It’s too fast to do the work no one is asking you to do, and it’s too fast to do the work you were born to do.
We have confused activity with progress; and with all the activity, we’ve forgotten what it feels like to think. We need a retreat.
The perfect retreat eliminates distractions and gives people time to think. After a nice Sunday flight into Boston, it’s a calm two hour coach ride to rural New Hampshire. (Done right, a coach is soothing.) After pickup it’s a fifteen minute drive to a remote trail head. With a pack on your back, it’s a five minute walk to a big, remote cabin. No cell service, no power, no interruptions.
As you enter the cabin, you unload all your electronics into bin (Yes, your smart phone goes in the bin.) which is locked away for the remainder of the retreat. You race to get the best bunk, drop your gear, and share a meal with your fellow over achievers. (Y es, the non-disclosures are signed so you can actually talk to each other.)
The first day is all about recognizing the discomfort that comes with no distractions and your natural tendency to create distraction to sooth your discomfort. The objective is to help you remember what if feels like to have more than 30 seconds of uninterrupted time. Then, once you remember, it’s time to actually think.
There are no video conferencing capabilities (or electricity) in the cabin, so all work is done the old-fashioned way – face-to-face. The objective is to help you remember the depth, complexity, and meaning that come when working with actual faces. Yes, there’s good facilitated discussion, but the topics aren’t as important as remembering how to share and trust.
There is ritualistic work of cooking, cleaning, splitting the wood, and stoking the fire. The objective is to remember what it feels like to connect the mind to the body and to connect with others. And, there’s a group hike every day to remember what it feels like to be grounded in the natural world. (Sometimes we forget the business world is actually part of the natural world.)
After the rituals and hikes have done their magic, the right discussions start to emerge, and deep contemplation dances with deep conversation. Though there’s a formal agenda, no matter. With the group’s awaking, the right agenda emerges.
At the end of the retreat, there’s immense sadness. This is a sign of importance and deep learning. And after the hugs and tears, there’s a spontaneous commitment to do it next year. With eyes dried, it’s off the bus station and then to the airport.
You don’t have to wait for the perfect retreat to start your journey. Start your practice by carving out an hour a day and set a recurring meeting with yourself and turn off your email. And start by asking yourself why. Those two tricks will set you on your way.
And if you’re interested in a real retreat, let me know.
Slower Can Be Faster
There are two types of drivers – those that speed as a way of life and those that speed when they forget to pay attention. But for both, speed kills.
For the everyday speeder, life is an opportunity to push limits and break rules. Every highway is a Formula One course; every traffic light an opportunity to run the red light. They know every speed trap and have honed their drag racing tactics, and, mostly, they don’t get caught. And driving this way year-on-year, they no longer realize they’re speeding and no longer see it as dangerous behavior. They see themselves as invincible and even take pride in their reckless behavior, and that’s dangerous.
If you’ve made the product before, or you’ve done something similar, you know all the traps and a fast business decision isn’t bad. But fast all the time isn’t the answer. When you’re in country that drives on the wrong side of the road and you approach a round-about, slower is better. When you don’t understand the road signs; when your left-right decisions are backward; and you don’t know how to negotiate the big circle of traffic, it’s pretty clear slower is better. But if you’ve been successful with your habitual speeding, you’ll likely accelerate into the traffic circle, rear-end someone, and flip yourself end others into a deadly pileup. And if you survive, likely curse those stupid drivers who didn’t know enough to get out of your way.
But there’s a simpler case that seals it. When you don’t know where you’re going, clicking off miles on the odometer isn’t progress, it’s just activity (that burns fuel). In these conditions, going fast in the wrong directions is worse than not driving at all. When you’re lost, it doesn’t make sense to speed.
The conscientious speeder keeps two hands on the wheel and maintain safe separation distance at upwards of ten car lengths. For them, every day is an opportunity to check the tire pressure and check the dipstick for oil. They plan out the trip, check the road conditions, and pay attention. (Cell phones off for these folks.)
Today’s cars are quiet and smooth which makes for calm, comfortable driving. But they’re also powerful, and, even with good intentions, a brief lapse in attention can generate breakneck speed. The conscientious speeder backs off the accelerator as soon as attention returns, and the danger is low. But, when a lapse in attention overlaps with a quick change in driving conditions (a deer runs across the highway, or the car in front jacks on the breaks), you can’t react quickly enough, and that’s dangerous.
If you’ve made the product before, or you’ve done something similar, and you checked the tire pressure, a lapse in attention once in a while isn’t bad. But doing the same drive every day and lulling yourself into a road trip stupor isn’t the answer. When you’re cruising over the limit on a well-lit, dead-straight highway, in your serenity you can easily speed past your exit without knowing. And the faster you’re going, the more exits you’ll miss until you realize it.
Sometimes, when the conditions are right, slower is faster.