Author Archives: Mike Shipulski

About Mike Shipulski

Mike Shipulski brings together people, culture, and tools to change engineering behavior. He writes daily on Twitter as @MikeShipulski and weekly on his blog Shipulski On Design.

Diabolically Simple Prototypes

GUEST POST from Mike Shipulski

Ideas are all talk and no action. Ideas are untested concepts that have yet to rise to the level of practicality.  You can’t sell an idea and you can’t barter with them. Ideas aren’t worth much.

A prototype is a physical manifestation of an idea. Where ideas are ethereal, prototypes are practical. Where ideas are fuzzy and subject to interpretation, prototypes are a sledge hammer right between the eyes.  There is no arguing with a prototype. It does what it does and that’s the end of that. You don’t have to like what a prototype stands for, but you can’t dismiss it. Where ideas aren’t worth a damn, prototypes are wholly worth every ounce of effort to create them.

If Camp A says it will work and Camp B says it won’t, a prototype will settle the disagreement pretty quickly.  It will work or it won’t.  And if it works, the idea behind it is valid.  And if it doesn’t, the idea may be valid, but a workable solution is yet-to-be-discovered.  Either way, a prototype brings clarity.

Prototypes are not elegant. Prototypes are ugly.

The best ones do one thing – demonstrate the novel idea that underpins them. The good ones are simple, and the best ones are diabolically simple. It is difficult to make diabolically simple prototypes (DSPs), but it’s a skill that can be learned.  And it’s worth learning because DSPs come to life in record time. The approach with DSPs is to take the time up front to distill the concept down to its essence and then its all-hands-on-deck until it’s up and running in the lab.

But the real power of the DSP is that it drives rapid learning.  When a new idea comes, it’s only a partially formed.  The process of trying to make a DSP demands the holes are filled and blurry parts are brought into focus.  The DSP process demands a half-baked idea matures into fully-baked physical embodiment.  And it’s full-body learning.  Your hands learn, your eyes learn and your torso learns. If you find yourself in a disagreement of ideas, stop talking and start making a prototype. If the DSP works, the disagreement is over.

Diabolically simple prototypes end arguments. But, more importantly, they radically increase the pace of learning.

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Understanding the Trajectory of the Competitive Landscape

GUEST POST from Mike Shipulski

If you want to gain ground on your competition you’ve first got to know where things stand. Where are their advantages? Where are your advantages? Where is there parity? To quickly understand the situations there are three tricks: stay at a high level, represent the situation in a clear way and, where possible, use public information from their website.

A side-by-side comparison of the two companies’ products is the way to start.  Create a common set of axes with price running south to north and performance (or output) running west to east. Make two copies and position them side-by-side on the page – yours on the left and theirs directly opposite on the right. Go to their website (and yours) and make a list of every product, its price, and its output. (For prices of their products you may have to engage your sales team and your customers.) For each of your products place a symbol (the company logo) on your performance-price landscape and do the same for their products on their landscape.

It’s now clear who has the most products, where their portfolio outflanks yours and where you outflank them. The clarity and simplicity will help everyone see things as they are – there may be angst but there will be no confusion and no disagreement. The picture is clear. But it’s static.

The areal differences define the gaps to close and the advantages to exploit. Now it’s time to define the momentum and trajectories of the portfolios to add a dynamic element. For your most recent product launch add a one next to its logo, for the second most recent add a two and for the third add three. These three regions of your portfolio are your most recent focus areas. This is your trajectory and this is where you have momentum. Extend and arrow in the direction of your trajectory. If you stay the course, this is where your portfolio will add mass. Do the same for your competitor and compare arrows.

You now have a glimpse into the future. Are your arrows pointing in the same directions as theirs? Are they located in the same regions? How would feel if both companies continued on their trajectories? With this addition, you have a glimpse into the stay-the-course future. But will they stay the course? For that, you need to look at the patent landscape.

Do a patent search on their patents and applications over the previous year and represent each with its most descriptive figure. Write a short thematic description for each group like themes and draw a circle around them. Mark the circle with a one to denote last year’s patents.  Repeat the process for two years ago and three years ago and mark each circle accordingly.

Now you have objective evidence of the future. You know where they have been working and you know where they want to go. You have more than a glimpse into the future.

You know their preferred trajectories.  Reconcile their preferred trajectories with their price-performance landscapes and arrows 1, 2 and 3.  If their preferred trajectories line up with their product momentum, it’s business as usual for them.  If they contradict, they are playing a different game. And because it takes several years for patent applications to publish, they’ve been playing a new game for a while now.

Repeat the process for your patent landscape and flop it onto your performance-price landscape. I’m not sure what you’ll see, but you’ll know it when you see it. Then, compare yours with theirs and you’ll know what the competitive landscape will look like in three years. You may like what you see, or not. But, the picture will be clear. There may be discomfort, but there can be no arguments.

This process can also be used in the acquisition process to get a clear picture a company’s future state. In that way, you can get a calibrated view three years into the future and use your crystal ball to adjust your offer price accordingly.

image credit – Rob Ellis

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Mental Models and Dangerous Expectations

GUEST POST from Mike Shipulski

Expectations result from mental models and wants. When you have a mental model of a system and you want the system to behave in a way that fits your mental model, that’s an expectation. And when you want the system to behave differently than your mental model, that’s also an expectation. When the system matches your wants, the world is good. And when your wants are out of line with the system, the world is not so good.

Speculation is not expectation.

Speculation happens when you propose, based on your mental model, how the system will behave. With speculation, there’s no attachment to the result, no wanting it to be one way or another. There’s just watching and learning.  If the system confirms your mental model, the applicability of the model is reinforced (within this narrow context.) And when the system tramples your mental model, you change your mental model. No attachment, no stress, no whining, no self-judgement.

When doing work that’s new, system response is unknown. Whether the system will be exercised in a new way or it’s an altogether new system, metal models are young and untested. When it’s the first time, speculation is the way to go. Come up with your best mental model, run the experiment and record the results. After sitting in data, refine your mental model and repeat.   If your mental model doesn’t fit the system, don’t judge yourself negatively, don’t hold yourself back, don’t shy away. Refine your mental model and build-test-learn as fast as you can. And if your mental model fits the system, don’t judge yourself in a positive way. This was your first test and you don’t understand the system fully. Refine your model and test for a deeper understanding.  [Note – systems have been known to temporarily conform to mental models to obfuscate their true character.]

When doing work that’s new, expectation gets in the way.

If you expect your models to be right and they’re not, you learning rate is slower than your expectations. That’s not such a big deal on its own, but the rippling self-judgement can be crippling. Your emotional state becomes fragile and it’s difficult to keep pushing through the work. You doubt yourself and your abilities; you won’t put yourself out there; and you won’t propose radical mental models for fear of looking like you don’t know what you’re doing. You won’t run the right experiments and you never the understand the fundamental character of the system. You block your own learning.  If you expect your models won’t to fit the system, you block your learning from the start. Sometimes your lack of confidence blocks you from even trying. [Note – not trying is the only way to guarantee you won’t learn.]

Within the domain of experiments, mental models and generic systems, it’s relatively easy to see the wisdom of speculations and the perils of expectations, where wanting leads to judging and judging leads to self-blocking. But it’s not so easy to see in the domain of life where experiments are replaced with personal interactions and generic systems are replaced with everyday situations and mental models are ever-present. But in both domains the rules and consequences are the same.

Just as in the lab, in day-to-day life expectations are dangerous.

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Moving Away from Best Practices

GUEST POST from Mike Shipulski

If the work is new, there is no best practice.

When you read the best books you’ll understand what worked in situations that are different than yours. When you read the case studies you’ll understand how one company succeeded in a way that won’t work in yours. The best practices in the literature worked in a different situation, in a different time and under a different cultural framework. They won’t work best for you.

Just because a practice worked last time doesn’t mean it’s a best practice this time. More strongly, just because it worked last time doesn’t mean it was best last time. There may have been a better way.

When a problem has high urgency it should be solved in a fast way, but if urgency is low, the problem should be solved in an efficient way. Which way is best? If the consequences of getting it wrong are severe, analyses and parallel solutions are skillful, but if it’s not terribly important to get it right, a lower cost way is better. But is either the best way?

The best practices found in books are usually described a high level of abstraction using action words, block diagrams, and arrows. And when described at such a high level, they’re not actionable. You may know all the major steps, but you won’t know how each step should be done. And if the detail is provided, the context of your situation is different and the prescriptive steps don’t apply.

Instead of best practices, think effective practices. Effective because the people doing the work can do it effectively. Effective because it fits with the capability and capacity of the people doing the work. Effective because it meshes with existing processes and projects.  Effective because it fits with your budget, timeline and risk profile. Effective because it fits with your company values.

Because all our systems are people systems, there are no best practices.

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Hey Innovators! Why not do new work?

GUEST POST from Mike Shipulski

Doing new work isn’t difficult, thinking about is difficult.  Stop thinking and start starting; there’s no other way.

If you’re a scientist, everything has a half-life.  If you’re Buddhist, everything is impermanent.  If you’re a CEO, your business model is out of gas.  It’s scary to admit everything goes away, but it’s far scarier to deny it.

Just because an idea is threatening doesn’t mean it’s threatening. It probably means it’s one hell of a good idea.

If it’s not different, it can’t be innovation.

Projects take too long because they’re poorly defined.  On a single page, define the novel usefulness the project will deliver, make a crude prototype and show it to potential customers. Refine, learn and repeat. Then launch it.  (This is the essence of Lean Startup without all the waste.)

If I could choose my competition, I’d choose to compete with no one.

Failure is never the right word.  Don’t use it.  Ever.  (Even failing forward or forward failing should not be used.)  No one wants to fail.  No one will ever want to fail. Replace of the word “failure” with “learning” and learn quickly.

If you’re not scared, you’re not doing innovation.

Companies offer more-with-less for as long as they can; and when there’s nothing left they offer more-with-more. It would be better to offer less-with-far-less.

For Winston Churchill, the only thing to fear was fear itself.  For business, the only thing to fear is the cow path of success.

image credit – JasonParis

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Diabolically Simple Questions

GUEST POST from Mike Shipulski

Today’s work is complicated with electronic and mechanical subsystems wrapped in cocoons of software; coordination of matrixed teams; shared resources serving multiple projects; providing world class services in seventeen languages on four continents. And the complexity isn’t limited to high-level elements. There is a living layer of complexity growing on all branches of the organization right down to the leaf level.

Complexity is real, and it complicates things. To run projects and survive in the jungle of complexity it’s important to know how to put the right pieces together and provide the right answers. But as a leader, it’s more important to slash through the complexity and see things as they are. And for that, it’s more important to know how to ask diabolically simple questions (DSQ).

Project timelines are tight and project teams like to start as soon as they can. Too often teams start without clarity on what they’re trying to achieve. At these early stages, the teams make record progress in the wrong direction.

The leader’s job is to point them in the right direction, and here’s the DSQ to set them on their way: What are you trying to achieve?

There will likely be some consternation, arm waving, and hand wringing. After the dust settles, help the team further tighten down the project with this follow-on DSQ: How will you know you achieved it?

For the previous two questions, there are variants that work equally well for work that closer to the fuzzy front end: What are you trying to learn? and How will you know you learned it?

There is no such thing as a clean-sheet project and even the most revolutionary work builds on the existing system. Though the existing business model, service or product has been around for a long time, the project team doesn’t really know how it works. They know they should know but they’re afraid to admit it. Let them off the hook with this beauty: How does it work today?

After the existing system is defined with a simple block diagram (which could take a couple weeks) it’s time to help the project team focus their work. The best DSQ for the job: How is it different from the existing system? If the list is too long there’s too much newness and if it’s too short there’s not enough novelty. If they don’t know what’s different, ask them to come back when they know.

After the “what’s different” line of questioning, the team must be able to dive deeper. For that, it’s time one of the most powerful DSQs in the known universe: What problem are you trying to solve? Expect frustration and complicated answers. Ask them to take some time and for each problem describe it on a single page using less than ten words.  Suggest a block diagram format and ask them to define where and when the problem occurs. (Hint: a problem is always between two components/elements of the system.) And the tricky follow-on DSQ: How will you know you solved it? No need to describe the reaction to that one.

Though not an exhaustive list, here are some of my other favorite DSQs:

Who will buy it, how much will they pay, and how do you know?

Have we done this before?

Have you shown it to a real customer?

How much will it cost and how do you know?

Whose help do we need?

If the prototype works, will we actually do anything with it?

Diabolically simple questions have the power to heal the project teams and get them back on track. And over time, DSQs help the project teams adopt a healthy lifestyle. In that way, DSQs are like medicine – they taste bad but soon enough you feel better.

image credit: © Jerry Goldner Profiles of Nature

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How to Quantify Novel, Useful and Successful

GUEST POST from Mike Shipulski

Is it disruptive? Is it innovative? Two meaningless questions. Two questions to stop asking.

More strongly, stop using the words “disruptive” and “innovative” altogether. Strike them from your vocabulary and replace them with novel, useful, and successful.

Argument is unskillful but analysis is skillful. And what’s needed for analysis is a framework and some good old-fashioned quantification. To create the supporting conditions for an analysis around novelty, usefulness, and successfulness, I’ve created quantifiable indices and a process to measure them. The process starts with a prototype of a new product, service or business model which is shown to potential customers (real people who do work in the space of interest.)

The Novelty Index

The Novelty Index measures the difference of a product, service or business model from the state-of-the-art. Travel to the potential customer and hand them the prototype. With mouth closed and eyes open, watch them use the product or interact with the service. Measure the time it takes them to recognize the novelty of the prototype and assign a value from 0 to 5. (Higher is better.)
5 – Novelty is recognized immediately after a single use (within 5 seconds.)
4 – Novelty is recognized after several uses (30 seconds.)
3 – Novelty is recognized once a pattern emerges (10-30 minutes.)
2 – Novelty is recognized the next day, once the custom has time to sleep on it (24 hours.)
1 – A formalized A-B test with statistical analysis is needed (1 week.)
0 – The customer says there’s no difference. Stop the project and try something else.

The Usefulness Index

The Usefulness Index measures the level of importance of the novelty. Once the customer recognizes the novelty, take the prototype away from them and evaluate their level of anger.
5 – The customer is irate and seething. They rip it from your arms and demand to place an order for 50 units.
4 – The customer is deeply angry and screams at you to give it back. Then they tell you they want to buy the prototype.
3 – With a smile of happiness, the customer asks to try the prototype again.
2 – The customer asks a polite question about the prototype to make you feel a bit better about their lack of interest.
1 – The customer is indifferent and says it’s time to get some lunch.
0 – Before you ask, the customer hands it back to you before you and is happy not to have it. Stop the project and try something else.

The Successfulness Index

The Successfulness Index measures the incremental profitability the novel product, service or business model will deliver to your company’s bottom line. After taking the prototype from the customer and measuring the Usefulness Index, with your prototype in hand, ask the customer how much they’d pay for the prototype in its current state.
5 – They’d pay 10 times your estimated cost.
4 – They’d pay two times your estimated cost.
3 – They’d pay 30% more than your estimated cost.
2 – They’d pay 10% more than your estimated cost.
1 – They’d pay you 5% more than your estimated cost.
0 – They don’t answer because they would never buy it.

The Commercialization Index

The Commercialization Index describes the overall significance of the novel product, service or business model and it’s calculated by multiplying the three indicies. The maximum value is 125 (5 x 5 x 5) and the minimum value is 0. Again, higher is better.

The descriptions of the various levels are only examples, and you can change them any way you want. And you can change the value ranges as you see fit. (0-5 is just one way to do it.) And you can substitute actual prototypes with sketches, storyboards or other surrogates.

Modify it as you wish, and make it your own. I hope you find it helpful.

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Innovating on the Critical Path

GUEST POST from Mike Shipulski

If you don’t know the critical path, you don’t know very much.

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

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To Make A Difference – Add Energy

GUEST POST from Mike Shipulski

If you want to make a difference, you’ve got to add energy. And the more you can add the bigger difference you can make.

Doing new is difficult and demands (and deserves) all the energy you can muster. Often it feels you’re the only one pushing in the right direction while everyone else is vehemently pushing the other way. But stay true and stand tall. This is not an indication things are going badly, this is a sign you’re doing meaningful work. It’s supposed to feel that way. If you’re exhausted, frustrated and sometimes a bit angry, you’re doing it right. If you have a healthy disrespect for the status quo, it’s supposed to feel that way.

Meaningful work has a long time constant and you’ve got to run these meaningful projects like marathons, uphill marathons. Every day you put in your 26 miles at a sustainable pace – no slower, but no faster. This is long, difficult work that doesn’t run by itself, you’ve got to push it like a sled. Every day you’ve got to push. To push every day like this takes a lot of physical strength, but it takes even more mental strength. You’ve got to stay focused on the critical path and push that sled every day. And you need to preserve enough mental energy to effectively ignore the non-critical path sleds. You’ve got to be able to decide which tasks you must get your whole body behind and which tasks you must discount. And you’ve got to preserve enough energy to believe in yourself.

Meaningful work cannot be accomplished by sprinting full speed five days a week. It’s a marathon, and you’ve got to work that way and train that way. Get your rest, get your exercise, eat right, spend time with friends and family, and put your soul into your work.

Choose work that is meaningful and add energy. Add it every day. Add it openly. Add it purposefully. Add it genuinely. Add energy like you’re an aircraft carrier and others will get pulled along by your wake. Add energy like you’re bulldozer and others will get out of your way. Add energy like you’re contagious and others will be infected.

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The Special People That Believe in You

GUEST POST from Mike Shipulski

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.

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