Category Archives: Leadership

How Incumbents Can React to Disruption

GUEST POST from Geoffrey A. Moore

Think back a couple of years and imagine …

You are Jim Farley at Ford, with Tesla banging at the door. You are Bob Iger at Disney with Netflix pounding on the gates. You are Pat Gelsinger at Intel with Nvidia invading your turf. You are virtually every CEO in retail with Amazon Prime wreaking havoc on your customer base. So, what are you supposed to do now?

The answer I give in Zone to Win is that you have to activate the Transformation Zone. This is true, but it is a bit like saying, you have to climb a mountain. It begs the question, How?

There are five key questions executives facing potential disruption must ask:

1. When?

If you go too soon, your investors will lose patience with you and desert the ship. If you go too late, your customers will realize you’re never really going to get there, so they too, reluctantly, will depart. Basically, everybody gets that a transformation takes more than one year, and no one will give you three, so by default, when the window of opportunity to catch the next wave looks like it will close within the next two years, that’s when you want to pull the ripcord.

2. What does transformation really mean?

It means you are going to break your established financial performance covenants with your investors and drastically reduce your normal investment in your established product lines in order to throw your full weight behind launching yourself into the emerging fray. The biggest mistake executives can make at this point is to play down the severity of these actions. Believe me, they are going to show, if not this quarter, then soon, and when they do, if you have not prepared the way, your entire ecosystem of investors, partners, customers, and employees are going to feel betrayed.

3. What can you say to mitigate the consequences?

Simply put, tell the truth. The category is being disrupted. If we are to serve our customers, we need to transition our business to the new technology. This is our number one priority, we have clear milestones to measure our progress, and we plan to share this information in our earnings calls. In the meantime, we continue to support our core business and to work with our customers and partners to address their current needs as well as their future roadmaps.

4. What is the immediate goal?

The immediate goal is to neutralize the threat by getting “good enough, fast enough.” It is not to leapfrog the disruptor. It is not to break any new ground. Rather, it is simply to get included in the category as a fast follower, and by so doing to secure the continuing support of the customer base and partner ecosystem. The good news here is that customers and partners do not want to switch vendors if they can avoid it. If you show you are making decent progress against your stated milestones, most will give you the benefit of the doubt. Once you have gotten your next-generation offerings to a credible state, you can assess your opportunities to differentiate long-term—but not before.

5. In what ways do we act differently?

This is laid out in detail in the chapter on the Transformation Zone in Zone to Win. The main thing is that supporting the transformation effort is the number one priority for everyone in the enterprise every day until you have reached and passed the tipping point. Anyone who is resisting or retarding the effort needs to be counseled to change or asked to leave. That said, most people will still spend most of their time doing what they were doing before. It is just that if anyone on the transformation initiative asks anyone else for help, the person asked should do everything they can to provide that help ASAP. Executive staff meetings make the transformation initiative the number one item on the agenda for the duration of the initiative, the goal being at each session to assess current progress, remove any roadblocks, and do whatever possible to further accelerate the effort.

Conclusion

The net of all of the above is transformation is a bit like major surgery. There is a known playbook, and if you follow it, there is every reason to expect a successful outcome. But woe to anyone who gets distracted along the way or who gives up in discouragement halfway through. There is no halfway house with transformations—you’re either a caterpillar or a butterfly, there’s nothing salvageable in between.

That’s what I think. What do you think?

Image Credit: Slashgear.com

Sign up here to join 17,000+ leaders getting Human-Centered Change & Innovation Weekly delivered to their inbox every week.

Learning Business and Life Lessons from Monkeys

Leave a reply

Learning Business and Life Lessons from Monkeys

GUEST POST from Greg Satell

Franz Kafka was especially skeptical about parables. “Many complain that the words of the wise are always merely parables and of no use in daily life,” he wrote. “When the sage says: ‘Go over,’ he does not mean that we should cross to some actual place… he means some fabulous yonder…that he cannot designate more precisely, and therefore cannot help us here in the very least.

Business pundits, on the other hand, tend to favor parables, probably because telling simple stories allows for the opportunity to seem both folksy and wise at the same time. When Warren Buffet says “Only when the tide goes out do you discover who’s been swimming naked,” it doesn’t sound so much like an admonishment.

Over the years I’ve noticed that some of the best business parables involve monkeys. I’m not sure why that is, but I think it has something to do with taking intelligence out of the equation. We’re often prone to imagining ourselves as the clever hero of our own story and we neglect simple truths. That may be why monkey parables have so much to teach us.

1. Build The #MonkeyFirst

When I work with executives, they often have a breakthrough idea they are excited about. They begin to tell me what a great opportunity it is and how they are perfectly positioned to capitalize on it. However, when I begin to dig a little deeper it appears that there is some major barrier to making it happen. When I try to ask about it, they just shut down.

One reason that this happens is that there is a fundamental tension between innovation and operations. Operational executives tend to focus on identifying clear benchmarks to track progress. That’s fine for a typical project, but when you are trying to do something truly new and different, you have to directly confront the unknown.

At Google X, the tech giant’s “moonshot factory,” the mantra is #MonkeyFirst. The idea is that if you want to get a monkey to recite Shakespeare on a pedestal, you start by training the monkey, not building the pedestal, because training the monkey is the hard part. Anyone can build a pedestal.

The problem is that most people start with the pedestal, because it’s what they know and by building it, they can show early progress against a timeline. Unfortunately, building a pedestal gets you nowhere. Unless you can actually train the monkey, working on the pedestal is wasted effort.

The moral: Make sure you address the crux of the problem and don’t waste time with peripheral issues.

2. Don’t Get Taken In By Coin Flipping Monkeys

We live in a world that worships accomplishment. Sports stars who have never worked in an office are paid large fees to speak to corporate audiences. Billionaires who have never walked a beat speak out on how to fight crime (even as they invest in gun manufacturers). Others like to espouse views on education, although they have never taught a class.

Many say that you can’t argue with success, but consider this thought experiment: Put a million monkeys in a coin flipping contest. The winners in each round win a dollar and the losers drop out. After twenty rounds, there will only be two monkeys left, each winning $262,144. The vast majority of the other monkeys leave with merely pocket change.

How much would you pay the winning monkeys to speak at your corporate event? Would you invite them to advise your company? Sit on your board? Would you be interested in their views about how to raise your children, invest your savings or make career choices? Would you try to replicate their coin-flipping success? (Maybe it’s all in the wrist).

The truth is that chance and luck play a much bigger part in success than we like to admit. Einstein, for example, became the most famous scientist of the 20th century not just because of his discoveries but also due to an unlikely coincidence. True accomplishment is difficult to evaluate, so we look for signals of success to guide our judgments.

The moral: Next time you judge someone, either by their success or lack thereof, ask yourself whether you are judging actual accomplishment or telltale signs of successful coin flipping. It’s harder to tell the difference than you’d think.

3. The Infinite Monkey Theorem

There is an old thought experiment called the Infinite Monkey Theorem, which is eerily disturbing. The basic idea is that if there were an infinite amount of monkeys pecking away on an infinite amount of keyboards they would, in time, produce the complete works of Shakespeare, Tolstoy and every other literary masterpiece.

It’s a perplexing thought because we humans pride ourselves on our ability to recognize and evaluate patterns. The idea that something we value so highly could be randomly generated is extremely unsettling. Yet there is an entire branch of mathematics, called Ramsey Theory, devoted to the study of how order emerges from random sets of data.

While the infinite monkey theorem is, of course, theoretical, technology is forcing us to confront the very real dilemma’s it presents. For example, music scholar and composer David Cope has been able to create algorithms that produce original works of music that are so good even experts can’t tell they are computer generated. So what is the value of human input?

The moral: Much like the coin flipping contest, the infinite monkey theorem makes us confront what we value and why. What is the difference between things human produced and identical works that are computer generated? Are Tolstoy’s words what give his stories meaning? Or is it the intent of the author and the fact that a human was trying to say something important?

Imagining Monkeys All Around Us

G. H. Hardy, widely considered a genius, wrote that “For any serious purpose, intelligence is a very minor gift.” What he meant was that even in purely intellectual pursuits, such as his field of number theory, there are things that are far more important. It was, undoubtedly, intellectual humility that led Hardy to Ramanujuan, perhaps his greatest discovery of all.

Imagining ourselves to be heroes of our own story can rob us of the humility we need to succeed and prosper. Mistaking ourselves for geniuses can often get us into trouble. People who think they’re playing it smart tend to make silly mistakes, both because they expect to see things that others don’t and because they fail to look for and recognize trouble signs.

Parables about monkeys can be useful because nobody expects them to be geniuses, which demands that we ask ourselves hard questions. Are we doing the important work, or the easiest tasks to show progress on? If monkeys flipping coins can simulate professional success, what do we really celebrate? If monkeys tapping randomly on typewriters can create masterworks, what is the value of human agency?

The truth is that humans are prone to be foolish. We are unable, outside a few limited areas of expertise, to make basic distinctions in matters of importance. So we look for signals of prosperity, intelligence, shared purpose and other things we value to make judgments about what information we should trust. Imagining monkeys around us helps us to be more careful.

Sometimes the biggest obstacle between where we are now and the fabulous yonder we seek is just the few feet in front of us.

— Article courtesy of the Digital Tonto blog
— Image credit: Flickr

Sign up here to join 17,000+ leaders getting Human-Centered Change & Innovation Weekly delivered to their inbox every week.

7 Things Leaders Need to Know About Team AI Usage

Leave a reply

7 Things Leaders Need to Know About Team AI Usage

GUEST POST from David Burkus

Leaders, we need to talk about intelligence.

By now you’ve–hopefully–started to take it as seriously as many leaders of industry have been. Either way you look at artificial intelligence, good or bad, it is here to stay. And so we need to start thinking of answers for several questions at the intersection of leadership and AI.

How can it be used effectively, not just to cut costs but to supercharge productivity? How can we use artificial intelligence to supplement our solid foundational leadership? Where should we NOT be using artificial intelligence?

It’s still early in the new world of artificial intelligence in the workplace. A lot of companies are delaying hiring, some are already cutting teams to embrace the optimistic promises AI will bring. But I don’t think we should be all in…yet.

I do know one thing to be true: Leaders using AI will quickly outpace leaders who don’t. And it’s important you get equipped, and in the right way.

Artificial intelligence will make good managers better, but not mediocre bosses better

They say a great actor can bring a C+ movie script up to a B+ or even an A if they are really good. But if a C+ actor is given a C+ script, then it’s going be a C+ movie. The same goes for artificial intelligence and leadership. You need to be a great leader before you start implementing artificial intelligence. AI will not bump up a mediocre manager and turn them into a great leader. It’s not some miracle machine. The truth is you need to have your foundations as a manager be solid first. AI is a good supplement for already successful managers.

Don’t use artificial intelligence to monitor

Often the first temptation of leaders experimenting with AI is to find a productivity AI tool out there, plug it into their IT systems, and start virtually looking over their team’s shoulders to monitor output. There are already dozens of stories…horror stories…of companies doing just that. And it’s not a good look, and deeply hurts morale.

If you need a technology tool to ensure your people are actually working when they say they are, you screwed up a long time ago—back during the hiring process.

And the current research on this isn’t in artificial intelligence’s favor. If AI is used to “collect and analyze data about workers,” then eight out of ten workers say AI use on them would definitely or probably make them feel inappropriately watched. In addition, about a one third of the public does not think AI would lead to equitable evaluations. A majority also agrees this would lead to the information collected about workers being misused (66%).

Artificial intelligence is good at turning anything and everything into a metric. Time is an easy metric. Number of sales calls is an easy metric. Messages on slack is an easy metric. How often you move your mouse is an easy, and terrifying, metric. But just because you have easy numbers to pull on your team doesn’t mean they are the right metrics to be pulling.

Leadership is really about people, not the metrics. How you solicit and give feedback is important. How you support and grow individual employees is important. Inspiring your team and being transparent is important. If you monitor your team endlessly, and your team knows that you’re outsourcing the process of harvesting that data with artificial intelligence, it creates distance between you and them.

And that ultimately works against you in the long run. People don’t like leaders who seem far from them and far from…reality.

Become fluent in artificial intelligence, or risk getting lost in translation

There’s some interesting data from Deloitte on AI that came out in Spring 2024. Organizations reporting “very high” Generative AI expertise expect to change their talent strategies even faster, with 32 percent already making changes. According to their findings, a lot of companies are redesigning work processes and changing workflows to integrate AI at different points.

You’re probably already experiencing this with Google, Microsoft and others integrating artificial intelligence into their core products like email and chats.

Another big focus is going to be on AI fluency. Deloitte found that 47 percent of respondents are dedicating time towards it. The leadership who gets educated on AI early, and keeps training consistently on as it develops, will be the best equipped to shepherd their teams going forward. It’s inevitable that career paths and job descriptions are going to evolve. It’s up to you to stay current.

You NEED to know what the technology is, how it’s being used, and how it’s helping those you’re serving. Be it clients, customers, the public–whomever. Saying you just typed some words into a text box and out came some more words….is not a good answer. Or a good look for you. You sound like you’re treating it like magic, when it’s actually just code.

Turn your conversations and meetings into a database

Middle managers spend a lot of time, arguably too much time, sending progress reports up the chain to the C-Suite and marching orders down to the individual contributors at the bottom. And there’s a fair amount of investigating to find out where things really stand, and time can be spent having to meet multiple people to get all the correct and current information. This is a time slog.

Meanwhile, there are dozens of AI tools now that just take notes. Notes from meetings. Notes from calls. They take the transcript and pair it down to the key takeaways, action items, attendance –a full brief for your records.

So, instead of asking someone to take notes during a meeting or having all your notes in the chat only to evaporate once the zoom call ends, you have a searchable document that you can reference, build on, and keep track of. New hires can use the database to catch up, and senior leaders can get a quick read of the progress and where everything stands.

Use AI/Chat bots to offload small, clerical questions

Here’s a situation: You run a small team and maybe you have a few new hires. You’re going to get a bunch of clerical questions from them over their first 90 days. That’s normal. That’s how it’s supposed to be. Onboarding takes time. “Who’s the point person for this? What’s so and so’s email from HR? What’s the policy for remote days at the company?”

Here’s where artificial intelligence can be really useful. Depending on the sort of chat platform you use– Slack, Teams, whatever, you could make a simple chat bot that you upload a full archive of the company’s policies and your own team norms, clerical details– everything new hires will probably ask you about. So, when those quick questions, quick stop-and-chats happen, the chat-bot can take care of that.

This shouldn’t subtract your time with your new hires. This just subtracts the lower stakes conversations. Now, you have more time for the high-level conversations with them. More coaching. More mentorship. More progression towards team goals. It might sound simple but…that’s because it is.

Use AI as an audience for decisions before taking them public

Being in a leadership role requires making decisive decisions. You include feedback and perspectives from your team as much as possible. Do the research. Talk to people. But then comes the actual decision making. And that is often just you, alone, with your thoughts.

Instead of making your pros and cons list, one practical thing to try is inputting proposed decisions or actions in an AI tool and then asking for all the counterpoints and possible outcomes.

You could even scale this out to your whole team. Ideally, teams should be leveraging task-focused conflict in team discussions to spark new and better ideas. But conflict can be tricky. So, what if AI is always the devil’s advocate? As your team is generating or discussing ideas, you can be feeding those ideas into an AI tool and asking it for counterpoints or how competitors might respond.

Don’t let it make the decision for you but do let it help guide you to possible solutions.

Get the legal clearance before going too deep

One last disclaimer: check with your human resources or your senior leadership, your informational technology (IT) people—or honestly, all of them—to know the boundaries you can work within when using AI tools.

Many of the tools out there are free and still in beta mode or come with a small fee. And most of the larger AI companies are taking whatever data you input and using it to better refine their product. Your company may have rules on the books about data privacy. Certainly, if you work in legal, healthcare, or government services, you’re dealing with sensitive data that may be protected.

Get clear answers before using any AI tools. Until someone above you with authority gives you the OK, you should probably just play with the tools on your own time with your own personal projects.

Conclusion

Artificial intelligence is just getting started in the workplace. And it’s all playing out in real time. If you’re a manager starting to get your hands dirty with these new tools, acknowledge to your team that this is all a work in progress and the norms around AI are likely to evolve. Be sure to keep the playing field level with your team. Practice that transparency, onboard everyone to the tools you’re using and that they can use and see where this takes you. Remember, AI, at its best, is here to enhance our human capabilities, not replace them.

AI will never take the place of a great boss…. but it might be better than being managed by a bad one.

Image credit: David Burkus

Originally published at https://davidburkus.com on September 9, 2024.

Sign up here to get Human-Centered Change & Innovation Weekly delivered to your inbox every week.

An Industrial Call-To-Arms for the Environment

Leave a reply

An Industrial Call-To-Arms for the Environment

GUEST POST from Mike Shipulski

What is your obligation to improve the health of our planet?

For the CEO – Look around. Look at Europe. Look at China’s plans. Look at the startups. I know you want to achieve your growth objectives, but if you don’t take seriously the race toward cleaner products and services, you’ll go out of business. You can see this as a problem or an opportunity. Bury your head or put on your track shoes and run! It’s your choice.

Look at the oceans. Look at the landfills. Look at the rise in global temperatures. Just look. This isn’t about ROI, this is about survival. Growth objectives aside, no one will buy things when they are struggling to survive in an uncertain future. Your same old dirty products won’t cut it anymore. So, what are you going to do?

For an example of a path forward, look to the companies in the oil business. Their recipe is clear. They’ve got to use their large but ever-diminishing profits to buy themselves into technologies and industries that will ultimately eat their core business. Though the timing is uncertain, it’s certain that improvements in cleaner technologies will demand they make the change.

Whatever you do, don’t wait. You don’t have much time. Cleaner technologies are getting better every day. It’s time to start.

For Marketing – Look at the upstarts. Look at the powerful companies in adjacent markets who will soon be your direct competitors. Look at your stodgy, unprofitable competitors who are now sufficiently desperate to try anything. Their next marketing push will be built on the bedrock of an improved planet. They’ll be almost as good as you in the traditional areas of productivity and quality and they’ll blow your doors off with their meaner and greener products. Customers will choose green over brown. And they’ll look for real improvements that make the planet smile. The time for green-washing is past. That trick is out of gas.

You need to help customers with new jobs to be done. They care about their environment. They care about their carbon footprint. They care about clean water. And they care about recycling and reuse. It’s real. They care. Now it’s up to you to help them make progress in these areas. It will be a tough road to convince your company that things need to change, but that’s why you’re in Marketing.

You’re already behind. It’s time to start. And it’s up to you to lead the charge.

For Manufacturing – Look at your Value Stream Maps (VSMs). Assign a carbon footprint to each link in the chain. And do the same with water consumption. Assess each process step for carbon and water and rank them worst to best. For the worst, run carbon kaizens and improve the carbon footprint. And run water kaizens for the thirstiest processes.

And look again at your VSMs, and look more broadly. Look back into the supply chain, rank for carbon and water and improve the ones that need the treatment. And teach your suppliers how to do it. And look forward into your distribution channels and improve or eliminate the worst actors. And then propose to Marketing that you teach your customers how to use VSMs to clean up their act. And challenge Engineering to change the design to eliminate the remaining bad actors.

You’ve made good progress with your value streams. Now it’s time to help others make the progress that must be made. As subject matter experts, it’s your time to shine. And, please, start now.

For Engineering – Look at your products. Look at how they’re used. Look at how they’re delivered. Look at how they’re made. Look at how they’re recycled. Sure, your products provide good functionality, but throughout their life cycle they also create carbon dioxide and consume water. And you’re the only ones that can design out the environmental impact.

Learn how to do a Life Cycle Assessment (LCA). Learn which elements of the product create the largest problems. For all the parts that make up the product, sort them worst to best to prioritize the design work. It’s time for radical part count reduction. Try to design out half the parts. It’s possible. And the payoff is staggering. What’s the carbon footprint of a part that was designed out of the product?

Or, to make a more radical improvement, consider an Innovation Burst Event (IBE) to make a fundamental change in the way your products/services impact the environment. With this approach, your innovation work, by definition, will make the planet smile.

It’s time to be open-minded. Ask Manufacturing for the worst processes (including supply chain and distribution) and try to design them out. Design out the part, or change the material, or change the design to enable a friendlier process. Manufacturing can only improve a bad process, but you can design them out altogether. There’s power in that, but with power comes responsibility.

And it’s time for you to take responsibility.

For Everyone in Industry – Regardless of your company, your country or your political affiliation, we can all agree that all our lives get better as the health of our planet improves. And everyone can agree that cleaner air is better. And everyone can agree it’s the same for our water – cleaner is better. And that’s a whole lot of agreement.

As industry leaders, I challenge you to build on that common ground. As industry leaders, I challenge you to improve our planet one product at a time and one process at a time. And as industry leaders, I challenge you to help each other. There’s no competitive disadvantage when you help a company outside your industry. And there’s no shame in learning from companies outside your industry. And it’s good for the planet and profits. There’s nothing in the away. It’s time to start.

As an industry leader, if you want to make a difference in the health of our planet, drop a comment.

Image credit: Pixabay

Sign up here to join 17,000+ leaders getting Human-Centered Change & Innovation Weekly delivered to their inbox every week.

Three Steps from Stuck to Success

Leave a reply

Managing Uncertainty

Three Steps from Stuck to Success

GUEST POST from Robyn Bolton

When a project is stuck and your team is trying to manage uncertainty, what do you hear most often:

“We’re so afraid of making the wrong decision that we don’t make any decisions.”
“We don’t have time to explore a bunch of stuff. We need to make decisions and go.”
“The problem is so multi-faceted, and everything affects everything else that we don’t know where to start.”

I’ve heard all three this week, each spoken by teams leads who cared deeply about their projects and teams.

Differentiating between risk and uncertainty and accepting that uncertainty would never go away, just change focus helped relieve their overwhelm and self-doubt.

But without a way to resolve the fear, time-pressure, and complexity, the project would stay stuck with little change of progressing to success.

Turn Uncertainty Into an Asset

It’s a truism in the field of innovation that you must fall in love with the problem, not the solution. Falling in love with the problem ensures that you remain focused on creating value and agnostic about the solution.

While this sounds great and logically makes sense, most struggle to do it. As a result, it takes incredible strength and leadership to wrestle with the problem long enough to find a solution.

Uncertainty requires the same strength and leadership because the only way out of it is through it. And, research shows, the process of getting through it, turns it into an asset.

Three Steps to Turn Uncertainty Into an Asset

Research in the music and pharmaceutical industries reveals that teams that embraced uncertainty engaged in three specific practices:

Embrace It: Start by acknowledging the uncertainty and that things will change, go wrong, and maybe even fail. Then stay open to surprise and unpredictability, delving into the unknown “by being playful, explorative, and purposefully engaging in ventures with indeterminate outcome.”
Fix It: Especially when dealing with Unknowable Uncertainty, which occurs when more info supports several different meanings rather than pointing to one conclusion, teams that succeed make provisional decisions to “fix” an uncertain dimension so they can move forward while also documenting the rationale for the fix, setting a date to revisit it, and criteria for changing it.
Ignore It: It’s impossible to embrace every uncertainty at once and unwise to fix too many uncertainties at the same time. As a result, some uncertainties, you just need to ignore. Successful teams adopt “strategic ignorance” “not primarily for purposes of avoiding responsibility [but to] allow postponing decisions until better ideas emerge during the collaborative process.

This practice is iterative, often leading to new knowledge, re-examined fixes, and fresh uncertainties. It sounds overwhelming but the teams that are explicit and intentional about what they’re embracing, fixing, and ignoring are not only more likely to be successful, but they also tend to move faster.

Put It Into Practice

Let’s return to NatureComp, a pharmaceutical company developing natural treatments for heart disease.

Throughout the drug development process, they oscillated between addressing What, Who, How, and Where Uncertainties. They did that by changing whether they embraced, fixed, or ignored each type of uncertainty at a given point:

As you can see, they embraced only one type of uncertainty to ensure focus and rapid progress. To avoid the fear of making mistakes, they fixed uncertainties throughout the process and returned to them as more information came available, either changing or reaffirming the fix. Ignoring uncertainties helped relieve feelings of being overwhelmed because the team had a plan and timeframe for when they would shift from ignoring to embracing or fixing.

Uncertainty is Dynamic – You Need to Be Dynamic, Too

You’ll never eliminate uncertainty. It’s too dynamic to every fully resolve. But by dynamically embracing, fixing, and ignore it in all its dimensions, you can accelerate your path to success.

Image credit: Pexels

Sign up here to join 17,000+ leaders getting Human-Centered Change & Innovation Weekly delivered to their inbox every week.

Identity is Crucial to Change

Leave a reply

Identity is Crucial to Change

GUEST POST from Greg Satell

In an age of disruption, the only viable strategy is to adapt. Today, we are undergoing major shifts in technology, resources, migration and demography that will demand that we make changes in how we think and what we do. The last time we saw this much change afoot was during the 1920s and that didn’t end well. The stakes are high.

In a recent speech, the EU’s High Representative for Foreign Affairs and Security Policy Josep Borrell highlighted the need for Europe to change and adapt to shifts in the geopolitical climate. He also pointed out that change involves far more than interests and incentives, carrots and sticks, but even more importantly, identity.

“Remember this sentence,” he said. “’It is the identity, stupid.’ It is no longer the economy, it is the identity.” What he meant was that human beings build attachments to things they identify with and, when those are threatened, they are apt to behave in a visceral, reactive and violent way. That’s why change and identity are always inextricably intertwined.

“We can’t define the change we want to pursue until we define who we want to be.” — Greg Satell

The Making Of A Dominant Model

Traditional models come to us with such great authority that we seldom realize that they too once were revolutionary. We are so often told how Einstein is revered for showing that Newton’s mechanics were flawed it is easy to forget that Newton himself was a radical insurgent, who rewrote the laws of nature and ushered in a new era.

Still, once a model becomes established, few question it. We go to school, train for a career and hone our craft. We make great efforts to learn basic principles and gain credentials when we show that we have grasped them. As we strive to become masters of our craft we find that as our proficiency increases, so does our success and status.

The models we use become more than mere tools to get things done, but intrinsic to our identity. Back in the nineteenth century, the miasma theory, the notion that bad air caused disease, was predominant in medicine. Doctors not only relied on it to do their job, they took great pride in their mastery of it. They would discuss its nuances and implications with colleagues, signaling their membership in a tribe as they did.

In the 1840s, when a young doctor named Ignaz Semmelweis showed that doctors could prevent infections by washing their hands, many in the medical establishment were scandalized. First, the suggestion that they, as men of prominence, could spread something as dirty as disease was insulting. Even more damaging, however, was the suggestion that their professional identity was, at least in part, based on a mistake.

Things didn’t turn out well for Semmelweis. He railed against the establishment, but to no avail. He would eventually die in an insane asylum, ironically of an infection he contracted under care, and the questions he raised about the prevailing miasma paradigm went unanswered.

A Gathering Storm Of Accumulating Evidence

We all know that for every rule, there are exceptions and anomalies that can’t be explained. As the statistician George Box put it, “all models are wrong, but some are useful.” The miasma theory, while it seems absurd today, was useful in its own way. Long before we had technology to study bacteria, smells could alert us to their presence in unsanitary conditions.

But Semmelweis’s hand-washing regime threatened doctors’ view of themselves and their role. Doctors were men of prominence, who saw disease emanating from the smells of the lower classes. This was more than a theory. It was an attachment to a particular view of the world and their place in it, which is one reason why Semmelweis experienced such backlash.

Yet he raised important questions and, at least in some circles, doubts about the miasma theory continued to grow. In 1854, about a decade after Semmelweis instituted hand washing, a cholera epidemic broke out in London and a miasma theory skeptic named John Snow was able to trace the source of the infection to a single water pump.

Yet once again, the establishment could not accept evidence that contradicted its prevailing theory. William Farr, a prominent medical statistician, questioned Snow’s findings. Besides, Snow couldn’t explain how the water pump was making people sick, only that it seemed to be the source of some pathogen. Farr, not Snow, won the day.

Later it would turn out that a septic pit had been dug too close to the pump and the water had been contaminated with fecal matter. But for the moment, while doubts began to grow about the miasma theory, it remained the dominant model and countless people would die every year because of it.

Breaking Through To A New Paradigm

In the early 1860s, as the Civil War was raging in the US, Louis Pasteur was researching wine-making in France. While studying the fermentation process, he discovered that microorganisms spoiled beverages such as beer and milk. He proposed that they be heated to temperatures between 60 and 100 degrees Celsius to avoid spoiling, a process that came to be called pasteurization

Pasteur guessed that the similar microorganisms made people sick which, in turn, led to the work of Robert Koch and Joseph Lister. Together they would establish the germ theory of disease. This work then led to not only better sanitary practices, but eventually to the work of Alexander Fleming, Howard Florey and Ernst Chain and development of antibiotics.

To break free of the miasma theory, doctors needed to change the way they saw themselves. The miasma theory had been around since Hippocrates. To forge a new path, they could no longer be the guardians of ancient wisdom, but evidence-based scientists, and that would require that everything about the field be transformed.

None of this occurred in a vacuum. In the late 19th century, a number of long-held truths, from Euclid’s Geometry to Aristotle’s logic, were being discarded, which would pave the way for strange new theories, such as Einstein’s relativity and Turing’s machine. To abandon these old ideas, which were considered gospel for thousands of years, was no doubt difficult. Yet it was what we needed to do to create the modern world.

Moving From Disruption to Resilience

Today, we stand on the precipice of a new paradigm. We’ve suffered through a global financial crisis, a pandemic and the most deadly conflict in Europe since World War II. The shifts in technology, resources, migration and demography are already underway. The strains and dangers of these shifts are already evident, yet the benefits are still to come.

To successfully navigate the decade ahead, we must make decisions not just about what we want, but who we want to be. Nowhere is this playing out more than in Ukraine right now, where the war being waged is almost solely about identity. Russians want to deny Ukrainian identity and to defy what they see as the US-led world order. Europeans need to take sides. So do the Chinese. Everyone needs to decide who they are and where they stand.

This is not only true in international affairs, but in every facet of society. Different eras make different demands. The generation that came of age after World War II needed to rebuild and they did so magnificently. Yet as things grew, inefficiencies mounted and the Boomer Generation became optimizers. The generations that came after worshiped disruption and renewal. These are, of course, gross generalizations, but the basic narrative holds true.

What should be clear is that where we go from here will depend on who we want to be. My hope is that we become protectors who seek to make the shift from disruption to resilience. We can no longer simply worship market and technological forces and leave our fates up to them as if they were gods. We need to make choices and the ones we make will be greatly influenced by how we see ourselves and our role.

As Josep Borrell so eloquently put it: It is the identity, stupid. It is no longer the economy, it is the identity.

— Article courtesy of the Digital Tonto blog
— Image credit: Unsplash

Sign up here to join 17,000+ leaders getting Human-Centered Change & Innovation Weekly delivered to their inbox every week.

My Advice to Young Design Engineers

Leave a reply

My Advice to Young Design Engineers

GUEST POST from Mike Shipulski

If your solution isn’t sold to a customer, you didn’t do your job. Find a friend in Marketing.

If your solution can’t be made by Manufacturing, you didn’t do your job. Find a friend in Manufacturing.

Reuse all you can, then be bold about trying one or two new things.

Broaden your horizons.

Before solving a problem, make sure you’re solving the right one.

Don’t add complexity. Instead, make it easy for your customers.

Learn the difference between renewable and non-renewable resources and learn how to design with the renewable ones.

Learn how to do a Life Cycle Assessment.

Learn to see functional coupling and design it out.

Be afraid but embrace uncertainty.

Learn how to communicate your ideas in simple ways. Jargon is a sign of weakness.

Before you can make sure you’re solving the right problem, you’ve got to know what problem you’re trying to solve.

Learn quickly by defining the tightest learning objective.

Don’t seek credit, seek solutions. Thrive, don’t strive.

Be afraid, and run toward the toughest problems.

Help people. That’s your job.

Image credit: 1 of 950+ FREE quote slides available at <a href=”http://misterinnovation.com” target=”_blank”>http://misterinnovation.com</a>

Sign up here to join 17,000+ leaders getting Human-Centered Change & Innovation Weekly delivered to their inbox every week.

Building a Learning Organization

Leave a reply

Building a Learning Organization

GUEST POST from Stefan Lindegaard

Building a learning organization goes beyond adopting new methods or tools. At its core, it’s about fostering a culture where continuous growth, adaptability, and shared learning are prioritized at every level.

Creating this culture requires a top-down commitment led by leadership and management teams who embody a growth mindset, promote psychological safety, and actively engage in building a learning-focused environment.

Without this dedication, organizations miss a crucial opportunity to develop the capabilities essential for innovation and future-readiness.

Why is this important? Well, in today’s unpredictable and rapidly evolving landscape, a learning organization isn’t just a “nice-to-have” – it’s an imperative. While a company may excel in current operations, failing to invest in learning and adaptability poses significant risks to long-term success. Can any organization truly afford to ignore the need to shape its future?

Three Key Pillars

The foundation of a strong learning organization rests on three pillars:

A growth mindset,
psychological safety,
and an unwavering commitment to fostering a culture of learning.

Leaders must first embody these values to inspire the entire organization to follow. It starts with self-reflection: How can leaders upgrade their mindset, skills, and tools to champion this change? How can they be supported in making it happen?

Only when leaders truly commit to this journey can we build a resilient organization where people and teams possess the adaptability, skills, and mindset needed to innovate, grow, and thrive.

Image Credit: Stefan Lindegaard

Sign up here to get Human-Centered Change & Innovation Weekly delivered to your inbox every week.

Journeying Through the Technology Adoption Lifecycle

Leave a reply

Journeying Through the Technology Adoption Lifecycle

GUEST POST from Geoffrey A. Moore

Like everything else in this Darwinian world of ours, customer journeys evolve with changes in the environment. Ever since the advent of the semiconductor, a compelling source of such changes has been disruptive digital technology. Although we are all eager to embrace its benefits, markets must first work through their adoption life cycles, during which different buying personas come to the fore at different stages, with each one on a very different kind of journey. So, if you plan to catch the next wave and sell the next big thing, you’re going to need to adjust your customer journey playbook as you go along. Here’s a recap of what is in store for you.

Customer Journeys in the Early Market

The early market buying personas are the visionary and the technology enthusiast, the former eager to leverage disruption to gain first-mover competitive advantage, the latter excited to participate in the latest and greatest thing. Both are on a journey of discovery.

Technology enthusiasts need to get as close to the product as possible, seeing demos and alpha-testing prototypes as soon as they are released. They are not looking to be sold (for one thing, they have no money)—they are looking to educate themselves in order to be a reliable advisor to their visionary colleague. The key is to garner them privileged access to the technical whizzes in your own enterprise and, once under NDA, to share with them the wondrous roadmap you have in mind.

Visionaries are on a different path. They want to get as clear an understanding as possible of what makes the disruptive technology so different, to see whether such a difference could be a game changer in their circumstances. This is an exercise in imagineering. It will involve discussing hypothetical use cases, and applying first principles, which means you need to bring the smartest people in your company to the table, people who can not only communicate the magic of what you have but who can also keep up with the visionary’s vision as well.

Once this journey is started, you need to guide it toward a project, not a product sale. It is simply too early to make any kind of product promise that you can reliably keep. Not only is the paint not yet dry on your own offer, but also the partner ecosystem is as yet non-existent, so the only way a whole product can be delivered is via a dedicated project team. To up the stakes even further, visionaries aren’t interested in any normal productivity improvements, they are looking to leapfrog the competition with something astounding, so a huge amount of custom work will be required. This is all well and good provided you have a project-centric contract that doesn’t leave you on the hook for all the extra labor involved.

Customer Journeys to Cross the Chasm

The buying personas on the other side of the chasm are neither visionaries nor technology enthusiasts. Rather, they are pragmatists, and to be really specific, they are pragmatists in pain. Unlike early market customers, they are not trying to get ahead, they are trying to get themselves out of a jam. In such a state, they could care less about your product, and they do not want to meet your engineers or engage in any pie-in-the-sky discussions of what the future may hold. All they want to do is find a way out of their pain.

This is a journey of diagnosis and prescription. They have a problem which, given conventional remedies, is not really solvable. They are making do with patchwork solutions, but the overall situation is deteriorating, and they know they need help. Sadly, their incumbent vendors are not able to provide it, so despite their normal pragmatist hesitation about committing to a vendor they don’t know and a solution that has yet to be proven, they are willing to take a chance—provided, that is, that:

you demonstrate that you understand their problem in sufficient depth to be credible as a solution provider, and
that you commit to bringing the entire solution to the table, even when it involves orchestrating with partners to do so.

To do so, your first job is to engage with the owner of the problem process in a dialog about what is going on. During these conversations, you demonstrate your credibility by anticipating the prospective customer’s issues and referencing other customers who have faced similar challenges. Once prospects have assured themselves that you appreciate the magnitude of their problem and that you have expertise to address its challenges, then (and only then) will they want to hear about your products and services.

As the vendor, therefore, you are differentiating on experience and domain expertise, ideally by bringing someone to the table who has worked in the target market segment and walked in your prospective customer’s shoes. Once you have established credibility by so doing, then you must show how you have positioned the full force of your disruptive product to address the very problem that besets your target market. Of course, you know that your product is far more capable than this, and you also know you have promised your investors global domination, not a niche market solution. But for right now, to cross the chasm, you forsake all that and become laser-focused on demolishing the problem at hand. Do that for the first customer, and they will tell others. Do that for the next, and they will tell more. By the time you have done this four or five times, your phone will start ringing. But to get to this point, you need to be customer-led, not product-led.

Customer Journeys Inside the Tornado

The tornado is that point in the technology adoption life cycle when the pragmatist community shifts from fear of going too soon to fear of missing out. As a consequence, they all rush to catch up. Even without a compelling first use case, they commit resources to the new category. Thus, for the first time in the history of the category, prospective customers have budget allocated before the salesperson calls. (In the early market, there was no budget at all—the visionary had to create it. In the chasm-crossing scenario, there is budget, but it is being spent on patchwork fixes with legacy solutions and needs to get reallocated before a deal can be closed.)

Budget is allocated to the department that will purchase and support the new offer, not the ones who will actually use it (although they will no doubt get chargebacks at some point). That means for IT offerings the target customer is the technical buyer and the CIO, the former who will make the product decision, the latter who will make the vendor decision. Ideally, the two will coincide, but when they don’t, the vendor choice usually prevails.

Now, one thing we know about budgets is that once they have been allocated they will get spent. These customers are on a buying mission journey. They produce RFPs to let them compare products and vet companies, and they don’t want any vendor to get too close to them during the process. Sales cycles are super-competitive, and product bake-offs are not uncommon. This means you need to bring your best systems engineers to the table, armed with killer demos, supported by sales teams, armed with battle cards that highlight competitor strengths and weaknesses and how to cope with the former and exploit the latter. There is no customer intimacy involved.

What is at stake, instead, is simply winning the deal. Here account mapping can make a big difference. Who is the decision maker really? Who are the influencers? Who has the inside track? You need a champion on the inside who can give you the real scoop. And at the end of the sales cycle, you can expect a major objection to your proposal, a real potential showstopper, where you will have to find some very creative way to close the deal and get it off the table. That is how market share battles are won.

Customer Journeys on Main Street

On Main Street, you are either the incumbent or a challenger. If the latter, your best bet is to follow a variation on the chasm-crossing playbook, searching out a use case where the incumbent is not well positioned and the process owner is getting frustrated—as discussed above. For incumbents, on the other hand, it is a completely different playbook.

The persona that matters most on Main Street is the end user, regardless of whether they have budget or buying authority. Increasing their productivity is what creates the ROI that justifies any additional purchases, not to mention retaining the current subscription. This calls for a journey of continuous improvement.

Such a journey rewards two value disciplines on the vendor’s part—customer intimacy and operational excellence. The first is much aided by the advent of telemetry which can track product usage by user and identify opportunities for improvement. Telemetric data can feed a customer health score which allows the support team to see where additional attention is most needed. Supplying the attention requires operational excellence, and once again technology innovation is changing the game, this time through product-led prompts, now amplified by generative AI commentary. Finally, sitting atop such infrastructure is the increasingly powerful customer success function whose role is to connect with the middle management in charge, discuss with them current health score issues and their remediation, and explore opportunities for adding users, incorporating product extensions, and automating adjacent use cases.

Summing Up

The whole point of customer journeys done right is to start with the customer, not with the sales plan. That said, where the customer is in their adoption life cycle defines the kind of journey they are most likely to be on. One size does not fit all, so it behooves the account team to place its bets as best it can and then course correct from there.

That’s what I think. What do you think?

Image Credit: Pexels

Sign up here to join 17,000+ leaders getting Human-Centered Change & Innovation Weekly delivered to their inbox every week.

Do You Have Gumption?

Leave a reply

Do You Have Gumption?

GUEST POST from Mike Shipulski

Doing new work takes gumption. But there are two problems with gumption. One, you’ve got to create it from within. Two, it takes a lot of energy to generate the gumption and to do that you’ve got to be physically fit and mentally grounded. Here are some words that may help.

Move from self-judging to self-loving. It makes a difference.

It’s never enough until you decide it’s enough. And when you do, you can be more beholden to yourself.

You already have what you’re looking for. Look inside.

Taking care of yourself isn’t selfish, it’s self-ful.

When in doubt, go outside.

You can’t believe in yourself without your consent.

Your well-being is your responsibility. And it’s time to be responsible.

When you move your body, your mind smiles.

With selfish, you take care of yourself at another’s expense. With self-ful, you take care of yourself because you’re full of self-love.

When in doubt, feel the doubt and do it anyway.

If you’re not taking care of yourself, understand what you’re putting in the way and then don’t do that anymore.

You can’t help others if you don’t take care of yourself.

If you struggle with taking care of yourself, pretend you’re someone else and do it for them.

Image credit: Unsplash

Sign up here to join 17,000+ leaders getting Human-Centered Change & Innovation Weekly delivered to their inbox every week.