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Why Business Strategies Should Not Be Scientific

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Why Business Strategies Should Not Be Scientific

GUEST POST from Greg Satell

When the physicist Richard Feynman took the podium to give the commencement speech at CalTech in 1974, he told the strange story of cargo cults. In certain islands in the South Pacific, he explained, tribal societies had seen troops build airfields during World War and were impressed with the valuable cargo that arrived at the bases.

After the troops left, the island societies built their own airfields, complete with mock radios, aircraft and mimicked military drills in the hopes of attracting cargo themselves. It seems more than a little silly, and of course, no cargo every came. Yet these tribal societies persisted in their strange behaviors.

Feynman’s point was that we can’t merely mimic behaviors and expect to get results. Yet even today, nearly a half century later, many executives and business strategists have failed to learn that simple lesson by attempting to inject “science” into strategy. The truth is that while strategy can be informed by science, it can never be, and shouldn’t be, truly scientific.

Why Business Case Studies Are Flawed

In 2004, I was leading a major news organization during the Orange Revolution in Ukraine. What struck me at the time was how thousands of people, who would ordinarily be doing thousands of different things, would stop what they were doing and start doing the same thing, all at once, in nearly perfect unison, with little or no formal coordination.

That’s what started the journey that ultimately resulted in my book, Cascades. I wanted to harness those same forces to create change in a business context, much like the protesters in Ukraine achieved in a political context and countless others, such as the LGBT activists, did in social contexts. In my research I noticed how different studies of political and social movements were from business case studies.

With historical political and social movements, such as the civil rights movement or the United States or the anti-Apartheid struggle in South Africa, there was abundant scholarship often based on hundreds, if not thousands of contemporary accounts. Business case studies, on the other hand, were largely done by a small team performing a handful of interviews.

When I interviewed people involved in the business cases, I found that they shared some important features with political and social movements that weren’t reported in the case studies. What struck me was that these features were noticed at the time, and in some cases discussed, but weren’t regarded as significant.

To be clear, I’m not arguing that my research was more “scientific,” but I was able to bring a new perspective. Business cases are, necessarily, usually focused on successful efforts, researched after the fact and written from a management perspective. We rarely get much insight into failed efforts or see perspectives from ordinary customers, line workers, competitors and so on.

The Halo Effect

Good case studies are written by experienced professionals who are trained to analyze a business situations from a multitude of perspectives. However, their ability to do that successfully is greatly limited by the fact that they already know the outcome. That can’t help but to color their analysis.

In The Halo Effect, Phil Rosenzweig explains how those perceptions can color conclusions. He points to the networking company Cisco during the dotcom boom. When it was flying high, it was said to have an unparalleled culture with happy people who worked long hours but loved every minute of it. When the market tanked, however, all of the sudden its culture came to be seen as “cocksure” and “naive.”

It is hard to see how company’s culture could change so drastically in such a short amount of time, with no significant change in leadership. More likely, given a successful example, analysts looked at particular qualities in a positive light. However, when things began to go the other way, those same qualities were perceived as negative.

So when an organization is doing well, we see them as “idealistic” and “values driven,” but when things go sour, those same traits are seen as “arrogant” and “impractical.” Given the same set of facts, we can, and often do, come to very different conclusions when our perception of the outcomes changes.

The Problem with Surveys

Besides case studies, another common technique to analyze business trends and performance are executive surveys. Typically, a research company or consulting firm sends out questionnaires to a few hundred executives and then analyze the results. Much like Feynman described, surveys give these studies an air of scientific rigor.

This appearance of scientific rigor is largely a mirage. Yes, there are numbers, graphs and pie charts, much as your would see in a scientific paper, but there are usually important elements missing, such as a clearly formulated formulated hypothesis, a control group, and a peer review process.

Another problematic aspect is that these types of studies emphasize what a typical executive thinks about a particular business issue or trend. So what they really examine is the current zeitgeist, which may or may not reflect current market reality. A great business strategy does not merely reflect what typical executives know, but exploits what they do not.

Perhaps most importantly, these types of surveys are generally not marketed as simple opinion surveys, but as sources of profound insight designed to help leaders get an edge over their competitors. The numbers, graphs and pie charts are specifically designed to look “scientific” in order to make them appear to be statements of empirical fact.

Your Strategy Is Always Wrong, You Have to Make It Right

We’d like strategy to be scientific, because few leaders like to admit that they are merely betting on an idea. Nobody wants to go to their investors and say, “I have a hunch about something and I’d like to risk significant resources to find out if I’m right.” Yet that’s exactly what successful business do all the time.

If strategy was truly scientific, then you would expect management to get better over time, much as, say, cancer treatment or technology performance does. However, just the opposite seems to be the case. The average tenure on the S&P 500 has been shrinking for decades and CEOs get fired more often.

The truth is that strategy can never be scientific, because the business context is always evolving. Even if you have the right strategy today, it may not be the right strategy for tomorrow. Changes in technology, consumer behavior and the actions of your competitors make that a near certainty.

So instead of assuming that your strategy is right, a much better course is to assume that it is wrong in at least some aspects. Techniques like pre-mortems and red teams can help you to expose flaws in a strategy and make adjustments to overcome them. The more you assume you are wrong, the better your chances are of being right.

Or, as Feynman himself put it, “The first principle is that you must not fool yourself—and you are the easiest person to fool.”

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

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Five Keys to Team Collaboration Success

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Five Keys to Team Collaboration Success

GUEST POST from David Burkus

As the world grows increasingly more complex, so will its challenges—both globally and for any given organization. To solve bigger and more complex problems, you need a bigger and more complex team. And to do that, you will need to foster collaboration in the workplace. But the enhanced need for collaboration brings a paradox.

According to a recent study summarized in Harvard Business Review, team success requires teams to be larger, more diverse, more virtual and more specialized. But those same four characteristics make it hard for teams to get anything done. Increased diversity, in and of itself, can bring more and better ideas—but it can also bring more friction as people fight for their own ideas or more stagnation as people decide to work in their own way and not collaborate with people who work differently.

Larger teams need more collaboration, but their very size and composition makes it harder. In this article, we’ll outline 5 ways to foster collaboration on teams—no matter how large or diverse those teams are.

1. Make Priorities Clear

The first way to foster collaboration on teams is to make priorities clear. For many employees, it’s surprisingly unclear exactly what the key tasks and objectives are. Especially for those working on matrixed teams, it can become really difficult to decide how best to spend their time each day. They need clarity, and especially need clarity to know who they need to connect with in order to achieve those key objectives. When new tasks come in or when changes are required, that’s when it’s most important to help the whole team refocus by outlining how priorities have been reordered (or stay focused by explaining that they haven’t). Beyond helping individuals know their own priorities, making them clear helps teammates know what each other are focused on in order to better offer them help.

2. Hold Huddles

The second way to foster collaboration on teams is to hold huddles. Huddles refers to the regular cycle of coordination meetings on your team—or starting that regular cycle if you’re not. Huddles aren’t long, agenda-driven meetings where everyone delivers slide deck laden monologues. Instead, they’re quick but frequent meetings where teammates take turns stating what they’ve completed, where they’re focused now, and where they need help. In some cases, huddles don’t even need to be a synchronous meeting (especially if you’re team already has too many meetings). The important thing for collaboration is that everyone on the team is aware of what others are working on and kept updated on any changes that have happened since the last time they huddled. They know how their work fits into the larger team objectives, and they know where they can best assist their teammate’s work.

3. Set If-Then Plans

The third way to foster collaboration on teams is to set “if-then” plans. When planning out a project, and perhaps towards the end of each huddle, it’s worthwhile to look at any possible roadblocks and derailers and determine what changes need to happen if those roadblocks appear. In other words, if this happens then we agree to that pivot. (“If we need to cut the marketing budget, then we’ll focus less on advertisements and more on direct response.”) “If-then” plans can even help individuals plan out their work. After a huddle, they’ll know what each teammate is working on so they can determine what they can start now and what needs to wait until another teammate completes a task. (“If I get the final numbers from Sarah, then I can start working on the slide deck for the report.”) “If-then” plans keep people informed and ready to act when planned for or unplanned or events happen, and that keeps them collaborating.

4. Write Teammate Manuals

The fourth way to foster collaboration on teams is to write teammate manuals. A teammate manual or “manual of me” happens when teammates reflect on themselves, their work preferences, and their strengths and weaknesses and then report those out to the team. The simplest way is by answering four, fill-in-the-blank questions: I’m at my best when _____, I’m at my worst when _____, You can count on me to _____, I need you too. Once someone shares those answers, her teammates immediately know her strengths and weaknesses and also some of her preferred tasks. That makes it easier to collaborate with her and makes it easier to know when to ask for help—and when to offer it. And when new employees join a team, teammate manuals ensure they get connected to and collaborating with their new teammates quickly.

5. Find Free Times

The fifth way to foster collaboration on teams is to find free times. It may sound counterintuitive, but for fostering collaboration some of the best time spent is time not working at all. It could be sharing a meal, grabbing a coffee, or a longer more elaborate off-site. But when teams spend time together that’s not work-related, they have broader conversations and start to self-disclose about other areas of their life. That helps them build “uncommon commonalities” that make them feel better connected to each other in the long-term (and gives them reasons to stay in touch with each other more often). Long-term, uncommon commonalities turn into work friendships—and being friends with even just one person on the team increases connection and collaboration to the whole team.

Looking at this complete list, the first three actions seem much more tactical and the last two seem much more cordial. That may make it tempting to start with the “hard” skills practices to foster collaboration. But it turns out the softer, more empathetic activities actually increase collaboration more. Because the “soft” skills practices help teammates better understand how each other works—and that helps everyone know how to support each other to do their best work ever.

Image credit: Unsplash

Originally published at https://davidburkus.com on February 13, 2023.

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Rise of the Chief Trust Officer

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Rise of the Chief Trust Officer

GUEST POST from Shep Hyken

Do your customers trust you?

Are you sure?

According to PwC’s 2022 Consumer Intelligence Series Survey on Trust, 87% of executives think customers highly trust their companies, but only about 30% of customers do. That’s a 57% gap!

The PwC survey also found 71% of consumers say they’re unlikely to buy if a company loses their trust, and 71% of employees say they’re likely to leave if they lose trust. The lack of trust can result in huge problems.

Deloitte reports that of more than 260 C-suite executives surveyed, 61% claimed their organizations would work to improve trust with customers and employees. However, just 19% have a leader in the C-suite to oversee the effort, and less than 14% have a way to track trust. Ashley Reichheld, principal and trust leader at Deloitte Consulting LLP, says, “Building trust is among the most powerful ways brands can earn loyalty, drive differentiation and create competitive advantage.”

According to David Horsager, global authority on trust, “A lack of trust is your biggest expense in business.” His research has found that when a leader is untrusted, both employee and customer satisfaction decreases. Conversely, if a brand is trusted, revenue and employee retention increase.

The goal is to narrow the trust gap. Ideally, you want to eliminate the gap altogether. Here are ten ways to make that happen:

  1. Be Transparent – Being open and honest about your policies, delivery times, processes and more builds trust and confidence with your customers. You want them to know you and how you operate.

  2. Do What You Say You Will Do – Deliver on whatever you promise. There are many ways to lose a customer’s trust, but the fastest may be to break a promise. In short, a broken promise is a lie.

  3. Provide Excellent Customer Service – Our customer experience research found that 84% of consumers trust a company or brand more if it provides an excellent customer service experience.

  4. Protect Your Customer’s Privacy – Data protection is a hot topic. With all the data breaches, customers need to know you make a great effort to protect any information they share with you.

  5. Don’t Abuse Your Customer’s Data – This goes right along with protecting your customer’s privacy. If they are willing to give you information about themselves, even if it is just payment information and an email address, don’t abuse it by spamming the customer or selling the information to others.

  6. Be Reliable – A customer expects that what they buy from a company does what it is supposed to do. Products must be reliable and dependable. In addition, they also expect the company to stand behind what it sells with the right level of customer service.

  7. Fast Response – Customers have different tolerances for how long they will wait on hold, wait for a return phone call, an email response, etc. When it comes to customer service, fast means meeting a customer’s expectations.

  8. Be Accessible – Start with being easy to reach. Easy-to-find contact information on a website is important. Hours of operation, at least for customer service, must also meet your customer’s needs and expectations.

  9. Act on Customer Feedback – It’s one thing to gather feedback. It’s another to act on it. And once you act on the feedback, let the customers know they were heard. Always thank customers for their feedback, and follow up if it is appropriate to do so.

Create a Chief Trust Officer Role (or Something Similar) – This goes back to the finding from Deloitte at the beginning of this article. Just 19% of companies have a leader in the C-suite to oversee the effort of creating trust with customers.

Now that we understand more about the importance of trust, we might say those companies with a dedicated “trust officer” are a step ahead, taking advantage of a somewhat overlooked aspect of customer service. Seems like a great opportunity for any company to step up and focus on building trust—and the business that is sure to follow.

This article was originally published on Forbes.com.

Image Credit: Pixabay

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Struggling to Innovate? Try This Instead

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Struggling to Innovate? Try This Instead

GUEST POST from Robyn Bolton

Everyone is an innovator on January 1.

That’s the day when each of us resolves to do something new that creates value.

  • Start working out so I lose weight, look better, and feel healthier.
  • Stop smoking, so I live longer.
  • Turn off my computer and phone at 6:00 pm so I focus on family.

Only 20% of people are innovators on February 1. The rest of us gave up our resolutions and decided to keep doing the same things that create (good enough) value.

Your business is no different.

At the start of the fiscal year, you resolve to innovate!

  • Explore new offerings, customers, and business models
  • Experiment with new ways to get things done
  • Enter new markets

Then something goes wrong, and you divert some people (not everyone!) from innovating to fixing an operational problem.

Then the first quarter starts coming in below expectations, and you cut budgets to stay on track to deliver the bottom line.

Then something else happens, and something else, and something else, and soon it’s “February 1,” and, for excellent and logical reasons, you give up your resolution to innovate and focus all your resources on operating and hitting your KPIs.

Resolve to Revive.

Innovation is something NEW that creates value.

New is hard. It’s difficult to start something new, and it’s challenging to continue doing it when things inevitably go awry. Investing in something uncertain is risky, primarily when more “certain” investment opportunities exist. It’s why New Year’s resolutions and Innovation strategies don’t stick.

Revival is the creation of new value from OLD.

When you work on Revival, you go back to the old things, the things you explored, tried, implemented, or even launched years ago that didn’t work then but could create more value than anything you’re doing today.

Your business is filled with Revival opportunities.

How to Reveal Revivals

Ask, “What did we do before…?”

Everything we do now – research, development, marketing, sales, communication, M&A – was done before smartphones, laptops, desktops, and even mainframes. Often new technology makes our work easier or more efficient. But sometimes, it just creates work and bad habits.

If you are trying to make Zoom/Teams calls less exhausting and more productive, try to remember meetings before Zoom/Teams. They were conference calls. So, next time you need to meet, revive and schedule a phone conference (or a cameras-off Zoom/Teams call).

Find the failures

Most companies are highly skilled at hiding any evidence of failure. But the memories and stories live on in the people who worked on them. Talk to them, and you may discover a blockbuster idea that failed for reasons you can quickly address.

Like Post-It Notes.

While some parts of the Post-Its story are true – the adhesive was discovered by accident and first used to bookmark pages in a hymnal, most people don’t know that 10 YEARS passed between hymnal use and market success. In that decade, the project was shelved twice, failed in a test market, and given away as free samples before it became successful.

Resurrect the Dead

The decision to exit a market or discontinue a product is never easy or done lightly. And once management makes the decision, people operate under the assumption that the company should never consider returning. But that belief can sometimes be wrong.

Consider Yuengling, America’s oldest brewery and one of its old ice cream shops.

In 1829, David G. Yuengling founded Eagle Brewing in Pottsville, PA. The business did well until, you guessed it, Prohibition. In 1920, D.G. Yuengling & Sons (formerly Eagle Brewing) built a plant across the street from their brewery and began producing ice cream. When Prohibition ends, brewing restarts, and ice cream production continues. Until 1985, when a new generation takes the helm at Yuengling and, under the guise of operational efficiency and business optimization, shut down the ice cream business to focus on beer. TWENTY-NINE YEARS later, executives looking for growth opportunities remembered the ice cream business and re-launched the product to overwhelming customer demand.

Just because you need growth doesn’t mean you need New.

Innovation is something new that creates value. But it doesn’t have to be new to the world.

Tremendous value can be created and captured by doing old things in new ways, markets, or eras.

After all, everything old is new again.

Image credit: Pexels

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How to Lead Innovation and Embrace Innovative Leadership

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How to Lead Innovation and Embrace Innovative Leadership

GUEST POST from Diana Porumboiu

Leaders are bombarded from all directions with advice on how to behave as leaders. It seems like we all know what it takes to lead innovation, at least in theory, yet the attention is mostly focused on famous innovators who oftentimes are the exceptions, rather than the rule.

What’s more, we tend to forget that the greatest, most famous innovators, with all their qualities and contributions to the world, are not necessarily the best of leaders. Great leaders who rarely make the headlines, if they ever do, are usually less controversial.

However, their lack of fame doesn’t diminish their innovativeness. That’s why this article wants to provide some insights into what it takes to lead innovation with the practices, methods, behaviors, and mindsets of successful innovation leaders.

As our previous article focused on nurturing innovative behaviors in employees, this time we’re down to some practical aspects of leading innovation at an organizational level.

Innovative leadership and commitment

A McKinsey research sheds some light on what successful innovators get right, and how their organizations become high performing by committing to a set of essential practices.

In short, their survey revealed that the bar is rising among innovators, and during the past five years they have become more successful at innovation as they committed to a larger array of operating models. In 2016 high performing innovators focused mostly on vision and strategy. But In 2021 they pulled further away from competitors by extending their focus to new business models and to scaling their innovations faster and more effectively.

These are all interesting insights into how innovation practices support the growth of organizations. But what are they telling us about specific abilities and behaviors required to lead innovation? To better understand this, let’s look into some of the research conducted by Linda A. Hill, top expert on leadership, change and innovation, who paints a clearer picture of the specific qualities.

  • Adaptability

In times filled with ambiguity and uncertainty, it’s becoming more difficult to make decisions and guide others on the right path. Adaptability might come natural to some people, but others need to cultivate it through practice, exposure to different circumstances and activities. Developing adaptive behavior helps in taking bolder decisions, an essential aspect for innovation.

We’ve seen in other cases how innovators with strong convictions on their vision or new ideas are not very open to new data. This is tough to balance: maintaining your confidence and showing the way for the team, while remaining adaptable.

Practical tip: Instead of building a detailed project plan for an innovation project, try building a plan based around clear goals and time framed milestones, but leave room for the team to figure out the path to get to them.

  • Comfort with ambiguity

This is closely linked to the previous point because to become comfortable with ambiguity you also have to adapt and operate in a somehow hazy and confusing reality. This is very important especially in the early beginnings of innovation, when the fuzzy front-end stage of the innovation process creates a lot of ambiguity.

But as you might know, innovation means to dive in the unknown from time to time. As a leader you need to navigate the tough road of visualizing the goals for the team while admitting that you might not always know the way. At the same time, you want to get the team on the same journey and help them feel comfortable with that ambiguity.

Practical tip: Managing innovation is one way of becoming more comfortable with ambiguity. We created a free, in-depth guide on how to manage innovation which you might find useful. This is a comprehensive toolkit that can help you plan your strategy, build your processes, and drive more innovation in the oganization. You can find it here.

  • Curiosity

Curiosity pushes innovators to new discoveries. It’s also what fuels learning and change. As a leader you need to be able to learn and prepare for the future. Sure, curiosity, even more than adaptability can’t be easily measured or taught. But curious leaders should always ask questions, and not just any questions.

The best innovators understand things deeply and address root problems, not just surface level symptoms.

Practical tip: Whether you are naturally curious or trying to boost curiosity in the team, the five whys is an effective technique for getting to the root of underlying problems. The idea behind this technique is to ask “why” five times in a row, whether you think you previously received a good answer or not.

Viima Five Whys

  • Creativity

Creativity plays an important role in innovation, whether it fosters novel ideas or ingenious solutions. However, being creative is not enough to make innovation happen. Many leaders consider creativity an important skill for leading innovation. This begs the question: should leaders be the most creative ones, or should they work to enable creativity in others?

The answer lies somewhere in the middle, as creative leadership is essential in bringing clarity and purpose to the team. A creative leader can change perceptions and show the way. However, the strength of leaders who lead for innovation lies in managing for creativity. So as a leader you don’t have to be the source of all genius ideas but engage people at the right time to do the creative work.

To sum this up, there is a role for leaders in creative work, but not in the traditional sense of generating ideas and asking others to implement them.

Practical tip: If you want to spur creativity in your team try setting constraints and challenge the team to come up with solutions despite perceived challenges. Inevitably, the environment in which you operate will come with some constraints, whether those are operational, financial, legal or of a different nature.

Don’t look at constraints as negative things. Research shows that innovators usually succeed because of constraints, not despite of them. Brian Chesky, Airbnb co-founder & CEO believes “constraints create creativity” and without some of those he probably wouldn’t have done half the creative decisions that would lay the foundations for Airbnb’s remarkable success.

Practical steps to lead innovation

If leading innovation were that simple, we’d have more leaders and organizations excelling at it. However, as difficult as it might sound it’s not impossible and luckily, we have plenty of examples to learn from.

A survey conducted by Forbes among 100 innovation leaders revealed that their success lies in actively trying to build and shape their organization for the future. This means that they actively challenge the status quo, experiment, ask questions, are keen observers and engage in conversations with people who are very different from them.

This discovery work of observing, learning, and experimenting leads to better decision making on less risky ideas with higher impact.

Start with the big picture…

The best innovation leaders aren’t just visionaries, who set big goals that show the way to the future. They also enable people to work through the challenges by removing barriers and empowering them to hop on the same boat towards that future.

  • Start with the strategy because any innovation program should be anchored to an organization-wide strategy. Just with the vision and without a tangible business case you don’t really have innovation.
  • Come up with a plan that stirs everyone in the same direction.

Many innovators, especially those who disrupt their industry, are not the best executors and sometimes they don’t have to be, if they have the right people on the job. To this end, collaboration and co-creation are essential, just as it is the empowerment of those who are knowledgeable to make important decisions to get to those goals.

A high-level plan which serves as a good example of how innovators set clear, ambitious goals is Elon Musk’s series of Master Plans, from 2006, 2016 and the 2022 one, to be released soon. These plans played an important role in Tesla’s success, giving a clear direction for the future illustrating how they are actually going to move towards fulfilling their mission of accelerating world’s transition to sustainable energy.

Tesla Unsplash

Of course, there’s more to a plan than an ambitious statement, but people need to be inspired, to feel that through their work they can change the world around them. That being said, an ambitious plan still needs to be flexible to some degree to allow for different ways of achieving it.

The cleverness of these master plans lies in their simplicity which makes them easy to understand and remember. They capture the big picture but still leave room for the team to find the best way of accomplishing them.

…then zoom in on the details

  • To achieve those ambitious goals, leaders need innovative teams, and to nurture internal talent.

With internal scouting systems organizations can develop the skills of existing teams. As is the case with innovation, if you can’t buy something, you have to build it yourself.

It’s beyond the scope of this article to talk about the winning strategies in the war for talent, but there should be a stronger focus on nurturing existing talent and creating the capabilities to innovate through talent development programs, learning opportunities, and a positive employee experience.

Innovation can come from various areas of the organization, and it all comes down to how employees are led to innovate. Former Volkswagen CMO, Luca de Meo managed to unify VW’s branding by discovering and nurturing the mutual sense of purpose of the employees.

He achieved this by involving employees in the creation of a centralized brand. For example, one brainstorming workshop was organized as a design lab to prototype, test, analyze and openly discuss ideas with employees from different departments and areas of expertise.

Engaging employees in innovation work can unlock the wealth of knowledge in an organization. Empowering them to innovate it’s even more powerful, as employees become innovators themselves. As Linda Hill also observes, people’s talents are not used to their fullest, but when it eventually happens, the results show up as well. In Volkswagen’s case, de Meo’s approach was fruitful, the brand moving up the global ranks from 55th to 39th.

…and take one step at a time towards that goal

The last piece to the puzzle, and maybe the most important is to take things one at a time while keeping your options open. There’s a lot of emphasis on the bigger picture, planning and strategy, but these won’t eliminate ambiguity.

So, the best way forward is to keep that vision in mind and help the organization move towards it. You don’t need to know each step in your path in advance, as long as you keep up a good pace and keep moving in the right direction, one step at a time.

Like with all innovative work, you’ll encounter challenges and things won’t ever go as planned, so be prepared to alter the initial plan. That’s why it’s not advised to put all your eggs in one basket. As John Carter explains, you need two interlinked systems that can help you select and grow the best products or ideas.

  • An annual, systematic portfolio planning process, tied to budgeting, and
  • An ongoing, agile, portfolio management process

Another thing to consider is the modular approach, which helps speed up learning. As Rita McGrath explains in this recent article, making your offerings modular you can begin to generate benefits early in the projects’ life. Put together, these two approaches are very helpful in building capabilities that provide economies of scale while still remaining flexible.

Leading innovation by example

In the following section we didn’t go for single success stories of leaders because systematic innovation doesn’t come down to one person. Instead, we’ll show at a higher level how leadership models enabled everyone in the organization to turn innovation into an everyday habit.

Netflix

Even though Netflix might go through a rough patch, we can’t deny its leading position as an innovator in the entertainment industry. From a DVD sales and rental company to a global streaming service, the current organizational structure at Netflix provides plenty of freedom and responsibility to its employees.

Netflix is divided in three main divisions and is maintaining the principles of total quality management: the functional team (CEO, legal, content communication etc.), geographical teams (in charge of local and international streaming) and the product teams who ensures the effectiveness of operations. This unitary form, the corporate headquarters direct strategies implemented in geographical divisions.

Viima Netflix Org Structure

  • The first division, the functional one, is led by Reed Hastings, CEO and Ted Sarandos, Co-CEO. They meet regularly with the R-staff, the group made of Netflix veterans and the general counsel.
  • The next in line is the E-staff group, made of executives who oversee different teams within the company. They each have a different area of focus, like platform engineering, regional marketing and content.
  • There is also a group of directors, below the vice presidents, who meet to review the current state of the company.

The flat organizational structure at Netflix encourages a culture of independent decision making, openness, high effectiveness, and flexibility. This approach to leadership is based on their business need of staying ahead of the curve by making decisions fast.

Apple

Apple is to this day one of the most innovative companies, and much of its success is attributed to Steve Jobs. However, in this case we won’t focus on his leadership skills, which are rather controversial, but on his legacy and how the company’s structure has evolved over the years.

What makes Apple unique is that it’s organized around expertise, rather than the traditional business units.

This requires open mindedness from senior leaders, to inspire, and influence colleagues to contribute towards the goals. Ultimately, decisions are made in a coordinated manner by the most qualified people. There are no general managers at Apple. Instead, there are expert leaders who need to have 3 main characteristics.

  • Deep expertise.

It’s easier to train an expert to be a manager than to train a manager to be an expert. So, at Apple experts lead experts. They have over 600 experts working on camera hardware technology, and they are led by Graham Townsend (a camera expert himself).

  • Deep immersion in the details.

In Apple’s case leaders should know the details of their organization 3 levels down and be able to push, probe and smell an issue and know which issue is important and where to focus attention. For example, they are very particular with the shape of the corners of their devices. Apple leaders insist on continuous curves, a small difference but executing it demands that they commit to precise manufacturing.

This relentless pursuit of perfection is what differentiates some companies. Even though overdoing it can lead to micromanagement and make feel employees like they are not trusted, you need to strike a balance between the two.

  • Willingness to collaboratively debate.

Having so many teams of experts requires a lot of back and forth and debate. An overly polite culture can hinder creativity, as people might not speak up because they don’t want to upset someone. So, creative abrasion is very important in collaborative work.

To develop the dual lens camera portrait mode, Apple had 40 teams of specialists working together and they disagreed, pushed back, promoted or rejected ideas and build on top of each other’s ideas.

At the same time, leaders should be able to make decisions even when there’s no data available. For this, they first have to listen to everyone. It might be that there is no agreement or reliable information that can help in the decision making, but that’s where good leaders excel and what Jobs did at Apple as well. He used his own judgment to make decisions, even though not everyone was happy about those. Otherwise, debates could go on forever, become bottlenecks or compromises that lead to substandard results.

Apple Unsplash

However, there are also challenges that come with Apple’s managerial structure, which is not very common in other companies. When organizations grow, their leadership also needs to adapt and scale accordingly.

For example, while the number of employees grew eight times, the number of VPs reporting to executives only doubled. To handle all the new responsibilities, they could no longer be immersed in the details. So, they decided to focus on a few core activities that bring most value and those that require less attention are pushed down to people who are trained to handle them. That being said, leadership models need to be flexible in any innovative, growing organization.

Conclusion

With the right leadership, processes and structures in place, innovation can thrive in your organization. As leaders is important to set ambitious goals which can inspire and show the way for your team.

Innovation can seem like an insurmountable task. Even though the details matter and aspiring to excellence is important, you always have to keep focused on the end goal and take one step at a time towards that. At the same time, keep an open mind, stay curious and inspire others to follow suit.

In the end, leading innovation also means building the capabilities, processes and environment that foster innovation and encourage others to become innovators.

This article was originally published in Viima’s blog.

Image credits: Viima, Unsplash, Pexels

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Both Sides of the Story

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Both Sides of the Story

GUEST POST from Mike Shipulski

When you tell the truth and someone reacts negatively, their negativity is a surrogate for significance.

When you withhold the truth because someone will react negatively, you do everyone a disservice.

When you know what to do, let someone else do it.

When you’re absolutely sure what to do, maybe you’ve been doing it too long.

When you’re in a situation of complete uncertainty, try something. There’s no other way.

When you’re told it’s a bad idea, it’s probably a good one, but for a whole different reason.

When you’re told it’s a good idea, it’s time to come up with a less conventional idea.

When you’re afraid to speak up, your fear is a surrogate for importance.

When you’re afraid to speak up and you don’t, you do your company a disservice.

When you speak up and are met with laughter, congratulations, your idea is novel.

When you get angry, that says nothing about the thing you’re angry about and everything about you.

When someone makes you angry, that someone is always you.

When you’re afraid, be afraid and do it anyway.

When you’re not afraid, try harder.

When you’re understood the first time you bring up a new idea, it’s not new enough.

When you’re misunderstood, you could be onto something. Double down.

When you’re comfortable, stop what you’re doing and do something that makes you uncomfortable.

It’s time to get comfortable with being uncomfortable.

Image credit: “mirror image pickup” by jasoneppink is licensed under CC BY 2.0

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A Guide to Harnessing the Power of Foresight

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Unlock Your Company’s Full Potential

A Guide to Harnessing the Power of Foresight

GUEST POST from Teresa Spangler

Foresight is the superpower of the 21st century business world, allowing companies to see beyond the horizon and seize opportunities before they become trends.

Innovation has always been the driving force behind progress and growth in the business world. However, in today’s rapidly changing landscape, it has become even more essential to stay ahead of the curve and uncover major shifts and hidden opportunities to remain competitive. Companies that can harness the power of foresight and innovate in response to changing market conditions will be well-positioned to succeed in the years ahead.

So, what exactly is foresight, and how can it be leveraged to drive innovation? Simply put, foresight is the ability to anticipate and prepare for future trends and developments. It involves a deep understanding of the current landscape and an awareness of emerging technologies, consumer preferences, and macroeconomic forces. By staying attuned to these trends and developments, companies can stay ahead of the curve and take advantage of new opportunities.

Company leaders can take several key actions to tap into the power of foresight and drive innovation in their organizations. Here are a few steps to get started:

1. Develop a culture of innovation: To truly drive innovation, creating a culture that encourages and supports creative thinking and risk-taking is essential. This can be accomplished through a variety of means, including:

  • Encouraging open and transparent communication among employees
  • Providing opportunities for employees to share their ideas and collaborate with others
  • Offering training and development programs that help employees develop new skills and knowledge
  • Encouraging a “fail fast, learn fast” mentality

2. Invest in research and development: To stay ahead of the curve and uncover new opportunities, companies must be willing to invest in research and development. This could involve dedicating resources to exploring new technologies, conducting market research, or experimenting with new business models.

  • Protect your ideas is easier now leveraging the blockchain, sign up and protect your ideas at no charge for the first three and manage the features along the sprint cycles. Link

3. Foster partnerships and collaborations: Collaboration is key to unlocking the full potential of innovation. By working with other companies, universities, and organizations, companies can access new ideas, technologies, and expertise that would be difficult to acquire on their own.

  • Your best customers want to be your most collaborative partners. How are you engaging them in foresight and planning for the future?
  • Stay connected to customers: Understanding customer needs and preferences is critical to driving innovation. Companies should regularly engage with customers and solicit feedback to stay attuned to their changing needs.

4. Embrace new technologies: Technology is driving many of the significant shifts and hidden opportunities in the business world. Companies that are able to embrace new technologies and leverage them to improve their products and services will be well-positioned to succeed. Seems so simple these days, but there are so many new technologies.

  • Bring in experts to keep you abreast of new ways technologies are integrating
  • Explore a new technology in with a different set of filters – break it down and break down how you might use it to innovation.

5. Be open to change: Finally, companies must be willing to embrace change and be flexible in their approach. The world is constantly evolving, and companies that are able to adapt and evolve in response to new trends and developments will be better positioned to succeed. Are you tired of hearing BE OPEN TO CHANGE? I imagine so, it’s fatiguing all the change we’ve been through the last 4 years however, change in the world is accelerating, keeping pace can be daunting.

  • Ensure you have people with eyes on the future
  • Create foresight team and create scenarios of your future
  • Imagine the best possible change but also imagine the downside “what ifs”

The business world is changing rapidly, and companies that can stay ahead of the curve and innovate in response to shifting market conditions will be well-positioned to succeed. By tapping into the power of foresight and taking the necessary steps to drive innovation, company leaders can unlock new opportunities and stay ahead of the competition. So why wait? Start taking action today and seize the opportunities that lie ahead.

FutureForward podcasts (and videos) are now available on your favorite Channel:

Image credit: Pixabay

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Creating Great Change, Transformation and Innovation Teams

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Creating Great Change, Transformation and Innovation Teams

GUEST POST from Stefan Lindegaard

Teams and organizations need to be agile, resilient and able to effectively navigate change and transformation to stay ahead in today’s fast-paced business environment.

Thus, the above question is one I often ponder upon and discuss in my network and circles. I would like to start a conversation here to better identify the key elements to make a team great for adapting to change, managing transformation and driving innovation.

So, this is like a discussion starter. Feel free to engage and follow-up with your ideas and perspectives in the comments!

What are the key benefits for you and your team(s)?

I am working on these three key benefits that a team should strive for as they develop through the building blocks I propose in this context.

1. Improved ability to embrace change and innovation!

Teams need to develop the skills and mindset needed to quickly and effectively respond to new situations, changes, and opportunities, leading to a more agile and adaptive teams and organization.

2. Stronger team cohesion and communication!

By focusing on psychological safety, emotional intelligence, resilience and internal communication around change and transformation, participants can get insights into creating an even more supportive work environment that encourages open communication and collaboration, leading to stronger relationships, a circle of us and a more positive work culture.

3. Continuous growth and development!

When teams and the team-members step outside their comfort zones, foster a culture of continuous learning, and develop a growth mindset this can lead to ongoing personal and professional growth for all team members.

The Building Blocks to Apply for Stronger Teams

Here, I share a range of topics that teams can work more specifically with in order to get better at adapting to changes, managing transformation and driving innovation.

Maybe you can suggest others like this or let me know what you think is really relevant here or not so at all?

1. Adaptability and Agility: The ability to be flexible and responsive in a fast-paced environment, adapting to change and embracing new opportunities.

2. Fostering Psychological Safety: Creating a supportive work environment that encourages open communication, experimentation, and learning.

3. Developing a Growth Mindset as a Team: Cultivating a curious, learning-oriented approach to challenges and opportunities, fostering a team environment that values personal and professional growth.

4. Internal Communication Around Changes and Transformation: Clear and effective communication of vision, strategy, and goals to team members and stakeholders to help them understand and navigate changes and transformations.

5. Collaboration Capabilities: Enhancing the ability to collaborate effectively with stakeholders, partners, and other teams, both within and outside the organization, to achieve common goals.

6. Emotional Intelligence (EI): Recognizing, understanding, and managing emotions to effectively navigate social interactions and build positive relationships.

7. Resilience: Bouncing back from challenges, maintaining positivity, and adapting to adversity through proactive approaches.

8. Strategic Vision: Aligning goals and vision with the organization’s future, anticipating future trends and challenges, and thinking systematically about goals, resources, and challenges.

9. Expanding One’s Comfort Zone: Encouraging personal and professional growth by embracing new challenges and taking calculated risks while continuously learning and developing.

10. Continuous Learning: Fostering a culture of continuous learning, growth, and development.

11. Stakeholder Engagement: Identifying and effectively engaging with internal stakeholders to ensure their support for successful implementation.

12. Data-Driven Decision Making: Making informed decisions by identifying, analyzing, and utilizing relevant data and insights from within the organization.

13. The Circle of Us: Identifying and focusing on the people elements and interpersonal interactions that need to be address to a higher degree to build stronger teams.

14. Empowerment: Many team leaders struggle with empowerment as in giving this to their own teams. Among several reasons for this, two might stand out. 1) They are unsure what they are allowed to do for their own leaders and 2) they don’t know how to increase the level of empowerment for their team members.

15. The “being too busy” Challenge: Everyone is so busy today. This can lead to a focus on the “wrong” things which in particular can have a negative impact in the mid and long-term range. A key issue here is to understand if and how being too busy impacts you in negative ways and then how to address this.

I believe these capabilities and mindset indicators help teams and employees develop and improve in areas critical to their success and growth, allowing them to be more effective and confident in their roles. This is highly needed for change, transformation and innovation.

Please be sure and share your reactions and additions in the comments.

Image Credit: Pexels

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Five Challenges All Teams Face

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Five Challenges All Teams Face

GUEST POST from David Burkus

Teams face a lot of different challenges. Leading a team involves leading through many challenges. You’re given performance objectives. You map out a plan of execution with your team. But pretty quickly, you will run into challenges—both seen and unseen. And while most of these challenges are unique to the work being done and the team doing that work, some challenges are universal for teams.

These challenges all teams face are less about the work and more about teamwork and collaboration. That’s what makes them so common. But because they’re so common, they can be anticipated—and overcome.

In this article, we’ll outline five challenges all teams face and offer some insight on how to overcome them.

1. Finding Direction

The first challenge all teams face is finding direction. Most teams in most organizations don’t get to decide what specifically they get to work on—it comes with their collective job descriptions. However, they still get to make decisions as a team about what the priorities around all their tasks are, and sometimes even who is going to do which task. This is the initial challenge of finding direction. But keeping direction in a changing environment can be just as challenging as well. Priorities often need to change or be rearranged. New tasks are assigned. New changes in the environment happen. And that could mean slight shifts in the direction need to be made.

As a leader, one of the easiest ways to find and keep direction is through a regular “huddle” or weekly meeting. In that meeting, give the team a chance to review what they’re focused on, what they’ve completed, what potential roadblocks they face, and who needs assistance. These weekly meetings help review the large-scale direction and provide space to make any small-scale shifts in direction as well.

2. Improving Communication

The second challenge all teams face is improving communication. Communication is the lifeblood of any relationship, including the relationships on your team. The challenge of improving communication arises because everyone has slightly different communication preferences. Some people prefer to talk in person, some on the phone, some in email. Some people write short, quick emails, others write five paragraph essays. These differences in communication preferences can lead to a lot of miscommunications as well. Many conflicts on a team happen because one person assumed their preferences were shared by everyone else, and they were not.

As a leader, taking the time to have conversations about communication preferences can go a long way toward improving communication. Outline the communication tools the team has available and discuss when the team would prefer to use each one, for what type of communication, and any best practices the team can think of for that tool. Ideally, this leads to a set of group norms around communication and communication tools. Those norms can be revised from time to time but should be done so collectively. Otherwise, everyone goes back to their typical preferences.

3. Building Trust

The third challenge all teams face is building trust. Trust is a core component of teamwork. We need to trust the competency of our teammates—that they’re going to do what they say they’re going to do. But we also need to trust the character of those teammates—we need to know we can admit failures or request help without being demeaned or ostracized. Teams need a climate of trust so that they can safely disagree with each other and engage in task-focused conflict that ensures the best ideas rise to the top.

Research suggests that trust builds through a reciprocal process. So as a leader, the way to build trust on a team is to step out and signal you trust them. The most powerful way to do this is to be vulnerable. Leaders need to share certain vulnerabilities they have. They need to be willing to admit they don’t have all the answers all of the time, and that they need help from the team as well. Lead with vulnerability and teammates will follow, which over time will lead the team into greater levels of trust.

4. Keeping Diversity

The fourth challenge all teams face is keeping diversity. To be fair, many teams still struggle with finding enough diversity, but most leaders and team recognize that diversity on a team is a worthy goal. That creates a new challenge, keeping diversity. Ideally, diverse teams are formed because people with diverse backgrounds bring a diverse set of experience and perspectives to the team. However, as the team works together over time, they start to share the same experiences and perspectives. Eventually, if a team works together long enough, their ideas and opinions will start to become really similar. They may still look like a diverse team, but they act like a monoculture.

As a leader, this means rotating the roster of your team more often than it might seem necessary. It means being comfortable with the idea that people leaving the team can be a net positive as new members, and new perspectives join. It could also mean looking for small scale additions to diversity such as inviting members of different teams into group discussions or encouraging the team to seek out new cross-functional colleagues or new sources of ideas and inspiration.

5. Maintaining Motivation

The fifth challenge all teams is maintaining motivation. Staying motivated as a team, especially when the work gets difficult is a huge challenge for any team. Motivation and engagement happen when the work people are asked to do challenges them just enough to engage their full skillset—but not so much that it seems impossible. It also requires those challenges to be connected to a broader mission or purpose. People want to do work that matters—and teams want to know why their team matters.

As a leader, this requires looking at motivation both individually and teamwide. Individually, pay attention to the task-load of each member of the team. Ensure that they’re being challenged, but not overwhelmed. This may require moving some assignments around to different people on the team. Teamwide, make sure the team understands how its mission and objectives fit into the larger purpose of the organization. Be ready to draw a clear and connecting line between the work the team is asked to do, and the way that work serves a bigger purpose. Perhaps the best way to convey this purpose is by answering the question “Who is served by the work that we do?” and then building in reminders around that “who.”

These five challenges are ones every team faces eventually. But they aren’t the only challenges teams face. However, teams that proactively work to overcome these challenges work together better—and are better able to overcome those new, specific challenges. All teams face these challenges, but the answers to these challenges are how any team can start to do its best work ever.

Image credit: Pexels

Originally published at https://davidburkus.com on January 23, 2023.

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Creating Productive Interactions During Difficult Times

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Creating Productive Interactions During Difficult Times

GUEST POST from Mike Shipulski

When times are stressful, it’s more difficult to be effective and skillful in our interactions with others. Here are some thoughts that could help.

Decide how you want to respond, and then respond accordingly.

Before you respond, take a breath. Your response will be better.

If you find yourself responding before giving yourself permission, stop your response and come clean.

Better responses from you make for even better responses from others.

If you interrupt someone in the middle of their sentence so you can make your point, you made a different point.

If you find yourself preparing your response while listening to someone, that’s not listening.

If you recognize you’re not listening, now there are at least two people who know the truth.

When there are no words coming from your mouth, that doesn’t constitute listening.

The strongest deterrent to listening is talking.

If you disagree with one element of a person’s position, you can, at the same time, agree with other elements of their position. That’s how agreement works.

If you start with agreement, even the smallest bit, disagreement softens.

Before you can disagree, it’s important to listen and understand. And it’s the same with agreement.

It’s easy to agree if that’s what you want to accomplish. And it’s the same for disagreement.

If you want to move toward agreement, start with understanding.

If you want to demonstrate understanding, start with listening.

If you want to demonstrate good listening, start with kindness.

Here are three mantras I find helpful:

  1. Talk less to listen more.

  2. Before you respond, take a breath.

  3. Kindness before agreement.

Image credit: Wikimedia

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