Our People Metrics Are Broken

Our People Metrics Are Broken

GUEST POST from Mike Shipulski

We get what we measure and, generally, we measure what’s easy to measure and not what will build a bridge to the right behavior.

Timeframe. If we measure people on a daily pitch, we get behavior that is maximized over eight hours. If a job will take nine hours, it won’t get done because the output metrics would suffer. It’s like a hundred-meter sprint race where the stopwatch measures output at one hundred meters. The sprinter spends all her energy sprinting one hundred meters and then collapses. There’s no credit for running further than one hundred meters, so they don’t. Have you ever seen a hundred-meter race where someone ran two hundred meters?

Do you want to sprint one hundred meters five days a week? If so, I hope you only need to run five hundred meters. Do you want to run twenty-five miles per week? If so, you should slow down and run five miles per day for five days. You can check in every day to see if the team needs help and measure their miles on Friday afternoon. And if you want the team to run six miles a day, well, you probably have to allocate some time during the week so they can get stronger, improve their running stride, and do preventative maintenance on their sneakers. For several weeks prior to running six miles a day, you’ve got to restrict their running to four miles a day so they have time to train. In that way, your measurement timeframe is months, not days.

Over what timeframe do you measure your people? And, how do you feel about that?

Control Volume. If you have a fish tank, that’s the control volume (CV) for the fish. If you have two fish tanks, you two control volumes – control volume 1 (CV1) and control volume 2 (CV2). With two control volumes, you can optimize each control volume independently. If tank 1 holds red fish and tank 2 holds blue fish, based on the number of fish in the tanks, you put the right amount of fish food in tank 1 for the red fish and the right amount in tank 2 for the blue fish. The red fish of CV1 live their lives and make baby fish using the food you put in CV1. And to measure their progress, you count the number of red fish in CV1 (tank 1). And it’s the same for the blue fish in CV2.

With the two CVs, you can dial in the recipe to grow the most red fish and dial in a different recipe to grow blue fish. But what if you don’t have enough food for both tanks? If you give more food to the blue fish and starve the red fish, the red fish will get angry and make fewer baby fish. And they will be envious of the blue fish. And, likely, the blue fish will gloat. When CV1 gets fewer resources than CV2, the fish notice.

But what if you want to make purple fish? That would require red fish to jump into the blue tank and even more food to shift from CV1 to CV2. Now the red fish in CV1 are really pissed. And though the red fish moved to tank 2 do their best to make purple guppies with the blue fish, neither color know how to make purple fish. They were never given the tools, time, and training to do this new work. And instead of making purple guppies, usually, they eat each other.

We measure our teams over short timeframes and then we’re dissatisfied when they can’t run marathons. It’s time to look inside and decide what you want. Do you want short-term performance or long-term performance? And, no, you can’t have both from the same team.

And we measure our teams on the output of their control volumes and yet ask them to cooperate and coordinate across teams. That doesn’t work because any effort spent to help another control volume comes at the expense of your own. And the fish know this. And we don’t give them the tools, time, and training to work across control volumes. And the fish know this, too.

Image credit: Unsplash

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Customer Wants and Needs Not the Same

Customer Wants and Needs Not the Same

GUEST POST from Shep Hyken

Many years ago, I walked into an Ace Hardware store to find a new hinge for a swinging door. When I showed the salesperson my broken hinge, he asked if I was open to a suggestion. He sold me a better hinge that was less expensive. Who could argue with that? I had no idea that years later, I would write about this example in one of my books, Amaze Every Customer Every Time.

After that, I noticed when salespeople were more helpful than “salesy.” And guess what happens when they practice helpful behavior versus typical sales behavior? They make the sale.

Another example of this “helpful” level of service happened at B&H Photo. I had made a list of equipment I would buy to upgrade my studio so I could create better virtual keynote speeches for my clients. I was getting ready to spend more than $20,000 on equipment. The woman helping me asked me several questions and made some suggestions. She said I was overspending and didn’t need all the gear I thought I did. Her recommendations saved me more than $12,000!

The same thing happened at one of my favorite music stores, Eddie’s Guitar, where I’ve purchased some beautiful-sounding guitars over the years. I had my sights on a jazz guitar that I thought was the best for my budget. Nate, the owner, and Granville, the salesperson, said almost in unison, “You don’t want that. What you want is this one.” It was the same price, yet it sounded so much better.

What I love about these examples is that the focus was on selling me the best. Saving money was a nice perk, but even if they suggested higher-priced items, if they could prove it was more about what I needed versus what I thought I needed, I’d buy. They asked the right questions to understand my needs and made the appropriate suggestions for what was in my best interest. Consider what happened:

  1. They were interested. They asked questions to understand what I needed.
  2. They demonstrated expertise that led to appropriate suggestions.
  3. Money was less important than the customer’s long-term happiness. In these examples, the salespeople cared as much – maybe more – about me than the sale. The result, by the way, is that I’ve been back many times to both stores.
  4. Trust was created. When the salespeople proved they were helping more than selling, they won me over. And by the way, selling with service is a great sales strategy!

The result of these experiences is everything I speak and write about. It doesn’t matter if it’s sales, customer support, or anything else in the customer’s journey. Create an experience that makes them say, “I’ll be back!”

Image Credits: Shep Hyken, Pixabay

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The Hard Problem of Consciousness is Not That Hard

The Hard Problem of Consciousness is Not That Hard

GUEST POST from Geoffrey A. Moore

We human beings like to believe we are special—and we are, but not as special as we might like to think. One manifestation of our need to be exceptional is the way we privilege our experience of consciousness. This has led to a raft of philosophizing which can be organized around David Chalmers’ formulation of “the hard problem.”

In case this is a new phrase for you, here is some context from our friends at Wikipedia:

“… even when we have explained the performance of all the cognitive and behavioral functions in the vicinity of experience—perceptual discrimination, categorization, internal access, verbal report—there may still remain a further unanswered question: Why is the performance of these functions accompanied by experience?”

— David Chalmers, Facing up to the problem of consciousness

The problem of consciousness, Chalmers argues, is two problems: the easy problems and the hard problem. The easy problems may include how sensory systems work, how such data is processed in the brain, how that data influences behavior or verbal reports, the neural basis of thought and emotion, and so on. The hard problem is the problem of why and how those processes are accompanied by experience.3 It may further include the question of why these processes are accompanied by that particular experience rather than another experience.

The key word here is experience. It emerges out of cognitive processes, but it is not completely reducible to them. For anyone who has read much in the field of complexity, this should not come as a surprise. All complex systems share the phenomenon of higher orders of organization emerging out of lower orders, as seen in the frequently used example of how cells, tissues, organs, and organisms all interrelate. Experience is just the next level.

The notion that explaining experience is a hard problem comes from locating it at the wrong level of emergence. Materialists place it too low—they argue it is reducible to physical phenomena, which is simply another way of denying that emergence is a meaningful construct. Shakespeare is reducible to quantum effects? Good luck with that.

Most people’s problems with explaining experience, on the other hand, is that they place it too high. They want to use their own personal experience as a grounding point. The problem is that our personal experience of consciousness is deeply inflected by our immersion in language, but it is clear that experience precedes language acquisition, as we see in our infants as well as our pets. Philosophers call such experiences qualia, and they attribute all sorts of ineluctable and mysterious qualities to them. But there is a much better way to understand what qualia really are—namely, the pre-linguistic mind’s predecessor to ideas. That is, they are representations of reality that confer strategic advantage to the organism that can host and act upon them.

Experience in this context is the ability to detect, attend to, learn from, and respond to signals from our environment, whether they be externally or internally generated. Experiences are what we remember. That is why they are so important to us.

Now, as language-enabled humans, we verbalize these experiences constantly, which is what leads us to locate them higher up in the order of emergence, after language itself has emerged. Of course, we do have experiences with language directly—lots of them. But we need to acknowledge that our identity as experiencers is not dependent upon, indeed precedes our acquisition of, language capability.

With this framework in mind, let’s revisit some of the formulations of the hard problem to see if we can’t nip them in the bud.

  • The hard problem of consciousness is the problem of explaining why and how we have qualia or phenomenal experiences. Our explanation is that qualia are mental abstractions of phenomenal experiences that, when remembered and acted upon, confer strategic advantage to organisms under conditions of natural and sexual selection. Prior to the emergence of brains, “remembering and acting upon” is a function of chemical signals activating organisms to alter their behavior and, over time, to privilege tendencies that reinforce survival. Once brain emerges, chemical signaling is supplemented by electrical signaling to the same ends. There is no magic here, only a change of medium.
  • Annaka Harris poses the hard problem as the question of “how experience arise[s] out of non-sentient matter.” The answer to this question is, “level by level.” First sentience has to emerge from non-sentience. That happens with the emergence of life at the cellular level. Then sentience has to spread beyond the cell. That happens when chemical signaling enables cellular communication. Then sentience has to speed up to enable mobile life. That happens when electrical signaling enabled by nerves supplements chemical signaling enabled by circulatory systems. Then signaling has to complexify into meta-signaling, the aggregation of signals into qualia, remembered as experiences. Again, no miracles required.
  • Others, such as Daniel Dennett and Patricia Churchland believe that the hard problem is really more of a collection of easy problems, and will be solved through further analysis of the brain and behavior. If so, it will be through the lens of emergence, not through the mechanics of reductive materialism.
  • Consciousness is an ambiguous term. It can be used to mean self-consciousness, awareness, the state of being awake, and so on. Chalmers uses Thomas Nagel’s definition of consciousness: the feeling of what it is like to be something. Consciousness, in this sense, is synonymous with experience. Now we are in the language-inflected zone where we are going to get consciousness wrong because we are entangling it in levels of emergence that come later. Specifically, to experience anything as like anything else is not possible without the intervention of language. That is, likeness is not a qualia, it is a language-enabled idea. Thus, when Thomas Nagel famously asked, “What is it like to be a bat?” he is posing a question that has meaning only for humans, never for bats.

Going back to the first sentence above, self-consciousness is another concept that has been language-inflected in that only human beings have selves. Selves, in other words, are creations of language. More specifically, our selves are characters embedded in narratives, and use both the narratives and the character profiles to organize our lives. This is a completely language-dependent undertaking and thus not available to pets or infants. Our infants are self-sentient, but it is not until the little darlings learn language, hear stories, then hear stories about themselves, that they become conscious of their own selves as separate and distinct from other selves.

On the other hand, if we use the definitions of consciousness as synonymous with awareness or being awake, then we are exactly at the right level because both those capabilities are the symptoms of, and thus synonymous with, the emergence of consciousness.

  • Chalmers argues that experience is more than the sum of its parts. In other words, experience is irreducible. Yes, but let’s not be mysterious here. Experience emerges from the sum of its parts, just like any other layer of reality emergences from its component elements. To say something is irreducible does not mean that it is unexplainable.
  • Wolfgang Fasching argues that the hard problem is not about qualia, but about pure what-it-is-like-ness of experience in Nagel’s sense, about the very givenness of any phenomenal contents itself:

Today there is a strong tendency to simply equate consciousness with qualia. Yet there is clearly something not quite right about this. The “itchiness of itches” and the “hurtfulness of pain” are qualities we are conscious of. So, philosophy of mind tends to treat consciousness as if it consisted simply of the contents of consciousness (the phenomenal qualities), while it really is precisely consciousness of contents, the very givenness of whatever is subjectively given. And therefore, the problem of consciousness does not pertain so much to some alleged “mysterious, nonpublic objects”, i.e. objects that seem to be only “visible” to the respective subject, but rather to the nature of “seeing” itself (and in today’s philosophy of mind astonishingly little is said about the latter).

Once again, we are melding consciousness and language together when, to be accurate, we must continue to keep them separate. In this case, the dangerous phrase is “the nature of seeing.” There is nothing mysterious about seeing in the non-metaphorical sense, but that is not how the word is being used here. Instead, “seeing” is standing for “understanding” or “getting” or “grokking” (if you are nerdy enough to know Robert Heinlein’s Stranger in a Strange Land). Now, I think it is reasonable to assert that animals “grok” if by that we mean that they can reliably respond to environmental signals with strategic behaviors. But anything more than that requires the intervention of language, and that ends up locating consciousness per se at the wrong level of emergence.

OK, that’s enough from me. I don’t think I’ve exhausted the topic, so let me close by saying…

That’s what I think, what do you think?

Image Credit: Pixabay

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Why You Don’t Need An Innovation Portfolio

According to Harvard Business Review

Why You Don't Need An Innovation Portfolio

GUEST POST from Robyn Bolton

You are a savvy manager, so you know that you need an innovation portfolio because (1) a single innovation isn’t enough to generate the magnitude of growth your company needs, and (2) it is the best way to manage inherently risky endeavors and achieve desired returns.

Too bad you’re wrong.

According to an article in the latest issue of HBR, you shouldn’t have an innovation portfolio. You should have an innovation basket.

Once you finish rolling your eyes (goodness knows I did), hear me (and the article’s authors) out because there is a nuanced but important distinction.

Our journey begins with the obvious.

In their article “A New Approach to Strategic Innovation,” authors Haijian Si, Christoph Loch, and Stelios Kavadias argue that portfolio management approaches have become so standardized as to be practically useless, and they propose a new framework for ensuring your innovation activities achieve your strategic goals.

“Companies typically treat their innovation projects as a portfolio: a mix of projects that, collectively, aim to meet their various strategic objectives,” the article begins. “MOO,” I think (household shorthand for Master Of the Obvious).

“When we surveyed 75 companies in China, we discovered that when executives took the trouble to link their project selection to their business’s competitive goals, the contribution of their innovation activities performance increased dramatically,” the authors continue. “Wow, fill this under N for No Sh*t, Sherlock,” responded my internal monologue.

The authors go on to present and explain their new framework, which is interesting in its focus on asking and answering seemingly simple questions (what, who, why, and how) and identifying internal weaknesses and vulnerabilities through a series of iterative and inclusion conversations. The process is a good one but feels more like an augmentation of an existing approach rather than a radically new one.

Then we hit the “portfolio” vs. “basket” moment.

According to the authors, once the management team completes the first step by reaching a consensus on the changes needed to their strategy, they move on to the second step – creating the innovation basket.

The process of categorizing innovation projects is the next step, and it is where our process deviates from established frameworks. We use the word “basket” rather than “portfolio” to denote a company’s collection of innovation projects. In this way, we differentiate the concept from finance and avoid the mistake of treating projects like financial securities, where the goal is usually to maximize returns through diversification. It’s important to remember that innovation projects are creative acts, whereas investment in financial securities is simply the purchase of assets that have already been created.

“Avoid the mistake of treating projects like financial securities” and “remember that innovation projects are creative acts.” Whoa.

Why this is important in a practical sense (and isn’t just academic fun-with-words)

Think about all the advice you’ve read and heard (and that I’ve probably given you) about innovation portfolios – you need a mix of incremental, adjacent, and radical innovations, and, if you’re creating a portfolio from scratch, use the Golden Ratio.

Yes, and this assumes that everything in your innovation portfolio supports your overall strategy, and that the portfolio is reviewed regularly to ensure that the right projects receive the right investments at the right times.

These assumptions are rarely true.

Projects tend to enter the portfolio because a senior executive suggested them or emerged from an innovation event or customer research and feedback. Once in the portfolio, they progress through the funnel until they either launch or are killed because of poor test results or a slashed innovation budget.

They rarely enter the portfolio because they are required to deliver a higher-level strategy, and they rarely exit because they are no longer strategically relevant. Why? Because the innovation projects in your portfolio are “assets that have already been created.”

What this means for you (and why it’s scary)

Swapping “basket” in for “portfolio” isn’t just the choice of a new word to bolster the claim of creating a new approach. It’s a complete reframing of your role as an innovation executive.

You no longer monitor assets that reflect purchases or investments promising yet-to-be-determined payouts. You are actively starting, shifting, and shutting down opportunities based on business strategy and needs. Shifting from a “portfolio” to a basket” turns your role as an executive from someone who monitors performance to someone who actively manages opportunities.

And this should scare you.

Because this makes the challenge of balancing operations and innovation an unavoidable and regular endeavor. Gone are the days of “set it and forget it” innovation management, which often buys innovation teams time to produce results before their resources are noticed and reallocated to core operations.

If you aren’t careful about building and vigorously defending your innovation basket, it will be easy to pluck resources from it and allocate them to the more urgent and “safer” current business needs that also contribute to the strategic changes identified.

Leaving you with an innovation portfolio.

Image Credit: Pixabay

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The Malcolm Gladwell Trap

The Malcolm Gladwell Trap

GUEST POST from Greg Satell

A few years ago I bought a book that I was really excited about. It’s one of those books that created a lot of buzz and it was highly recommended by someone I respect. The author’s pedigree included Harvard, Stanford, McKinsey and a career as a successful entrepreneur and CEO.

Yet about halfway in I noticed that he was choosing facts to fit his story and ignoring critical truths that would indicate otherwise, much like Malcolm Gladwell’s often does in his books. Once I noticed a few of these glaring oversights I found myself not being able to fully trust anything the author wrote and set the book aside.

Stories are important and facts matter. When we begin to believe in false stories, we begin to make decisions based on them. When these decisions go awry, we’re likely to blame other factors, such as ourselves, those around us or other elements of context and not the false story. That’s how many businesses fail. They make decisions based on the wrong stories.

Don’t Believe Everything You Think

Go to just about any innovation conference and you will find some pundit on stage telling a story about a famous failure, usually Blockbuster, Kodak or Xerox. In each case, the reason given for the failure is colossal incompetence by senior management: Blockbuster didn’t recognize the Netflix threat. Kodak invented, but then failed to market, a digital camera. Xerox PARC developed technology, but not products.

In each case, the main assertion is demonstrably untrue. Blockbuster did develop and successfully execute a digital strategy, but its CEO left the company due a dispute and the strategy was reversed. Kodak’s EasyShare line of digital cameras were top sellers, but couldn’t replace the massive profits the company made developing film. The development of the laser printer at Xerox PARC actually saved the company.

None of this is very hard to uncover. Still, the author fell for two of these bogus myths (Kodak and Xerox), even after obviously doing significant research for the book. Most probably, he just saw something that fit with his narrative and never bothered to question whether it was true or not, because he was to busy validating what he already knew to be true.

This type of behavior is so common that there is a name for it: confirmation bias. We naturally seek out information that confirms our existing beliefs. It takes significant effort to challenge our own assumptions, so we rarely do. To overcome that is hard enough. Yet that’s only part of the problem.

Majorities Don’t Just Rule, They Also Influence

In the 1950’s, Solomon Asch undertook a pathbreaking series of conformity studies. What he found was that in small groups, people will conform to a majority opinion. The idea that people have a tendency toward conformity is nothing new, but that they would give obviously wrong answers to simple and unambiguous questions was indeed shocking.

Now think about how hard it is for a more complex idea to take hold across a broad spectrum of people, each with their own biases and opinions. The truth is that majorities don’t just rule, they also influence. More recent research suggests that the effect applies not only to people we know well, but that we are also influenced even by second and third degree relationships.

We tend to accept the beliefs of people around us as normal. So if everybody believes that the leaders of Blockbuster, Kodak and Xerox were simply dullards who were oblivious to what was going on around them, then we are very likely to accept that as the truth. Combine this group effect with confirmation bias, it becomes very hard to see things differently.

That’s why it’s important to step back and ask hard questions. Why did these companies fail? Did foolish and lazy people somehow rise to the top of successful organizations, or did smart people make bad decisions? Was there something else to the story? Given the same set of facts, would we act any differently?

The Inevitable Paradigm Shift

The use of the term “paradigm shift” has become so common that most people are unaware that it started out having a very specific meaning. The idea of a paradigm shift was first established by Thomas Kuhn in his book The Structure of Scientific Revolutions, to describe how scientific breakthroughs come to the fore.

It starts with an established model, the kind we learn in school or during initial training for a career. Models become established because they are effective and the more proficient we become at applying a good model, the better we perform. The leaders in any given field owe much of their success to these models.

Yet no model is perfect and eventually anomalies show up. Initially, these are regarded as “special cases” and are worked around. However, as the number of special cases proliferate, the model becomes increasingly untenable and a crisis ensues. At this point, a fundamental change in assumptions has to take place if things are to move forward.

The problem is that most people who are established in the field believe in the traditional model, because that’s what most people around them believe. So they seek out facts to confirm these beliefs. Few are willing to challenge what “everybody knows” and those who do are often put at great professional and reputational risk.

Why We Fail To Adapt

Now we can begin to see why not only businesses, but whole industries get disrupted. We tend to defend, rather than question, our existing beliefs and those around us often reinforce them. To make matters worse, by this time the idea has become so well established that we will often incur switching costs if we abandon it. That’s why we fail to adapt.

Yet not everybody shares our experiences. Others, who have not grown up with the conventional wisdom, often do not have the same assumptions. They also don’t have an existing peer group that will enforce those assumptions. So for them, the flaws are much easier to see, as are the opportunities to doing things another way.

Of course, none of this has to happen. As I describe in Mapping Innovation, some companies, such as IBM and Procter & Gamble, have survived for over a century because they are always actively looking for new problems to solve, which forces them to look for new ideas and insights. It compels them to question what they think they know.

Getting stories right is hard work. You have to force yourself. However, we all have an obligation to get it right. For me, that means relentlessly checking every fact with experts, even for things that I know most people won’t notice. Inevitably, I get things wrong—sometimes terribly wrong— and need to be corrected. That’s always humbling.

I do it because I know stories are powerful. They take on a life of their own. Getting them right takes effort. As my friend Whitney Johnson points out, the best way to avoid disruption is to first disrupt yourself.

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

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Building a Psychologically Safe Team

Building a Psychologically Safe Team

GUEST POST from David Burkus

One of the most consistent findings in organizational behavior over the last decade has been just how significantly team performance is affected by psychological safety. A psychologically safe team is one where team members feel comfortable being themselves, expressing their ideas and opinions, and taking risks without fear of being punished or ostracized. Teams with high psychological safety learn faster, communicate better, and hence collaborate more effectively.

At its core, psychological safety is marked by a sense of mutual trust and respect. And these are two different things. Trust is how much teammates feel they can share their authentic selves with others. Respect is how much teammates feel the team will accept that self. If I trust you, then I will share honestly with you. If you respect me, then you will value what I’ve shared.

In this article, we’ll cover four ways to create a more psychologically safe team—with the first two focusing on trust and the second two on respect.

Be Vulnerable First

The first way to build a psychologically safe team is to be vulnerable first. This is a powerful way to build trust because trust on a team grows reciprocally. When someone makes themselves vulnerable, they signal to the team that they’re trusting the team. And teammates feel trusted and respond in a trustworthy manner (most of the time). This cycle repeats itself over time and trust grows alongside it. As a leader, that means it falls upon you to demonstrate trust first by being vulnerable first. You don’t need to share embarrassing secrets or your deepest fears, but a simple “I don’t know” when discussing a problem or a simple sharing of a few weaknesses can be an important moment in the development of trust on your team. Don’t make people earn your trust. Trust them and let them respond with trustworthiness.

Accept (but learn from) Failures

The second way to build a psychologically safe team is to accept (but learn from) the team’s failures. Failures on a team can’t be avoided—and they can’t be ignored. You’ll have to deal with repeated failures or performance issues, but often unexpected failures get overlooked (or worse). Projects sometimes run over budget, clients change their mind, global pandemics threaten the supply chain and force everyone to work at home in their pajamas. When failures happen, the human reaction is to deflect or excuse away failures. So, when teams face failures, they often fight over who is to blame. But psychologically safe teams recognize failure is a learning opportunity and see honest conversations about what happened and what can be changed in the future to prevent failures. As a leader, take your team through an after-action review when failures happen and celebrate any moments of honesty or responsibility you see. Doing so sends the message that failure is feedback—not something to be deflected.

Model Active Listening

The third way to build a psychologically safe team is to model active listening. This helps teammates feel respected, the other side of psychological safety. Leaders don’t have to accept every idea their team shares to build respect, but they do have to ensue every teammate feels listened to. And modelling active listening not only ensures you’re listening to the team—it also teaches the team by example how to listen better to each other. Make sure you’re actively focused on the person speaking, not looking at a phone or laptop. Nod your head and utter small “hmms” and “ahhs” to show you’re responding and processing what you hear. Follow up with questions based on what you heard that signal listening and encourage them to expound on their ideas. And before you offer your thoughts, summarize what you heard them say to confirm that you understand. Doing so will ensure the other person feels listened to—because you were actually listening.

Treat Conflict As Collaboration

The fourth way to build a psychologically safe team is to treat conflict as collaboration. It’s difficult to model active listening when the person speaking is sharing an idea or action in conflict with something you’ve previously said. It’s hard to actively listen when in conflict because you’re wanting to jump in and defend your original idea. But for building respect, it’s crucial to remember that task-focused conflict is a form of collaboration. People who disagree with their teammates aren’t (usually) saying their teammates are dumb, they’re saying they see the situation differently and care enough to share. Resist the urge to shoot down the conflicting idea, and use the questioning time during active listening to ask questions about the assumptions made or information that leads this person to a different conclusion. Meet conflict with curiosity about how they concluded something different than you. You’ll not only maintain respect, you’ll often find out that their way is a better solution anyway.

Looking at these actions collectively, it’s easier to notice the interplay between trust and respect that leads to a psychologically safe team. Trusting moments need to be met with respect, otherwise they might trigger distrust. But when teams develop both simultaneously, they start to share diverse perspectives and generate better ideas—and they gradually become a team where everyone can do their best work ever.

Image credit: Pixabay

Originally published at https://davidburkus.com on February 25, 2023.

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Great Coaches Do These Things

Great Coaches Do These Things

GUEST POST from Mike Shipulski

Good coaches listen to you. They don’t judge, they just listen.

Good coaches continually study the game. They do it in private, but they study.

Good coaches tell you that you can do better, and that, too, they do in private.

Good coaches pick you up off the floor. They know that getting knocked over is part of the game.

Good coaches never scream at you, but they will cry with you.

Good coaches never stop being your coach. Never.

Good coaches learn from you, and the best ones tell you when that happens.

Good coaches don’t compromise. Ever.

Good coaches have played the game and have made mistakes. That’s why they’re good coaches.

Good coaches do what’s in your best interest, not theirs.

Good coaches are sometimes wrong, and the best ones tell you when that happens.

Good coaches don’t care what other people think of them, but they care deeply about you.

Good coaches are prepared to be misunderstood, though it’s not their preference.

Good coaches let you bump your head or smash your knee, but, otherwise, they keep you safe.

Good coaches earn your trust.

Good coaches always believe you and perfectly comfortable disagreeing with you at the same time.

Good coaches know it’s always your choice, and they know that’s how deep learning happens.

Good coaches stick with you, unless you don’t do your part.

Good coaches don’t want credit. They want you to grow.

Good coaches don’t have a script. They create a custom training plan based on your needs.

Good coaches simplify things when it’s time, unless it’s time to make things complicated.

Good coaches aren’t always positive, but they are always truthful.

Good coaches are generous with their time.

Good coaches make a difference.

Image credit: Unsplash

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The Personal Touch Should Not Be Faked

The Personal Touch Should Not Be Faked

GUEST POST from Shep Hyken

One of the most powerful customer service and CX tactics is personalization. We interviewed more than 1,000 consumers for our CX research, and 71% said a personalized experience is important to them. When personalization is used correctly, customers feel as if you recognize them. Using their name, remembering their past purchases, their buying patterns and more can build confidence and trust.

While personalization is nice, it is not required, and if you decide to do it, there are some mistakes you must avoid. For example, if you’ve ever talked to a customer service agent who uses your name repeatedly to the point that it seems disingenuous, the effort to personalize fails. Another example came in the form of an email I recently received from a sales rep. It started out like this:

Dear <NOT PROVIDED>,

I hope this email finds you well. I wanted to discuss upgrading your current technology …

Obviously, my name is not “Not Provided.” I could tell the mail-merge field didn’t work. It took about two seconds for me to delete the email.

What made it worse was the next day, I received a phone call from the salesperson who sent the email. He didn’t ask for me by name. He asked for “the person in charge of technology.” So, this guy has my phone number and email address, but can’t get my name? His “personalization” strategy failed. As always, I’m polite to every salesperson who calls, but the conversation and relationship were over in less than a minute.

Shep Hyken Personalization Cartoon

There are some pretty easy ways to create a personalized experience. Here are three of many to consider:

  1. Use the Customer’s Name – As already mentioned, be sure to use it correctly.
  2. Know the Customer’s Buying History – With the right software, you can track what the customer bought, how often and more.
  3. Make Appropriate Recommendations – Knowing your customer’s buying history can give you insights into up-sell and cross-sell opportunities. This isn’t a traditional sales pitch. It’s based on what you know about the customer. And if you know a customer can use something and don’t tell them about it, that is actually bad customer service.

While there are many more ideas, let’s wrap up with this. Personalization is about connecting with your customer. Be sure to do it right, whether it is as simple as using the customer’s name or as sophisticated as using data to understand your customer’s needs. No personalization is better than personalization done wrong.

Image Credits: Shep Hyken, Pexels

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Back to School Sale on Charting Change

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The Power of Position Innovation

How creating experiences for underserved markets can be a key innovation strategy

The Power of Position Innovation
Image: Dall-E via Bing

GUEST POST from John Bessant

It’s summertime, at least here in the northern hemisphere and chances are that August is a holiday month. Which might well see you sitting somewhere and watching an exotic sunset, glass of something suitably refreshing in your hand. As you see that golden disc slip below the horizon and the wonderful display of red shifting colour begins to settle towards nightfall you might spare a thought for the memory of Tom Gullick who died this month. Because for many of us jetting away to our exotic location might not be happening were it not for his innovation efforts….

An avid bird spotter (he held the record for the most birds (over 9000) spotted by an individual) he was a bit of a Don Quixote figure, not least because he took up residence in La Mancha in Spain and pursued a conservationist crusade during his later years, saving at least one species of duck from extinction.

But he has another claim to fame — as one of the founding fathers of the low-cost travel experience. His bird-watching abilities gave him good observational skills and led him to spot an opportunity in classic entrepreneurial fashion — and then to go after it with a passion.

Working for a hundred year old firm of shipping brokers (Clarksons) he was given the task one day of getting people to Brussels to attend the World Fair Expo58. The entrepreneur in him rose to the challenge; he chartered a DC-3 plane to fly from Southend airport and arranged coaches, refreshments and even a tour guide, offering the entire package for £6. It worked well but his interest was piqued when he found out that another entrepreneurial member of the party had seen his offer and bought a sheaf of tickets, reselling them via an advert placed in the London ‘Evening Standard’ newspaper for £8! That was the trigger.

Image: Dall-E via Bing

He managed to persuade his rather conservative employers to set up a travel subsidiary and became a pioneer of what became known as package holidays. Coming after years of post-war austerity his offer of trips to places abroad, whether the tourist sights of Belgium or Switzerland or the beaches of the Costa del Sol was avidly taken up. He pitched his offer to those previously underserved by the travel industry, offering experiences to those whose normal holidays might be spent in a beach hut at Bridlington. As he later explained in an interview,

“My happiest moment was standing at Rotterdam airport at the end of the day, watching the buses return from the bulbfields with the Dakota DC-3s lined up waiting to take our customers home. They were so happy because they had never believed they could afford to go abroad.”

Within a decade Clarksons had become one of the major players in a market which was exploding with pent-up demand. They offered a wide variety of experiences, from wine tours in France to trips along the Norwegian fjords; their sunshine holiday business was particularly popular , built on a fixed price all inclusive model delivered at low cost. His skills as negotiator helped deliver this — he could guarantee to fill hotels or aircraft if the supplier was prepared to offer competitive pricing.

Other companies joined the party and it wasn’t just the British who were travelling; increasingly horizons for European tourists were extending. Inevitably this brought a highly competitive edge to the market and required a business strategy based on investing in being able to deliver experiences by assembling the different elements and engineering them down to a package with a thin profit margin. He found increasing difficulty in explaining this to a company whose core business in ship-broking operated on very different models and so he finally left in 1972, retiring to Spain to begin his second career as a bird watcher /conservationist.

He got out just in time; by 1974 cut-throat competition from the growing number of players, a devalued UK pound and the emerging oil crisis with its pressure on fuel costs forced Clarksons into collapse in the middle of the summer tourist season.

Image” Dall-E via BIng

The business model hadn’t failed — but it did need development and fast learning. All the pieces were there — interesting destinations, hotels, buses, aircraft and so on. The difference was in the market — classically growing at the edges of an existing one. But bringing this new business model to life required reframing how both product and process worked. Margins were thin and so new approaches were needed to booking and operations, while delivering the package experience required a new profession — the tour rep — who would need enormous versatility (dealing with everything from entertainment, health and safety, administration, currency exchange, etc.) while all the while smiling for the customers!

It wasn’t disruptive innovation — yet. What was going on was learning to serve a very different market with a new experience based on lower cost. But the learning about how that model might work sowed the seeds for what later did become a revolution which transformed the travel industry. The evidence for this is with us today. Low-cost airlines like Ryanair, Wizz or Easyjet have revolutionised the world of short-haul travel and although they faced heavy setbacks during the Covid-19 crisis they are now returning to profitability and popularity.

Image: Wikicommons

But the package holiday was not a new idea. Some 100 years previously a certain Thomas Cook was looking for a new offering for his growing travel business. Originally a printer and Baptist lay preacher he’d built his original business organising day trips; his first didn’t run too far (the relatively short hop from his home town of Leicester to nearby Loughborough) but in 1841 it gave birth to his travel business. Four years later and he’d clearly tapped into a rich potential market; his trip to the seaside at Liverpool was booked by 1200 people and he had to repeat it two weeks later for another 800 happy travellers.

Cook began to extend his trips across the Channel and by 1863 had seen the possibilities of offering people the opportunity to see far-off places and sights (like the famous Mount Rigi in Switzerland) for themselves. In doing so he pioneered what effectively became the package tour, organizing not only the travel (by road, rail, boat, even mules) and accommodation but also providing guides to help conduct the tour.

Mind you his tour was not for the faint-hearted. In her diaries an intrepid young woman, Jemima Morrell described in detail a world of 4am alarm calls, 20-mile hikes and other challenges — not least of which was also being able to dress for dinner every evening in the hotels in which she stayed! But she clearly felt it was worth it for the experience.

“The days spent on foot, or by the sides of mules, afford the greatest satisfaction …..It was then that, away from the life of the city, we were taken into the midst of the great wonders of nature and seemed to leave the fashion of this world at a distance … It was an entire change; the usual routine of life was gone. All memory of times and seasons faded away and we lived only in the enjoyment of the present.”

Thomas Cook’s ideas changed several things. From the point of view of Switzerland it helped transform a poor rural economy into a travel destination; today the Swiss Alps are one of the world’s most popular tourist destinations.

Cook also created a system-level innovation, much as Henry Ford was to do with the motor car fifty years later. Putting together a successful package tour involves much more than simply arranging travel and tickets. Cook pioneered the complex logistics, arranged for integration of different travel and accommodation options, provided a system of coupons (the forerunners of traveller’s cheques) to help pay for goods and services, developed a network of guides and other support staff and printed brochures not only as sales tools but as a way of engaging customers in imagining and dreaming about the journey they were about to embark upon. In doing so he can rightly be considered one of the founding fathers of an industry which today is worth over $7 trillion.

What he pioneered was ‘experience innovation’ — not simply offering travel but a whole new experience. In his case it was the wonders of the Grand Tour brought to everyone, in Clarksons’ case it was the joys of sun-drenched beaches, endless sangria and exotic food to try.

‘Position innovation’ of this kind begins with a reframing of possibilities — classic entrepreneurial territory. Tom Gullick saw an opportunity in meeting needs for a different group and packaging the experience up rather than leaving them to select their own. Travel agents were involved at the time because the infrastructure for booking wasn’t developed; the later low cost revolution saw increasing disintermediation and the emergence of platform models where you buy your travel, car hire, hotel, parking, currency, anything else you might want, all of it via a one stop online platform.

But in order to meet the needs of an unserved or underserved market requires close interaction and fast learning with that market. By definition it doesn’t exist yet in developed form so the process of co-evolving with it is going to involve a bumpy ride. The Clarkson experience was one of experimentation and building fast learning — from the prototype of Expo58 to the slick summer exodus managed in the heydays of the 1970s.

This is challenging but it also means that position innovation can provide a valuable learning laboratory for those wanting to get out of the box which serving the mainstream market can sometimes represent.

A good example is the fascination (and huge market potential) of digital wallets and mobile money. We’re still (well I am) excited by the fact that we can now use our phones to pay for a whole raft of goods and services and the potential is of course huge. Given an accelerating shove by Covid-19 the shift towards a cashless society has been rapid. Not for nothing is Elon Musk trying to create a new brand X (why do I think of washing powder when I hear that?!!!) and give the bird the bird? It’s got little to do with messaging and everything to do with trying to emulate the power of the WeChat platform in China which is an ‘everything app.’ But at its heart it is about mobile money — so much so that even beggars in China have QR codes so that you can support them with a click of your phone button.

So the cutting edge of innovation — right? Not necessarily. If you live in East Africa you might greet a lot of this with a yawn, it’s nothing special or new. Because M-PESA has been enabling this for over a decade, so much so that the mobile money app running on any phone now accounts for over 50% of all GDP transactions in Kenya and is widely used across much of Africa. What is M-PESA? Essentially it’s a mobile money app which was developed originally as a joint venture between Safaricom (Vodafone’s South African subsidiary) and the UK Department for International Development. The name comes from the Swahili pesa meaning money and the original idea began as a development aid project to enable microfinance repayments. Launched in 2007 it is now used by close to 20 million people and the system processes more payments than Western Union does across its entire global network.

What’s gone on, of course, is a classic piece of position innovation where learning has driven improvements and developments, not only to serve the new market but in products and processes to enable it to grow. And it’s created a platform economy, bringing in shops, transport, government services, etc. — and all of this with the innovative support of the central bank. It’s a model which has grown beyond Kenya to have world-wide impact. For example a valuable spin-off has been the use of this technology to enable more efficient aid distribution to help cope with humanitarian crises.

So position innovation matters and should form a key plank in our innovation strategy. It’s at the heart of the innovator’s dilemma — the emergence of innovation at the fringes of your core market was the threat so potently identified by Clayton Christensen. How you deal with that strategic challenge is still a major question — but making sure you spot emerging position innovation early at least buys you time to think through a strategic response.

And for entrepreneurs looking for new opportunities the challenge is simple — spot a market before it exists and then grow it! Not an easy thing to do when you can’t analyse or run focus groups about it. But — as Thomas Cook and later on Tom Gullick found out, being prepared to experiment can pay off handsomely. Which is why it might be worth raising a holiday glass in their direction to remind ourselves of the challenge…

Image: Dall-E via Bing

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