Sunday, 20 of May of 2012

Category » Approaches

Change Management Strategy: Find & Consolidate the 5%

In 2008, a study by Professor Jens Krause, then of the University of Leeds, indicated that it only takes a purposeful minority of five percent to influence an entire crowd. The implication of his work for change management is this: we can initiate change with a small minority, we don’t need everyone at the outset. A passionate minority can often be very successful against an inert majority.

In general, there are four types of personalities when it comes to change:

  1. Initiators: want to initiate change because the status quo doesn’t serve them
  2. Adapters: adapt once they see the change working for the initiators
  3. Followers: will follow the other two types once they believe it’s “the thing to do”
  4. Resistors: will resist change because they don’t want to change or can’t change

The five percent will usually include Initiators. The problem is that many companies have them scattered across the company as in Figure #1. However, if we can consolidate them so they can work together and mutually support one another, they become Figure #2. Even though it’s only five percent of the total picture appears quite more powerful than the five percent spread randomly throughout Figure #1. The same happens in groups and organizations especially if some are in leadership positions.

Any insurrection begins with connecting supporters. This might mean reorganizing so they can work together: assigning them to the same project team, task force, product development team, call center or marketing campaign. The grouping should be as cross functional as possible down to the support people.

To cement the team’s camaraderie, it should receive attention from top leadership and ample dose of interpersonal techniques from it. Their momentum will encourage the adapters and followers leaving only the resistors with whom to work.

 


Business Lesson from Physics: Speed vs Preparation

The Need for Speed

Many scientists use nature as a source of inspiration for new technologies. If we can understand the forces of nature that govern us, we can learn to get it on our side. One physic’s equation governing nature that I find very practical in business is:

E=½mv2

While I know the sight of equations affects some like horror movies, it essentially says this:

The energy (E=energy) that something can produce is based on its weight (m=mass) and its speed (v=velocity). Of the two, speed is far more important.

In fact, if given a choice between doubling the size or the speed, doubling the speed would double the impact you would get by doubling the mass. Consider the greater damage a round, small bullet does versus a thrown stone three times its weight. In WWII, the Germans implemented blitzkrieg to help their smaller, faster forces overcome their numerical inferiority.

The business lesson is that if we have a choice between doubling our preparation or doubling the speed with which we can deliver (all other factors being equal), then we are better off with the latter. In decisions, if we have the option to double our research or double the speed with which we decide, the latter is preferred. In marketing, we often hear, “It’s better to be first than it is to be better,” translating this means our idea would need to be at least four times better than our current one to justify doubling the time to introduce it.

Often, in our effort to make the best decision, we delay. Speed, if used wisely, can help us recover quickly from mistakes and adjust to changes, thus alleviating pressure to be right at the outset. It’s why average professionals, when they deliver substantially faster, can beat experts in the marketplace.

 


Vanity Sizing: Fashion & Beyond

How we position things greatly influences the outcome. In the April 7, 2012 edition of The Economist the article, “Dressing Up,” uncovers that women’s sizes have inflated by four sizes since the 1970’s. Unlike men’s sizing which is based on inches, women’s sizing is purely arbitrary and often varies by brand. Thus, depending on the size, a pair of women’s pants might have increased as much as four inches at the waist and three inches at the hips since then.

The generally accepted assumption for allowing this size inflation is that if consumers feel good about themselves they are likely to buy, thus why the fashion industry calls it “vanity sizing.” However, even though it seems like a topic to take lightly or with which to have fun, vanity sizing plays in all aspects of statistics. That is why it’s important to challenge definitions and assumptions in order to understand and solve problems.

For instance, the article “Botox and Beancounting” of the The Economist’s April 27, 2011 edition, discusses how official U.S. economic statistics might be overinflating its performance relative to Western European economies. Ironically, the article’s title makes an appropriate analogy to vanity sizing.

U.S. unemployment figures present another excellent example. They not only conflict with one another on occasions but they are difficult to figure. Additionally, their accounting changed in the 1980′s, making them appear lower than before.

Thus, while it’s commonly said that “numbers don’t lie,” that’s true; however, an ignoramus isn’t lying either if he believes his own ignorance. If we’re ignorant to numbers’ origination, we are more likely to accept them if they tell us our glass is half full rather than half empty, thus reinforcing our own perceptions . . . also known as “vanity believing.”

 


Placebo Management (Pt 3): Stories Change Taste

Wayne Curtis’ article, “The Secret Ingredient,” which appeared in the April 2012 edition of The Atlantic discusses liquor companies’ claims about centuries-old, secret recipes. His point is that marketing drives the myths and stories behind these recipes more than the actual ingredients of the spirits do. For example, citing chemist T.A. Breaux, Curtis says there are no significant production secrets behind vodka, the best-selling spirit globally. Yet, he concludes:

. . . a healthy measure of mythology actually makes for a better-tasting product. Never mind the mouth or nose as the chief receptors of flavor. Sometimes, imagination and suggestion trump all.

There are many ways for us to change the taste of food without changing anything about the food; however, stories impact us well beyond taste. Look at how emphatic politicians are about their personal stories especially focus on rising from humble beginnings or overcoming severe challenges, thus working to wrap their story inside the classical hero myth.

Stories influence the intuitive aspect of interpersonal interactions, tapping directly into people’s feelings by way of presentation. The way we present something, including people, dramatically influences people’s perceptions of it. Since stories can change the way we view people, they can change how we interpret what those people say.

Therefore, when it comes to Placebo Management, stories become a form of interpersonal branding. If they can affect something as tangible as the taste of spirits, consider what they can do for intangibles such as our personalities. Consider the story built around IKEA and its founder, Ingvar Kamprad; it’s a motivational force for employees and consumers alike.

So, with this in mind, what stories do you promote about yourself, your company and others to change people’s taste about their talents and efforts?

 

Other posts in this series:

 


Toxic Soil Analogy: Good Ideas Planted on Bad Relationships

Imagine soil so toxic that nothing will grow. No matter how good our seeds, our farming techniques and the weather are; nothing will grow. The same thing happens when we try to promote great ideas in a bad relational environment: they fail.

That’s why relationships are more important than vision, culture more important than strategy. Vision and strategy can’t grow in toxic relational and cultural soil. This analogy also frames leadership as an affect influencing the hearts and minds of members, requiring the ability to tap both aspects of an interpersonal relationship: emotional and rational.

While this analogy’s point seems obvious, we are biased toward reason; thus, when problems arise, we tend to believe presenting new ideas, educating on the facts or reasoning better will solve them. It’s not unusual for me to have to restate this analogy several times in order to get people to focus on plans containing tactics to improve relationships or to manage conflict. In other words, our tendency is to just find better seeds, use better farming techniques or hope for better weather rather than address the soil.

This happens because no matter how good our ideas are, people will tend to decide that they’re bad if they don’t like or trust us. Our facts won’t change things either because people tend to believe perceptions over facts. People will naturally find reasons to discount our logic and facts.

When we combine all of this with the fact that a diverse workforce improves business, there is great stress on traditional management styles typically unsuited to nurturing the right positive feelings that can dramatically improve performance. By framing problems with this analogy, I increase my success in introducing relational solutions, which are often seen as too “fuzzy” or “soft.” Perhaps it will help you too.

 


Leadership vs. Management (Pt VI): The Difference

Organizational Leadership & DeFacto Leadership form Aligned Leadership

 

In this post I want to show how informal organizational power and its role in leadership can produce different kinds of leadership. My inspiration is from a Chinese concept of rulers that is over two thousand years old, and I first read in connection to the I Ching. From it, I produced two forms of leadership: Organizational Leadership (OGL) and De Facto Leadership (DFL). When any group identifies its leader, the critical question is:

Are the members’ hearts into following the leader?

The answer is the same difference between a loveless marriage and a loving one. That’s why I express OGL as a hollowed circle to be filled and DFL as a solid circle to be embraced (figure). A loving marriage is love (blue) embraced by the formal structure of marriage (red). Leadership is best when the formal organizational structure is given to leaders that people want to follow, thus producing Aligned Leadership (ALL).

OGL is the hierarchy using titles such as manager and executive to convey positions of authority and rules of responsibility. OGL is more akin to management. DFL is dependent upon the person’s qualities; people follow them regardless of what the rules say. This is how some can be leaders without being managers.

A scene from Braveheart expresses very well the difference between DFL and OGL. In it, the lead Scottish noble, Robert the Bruce, is trying to convince the commoner warrior, William Wallace, that he needs the noble’s support. The latter responds with, “Men follow courage not titles.”

OGL, DFL and ALL reinforce the idea that leadership is an affect that requires tapping into emotions and integrating both aspects of an interpersonal relationship. This helps people to see what they want to see in their leaders, thus encouraging them to follow.

 

Other posts in this series:

 


Need a Breakthrough? Delegate Upward

A while back, a manager requested my advice about moving a stalled initiative forward. She had sat down with her boss several times to discuss this, but nothing seemed to come from these meetings. After sharing with me her previous conversations on this, I noticed a trend and asked, “Have you ever asked your boss for help?”

She paused and then slowly responded, “No, I haven’t.” So, I went on to suggest that the next time she discusses this initiative with her boss that she begin by asking, “Nancy, I could use your help on something. May I discuss it with you?”

After her boss says, “Yes,” she is to thank her first, then describe her plan for moving the initiative forward and specifically telling her boss how she can help by asking, “Nancy, can you help me by doing . . .?”

Many times, as this manager did, we just expect bosses to suggest their help when we explain a situation. We might also be uncomfortable delegating upward, appearing inadequate or possibly receiving a rejection.

In this situation, the manager successfully moved the initiative forward by following this approach, but the point is this: bosses like to feel helpful too – they’re human. Of course, asking the right way helps. Bosses are more likely to help if we ask in a way that ties their help to us. This personifies our request. For instance, asking, “Can you help me by doing . . .” is much better than just asking, “Can you help?”

So, the next time a project stalls, an effort becomes difficult or a roadblock appears, ask your boss for help. Not only might you solve the problem at hand, but you might build a stronger relationship with your boss.

 


Problem-solving Technique: Integrated Assumption

Even though writing down the problem can help us solve it, it’s also a form of defining the problem. Thus, we will tend to define problems according to a nomenclature that we typically use. Since problems don’t care how we define them, our problem-solving approach problem will tend to be clunky and segregated rather than smooth and integrated.

For example, below is a schematic. On the left is a typical functional perspective of business. On the right how a problem has no regard for those functional boundaries.

 

Problems don’t care how we interpret our businesses

While obvious, we easily forget. For instance, if we define a problem as, “We need to generate more sales,” we will automatically tend to view it initially as a Sales & Marketing problem. In actuality though, many aspects such as pricing, delivery, servicing, management and technology could exist.

Therefore, in solving problems, it’s best that we assume the solution is an integrated rather than a segregated one. In other words, rather than ask something such as:

  • Is this part of the problem?
  • Does the problem affect this?

We should ask whether we can prove without a doubt that:

  • This isn’t a part of the problem?
  • The problem doesn’t affect this?

Thus, returning to the above example, rather than start from the premise that it’s a sales and marketing problem and then see if any other area is affected, start from the assumption it’s a business-wide, integrated problem and eliminate areas as we conclusively prove that they aren’t involved.

By assuming the problem is bigger and more integrated than we initially perceive it, we expand our field of potential solutions and success. Moreover, since we aren’t omniscient, it’s often better to assume the problem is more involved than it initially seems.

 


Regression Analysis: Visualizing Intuition

People often have unrealistic expectations for intuition, sometimes thinking it’s a crystal ball, magic lamp or answer giver. This usually stems from trying to see it as we do cognition. However, if cognition is a map, intuition is our compass. If cognition is our street address, then intuition is our city, state or nation.

Of course, visualizations help to differentiate between cognition and intuition. I use the schematic below that way. Cognition represents logic and reason, easily connecting each point because one naturally follows the other. One thought connects the next.

Intuition on the other hand is like trying to find the best line to represent a group of observations. It doesn’t connect them as easily and new points don’t always fall on or near the line; however, taken as a group, our observations form a pattern giving a sense of direction to them. Thus, intuition narrows our possibilities. More significantly, we don’t need many observations to get this directional sense.

For example, we can predict tendencies of people simply by looking at what they buy. In some cases, if we know their favorite car, beverage, hobby, store and book, we can make predictions about their favorite restaurant. Political campaigns take such consumer information and make accurate predictions about what candidates and issues potential voters might prefer. We can form psychological profiles of people from consumer – and other – activities, similar to what we see on crime shows when tracking criminals.

While these examples are very conscious, we unconsciously pick up patterns too. These are translated into feelings, emotions and finally intuitions. That is why it’s important to listen to how we feel. It might be our intuition giving us some direction, giving us a north. In this sense, intuition can be our guiding star.

 

Related link: My Intuition White Paper (3 pages)

 


Culture, Relationships Trump Vision, Strategy, Process

Businesses spend much money on developing their visions, strategies and processes; however, they spend relatively little on culture, which trumps all of the others. Megan McArdle discusses her observations of General Motors and others in “Why Companies Fail,” appearing in the March 2012 issue of The Atlantic.

When we talk about vision, strategy and process, they are very much head concepts as opposed to heart ones. For example, they don’t concern themselves much with the relationships that employees have between one another or even the relationships that the management team has with employees. The simplest relational techniques are rarely connected to these heady concepts when, in fact, it’s relationships that drive the cohesion and morale of any organization.

Unless we touch our employees on their emotional foundation, vision, strategy and process will fall far short of their intended success. This perspective transforms leadership into more of an emotional function from a rational one.  This perspective also helps us understand why common business tools such as incentives and processes can retard our efforts to build relationships and effect change.

Using a farming analogy, it doesn’t matter what vision, strategy and processes we use; if the soil isn’t good, we will struggle. In business, the soil is the relationship between the management team and employees. It forms the foundation of a company’s culture. If that team can’t develop effect relationships or isn’t motivated to even use simple relationship building techniques, then how can we expect it to implement great visions, strategies and processes?

 

Related post: Great Strategy? Don’t Neglect Culture