Monday, 21 of May of 2012

Category » Performance

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.”

 


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.

 


Cooperation vs. Self-interest (Pt 7): Altruistic Dominance

We sometimes hear, “Nice guys finish last.” However, in genetics altruism creates a dilemma because it exists – and not just in humans. The question is why. Even Darwin considered it a challenge to his theory of natural selection. Why would any creature help another at a steep personal cost?

The article, “Kin and Kind,” written by Jonah Lehrer in the March 5, 2012 edition of The New Yorker, investigates altruism and its role in evolution. Whether its bats, bees, birds, ants or humans, the presence of altruism in these species suggests that kindness can’t be a losing strategy. In fact, insects displaying an extreme form of altruism called “eusociality” tend to dominate the insect world over their self-interested brethren.

E.O.Wilson, a main proponent of altruism as a positive contributor in evolution summarizes it this way:

Selfishness beats altruism within groups. Altruistic groups beat selfish groups.

If we look at the Napoleonic era and the rise of the nation state, we find that the demise of mercenary (self-interested) armies began when citizen (altruistic) armies, cemented by patriotic and nationalistic emotions arrived on the scene. However, the reason why we don’t see more altruism in nature and our everyday lives is that a cohesive group must exist first. Again, context matters; encouraging self-interest will yield a self-interested culture, encouraging altruism will yield an altruistic one.

Of course, this prompts the question: Can a company built upon self-interested incentives triumph over a company with a cohesive, altruistic culture? Evolution suggests it won’t. Of course, that doesn’t mean a few self-interested people inside the altruistic cultures won’t try to take advantage of the others. Perhaps they are there to really test how cohesive and altruistic the company is?

Nevertheless, it seems that evolution could really be on the side of the nice guys.

 

Other posts in this series:

 


Management Lessons from Online Dating

The article, “The Modern Matchmakers,” from the February 11, 2012 edition of The Economist contained two major business lessons that I’ve discussed earlier regarding the solving of people-related problems:

  1. What people think they want isn’t necessarily what they will choose
  2. When faced with too much choice, people have less energy to think about them

    For example, the article cites the work of Eli Finkel of Northwestern University on speed-dating in which he found that “people’s stated preference at the beginning of the process do not match the characters of the individuals they actually like.” Furthermore, “that when faced with abundant choice, people pay less attention to characteristics that require thinking and conversation to evaluate . . . and more to matters physical.” In short, just as Sheena Iyengar of Columbia University and Mark Lepper of Stanford concluded that too much choice is demotivating,” Finkel found it can dull thinking processes.

    As I had also done in an earlier post on online dating, we can translate these themes to our business efforts by asking three questions:

    1. How much freedom does someone want?
    2. What does someone really want; what will he really do or decide?
    3. How much (and what kind of) thinking will someone require from a leader?

    These further translate into more tactical questions for managers and executives such as:

    1. How much flexibility or process must I give someone?
    2. What differences do I see between what he wants and what he actually does?
    3. What kind of decisions do I give her to make and what (or when) do I decide for her?

    Complicating this further is the fact that the answers will vary for each employee, requiring deeper and more interpersonal skills from managers and leaders. Are your managers up for the challenge?

     

    Previous post on online dating:  What the Failures of Online Dating Can Teach Us

     


    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

     


    Reinvent the Wheel & Prosper!

    How many times have you heard, “Don’t reinvent the wheel”? Why is it then that the U.S. Patent and Trademark Office (USPTO) has issued over 30,000 wheel patents since 1790? Moreover, as patent attorney, Lawrence Ebert, indicates, they’re approving about three hundred new ones a year. However, even Lawrence doesn’t tell the whole story.

    You see, he only quoted figures from Patent Class 295 (Railway Wheels and Axles) and Class 301 (Land Vehicles: Wheels & Axles). He didn’t include wheels from Class D21 (Games, Toys, and Sports Equipment) which includes the following:

    • Subclass 375: Roulette wheels
    • Subclass 175-177: Steering wheels
    • Subclass 204-213: Toy wheels
    • Subclass 458: Pinwheel
    • Subclass 477: Toys with steering wheels
    • Subclass 543: Paddle wheels
    • Subclass 779: Skating wheels for roller skates and skateboards
    • Subclass 667: Fly Wheels
    • Subclass 763: Rollers
    • Subclass 563: Wheels for toy vehicles
    • Subclass 829: Ferris wheel

    Furthermore, he didn’t include Class 472 which contains crank wheels such as those powering our bicycles. He also didn’t include pulleys which fall under Class 474 and various kinds of tires (Class 152) and wheels that fit around other wheels (Class D12)

    Now, just imagine if no one “reinvented the wheel.” We wouldn’t have all these wonderful wheels not to mention many folks wouldn’t have jobs and businesses. In short, many people wouldn’t be making the money they’re making now. Technological advancement has come because we like to reinvent things, always making them better and more adaptable to a need.

    So, when people say, “Don’t reinvent the wheel,” take them up on the challenge and show them how you can make the “wheel” better and more profitable. Don’t let their lack of creativity chain your creativity and innovativeness to the ground.

     


    Technique: Power of Names in Emails

    People’s names are extremely powerful. Every day, opportunities to use names present themselves, but we don’t seize them. Names in emails, even the shortest ones, allow us to personify them, giving them personality. Just as people find pictures and news articles about people more interesting, the same holds true for emails.

    For example, rather than send an email like this:

    Can you meet me today at noon?

    We can personify it this way:

    Joan,

    Can you meet me today at noon?

    Linda

    Thus, a generic email from by anybody to anybody becomes personal. Moreover, rather than use a formal address and closing, we can alter it by writing:

    • Joan, can you meet me today at noon? ~Linda
    • Can you meet me today at noon, Joan? ~Linda
    • Can you, Joan, meet me today at noon? ~Linda

    In these examples, we used the person’s name in the beginning, end and middle of the question. We can employ the same strategy longer emails:

    I’m thinking about going out for lunch today. Can you meet me today, Joan, if I do? It would be great to see you.

    Linda

    We can also use their names more than once by combining the techniques above:

    Joan,

    I’m thinking about going out for lunch today. Can you meet me today, if I do? It would be great to see you.

    I want to share a project I’m working. Joan, I really feel you might be able to help. If so, I’d like to introduce you to my manager.

    Please let me know,

    Linda

    People aren’t light switches, so we can’t expect this to work instantaneously. Nevertheless, if we employ regularly and integrate with other techniques, we will accelerate better relationships and responses to requests over the long run.

     


    Process vs. Flexibility: The Tradeoff

    We often overlook the downside of processes in our businesses because we enjoy how they allow us to scale and reduce labor costs. However, they often become the infrastructure that retards flexibility and adaptability as people’s self-interest and comfort zones become wedded to the processes.

    The November 2010 issue of the Harvard Business Review, which focused on leadership lessons from the military, Boris Groysberg, Andrew Hill and Toby Johnson wrote about the tradeoffs between process and flexibility. Their article, “The Different Ways Military Experience Prepares Managers for Leadership,” discussed the tradeoffs that each of the four branches of the U.S. Military made and how they influenced leadership styles.

    Their research showed that CEO’s who had military experience in the Navy and Air Force tended to “take a process-driven approach to management; personnel are expected to follow standard procedures without any deviation.” This allowed them to excel “in highly regulated industries and, perhaps surprisingly, in innovative sectors.”

    Conversely, those with an Army and Marine Corps experience tended to “embrace flexibility and empower people to act on their vision.” They were able to excel “in small firms, where they are better able to communicate a clear direction and identify capable subordinates to execute accordingly.”

    Throughout the article, the authors contrasted the process orientation of the Navy and Air Force with the adaptive one of the Army and Marine Corps, the important point being that there is a tradeoff between the two. Even though they justified why each branch had the orientation it did, they still contrasted the two orientations as a trade-off. In simple terms, it’s hard to have both.

    Therefore, when we rush toward processes to create standardized, consistent and repeatable outcomes, we need to leave room for adaptation. After all, life never duplicates itself in exactly the same way.