Thursday, May 31, 2012

Raising The Bar, Constraints and Creativity

The late Eli Goldratt, founder of the Theory of Constraints, proposed that in order to find innovate ideas to improve a situation, you should raise the targets or objectives significantly.  As an example, if you were the manager of a company and needed to increase sales, what kind of responses do you think you would you get when asking the following questions to your team:
  1. How do we increase sales by 10%?
  2. How do we increase sales by 100%?
To answer the second question, a totally different mindset, probably a paradigm shift, is required.  Complemented with positive reinforcement measurements, the approach should be effective.

Tina Seelig, of Stanford University's Technology Ventures, offers an alternative approach to get the creative juices flowing:   change the constraints.  Although Tina is using the word constraint in a way similar to linear optimization, the idea is to impose less flexible rules, which usually means limiting the amount of resources available, so that there is no other choice than two think in alternative (and possibly counter intuitive) ways of solving problems.

Her approach reminds me of the situation Toyota had after the second world war, and when the company was in a disastrous financial position.    Under severe cash limitations, the company had to figure out how to make quality cars, at a low cost, and had them available when the customer needed them.    The rest, as they say, is history.

So, in what ways are you motivating your team to find creative solutions?   Are you raising the bar, limiting the available resources, or both?

Monday, May 28, 2012

Not Metrosexual, Datasexual?

When you think about the current  interconnectedness of the world, and after seeing the overwhelming infographic about social media, Dominic from BigThink describes a new emerging type of individual, also known as the Datasexual:

Taken from the article:

"....he same cultural zeitgeist that gave us the metrosexual - the urban male obsessive about grooming and personal appearance - is also creating its digital equivalent: the datasexual. The datasexual looks a lot like you and me, but what’s different is their preoccupation with personal data. They are relentlessly digital, they obsessively record everything about their personal lives, and they think that data is sexy. In fact, the bigger the data, the sexier it becomes. Their lives - from a data perspective, at least - are perfectly groomed"

I don't know how else to react, except to invoke Garfield:   Auntie Em!  Auntie Em!

The Overwhelming World of Social Media

For all of you that think that you are not connected enough, or that don't have that latest app on your smartphone, let me give you some bad news:  it will never be enough.

Recently shared on LinkedIn, check out this amazing Infographic showing all the social media services that exist today, and how complex the online world has become.

Makes you wonder were the days of Altavista, ICQ and Hotmail went to, part of the small number of services that existed less than a decade ago.

The bubble has to burst at some point.   Maybe the recent trouble with Facebook is a sign of this trend.   Humans have less time than ever, and we know that multitasking is a myth.

But being connected is now an essential isn't it? How many days can you spend without checking your email?

The Laws of Subtraction Videos

Matt May, former advisor of Toyota and creative thinking expert, is currently writing his fourth book, The Laws of Subtraction, covering subjects related to Creativity, Innovation and Design Strategy.

Matt recently spoke in a venue in California, and shared his 6 basic laws of subtraction.   Each video is less than 5 minutes, and the whole series covers topics from the David Chase's famous ending of the Sopranos, the Mona Lisa, creativity and resource constraints, among others.

Law #1  - What isn't there can often trump what is.  
Law #2  - The simplest rules create the most effective experience.
Law #3 - Limiting information engages the imagination.
Law #4 - Creativity thrives under intelligent constraints.

Law #5 - Break" is an important part of any breakthrough.
Law #6 - Doing something isn't always better than doing nothing. 

The challenge is to always think how to solve problems in a simple and effective way.   As Einstein used to say:

"Any intelligent fool can make things bigger, more complex, and more violent. It takes a touch of genius -- and a lot of courage -- to move in the opposite direction."

The Effect Of Abstract And Specific On Change

Part of being an effective manager is having the capability to motivate and persuade the people you lead in a desired direction.  For someone to change, both the why change and the how to change are necessary.   Many other elements are important in a change process, but for the moment lets ask:  when should managers discloses the Why and when the How?

Bob Sutton recently shared the results of a study that show how vague versus specific messages affect credibility.  Using presidential candidates, the study showed that if elections were several months away, candidates that spoke in vague terms where the most liked by potential voters.   But if elections were very close, candidates that spoke in specific terms were the most liked.   For the brain context is essential, something my colleague Jack Vinson constantly reminds me of.

The study got me thinking about when you should speak in vague versus concrete terms.  Perhaps when in the initial steps of a change initiative, it is better to speak in broader terms, as this might help you create a shared Urgency of Change, as Kotter's work suggests.   In later phases, when a shared vision is in place, specific terms might work best.

How do you convey the Why and How in your organization?  Do you always share them with the people you lead?

The Legal Rebel Videos - PointOneLaw Venue

For all of us who like Matt Hoffman's, also known as The Legal Rebel, the PointOneLaw videos have been published for everyone to view.

PointOneLaw is an interesting venue created by Matt, where lawyers from different origins and backgrounds present new ideas that are relevant to the legal profession.   For this year, 12 lawyers spoke from topics ranging from Social Networks and the Legal Business, Flash Mob Law and How to Reinvent Customer Services.  Each speaker has a limit of 6 minutes and 20 slides, so presentations are on point.

In a world were lawsuits are common, and are significantly hindering the ability of many organizations such as health, education, and others to provide quality services at a low cost, the ideas from these venue are refreshing.   Matt and his colleagues think out of the box, looking for real win-win between all parties involved.

Although PointOneLaw is mainly for the the legal profession, there are many useful nuggets for business managers

Sunday, May 20, 2012

Stand Up Gamblers

Last week I blogged about how to run meetings more effectively, including the famous "stand up meeting", where people have to stand up during the whole meetings because chairs have been removed.  The lack of chairs causes attendees to quickly focus on the topics on hand and make decisions as quick as possible.   In short, the environment has been set up to improve effectiveness.

Behavioral economists have shown that people make mistakes in their decision making, specially when deciding on complex issues, where feedback is slow or lacking.   In these cases, it makes sense to "nudge" people in the right direction, so both the person and society gain from improved decision making.

A recent Freakonomics article talked about how an organization in Australia is thinking about tackling the problem of gambling, using an adequate environment and nudges.   Basically, their suggestion is to remove chairs in casinos, so gamblers have no choice than to go and rest in a different area, other than the black jack table, when getting tired.    How would this change in the environment impact a gambler's behavior?

Are you considering your company's environment?   Is it adequate for your company's purposes?

How Much Time Do You Waste At Work?

My colleague Jack Vinson recently shared an infographic about how people waste time in their workplace.

Although waste needs to be defined more precisely to get the infographic into context, there are several assumptions being made that are not necessarily correct:
  • Every contribution made by an employee contributes equally to the bottom line
  • All employees are paid on an hourly basis
  • The busier someone is with work related activities, the more productive that person is
The first and second assumption imply that local efficiencies sum up to global efficiencies, someone that we know is incorrect.   And how are most employees hired, on a contract base or a salary base?

Related to the third assumption, test have shown that people actually have improved cognitive ability when they take small breaks, because the mind can rest to go back into full active mode.  And if people are achieving their   objectives, does it matter if they are taking small leisure breaks?

Instead of focusing on why people are wasting time, a manager should work on building a company culture that is interesting, engaging, and where employees ideas and input are actually used to improve processes.    Would you really worry about time spent when the company improved on a daily basis by its employees?

So how much time are your employees wasting?   Is this even the right question to ask?

Friday, May 18, 2012

Do You Give a Damn?

Bassam Tarasi, from Colipera, says it best:  Give a Damn.

Standard, averages, status quo is now way to delight others and to have a meaningful life.

Find out what you want to be the most of, work relentlessly, don't expect to please everybody, and results will come.

Nobody said it would be easy...

Tuesday, May 15, 2012

The Power of X

Have you seen the Power of X?

Amazing what people can do, when they include scarcity in their daily life equation.

Friday, May 11, 2012

What You Stand For?

Focus is key in management.   Too many daily problems, not enough time to solve them. Too many potential markets, not enough manpower to go after them.  Too many new projects to launch, not enough money to start them.

Great companies know how to focus, and they usually have a vision that is clear to all and must be followed.  Southwest focused on improving plane turnaround, and became the low cost and reliable airline.    The Ritz Carlton focused on wowing their customers, and became exemplary in the customer service arena.  Toyota focused on reducing the time from receiving an order from a client to collecting the money for the good that was sold, and became the best manufacturing company in the world.  The common pattern:  every company was the most of something, and didn't try to be a little of everything.

In a world with so many alternatives, average does not make the cut anymore.   Are you even questioning the way business has always been done around here?

What do you stand for?   What makes you different from the alternatives?

Wednesday, May 9, 2012

Eliminate Slogans, Use Creative Signs?

Deming's Principle #10 of Management reminded managers to "eliminate slogans, exhortations and targets in the workplace", meaning that these elements are not useful to motivate employees to improve.   Usually, what is broken is the system, and the employees have no other option but to follow broken rules.  What would you think as a plant floor operator is there was a sign that said "Quality is your responsibility", but at the end of the month management orders you to manufacture as much as possible, to hit the monthly production quota? Are you in control of quality?

Regardless, I do think there are some signs or slogans that could be useful, that Dan Pink calls Emotionally Intelligent Signage.   Although this sign is not directly related to a business setting, it begs us to be creative when  using slogans, and remind us of things we can do to improve, that are directly under our control.   And remember, we are human and sometimes we need gentle nudges or reminders to go in the right direction.

Bottom line:  only when strictly necessary, devise slogans or reminders that move people in the right direction.   And make sure what you think is the right direction, is actually the right one.

Do you have any other examples of creative slogans or signs?

Tuesday, May 8, 2012

Titles vs Results

Education is a big deal in the business world.  Some of us are lucky to go to graduate school, some of us are self learners, some both and some none.   How much education is enough, and when does experience and real life results kick in?

Companies that are looking to fill new positions usually filter candidates by the titles a person has acquired.  PhD, MBA, Jonah, Six Sigma Master Black Belt, Lean Sensei, Certified Public Accountant;  the more the merrier. Granted, in some cases, it is a requirement to have a specific title to perform specific duties, but I suspect this is the exception rather than the rule.  Are titles the right filter to start with, and should we categorize people using this criteria?

Matt Hoffman correctly reminds us that The What is More Important Than The Where.   Instead of focusing on listing all the titles you have acquired, why not focus on the results have you achieved with the education you have received?   After someone introduces themselves by listing all their titles and degrees, I wonder if their list would be as long if asked what significant results they have achieved.  Would the list be as long?

Don't get me wrong, I'm all for education, and as Deming used to say, experience without theory brings no real learning.   But sometimes people get titles for the sake of it and to get paid more, instead of focusing on what they can do with the knowledge they learn and having the courage to question and improve their area of responsibility.   Of course, the system is at fault, and note the people, as titles are the default filter that the business world uses.  But ask yourself, as the owner of a company, would you be willing to pay more for someone with a long list of titles or someone with a long list of results?

What significant results have you achieved with your knowledge?  What are you waiting for?

Sunday, May 6, 2012

Nudging Your Way To Commitments

Finally, I got around to reading Nudge, the behavioral economics book by Richard Thaler and Cass Sunstein.

The book is based on the concept of Libertarian Paternalism, which basically assumes that people frequently make mistakes in their decision making, specially for big and complex decisions, and that providing subtle nudges so people make better choices will help society as a whole.  By using Choice Architecture, or the way information and choices are presented, effectiveness in decision making can be significantly increased:

"A simple example of a nudge would be placing healthy foods in a school cafeteria at eye level, while putting less healthy junk food in harder to reach places. Individuals are not prevented from eating whatever they want, but the arranging of the food choices in that way has the effect of decreasing consumption of junk food and increasing consumption of healthier foods..."

The other  idea I found attractive was a methodology to increasing goal achievement based on nudges and choice architecture, that is being used by an online service called Stikk.    With Stikk, users set a specific goal, a time to achieve them, a way to measure them objectively by a third party, and put down a certain amount of money as a guarantee.  When the deadline comes, if the goal has been achieved, the person gets a refund of his money;  if the goal has not been achieved, the money is donated to charity.  Stikk may help people improve the odds of achieve the goals, even if many times people would do it just to avoid losing their money.  However, I wonder if this system could be used in other domains?

Imagine a 500 million dollar manufacturing company that has made the commitment to implement Lean in all of its manufacturing operations, in less than 3 years, will be measured by standard lean measurements by an auditing party, and guarantees the fulfillment of the goal with 1 million dollars.  If in 3 years the measurements have not been achieved, the company would donate the money to charity!

Utopian?   Maybe.  Can it work?

Friday, May 4, 2012

The Irreducible Components of Leadership

Paul O'Neill, former Secretary of State and CEO of Alcoa recently gave a talk about The Irreducible Components of Leadership to a health care audience.

His ideas include what it means to be an good manager and how to create a right environments for companies to improve.   When being CEO of Alcoa, he instituted a concept called "theoretical goals", like for example having zero accidents in all plant locations worldwide, which were more than 150 at the time.  Even this goal seemed impossible to achieve, he suggests that with a right leadership and corporate culture in place, significant improvement can happen:

"There are several pushbacks to the idea of habitual excellence. One is to say  ‘ well, we can never be perfect and we don’t want to set goals we can’t achieve.' I found in my own early days at Alcoa when people told me that about workplace safety, then I said to them, ‘OK, if you don’t want to have a goal of zero, then let’s go around and find out who wants to volunteer to be hurt to make sure we reach our goal of somebody being hurt'..."

O'Neill jokingly says that nobody ever volunteered to get hurt to reach a non zero goal.

His ideas are valuable for organization leaders, be it business or healthcare.   In health care, were around 100,000 patients die per year in the US because of medical mistakes, his ideas could give some valuable insights.  If interested on his views on healthcare, you can listen to a recent podcast with Mark Graban, were they discuss general problems in the health care system in the US.

Are you setting a right environment and giving people the tools to achieve ambitious goals?  Are you walking the walk?

Thursday, May 3, 2012

How Confusing Is Your Practice?

Sometimes we think that the more complex a solution is, the more powerful it will be.   Other times, it may be that things seem complex because the bottom line is we don't understand them well.   As Einstein used to say:

"Any intelligent fool can make things bigger, more complex, and more violent. It takes a touch of genius -- and a lot of courage -- to move in the opposite direction."

Matt Hoffman, The Legal Rebel, invites us to reflect about how we can simplify our business by removing the confusion.   Making things as simple as possible will not only help by making transactions between parties, it will also increase trustworthiness in a growing sharing economy.

How confused are your clients?   Can you make it easier for them?

Tuesday, May 1, 2012

Free Education: CourseRA, Open CourseWare, Khan Academy

Online Education has been an alternative for several years now, and like everything in life, it has advantages and disadvantages.  But some things are undeniable, such as: it is low cost, easier to access, and is schedule flexible.

Several initiatives have been started over the years, with the mission to provide education to the world for free:
  • MIT Courseware, one of the pioneers in online education and have opened a large portion of their curriculum online, with thousands of courses available to anyone
  • Khan Academy, that started as a student's personal project, and now provides thousands of education videos on a wide variety of subjects, of short and long duration, and where progress of students can be monitored
  • CourseRA, a new initiative by University of Michigan and other Ivy League colleges, offering courses about different graduate school topics, that last several weeks and were anyone can enroll
Although many of us believe that online education will never be a substitute for a real life class room experience, where interaction and collective learning takes place, technology will always provide new ways of delivering education in effective and creative ways to anyone willing to learn.

The availability of free quality education will inevitably result in an increase of the general levels of proficiency worldwide.  Even things such as learning how to polish the floor on your house or cooking a new vegan dish can be taught for free by millions of teachers, in the world's biggest and free Television Channel, YouTube.

How are you using online education to improve your education?