Motivational Myths

“I have come to the conclusion that my subjective account of my motivation is largely mythical on almost all occasions. I don't know why I do things.”  J.B.S. Haldane

 “Classic economic theory, based as it is on an inadequate theory of human motivation, could be revolutionized by accepting the reality of higher human needs, including the impulse to self actualization and the love for the highest values.” Abraham Maslow

I recently read “Drive” by Daniel Pink. He suggests that some well accepted, long standing business practices are bad for motivation; effectively debunking a number of myths. His introduction includes a review of Edward Deci’s work who argues that: Rewards can deliver a short term boost…Just as a jolt of caffeine can keep you cranking for a few more hours. But the effect wears off… and worse, can reduce a person’s longer-term motivation to continue the project. Edward Deci further postulates: Human Beings have an inherent tendency to seek out novelty and challenges, to extend and exercise their capacities, to explore, and to learn.

Some of the myths debunked are:

Myth # 1: That big contingent individual bonuses, especially for short-term results, will increase employee performance.
From Drive: External rewards and punishments can work nicely for algorithmic[1] tasks. But they can be devastating for heuristic[2] ones because they interfere with people’s creativity.

Myth # 2: Goal setting will improve performance.

From Drive: Goals imposed by others – sales targets, quarterly returns, standardized test scores and so on…. can sometimes have dangerous side effects, including unethical behaviour. Goals that people set for themselves, and that are targeted at attaining mastery of their crafts, are usually better predictors of superior performance.

Myth # 3: Professionals (lawyers, accountants, etc.) should use billable hours for charging their clients.  
From Drive: Mechanisms such as the “billable hour” are “the most autonomy-crushing mechanism imaginable”. “Focus inevitably veers from the output of their work (solving a client’s problem) to its input (piling up as many hours as possible).

Myth # 4: All you need is talent.

From Drive: Grit[3] may be as essential as talent to high accomplishment.
 
Myth # 5: Good “Management” is critical.
From Drive:  If managing is about control then Pink suggests it is an out dated paradigm, and that providing autonomy produces better results. The acronym he uses in the book is ROWE: for results-only work environment. The closer you can get to it the better the results will be.

The Motivational ‘secret sauce’: Autonomy, Mastery and Purpose

Autonomous people working toward mastery perform at very high levels. But those who do so in the service of some greater objective can achieve even more.

The book “Drive” helps develop understanding of what motivates us which most Business Owners know they need help with and I believe is worth taking the time to read and understand.

You can also see a 10 minute YouTube video summarizing Drive’s key concepts by clicking on the following:

RSA Animate - Drive: The surprising truth about what motivates us

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[1] Algorithmic - a logical sequence of steps for solving a problem.

[2] Heuristic - arrived at by a process of trial and error rather than set rules.

[3] Grit - determination

Seven E-Mail Marketing Tips and a bit about Video

 

I had Geoffrey Claydon of Web Communications in to talk at a recent TAB Meeting about E-mail marketing. He uses all of the knowledge that he acquired in his extensive corporate experience to work with businesses of all sizes to improve the message that is communicated to their existing and future clients and customers. The points that stuck with me are:

1.       E-mail marketing must contain value for the recipient to prevent them from “unsubscribing”.

Value offerings can vary depending on the business (I offer business tips) but it can also be promotions, specials, discounts, new offerings, etc.

2.      Anything that engages prospects (for example, surveys) can really increase the “effectiveness”.

3.      Branding needs to be consistent and professional.

4.      Frequency should be at minimum once a month. This resulted in quite a debate; mainly because entrepreneurs are typically inconsistent when it comes to marketing approaches.

5.      Unsubscribing is permanent.

6.      Analytics are needed if you want to understand the “effectiveness” of your efforts.

7.      E-mail marketing can be an affordable and effective marketing alternative.

Of course the discussion included must-have content like links to websites which also opened the conversation up to video marketing. I became so inspired and convinced of video’s importance that I decided to make a video blog. After 20 some odd consecutive takes I finally decided I’d figured out how to produce reasonable sound quality and hoped the content would work. As I mentioned in the video, I’ve seen a lot of bad video: people just standing there, looking awkward; stilted dialogue; inappropriate backgrounds, etc. Interestingly enough, upon review of my video, I couldn’t control my hysterical laughter because I found it so funny, which, of course, didn’t bode well as far as professionalism goes. I wasn’t trying to produce a comedy. So, “Do It Yourself” webcams don’t work for me and I’m not ready to invest in professional productions at this point, although Geoff did pass on a good contact that I might investigate. Thankfully, I like the written word. It appeals to me in a way video doesn’t. I’d rather paint pictures in my mind then have them supplied for me.

Another lengthy discussion was whether unsubscribing is a “good thing”. General consensus is: it is. Knowing who “unsubscribed” tells you who isn’t interested so you don’t need to waste precious time and resources on them. Although, this isn’t always true. My example: I finally, and reluctantly, unsubscribed from Reed’s Flowers e-mail promotions. I use Reed’s primarily for condolences which are difficult to schedule and I’m not interested in things like Mother’s Day offerings (not applicable to me). To sum up, although their e-mail offerings didn’t contain value for me, I don’t think it’ll change how I do or will do business with them in the future. I trust them. They’ve never let me down where as other on-line flower deliver services have. Was that good money spent on their part? Not with me but it might be with others.

What works in marketing your business?

Seek First Clarity; to Find Meaning and Commitment

“The first step toward change is awareness. The second step is acceptance.” Nathaniel Branden

“The world is not a problem; the problem is your unawareness.” Bagwan Shree Rajneesh

"Your mind, while blessed with permanent memory, is cursed with lousy recall. Written goals provide clarity. By documenting your dreams, you must think about the process of achieving them." Gary Ryan Blair

Achieving Goals

There was a study done by Psychology professor Dr. Gail Matthews on Written Goals. She found that when people wrote their goals down, shared them and gave regular updates, people were (on average) 33 % more like to achieve them than those that merely formulated goals. It seems fairly obvious that they were more successful because they spent more time thinking about how to accomplish those goals but the act of sharing their progress was also important in that it affirmed their commitment. No one wants to “publicly” fail. It’s uncomfortable. We’ll take the time to fix a problem (reactive) but we rarely give ourselves permission to do it right the first time around (proactive). Stephen Covey’s (“7 Habits of Highly Effective People”) matrix of Urgent & Important is well known and yet I believe most people can’t bring themselves to move out of the urgent and of low importance quadrant and into the Important but not urgent quadrant. Why? It’s easier. When we lack clarity on how to best move forward we resort to being reactive.

Case in point: in “Switch” written by Chip & Dan Heath. They point out that a surprising thing they found out about change is that what often looks like resistance is simply a lack of clarity. Attaining clarity can be onerous and most people don’t know where to start much less be willing to give themselves permission to take the time.

Meaning

The question is: is formulating and achieving goals important? Yes. People are meaning-seeking and achieving goals is a way of fulfilling purpose.

“What also fuels their passion for work is a larger sense of purpose or passion. Given the opportunity, people gravitate to what gives them meaning, to what engages them to the fullest commitment, talent, energy, and skills.” – Daniel Goleman

Clarity

And where do most business owners lack clarity? Most would say marketing but I think, more importantly, many lack clarity about their business as a whole.

I understand that for most, Marketing is a seemingly impenetrable quagmire but Business Owners should keep in mind that it’s only part of the picture. Although, I will admit a big part; it’s not unusual that 1/3 to 1/2 of the price of a product or service is due to “marketing”.

Marketing Analytics are becoming more and more mainstream. Google Analytics are considered a must by many but Analytics for the small business should probably encompass a wider scope than just the internet. What’s most effective? Direct mail? E-mail? Telemarketing? You need to measure it to know. Measurement can be DIY; other methods could include hiring a school intern or one of the many marketing analytic companies.

Unfortunately, things change so effective marketing strategies are not the sort of thing you measure once and go “Yeah! I’ve found the magic formula”. You have to keep experimenting and testing to understand the impact. . For example, I was surprised when I learnt that Facebook Fan pages get a lot more hits than most company websites. Does that make it more effective? I suppose that depends on whether it results in more revenue.

Other interesting tidbits:

• I recently read Malcolm Gladwell’s book, “Tipping Point”, where he states that telemarketing’s effectiveness has decreased about 50% in the last 25 years. It should also be noted that’s why phone companies have been able to capitalize on offerings such as call display and call blocking.

• I keep coming across various forms of Multi-Level Marketing that are touted as the wave of future. Buyer beware: Multi-Level Marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of others they recruit, creating a network of distributors and a hierarchy of multiple levels of compensation. Other terms for MLM include network marketing, pyramid selling, and referral marketing. Critics have complained that MLM-based businesses have few representatives that make much profit which may be due to the recruitment of the general population who have little or no business training or experience. But it may also be because most people do it as a supplement to their “real” job and the necessary focus and commitment is lacking. (Reference Wikipedia http://en.wikipedia.org/wiki/Multi-level_marketing)

Does that mean we should stop going to things like Pampered Chef parties? It’s unlikely we will because as Dr. Robert Cialdini mentions in his book “Influence”: “the attraction, the warmth, the security, and the obligation of friendship are brought to bear on the sales setting. The strength of that social bond is twice as likely to determine product purchase as is preference for the product itself.” Which, I suppose, is why companies do it but it begs the question of just how far you should go to get a sale. I’d suggest if you’re all about techniques and not about value that your focus is in the wrong place. It’s been repetitively and consistently reported that companies that focus on profits do not make as much as those that are passionate about, and focus on providing, value. This also seems fairly obvious and yet so many business people can’t get beyond the siren call of profit.

To be fair, profit is crucial in the context of survival. I believe Maslow’s “Hierarchy of Needs” applies almost as well to business (when viewed generically) as it does to the individual.

Commitment

At the end of the day, however, it’s all meaningless without commitment. There’s no moving forward or impetus for action without it. In Dr. Gail Matthew’s study, she includes weekly updates as being important and again this seems fairly obvious. This kind of accountability both forces and renews focus so you’re more likely to resolve challenges given that we all want to appear credible when we tell someone we’re going to do something. And especially if we’re reinforcing it with updates, it makes a significant difference. And if what we’re trying to accomplish has personal meaning, which also fosters commitment, then success is just that more likely again.

Thankfully this is a large part of the Value Proposition of The Alternative Board. It provides a forum to discover clarity, with respect to meaning, and fosters the commitment and accountability that Business Owner’s need to move forward and succeed.

7 Characteristics of Entrepreneurs

Many of the characteristics of entrepreneurs interrelate but the following are all worthy of note.

1. Perseverance

I have not failed. I've just found 10,000 ways that won't work - Thomas Edison, inventor and scientist

Entrepreneurs aren’t wired to give up. In fact, they so thrive on challenge that when they “succeed”; they generally don’t know what to do with themselves. Are they adrenaline junkies? Perhaps; but I think it more likely that entrepreneurs are more “committed” than most. I read an article that suggested that ongoing commitment is a lot more important than initial motivation. I think most people think commitment is a result of motivation; except you can be motivated one minute and then not so much in a relatively short period of time. Why is that? Doubt can erode even the strongest commitment. It’s important for an entrepreneur to be obstinate and confident and perhaps why so many people frequently see entrepreneurs as difficult to deal with. I remember one entrepreneur telling me that he doesn’t play well with others. To me that is the hallmark of a true entrepreneur; they can be downright willful about getting their own way.

How do you stay committed? You hold yourself accountable. It’s difficult to walk away if you see yourself as responsible even if you have doubts. You could also say that entrepreneurs are resilient and adaptable. Regardless, if you believe you’re responsible for making it happen then you do, even if you’re not very good at it ... yet.

In Chip & Dan Heath’s book, “Switch” they refer to a study that demonstrated that self control/willpower is an exhaustible resource and that what looks like laziness is actually often exhaustion. The “trick” is not to be forcing yourself. It’s only sustainable if you’re doing it because you want to.

Most people would articulate this as having a passion for what they do but what’s the difference between feeling committed versus passionate? According to Mihaly Csikszentmihalyi author of “Flow: The Psychology of Optimal Experience” the more we absorb ourselves in something, the greater our experience. Committed? Passionate? Ability to be in “Flow”? In the end, it probably doesn’t matter much. What matters is that people pursue the activity for the pleasure of it versus it being a means to an end. And what’s really interesting is that Csikzentmihalyi speculates that the difference is a matter of choice.

2. Clarity

In preparing for battle I have always found that plans are useless, but planning is indispensable - Dwight D. Eisenhower, U.S. President

People who understand the benefits of planning know that the important component is that 80% of the time needs to be in insight in order to implement a change. If you want to get “unstuck”, start planning. The fact that the plan frequently doesn’t get implemented as initially envisioned is not (IMHO) particularly important. Taking the time to work out a way to move forward is.

And it’s notable that at the root of all planning there is always a well defined purpose which needs to be consistent with a person’s values. Which comes first? I don’t it think it matters much as long as they’re in sync.

Also from Chip & Dan Heath's book, “Switch” they talk about what looks like resistance often being a lack of clarity. It works because clarity erases doubt and facilitates commitment.

Change does not necessarily assure progress, but progress implacably requires change. Education is essential to change, for education creates both new wants and the ability to satisfy them. - Henry Steele Commager

3. Confidence

Experience taught me a few things. One is to listen to your gut, no matter how good something sounds on paper. The second is that you're generally better off sticking with what you know. And the third is that sometimes your best investments are the ones you don't make - Donald Trump, real estate and entertainment mogul 

Entrepreneurs are independent which some might perceive as a desire to be in control. My personal belief is that it all goes hand-in-hand with being committed. Entrepreneurs have the confidence to stand alone. Where do they find this confidence? By doing. It’s amazing how confidence improves with practice.

4. Learning Mind Set

An entrepreneur tends to bite off a little more than he can chew hoping he'll quickly learn how to chew it - Roy Ash, co-founder of Litton Industries

Another way to say this is that entrepreneurs are “failure-tolerant”. They are not sidelined by the fact that what they tried didn’t work; in their minds it means they’re just that much closer to discovering what will.

5. Proactive

The critical ingredient is getting off your butt and doing something. It's as simple as that. A lot of people have ideas, but there are few who decide to do something about them now. Not tomorrow. Not next week. But today. The true entrepreneur is a doer, not a dreamer - Nolan Bushnell, founder of Atari and Chuck E. Cheese's

Entrepreneurs are energetic which again comes back to being committed. When you’re committed it’s amazing how you just want to get it done and before you know it, it is.

I think it’s important not to confuse any of this with being a work-alcoholic. Studies consistently show that productivity goes down after about 48 hours/week and if people get less than 8 hrs of sleep per night. Recently I read that productivity can be optimized (improved by 30-50%) by working in 20 minute segments that are separated by “mini” breaks to “recharge” the brain. I also saw another article that suggested the optimum working time is 90 minutes. The theme of working in segments is consistent even if the time is not. But it doesn’t mean time has to be structured into the classic 9:00 am – 5:00 pm model. Being committed means being both flexible and adaptable and doing what’s necessary to get the job done. If that means some strange hours the truly committed see that as no big deal.

6. Service Orientation

I never perfected an invention that I did not think about in terms of the service it might give others... I find out what the world needs, then I proceed to invent - Thomas Edison, inventor and scientist

People by nature are meaning seeking and entrepreneurs seek meaning in serving their market or customers. The importance of clarity of purpose can’t be understated as it facilitates the necessary sense of commitment.

7. Courage

Twenty years from now you will be more disappointed by the things that you didn't do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover - Mark Twain, author

Many consider entrepreneurs to be risk takers but where does the courage to take those risks come from? I’d suggest both clarity of purpose and commitment. It provides the means to overcome and persevere in the face of fear.  

Life is either a great adventure or nothing. Helen Keller

In Summary

While entrepreneurs share the above characteristics, it is critical that they have a deep sense of purpose and commitment and taking the time to cultivate them is invaluable.

What are you doing to cultivate and clarify your business’ purpose?

The Importance of Identity in Business

“The value of identity of course is that so often with it comes purpose.” Richard R. Grant

"It matters not what a person is born, but who they choose to be." —J. K. Rowling

From Wikipedia; Brand - A brand is the identity of a specific product, service, or business

How does someone decide what business to be in? Or having decided what business to be in; what niche? I would suggest that before someone can decide what, they must first decide who they and their businesses are. “Who” is an essential prerequisite. For many, the question of “who” they are is done unconsciously but, as with everything else in life, the greater the clarity, the easier it is to move forward.

I recall one business owner telling how he had sold his business and subsequently discovered that the new owner didn’t treat his customers the way he thought they should be treated. He responded by starting a new, competitive business to provide a venue for the service he thought “his” customers deserved. He hadn’t anticipated that selling his business would create that problem or that he’d care as much as he did. But that’s the thing about values; they’re such a part of you that you generally take them for granted. Typically you don’t think about them but they drive your actions and especially if they’re violated. They’re a significant part of “who” and what makes up our identities.

Most consider our identities constant but the reality is they change over time. Initially we’re children and students, who graduate to adults and professionals; where our identity is largely defined by what we do and by the society we live in. Whether we are polite Canadians or astrophysicists, our identities change with time and circumstance.

As most personality assessments include “adaptive” styles; Dr. Robert Cialdini’s book: “Influence - The Psychology of Persuasion”, demonstrates this adaptability with the following example. People were asked to sign a petition to keep California beautiful. Subsequent to that, they and others that hadn’t been asked to sign the petition were asked to put up a large, obtrusive sign on their lawn with “Drive Carefully” printed on it. The result was that people were much more likely to agree to the sign after they had been asked the “identity” question of whether they’d sign the petition. The theory is that by asking the question, people identified themselves as being public-spirited and in support of that, were much more willing to do something they wouldn’t have done before. The conclusion is that by just asking an identity-clarifying question you can shift a person’s identity and actions.

Another compelling example is that people frequently become aware of “callings” at some point in their lives. It might be spiritual or professional but it marks a shift in how people think about themselves and it’s so prevalent that most of us know a number of people that have experienced it.

Interestingly, Dr. Philip Zimbardo notes that good people will do evil things because of their environment, such as abusive treatment by guards towards inmates or prisoners. He did an experiment with volunteer students where some were assigned as prisoners and others guards. He ended up terminating the experiment to avoid what he believed would result in inevitable physical violence. It was only an experiment and the participants knew it but it didn’t stop them from assuming the roles assigned to them and behaving in ways that they wouldn’t have otherwise entertained. I think this demonstrates just how transient identities can be and possibly why thespians can seem so believable.

This concept of changing the environment to change behaviour is also noted in Chip & Dan Heath’s book, “Switch” with Attila the Accountant who was a stickler for procedure and rejected any expense report that missed any detail. But when he spent some time at his clients Not For Profit businesses where they were severely overworked and understaffed he modified his behaviour dramatically. He became fanatical about getting them their money so they wouldn’t face any shortages or delays as he had a new understanding about just how tight their budgets were. This example raises the question: did he simply change his behaviour or did he change his values? I think you could argue that he “valued” the altruism inherent in his client’s business and changed his behaviours to support it. You could also argue that he came to value exactness less and expediency more but maybe they weren’t his “core” values” and hence why he was so willing to change.

I think we’re all a result of our circumstances and environment and when they change so do we. And while I think it’s important not to confuse behaviours with values (Jim Collins warns of this) I still feel values can and do change over time. Case in point, one day some one decides that the pursuit of power is no longer important to them, which for a lot of people coincides with retirement. In this instance, circumstance is powerful and leads to a profound change.

The irksome question is what role does choice play given the apparent high level of predictability of our reactions. I certainly like to believe choice is important. Still we’re limited by our strengths and aptitudes. Some will have an affinity for the physical which might foster being competitive as with a Tennis or Golf Pro while the more academically inclined may value learning more. So choice comes into it but it’s strongly influenced by personal strengths and circumstance.

So we’re adaptable but unfortunately, not always in a good way. But are businesses??? Pundits like Jim Collins say you need to preserve the core ideology (values & purpose) and change the rest. Between writing, “Built to Last” and “Good to Great” he changed his mind about the importance of Leadership, so perhaps, he’ll change his mind about the constancy of values. Jim Collins also suggests that you need to eject people like a virus, if they’re the wrong ones. And while I don’t believe he was very clear about what constitutes the “right” people, I think you could define it as the people that share the company’s values and have the aptitude to achieve the desired outcomes. A business’s values are shaped by its employees and if the employees change, so does the business’s values and culture. The question is: should an organization be shaped with intent from the beginning, i.e., should the criteria for hiring include values?

Jim Collins also asserts that a CEO’s core values should not be confused with the organizations core values. They’re different because the organization has a culture independent of any leader whether they like it or not.

Changing culture is understood by companies like IBM where they’ve made it a point to re-shape the company by bringing in new blood. It was a criterion for their survival. Now instead of being about “Business Machines” they’re about providing innovative business solutions. And maybe IBM will never again achieve their previous glory but you have to give them credit for re-inventing themselves.

When it comes to choosing people everyone wants the equivalent of Wayne Gretzky on their team but the reality is that superstars like Wayne pick and choose who they wish to be aligned with because they can, i.e., they qualify their employers based on their values. Hopefully, any fit works both ways but the chances of stacking the deck with all superstars is unlikely. And there’s really little point in hiring a Wayne Gretzky to play basketball so aptitude is clearly an important criterion relative to suiting the needs of the business. And it’s not all about aptitude - the systems in a business can make a huge difference. Whoever it was that came up with the McDonald’s “system” was obviously very talented (or lucky) but McDonald’s doesn’t need superstars to work in restaurants flipping burgers. In fact, it’d likely be counter productive. Although, I would say they need people that can interpret what people want and achieve a level of customer service that encourages people to want to do business with them. The bottom line is talent needs to be applied strategically, and where it matters.

Small business owners typically want to hire using networking because it provides some comfort around shared values and aptitude but it’s not particularly efficient. Obviously reaching out to a bigger pool is more likely to “net” better prospects but because most business owners aren’t great at qualifying people they avoid doing so. Hiring a HR professional to develop criteria for screening can help.

In the end you can be purposeful about the people and matching their values with the business’s or you can leave it up to chance. Which do you think will work better?

In summary:

• What people “value” will and can be changed
• Values shape culture. Culture shapes identity
• Aptitude influences identity
• Aptitude/talent should fit the business
• Aptitude/talent should be leveraged strategically
• Be purposeful about building the “right” organization

The Great Management by Numbers Debate - Putting Metrics in their Place

"You get what you measure. Measure the wrong thing and you get the wrong behaviors." - John H. Lingle

 "Perhaps what you measure is what you get. More likely, what you measure is all you’ll get. What you don’t (or can’t) measure is lost" - H. Thomas Johnson

 I think the above two quotes really sum up the “management by numbers” debate well in that metrics or Key Performance Indicators (KPI’s) will drive behaviour but not necessarily the ones you want or the ones that will help sustain your business.

Complexity

The way complex systems interact is often difficult to understand and can be the bane of business. When we don’t understand something we create hypotheses. And when those hypotheses prove to be correct it’s a wondrous thing. Where it gets tricky is when it can’t be or isn’t proven, and the varying opinions become the basis for non-productive conflict or delusion.

There are a couple of ways to react to this. One: You can accept that things are too complex to understand and give up. The problem with that approach is that it’s not productive. Two: You can try to make improvements and to understand what’s going on despite the complexity. I’m a big proponent of putting in effort to improve despite the fact that you may fail. You will at least have been proactive and the odds are, if you do it enough, you’ll at least improve and potentially succeed. The question I struggle with is how many times should you try and at what point should you give up? Obviously you’ll stop when your resources run out but is that the “best” time?

Metrics

I can think of lots of examples where metrics failed. Where specifications were set and met and yet there were problems. One case was a Tier 2 supplier who wanted to maximize their profits and really didn’t understand the application. Their cost cutting measure still met the specifications but not the intended purpose of use, resulting in premature failures. The resulting warranty costs definitely outweighed any cost savings not to mention the cost of damage to everyone’s reputation.

It’s possible that they didn’t care about potentially negative consequences but I seriously doubt it given how poorly it reflected on their competence and credibility. It also reflected badly on the OEM (Original Equipment Manufacturer) and Tier 1 supplier since it could be argued that the specification was inadequate.

There are ways to approach complexity to develop understanding but it’s helpful to put metrics into context first.

Key Performance Indicators (KPI’s)

Source Merriam Webster http://www.merriam-webster.com

• Key – 3 key adj Definition of KEY: important, fundamental
• Performance - noun 4b: the manner in which a mechanism performs
• Indicator – noun 1b: gauge. Example of INDICATOR: Economic indicators suggest that prices will go up.

In business, the term “Key Performance Indicator’s” provides a better context than “metrics”. Metrics shouldn’t be the-end all, be-all; they’re simply indicators of performance although they should be key ones. For example, as the dashboards in our vehicles demonstrate we need gas in order to drive but we don’t want to confuse the requirement for gas with the purpose of getting us to a destination. Fuel level is a key indicator for vehicle operation but it becomes irrelevant if we decide to use some other method of travel.

Driving Behaviour

Temple Grandin is a fascinating person and author. She’s autistic and has a Doctorate in Animal Science. She’s very passionate about the humane treatment of animals and has developed processes and methods to get cattle (and other animals) to calmly go to slaughter. Her challenge was on the human end; despite significant effort, slaughter house personnel kept relapsing back to old habits of using cattle prods, etc. Undaunted, in typical Temple style, she decided that if she could figure out how to get cattle to quietly go to slaughter, then she could figure out how to get humans to co-operate too. What she discovered was that auditing worked, i.e. when the desired behaviours were measured, they were maintained.

Similarly, providing bio-feedback can lead to amazing changes. Measuring also works effectively in other contexts too although you could certainly argue that it doesn’t always work given America’s struggle with obesity and obsession with weight loss. Clearly some things are harder to change than others. In the context of business however, we rely on metrics to drive quality improvements. Unfortunately, problems can arise in how we tend to think of “measure”. For example, I like the Hauser & Katz saying that, “Being vaguely right is better than being precisely wrong”.1 Their assertion is that measuring something precisely or easily isn’t as important as what you measure. What matters is that the measurement be pertinent. Things like culture, identity and emotion can have a big impact in business and yet it’s unlikely you’ll be able to precisely measure it, although, you might be able to differentiate between a supportive or non- supportive culture.

Other Considerations

I think it’s interesting that in Chip & Dan Heath’s book, “Switch” they don’t mention “metrics” as a change mechanism. Instead they talk about concepts like following the bright spots which I think of as leveraging benchmarks or figuring out how to apply what’s worked previously in new areas.

Their analogy reminded me of Six Sigma and Shainin techniques as the process is similar. Identify the issue, develop a hypothesis on the root cause, prove the root cause using paired comparisons, etc. Then develop strategies to repeat the desired outcome and minimize the variation. Notice that it takes time, analysis and perseverance. These types of improvements are responsible for the great quality we see in automotive vehicles these days but it’s not cheap and maybe that’s the rub. Understanding the complexity is difficult and resolving things that are difficult is typically expensive - but it can be done. Unfortunately, hiring a Six Sigma Engineer may be out reach of many small businesses but there are alternatives. (I recommend reading, “Switch”, to get some good ideas.)

Another thing to consider is that there are frequently conflicting perspectives; and it’s about striking an appropriate balance or finding the sweet spots. My favourite example is balancing between the cost of production and design optimization. It’s always nice to over-deliver but there’s little point in producing a Taj Mahal when a cottage will do, especially if you’re on a limited budget. Using targets to support an appropriate “balance” can help with understanding of what makes sense and can assist in providing context and perspective.

The Heath brothers also make the point that there are times when you don’t want to use measurement because people (being the lemmings we are) will follow the social proof or in their words: they’ll “follow the herd” or whatever the majority are doing. That is, you don’t want to show or reinforce what the majority are doing if it’s the wrong thing.

Metrics prove change. But what comes first: the chicken or egg? You can argue that the methods used to change behaviour can also be used to achieve the metrics. Regardless, you need to be working towards a purpose so if what you were doing isn’t working then you need to change and verify it achieved a positive outcome.

The bottom line? Don’t waste your time (and money) measuring something because it’s easy. Measure it because it supports the purpose of the business and remember, as is the case with vehicle dashboards: “metrics” (in this instance a fuel gauge) can have little to do with the purpose of getting to a destination and yet still be very useful in ensuring the “success” of the journey.

1 From: Metrics: You Are What You Measure! by John R. Hauser (MIT Prof) and Gerald M. Katz (Executive Vice President, Applied Marketing Science, Inc also went to MIT)

April 1998
http://www.mit.edu/~hauser/Papers/Hauser-Katz%20Measure%2004-98.pdf

 

Muses

From http://www.merriam-webster.com/dictionary/muse
3 Muse noun: Definition of Muse: 2: a source of inspiration; especially: a guiding genius

Finding Inspiration

Muses come around unexpectedly but when you discover one you know it.

I belong to a LinkedIn discussion group called: “Ted: Ideas Worth Sharing”. One of the many topics generating what appears to be never-ending traffic is whether Wikileaks is good or bad. I made one of my rare comments - that not all whistle-blowing is good; that sometimes it can have detrimental effects. (That is not to say that whistle-blowing can’t provide positive impetus because it can.) Geoffrey Morton-Haworth noticed my comment and decided that it merited an off- line e-mail. He’s developed an application/program called Yala and thought I might be a good candidate for it. He had obviously scrutinized my LinkedIn profile and decided it was likely that we shared some common interests, and he wasn’t wrong. I was happy to follow up the e-mails with a phone meeting because I was intrigued. Not only is Geoffrey highly intelligent (he has a Masters in Management from MIT) but as his posts on Wikileaks would indicate, he’s also insightful.

In our phone meeting we talked about Yala - how and why he came to develop it; what it does and how it works. What I learned is that Yala is an application/program that provides a framework/forum for insight. (Reference http://www.yalaworld.net ) The premise is that insight naturally and organically leads to innovation and adaption; that open sharing requires the establishment of trust because as a species we’re a suspicious bunch and have a strong propensity to shoot the messenger, bicker and criticize. We also discussed the fact that people have a hard time giving themselves permission to take the time to be insightful because they don’t understand the value. (In order to implement change typically 80% of the time spent needs to be in discovery or insight.) All in all, it was a very enlightening conversation. Geoffrey acted as a muse for me which ironically led me to the conclusion that both he and I are in the business of providing muse forums for others.

Good Listening leads to Hearing Better Stories

Geoffrey and Yala was a particularly unique, wonderful and rich find for me. Yala is a complex mosaic with an alluring premise and Geoffrey himself is like an artist and sage to the extent that you feel you’ll never be able to absorb all he has to offer. And yet, I’d never known that if I hadn’t explored it. I’ve found listening to people’s stories richly rewarding; that I learn the most amazing things. I’ve found, to my great pleasure, that all I have to do is be curious, and ask a few questions.

I remember apologizing during my coaching training when I was being coached by a mentor coach that the conversation was so one-sided and completely focused on me – the coachee. Of course that’s the point, a coach is there to help the coachee accept their current circumstance and adapt in a positive way so it is, by definition, a one-sided conversation. The coach is essentially a tool to help the coachee move forward and can be an amazingly effective way of getting people “unstuck”. There’s a powerful learning component (insight) that drives the coachee to proverbial “aha” moments. What was interesting was my mentor coach’s response, which went something like this: “It’s not one-sided. I’m learning too and get lots of insights from you.” At the time I doubted that I had any pearls of wisdom that she might find useful but no longer. I can absolutely attest to benefiting, learning and finding inspiration during coaching and it is one of the reasons I love it so much. Allow yourself the luxury of listening because not only is it enjoyable, it has the added benefit of facilitating learning and insight.

Nurturing Trust leads to Hearing Better Stories

So given the rich opportunity in listening, how do you get people to tell you their stories? You can “open the door and invite them in” by being genuinely curious and interested. You need to presume it’ll be worthwhile because you have no idea of what you’re going to hear or where it’ll go. You need to establish and maintain trust. Simply listen - like you do when you read a book. Provide no negative feedback that might shut a narrator down. Don’t interrupt with negative judgments, or criticisms. Just follow the story. Trust is a funny thing in that it takes little encouragement to establish and maintain but once it’s been betrayed it’s really difficult to re-establish. Actions speak louder than words and maintaining trust means providing and nurturing a supportive environment.

The caveat is that, of course, we don’t all have the time or energy to listen to every story and need to be discriminating in our choices. But don’t limit your enjoyment by pre-judging the worth or ‘skimming through the pages’. ‘Read’ it slowly. Savour everything the story has to offer; experience (live vicariously) the highs and lows. Understand that the more closely you listen the more you will see and the more interesting it will be.

Good Stories

A good story is always compelling and that is why it has been effectively used throughout history to facilitate learning. It can also be limited to simple entertainment as it is with most modern day fiction. But I think one of the reasons it works as a learning tool is that it can provide a compelling and impersonal way of reframing. It gives the audience an example to follow while not tainting the process with a relationship that inevitably will have some baggage.

Case in point: best-selling author/journalist Malcolm Gladwell (Outliers, What the Dog Saw, etc…) credits his success to telling non-fiction stories and if you’ve read any of his books and articles you’ll know what he means. They are compelling and thought provoking. So much so, that you find yourself retelling them. Like (from “Outliers”) how the probability of making it in the NHL is related to being born in the first quarter of the year. I can’t tell you how many people I’ve told that to. Why? Because it’s interesting.

20% Rule for Nurturing Innovation

Whether it be just coaching or The Alternative Board (which includes coaching and peer advisory) or Yala: all are ways of facilitating insight and adaption. The challenge is in getting people to understand and value the benefits of having muses and giving themselves permission (i.e. invest the time) to seek them out. I believe this comes down to valuing innovation and having the insight to cultivate it. 3M so values innovation that it allows its employees 20% of their time to pursue projects of their own choosing as does Google. A business culture needs to support and nurture that type of exploration in a way that is consistent with the overall culture. If an organization is efficiency- and control-focused, then they’re not likely to support people pursuing their own agendas 20% of the time. There also needs to be a high level of trust. For example, one day a week for a person to pursue their own agenda doesn’t mean a day off. There has to be a passion for the pursuit of knowledge and a forum for fostering the type of creativity and learning that comes with supportive interaction and discovery.

It’s no secret that in order for businesses to survive they need to innovate and adapt on an ongoing basis. And yet if this is understood then why do so many businesses fail? Who doesn’t need to figure out how to improve things? But just because I say (or Geoffrey says) I can provide a forum for learning and innovation doesn’t prove it. There is always the need to establish and sustain trust. So how does one develop the confidence to try forums like The Alternative Board or Yala? My suggestion is you won’t know if it’s worth it unless you try it. Experimentation always results in learning what does or doesn’t work but also involves risk. Everything new is risky given its untried but obviously can have a payoff. Can you afford not to experiment in your business?

And for some people I suspect it’s simply a matter of being ready. If you’re not happy with their current condition but don’t know what to do about it, one of two things will happen. You’ll get so frustrated that eventually you’ll give up (a.k.a. ‘burnout’) or you’ll discover a way to become ‘unstuck’ and proceed forward. And what’s wrong with having support to do that?

If a MIT grad thinks he can benefit from fostering insight, then maybe others should too? And the fact that’s he’s figured out how to do it online? How cool is that?