Strategy. Innovation. Brand.
Leadership: Why Decisions Succeed
In my critical thinking class, we’ve been using Paul Nutt’s book, Why Decisions Fail. It’s an interesting look at debacles … “botched decision[s] that attract attention and get a public airing.” In the coming weeks, I’ll draw some examples from Nutt’s database of famously bad decisions.
While I like the book in many regards, I think it’s a mistake to study only failures. Hopefully, business is about more than avoiding something negative. It’s also about attaining something positive. So I’ve been looking for a counterpoint — a study of why decisions succeed. I haven’t found a comprehensive study, but I did find an intriguing article from Boston Consulting Group, “Winning Practices of Adaptive Leadership Teams.” The BCG researchers interviewed 93 executives and identified five traits of successful executive teams. Here they are:
One voice — effective leadership teams “take the time to get completely aligned about the organization’s vision, values, and vital priorities, while respecting individual differences of opinion and experience.” While this implies good communication and mutual respect, it also implies that each team member has an enterprise-wide sense of responsibility. As one executive put it, “If my division is successful, but another division is not, I would not regard that as a victory.”
Sense-and-respond capacity — the most effective teams spend a lot of time surveying the environment, identifying trends, and synthesizing information. Among other things, they make heavy investments in information technology and pattern seeking software. The goal is to successfully “… monitor the external forces that drive change in their business environment.”
Information processing — the investment in IT often generates a large volume of data. The adaptive team then has to process it to create useful information. The team needs to share the data effectively and debate it transparently. Several teams developed “…highly disciplined meeting designs and agenda formats to ensure that they routinely exchange key information through a streamlined process that breaks down silos of communication.” Many teams also emphasize “overcommunication”.
Freedom within a framework — several teams spoke of “guardrails”. Within those guardrails, executives have a lot of room to maneuver; they can make their own decisions on how to get things done. As they prove themselves, the team widens the guardrails. Within the guardrails, “…failure [is] seen as a possible and an acceptable outcome. Failure is debilitating only if the lessons learned are not disseminated and applied quickly.”
Boundary fluidity — executives move both horizontally and vertically. There’s a sense that successful executives are “utility players” — any executive could fill in for any other executive if need be. There’s also a sense that silos are self-defeating. As one executive put it: “We always try to move people around so that their perspectives evolve and things don’t get stale.”
So does it work? BCG has developed an Adaptive Advantage Index and applied it to over 2,200 public companies in the U.S. The index is strongly correlated to growth in market capitalization.
Why Decisions Fail can tell you what not to do. That’s an important perspective. On the other hand, the BCG study (and others like it) can tell you how to succeed. In my opinion, that’s more important. I’d rather focus on succeeding than not failing.
Innovation and Memory
What was the other half of my idea?
Do you forget stuff? Yeah, me too. It makes it harder to be innovative.
The trouble is that innovative ideas don’t come all polished up and wrapped in a pretty bundle. When a creative person describes her process, it may seem that innovative new ideas arrive in a flash of insight. That’s a nice way to tell a story but it’s not really the way it happens.
In truth, innovation is more like building a puzzle — when you don’t know what the finished piece is supposed to look like. You collect a piece here and a piece there. Perhaps, by putting them together, you create another piece. Then, a random interaction with a colleague supplies another piece — which is why random interactions are so important.
Each piece of the puzzle is a “slow hunch” in Steven Johnson’s phrase. You create a piece of an idea and it hangs around for a while. Some time later — perhaps many years later — you find another idea that just happens to complete the original idea. It works great if, and only if, you remember the original idea.
In previous posts on mashup thinking, I may have implied that you simply take two ideas that occur more or simultaneously and stick them together. But look a little closer. One of my favorite mashup examples is DJ Danger Mouse, who took the Beatle’s White Album and mashed it up with Jay Z’s Black Album to create the Grey Album, one of the big hits of 2004. But how long was it between the White Album and the Black Album? Well, at least a generation. I remember the White Album but not the Black Album. I think our son is probably the reverse. Neither one of us could complete the idea. DJ Danger Mouse’s originality comes from his memory. He remembered a “slow hunch” — the White Album — and mashed it into something contemporary.
So, how do you remember slow hunches? By writing them down. In fact, that’s one of the reasons I started this blog — so I won’t forget good ideas. I can now go back and search for ideas that I thought were important several years ago. I can recall them, put them together with new hunches, and perhaps create new ideas.
I like to read widely. I’m hoping that ideas — both old and new — will collide more or less randomly to create new ideas. Unfortunately, I often forget what I read. With this blog, I now have a place store slow hunches. And, since it’s public, I’m hoping that you’ll help me complete the cycle. Let’s get your random ideas colliding with my random ideas. That will help us both remember, put our hunches together, and come up with bright new ideas. Sounds like a plan. Now we just need to remember to stick with it.
Critical Thinking Through the Ages
As I’m teaching a course on critical thinking, I thought it would be useful to study the history of the concept. What have leading thinkers of the past conceived to be “critical thinking” and how have their perceptions changed over time?
One of the earliest — and most interesting –references that I’ve found is a sermon called the Kalama Sutta preached by the Buddha some five centuries before Christ. Often known as the “charter of free inquiry”, it lays out general tenets for discerning what is true.
Many religions hold that truth is revealed through scriptures or through institutions that are authorized to interpret scriptures. By contrast, Buddhism generally asserts that we have to ascertain truth for ourselves. So, how do we do that?
That was essentially the question that the Kalama people asked the Buddha when he passed through their village of Kesaputta. The Buddha’s sermon emphasizes the need to question statements asserted to be true. Further, the Buddha goes on to list multiple sources of error and cautions us to carefully examine assertions from those sources. According to Wikipedia, the Buddha identified the following sources of error:
- Oral histories
- Tradition
- New sources
- Scripture or other official documents
- Supposition
- Dogmatism
- Common sense
- Opinion
- Experts
- Authorities or one’s own teacher
Further, “Do not accept any doctrine from reverence, but first try it as gold is tried by fire.” The requires examination, reflection, and questioning and only that which is “conducive to the good” should be accepted as truth.
As Thanissaro Bhikkhu summarizes it, “any view or belief must be tested by the results it yields when put into practice; and — to guard against the possibility of any bias or limitations in one’s understanding of those results — they must further be checked against the experience of people who are wise.”
So how do the Buddhist commentaries compare to other philosophers? In the century after Buddha, Socrates is quoted as saying, “I know you won’t believe me, but the highest form of Human Excellence is to question oneself and others.” Almost 2,000 years later, Francis Bacon wrote, “Critical thinking is a desire to seek, patience to doubt, fondness to meditate, slowness to assert, readiness to consider, carefulness to dispose and set in order; and hatred for every kind of imposture.” A few hundred years later, Descartes wrote, “If you would be a real seeker after truth, it is necessary that at least once in your life you doubt, as far as possible, all things.” A hundred years after that, Voltaire wrote about the consequences of a failure of critical thinking, “Anyone who has the power to make you believe absurdities has the power to make you commit injustices.”
As the Swedes would say, there seems to be a “bright red thread” that ties all of these together. Go slowly. Ask questions. Be patient. Doubt your sources. Consider your own experience. Judge the evidence thoughtfully. For well over 2,000 years our philosophers — both Eastern and Western — have been saying essentially the same thing. It seems that we know what to do. Now all we have to do is to do it.
Improve Your Vision (Statement)
Several clients have recently asked me to help them craft their vision statements. So, what makes for a good vision statement? Let’s
My vision is improving.
start with a few of my favorites:
Google: To organize the world’s knowledge and make it useful.
Lawson: We make our customers stronger.
University of Denver: A private school dedicated to the public good.
US Air Force: Fly, Fight, and Win.
Denver Public Schools: Every Child Succeeds.
National Multiple Sclerosis Society (NMSS): A World Free of MS
What can we learn from these? Here are a few pointers:
- Keep it short — no more than a dozen words. You want it to be memorable.
- Put customer requirements first — too many vision statements start with what the company does. In my opinion, that’s a mission statement. The vision statement summarizes your impact on your customers or the world at large.
- Know the difference between mission and vision. A mission statement is more about how we do things. A vision statement is about what happens to the world when we do those things.
- Use the “so what/ so that” process to get to ultimate benefits — start with a statement of what your company does. Then ask yourself, “so what?” Answer with a “so that” statement. Repeat the process until you get to a logical conclusion — that’s probably the benefit you want to focus on. So, let’s say you provide services to hospitals. You start with:
We provide world-class services to hospitals…
So what?
…so that hospitals will be more effective …
So what?
…. so that hospitals can save more lives.
- Imagine end states, even if they put you out of business — the vision statement of NMSS is, “A World Free of MS”. When we achieve that, NMSS will no longer be needed.
- Verbs are good — I like the US Air Force statement: four words, three of which are verbs. Active verbs (and actions in general) are memorable.
- The verb “to be” is not your friend — it’s lazy and verbose. None of my favorite statements include it.
- Ditto for the verb “to strive” — in your vision statement, don’t strive to do something. Just do it. (Where have I heard that before?)
- It’s not just words, it’s culture — you can develop elegant phrases but, if they don’t fit your culture, you’ll just create cynicism.
- Live it — it’s good to write a statement, it’s better to have it absorbed into your employees’ hearts, and minds, and actions. The only way to do that is to set the example and live the words, even when it’s painful to do so.
Sunday Shorts – 5
The next mobile app platform?
Some interesting things I spotted this week, whether they were published this week or not.
The Economist asks, will we ever again invent anything that’s as useful as the flush toilet? Is the pace of innovation accelerating or decelerating? And what should we do about it, if anything?
When we think about innovation, we often focus on ideas and creativity. How can we generate more good ideas? But what about the emotional component of innovation? For innovative companies, emotional intelligence may trump technical intelligence. Norbert Alter answers your questions from Paris.
We’re familiar with the platform wars for mobile applications. Will Apple’s iOS become the dominant platform? Or maybe it will be Android from Google? Perhaps it’s some version of Windows? But what if the next great mobile app platform is a Ford or a Chevy? (Click here).
For my friends in Sweden, here’s McKinsey’s take on the future of the Swedish economy. Things are looking up — just don’t rest on your laurels.
Where does America’s R&D money go? Here’s an infographic that shows how the Federal government has invested in research over the past 50 years.
The Greeks had lots of tricks for memorizing things. They could hold huge volumes of information in their heads. But does memory matter anymore? After all, you can always Google it, no? William Klemm writes that there are five reasons why tuning up your memory is still important. And he’s a Texas Aggie so he must be right.
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