The Business Sensei

That’s An Amazing Serve!

One of those little tricks known to certain expert tennis players is saying to an opponent, “That’s an amazing serve! However do you do it?”

They’ll typically do this as they switch sides of the net, and suddenly the opponent’s amazing serve fizzles. By making the other player think about what he’s doing and focus on his body, instead of on the ball, that one question can completely change the course of a game.

Many practitioners of jujitsu and aikido learn the unbendable arm: they are told to extend their arm and imagine water jetting out at high pressure. Their arm becomes incredibly hard to bend. If they try to focus on the muscles, the arm is relatively easy to bend.

A similar trick is used by proponents of medical magnets and various other magic therapies: they’ll ask you hold your thumb and forefinger together on your right hand, and really focus on keeping those fingers together. They’ll then grab your fingers and pull them apart. Next, they have you hold the magnet or the magic herb packet in your other hand, and imagine the strength it’s giving you. Suddenly, your fingers can’t be pulled apart.

It’s a cool trick. I do it regularly by claiming my MIT class ring is magnetic and having the other person hold it in their off hand. Even though people know there’s obviously a trick, it works virtually every time.

So what’s going on? It turns out that when you focus someone on the mechanics of how their body moves, it scrambles their ability to do it. On the other hand, when you focus someone on a particular effect, be that a good serve, an unbendable arm, or keeping your fingers together, the body figures out the best way to achieve the desired result.

To put this another way, we become less capable when we attempt to micromanage ourselves. We become more capable when we learn to trust ourselves to exercise our skills in the ways that make the most sense for us. We do best when we have the freedom to focus on what we want to accomplish and discover the best way of accomplishing it, instead of being locked into one way of doing it.

What is even more interesting is that the behavior of teams mimics the behavior of individuals. The more a manager attempts to control the details of how the team is doing its job, the less capable the team becomes. The expert leader knows how to trust his team and gets out of their way.

The beginning jujitsu player attempts to make every piece of the move perfect: they try to turn their arm at just the right angle, step to just the right spot, and so forth. They are stiff and awkward. The master knows the result she wants and produces it, confident that her body will do the right thing. What is the difference between the novice and the master? Correct practice. Obvious though this point may be, if you practice the wrong things, you’ll do the wrong things.

The team is no different:  a leader learns to trust his team and the members learn to trust the team and the leader through constant practice. Like jujitsu, however, it must be correct practice. The novice who practices incorrectly improves slowly, if at all. He may do more advanced techniques, but he does them with the same awkwardness and wasted energy of a beginner. The team which focuses on the wrong skills may be given more difficult projects, but it does them with the same lack of coordination and poor use of resources as it did when it first got together.

When teams come together and attempt to leap straight into project definition and problem solving, they are focusing on the wrong skills. They haven’t yet learned how to be a team. Before they can define the project or solve problems they have to learn how to make decisions that they can all support. That doesn’t mean they all have to agree with the decision, but every team member must be able to enthusiastically implement whatever the team decides. That won’t happen if the team doesn’t know how to settle disputes and achieve consensus without splitting itself into factions.

Unfortunately, when teams focus on the wrong skills, leaders are unable to trust those teams to make good decisions. The leader, therefore, takes it upon herself to make all the decisions. While this may be a great way to get started, it starts to break down as the problems become more complex. This causes the leader to attempt ever tighter control of the team, with increasingly poor results.

At one major manufacturing firm I worked with, a certain engineering director was the go-to guy. He could solve every problem, and the team knew it. The director often complained that if he was stuck in a meeting, work came to a screeching halt, assuming it ever got moving fast enough to screech as it halted! The idea of taking a vacation wasn’t even in the cards.

The solution was to help him back off and let go of his control. Instead of solving their problems, he started walking the team through his problem solving process. Instead of answering questions, he showed them how he found the answers to those questions. Instead of making the decisions, he helped them develop effective decision making skills. It was pretty uncomfortable at first: the team got it wrong a lot, and he kept imagining what his boss was going to say to him if things didn’t work out. After a while, though, the team started to get the idea. Their problem-solving and decision making skills improved.

One of the very difficult transitions for jujitsu practitioners is discovering that doing very little yields the biggest response. Focusing on what should happen to their partner allows the technique to become effortless. This director had the equivalent experience:  although he felt like he was doing less and less, his team was accomplishing more and more. The less he focused them on the details of getting things done, the more they were able to do. Eventually, he was able to focus his time and energy on long-term strategic thinking, instead of day-to-day minutia.

Trusting yourself, or your team, to do the right thing isn’t magic. It’s the result of hard work and correct practice. The more you control the details, the harder the task becomes. The more you enable your team to deal with the details, the easier it is for everyone, and the higher the quality of the results.

Sometimes less really is more.

For Want of a Rubber Band

The other day, my DVD player stopped working. Naturally, this happened the night I was sitting down to watch a movie I’d been looking forward to. Quite simply, the tray wouldn’t open (presumably, it wouldn’t close either, but there was no way to test that). As we all know, a feature of modern electronics is that there are “No user serviceable parts inside.”

Nonetheless, I decided to open it up anyway. If nothing else, I figured I could at least recover the trapped DVD one of my kids had left in the machine.

Opening it up was an interesting experience. Inside was mostly empty space with a tray and a circuit board. Apparently the major difference between a portable player and a non-portable one is the amount of wasted space.

There was also one user serviceable part: the rubber band.

Yes, in the midst of the electronics there was a broken rubber band. That rubber band acted as the “drive train” to open and close the DVD tray. Just think about that: all this high tech electronics rendered completely useless by the failure of a sixty cent rubber band. How much is that rubber band really worth? Sometimes the value is not the cost of the item but what it makes possible. Sometimes the critical problem that is blocking us from moving forward turns out to be something small and simple, but only if we know where to look and what to look for. While I could have replaced the DVD player, that would have been a much more expensive solution than replacing the rubber band. Knowing the real problem enabled me to pick the best possible solution.

I was asked recently about my opinion on attendance point systems.

“Why?” I replied.

The person explained her company was having problems with absenteeism and people changing shifts without notifying anyone in authority. Based on this, she wanted my opinion of attendance point systems, presumably on the logic that implementing one would solve her problem. Unfortunately, without knowing exactly why people are not showing up for work on time and without knowing why they’re constantly switching shifts, implementing an attendance point system is as likely as not a solution in search of a problem. Sure it might work; on the other hand, it might not work. It’s basically a roll of the dice.

So why jump to that solution? Simple. It’s easy. Faced with a problem without an obvious solution, the natural response is to impose a solution that fits the symptoms. Symptoms, unfortunately, are not the problem; they’re just the symptoms. Like taking an antibiotic for the flu, it doesn’t help and may make you feel worse.

Instead, we need to work backward from the symptoms to understand the underlying problem. With my DVD player, the symptom was that the tray wouldn’t slide out. Had I assumed the problem was that the electronics were fried, I would have tossed it and bought a new one. By investigating the problem, I had a working DVD player in less than fifteen minutes.

Investigating the problem, however, requires a certain amount of effort and frequently appears overwhelming and expensive. The lure of an obvious, easy, and, above all, cheap solution is very strong. The fact is, there are a lot of obvious, inexpensive solutions to many problems. In a business, it’s particularly easy to find an easy solution particularly if you don’t care if it actually works. If you want a working solution, though, the choices become somewhat more limited.

Investigating a problem is rarely as overwhelming as it first appears. With the DVD player, it was easy to open it up and see what was going on inside. With human systems, on the other hand, taking them apart in that way can be a bit problematic. Putting them back together again is even more tricky. The real key is to see how often the symptoms appear and under what conditions. What other symptoms are there? What do people say when you ask them about their experiences and their observations? As you put together a picture of the symptoms and when they appear, you can start brainstorming about possible causes. Does your organization have a cold? The flu? Is it suffering from growing pains?

At one company, everything was going great until they went public, had a huge influx of cash, and began a rapid expansion. Suddenly, all sorts of symptoms appeared: increased conflict, passive-aggressive behavior, confusion, inability to follow through on decisions, and so forth. Fixing the problem required first identifying what was really going on, and then crafting a solution appropriate to that organization. None of the problems were that big, but, like that rubber band, they were in critical places.

In a sense, it’s not how big the problem is that matters most. What matters most is what that problem is preventing you from doing.

How much was that rubber band worth again?

Eye of the Hurricane

I was lying on my back. Standing around me were four people who, only two weeks before, had been teaching a class on appropriate emergency response in jujitsu.

The fact that I was flat on my back on the ground was not, in one sense, unusual. A friend of mine was taking his black belt exam and I had volunteered to let him demonstrate his throws on me. Things went slightly off the rails when he threw me, lost his balance, and ended up kicking me in the head.

The “thwock!” echoed through the gym.

One of the instructors was supposed to take charge. They stared down at me. I stared up at them. Eventually, I said, “Someone get me an ice pack.”

One of the men jumped slightly, turned, and ran out of the room. A moment later, he ran back in with one of those first aid kid chemical cold packs in his right hand.

“It’s not cold,” he yelled.

“You have to squeeze it,” came a voice from somewhere in the room.

In case you were ever curious, yes, it is possible to squeeze one of those cold packs too hard.

For such a small cold pack, the contents covered a remarkably large area.

I looked at my now soaking gi. I got to my feet.

“I’m fine now. Please don’t help me any more.”

Fortunately, in this situation, there was no permanent harm done and the fact that several people froze at the moment of crisis was merely embarrassing. My gi wasn’t even stained.

Unfortunately, many businesses are not so lucky. Even more unfortunately, it’s not the actual disasters that freeze them: handling the rare fire or power failure is barely a blip in the proverbial routine. Rather, the “disasters” that throw everything off balance and freeze decision making in its tracks are those that could have been anticipated or for which management thought that they had prepared.

Despite all their training, when the accident occurred, the four jujitsu instructors metaphorically lost their balance by focusing on the image of how bad it could be. That prevented them from acting immediately to determine how bad it actually was.

At Lacunae Software, the ship date was two days off when QA found a major bug in the software. Rather than stop, investigate the severity, and determine an appropriate course of action, the CEO announced that delaying the ship would clearly doom the company. He castigated QA for disloyalty and ordered the product to ship on schedule. Customers were not happy, costing the company more than the delay would have. Acting out of fear of how bad it could have been made the situation worse.

When things are going well and something suddenly goes wrong, it can be very easy to focus on all the potential negatives. That doesn’t help. Successful companies have the habit of focusing on what can go right. Developing that mindset takes practice:

Take a deep breathe and recognize that you have more time than you think. This is quite probably the hardest step.

• Remind yourself of the vision for your product and company (you do have a vision, right?).
• Review the steps necessary to manifest that vision. It can help to write them down as you go through them.
• List the things that can go right to move you forward from where you are. Be realistic, and also optimistic.
• Any time you find yourself focusing on what can go wrong, stop and shift back to what can go right. Evaluate the problems later.

Far too many companies never define their vision nor do they map out the path to success. The secret to success is staying on balance. The secret to not losing balance is knowing where you’re going, reminding yourself how you’ll get there, and focusing on the positive.

The Speed of Mistrust

Remember the scene in the original Star Wars where Luke, Hans, Chewbacca, and Leia are trapped in the garbage disposal with the walls closing in on them? As the walls inexorably press closer and closer, they engage in increasingly desperate attempts to stop them, a ritual made famous in dozens of adventure movies. No matter how hard they push back against the walls, their efforts are futile. Of course, they are the heroes of the movie, so they do find another way out; after all, if they had not, the movie would have come to an abrupt ending and the fans would have been crushed.

Of course, rather than counting on finding a miraculous escape, it would have been better to have not been in that tight a predicament in the first place.

At Soak Systems, the CEO, whom we’ll refer to as Luke, recently made the comment that, “I guess I should have pushed back harder.”

He was referring to a disastrous product release, one whose eager anticipation by their largest customer was exceeded only by that same customer’s anger and disgust when they finally received it. Their subsequent email was, to say the least, crushing.

In the inevitable post-mortem, it quickly came up that Luke had made at least a couple of attempts to play with the product before it was shipped, but that engineering had “refused to let me see it.”

In retrospect, Luke felt that if he had only insisted more strongly, then clearly engineering would have complied and he would have been able to identify the problems and save the release. Luke is also capable of holding back those moving walls with just the little finger of his left hand. Okay, well maybe not.

While it was gallant of Luke to accept some of the blame for the disaster, he was actually missing the point. In fact, the question is not whether Luke could push back hard enough to convince engineering to cooperate. The question is why he was in that position in the first place. Why, as CEO, does he need to push back that hard just to get basic cooperation? It’s hard to imagine how a release that disastrous could occur without plenty of warning. If nothing else, the stink should have been obvious.

At this point, the traditional thing to do is to nod sagely and observe that if they simply had better communications, the problem could have been avoided. While that observation may be true, it is definitely useless. Of course they weren’t communicating! Why not?

In Star Wars, our heroes at least had the excuse that they landed in the garbage disposal because they were trying to avoid pursuing Storm Troopers. In the resultant rush, they didn’t really have a chance to sit down and calmly discuss their options. At Soak, Luke didn’t have that excuse. There was no rush and no panic, other than the ones that he manufactured.

Effective communications comes from building trust, and trust comes from taking the time to build connections with employees and from, yes, communicating. The problem is that, as CEO, people don’t typically drop by to chat. If you want to get people talking to you, you need to seek them out. Luke didn’t do that. By comparison, IBM’s founder, Tom Watson, was legendary for showing up unannounced at different IBM locations and just dropping in to chat with different people. He was trusted as few CEOs have ever been: employees believed that he cared about them personally.

Luke, on the other hand, talked only to the people he’d worked with in other companies. When he came down to engineering at all, it was mainly to exhort them to do more or complain that they weren’t doing enough. When it became clear that the release had problems, the engineers had mixed feelings about talking to Luke. They couldn’t decide whether he would yell at them and go ahead anyway, threaten them and go ahead anyway, or simply ignore their input completely and go ahead anyway. The VP of Engineering wasn’t able to help them figure out which one it was either, so they decided to simply say nothing.

This is, perhaps, not the best way to establish strong and effective communications with your team.

Now, the fact is, Luke was certainly communicating with the rest of the company. His particularly choice of what to say and how he said it served to build a foundation of mistrust, not a foundation of trust. Sadly, in this environment, the speed of trust has nothing on the speed of mistrust.

Worst of all, Luke’s response, that he “should have pushed back harder,” only confirmed that mistrust. From the perspective of engineering, the release failed due to a number of serious problems that Luke and the rest of senior management were unwilling to address. Acting as if just yelling and demanding more would have changed anything was telling everyone in the company that Luke still didn’t acknowledge the severity of the problems.

The net result: nothing has changed since the release. The metaphorical walls are continuing to close in, Luke is ineffectually pushing back, and one after another the top people at the company are resigning. While Luke may end up with a company full of people he can push around, it’s not at all clear that any of them will be able to push a product out the door.

The situation is not totally irreparable, although it’s getting close. Luke needs to take the time to sit down with his people and actually talk to them and listen to their answers. He needs to take the time to actually get to know more employees than just those with whom he worked in the past. He has a lot of mistrust to overcome and doing that will not be easy. Whether he succeeds or not really depends on whether he is willing to recognize how little trust people have in him, and whether or not he’s willing to work to change that. Until he makes those changes, trust gets the dirt road and mistrust gets the superhighway.

Which is running faster in your company, trust or mistrust?

Happy Groundhog Day!

In the movie Groundhog Day, Bill Murray finds himself reliving the same day over and over again. Great movie, and solid proof of the old adage that adventure is something really dangerous and exciting happening to someone else. As much as watching Groundhog Day can be lots of fun, actually experiencing it is something else again. Thus, it never fails to amaze me when organizations willingly enter the Groundhog Zone.

No, I don’t mean that they are afraid of their own shadows, although that sometimes happens too! Rather, they are trapped in a cycle that is at best non-productive, at worst, downright destructive to the organization. Worst of all: everyone knows its happening and yet no one does anything about it. Unlike Bill Murray, though, they aren’t actually trapped. They just think they are.

For example, I worked with one two thousand person organization on some serious leadership issues. The first time the organization ran into this particular problem was decades ago, and it nearly destroyed the business. Many of the top people stormed out to found a competing company. The same thing happened again some twenty years later. The third time around, we made some progress: there was no fissioning of the business. Everyone stayed put and the first steps were taken to resolving some of the long-standing structural problems that were causing this cycle to repeat. It wasn’t easy and it wasn’t necessarily pleasant, but it happened.

Okay, that’s an old business. Should we really be concerned with problems that only come up every twenty years? That’s up to you; I suppose it depends on when the next time the cycle rolls around. But Groundhog moments are not limited to older companies. Younger companies can have the same problems.

At one company, the engineering teams are unable to make decisions. The same issues come up week after week: every Monday is Groundhog Day! While there is a lot of talking and a great deal of motion, there is no progress. Running around in circles may feel good, but doesn’t exactly get you anywhere. Management regularly gets involved in various ways, and always with the same results: there’s some yelling, some threats, maybe a few people get fired, and there’s a brief flurry of forward motion. After a few weeks or a couple months, though, they are right back to where they started. Even though many members of the management team know there’s a problem, even though they keep talking about the problem, they take no action despite the cost to the organization: on the order of six figures per month. Groundhog Day indeed!

So what do you do when you realize that you are trapped in Groundhog heaven? Since every company’s Groundhog Day is uniquely theirs, the key is to know how to generate possible solutions, rather than find a one-size fits none approach.

First of all, don’t be afraid of your own shadow. Recognize that something isn’t working the way it should. The longer you pretend the problem doesn’t really exist or the longer you just hope it’ll go away, the worse it will get. As Einstein famously said, doing the same thing over and over and expecting a different result is the very definition of insanity. Whatever you’re doing to change things isn’t working. It’s time to try something else.

In Bill Murray’s case, Groundhog Day just happened overnight. In the real world, you didn’t get into Groundhog mode overnight and you won’t break out of it overnight. Stop looking for quick fixes: if they haven’t worked yet, they aren’t likely to in the future. You’ll spend more time and money trying quick solutions that don’t break the cycle than you will in committing to one solution that may take some time to implement. Organizational change, even beneficial change that everyone claims they want, is still difficult. If it wasn’t, Groundhog Day would be over by now.

Look outside the company for ideas. Let’s face it, you’ve got some really smart people working at your company (if that’s not true, you have bigger problems!). If they haven’t managed to change things, it might just be because they either don’t know how or they are too busy doing their jobs to devote the time and energy necessary to driving the changes necessary, or both. Whatever the reason, recognize that if they could, they would. Look at other companies and adapt their solutions to your specific culture and situation and bring in the resources you need to actually break the cycle.

Bill Murray has no choice but to repeat Groundhog Day over and over. Fortunately, you aren’t Bill Murray. What choice will you make?

Stephen Balzac is an expert on leadership and organizational development. A consultant, author, and professional speaker, he is president of 7 Steps Ahead, an organizational development firm focused on helping businesses get unstuck. Steve is the author of “The 36-Hour Course in Organizational Development,” published by McGraw-Hill, and a contributing author to volume one of “Ethics and Game Design: Teaching Values Through Play.” For more information, or to sign up for Steve’s monthly newsletter, visit www.7stepsahead.com. You can also contact Steve at 978-298-5189 or steve@7stepsahead.com.

Make A Decision!

“Daddy, can I have that?”

As the holidays approach, a familiar refrain is heard. More common than Jingle Bells or other traditional Christmas music are the unending requests from children for various toys. Even for those who do not have young children, there is the pressure of deciding what gifts to get for family and friends. Indeed, in one sense, the parents of young children have it easy: their kids are at least telling them what they want. Of course, if all the kids got all the toys they asked for, we’d be able to pay off the national debt about fifty times over. Since very few people have that sort of money, a certain level of decision making still needs to take place.

Although web-based retailers have certainly removed a great deal of the terror normally associated with holiday shopping, nonetheless it remains an oddly exhausting activity. An hour of shopping on Amazon.com may not leave us battered, bruised, or pepper-sprayed by over-eager shoppers, but it can still leave us feeling like our brains have turned to jelly and are dripping out our ears. Not only does this lead to some very odd looking stains on our shoulders, it can also be very hard to focus on much of anything else. Attempting to put off the e-shopping is even worse. In many cases, the effort of not shopping can be more exhausting than the shopping itself! When it finally happens, the shopping experience is all the more, let us say, poignant.

So what is going on here anyway? How can a few mouse clicks be so draining?

As psychologist Roy Baumeister and John Tierney explain in their book, “Willpower,” the act of decision making is oddly tiring. The more important the decision feels the more exhausting it is. When it comes to buying gifts for family and friends, well, the level of import often feels insanely high. Even worse, the more decisions we make, the harder the next one becomes. Eventually, we hit the point where we start making really bad decisions, such as deciding to go to the store at the last minute: even for those of us who are comfortable and familiar with the Internet, going to a bricks-and-mortar store often remains a natural and reflexive action no matter how utterly crazy the experience actually is. Worst of all: we don’t even realize how bad our decisions are becoming; all we know is that everyone around us is simply getting more and more unreasonable and the information we’re looking at more and more poorly written. Well, at least it appears that way and will only get worse when you’re experiencing decision fatigue. When our brains get tired, they start taking shortcuts, such as reverting to non-decisions such as “I’ll deal with it later,” or reckless ones such as buying our kids that “Build a killer robot” kit, complete with working death ray and nuclear reactor.

When it comes to buying presents, this once a year experience, nightmarish though it may be, is ultimately not all that big a deal. Sure, it may feel that way at the time, but ultimately it generally works out, albeit with the occasional bizarrely ugly sweater or killer robot along the way. In a business environment, however, this sort of decision fatigue can be both subtle and costly.

It turns out that there are two types of decisions that are particularly difficult. Coincidentally, they are also the types of decisions that arise quite frequently in businesses, at least those that involve more than one person. These two types of decisions are those involving compromise or negotiation and those involving innovation and trying out new ideas or ways of doing things.

The fact is, compromise and negotiation are relatively rare skills in the animal world. Outside of Tom and Jerry, I’ve never seen a cat negotiate with a mouse. When dogs and cats compromise, it usually involves one of them running up a tree (lest there be any confusion, it’s usually the cat). Even for people, compromise is surprisingly difficult at the best of times, not just when the old Christmas spirit is sapping our self-control.

Now, I am often told that compromise and negotiation is something that certainly managers and salesmen need to do, but what about everyone else? How much compromise and negotiation really takes place in an office? Quite a lot. Brainstorming, problem solving, group discussions all involve compromise and negotiation. So does simply dealing with life in the world of cubicles. When everyone is suffering from decision fatigue, it becomes much harder to work with other people. Little things become major irritants simply because it’s that much harder to shut them out.

Innovation and trying out new ideas run into trouble for much the same reasons. There is a much greater tendency to let problems fester or to accept those natural and reflexive solutions, the solutions that we don’t really like but which are familiar and oddly comfortable despite the actual unpleasantness they bring. In other words, the functional equivalent of going to a large department store, tired and grumpy children in tow, on December 23^rd. At least in that case you get to join all the other people who are doing the same thing.

Fundamentally, new ideas are particularly difficult to accept when we’re suffering from decision fatigue. Meetings to address what should be simple problems can drag on for hours and, at the end, no one can actually make a decision. This only increases the frustration level.

So what can be done to avoid these problems?

As many an endurance athlete has told me, “Eat before you’re hungry, drink before you’re thirsty.” In other words, don’t wait until you’re feeling grouchy and out-of-sorts to get a healthy snack (or even an unhealthy snack, though the benefit doesn’t last nearly as long). If you wait, you’re already making bad decisions and it can take a long time to get your brain back on track. Athletes who wait too long to eat or drink suffer from rapid performance collapse, and getting hit with decision fatigue is very similar. The major difference is that an endurance athlete whose performance collapses knows it. With decision fatigue, we don’t always realize just how drained we are until the next day when we ask ourselves, “How could I have been so stupid?”

Next, take breaks. They don’t have to be long, but getting out of the office for a few minutes to take a walk or get a snack can do wonders to replenish our mental energy before we start making bad decisions.

As the old adage goes, make haste slowly. If you do have to make a major decision, sleep on it. Make it first thing in the morning when you’re fresh, not at the end of the day. If you’re running a meeting, separate any decision making from the rest of the meeting. Take a long break before making any decisions or, again, if possible wait until the next day. Finally, recognize that everyone is always a little distracted at this time of year. Take that into account in your planning. It’s a lot more productive to build a little extra time into the schedule than to have to go back and fix bad decisions.

Making good decisions and getting along with our coworkers can be hard enough at the best of times. Don’t let the holiday spirit make it harder.

Don’t Just Do Something, Stand There!

I recently had the CEO of a certain business very proudly tell me that she was so busy looking for clients and helping her staff deal with the economic crisis that she didn’t even have time to sleep. Was she serious? Yes, she was. Were things actually working out for the business? That was less clear, however it didn’t matter. They were Taking Action, and that’s what really counted.

When we’re feeling stressed, the instinctive response is to take action. Taking action feels good; it provides an outlet for our energy and a feeling of accomplishment. It just may not actually be useful. Sometimes it really is better to follow the advice of the old joke, “don’t just do something, stand there!” After all, if you take the wrong action too frequently, you may well find yourself without the time, money, or energy to take the right actions.

Now, it’s certainly true that sometimes the toughest problem is just to get started. It’s sometimes the case that taking some action is better than taking no action at all. However, it does help if the actions being taken are those that have at least some chance of moving the business forward. It helps even more if the CEO can clearly evaluate the success or failure of each action and adjust course as necessary. That’s hard to do when you aren’t sleeping.

A lack of sleep leads to more than just a desire for an extra cup, or ten, of coffee. There is a reason why athletes want a good night’s sleep before a big game and why legendary investor Jesse Livermore stated that one his secrets of success on the stock market was being well rested. Lack of sleep interferes with motivation, judgment, and planning. It makes one more reactive, less able to stop and look before leaping. Worst of all, lack of sleep very quickly degrades a CEO’s ability to recognize a losing strategy and replace it with one that might work.

As anyone who has taken a first aid class recently will recall, the first thing you need to do in an emergency is evaluate the situation. That’s difficult to do when sleepy. Part of that evaluation involves determining how quickly you need to act. Even if there’s a wall of flame rushing toward you, a few seconds of thought can still make the difference between life and death: caught in a massive forest fire, firefighter Wagner Dodge stopped and thought. He survived the fire while those around him were engulfed. Wagner Dodge had only seconds to come up with an innovative solution to his problem. The good news: he did. The bad news: he had never developed strong bonds of trust and loyalty with his team. Under pressure, they ignored him and perished in the flames.

Today, many businesses are still facing the financial equivalent of that wall of flames. Instead of stopping and thinking, they are leaping into action. In many cases, those actions are not working out so well. The CEO who isn’t sleeping isn’t helping her company or herself. She is, however, giving herself the opportunity to undermine her own credibility with her staff. The longer that goes on, the more likely they’ll give up on her at just the wrong moment.

So what should a CEO do?

• Build up a reservoir of trust and reinforce it daily. Help employees understand your decisions. Invite employee feedback, ideas, and suggestions.
• Build and maintain loyalty: this is the worst time to cut employee benefits or have an opaque layoff policy. As demonstrated by IBM’s Tom Watson or HP’s Hewlett and Packard, building employee loyalty makes a tremendous difference in tough times. Without it, they won’t follow you when you most need them.
• Don’t just react to the crisis. Stop and think. Brainstorm solutions with others. Find someone who will give you unbiased feedback. Take full advantage of the eyes, ears, and brains around you.
• Take care of yourself. Exercise and sleep are critical to maintaining perspective and functioning effectively under pressure. Despite the failing equipment around them, even the Apollo 13 astronauts took the time to sleep before attempting their return to Earth.
• Anticipate success. Never pass uncertainty down to your team members.

Many companies will survive the current economic tsunami. Fewer will prosper as the economy turns around. It will be those who know when to stand there before they act who will be in the second group.

Click here for a printable version.

Right To Midnight

“Left or right?”

“Right to Midnight.”

I had this conversation recently with my 3.5 year old son. We were in the car, and he had just dropped his favorite stuffed animal, a black cat named Midnight. He couldn’t reach it, and I was feeling around trying to find it for him, while he kept telling me I was near Midnight. When I finally tried asking him if I should move my hand left or right, his response was that I should move my hand, “right to Midnight.”

Now the fact is, a 3.5 year old doesn’t really understand that I don’t know what he knows: after all, he can see my hand and the cat, therefore I should know which way to move. This sort of thing is not at all unusual with young children. For the most part, it’s generally pretty funny.

It’s much less funny when senior management is in the role of the 3.5 year old, and the employees or customers are trying to figure out what is going on. Young children haven’t yet learned to consider other perspectives; management, on the other hand, doesn’t have that excuse.

Many people are familiar with companies that put out products with incomprehensible interfaces or unreadable documentation, and then become highly irate when the customers complain that they can’t figure out how to use the product. I worked with one high tech company where the CEO and engineering team routinely described their customers, primarily research scientists, as a bunch of incompetent idiots. They simply could not understand why their customers could not understand how to use the product. After all, the CEO and the engineers understood it.

Fortunately, very few people are going to argue that a company needs to get input from its customers and involve them in the design process. After all, that’s the best way to make sure you’re giving them something that they’ll be happy to spend money on. The real problem arises when the company’s internal communications are lacking. It is, sadly, not at all unusual for management and engineering, or engineering and sales, or any other combination of departments to be talking past each other. The groups are nominally all working for the same company, but none are capable of recognizing that the others don’t know what they know or cannot imagine that different groups within the company have different, equally valid, priorities.

Engineers, for example, are most concerned with building elegant, effective solutions to problems. Salesmen want to sell product. Documentation wants to describe what the product does. Customer support wants to help the customer actually use the product. Managers are trying to meet deadlines and generate revenue for the company. It would seem that everyone is on the same page. The reality, though, is far different. The engineer’s elegant solution may be brilliant, but impractical: for example the engineer who suggested driving bolts into the side of my house to hold up a sunshade for an afternoon. While that would have solved the immediate problem, it was just a bit of overkill and could easily have caused other problems down the road. Salesmen may promise features that engineering can’t implement or management, in an effort to close a deal, might set overly aggressive deadlines. A case in point occurred in one company I dealt with, when the CEO turned to the VP of Engineering and asked when the product would be ready to ship.

“September 1^st,” said the VP.

The CEO turned back to the phone and said, “We’ll have it for you on July 15^th.”

The CEO simply could not understand why engineering couldn’t have the product done by July 15^th, and the VP of Engineering simply could not understand why the CEO couldn’t accept September 1^st. The net result was that the product ended up shipping on October 1^st, delayed by a constant series of unmeetable deadlines.

When I’m telling this story, someone always says to me that the two people simply needed to communicate better. True, but not very useful. If it were simple, they would have done it. Under the pressure to get a product out the door, each one forgot to stop and get the full picture. Their frames of reference narrowed to the point where they could not imagine any other answer than the one they had locked onto. Whether two people or ten people are involved, it’s important to stop and ask four critical questions:

1.      What do I know that they do not know?

2.      What do they know that I do not know?

3.      Do I actually have enough information to make a decision?

4.      Are we really all on the same page?

Taking the other person’s perspective can pay off in a big way. What’s stopping you?

Yankee Swap Rorschach

The holidays are the season for Yankee Swaps. Now, a Yankee Swap would seem to be a fairly simple and straightforward activity: each person either chooses a wrapped gift or steals an opened gift from someone else. This latter activity can, of course, trigger a chain reaction, but that’s part of the fun. At the end, everyone feels like they had at least some measure of control over the outcome. One would think it difficult, if not impossible, to mess up a Yankee Swap.

However, all things are possible. In this case, one company held a Yankee Swap with incredibly detailed and complicated rules which had as its most salient feature that no gifts were opened until the very end. In other words, the experience was transformed into the equivalent of a very slow grab bag: a long, frustrating, totally random process at the end of which people felt that they had no control over the outcome. Ironically, the most common complaint from employees at this company is that many of the rules are complex, time consuming, and leave them feeling like they have very little control over how they get their work done.

Now, a Yankee Swap is a pretty insignificant event, little more than an amusing party game. However, how a business goes about designing a small process says a lot about how it goes about designing larger, more significant processes: process design is strongly influenced by institutional habits and beliefs. With a small process, it’s easy to see the results of that belief in action because the entire event can be seen at one time; with larger processes, cause and effect may be separated by weeks or months, and the process is often so big that no one ever views it as a whole. The company ends up wondering why their results are poor, but can’t figure out the reasons. Those small processes can provide valuable insights into the company’s methodology and assumptions; recognizing consistent causes of small problems can enable you to avoid large ones. Ultimately, more important than improving one process is improving how the company designs all its processes.

In designing a process, it helps to clearly understand what you are trying to accomplish. Why did this particular company choose to redesign the Yankee Swap? Was there an actual problem that someone was trying to solve? Clearly, someone felt a need to come up with something, although their motives are impossible to fathom. As a result, they got a process that rather missed the point, but did end up reflective of the organization as a whole. However, it’s generally more successful to focus on results:

·        Clearly define the objective. If the objective is to solve a problem, take the time to look at the symptoms and consider what they mean. When do they come up? Under what circumstances? Remember, the symptoms are not the problem, they’re just the symptoms. Generate a list of hypotheses and then test them to see if they lead to the observed symptoms. Solving the wrong problem will generally make things worse, not better.

·        Describe what a successful outcome will look like. What will have changed? What behaviors will be different? Make this concrete. If success is, “people will have more fun,” how will you know? If the picture isn’t clear, identify the questions you need to answer to bring clarity. This may be an iterative process.

·        Identify what you can change and what you can’t. You probably can’t change the economy, but you can change how you deal with it. Tom Watson Sr., founder of IBM, used the Great Depression as an opportunity to build up a highly trained, extremely loyal workforce and a stockpile of equipment. When WWII started, IBM was in an excellent position to capitalize on the reawakening economy. If everything falls into the “can’t change” category, you need to revisit your goal or problem formulation.

·        Brainstorm possible solutions or approaches. Record ideas and do not evaluate any of them until you have a significant number of possibilities. Don’t worry if some ideas are silly or off-the-wall: innovative solutions come from the most unlikely sources.

·        Will your solutions really get you where you want to go? Do research. Don’t rely on opinion and conjecture.

·        Define your action steps.

·        Execute and evaluate. Did it work? If not, check your problem formulation and try again.

If you’re not getting the results you want, what steps are you missing?

Curse of the Half-Empty Glass

“What was the primary means of motivation in those days?”

“Fear.”

— Carl Reiner and Mel Brooks, The Two Thousand Year Old Man

For the 2000 year old man, fear may have been a very effective motivator: when he saw a lion, he was motivated to run the other way. That, in a nutshell, is the problem with fear. Fear doesn’t make someone move toward safety; it makes them move away from danger. Same thing? Not really. In jujitsu, pain can be used to invoke a fear of injury. Someone experiencing that pain, and that fear, will move away from it, even if moving away means running full tilt into the nearest tree.

In business, the same phenomenon occurs. Faced with an unexpected problem or setback, the most common response is to highlight the threat to the organization and all the terrible things that will happen if the threat is not immediately countered. This practice of attempting to motivate people to work harder through fear – fear of competition, loss of market share, job loss, company going out of business, and so forth – may encourage harder work, but not necessarily more effective work. In the business environment, there are a lot of trees.

While fear gets the adrenaline flowing, it also narrows focus, reduces creativity, and makes it harder for people to recognize and change a losing strategy. This would be fine, except that what is actually needed in most situations is a creative solution, the ability to accurately assess whether or not a strategy is working, and the ability to quickly discard failing strategies. Avoiding premature decision making, no easy task at the best of times, only becomes more difficult. As we all learned in grade school, in the event of a fire, don’t rush for the door: proceed slowly and avoid panic. The same is true in business: rushing to a decision is almost guaranteed to lead to a bad decision.

So given that the business needs to get employees focused and energized to meet a potential challenge, how should it go about doing that?

The key is to recognize that the glass in not half empty. It’s half full. That makes a difference: instead of focusing on what you lack, focus on what you have going for you. Instead of fear, instill an atmosphere of optimism. There are several steps to accomplishing this:

1. Start by defining success. What does it look like? What will your business have accomplished in order to have been successful? Communicate that in a few brief, vibrant, sentences. If you don’t know where you’re going, you can waste a lot of time not getting there.
2. Lay out a set of goals that will make the business successful. Include what you’ll be doing as well as what you expect others to do.
3. Remind employees of previous challenges that they’ve successfully overcome. Emphasize the positive: how teams pulled together, how individuals stepped up to the plate, and so forth.
4. Recognize that roadblocks will appear: don’t assume everything will go perfectly. The competition may do something unexpected. A critical employee may get the flu. A storm may disrupt travel or power. Make sure you’ve allowed time to deal with the unexpected so that it doesn’t derail you.
5. Present energizing images to use when bad news strikes or setbacks occur: a cyclist passed by an opponent can imagine a rubber band attached to his opponent’s back. The rubber band pulls him faster and faster until he passes said opponent. Come up with the equivalent for your business. Repeat it frequently. If you can’t keep a straight face, find a different image.
6. Take the time to brainstorm different solutions to the problems you are facing. Evaluate what you come up with and make sure it will get you to that success state. Rushing off down the wrong path wastes valuable time and, even more important, drains enthusiasm.
7. Periodically review progress and show people how far they’ve come. Pilots may care more about the runway ahead than the runway behind them, but everyone else is motivated more by how much they’ve accomplished rather than being constantly reminded of how much more there is to do.
8. Celebrate successes. Short-term reminders increase the sense of progress and make people feel appreciated.

Half empty or half full. A fearful team or an enthusiastic, creative team. It’s your choice.