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Opposites Attract? Or, Hang Out With Like-Minded? From Differences To Mistakes – part I

English: Protons and electrons are attracted t...

English: Protons and electrons are attracted to each other because they have opposite charges. (Photo credit: Wikipedia)

So, which is true?  I incline to go with the like-mindedness.  Even when opposites attract, the opposites are usually manifested in the area of temperament, rather than how people think and what they value.  We seek out those whose opinions are similar to ours; we read or listen to news outlets that closely reflect what we believe (if not exclusively, certainly most of the time), and our friends are by and large similar to us.  Depending on your perspective, Margaret Heffernan says that we behave so because we are either lazy or efficient.  (See TED and also a recent NPR’s TED Radio Hour.)  Otherwise, it takes an enormous amount of time and effort to forge a relationship with someone who is wholly unlike us.  Indeed, however we define diversity, we still tend to seek out those who think like us, be they different in cultural background, race, gender, age, life styles, etc.

Within organizations, Ms. Heffernan found in her data that 85% participants admitted that they were not comfortable raising issues they believed would lose.  In other words, people had decided, a priori, what the prevailing opinions or choices would be.  How would we ever weigh truly different opinions and proposals in such an environment?  We delude ourselves to think that it’d be easier to go along with the “majority’s” ideas or sentiment.  After all, constantly attempting to second-guess what others, especially your bosses, think and want drains energy too.  We implicitly operate based on “there is one best way, or one right way.”

Ms. Heffernan started her TED presentation by telling the story of two diametrically different doctors, a married couple, Alice Stewart and George Neal.  Stewart’s findings linking X-ray exposure and childhood cancer in the 1950s eventually lead to the disuse of X-ray examinations on pregnant women, albeit 25 years later.  Changes, even in the face of evidence, don’t come easily.  What Heffernan really wanted to drive home, though, is the point that being opposites or having conflict ultimately leads to progress.  Alice and George differed in treating patients and approaching research.  Neal preferred numbers to people and Stewart connected with patients easily.  The couple did not reside in an echo chamber.  Neal once said, “My job is to prove her [the wife] wrong.”  “It was only by not being able to prove that she was wrong that George could give Alice the confidence she needed to know that she was right.”  A beautiful paradox.

However, trying to have several such relationships, especially in today’s workplace, could be really daunting.  Who has that kind of time and energy these days?  There may be naturally built-in “oppositions” in certain professions, especially the scientific and technical — or at least I hope so — but less so for the majority of organizations, including universities.

In Ms. Heffernan’s presentation, there was one point with which I had a quarrel.  She characterizes the oppositional nature of the relationship between Alice Stewart and George Neal as “conflict,” and conflicts are good.  I have posted about the “social functions of conflicts” before, and acknowledged that there are times conflicts produce positive outcomes.  However, I am wary of those people who seem to seek and create conflicts for the sake of conflicts.  More importantly, differences and disagreements do not automatically lead to conflicts.  Mr. Neal’s “opposition” was his attempt to provide different perspectives, and eventually validation, for his wife, and definitely not meant to cause conflicts all the time.

Different species...but coexist just fine.

Different species…but coexist just fine.

In a more contemporary example of different opinions, some of us had the privilege of watching for years “At The Movies,” where Robert Ebert and Gene Siskel, both eminent movie critics, sparred.  Ebert died last Thursday after a long battle against cancer.  When I stumbled upon the TED Radio Hour’s piece on differences and mistakes, I thought it was fortuitous so that I could write about “different ideas or opinions” in memory of Mr. Ebert.  A side bar:  Salon.com reprinted Mr. Ebert’s writing on facing death, titled, “I do not fear death.”  It’s a beautifully written essay, reflective, thoughtful, graceful, illuminating, and brave.

I will go into more detailed discussion on differences and mistakes next time.  Till then,

Staying Sane and Charging Ahead.

Direct Contact:  taso100@gmail.com

Is Honesty Necessary For Business Success?

Simple question, but not the answer.

What’s business success?  Loads of short-term profit?  Long-term survival?  Stability?  Innovation?  Constant growth?

In addition, the answer to the above question depends on the type of industry, the size of the organization, and the nature of the business operation.  Logically and naturally, we prefer dealing with honest people in business transactions.  Despite the Supreme Court’s decision, corporations aren’t people.  Otherwise, they couldn’t have continued to lie, cheat, and steal…whenever they can, and get away with it most of the time.

What prompted the above question came from some innocuous email exchanges between a B&B (bed and breakfast) host and me.  The incident provided yet another good illustration of how a true free market works best in a closed community.  In one of my previous posts, I used the example of a diamond market in Brooklyn.  This is a fairly closed system where buyers and wholesalers, often making millions in transactions, are all acquainted and connected.  Anyone harboring malfeasance would not last long in the business; warnings would spread like wildfires.  That’s as close to “perfect” information as one can get, a crucial condition for a free market to work efficiently.

In my own personal experience, this B&B host informed me that the road is closed from their property to the Grand Canyon North Rim.  Since there are not that many roads in that part of the country, one would have to drive north into Utah, head west and wind down south to the North Rim.  A little detour isn’t always going to deter us, but given the typical working American’s limited vacation time, we decided to devote a bloc of vacation to explore the North Rim at another time.

The B&B host wrote that she had to be honest even though it’s not their policy to turn customers away.  I asked, for future reference, how long the closure was likely to last, and she gave me a detailed description.  I concluded that because of her honesty, she’s “won” a traveler’s determination to use her place in the near future.  This, to me, is a win-win strategy, not for short-term but for longer-term.

Speaking of honesty and trust...would you trust this gang?!

Speaking of honesty and trust…would you trust this gang?!

She related a story about a fellow B&B owner’s “greedy” strategy.  Around 9/11/01, this particular B&B owner X, in her area, refused to give deposits back to travelers who couldn’t fly out to this destination, and convinced lodgers already at his place to stay on since they were kind of stuck.  So, the owner X raked in a nice profit on the back on 9/11 tragedy.  The surrounding B&B owners tried to persuade owner X to ease up on the scheme, to no avail.  The owner X closed down his operation within a year.

A simple story, but illuminating.  In a relatively closed community, not just the B&B owners in one area but also the very limited clientele favoring this particular setting, reputation is the biggest asset.  Easy internet access has elevated the importance of reputation for a business’ position, both for owners and customers.  In reading some of the 2013 guide books, domestic as well as foreign travel, many include and highlight TripAdvisor’s comments.  Not all comments are equal, though.  A general rule of thumb is that a 5* based on only two reviewers isn’t as convincing as a 4.7* based on 389 reviewers.  I am struck by the new terrain many businesses have to learn to negotiate these days.  In such cases, competition definitely favors the consumers, and helps overall business quality.

Do you have similar stories to share?

Till next time,

Staying Sane and Charging Ahead.

Direct Contact:  taso100@gmail.com

Are Managers Making Themselves Ever More Irrelevant?

Here is an interesting personnel practice at a science-oriented organization: The names of candidates for senior promotions, and the positions where they are under consideration to be promoted into, are made known to members of the public.  The suspense goes on for months following this outside disclosure.  In the end, at least 2/3 of the people on the list will end up feeling disappointed, maybe bitter or angry, and possibly ready to look for another job.  While a process of thoughtful consideration and deliberation is necessary for promotion, the general tenor of this particular process is rather like jury deliberation in this country.  In fact, the jury process is almost the model which management in this institution tries to emulate.  By this I mean that the management has abdicated its decision-making responsibility.  Instead of exercising their judgment on their own people’s promotional eligibility – deciding whether the person is promoted or not – managers allow a much more complicated and cumbersome process to choose who to be promoted.  And managers have also, ever so cleverly, informed key people outside the institution which of their best employees are now ripe for recruitment.

English: Graphic for Seven Management and Plan...

English: Graphic for Seven Management and Planning Tools. (Photo credit: Wikipedia)

Jury process is designed to determine guilty or not guilty.  Management concerns nuanced matters of human behavior and emotion.  Management’s considerations require more wisdom and insight than due process.  Due process will never eliminate subjective judgment, especially not in matters of human behavior and human relationships.  Management has evolved to processes that protect itself against lawsuits, complaints or grievances.  But in so doing, management has abandoned decision power in domains that require wisdom.  As a result, managers focus their power on matters that devoid of human touch, such as abstract rules and regulations.  But in actuality, managers are forced to pay attention to the full spectrum of behaviors exhibited by their direct reports:  messy problems, minor violations, thoughtful analyses, to demonstrations of superior performance. And when managers can’t find “how to make a judgment call” in their manual, they feel uncertain and often end up making good situations bad, and bad situations worse.

If managers keep surrendering to manuals, rules, regulations, or precedents, why do we not simply institute computer programs to make these decisions?

But having made all these complaints, I have to admit that due process as the ultimate arbiter is what society at large has been pushing for.  Our litigious practices have made all of us fearful of making decisions.

On the fifth hand, we need a much “wiser” organizational structure in which wisdom, track records of good judgment, empathy, integrity, and humility are part of promotional criteria.  But faced with the expectations that we measure these criteria, how do we use them?  I’ll keep thinking about these issues…if you have any suggestions, please share.

Till next week,

Staying Sane and Charging Ahead.

Direct Contact:  taso100@gmail.com

Let’s Turn Competition Upside Down

Does competition always have to be against an “opponent?”  When a person wants only to beat “the other,” or when a corporation only wants to gain on “the other,” it automatically leads to a win-loss outcome.  Competition is based on deficit thinking.  After the battle is won, then what?

Royndin Fríða, Blikur og Svanur - 5-mannafør D...

Royndin Fríða, Blikur og Svanur – 5-mannafør Dreingir – Rowing Competition in Vágur, Faroe Islands (Photo credit: Eileen Sandá)

I’ve said it before, and I’ll keep beating the drum:  Competition works best when the work involves routine, and the operation has a mechanical nature to it.  Hence, competition works well in the sports arena.  Yet, we keep using sports metaphors, and at our own peril:  Where human efforts involve thinking, aim for innovation, or strive for creativity, competition is often counterproductive.  It can sap people’s energy, force people to focus on the near-term horizon, or foster a secretive work environment which eviscerates talent.

Furthermore, when we are in a competitive mode, comparing ourselves against another person or entity, we tend to copy the superficial.  That won’t get far for the outcomes we desire.  This is not to argue against learning from others.  But if learning is the true purpose, then that process would look profoundly different from what competition would offer.  For a starter, one needs to learn how the others think and process.

When I was teaching undergraduates at Wharton, PowerPoint was gaining popularity.  Any self-respecting student of a top-tier business school had to use it to demonstrate that s/he was with it.  But it made presentations, however flashy, boring after a while.  So, one semester, I said something like this:  This is a very competitive environment; no one wants to miss what others are doing.  So, everyone uses PowerPoint for presentation.  In such an environment, how do you make sure that your piece stands out?  (The buzz phrase was, of course, “what is your competitive advantage.”)  For that semester’s final project, group presentation weighted heavily in the final grade.  I hoped that some of them heard my words, but was totally unprepared for the outcome.  All but one group used PowerPoint, and that group used the tool rather tangentially.  Every group went out of its way to engage the audience, to showcase their unique talents.  I was utterly moved.  The students were well entertained, and they learned a lot, through the process and from each other.  As a result, I bucked the norm of grading them on a curve; more than half of the members of the class received a well deserved “A.”

Fireworks

Fireworks (Photo credit: Rampant.Gaffer)

I was really glad that the last classroom teaching of my teaching career ended with a big bang!

We sorely need win-win stories.  Do you have some to share?

I am on travel, visiting dear old friends and relatives.  I will resume this space on 9/23.  Till then,

Staying Sane and Charging Ahead.

Direct Contact:  taso100@gmail.com

copyright taso100 © 2010 – 2015 all rights reserved: no photos or content may be reproduced without prior written consent

What Do We Value? What Moves Society Forward?

I seem to be in the mood lately to reflect on sociological matters.  Yes, today’s entry has two foci on sociological aspects of our economy:  one on Facebook, and the other, prompted by an NPR interview with the CEO of GE’s Global Growth and Operation, on a perennial well-chewed topic, “competition.”

“Facebook” puzzles me.  I have an account that was totally inactive for a couple of years, and I only recently breathed some life into it for reasons not worthy of the space here.  Suffice it to say that I am now present on it but still not profoundly active.  I have a few friends who have similar relationships with this social (inter)network.  I also know a couple of friends with very busy daily (several times a day) Facebook activities; one exercises them with reservations and the other with enthusiasm.  The rest of my friends, not of the current young generation, are cautious or even weary of Facebook.  My son can take it or leave it, as can most of his (male) pals.  So, even in my limited social circle, attitudes toward Facebook range widely.

fused mass with two heads

But the bottom line is, what kind of product does Facebook sell?  What true innovation(s) has Facebook provided to our economy, society, and humanity? Yes, it offers a convenient and expansive way for people to stay in touch, but does convenience make it worthy of the estimated market capitalization value of $100 billion when its stock becomes available?  I understand that the information age offers very different “products;” but Google I can grasp, eBay’s value I can almost see, and so on.  Why use “PayPal” other than for convenience?  Yes, I am old-fashioned; I would be extremely reluctant to park my credit card information with every online outfit.  But back to Facebook, its only viable sources of income are advertising and harvesting the personal data of its users.  With all the information technologies out there vying for the exhaustible pool of advertisers, these newly arrived companies better had start thinking about different business models, lest another bubble bursts and drags down our economy.

Yes, the young generation baffles me too; why are they so willing to let others reap enormous profits by harvesting their personal data?  What do they get in return beside the 2,000+ “friends” with whom to exchange mostly unimportant stories and occasional interesting information?  Talking about have’s and have-not’s; here is one huge gap staring at us.  I don’t get Facebook nor anything associated with it.

On competition.  I don’t necessarily trust any CEO’s words, be (s)he CEO of GE or GM.  But part of what Mr. Rice (of GE) said appealed to me:  “…too many people in the United States and other places think that job creation is a zero-sum game. By creating a job in China, you’re creating one less job in the United States.” His punch line is that foreign operations can help stimulate domestic economy.  Whether GE actually practices in this spirit, I cannot tell, but I do know that the zero-sum mentality can only succeed in the short term, and only for certain types of operations.  It’s not that competition is inherently bad – I’ve discussed this before (Pfeffer and Sutton’s “acting on knowledge” and Pink’s on motivation, links here) – but both individuals and collectives need to understand when and where to engage in competition, and know when not to be competitive.

any chance to burrow

That was one point I left out in my last entry on the critical investigatory news on Apple.  Apple is the current leader in its category (what is it?), and the darling of many consumers; a good portion of Apple users behave like fans.  So, Apple would be in a good position to make inroads in “better manufacturing practices” if it chose to; it also can afford to do so.  Its competitive mode leads to its obsession with secrecy, which in turn partially contributes to its blind spots for abuses in overseas manufacturing practices.

When Steve Jobs was alive, he could have made a really big splash with a different kind of visionary leadership; he could have evoked his conscience to become a “leader for humanity,” as well as an unmatched business leader, and pushed some reforms in the overseas operations.  Instead, he also fell into the “either/or” trap:  If we don’t go with the existing cheap and flexible labor, we’d lose.  Given Jobs’ reputed brilliancy, I did hope that he could have surpassed the mundane and found a third alternative to the usual business practice.  One possibility might be to invest in educating next generation skilled workers? Some internship and exchange programs with the Chinese manufacturers?  I am not brilliant enough to offer the third alternative, but I expect others who are much smarter than I am could do better.  So, in the end, he was an above average business thinker, but not really a great leader.

sold it!

Interesting times with interesting problems.  Let’s work on creating interesting solutions.  Till we find them,

Staying Sane and Charging Ahead.

Direct Contact:  taso100@gmail.com

copyright taso100 © 2010 – 2015 all rights reserved: no photos or content may be reproduced without prior written consent

Being Quirky May Lead To Success…But Success Is NOT Defined By Quirkiness: Reflection on Steve Jobs’s legacy

“Quirky” might imply, or be a substitute for, “obnoxious,” “arrogant,” “insensitive,” “thoughtful,” “visionary” or “genius.”  The adjective can be uplifting or pejorative; success is not likely to be defined by one characteristic, however strong it may be.  The stories associated with Steve Jobs’s management style, principles and philosophy certainly can provide volumes for management students for years to come.  After his recent passing, many of these stories resurfaced:  He could be short with colleagues; at times, he’d mercilessly shred someone’s ideas; he micromanaged; he made mistakes; he could be arrogant, and on and on.  And he had awesomely uncanny visions which over the years broke ground in computer technology, and in marketing strategy…again, and again, and again.

promising sign?

Every so often, someone like Jobs renders management theories, models, principles, or lessons weak, useless, or pointless.  That’s fine; keep some of us who study organizations in the humble lane longer.  But most of these mavericks are exceptions rather than the norm. (And by the way, one does not ‘aim to be’ a maverick, nor does one talk about oneself as ‘being a’ maverick!) Does that mean we cannot draw lessons from them?  Of course, we can, with caution!  If we don’t have the substance with which to make music like Mozart, mimicking his “arrogant” posturing is mere rudeness that wouldn’t make a shred of musical difference.  If we don’t have the innate ability to think outside of the box, like Nobel physicist Richard Feynman, ignoring all the bureaucratic reports on the Challenger disaster or bypassing interviewing management in NASA in the investigation of the Challenger disaster would merely be foolish.  But, owing to the key difference between being a genius and being merely rude, after Feynman famously demonstrated how the O-ring’s plasticity was compromised in freezing temperature, we thought, “of course!”  Steve Jobs was in that category of genius who not only asserted that he knew what he was doing, when his vision became reality we said, “but of course.”

Do we as the collective let geniuses get away with incivility?  We can preach that we shouldn’t, but in general, we often give perceived “stars” wide latitude.  If their ideas turn out to be right, we forgive them, but if wrong, then, we complain.

There are at least four aspects about Jobs’s approach that struck me as laudable:

  1. He thought globally.  He always envisioned computer technology that would be friendly for everyone, especially in education.  He wanted to make Apples available to every student.  Yet,
  2. he would not sacrifice the quality and aesthetics of the products.  So, none of the Apple products is moderately priced. It is not like Ford wanting every American to own an affordable car.  When the product is good, there will be buyers.
  3. He owned up his mistakes.  He might argue with colleagues about ideas, and he might throw his weight for his own ideas, but if others could present him a better one and prove his to be inferior, he would be the first to embrace the better ideas.  This is one major characteristic I do admire in him.  Few managers would ever admit making mistakes, especially openly.  Sometimes, when big corporations apologize, they rarely exhibit authenticity.
  4. This is the most important point:  He built PRODUCTS.  When Silicon Valley was white hot, many business owners would just build up their businesses to sell in order to make a profit.  Jobs’ response was (paraphrasing), “that’s sad, what did they produce?”  I think the financial market is the antithesis of making things.  They have made no contributions, none, to our understanding of how the world works.  Well, maybe they did, about the ugly side of human greed and stupidity.  But that’s not much of a contribution.  Apple products may not be breakthroughs like the telephone, telescope, automobile, airplane, etc., but the gestalt of “Apple” will make a chapter in the history. 

I think geniuses not only help us humans advance in our knowledge and creativity, they also highlight the innate paradoxes of human nature.  So, yes, I also give them wide latitude because they help me appreciate life and beauty.  That’s a big deal to me.  Keep searching for that beauty!

Staying Sane and Charging Ahead.

Direct Contact:  taso100@gmail.com

copyright taso100 © 2010 – 2015 all rights reserved: no photos or content may be reproduced without prior written consent

Managers And Business Students, Go Watch “Moneyball:” Lessons from a movie

I am so indifferent to baseball that my attitude won’t register on any scale.  Yet, I wanted to see “Moneyball,” the movie.  And I thoroughly and utterly enjoyed it, despite the baseball jargon that hurt my head.  This entry isn’t about reviewing the movie, plenty have already done so; this is a review of ideas/lessons drawn from the movie for management students of all stripes.

The premise of the movie is something I addressed before, based on the quote from Einstein:  “We cannot solve problems by the same kind of thinking we used when we created them.”  Oakland’s baseball team had a measly budget, yet was expected to compete against all other giants whose budgets were exponentially bigger.  The conventional wisdom was, and still is, the bigger the better.  When Oakland’s stars got scooped away, the team was anemic in both financial backing as well as talent.  What can the general manager (GM), Billy Beane, do?

The scene in the trailer that caught my attention months ago was this:  After losing to New York, and with their talents being lured away with millions in salary, Oakland’s GM was at the table surrounded by white senior citizens who were the team’s talent scouts, talking about potential stars, but not really seriously since they couldn’t afford it.  Mr. Beane had enough, and said something to the point that they couldn’t solve the problem using the same kind of thinking over and over again.

Just what Einstein said.  But none of the scouts got it.

By serendipity, Beane met his future assistant, a young fellow with a Yale undergraduate degree in economics, and he gave the GM a totally different way of looking at baseball business operation, one that’s based on statistics, factual data.  Some of you who have read my other posts know that I don’t give much daylight to stats and data per se; what matters is how you use the data.  Hence the 2nd major theme for me:  The data used for scouting potential players was the individual’s own track record, not the aggregate.  I’ve always said that stats can be useful, but their usefulness is limited because they inform us only about the aggregate patterns.  So, what this movie highlights for me is that when data about the individuals themselves becomes available, the information becomes much more pertinent.  Related, a key question raised by Mr. Beane that resonates with me is when he asked the scouts what winning looks like, their answers were all about the aggregate and the stars’ powers.  What Beane said instead, Who gets on base?

But that’s not how baseball operations are usually done.   The theme of the movie is about thinking outside of the box.  One of my arguments in my PhD dissertation is:  If you want to have a competitive advantage, you don’t try to copy what others in the same industry do.  You do study and understand your competitors, but you need to be different, profoundly and fundamentally different, to create your own distinctive advantage.

The final lesson for me is that people who are game changers threaten others in the industry, even though they may be regarded as heroes by outsiders.  That’s why the “strategic termite” approach, discussed two entries ago, by flying under the radar, is much less threatening while still effective; however, it would be unthinkable in the volatile baseball industry.

These are great ideas and lessons.  One other major lesson from the movie that I wouldn’t ever recommend concerns the routine trading of players; that’s just degrading to me.  But that theme alone is worthy of study and a lengthy article.  I am not getting into that; we are on a long overdue R&R in Canada.  More mini lessons next time.  Till then,

Staying Sane and Charging Ahead.

Direct Contact:  taso100@gmail.com

copyright taso100 © 2010 – 2015 all rights reserved: no photos or content may be reproduced without prior written consent

Win-Win, Win-Lose: which one would you prefer?

In today’s space, I’d like to go a bit deeper on competition, a sub-heading from last week’s knowing-doing gap.  This is a concept most Americans embrace without question; it is so taken for granted in this society that most may even consider it as part of human nature.  But there are many other cultures that emphasize cooperation much more (and therefore feel cooperation is natural), enough so that the notion that competition is part of human nature is suspect.

Perhaps a more pertinent framework is to understand when and where to promote competition.   Research has shown that by and large, competition within an organization, while benefitting a few individuals, is unhealthy for overall organizational performance.  However, between organizations, competition can serve as a catalyst for better performance.  A further distinction can be made on the basis of the nature of the task:  Competition can foster higher efficiency for routine tasks within an organization, but should not be the driver for work that is intellectual, innovative, and creative.

We see evidence of internal organizational competitions everywhere:  “employee of the month,” sometimes with the best parking space reserved; ranking employees on forced performance curve, ranking units with “winners” and “losers;” awarding bonuses to only certain people who “won” some accolades.  The list goes one.  And they are all, ALL, based on zero-sum games.  Such an approach might inspire and motivate a few people, especially those who eventually “win,” but the “costs” for those who don’t win can be enormous.  These costs include lower morale for the majority who lose, jealousy and bickering that can bring down overall productivity, turf struggles, etc.  What’s more, remember, winning isn’t the same as succeeding; one person’s reward does not translate into a good product that wins customers and customers’ loyalty.

I call the thinking behind competition typical of scarcity mode.

what’s happening?

This following example comes from the book “The Knowing-Doing Gap” that I summarized last time.  As the computer applications were growing in complexity, to the point where one person alone could not grasp it all, Microsoft tried to emphasize the importance of teamwork.  So, the company advocated sharing information, learning from each other, and working together.  Yet, it failed to implement what it preached; the reward system still favored each individual’s performance.  People might work hard, but they did not share.  And the “forced-curve, zero-sum” salary distribution system meant that helping coworkers to improve productivity may hurt your own raises.  So is it surprising that Microsoft is notorious in releasing bug-laden software?

I am not aware if there have been studies done on Apple’s approach to designing software, but it is widely believed that Apple’s programs are open code and that their products have far less bugs.  Setting aside the possibility that the growing Apple market share comes with a higher rate of bugs, many experts have argued that as a rule, open system for computer design is more effective than a closed system where proprietary information is heavily guarded.

I would say an openly cooperative operation is abundancy mode.

good friends…95lbs & 10lb…it can work

People who choose, or are forced to operate in, scarcity mode typically carry a more cynical attitude, are guarded about details of their work, and are suspicious of their colleagues’ performance.  Those who are comfortable with abundancy mode tend to view their environment in a more global manner, by structuring work in ways that can benefit the group, the unit, and the whole organization.  Recently, I found myself delayed at the airport, by more than one hour.  This isn’t rare these days, but what was rather unusual was that this was Southwest Airlines, which for the most part enjoys a reputation for fewer delays than other airlines, and usually with clear reason such as weather conditions.  At first, we were informed “someone took our airplane!” Later, we finally learned that the plane for another flight had mechanical problems, and the crew made a local decision to use another available plane, ours.  While that still left some customers a bit miffed, by and large, most of us shrugged off the delay and felt sympathetic with those on “our” plane who might have otherwise had to wait a lot longer.  Have you ever noticed that you rarely see an idle Southwest airplane on the tarmac? But often see idle planes bearing other airline logos?

balancing flavors, enhancing taste

Over the years I have heard from many individuals that they are very uncomfortable with external competition; their way of improving themselves is by “competing against” themselves.  They have some internal yardstick against which to measure their own performance and achievements.  But how does one compose this “yardstick?”  After all, all yardsticks are composites of performance levels accumulated by others.  But these “others” against whom one competes internally are not necessarily – and often aren’t – one’s colleagues or even contemporaries.  So, the individual’s gain, in terms of satisfaction and achievement, is not at others’ expense.

I contend that competing against colleagues is relatively easier to manage than competing against oneself.  When competing against others, once the result is in, your task is done…till the next one.  But competing against oneself can lead to a never-ending refinement and modification.  The extreme case is obsession with “perfection.”  How does one distinguish between aiming to be “professional,” “excellent,” and reaching that “perfect/close-to-perfect” product?  For example, at least in the academic world, if there aren’t deadlines, most of us could spend umpteen hours to finish a research project, or a paper to be published.  There are always more data to be collected, more time needed to polish models or equations, more rewrites, etc.  Many years ago, in collecting data for my dissertation, one of my designers said, “if I can ever design a perfect piece, I may as well die.”  So, one continuously walks the line between “professional standards,” “good enough,” and “just one more…”

Part of what I am trying to verbalize is that in abundancy mode, everyone improves without making anyone lose; while in scarcity mode, someone always loses, and therefore the whole improves little if at all.

working with the tree…creating interesting wall

Even at the inter-organizational level, where competition may work better for the organization, there are limits to its benefits.  Should the organization become obsessed with the competition, it would neglect its basic goal of achieving something: new product, new service, improvement … for its customers.  Again, let me stress that winning a competition isn’t necessarily the same as achieving success.  Toyota tends to have loyal customers; it’s not necessarily because their cars are cheaper, it’s because they have the reputation for consistently building quality cars.

One of the key questions in applying the Appreciative Inquiry process is asking the question:  What are you good for?  This is pertinent for both individuals and organizations.  The conventional approach of “what are you good at” only aims for skills development.  But once an organization ponders what it is good for, there is a higher purpose which offers room for more people to contribute, and a greater likelihood that their contributions result from playfulness.

working with leftovers…chocolate chiffon cake, green tea macha swiss buttercream, green tea jello (the only new creation), and whipped cream

So, next time, I will discuss the idea of playfulness within an organization, and for individuals.  Till then,

Staying Sane and Charging Ahead.

Direct Contact:  taso100@gmail.com

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Acting on Knowledge: Why is it so hard?

a big bridge

Jeffrey Pfeffer & Robert Sutton’s “The Knowing-Doing Gap:  How smart companies turn knowledge into action” is an easy-to-read book, like many of their other collaborative works.  This is not a conventional book review but rather my attempt to capture some important points and use them to launch some stories and reflections.

As the authors point out, given the plethora of business books published every year, and the high speed at which information is spread these days, no single organization is likely to possess any profound and unique knowledge about how to operate well.  Further, many organizations send their managers to business schools to get the latest “education,” or introduce the latest “knowledge” via hired consultants or in-house training programs.  Yet, how often do we hear about or read about successful organizational changes?  And when there are changes, why do they always occur with great difficulty?  And when people go to seminars or workshops, they return excited, motivated, and eager to try, but soon get stymied; why?

Reading Pfeffer and Sutton’s book can be a downer.  But, or perhaps because, most of you will recognize the problems described in the book.

a small bridge

Talk Instead of Act

There are, of course, many reasons for the lack of action.  For a starter, people prefer talking much more than doing, and often confuse lengthy or high-volume talking with actual action.  To put it crudely, talking is always easier, and often sexier, than the grunt work of doing.  What’s more, once we begin to actually take action, most organizations force themselves to keep track of the development of the actions, and that can be boring and tedious.  I suspect that this also underlies many failed “mergers & acquisitions;” (M&A) it is far more exciting to go through the negotiations and decision-making, but the actual execution of the merger once the deal is sealed is painstaking and laborious.

The big semi-government agency I worked for several years ago typified this phenomenon.  The managers did seem to respond to what I could bring to the organization; they always granted me time for interviews, but whenever action was needed, I felt like I was babysitting a bunch of 5-year olds.  It was ironic; they couldn’t sit still long enough to finish one major task.  They were either on travel or on their way to other “more important” meetings.  More talking!

History/Memory Can Inhibit

We often hear about “that’s the way it has always been done;” this becomes more insidious when history is remembered as the “good old days.”  This then translates into pressure for consistency.  People who want to push the envelope often are perceived as “trouble makers,” “not team players,” etc.  However, the converse isn’t symmetrical in that some troublemakers are genuinely so and some people are truly loners.  And by the way, loners aren’t always un-contributory; some tasks are more effectively and efficiently done by single persons.  The point is that it does take effort to gather new information, from both inside and outside the organization, and to weigh pro and cons for each action.  It is much easier to rely on routine.  Extending this trend of reasoning, we can see that a “strong culture” can be a double-edged sword.

Fear Stops Everything

small waterfalls constantly moving

What is really behind inaction?  Most often, fear and distrust.  Sometimes, this is a deliberate management technique.  For instance, there are managers who believe that if people are fearful of losing their jobs, or suffering from poor evaluation, they do as they are told.  There are CEOs who are praised by Wall Street for being “tough” and fearless of criticism, for taking decisive moves; this is usually in the context of downsizing or reorganization.

The belief that fear and distrust drives efficiency and productivity persists even though studies have shown the opposite.  When people are afraid, they avoid trying anything new, ignore common sense if it is likely to displease the bosses, and suppress information that would challenge the status quo.  They just hike along the known paths, rejecting new knowledge.

“Fear that might keep you from voicing your real thoughts is poison.  Almost nothing could be more detrimental to the well-being of the company…  Once an environment of fear takes over, it will lead to paralysis throughout the organization and cut off the flow of bad news from the periphery.”  — Andrew Grove of Intel.

To turn knowledge into action, one must be willing to attempt new ways of doing things. And that can lead to errors, which many organizations these days do not tolerate.  Yet, in the past – those glorious days when the US led the world’s technologies – Americans were encouraged to explore.  Many fabulous technologies, inventions, and creative solutions were gained through “trial and error,” through wandering.  Nowadays, we seem to have lost our appetite for “errors.”  We talk about trying something new, maybe even allow a bit of experimentation.  But mistakes?  No!    Most of our large R&D organizations these days are weighed down by compliance requirements imposed by government and society at large.  At this rate, it will take only a decade or two before China assumes the role of global technology leadership.

The authors give a few examples of organizations that managed to lessen fear even during difficult times such as laying off people/downsizing/re-engineering.  The principles are:  prediction, understanding, control, and compassion.  The enlightened examples are organizations that actually let people know, ahead of schedule, who’s being laid off.  When people know, they can plan, and hence, have some control over their future.  This also allows proper good-byes and regrouping for those who stay on.  These organizations explained the “real” reasons that some people had to go.  With decent severance pay, the exit process can be managed compassionately and smoothly.  In fact, in one cited example the company actually gained productivity during downsizing.  It can be done, just not easily.

I spent more space here because I think this is such a pervasive force in our lives, both within and outside of organizations, that we should pay more attention to it.

children are fearless and active…almost always

Competition Is Particularly Destructive Within An Organization

American society is seemingly addicted to the notion that competition is good for both individual and organizational performance.  Yes, it can be for such facets as individual marathons or other sports contests, or organizational tasks that emphasize procedural uniformity, or companies competing against each other within the industry.  But within an organization, competition often turns colleagues into enemies and units into antagonistic entities, and brings down productivity and creativity for the whole organization.  Even in the entrepreneurial arena, the myth is that successful entrepreneurs are competitive loners out charting new territory, when the truth is that most entrepreneurs have to rely on a vast and extensive network of friends, family, colleagues, other business people and entities as they blaze their starting path.  To nurture their baby enterprises they need to expand their networks even more.  Where is the loner?  This is one of my pet peeves and it was also the premise of my PhD dissertation.  As the pressure of globalization increases, the need for collaboration, instead of competition, is even more acute.

The authors cite a book, “No Contest:  The case against competition,” by Alfie Kohn, in which an exhaustive review of research on the impact of competition provides strong evidence of strong performance in the absence of competition.  Kohn emphasizes that “success and competition are not at all the same thing.  Competition need never enter the picture in order for skills to be mastered and displayed, goals set and met.”  He concludes, “superior performance not only does not require competition; it usually seems to require its absence.”  In fact, research does suggest competition inhibits learning and creativity.  When put in competitive conditions, people tend to focus on others rather than on the task at hand, on third party’s reactions rather than on how best they can accomplish their work.

Another prevalent myth in this country is the sports analogy to business.  Sports usually involve physical performance while business activities require complex intellectual maneuvering and novel undertaking.  I am not saying that one is better or the other is inferior; I am simply saying that these two arenas are too different to be used comparatively.

water catching a bit of rainbow

You Get What You Measure

When measurement focuses only on outcomes, such as sales volume, amount of production, publications, etc., it ensures that people focus on short-term results. When measurement gets too complex, people lose track of what is truly important:   “When everything is important, then, nothing is.”   People are not economic units or atomistic parts of an organization.  They are social creatures who interact with each other, and it is within these interdependent relationships that work gets done.  Pfeffer and Sutton stress the importance of measuring process instead of only outcome.

The Men’s Wearhouse offers a perfect example of measuring that which the company really focuses on:  “We are in the people business, not in the suit business.”  Part of the organizational focus is on developing their employees; they do not fire employees for first-time shoplifting, sometimes not even the second time.  By giving employees a second chance, the company inspires gratitude and loyalty.  In terms of specific measurement, the company stresses process, such as team development.  How do they measure it?  By focusing the total sales volume of the store, rather than individual’s record.  In fact, they have fired individual stars who refused to help other employees on the floor.

tarr bridge, a wise old bridge (in uk)…about 3,000 years old

Let me now give a quick summary of the recommendations the authors offer:

  1. Really grasp the philosophy of the organization; why is more important than how.  Just copying what others do usually does not lead to desired results.
  2. Understand that knowing comes from doing and from teaching others how.  This is in contrast to what the majority of organizations typically do, writing surveys, studies, reports, lists of recommendations…and forgetting the actual doing.
  3. Embrace accomplishment, not making fancy and elegant strategic plans or concepts.
  4. Accept mistakes as part of life.  Mistakes are unavoidable, especially when one tries on new ideas.  What are the organizations’ responses to mistakes?
  5. Drive out fear, which is the major enemy of knowing-doing gap.
  6. Recognize that competition brings more destruction than contribution, and be mindful when using analogy.
  7. Measure what really matters (it may help to know the organization’s philosophy!), pay attention to behavior that turns knowledge into action.
  8. Recognize that what top managers do, how they spend their time, and how they allocate resources, send powerful signals.

Knowing some of these causes is important.  However, knowing why there is a knowing-doing gap would get you nowhere…till you DO.  Throughout this book, the notion that really sticks in my mind is:  Let doing lead to knowledge.  Once you DO, you will learn.  Extending this notion, managers actually should consult people on the ground who are working the products, establishing relationships with customers, possessing the complete knowledge of how things are done.  Not the other way around.

books are to be used to make bridges

As I wrote this piece it became much longer than I intended, and there were several places where I wanted to say more.   At this point, I cannot tell which place I will go next week; the unknown can be exciting, yes?  Till then, though,

Staying Sane and Charging Ahead.

Direct Contact:  taso100@gmail.com

copyright taso100 © 2010 – 2015 all rights reserved: no photos or content may be reproduced without prior written consent