Bottom-Up management lessons from no-collar workers

In this latest HBSWK piece, Bain’s talking customer experience. Not long ago, BCG was talking about open source-style collaboration. Naturally, we talk about the vital importance of strategic delivery too, having lived it. I clearly see many ways in which the no-collar working style — natural collaboration, little hierarchy, relationships built on trust, smooth flow of information — benefits performance from the bottom-up, in organizational ways that top-down management styles can’t.

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Categorized as Culture

500 years later, da Vinci’s bridge is constructed in Norway

Leonardo di Vinci Golden Horn bridge design in Norway

A story of classic inspiration…

Norwegian painter and public art creator, Vebjørn Sand, saw the drawing and a model of the bridge in an exhibition on da Vinci’s architectural & engineering designs in 1996. The power of the simple design overwhelmed him. He conceived of a project to bring its eternal beauty to life. The Norwegian Leonardo Bridge Project makes history as the first of Leonardo’s civil engineering designs to be constructed for public use.

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Categorized as Products

Bill Swanson’s 25 Unwritten Rules of Management

Raytheon CEO Bill Swanson offered his 25 Unwritten Rules of Management and Jim Collins asks, “I wondered, how would his rules stack up against the behavior and leadership styles of the successful CEOs profiled in Good to Great? …the overall fit appears quite positive.

For posterity, here’s Swanson’s list:

  1. Learn to say, “I don’t know.” If used when appropriate, it will be often.
  2. It is easier to get into something than it is to get out of it.
  3. If you are not criticized, you may not be doing much.
  4. Look for what is missing. Many know how to improve what’s there, but few can see what isn’t there.
  5. Viewgraph rule: When something appears on a viewgraph (an overhead transparency), assume the world knows about it, and deal with it accordingly.
  6. Work for a boss with whom you are comfortable telling it like it is. Remember that you can’t pick your relatives, but you can pick your boss.
  7. Constantly review developments to make sure that the actual benefits are what they are supposed to be. Avoid Newton’s Law.
  8. However menial and trivial your early assignments may appear, give them your best efforts.
  9. Persistence or tenacity is the disposition to persevere in spite of difficulties, discouragement, or indifference. Don’t be known as a good starter but a poor finisher.
  10. In completing a project, don’t wait for others; go after them, and make sure it gets done.
  11. Confirm your instructions and the commitments of others in writing. Don’t assume it will get done!
  12. Don’t be timid; speak up. Express yourself, and promote your ideas.
  13. Practice shows that those who speak the most knowingly and confidently often end up with the assignment to get it done.
  14. Strive for brevity and clarity in oral and written reports.
  15. Be extremely careful of the accuracy of your statements.
  16. Don’t overlook the fact that you are working for a boss.
    • Keep him or her informed. Avoid surprises!
    • Whatever the boss wants takes top priority.
  17. Promises, schedules, and estimates are important instruments in a well-ordered business.
    • You must make promises. Don’t lean on the often-used phrase, “I can’t estimate it because it depends upon many uncertain factors.”
  18. Never direct a complaint to the top. A serious offense is to “cc” a person’s boss.
  19. When dealing with outsiders, remember that you represent the company. Be careful of your commitments.
  20. Cultivate the habit of “boiling matters down” to the simplest terms. An elevator speech is the best way.
  21. Don’t get excited in engineering emergencies. Keep your feet on the ground.
  22. Cultivate the habit of making quick, clean-cut decisions.
  23. When making decisions, the pros are much easier to deal with than the cons. Your boss wants to see the cons also.
  24. Don’t ever lose your sense of humor.
  25. Have fun at what you do. It will reflect in your work. No one likes a grump except another grump.

©2003 Raytheon

Links courtesy Pete Behrens.

Amazon disintermediates the credit card companies

Why bother with micropayments when you can reach right into the bank account?

For anyone familiar with European banking, this is an obvious solution. My European friends pay all their bills directly using a standard electronic system and none of them have checkbooks. Checkbooks are an American anachronism.

Cultural capabilities: JetBlue vs. Song

Song Airlines is closing. It’s sad that a better customer experience alone isn’t enough to compete, but that in itself is a good lesson. The symptom of Song’s decline was a failure to replicate JetBlue’s service, while the cause is a failure to look beyond JetBlue’s product to the true source of their success. There’s a relationship between product, process, and culture, and JetBlue’s employee-focused (not consumer-focused!) culture is what propels them.

Though I must say the popular doubts about JetBlue’s ability to preserve this culture while they grow and grow are substantiated. As a JetBlue customer, I don’t feel the experience is any better these days, I only fly them for the price. It’s time for change.

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Categorized as Culture

Bootstrap 1.0

In response to David Hornik’s Bubble 2.0 I responded that it looks more like Bootstrap 1.0 to me. Scott blogged this topic a month ago…

With customers using a working product, decisions about what type of additional capital will be needed to scale are much easier to frame. And if you do decide to approach an outside investor, you’ll be holding more of the cards. …Bootstrapping is the new black.

I think we’ll see more overall innovation in the world if smart people aren’t only spending their time at investor presentations, waiting with their hands out instead of getting down to work.

It could be more profitable too. Today’s Wall Street Journal covers the topic, reporting the amount Flickr received from Yahoo! ($25 million?) was “significantly higher than the value Accel Partners had put on the company and Accel’s proposed investment.

There’s still a place for venture investment of course. But VCs might need to evolve, making a greater number of smaller investments.

And incidentally, how funny is it to see the name Ludicorp in the Wall Street Journal?

Mintzberg and Liedtka think it’s time for design

In Mintzberg’s “Strategy Safari” he devotes one chapter to The Design School: Strategy Formation as a Process of Conception. But his description of the cognitive act of design is different from the classic Herbert Simon description. So I appreciated discovering Liedtka’s In Defense of Strategy as Design (pdf), summarized…

This article proposes management reconsider the usefulness of the metaphor of design as a prescription for strategy making, arguing against Henry Mintzberg’s view that it is not appropriate. It reviews literature from the field of design and defines a set of attributes of the design process – which is synthetic, abductive, hypothesis-driven, opportunistic, dialectical, inquiring, and value-driven. The article examines the parallels between designing and creating business strategy and presents the implications of such an approach for designing the processes to design and execute strategy.

(Her Strategy as Design (2MB pdf) is an updated version of this argument.)

Now it seems Mintzberg and Liedtka have joined forces, submitting a piece titled Time for Design, “…making the case for design in management, in four approaches: formulaic, visionary, conversational, and evolving.” I’m looking forward to this one.

ID Strategy Symposium and the design-business chasm

Patrick Whitney, Bruce Nussbaum, Michael Beirut, and Mike Roberts

Yesterday I attended the Institute of Design Strategy Symposium. The remarks were along the lines of business design we’ve been reading about. What I particularly liked was that the conversation afterwards revolved mostly around the chasm between design and business and the means by which to span the chasm, mostly in terms of language (“design” is a non-starter; “innovation” is more business-friendly but too ambiguous to do anything more than start the conversation).

My colleagues and I don’t buy the stereotype of creative designers vs. logical financial people. There are people with different skillsets and attitudes and the best way to combine them to design new options is through close collaboration (aka co-creation). The example from the Symposium came from Mike Roberts who runs a customer experience group at JP Morgan. He makes progress through direct, personal conversations with people in traditional financial roles. As my friend Bill says, “Collaboration problems are People problems. They are often best solved by increasing the communication bandwidth between people.” The next step, I think, is to work on the best ways to get these skillsets collaborating using modes of conversation, prototyping exercises, boundary objects, and so on.

Worse is better (and more human-centered)

Nicholas Carr’s argument against peer-production of knowledge by “amateurs” has been getting a lot of attention, but I think it misses the point.

It’s not human-centered. I don’t mean that in a make the interface easy to use kind of way, but in a make it something people want kind of way. For example:

  • We’re still learning that worse is better. In many cases simplicity is more important than correctness, consistency, and completeness. This is the reason Unix won out over Lisp (and then Linux over Unix), and more people read Wikipedia than Encyclopedia Brittanica. Most of the time a fast and free resource will suffice. It’s what people want.
  • The algorithm that creates MP3s can make files smaller because it reproduces only the sound that humans hear and discards the rest, instead of trying to keep all the sound the microphone hears. MP3s won out over audiophile options because people like having 10,000 songs in their pocket. Most of the time a fast and free resource will suffice. It’s what people want.

Besides, these products don’t stay “worse” forever. They start simple, gain “market share” in a disruptive way, and then are improved over time. Linux has improved considerably. Wikipedia gets better every minute. AAC is an improvement over MP3. The new breed of wikis look swanky compared to the original wikis.

The ability to launch something simple and improve it over time is a huge competitive advantage for companies like Google. Can you imagine an established company having the discipline to launch something as simple as Craigslist?

The mantra is Do The Simplest Thing That Could Possibly Work.

The listening-to-customers wake up call

Looking back through the classic management texts I realize the call to listen to customers isn’t new. Here’s a few that counsel an emphasis on customers:

  • Innovation in Marketing (1962)
  • In Search of Excellence (1982)
  • Moments of Truth (1987)
  • Relationship Marketing (1991)
  • The Experience Economy (1999)

The repetition of this message isn’t surprising as it’s easy to walk around a modern corporation and meet plenty of people who should be familiar with their customers but aren’t. My little wake up call consists of asking, “How many of your customers have you met?” even when I know the answer is “none.”

Steve Jobs and the parable of the concept car

We thought a lot about concept cars last year and how we could translate this practice to other industries. So it’s fun fun fun to hear the latest Steve Jobs metaphor

You know how you see a show car, and it’s really cool, and then four years later you see the production car, and it sucks? And you go, What happened? They had it! They had it in the palm of their hands! …What happened was, the designers came up with this really great idea. Then they take it to the engineers, and the engineers go, ‘Nah, we can’t do that. That’s impossible.’ And so it gets a lot worse. Then they take it to the manufacturing people, and they go, ‘We can’t build that!’ And it gets a lot worse.”

Of and course, he counters that with a “No, no, we’re doing this…Because I’m the CEO, and I think it can be done.” It’s good to be the king.

Link courtesy of G-Bomb.

A challenge to the design thinking/business design community

A recent post from Jess inspired several interesting comments about who designers are really, and how to gauge the maturity of an organization’s design. Unless you really like thinking about this topic, it must seem like an awful lot of navel gazing, which is fine as that’s one thing that makes blogs useful to us: debating half-formed thoughts.

But for me — someone who wants to make an impact on my clients welfare — Jess gets to the heart of the matter when he says, “I don’t know that the term “design thinking” will actually make an impact in the boardroom…” Although I explicitly talk about design thinking on this blog, I don’t think this term will impact the boardroom, at least not directly and not in the short term. It’s esoteric, too easily confused with style/form/function, and suffers from navel gazing. It’s what we do using design thinking that will impact the boardroom. The benefits as a concept are already understood, and to activate that concept in executives’ minds — and for the community to make substantial progress — we must frame the idea of design thinking differently.

No one has framed it well yet, because we’re still discovering it. But perhaps we’re now ready to move forward.

My challenge to the community is to reframe design thinking / business design in a way that will impact the boardroom.

Here’s how I would start framing it…

  1. The pace and complexity of 21st century society present formidable challenges that require us to compliment our judgement thinking with an additional way of thinking which is collaborative, abductive, experimental, personal, integrative, and interpretive (replace with your own definition)
  2. This way of thinking leads us to do (fill in kinds of actions)
  3. These actions benefit companies by (fill in kinds of benefits in a way that impacts profit)
  4. The above can be summed up by saying, “(fill in summary in ten words or less)”

That summary is the frame.

(We could get very meta and apply design thinking to this problem, which I’ll leave as an exercise for the reader).

Bloomberg and the open office

I’m a big proponent of tearing down the walls and cubicles in offices to encourage teamwork. Even Herman Miller, who introduced cubicles decades ago, is opening up the cubes and shaving down the partitions.

So I love the story of how New York mayor Michael Bloomberg replicated the trading floor atmosphere at City Hall

Wandering through the cavernous Board of Estimate chamber on the building’s second floor, Mr. Bloomberg said he would make his office there, forsaking an ornate private enclave that was the inner sanctum for previous mayors and their closest aides. The mayor-elect said he would create a huge workspace that would be just like the open-air trading room in which he worked at Salomon Brothers and later recreated at his private company, Bloomberg L.P.

He would put his desk in the middle of the room and seat his top deputies and staff members around him, he said. Dozens of other aides would sit at cubicles placed side by side, ensuring the access of lower-ranking managers to the mayor’s inner circle and bringing with it more accountability.

Mr. Bloomberg said the office setup had been critical to his management style. “It promotes cooperation,” he said. “When people aren’t happy, you see it. When people aren’t getting along, you see it.”