Month: January 2006

  • Tell the Truth, part II

    So how do we tell the truth? Here are a few ways I found work:

    Inform the uniformed: Challenging the accepted situation by citing reality may get you sent to Siberia. But it depends on whom you’re talking to. Over time executives become ill informed – ironically – because timid employees avoid giving them bad news. For the executives, the truth becomes a rare and valuable revelation, and you a valuable messenger if you relay the truth in a way that isn’t tied to your personal agenda.

    Collectively decide to be honest: Being honest is much harder than it sounds. Much of the mediocrity in companies is a result of superficial niceties that make it impossible to productively critique ideas. Being honest means praising ideas worthy of praise, and criticizing ideas worthy of criticism. Before doing it on an individual level, everyone in a group should agree that honest interaction is necessary to improve the organization, and that honest expression is not personal condemnation.

    Reframe ideas: Any current business issue stands on an implicit context of ideas that are part of the company’s culture. This collected wisdom is the frame through which new information is interpreted, even if the freshness date of those ideas is long past, such as growing for years but thinking, “We’re only a small company.” You can reframe the issues by presenting an alternate idea supported by a different context. “Now that we have 2000 employees and four offices, we have the capacity to consider exporting our products.”

    Appeal to science: Disinformation is rare among scientists and engineers because their livelihood depends on working within the physical constraints of reality. You’re not likely to hear, “That’s right, Victor, we’ll have that Internet bandwidth commodity exchange done by Tuesday afternoon.” When I work closely with engineers and programmers, they ruthlessly critique business ideas because they know exactly what it takes to implement them (and know they’ll later be responsible if they don’t speak up now). Citing scientific reality – or aligning yourself with scientists – becomes a useful sieve to filter out disinformation.

  • Tell the Truth

    Over time a company’s official history becomes ideology and people need the truth of reality to help them grow.

    On my first trip to Berlin I toured the former Deutsche Demokratische Republik including a number of museums and memorials describing the former communist state, the Berlin Wall, and life within its boundaries. We’re now well aware of the reasons the totalitarian state collapsed. Central planning failed to provide for the needs of citizens. Official “full employment” resulted in idleness and dissatisfying jobs. And the need to further a core ideology made experimentation – and therefore innovation – highly unlikely. Nothing remarkable was possible, the human spirit suffered, and eventually the whole system collapsed.

    It reminded me of some companies I’ve worked for.

    “Comrade Lombardi, I think you are mistaken in your effort to respond to these so-called customers, as the Party Leader has already informed us, there are no customers. There are only distribution end points. I am sure that lowering your bread rations will help you understand this.”

    This management-knows-all behavior creates fear that quickly overcomes the simple desire to tell the truth. When official disinformation is possible in entire countries, it easily happens in companies.

    Central planning. Unnecessarily large teams. Official ideology. Poor moral. Are you working in a totalitarian company?

  • The Bells remind Google who runs the Internet

    From the Wall Street Journal today:

    Phone Companies Set Off A Battle Over Internet Fees

    Large phone companies, setting the stage for a big battle ahead, hope to start charging Google Inc., Vonage Holdings Corp. and other Internet content providers for high-quality delivery of music, movies and the like over their telecommunications networks.

    Ah, the value chain. Expect to see Google buy the rest of it.

  • The Anti-Trend

    Springwise offers a handy heuristic for forecasting…

    Talk about conflicting trends: domestic outsourcing is more popular than ever, yet at the same time consumers are DIY-ing like there’s no tomorrow: as a hobby or to save money. For every trend, there’s an anti-trend!

  • Govindarajan on the new innovation

    William J. Holstein interviews Dartmouth professor Vijay Govindarajan for the New York Times. Here’s an excerpt:

    Q. So would you say the chief executive has an important role in making breakthrough innovation possible?

    A. A tremendously important role. I consider the C.E.O.’s role in the modern corporation to be building the capacity to continuously innovate in a breakthrough way (emphasis mine). The C.E.O. doesn’t create the strategy, but should be listening to the voices of people who are able to see the future. It is the role of the C.E.O. to spot and encourage them. Then, once an idea has promise, you must help build a separate organization around that person.