Friday, March 30, 2012

"The Five Personalities of Innovators: Which One Are You?"


Whenever I try to conjure up what innovation looks like, the same slideshow of images clicks across my mind: that photo of Einstein with his tongue sticking out, Edison with his light bulb, Steve Jobs onstage in his black turtleneck, introducing the latest iThing. Unoriginal and overdone, to be sure. And not all that accurate.
Because it’s not just about that romantic “ah ha!” moment in front of a chalkboard or a cocktail napkin, it’s about the nitty-gritty work that comes after the idea:  getting it accepted and implemented. Who are these faces? And, most importantly, as I’m sure you’re all asking yourselves: where do I fit in?
Forbes Insights’ recent study, “Nurturing Europe’s Spirit of Enterprise: How Entrepreneurial Executives Mobilize Organizations to Innovate,” isolates and identifies five major personalities crucial to fostering a healthy atmosphere of innovation within an organization. Some are more entrepreneurial, and some more process-oriented – but all play a critical role in the process. To wit: thinkers need doers to get things done, and idealists need number crunchers to tether them to reality.
Though it may seem stymieing at times, in any healthy working environment, a tension between the risk-takers and the risk-averse must exist; otherwise, an organization tilts too far to one extreme or the other and either careens all over the place or moves nowhere at all. An effective and productive culture of innovation is like a good minestrone soup: it needs to have the right mix and balance of all the ingredients, otherwise it’s completely unsuccessful, unbalanced — and downright mushy.
The Forbes Insights study surveyed more than 1,200 executives in Europe across a range of topics and themes. Using a series of questions about their attitudes, beliefs, priorities and behaviors, coupled with a look at the external forces that can either foster – or desiccate – an innovative environment, a picture emerged of five key personality types the play a role in the innovation cycle.
This last piece – the corporate environment – is a stealth factor that can make or break the potential even the most innovative individual. Look at it this way: a blue whale is the largest animal known ever to have existed, but if you tried to put it in a freshwater lake, it wouldn’t survive. Well, that and it would displace a lot of water. My point? Even the largest and mightiest of creatures can’t thrive in an environment that doesn’t nurture them.
The themes surveyed in the study are universal; despite the focus on European executives, these personalities are applicable across oceans and cultures. The full study, available here, provides further breakdown of where these personality types congregate by industry, company size and job function.
I’ll leave it to you to decide which one fits you best . You may even see a little of yourself in more than one group.  But remember, none of these are bad. All play crucial roles in developing an idea, pushing it up the corporate channels, developing a strategy and overseeing execution and implementation. These are all pieces of a puzzle, arteries leading to the beating heart of corporate innovation. Wow – can I make that sound any more dramatic?
Nurturing Europe’s Spirit of Enterprise: How Entrepreneurial Executives Mobilize Organizations to Innovate
The Five Personality Types of Innovation: a breakdown

Movers and Shakers. With a strong personal drive, these are leaders. Targets and rewards motivate them strongly, but a major incentive for this group is the idea of creating a legacy and wielding influence over others. These are the ones who like being in the front, driving projects forward (and maybe promoting themselves in the process), but at the end of the day, they provide the push to get things done. On the flip side, they can be a bit arrogant, and impatient with teamwork.  Movers and Shakers tend to cluster in risk and corporate strategy, in the private equity and media industries, at mid-size companies; though they comprise 22% of total executives, at companies with revenues of $25 million to $1 billion, Movers and Shakers can encompass up to one-third of the executive suite.
Experimenters. Persistent and open to all new things, experimenters are perhaps the perfect combination for bringing a new idea through the various phases of development and execution. “Where there is a will, there is a way,” is perhaps the best way to describe them. They’re perfectionists and tend to be workaholics, most likely because it takes an incredible amount of dedication, time and hard work to push through an idea or initiative that hasn’t yet caught on. They take deep pride in their achievements, but they also enjoy sharing their expertise with others; they’re that intense colleague who feels passionately about what they do and makes everyone else feel guilty for daydreaming during the meeting about what they plan on making for dinner that night. Because they’re so persistent, even in the face of sometimes considerable pushback, they’re crucial to the innovation cycle. They tend to be risk-takers, and comprise about 16% of executives – and are most likely to be found in mid-size firms of $100 million to $1 billion (20%). Surprisingly, they’re least likely to be CEOs or COOs – just 14% and 15%, respectively, are Experimenters.

"Five Ways to Make Corporate Space More Creative"


Winston Churchill famously said, "We shape our buildings; thereafter, they shape us." The places we work and the ways we think are inextricably linked: a few changes to one inform the other. It's possible to shape an environment to encourage creativity and collaboration. And changes to a workplace need not be complicated: simple changes are often the most effective, if only because they will actually be implemented. If your office space is dampening creativity and your company's facilities department isn't a resource, there is hope. Here are five tactics you can use to improve a less-than-ideal work environment.
1. Begin with your own mindset. Reframe what you can't do into what you can do.
This is a cunning approach to making the most impact with the fewest resources: it is guerrilla warfare. You need to take small immediate steps toward change, instead of retreating from seemingly insurmountable infrastructure.

2. Focus on a few basic variables.
Posture, orientation (of people relative to each other), and ambience (the intangibles of a room, like lighting) are easy to tweak in any environment. For example, we've noticed time and time again that an upright posture encourages people to stay alert and engaged in problem solving, while a comfortable, "lean-back" posture often turns people into passive critics. Critique is important at times, but it can get in the way of idea generation. At the d.school we use tall stools gathered in small circles for many work sessions. The stools aren't selected for comfort; they're tall and upright to keep students alert and prompt them to get up and move about.

Stools_CREDIT_William-Mercer-McLeod.jpg
Ambience has huge impact while often receiving little attention, or credit. Be aware of how a room feels, and act like a good host. Simply adding multiple sources of warm light (e.g. floor lamps) and opening some windows can change the tone of a meeting space — and of the meeting itself — from institutional and routine to refreshing and special. If your culture can bear it, add in a little music as people enter to perk people up.
3. Start small, take action, and create momentum.
Action builds momentum. If you find yourself or your team working as undercover agents for change, ask: What are things that we can do and try that no one will notice at first? Start meeting in a common area and see if you can build a mini-movement to transform the behaviors of those around you. Take over an unused room and make it a persistent, shared project space. See who will join your team.

Very small steps are easy, and they can help you make your case for bigger changes. Small-scale, intentional explorations can also inform larger decisions, in part by illuminating the unique attributes of your particular culture. The Stanford University d.school, for example, prototyped three different buildings — beginning with a small trailer — before designing its current home. Prototyping toward significant cultural changes and capital expenses is a repeatable approach that not only minimizes risk, but also illuminates unique opportunities for designing your culture.
4. Design for your culture — not another group of people in another place.
Designing for your particular culture is important — really important. While many concepts are one-size-fits-all, the implementations are not. Implementation is the difference between selecting the ideal bike to pedal through Amsterdam versus San Francisco: both are beautiful cities for biking, but better stick with a single-speed for the Dutch flats and multiple gears for the Bay City hills. Paying attention to your particular details will pay off.

5. Build.
The only sure way to create change is to actually create it. As soon as you build something it becomes a magnet for activity. Building may seem like a daunting task, but we've repeatedly seen that the physical act of making things sets off a spark that attracts like-minded people and becomes a beacon for what's possible.

Early efforts at building can have a lasting impact: one of the first items built at the d.school is the Z-Rack. It is simply a suped-up garment rack rigged with a sandwich of showerboard — a construction material that works great as a dry erase surface. That first design continues to provide endless, inexpensive whiteboard space. (There are instructions for making one here.)
Z-racks-in-use_CREDIT_Adam-Royalty.jpg
The bottom line: take small actions. Be opportunistic, make easy changes, and invite others to work with you.

Thursday, March 29, 2012

"7 Entrepreneurial Lessons From "Shark Tank"


Shark Tank--the prime-time feeding frenzy where successful entrepreneurs fight over promising startups, and ruthlessly chew up the unprepared--provides a wealth of knowledge about what venture capitalists need to hear before they invest in your company.

Shark Tank--the prime-time feeding frenzy where successful entrepreneurs fight over promising startups, and ruthlessly chew up the unprepared--is stirring up much buzz in its third season. To date, the Sharks have invested more than $6.2 million of their own money in a number of companies. With billionaire Mark Cuban, real estate mogul Barbara Corcoran, venture capitalist Kevin O'Leary (aka Mr. Wonderful), and other business magnates sitting in as the Sharks, the show offers a glimpse of pitching sessions gone totally right--or deliciously wrong.
An example: When three ice cream makers first lined up in front of the Sharks to pitch their product, they generated some friendly conversation. After all, the concept of morphing together beer and America's favorite frozen treat is bound to appeal to our inner glutton. However, when the investors started asking the entrepreneurs tough questions about their finances, the men from The Brewer's Cow had a minor meltdown. Whether the Connecticut-based founders were the victims of calculated editing or simply unprepared, their presentation lacked a certain professionalism. The final verdict? A flurry of "I'm outs" from the Sharks.
Yes, the episodes are entertaining. But more than that, they provide a wealth of knowledge about what venture capitalists want to hear before they invest in your company--and what will turn them off. Here's are 7 lessons from the Sharks about learning what it takes to make it as an entrepreneur.
1. Know your numbers. This is the number one lesson from Shark Tank. Whether you're presenting to a team of investors or simply working to grow your business, it's critical that you understand how much cash is coming in and out of the business. While you might think that most entrepreneurs on Shark Tank have a handle on their books, many believe that their passion will sell their wares. However, as we've learned from many of the Sharks, passion only gets you so far--numbers tell the real story.
2. Be a good marketer. Although the boys from The Brewer's Cow didn't get the deal they wanted, there is no doubt that the exposure from the show is extremely valuable. However, as a Shark Tank fan shares on his blog, the company's website is pretty lackluster for a brand that hopes to go national. If you extend the online search to their Twitter feed, there is very little interaction since the show aired. The Brewer's Cow currently has a deal with Whole Foods, but on the online front there is a lot more they could be doing just days after the television broadcast to capitalize from the on-air buzz.
3. Be humble. When a young entrepreneur appeared on the show to sell his custom clothing, he expressed the business drive that the Sharks love, but things started to fall apart when he talked about his lifestyle. Aside from asking for a starting six-figure salary (when the company has only grossed just over $315,000), he also lost some Sharks when he declared, "I'm now living the L.A. life." As Shark Daymond John, founder of FUBU, expressed on his Twitter feed, a statement like this isn't very appealing to a potential investor looking to form a responsible partnership.
4. Understand good timing. There are good and bad times in your business to ask for investment money. For many of the companies diving into the Shark Tank, they have great ideas but it's too early on in their businesses to be on the hunt for a large amount of cash. Mom Raven Thomas was one of the most impressive entrepreneurs on the show in terms of leaking out little bits of information about her business to entice the Sharks, one by one. For example, when she shared that Sam's Club recently put in an order for $2 million for her chocolate-covered pretzels, she had Cuban drooling to seal a deal.
5. Have a good story. When Travis Perry explained his company's motivation to the Sharks, it tugged on their inner musician heart strings. Perry invented his product Chordbuddy to help new guitar players like his 10-year-old daughter avoid frustration when learning how to play the popular instrument. With a great story and a stellar product, Perry got investment help and now has his Chordbuddy product in more than 100 music stores.
6. Be prepared to walk. Some things are not meant to be, which was the case with entrepreneur Scott Jordan. As founder of the successful brands SCOTTEVEST and TEC, he appeared on the show to sell a percentage of the latter (a technology-enabled clothing patent). The Sharks, on the other hand, were interested in Jordan's main business, SCOTTEVEST, which is on track to make more than $20 million this year. After a heated debate with some of the Sharks, Jordan was happy to walk away without a deal but with some new publicity for both his businesses.
7. Be personable. While all of the above will get you closer to your dream of running a successful business, it's also helps to have a winning personality. No one wants to do business with someone who is unlikable, except maybe Mr. Wonderful. As Shark Barbara Corcoran said in a recent tweet, "All the entrepreneurs I've invested in have amazing personalities--no regrets."
Remember all those things you learned about being nice in kindergarten? Those same things apply in the boardroom, no exceptions.

Wednesday, March 28, 2012

"Managing Yourself: The Paradox of Excellence"


Why is it that so many smart, ambitious professionals are less productive and satisfied than they should or could be? Why do so many of them find their upward trajectories flattening into a plateau? In our experience—Tom’s as a business school professor and consultant and Sara’s as a psychiatrist—high achievers often let anxiety about their performance compromise their progress. Because they’re used to having things come easily to them, they tend to shy away from assignments that will truly test them and require them to learn new skills. They have successful images to preserve, so instead of embracing risk, they hunker down and lock themselves into routines—at the expense of personal growth.
We’ve seen this time and again with the executives and managers we’ve counseled—between us, some 600 professionals over a combined 35 years. Many high performers would rather do the wrong thing well than do the right thing poorly. And when they do find themselves in over their head, they’re often unwilling to admit it, even to themselves, and refuse to ask for the help they need.
Consider Ted, a highly successful sales executive at a major enterprise software firm. He excelled at the huge deals that were the revenue engine for the company. He knew the product inside and out, understood the pain points of his customers, and could unerringly sniff out and connect with the real decision maker in a deal. After years of praise and enormous commission checks, Ted began to sense that something was off. The company had expanded in a new direction, shifting to a software-as-a-service business model. Though the majority of revenue was still coming from the legacy products, all the innovation and energy were focused on the subscription offerings. At first, Ted was contemptuous—selling software as a service was all about small transactions and high volume. “Just get some telemarketers for that nickel-and-dime stuff,” he’d say. “I’ll handle the big boys.” Soon, though, he began to see the writing on the wall: He was becoming increasingly marginalized in the company—and in the industry. But he was paralyzed by fear and self-doubt. His professional identity and self-esteem were wrapped up in his success as a salesman.
Consider, too, Kurt, a lawyer known for his trial skills and intellectual heft; he was a natural in the courtroom and a skilled writer with a keen sense of nuance. When he was assigned a case that required combing through thousands of technical documents, he believed it would just be a matter of rolling up his sleeves and getting to work. But early on, he realized he didn’t have enough content expertise and couldn’t make sense of the casework his associates delivered. He began to find himself alone in his office, late at night and on weekends, wading through and deciphering the facts. It wasn’t until almost the eve of a trial that Kurt finally asked for help—which didn’t endear him to colleagues who suddenly found themselves joining him in the office after hours.
Of course, leaders within organizations bear some of the blame for this mind-set. They don’t always want to hear that somebody’s struggling, nor do they necessarily reward new ways of doing things, despite the lip service they might pay to innovation and prudent risk taking. As one executive we worked with pointed out, “My boss wants innovation as long as it’s done perfectly the first time.” Another confided, “We tell our people over and over again that we will support their professional development, but if a new project doesn’t work out immediately, we basically push them over the cliff.”
However, it’s possible to break this cycle and make the next move toward professional growth. First, you have to take a hard look at yourself and identify the forces that escalate your anxieties and cause you to turn to unproductive behaviors for relief. (See the sidebar, “The Curse of Being a High Achiever.”) Then you must adopt counterintuitive practices that give you the courage to step out of your comfort zone. This won’t happen overnight. It requires acknowledging vulnerability, something that driven professionals don’t like to do and that runs counter to their obsession with managing their image at all costs.
To achieve continued success, you must open yourself up to new learning experiences that may make you feel uncertain at best and incompetent at worst. Remember that those feelings are temporary and a prelude to greater professional ability.

Tuesday, March 27, 2012

"Two Lists You Should Look at Every Morning"


I was late for my meeting with the CEO of a technology company and I was emailing him from my iPhone as I walked onto the elevator in his company's office building. I stayed focused on the screen as I rode to the sixth floor. I was still typing with my thumbs when the elevator doors opened and I walked out without looking up. Then I heard a voice behind me, "Wrong floor." I looked back at the man who was holding the door open for me to get back in; it was the CEO, a big smile on his face. He had been in the elevator with me the whole time. "Busted," he said.
The world is moving fast and it's only getting faster. So much technology. So much information. So much to understand, to think about, to react to. A friend of mine recently took a new job as the head of learning and development at a mid-sized investment bank. When she came to work her first day on the job she turned on her computer, logged in with the password they had given her, and found 385 messages already waiting for her.
So we try to speed up to match the pace of the action around us. We stay up until 3 am trying to answer all our emails. We twitter, we facebook, and we link-in. We scan news websites wanting to make sure we stay up to date on the latest updates. And we salivate each time we hear the beep or vibration of a new text message.
But that's a mistake. The speed with which information hurtles towards us is unavoidable (and it's getting worse). But trying to catch it all is counterproductive. The faster the waves come, the more deliberately we need to navigate. Otherwise we'll get tossed around like so many particles of sand, scattered to oblivion. Never before has it been so important to be grounded and intentional and to know what's important.
Never before has it been so important to say "No." No, I'm not going to read that article. No, I'm not going to read that email. No, I'm not going to take that phone call. No, I'm not going to sit through that meeting.
It's hard to do because maybe, just maybe, that next piece of information will be the key to our success. But our success actually hinges on the opposite: on our willingness to risk missing some information. Because trying to focus on it all is a risk in itself. We'll exhaust ourselves. We'll get confused, nervous, and irritable. And we'll miss the CEO standing next to us in the elevator.
A study of car accidents by the Virginia Tech Transportation Institute put cameras in cars to see what happens right before an accident. They found that in 80% of crashes the driver was distracted during the three seconds preceding the incident. In other words, they lost focus — dialed their cell phones, changed the station on the radio, took a bite of a sandwich, maybe checked a text — and didn't notice that something changed in the world around them. Then they crashed.
The world is changing fast and if we don't stay focused on the road ahead, resisting the distractions that, while tempting, are, well, distracting, then we increase the chances of a crash.
Now is a good time to pause, prioritize, and focus. Make two lists:
List 1: Your Focus List (the road ahead)
What are you trying to achieve? What makes you happy? What's important to you? Design your time around those things. Because time is your one limited resource and no matter how hard you try you can't work 25/8.
List 2: Your Ignore List (the distractions)
To succeed in using your time wisely, you have to ask the equally important but often avoided complementary questions: what are you willing not to achieve? What doesn't make you happy? What's not important to you? What gets in the way?
Some people already have the first list. Very few have the second. But given how easily we get distracted and how many distractions we have these days, the second is more important than ever. The leaders who will continue to thrive in the future know the answers to these questions and each time there's a demand on their attention they ask whether it will further their focus or dilute it.
Which means you shouldn't create these lists once and then put them in a drawer. These two lists are your map for each day. Review them each morning, along with your calendar, and ask: what's the plan for today? Where will I spend my time? How will it further my focus? How might I get distracted? Then find the courage to follow through, make choices, and maybe disappoint a few people.
After the CEO busted me in the elevator, he told me about the meeting he had just come from. It was a gathering of all the finalists, of which he was one, for the title of Entrepreneur of the Year. This was an important meeting for him — as it was for everyone who aspired to the title (the judges were all in attendance) — and before he entered he had made two explicit decisions: 1. To focus on the meeting itself and 2. Not to check his BlackBerry.
What amazed him was that he was the only one not glued to a mobile device. Were all the other CEOs not interested in the title? Were their businesses so dependent on them that they couldn't be away for one hour? Is either of those a smart thing to communicate to the judges?
There was only one thing that was most important in that hour and there was only one CEO whose behavior reflected that importance, who knew where to focus and what to ignore. Whether or not he eventually wins the title, he's already winning the game.

Saturday, March 24, 2012

"What To Do When You Don't Know What To Do"



Are you frustrated? We know we are.

Most of us prepared hard for the future we expected, and yet things aren't working out as we had planned. That's true if you have been laid off, are a recent college graduate who feels underemployed, or are a manager facing constant upheavals at work, even if you are the boss, because you are wrestling with disruptive technologies and new competitors who seemingly come out of nowhere to upend your industry.
All of this is extremely confusing and unsettling.
This is not how we were told it was going to be. Growing up we were led to believe that the future was predictable enough, and if we studied hard we could obtain the work we wanted in an environment we understood, and we would live happy and successful lives.
It hasn't exactly worked out that way (even for those of us who are happy). Many of us, maybe most, are not making progress on achieving the things we want.
We think the reason is pretty simple. The way we were taught to think and act works well in a predictable future, but not so much in the world as it is now.
You know the steps for dealing with a predictable universe:
1. You (or your parents, teachers, or bosses) forecast how the future will be. 
2. You construct a number of plans for achieving that future, picking the optimal one. 
3. You amass all the necessary resources (education, money, etc.) necessary to achieve your plan.
4. And then you go out and make that plan a reality.

We have become so indoctrinated with this way of thinking by our education and our organizations that it is more or less the only way we approach anything.
But what is a very smart approach in a knowable or predictable future is not smart at all when things can't be predicted. And that fact is at the heart of the frustrations most of us feel. Things simply aren't as predictable as they once were.
In a world where you can no longer plan or predict your way to success, what is the best way to achieve your goals? It's a daunting question, but today — when saying "change seems to be the only constant" has become a cliché because it is so true — it's one everyone has to resolve.
Here's the central point of our new book, Just Start (and this blog post): When the future is unknowable (Is quitting your job and starting something new a good idea? Will the prototype we are developing at work find a market?), how we traditionally reason is extremely limited in predicting what will happen.
You need a different approach.
We have one. There is a proven method for navigating in an uncertain world, an approach that will complement the kind of reasoning we have all been taught. It will help you deal with high levels of uncertainty no matter what kind of situation you face. We know it works because entrepreneurs — the people who have to deal with uncertainty every day — use it successfully all the time. It is also the approach that is used by Babson College — the world's number-one school for entrepreneurship, of which one of us is president.
Babson calls the approach "entrepreneurial thought and action," but we use a simple shorthand and call it "Act, Learn, Build, Repeat."
Based on the research of Saras D. Sarasvathy, of the University of Virginia's Darden School of Business, and similar work by others at Babson College, this approach is a time-tested process for dealing with the unknown.
Put simply, in the face of an unknown future, entrepreneurs act. They deal with uncertainty not by trying to analyze it, or planning for every contingency, or predicting what the outcomes will be. Instead, they act, learn from what they find, and act again. More specifically the process looks like this.
1. Start with desire. You find/think of something you want. You don't need a lot of passion, you only need sufficient desire to get started. ("I really want to start a restaurant, but I haven't a clue if I will ever be able to open one.")
2. Take a smart step as quickly as you can toward your goal. What's a smart step? It's one where you act quickly with the means at hand. What you know, who you know, and anything else that's available. ("I know a great chef, and if I beg all my family and friends to back me, I might have enough money to open a place.") You make sure that step is never going to cost more than it would be acceptable to you to lose should things not work out. And you bring others along to acquire more resources, spread the risk and confirm the quality of your idea.
3. Reflect and build on what you have learned from taking that step. You need to do that because every time you act, reality changes. Sometimes the step you take gets you nearer to what you want ("I should be able to afford something just outside of downtown"); sometimes what you want changes ("It looks likes there are an awful lot of Italian restaurants nearby. We are going to have to rethink our menu.") If you pay attention, you always learn something. So after you act, ask: Did those actions get you closer to your goal? ("Yes. It looks like I will be able to open a restaurant.") Do you need additional resources to draw even closer? ("Yes. I'll need to find another chef. The one I know can only do Italian.") Do you still want to obtain your objective? ("Yes.")
4. Repeat.
Act. Learn. Build. Repeat. This is how successful serial entrepreneurs conquer uncertainty. What works for them will work for all of us

Thursday, March 22, 2012

"Steve Jobs and The Bobby Knight School of Leadership"


I believe that Steve Jobs was among the best CEOs of this generation because he created entirely new categories six times in a decade, and built the largest company market cap ever. Yet two recent and excellent books (Inside Apple, by Adam Lashinsky and Steve Jobs by Walter Issacson) describe a management style that was disturbingly harsh.
To understand Jobs's success, I find it helpful to look at the success of Bobby Knight, the fabled basketball coach at Indiana. Knight was one of two coaches to win over 900 games, won the NCAA championship three times, and was the national coach of the year four times yet had a management style similar to Jobs (described in detail by John Feinstein's book A Season on the Brink). What are the common success characteristics shared by these two? Before answering that question, it is useful to elaborate the two management styles.
Jobs's treatment of employees and partners has been described as brutal and even cruel. He routinely denigrated the ideas and accomplishments of employees, expected a commitment to work but seldom appreciated loyalty, arbitrarily fired people, disregarded the feelings of others, excluded people from "secret" projects, routinely took credit for the accomplishments of others, and did not allow others to have a public face. It is the very opposite of the supportive and nurturing Theory Y management pioneered by MIT's Douglas McGregor over a half century ago.
Knight's treatment of players has been termed abusive. He shouted, pushed, denigrated, humiliated, threatened, and harped on faults. Other coaches were loud and negative but Knight took it to a whole new level. He was so cruel that a key job of assistant coaches was to council distraught players to ignore what he said. Among his many examples of loutish behavior was throwing a chair across the basketball floor during a game. After many warnings, he was ultimately fired from Indiana 28 years after being accused of choking a player.
Knight and Jobs shared four common success traits that seem more obvious when looking at the two together.
  1. They were incredibly knowledgeable and insightful. Jobs would make decisive decisions on large and small issues and again and again would be proved right by the market or technology. With that ability to make the right decision came respect and a tolerance for his negativity. Knight not only had an amazing knowledge of the game, but he also had insight into competitors and an ability to tailor the efforts of players and a team to get them in a position to win. The knowledge for both in part came from discipline and hard work. Each was obsessive about their jobs and put in astonishingly long hours. But the insight also came from a talent that simply could not be taught.
  2. Both were perfectionists and micromanagers. They did not stop at strategy but got into tactics at a very micro level. Jobs was famous for getting involved in details for all aspects of a product including design, packaging, and advertising. He wanted perfection and expected everyone else to have the same aspiration. Knight was the same way as he would teach fundamentals, blocking out, passing, and defending and expected each player to know the right way and to execute. There was no room for anything less than ongoing perfection in Knight's world.
  3. Both were winners. They hated to lose and could virtually gain victory just by the force of their wills. Winning was crucial to their success over time. People like to be associated with winners and to be on a winning team. The people under both Jobs and Knight in general felt that that these two leaders pushed them to achieve above their natural limits and that result was exhilarating and worth the pain.
  4. They had a higher purpose than just winning. Jobs wanted to generate insanely great products and use them as a vehicle to change the world. Knight wanted to go beyond winning to produce players and teams that reached or exceeded their potential. Many of his players, few of whom were NBA-level gifted, said that the coach got them to perform beyond their personal limitations. His purpose extended to the classroom where also demanded discipline. Nearly all of his players graduated, a rare achievement when it comes to elite college sports teams. Winning a championship was not enough for Knight.
This analysis reminds us that there are many routes to CEO success; there is no one style that is the best. In particular, it highlights the truism that it is not necessary to be well-liked or even supportive and encouraging. The Bobby Knight style worked for Knight and for Jobs. Could Jobs or Knight have been as successful or even more so by being a bit more sensitive and less emotional and negative? Or would an effort to temper their style taken the edge off and undercut their performance? We don't know the answer. It is not clear that style adjusting, which is the goal of many training programs and performance reviews, will result in improved executive performance. 

Wednesday, March 21, 2012

"6 Habits of True Strategic Thinkers"


You're the boss, but you still spend too much time on the day-to-day. Here's how to become the strategic leader your company needs.


 
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Whatever that means.In the beginning, there was just you and your partners. You did every job. You coded, you met with investors, you emptied the trash and phoned in the midnight pizza. Now you have others to do all that and it's time for you to "be strategic." 

If you find yourself resisting "being strategic," because it sounds like a fast track to irrelevance, or vaguely like an excuse to slack off, you're not alone. Every leader's temptation is to deal with what's directly in front, because it always seems more urgent and concrete. Unfortunately, if you do that, you put your company at risk. While you concentrate on steering around potholes, you'll miss windfall opportunities, not to mention any signals that the road you're on is leading off a cliff.
This is a tough job, make no mistake. "We need strategic leaders!” is a pretty constant refrain at every company, large and small. One reason the job is so tough: no one really understands what it entails. It's hard to be a strategic leader if you don't know what strategic leaders are supposed to do.
After two decades of advising organizations large and small, my colleagues and I have formed a clear idea of what's required of you in this role. Adaptive strategic leaders — the kind who thrive in today’s uncertain environment – do six things well:

Anticipate 

Most of the focus at most companies is on what’s directly ahead. The leaders lack “peripheral vision.” This can leave your company vulnerable to rivals who detect and act on ambiguous signals. To anticipate well, you must:
  • Look for game-changing information at the periphery of your industry
  • Search beyond the current boundaries of your business
  • Build wide external networks to help you scan the horizon better

Think Critically

“Conventional wisdom” opens you to fewer raised eyebrows and second guessing. But if you swallow every management fad, herdlike belief, and safe opinion at face value, your company loses all competitive advantage. Critical thinkers question everything. To master this skill you must force yourself to:
  • Reframe problems to get to the bottom of things, in terms of root causes
  • Challenge current beliefs and mindsets, including your own
  • Uncover hypocrisy, manipulation, and bias in organizational decisions

Interpret 

Ambiguity is unsettling. Faced with it, the temptation is to reach for a fast (and potentially wrongheaded) solution.  A good strategic leader holds steady, synthesizing information from many sources before developing a viewpoint. To get good at this, you have to:
  • Seek patterns in multiple sources of data
  • Encourage others to do the same
  • Question prevailing assumptions and test multiple hypotheses simultaneously

Decide

Many leaders fall prey to “analysis paralysis.” You have to develop processes and enforce them, so that you arrive at a “good enough” position. To do that well, you have to:
  • Carefully frame the decision to get to the crux of the matter
  • Balance speed, rigor, quality and agility. Leave perfection to higher powers
  • Take a stand even with incomplete information and amid diverse views

 Align

Total consensus is rare. A strategic leader must foster open dialogue, build trust and engage key stakeholders, especially when views diverge.  To pull that off, you need to:
  • Understand what drives other people's agendas, including what remains hidden
  • Bring tough issues to the surface, even when it's uncomfortable
  • Assess risk tolerance and follow through to build the necessary support

Learn

As your company grows, honest feedback is harder and harder to come by.  You have to do what you can to keep it coming. This is crucial because success and failure--especially failure--are valuable sources of organizational learning.  Here's what you need to do:
  • Encourage and exemplify honest, rigorous debriefs to extract lessons
  • Shift course quickly if you realize you're off track
  • Celebrate both success and (well-intentioned) failures that provide insight

Do you have what it takes?

Obviously, this is a daunting list of tasks, and frankly, no one is born a black belt in all these different skills. But they can be taught and whatever gaps exist in your skill set can be filled in. I'll cover each of the aspects of strategic leadership in more detail in future columns. But for now, test your own strategic aptitude (or your company's) with the survey at www.decisionstrat.com. In the comments below, let me know what you learned from it.