20121023 effect the right kind of change in context
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The document outlines an agenda to discuss concepts related to innovation and motivation. It will explore the Innovator's Dilemma, fractal mindsets, using The Godfather as a model for driving change, lessons from the front lines about culture and awareness. It will also discuss different types of companies (project, product, solution) and how to bring ideas together through joined-up thinking. Finally, it may discuss fractals and artificial life as models for organizations.
20121023 effect the right kind of change in context
- 1. Steve Gladstone October 23, 2012
- 2. Agenda Today, we’ll look at some seemingly disparate concepts, and draw them together: Innovation and motivation Detour I…The “Innovator’s Dilemma” Detour II…The “Fractal” mindset to drive innovation in the context of the organization “The Godfather” as a model for driving innovation and change Lessons learned at the frontline: Culture and situational awareness Project, product, and solution companies Bringing it all together through “joined-up” thinking Finally, time-permitting, we’ll discuss fractals and artificial life as a potential model for organizations Please feel free to ask questions as we go
- 3. So, You Want to Have an Impact? Explore deeply and personally what “impact” means to you Is it: Execute on established paths for change and innovation? Is it: Define & shape change and innovation? Is it: A seat of considered wisdom at the C-level table? If not, what does impact mean to you? Surprises in motivation… Money? Yes…and no. For creative tasks, higher rewards can lead to lower performance… Impact Mastery Self-direction Optionally: RSA Motivation Video
- 4. Intrapreneur Defined In 1992, the American Heritage Dictionary acknowledged the popular use of a new word, intrapreneur, to mean: “A person within a large corporation who takes direct responsibility for turning an idea into a profitable finished product through assertive risk- taking and innovation” Source: Wikipedia
- 5. Detour I…The Innovator’s Dilemma (ID) Ground-breaking book by Clayton M. Christensen: How “good” companies can do everything “right” and still lose market leadership, or disappear altogether! Incremental vs. disruptive innovation: Incumbents tend to pursue incremental (“listen to customer”) New entrants pursue disruptive Low-end disruptions eventually gain market share: New entrant, inferior at first, crawls “up-market” Later, incumbent loses market share, and often misses opportunity Examples: 5.25” 3.5” Disks Minicomputers PC’s Desktop publishing
- 6. The Innovator’s Dilemma Visualized 10% Growth = $10M Incumbent Features, Value, etc. • Listens to the customer • Inferior product…at first • Incremental innovation • Mostly ignored by market and incumbent • Organization optimized for high price point • Pursue low-end features • But, add more over time… New Entrant 10% Growth = $100K $ (Cost, Price, etc.)
- 7. The Innovator’s Dilemma Visualized Incumbent • Perceived as legitimate in mid-market Features, Value, etc. • Converts some customers from incumbent…others notice and may follow • Eventually begins to threaten incumbency New Entrant $ (Cost, Price, etc.)
- 8. Another View of the ID End State Typical Incumbent Strategy: - Sustain Market Share - Sustain Customer Satisfaction ID Impact: - Lose Market Share - Decrease Customer Satisfaction - Struggle to Recover Organizational Scale (Typically, Time)
- 9. Detour II…Fractals: Emergent Complexity from Recursive Simplicity The Koch Snowflake & Coastlines “Self-similarity”
- 10. Fractal Examples In Nature
- 11. Fractal Examples In Practice Social Networks Programming/Project Methodologies Digital Image Compression Cell Phone Antenna
- 12. Fractal Behaviors of an Organization Drive Emergent Results and Culture Executive Sponsorship vs. Sleepership Emergent project results (Good or Bad) Information/Knowledge Silos In retrospect, can observe small factors that Roles and Responsibilities compounded to the final result (Good or Bad) Responsibilities and Authority Can observe self-similar behaviors at differing Commitment and Accountability scales Performance Metrics Company “culture” is emergent Etc. Elementary Organizational Emergent Behaviors Structure Outcomes
- 13. Fractals: Not Always What You Might Expect Fractal geometry will make you see everything differently. There is a danger in reading further. You risk the loss of your childhood vision of clouds, forests, flowers, galaxies, leaves, feathers, rocks, mountains, torrents of water, carpet, bricks, and much else besides. Never again will your interpretation of these things be quite the same. — Michael F. Barnsley Fractals Everywhere (2000)
- 14. OK, so you want to be an Agent of Change Regularly evidence deep understanding to Execs/C-levels What it takes to execute an idea in a company/industry context Know thy personal and company culture Create a shared “sense of urgency” through communications Gain awareness of “fractal” behaviors and weigh against desired project outcomes Only “joined up” thinking makes it happen Generate results…tangible and intangible Projects, products, and solutions execute with highest success probability Company and deliverables are crisply branded Build resilient trust with Execs/C-levels Executive sponsorship vs. “sleepership” “The Godfather” consigliere as a model
- 15. Execution and Communication in Context Understand Industry trends and causal relationships Competitive, revenue, profitability, and growth impacts Get into stakeholder’s heads The CEO’s The customer’s Others (internal and external) Navigate any dual/mixed C-level roles CIO reports to CFO Dual CTO/CEO role Who really drives change/innovation? Engineering vs. product management (projects vs. products) Be forward thinking, but balance tactics and strategy If you only listen to customers, then you will only be as smart as them For disruptive innovation, paradigm shifts must be “on the table”
- 16. Know Thy Personal and Company Culture Alignment is essential in any organization Clear definitions of roles and responsibilities Project administrators vs. project managers Useful process vs. worship of process “Centers of excellence” delivery and metrics Commensurate responsibilities and authority Misalignment can lead to overly political environments Join commitment and accountability The union builds on what we know about motivation Is it a Project, Product, or Solution based company? Core to understanding what/how change and innovation can/will occur
- 17. Organizational Maturity Model: Projects, Products, or Solutions? Recognize that everyone says they want a solution Projects Customer says “Jump!”, and company says “How high?” Company brand centered in capability to execute Products Company willing to gently say “no” to customers Typically “market” driven Solutions Company says, “We are all things to all people.” Bring together People, Process, Technology Professional services consumes/customizes company products Typically viewed as “end-to-end” by customer So, which type is your personal sweet-spot? Is it aligned with the company’s? Note: Projects and products do not play well together if they share execution resources.
- 18. Project, Product, Solution Visualized Typical Incumbent Strategy: Leadership Changes - Sustain Market Share Typically Required - Sustain Customer Satisfaction “Solution” • Core engineering builds product • Professional services handles customization • Business scales in products and services “Product” ID Impact: - Lose Market Share • Build what the “market” wants - Decrease Customer Satisfaction • OK. We need a “platform” and API gate-keeper - Struggle to Recover “Project” • • Truly, have a “product” Still, can we service mass customization? • Build whatever customer specifies • “Recreate the wheel” several times • Eventually, claim a “product” • Suffer code fragmentation Organizational Scale (Typically, Time) • How do we contend with NRE-based business scaling issues?
- 19. Bringing it All Together – “Joined Up” Thinking Understand current company projects, products, and solutions Projects Leverage knowledge of present “organizational maturity” In company cultural context, is the change/innovation realistic? Is it worth the professional risk? Solutions Products Truly “partner” with people/teams/organizations to bring it about Think like a developer, project manager, CEO, etc. Politics of change: Create buy-in No buy-in = No change Assert with passion and create excitement Be proactive, not reactive Take reasonable risks, but mitigate Change is hard: Empathize, but don’t fully sympathize Appeal to the “arrogance” of others (by making it their idea!) Ultimately, “Developers own the code”
- 20. Communications: Create a “Shared Sense of Urgency” Facilitate joined up organizational thinking/execution Partner with Marketing for communications Internal communications Be crisp and clear about why it is urgent (“an offer they can’t refuse…”) Does everyone share the vision, or just versions of it? Authorized internal communications can serve as a lock-in Care and feed the messaging, don’t abandon it External communications Media and trade shows must reflect the change/innovation Align or revise branding strategy, as required
- 21. Finally, Claim Your Seat at the Table Significant change/innovation rollouts typically have material impact on company The stakes can be high Successful change agent championing is usually career-making Failure to execute (for any reason) can create a stigma for those that championed While execution of an idea is almost everything, its not the only thing Don’t burn too many bridges, as you will need them to come along next time And, contrary to “The Godfather”, a carefully placed horse head won’t quite do it…
- 22. Today, We Covered… Some seemingly disparate concepts, and drew them together: Innovation and motivation The “Innovator’s Dilemma” The “Fractal” Mindset to drive innovation in the context of the organization “The Godfather” as a potential model for driving innovation and change Lessons learned at the frontline: Culture and situational awareness Project, product, and solution companies Bringing it all together through “joined-up” thinking
- 23. Thank You for Participating Today Questions & Answers Steve Gladstone, spglad@hotmail.com Your comments & suggestions are welcomed