Knowledge Fulcrum

Helping Entrepreneurs Through Experience

It’s that time of year when I get my favorite issue of Inc. Magazine in the mail – the Septembers “Inc. 500” Fastest Growing Companies issue.  It’s been my favorite issue ever since I started my entrepreneurial career.  After all, the first business goal I ever set for myself (other than surviving) was to make that list at least once.  And I did – three years in a row (’99 – ’01).

So, when I opened this year’s issue and turned to the “Words of Wisdom” page I realized something.  Over the last ten years I’ve gained a tremendous amount of wisdom.  Ironically, as a young entrepreneur, I didn’t place much value on the concept of wisdom.  I was in too big a hurry, had too many things to accomplish, and didn’t feel like I could or should take the time to seek out wisdom.  I was pretty arrogant too.  Looking back I would say this is perhaps my greatest mistake.  Although it’s my biggest mistake, I don’t regret it.  Maybe because the lessons I learned the hard way made such an indelible impression on me.  However, if I had to do it over again, I think I would pause and seek out someone who could have offered a little wisdom, a little insight.

This got me thinking.  It seems like such a waste to have gained all this experience and knowledge – most of it the hard way – and not share it with as many people as I can.  Maybe my experiences could help a fellow entrepreneur avoid some of the pain and agony that I seemed to experience so much of.  So, I am writing this series of articles to share the years of wisdom I’ve gained, and to help as many entrepreneurs as I can achieve their own dreams and goals.  So sit back, relax, and enjoy my story.

Are we reaching the breaking point in our environment?  Tragedy of the commons is a phenomenon used by ecologists to describe a dilemma in which multiple individuals acting independently in their own self-interest can ultimately destroy a shared limited resource even when it is clear that it is not in any one’s long term interest for this to happen.

Today I attended a luncheon sponsored by Abound - where some of Portland’s top sustainability community members – including Earl Blumenauer - discussed the challenges of maintaining short-term business viability while also balancing the needs of long-term environmental needs.  I could only think about the tragedy of the commons and maybe an organization like Abound Global provides a space where we can transcend history and work together and not destroy our shared resources.

If you are interested in sustainability and how it may affect your organization I would recommend you reach out and connect to the Abound community.

In the last year, there are few companies who’ve not had to react in some way to the recent turbulent economic events.  In fact, many still are operating from their heels.  Perhaps your organization is still in a reactionary mode.

At what point do you and your employees realize it’s time to look for different ways of doing the work — and getting back into a proactive stance?  Maybe the time is now to start implementing a Continuous Improvement (CI) initiative to help your people get back on their toes again.

Other than the obvious financial reasons to implement such a program (e.g., cost savings — by doing more with less) there are a few other factors to consider.  1st – awareness will never be higher among your employees for why change is needed.  Today employees are thankful to still have a job; they’re also looking for new ideas and resources to do their jobs more effectively and efficiently.

2nd – the economic crisis is providing the prefect motivation for all parts of the company to work together towards a common goal.

3rd – everyone in the organization is aware of the need to add value to your customer to ensure that the customer continues to do business with your company.   Whatever the reason, based on my experience implementing improvement initiatives (both as a business owner and as a consultant) — there is no better time than right now.

So, where do you start?

Assess – you must start to see how your organization adds value to the customer and where the waste exists.  We’re not used to thinking this way – we do our jobs everyday and don’t always think about the little things that can add up quickly.  Assess which functional areas are most critical at the moment – those that can add the most value to the customer or that are your biggest risks.

Train — provide tools, resources and training to all your employees.  That may simply be accomplished by providing articles and blogs like this.  Or you may choose to utilize outside resources such as consultants or facilitators.  Whichever way you go – your employees will need to gain knowledge that effectively implements changes in your company.

Plan – Next, plan out your CI initiative.  Start with small improvements that will help to get your people up to speed.  If the improvement seems too big to bite off at one time, then break it down into smaller pieces.  Also, start with a smaller group of talented people who come from diverse parts of the business rather than with bigger groups.  In my experience, trying to implement CI programs company-wide is a recipe for disaster.  Once the initial group gains experience and confidence, then expand the size and number of CI teams.

Implement – This is where you try a lot of different things.  Just like anything else – it takes failing to find success.  As someone once told me — fail fast because that means you’re close to success.  Also, be sure to to identify the specific targeted improvement metrics (e.g., 30% reduction/improvement) you would like to get.  If you don’t put a number down, then it’ll be difficult to gauge your success level with the improvement initiative once it’s completed.

Validate – Verify your results.  Did you gain the improvement you expected?  If not, why?  Don’t give up on the work even if you’ve gained some benefit but not your target.   There’s always room for more – so don’t stop until you find the additional corrective measures that get you to your goal.

Standardize – Once you’re satisfied with your improvements, then memorialize them and make them your new standard.  This includes building in systems to verify that all employees are trained on the new standard and that you take the time to spot check each other’s work.  Improvements are difficult means to create new habits, so building systems into your CI program will help new improvements stick over time.  Don’t let the old ways of doing the work creep back into your organization.

The bottom line is this: there is no end point.  CI programs are iterative processes of assessing, training, planning, implementing, validating, standardizing your activities.   Now is the perfect time.  Start making improvements now – you’ll be impressed with how much opportunity exists inside your businesses today.

Having been a CEO implementing a Continuous Improvement initiative within an organization as well as a consultant helping other organizations establish their own CI initiatives – one of the first questions to answer is, “who should be a part of our CI team?”  Unfortunately there are no simple ways to answers this question.   However the following description by Peter Senge in his newest book – The Necessary Revolution best describes the type of leaders to look look for:

“One thing we have learned from working on organizational and systematic change is that the leaders are hard to identify in advance.  Sometimes they are CEO’s or presidents, but often they do not occupy positions of obvious power in a corporate hierarchy.  They are not the flag wavers, campaigning vocally for change, but rather passionate individuals working to transform their organizations from the bottom up.  They are most often open-minded pragmatists, people who care deeply about the future but who are suspicious of quick fixes, emotional nostrums, and superficial answers to complex problems.  They have a hard-earned sense of how their organizations work, tempered by humility concerning what any one person can do alone.  They often do not think of themselves as leaders, but time proves them wrong.”

In my own experience – the best champions where the ones who were the slowest to jump on board – but once they did the impact thay had on our overall progress was incredible.  Perhaps when you are starting to implement your own CI program you can use this as part of your selection criteria. There’s nothing easy about undertaking CI programs but the feeling of achievement when it works is more than worth it.

After watching this video I’ve been fascinated by Behavioral Economics.  Is it really possible to increase your revenues by 42% by merely changing how you offer your products to your customer?  Watch the segment on the Economist Offer – if you do the math his research showed a 42% increase in revenues by adding a meaningless option to the pricing strategy.   I’d love to hear about your own experiences with this concept.

I’ve only recenly gotten my first copy of the Zappos! 2008 Culture Book.  I’m looking forward to reading it on a long flight tomorrow.  I’m only just learning about the company, in fact, many of you may already know much, much more about them than I do.

Extraordinary is the word I’d use to describe what I’ve seen so far.  The world would be a much better place if there were more organizations like Zappos!.   They personify the meaning of culture and are an example of what we all strive to achieve and make it look easy long the way.  I have no idea what it’s like to work there – I’m sure they have their fair share of issues, but all thing being equal they certainly stand out and, there’s little doubt that everyone who works there “gets” what their purpose is.

Bravo Tony – I look forward to meeting you someday soon.

Like many travelers, I’ve had my share of bad airline experiences.  There was a time when I would actually call and complain.  Eventually, I learned that because of how airlines have structured their systems and processes, it’s impossible to be heard.  As a result, nothing ever changes.  So, like many other frequent fliers — one day I just stopped complaining.

What if this were happening in your organization right now?  How would you know?  Do you have the tools and systems in place that provide you the real voice of your customer or your employees?  Who has not been surprised by a phone call or email from an upset customer complaining about something that is valid?  Do you ever wonder how long it’s been happening and you’ve been unaware?

I believe we’re at the precipice of big change.  All around us – we’re witnessing significant shifts in our society and culture — the most significant being the shift from command and control structures towards inclusive, collaborative ones.   Imagine that you’re now able to effectively collect the opinions, ideas and concerns of anyone who comes into contact with your company.  No filters, no excuses — just the honest truth.  And what if, at the same time — you’re able to gather ideas for solutions AND have your employees volunteer to be part of the implementation of the solution.  Impossible?

The following documentary illustrates just how close we are to making collaboration a part of everyone’s reality.  Imagine what a better world we’d live in if we listened and collaborated.  We’d make what we do better and better everyday.  It can work.

When you connect all of your staff, and collect all the ideas you can to solve your organization’s problems — then the organization has the ability to transcend the limitations of the old way and deliver an unprecedented level of value to the customer.  It does all this while providing employees and partners with empowering experiences.

By no means do I propose this to be a seamless and easy process.  There will be many bumps in the road.  But today we have the tools and the technology to make this part of our reality.  When we self-organize around common problems and issues that face our businesses, we then create a powerful force – one that can adapt to the chaotic environment we’re now living in.

Us Now from Banyak Films on Vimeo.

R. Buckminster Fuller was perhaps one of the greatest people of the 20th century.  He’s best known for being a visionary, designer, architect, author and inventor.Fuller died in 1983 at the age of 87.  On his gravestone is inscribed “Call me Trimtab”.

Bucky frequently used the phrase as a metaphor for leadership and personal empowerment. In a 1972 article Bucky said, “Something hit me very hard once, thinking about what one little man could do. Think of the Queen Mary — the whole ship goes by and then comes the rudder. And there’s a tiny thing at the edge of the rudder called a trimtab. It’s a miniature rudder. Just moving the little trim tab builds a low pressure that pulls the rudder around. Takes almost no effort at all. So I said that the little individual can be a trim tab. Society thinks it’s going right by you, that it’s left you altogether. But if you’re doing dynamic things mentally, the fact is that you can just put your foot out like that and the whole big ship of state is going to go.”

Bucky’s life long accomplishments speak for themselves – he wrote over 20 books, held 28 US Patents, and began a movement that is alive and well today.  When ever I start to feel like stuck and I’m not making a difference, I remind myself of this phrase and the man who changed the world.

Like a number of people, I’ve spent a good part of my life feeling like I just didn’t fit in. This feeling first started when I reached that awkward age of adolescents and, ever since then I’ve never seemed to be able to shake that it.  Not too long ago A friend recently sent me the following definition from a fridge magnet.

ARTIST (ar’tist) noun

1. a) One who practices an art in which conception and execution are governed by imagination, style and taste

b) a person skilled in one of the fine arts

c) a craftsman that executes his art with individual style

2. Often their work is judged according to the culture and the attitude placed on art at the time.  Although they may earn recognition during their lifetime, they are usually not recognized for their accomplishments until after death

3. Lives a life of unstable economic means.

4. Many theories have been put forth regarding their creativity, the most common one being that is it inherent, although if not developed & tested will remain dormant

a) they seem to create during moods, often intense, mostly lasting only a short while

5) They have a feeling of brotherhood with each other that is timeless.

6) Thought to be haphazard, having no sense of order, plan, or direction, yet are known to be perfectionists when it comes to their own work

a) they make decisions on feeling rather than reason

b) have problems with concentration

7. They are stereotyped as mentally unbalanced.  One artists cut off his ear in a passion of creativity combined with frustration about his art.  It has not been determined whether their creativity has anything to do with this.

8. They are sensitive, aware, and alert.

9. They are tolerated by society, which allows them to live in accordance with their own natures

I realize what many people today call entrepreneurs are more like our modern day artists.  We are driven to create work that has value which others see and are willing to pay for. We use our imaginations, and then set out to bring to life that concept that was born in our minds.   I mean no disrespect to artists.  I’m only trying to make a point – entrepreneurs today are motivated to do more than just make money.  And, now more than ever, we need smart, creative people dreaming up new ideas and ways out of the mess we have found ourselves in.

Slagsmålsklubben – Sponsored by destiny from Tomas Nilsson on Vimeo.

Here’s an excellent example of how to use visual thinking to communicate information to your audience.  Given the flood of information we receive each day – your ability to rise above the noise and effectively communicate information just may make the difference between success and failure.  The name of the game is how much information can you effectively communicate to your audience in 2 minutes or less.  The saying is a pictures is worth a thousand words – well how much are hundreds of pictures worth?

This example comes to you from  Flowing Data by way of Cameron Herold - Back Pocket COO.  Thanks Cameron for the link.