Knowledge Fulcrum

Hill wrote this in 1937 – Think and Grow Rich.   As much as we may want to believe that we’ve made progress as a society I can’t help but think we really haven’t.  We seem to be struggling with the same problems, and if we really believe that using the same solutions will result in different outcomes, we’re just kidding ourselves.  Maybe it’s time to use a different approach.  Maybe it’s time to use a different model. 

Teamwork is when someone must subordinate personal aspirations and the leader wins.

Teamwork is a joint action by 2 or more persons or a group, in which each subordinates his or her individual interests and opinions to the unity and efficiency of the group.  This does not mean that the individual is no longer important; however, it does mean that effective and efficient teamwork goes beyond individual accomplishments.  The most effective teamwork is produced when all the individuals involved harmonize their contributions and work towards a common goal.  In order for teamwork to succeed, one must be a team-player.  A team-player is one who subordinates personal aspirations and works in a coordinated effort with other members of a group, or a team, to strive for a common goal.   Businesses and other organizations often go to the effort of coordinating team building events in an attempt to get people to work as a team rather than as individuals.

Collaboration – there are no leaders.  Everyone wins.

Collaboration is a recursive process where two or more people or organizations work together toward an intersection of common goals — e.g., sharing knowledge, learning, and building consensus is an intellectual endeavor that is creative in nature.  Collaboration does not require leadership, and can sometimes bring better results through decentralization and egalitarism. 

This is an image of a structure that was used to create a philanthropic organization based on the idea of collaboration.  Project Red Dot (www.projectreddot.org) was established in 2008 as a way for individuals to work towards a common goal – in this case, to help people in Ghana, Africa connect to the world.  It has produced incredible results while using a minimal amount of resources because the model is based on collaboration.

I’ve recently reconnected with Doug Mendel and I’m attempting to set up a similar structure to help his orgainzation (www.dougmendel.com).  By combining the right combination of talented, motivated and resourceful people, a tremendous amount of progress can be made while using little or no resources.  In the case of Project Red Dot, they’ve been able to re-deploy laptops that would have ended up in a landfill.  In Doug Mendel’s case, he moved a fire truck from Colorado to Cambodia.  Both used the same model.  Both yielded amazing results.

My question is – how can YOU use this model to reach your goals and aspirations?

Last Thursday was an indulgent day for me.  I spent it with my friend, Simon Sinek and a group of fellow entrepreneurs (EO).  For those of you who’ve had the chance to see Simon speak, you’ll understand what I’m about to share.  For those of you who haven’t – well, you owe it to yourself to find a chance to see him.   Simon’s sole mission is to inspire others into action.  If I were to draw a picture of this it would look like this:

Inspiration is something that’s difficult to describe, yet we all know what it feels like.  This is because inspiration comes from the part of the mind that words have a difficult time describing.  A good analogy is this: how would you describe the color red to someone who’s been blind their entire life?  

What’s so special to me about inspiration is the effect it has on people and their actions.  It’s inspiration that drives people to imagine unthinkable ideas, and it’s inspiration that keeps them moving toward their vision.  It’s the same feeling that drove Thomas Edison to endure thousands of failures before he found the one filament that worked for his incandescent light bulb.

I belive it’s this same source of human energy that motivates entrepreneurs to pursue their dreams.  It’s the same source of energy that motivates employees and customers to follow a leader – even through the face of adversity.  Last Thursday, I was able to look around the room as Simon spoke.  I saw something very special.  There were over 100 people – most of them highly charged, busy entrepreneurs, and each of them were on the edge of their seat for two hours.  It takes something very special to do that.  It takes someone who lives a purposeful life and is not satisfied until he has inspired every human being on the planet.  I wonder how much energy Simon created last Thursday?  It would be interesting to know.  I know he inspired me – thank you, Simon. Thank you very much.

Visual Management is any system, process or tool that provides real-time information and feedback about the status of the organization, departments and job functions.  Think of it as the organizational nervous system that connects employees to the critical activities needed to achieve the goals of the business.   It’s also what many refer to as KPI’s (Key Performance Indicators).  Visual Management systems can take on a number of different forms from sophisticated database applications to simple white boards mounted on a conference room wall.  Over the years, I’ve learned a tremendous amount through trial and error as to what seems to work best and what doesn’t.  Here are a few tips that might help.

Think of a visual management system as the scoreboard for your business.  At a minimum it should communicate:

• What are the goals the organization, department or job function is trying to achieve?
• What are the key measures or units of work?
• How are we performing in relation to our goals?
• What prevents us from reaching our goals?
• And, most importantly…what are we doing to contribute to reaching our goals?

It sounds a lot easier than it really is.  Here’s an example of what I would consider a better than average visual management example.  I took this photo when I was on a “Junction Tour” at the headquarters of 1800GotJunk in Vancouver, BC.  They’ve done a tremendous job of integrating a number of parts of the business into the area where they hold their daily huddles.  They’ve included information and metrics related to the long-term goals of the business, as well as operational information about the day-to-day activities by department that are critical to the success of the business.   

Now, here are a few things to consider when you are either add or modify your huddle boards within your business (see example below).

•  First, make sure your visual management board is broken down into three specific sections – “how”, “why” and “what”. The “HOW” should illustrate the performance (daily) with daily metrics that are critical to your business.  This could include things such as “number of calls”, “conversion rates”, etc.  They are the activities that matter to your financial or customer service performance.  Be sure to include the “goal” rate for performance within the graph (see example below). 
• The “WHY” should be a metric that is related to the “HOW.”  e.g., if you were tracking your turn-over, the “WHY” metric would be results from the exit interviews you conducted as to why the employee was leaving the company. 
• Finally, the “WHAT” should chart what corrective “actions” need to be taken, who is responsible, when it will be done, and what resources will be needed. 
• Use graphs, pictures and diagrams whenever possible.  There’s a reason for the saying “a picture’s worth a thousand words.” 
• Display “expected” performance levels whenever possible.
• Don’t sweat it if your board doesn’t look polished.  It needs to be adaptable to your market and industry’s changing environment. 
• Require your people interact with the data.  A simple way to do this is to NOT use computer programs to generate fancy graphs (e.g., Excel) but rather to make them draw the results on a white board.  When they interact manually with the data they will have to “think” about it – which in turn will help them see when something needs their attention.
• Include as many employees in the process whenever possible – this includes the design on your boards, deciding where to post them, and how to communicate the information.

Good luck!  And please share you ideas and examples with us.

The news for US automakers didn’t get any better this past month.  GM reported January 2008 car sales plunged 51% compared to last year, Chrysler down 55%, and even the darling Toyota down 32%.

Yet, there was one car maker who reported an increase in sales for January.  Let me say that again.  There was a car maker who reported an increase in car sales for January.   Hyundai posted an impressive 14% increase over last year’s sales.  How did they do it?  It’s simple.  They listened to the customer and were willing to step up and deliver value to their customers.  

In a bold move, Hyundai announced their Assurance Program for new car buyers.  They are the first automaker in the U.S. to offer a return program that allows you to walk away from your loan or lease without having to worry about negative equity.  It lets you return your vehicle in case of certain life-altering circumstances.  In other words — they are simply saying “we’ve got your back, customer.”

This is an excellent example of a win-win strategy.  Gone are the days where it’s me or them.  Now, welcome the days where success will be measured differently – success will be measured by the ability of companies to develop innovative strategies that will garner market share and loyalty.  I wonder how much impact this program had on their customers’ psyches and the long-term loyalty they earned.

Of course the remaining automakers will play follow the leader — you can count on that.  But,  Hyundai gets the credit for being the one who first stepped up and delivered for the customer. 

For all entrepreneurs, this is an important lesson.  There is growth for companies who find ways to add value, and address the concerns of your customers.  Innovative thinking does get rewarded!

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I was first exposed to the concept of “core values” when I attended The Birthing of Giants program hosted by the MIT Enterprise Forum.  The facilitator, Verne Harnish, was instrumental in my entrepreneurial growth, and is someone I consider to be one of my top 5 influences.  It was Verne who first introduced me to the concept of core values and ideologies — what they mean and why they’re important.   Suffice it to say, I started to drink the Kool Aid by the gallon. 

Over the last eight years, I’ve worked tirelessly to define my own set of core ideologies, and incorporate them into each of my businesses.  Throughout this process, I’ve found it equally difficult to accurately portray a statement of core ideologies, as well as  effectively communicate that to all stakeholders.  If I had to give myself a grade, it would be a solid C+.  This isn’t because I’ve not given it time and energy, but because it’s difficult to find the exact words that tie to the concepts and the ideas that exist in our minds.  I believe this is because our ideologies are closely related to our purpose in life.  Not only is it hard to find the words, there is also the inability, for many of us, to articulate what our purpose is. 

My experience shows that any organization that grows and does not have a clear definition of their core ideology is putting their people and their future at significant risk.  As the organization grows, employee and partners are forced to “translate” the information they have to  make choices and decisions.  Sometimes the choices they make are not well aligned with what’s in the mind of the organization’s CEO.  Anyone who’s grown a business understands this dynamic.  The more you grow, and the faster you grow, the more you rely on your people to make the right choices and decisions – the ones that would be most consistent with your own ideologies.

Today I found the best example of someone who has brought their core ideology to life.  This is a picture of the core ideologies GotVMail.  David Hauser and his team have been able to bring to life – through a picture – the essence of their ideology.  I can only imagine the impact this will have over time.  If they’re able to effectively communicate this picture to as many people as possible, their success will be unlimited.  I am going to do the same for my new business because a picture is worth a thousand words.  Thank you for the inspiration, David!

For a few years now I’ve been telling my children – do what you love, and love what you do.  They are 8 and 11 years old.  I do this because I wish my father would have told me this.  These words would have saved me a tremendous amount of frustration and heartache throughout my life.   Early in my career, I made too many choices based on what I believed others wanted me to do or be, or what I thought I could gain from doing what I did (e.g., money, material objects).   Hindsight is 20/20.  I now realize that my happiness is more closely related to how I feel than what I own or what others think of me.   I’m lucky because I’ve found my sweet spot - that intersection between:

a) what I’m uniquely gifted at

b) what I’m passionate about

c) what my definite purpose is

This formula comes from a book I recently read - Finding the Sweet Spot by Dave Pollard.  I recommend the book to anyone who finds themselves struggling with their job or who feels uninspired with their work.  This is the perfect step-by-step guide for discovering responsible, sustainable, joyful work.

For the millions of Americans who find themselves unexpectedly unemployed, you are now in a unique position - you are now able to make choices about what you do next, and about what you put your time and energy towards.  I understand that it’s easy to think of this as something awful, but you can also just as easily consider your recent misfortune as an opportunity to make changes in your life that will lead you to satisfaction and happiness.   If anything else, think about what it is you would do if you could do anything.  Think about what your gifts are, what you’re passionate about, and what your purpose is in this world.

This is the location of the “sweet spot.”

WARNING – THIS EDITORIAL CONTAINS LANGUAGE WHICH MAY NOT BE APPROPRIATE FOR CHILDREN. 

VIEWER DISCRESSION IS RECOMENDED!

This morning I sat down to write about Demetri Martin.  He combines two things I’m passionate about: Visual Thinking and Humor.  Visual Thinking, because it’s easier to communicate information visually, and Humor, because it’s a universal remedy for crappy moods.  Combining Visual Thinking with Humor is, in Demetri Martin’s own words, “Crazy Awesome.” 

So, I settled into my favorite chair with a cup of coffee in hand and began to search for my favorite Demetri video on YouTube.  If I’ve watched it once, I’ve watched a hundred of times.  My kids have memorized all the jokes.  Hmm…I can’t seem to find the video.  I search my usual key words  “Flip Chart Comedian” (a.k.a. Demetri Martin).   Nothing.   What the %$^&?  I watched the video on YouTube just a few weeks ago.  Where did it go?  After 30 minutes of searching without success, I get this message on YouTube:   This video is no longer available due to a copyright claim by Viacom International Inc.

Where do I start?  I mean - I’m excited and happy for Demetri, as I’m only guessing that he has worked his ass off touring the country, sharing his “Crazy Awesome” gift with audiences who are looking to laugh.  His videos were all over YouTube.  They made people happy.  Getting his own TV show is a great accomplishment.   Note:  This is the spot were I was going to paste the information about the premier of his new show “IMPORTANT THINGS” on Comedy Central but the lawyers at Viacom International won’t let me copy it from his web site.  So I’ve made my own version for your enjoyment.

I’m happy for Demetri, but I have a hard time with “Win-Lose” situations.  A big part of Demetri’s success was, in large part, a result of the viral nature of social networking, as well as YouTube.  People would record his comedy from the television, and then post it on YouTube where millions could watch.  It was YouTube that put him in a leveraging position to sign a contract with Comedy Central for his own TV show (Viacom).  When he signed this contract, he agreed not to let anyone copy the content because it was now the property of Viacom. 

That rubs me the wrong way.  He used the free viral social network to attract his audience, and then he removed a factor that was a big contributing part to his fame.  This is another example of the natural friction that exists between the World Wide Web and the old regime of old-school media giants (e.g. Napster, and the recording studios). 

 The rules are changing.  In the future, success for companies and artists will look different.  This doesn’t mean anyone (Viacom or Demetri Martin) should stop making money for what they do.  Rather, consider changing how you do it so that everyone wins.   I only wish that Demetri would have tried to find a way where he could have his fame and money and not throw his integrity out the window.  But who am I to judge?  All I want to do is share my gift with as many people as I can.  If I’m able to find success along the way, then that’s a bonus.  

In summary, today made me remember three important things:

1. It’s good to laugh.  Laughing makes us feel better.  It helps to drain daily stresses. 
2. All you need to connect with others is a pen, a piece of paper and your imagination – with that anything is possible.
3. Beware the ”Me Monster.”  

So, instead of the regularly schedule video clip, I now give you Brian Regan (thanks for keeping it real!).

httpv://www.youtube.com/watch?v=OYxWcU5n15E

Someone's Making Money!

Papa Murphy’s – a Vancouver, WA based chain of take-and-bake pizza stores, posted a 17% increase in revenues for 2008 and also announced that they will be opening 100 new stores over the next five years.   Good for them!  They are clearly delivering value to the market place (no pun intended) by saving people time and money on their meals.

We are experiencing the most dramatic shift in consumer behavior since the Great Depression.  Savings are up and consumer debt is declining for the first time in the history of debt.  And, with this shift will also come a shift in consumer beliefs, attitudes and perceptions.  When consumers consume, they are exchanging their money for a combination of time and energy.  This is a calculation that happens in their minds, and consumers are constantly balancing the trade-off between how much something costs and the time and energy it gives them. 

Here’s a simple example: If you were planning a trip between Portland, Oregon and Washington, DC how would you get there?  The majority of you would fly.  Why?  Because flying represents the most efficient means (time, energy for the money) of travel.  You could drive, bike or walk.  But when you place any amount of value on your time and energy, that makes those options pointless.  Below is a chart I made that estimates the amount of time, how much exertion, and what it would cost for each of the modes of travel. 

You would need a compelling reason to travel by any other means than airplane.  This example just illustrates the fact that consumers constantly balance these three things when making decisions about what they buy.  As behaviors changes, so does the need for organizations to adapt.  If your business no longer adds value in the eyes of the customer, then you had better start to find a way to change.  People will keep spending their money, but are likely to place more value on what their time and energy are worth.

If a picture is worth a thousand words – what’s a video worth? I’ve been a big, big fan of visual thinking for some time now.  Simply put – visual thinking is communicating information with pictures, symbols and graphics.  I first learned about the importance of visual systems when I started to dive into my Lean journey.  Check out the video below.  It’s a perfect example of how to use pictures, symbols and graphics to effectively communicate complex ideas and information. 

httpv://www.youtube.com/watch?v=9hIQjrMHTv4

Here are the top reasons why I LOVE visual systems and thinking (in no particular order):

1.  Sometimes it’s easier to show a picture than find the right word.

2.  We process the majority of information through our eyes.

3.  Graphics cross over cultural and language barriers.

4.  Visual thinking uses more of your right brain which has a higher propensity for addressing complexity and ambiguity.

5.  Creativity is a right brain activity.

6.  Using pictures and combining symbols, you can communicate 4x more information. 

7.  People respond better to pictures than to text or data – why else would facebook have such a focus on photos?

8.  All of our innovations are created in our mind’s eye (hello, visual too).

9.  Using visual thinking you can easily break problems down into the 6 W’s (who/what/how much/where/when/how/and why) by using pictures.

10.  All you need is a pen, paper and your brain to make it work.

If you haven’t read it yet – go today and pick up The Back of the Napkin.  It’s one of my top 5 books in the past year – it will change how you communicate.  Dan Roam - if you see this, I want to meet you!  Get it?  See this?  I like funny too.