Inventing Sails

My CEO and I were arguing as we drove north along Lake Shore Drive in Chicago. He was concerned that I was too focused on insight at the expense of execution. As he put it “95% of the people in organizations are just pulling on the oars, they don’t need insight.” My response was to ask where did sails come from if everyone was pulling on the oars?

New ideas are scary things to most organizations and to most executives. Managers like order. For all that we praise entrepreneurs in today’s world, we get very uncomfortable when too many ideas are floating about. Most of us are, in fact, pretty comfortable pulling on the oars as long as someone is pointing towards something that looks like a worthy destination. We all point and laugh at the person playing with tying a sheet to an old oar to see what happens. Until the oar turns into a mast and everyone wants one of their own (or says it was obvious all along).

The people who want to play with things to see what might happen are a source of constant anxiety for those who favor order. They are also the source of great rewards. Managing the balance between risk and reward has vexed those in charge for as long as there have been people in charge.

In a slow-changing world, you can manage this problem by carefully limiting and constraining those who like to play with things. Create an R&D lab and wall it off from the day-to-day operations of the business. Set up a new business development group or an innovation lab. Call it what you want. Just keep the crazies under control and out of the control room.

We don’t live in a slow-changing world. We all have to learn to live with a degree of craziness and take ownership of some level of control. There’s no way to simply pull on the oars and let someone else worry about how to steer.

Things you can’t teach

In high school, our younger son rowed crew. More specifically he was the coxswain charged with managing and navigating the shell with eight rowers in front of him. It was his first race ever after several weeks of learning the basics.

We drove to Toledo to watch the regatta. Not only was Derek a novice rower, we were novice rowing parents. We found our way to the river and, with the help of other parents, figured out which boat was Derek’s as it proceeded along the 2000 meter course. This was a “head” race, which meant that the boats were racing against the clock rather than against each other. You could see boats strung along the course all rowing furiously.

As Derek’s boat passed by at the 1500 meter mark they came up on a buoy marking the course in the river. The rower in seat 2 caught the edge of the buoy with his oar, popping the oar out of its oarlock, and stopping the boat dead in the water. Somehow, Derek and the rowers restarted the boat, now with only seven oars working, and finished the race. Working our way down to the finish, we learned that the boat had managed to finish in third place. The rower in seat 2 eventually needed ten stitches in his forearm but the crew was thrilled with the results of their first ever race.

After the race, I was talking with another dad, whose son was a couple of years older. Kris’s comment has stuck with me;

“We can teach Derek not to hit a buoy. What we can’t teach is the presence of mind to settle everyone down, restart the boat, and finish the race.”

A few years later, that boat won a national championship.

I sometimes think that effectiveness hinges on understanding things you can learn but can’t teach.

Striking a dynamic balance

Bottom Line Program Cover

During my second year in business school, I co-produced the annual student variety show. My co-producer and I ended up dipping into our own shallow wallets to cover budget overruns.

To the best of my knowledge, it was the first time the show produced an artistic success and a financial failure. That was a decidedly un-business school result. Although we named the show “A Bottom Line” in homage to “A Chorus Line,” we lost sight of our bottom line in pursuit of our vision.

It’s taken me years to sort out the lessons contained in this experience. At a systemic level, it’s impossible to cleanly separate efficiency and effectiveness. It might have its merits as a rhetorical strategy but real world situations demand that you attend to the balance between them.

Efficiency concerns dominate because we’ve worked out most of those details. Effectiveness was the purview of a handful of decision makers near the top. Now, effectiveness matters to a wider swath of the organization. I believe this is true but, ironically, I don’t know how to make that argument effectively.

Yet.

Operating from Values

 

Photo by rawpixel.com from Pexels“We need you back in the office now, Anthony’s team just got fired.”

Although not quite the crisis it might appear, I still had a problem to deal with.

Anthony was one of my partners. He was leading a training simulation with a team of our new consultants. The simulation was a recreation of one of our client engagements. We had taken a 12-week project and compressed it into a one-week scenario. The scenario attempted to recreate both the business issues and the look and feel of working in the field.

Anthony was leading a team of six junior consultants. The team would interact with the client via email, phone interviews, and face-to-face interactions with “clients.” The “clients” consisted of my small team manning the email and phones plus a couple of retired senior executives playing the role of the client CEO and CIO. We had a timeline, an outline of how the week should play out, plus a collection of documents and exhibits that could be shared with the consulting team as the work unfolded. Think of it as a giant case study that would unfold as the week progressed. It was more of a map than a script.

Whether a map or a script, there was no part of the scenario that included pissing off the client enough to get fired. Nevertheless, Anthony managed to do precisely that on Day 2. Moreover, my client CEO had ordered Anthony to vacate the premises immediately.

Bad time to have gone to lunch.

After a bit of strategizing with my team, we broke character and I facilitated a debrief of the “firing” with Anthony, his team, and the client. This offered the junior members of the team a peek into the dynamics of managing client relationships they wouldn’t otherwise have seen and gave us a path back into the simulation for the remainder of the week.

The ultimate test of this training strategy came a few months later as team members went out into the field for real client engagements. Their consistent report was “we’ve seen this before and we know what to do.”

Our training design was born of resource limitations. As much by luck as by design we had stumbled on deeper lessons for our work. We were learning how to navigate environments without a script and without rehearsal time. We were developing perspectives and practices oriented to an improv logic as the world demanded more responsiveness and adaptability.

I’ve come to believe that navigating this environment requires a shift in perspective and a set of operating practices and techniques that can be most easily described as improv adapted to organizational settings.

In place of detailed scripts, we were learning to operate from core principles and shared values. Our learning environment gave us a safe space to experiment with and work out how to apply those principles and values.

Racing ahead to what?

I went to an exceptionally good high school. That was courtesy of a nun in my parochial school who recognized I wasn’t being sufficiently challenged in the school I was in. That school got me into Princeton University. Moreover, it got me credit for enough college level work that I was on track to graduate in three years. I opted to major in Statistics on the theory that I could use that to pursue a graduate degree in any number of fields.

This seemed like an excellent plan for a kid from the Midwest on a mix of scholarships, my parents digging deeper than I ever appreciated, and work study jobs (including one as a dorm janitor). Going into my second year, I found better jobs as an electrician and stage carpenter at the university’s McCarter Theater. I also made time to get involved in student theater, so I wasn’t just grinding away at classes. Sleep was occasionally hard to come by but that was more about enjoying the experience than about working.

Midway through my second year I started to ask what was next. Not whatever argument I had made to get permission for my three year timetable but what was I actually thinking would happen when I did graduate. In my quest to move through the process as efficiently as possible, I had given no real thought to what that efficiency would buy me. I was approaching a finish line to one race with no real sense for what the next race was going to entail.

Nor did I have any words or concepts to bring to bear on these questions. My father had gone to college on the GI bill after serving in the Navy during WWII. He was the only one of his siblings to get a college degree. I was the first in my generation to think of college as a path to follow. My cousins were baffled; why would anyone spend the time and money for college when there were good union jobs to be had?

There was a huge amount of tacit knowledge I lacked. I was so ignorant I wasn’t even aware that I was ignorant.

Fortunately, I did something sensible despite my ignorance. I hit the pause button. I dropped back to a four year timetable. Slowing down was a necessary step. It bought me time to start figuring out the questions I needed to be asking.

Whining or Learning

In the early weeks and months of getting Diamond off the ground, we were intentional about the kind of organizational culture we wanted to create. Within the founding group we had decades of cumulative experience, mostly in organizations known for the strength of their culture together with a sprinkling of less pleasant experiences. 

In those early days, we spoke of “getting the band back together.” We were based in Chicago after all, so the Blues Brothers reference was a natural. 

Of course, what we were trying was more complicated. We weren’t getting _a_ band back together so much as we were trying to create a super group combining and mixing the talents of people who had been stars in their own groups. 

Consulting egos are rarely small; possibly never. Everyone had an opinion, often several. Whatever status or authority we might have had in prior organizations was politely acknowledged and promptly ignored. How things were done at McKinsey or Accenture or Booz or wherever was evaluated on the merits not the pedigree. 

More often than not, the differences were more cosmetic than substantive. Over time we were cobbling together a creole consulting language of our own. 

Sometimes the noise levels got out of hand. After one incident, one of my partners ordered up and distributed “No Whining” buttons to all of us. 

It was good for a laugh and a boost in morale. And it did help lower the temperature on some conversations. While I had a fraught relationship with this partner, I had also learned that their instincts routinely beat my analyses. Disrupting a conversational cycle before it degenerated into a shouting match helped. 

Unfortunately, “no whining” too often defaulted to no conversation at all. Labeling inquiry or pushback as “whining” was equivalent to “shut up and do it my way” or “if you can’t handle this, we’ll find someone who can.”

These sentiments might be marginally acceptable in some circumstances. If the work is sufficiently routine, problem solving can devolve into selecting a workable answer from a menu of known responses (I was about to suggest that you Google “the bedbug letter” but Snopes.com has a more interesting take—FACT CHECK: The Bedbug Letter.

I don’t live in that world. Neither did Diamond. And, if your work is knowledge work, neither do you. You get the problems that don’t have clear solutions. Which means you have to listen more carefully; to those you work with and to yourself. 

You must learn to distinguish between “whining”— a vague complaint that something isn’t fair—and the spark of discomfort signaling learning that needs to happen. Forbidding “whining” makes it harder to recognize the learning signals embedded in discomfort.

Muddling through as smart strategy

There’s a certain subset of academic articles that are as, or more, famous for their titles as they are for their insights. Charles Lindblom’s “The Science of Muddling Through” has to be on that list. Lindblom’s field was public policy but his insights are more broadly applicable. 

He starts with a simple enough observation; administrators don’t behave the way that theory says they should. Textbook decision processes of carefully articulating objectives, developing options, and selecting solutions that optimally meet objectives don’t show up in the wild. Real managers “muddle through,” making incremental changes and nudging complex systems in directions they hope will prove “better.” 

Lindblom’s insightful question was to wonder whether administrators weren’t as dumb as they looked. Theorists have the luxury of pretending that history doesn’t exist; real managers always start from Ken Boulding’s observation that “things are the way they are because they got that way.” The real world always imposes real constraints. 

The simplifying assumptions that economists and model builders must use to make their work tractable can be acceptable for simple enough problems. It’s dangerous to believe that the techniques that work for suitably constrained problems scale. Problems up the ladder aren’t simply bigger, they are more complex. That complexity transforms tractable problems into wicked problems.

“Muddling through” is what actually works; the primary metric for practicing managers. 

Making Room for Change

Image by Anita Smith from Pixabay

My undergraduate years were dominated by the theater. Most of my free time and a substantial percentage of what should have been class time was spent working on some aspect of the Princeton Triangle Club. By the time I graduated, I had done most every job backstage that existed and been elected an officer of the Club.

Shortly after I graduated, I was elected a Trustee of the Club. Members of Triangle that you are likely to have heard of include Jimmy Stewart, Jose Ferrer, Josh Logan, and Brooke Shields. My four years flowed into an additional ten as a Trustee.

That continuity gave me some perspective about organizations that I might not have gotten otherwise. This perspective had to do with history, tradition, and time horizons. At that time the club was about 90 years old. We had lots of history and history implies traditions. But I discovered a curious thing about traditions. For most members of the club, history was whatever happened during their four years.

There was no way to differentiate between a tradition stretching back decades and an accidental string of events covering your undergraduate tenure. I was frequently bemused and amused by how often I heard undergraduates tell me “this is the ways it’s always been done” about something first done three years earlier.

I suspect this had a lot to do with my focusing on the interplay between innovation and organizational change. The part of me fascinated by technology seeks out change. What new way have we dreamed up to make some piece of technology obsolete? Who needs a bank teller when we have an ATM? Why bother with cash when you have Venmo?

The Triangle Trustee part of me that sees a tradition crystallized out of a short span of experience is sympathetic about those who’ve just figured out how to swipe their credit card and are tripped up by the new card with a chip instead of a magnetic stripe. Doubly confused, perhaps, when the new card has both a stripe and a chip.

In a sense, we’re all stuck as undergraduates. Whatever we encounter is always “the way it’s always been done” as far as we can tell. It takes time and deliberate effort to separate the threads of useful tradition and accidental stability.

Sleep Deprivation is a Bad Management Strategy

It was shortly after midnight. The cast was seated or sprawled in the aisles in the house. I was onstage, clipboard in hand, with the Director, Choreographer, Band Leader, and Tech Director. We had just completed Tech Rehearsal. We opened in four days. We were about to do “Notes”, where the Director and others would walk through all of the things that needed fixing or adjusting. As Production Stage Manager, I was poised to capture all of those to dos on my clipboard. 

Milt Lyons, the Director, had been working with the Triangle Club since 1955, two years after I was born. Scarcely his first rodeo. 

We had worked together before, but I was unprepared for his very first note.

He deputized two of the cast to escort me to my dorm and put me to bed. I turned my clipboard over to my assistant and left with Milt’s deputies. Fifteen hours of sleep later I was back on stage. A bit of quick arithmetic indicated that I had been working on three hours of sleep a night for the preceding week. Nor had any of my professors in any of my classes seen me that week. 

This intervention didn’t lead to any sudden epiphany; I continued to make poor choices about how I managed my time and energy. But it did plant an important seed. A seed that did take root and eventually led to more respect for balance in creative work. We talk about knowledge work in abstract, cerebral, terms. Bodies are simply transport systems for moving brains from place to place. 

When circumstances tempt me to pretend that my brain operates in splendid isolation. I remember that moment. There’s Milt announcing that the health of an entire production needed one foolish young stage manager to go get some sleep.

Sharing a Pint

Photo by Marcus Herzberg from Pexels

My first job out of college was with the consulting arm of Arthur Andersen & Co. (which has since morphed into Accenture). Andersen invested heavily in training their staff and went so far as to buy their own college campus west of Chicago to house staff while attending classes. I spent many a day there as student and faculty.

Andersen may have been the only professional services firm to have its own liquor license. The training center was in the middle of nowhere and the partners deemed it smarter to set up a bar on campus rather than set hordes of recent college graduates loose after class. Days were spent learning the practicalities of auditing or computer programming. Evenings were devoted to knitting people into the culture.

I don’t know that that was a design criteria for the facility. It was certainly a result. After classes, students mixed with faculty, junior staff with partners. Over beers, the stories of successes and failures were told. Connections were made face-to-face that made later conference calls more effective. We were all turned into “Androids” and pleased with the result.

Two decades later, I’m part of a small core group creating a new consulting firm. There are about 25 of us at the start, refugees from Accenture, McKinsey, and elsewhere. But we aspire to much; our goal is to grow and compete with the organizations we had left. Six years later we have more than a thousand professionals across the U.S. and a foothold in the E.U.

We’ve all seen what investments in training and a strong culture can do. But we don’t have a college campus handy. We’re operating out of offices sublet from our lawyers. Our consultants, when they’re not at a client site, work from wherever home might be. Our only rule is that consultants must live near an airport large enough that they can reach client sites on Monday mornings.

One of the core mechanisms we used to create and reinforce a culture of our own was to convene All Hands Meetings once a month. Everyone came to Chicago. We did training and shared updates on the business.

It took some fighting with our CEO, but we designed the agendas with lots of time between sessions. And partners picked up the bar tabs in the evenings.

We did one more thing to jumpstart creating a culture out of nothing. We sought out “signature stories” of client incidents and events that represented the culture we sought. Some we shared in the formal agenda. Some we dropped into hallway conversations. Some we saved for the bar.