Sunday, February 12, 2017

Podcast Episode 4 Show Notes - Developing & Managing Products & Services with Sengul and Kubacki

AppsJack Podcast Episode 4 - Developing & Managing Products and Services

  • Recorded 2/11/17 in West Seattle
  • On the show
    • Eric Veal
    • Andrew Sengul
    • Christian Harris
    • Steven Kubacki
  • Part 1 - Butterfly effects
    • How do small changes and decisions ultimately create huge changes down the road
    • Need to innovate and change, continuous transformation is required
    • Kubacki
      • Past behavior predicts future behavior
      • A person's ego needs to be fairly flexible
      • Compartmentalization
      • Chaos and non-linear dynamics
      • People want to eliminate and reduce conflict
      • Idea of random eliminatation of people within a company
      • Fear of failure
    • Andrew
      • Example by Andrew of a single checkbox feature that crashed an entire system
      • Examples of the C: drive, NT, DOS and other legacy with in Microsoft
      • Q-DOS
      • Local Maximums work for a time and place but there's something better out there
      • Ego
      • "Very happy crews tend to produce very bland films"
      • Gravity well effect
    • Veal
      • Seduced by Success
      • Dead & Bloated vs. Struggling Entrepreneur scenarios
    • GM almost went bankrupt
    • Organizations build up inertia and baggage and legacy that prevents them from being successful now
    • Backward compatibility has held Microsoft back
  • Part 2 - Fixing Messes
    • Q: Can you think of any cases you had to clean up?
    • Eric
      • Acuson purchased by Siemens and the following merger
      • What are the challenges we see people facing today?
      • Competing forces of innovation
      • People are trying to develop things
      • People perceive development differently
      • Incubators and accelerators like Y Combinator to nurture
      • Feedback is a learned response, an interaction between the object and context
      • Sometimes you need to retract and shrink
    • Andrew
      • How entities connect with the public
      • Trump bypassing the media
      • There are those who want to develop and others who want to simply preserve statis
      • Entropy is part of any process
    • Steve
      • The more centralized and larger, the less flexible, adaptable and the more moribund
      • GE has a knack of creating new companies within itself
      • Negentropy
        • Systems are constantly building and getting larger
        • https://en.wikipedia.org/wiki/Negentropy
  • Part 3 - Planning and design
    • Eric
      • Planning is really boring
      • Want a balanced view across the portfolio
      • Need agile mindset
      • If we are trying to create balanced organizations, then why don't we design them that way?
      • Flexibility/Non-Linear/Yin/Chaos/Manual/Dynamic/Random vs. Control/Linear/Yang/Order/Automated/Programatic/Planned
      • Hire a random person
    • Andrew
      • Planning is a way of life
      • Scenario Engine
      • Helps to do many things at once and have multiple projects in many phases
      • Agile and Scrum can be quite bureacratic
      • Order and Chaos each has a seed of the other
      • Ask people to look at something from the perspective of a different person
      • Psychodrama
      • Fictional conversations
    • Christian
      • How effective your planning is depends on your experience of what you are trying to plan
    • Steve
      • Linear and non-linear intertwining
      • Planning is linear
      • The bias in many organizations is to move toward planning and linearity
      • How do you offset this tendency for bureaucracy?
      • Doing the opposite or "not-doing" is good to break the "linear set"
      • Example of Google's 20% time for innovation
      • Let go of the old and let the new arise
      • The pretending becomes automatic

Friday, January 27, 2017

26 Interesting Things About Modern Product & Service Development

We are prepping for the February Podcast, which will be about Developing & Managing Products and Services.  It's an exciting and fun topics.  Here are some of the highlights from the meetup that we are considering for the Podcast.  Please provide your input and ideas or what you would like us to cover.  What challenges do you have with the topic?  What blind spots are there?  What practices and principles have you used that worked?


  1. Chaos Theory and Non-Linear Dynamics
  2. The Developing and Managing Products and Services area from the APQC PCF (link
  3. Known small effects that have lead to huge changes, issues, problems, catastrophes or events: the butterfly effect, the straw that broke the camel's back and other tipping points. 1 degree shifts.
  4. What are elements, tools and practices of the modern practice of product and service development?
    1. In Software
    2. Physical Products
    3. Services
  5. Which companies are making the best and most innovative products today and how?  Why?  For example, the DJI Mavic Drones, South Park, Air BnB, Uber, who else?
  6. Who is providing the best service today and how?  What are the elements of it?
  7. The importance of decision making and how differences in beliefs or decisions can grossly impact the quality of success on a project.
  8. "Incantations" and parrots.  How many people are simply repeating others and not questioning the cause or underlying assumptions that fed into what they currently see or perceive?  Copy cats might not and should not last. (Developing the deepest and most defensible niche).
  9. The topic of "Everything dies or is dying"
  10. Application and Product Lifecycle Management, Phases of Product Lifecycles (Plan, Define, Realize, Commericalize, Phase Out) and it also includes Supply Chain Managmeent and Customer Relationship Management (And SUpport Processes)
  11. Is PLM the core engine of value and growth within a company (probably)?
  12. Techniques for being able to reasonably work with complexity or complex systems, ideas, concepts, etc.
  13. What are the problems and challenges in working with complex systems?  What are the tools for overcoming their challenges?
  14. Attribution: how it might be hard to determine what really was the original impact, actor, etc. that caused a process to develop into what it is today or what it would / could become.
  15. Why did "non-linear management" get so many eye-rolls when shared with the group?  Isn't that what we're talking about after all?  Too much of a buzzword?
  16. Challenges with "insight alignment" and how we can have and align group insights for optimal performance, value and outcomes.
  17. Entropy and counter-entropy systems.  Organizing around an increasingly chaotic world.
  18. "An organizational immune system" and what it would be.  What are its properties and methods?  
  19. Product intelligence vs. business intelligence.  Is one bottoms up and the other tops down?  Do both matter?
  20. Thresholds and control systems, alerts and alarms for responding to important conditions
  21. The need for "crossing domains" for innovation and creativity.  Yin and Yang as opposing forces that somehow find balance in the middle.  If the world could be seen as these components, what would they be and how would they be managed?
  22. Which metrics matter and how would we identify missing metrics in our model before it was too late?
  23. Divine flaws, fractures, and "seeds of disaster".  Are they really there?  Does this feature really exist in everything?
  24. The need to "go up one level of abstraction" and to use data, models and visualization for managing.
  25. Failing fast and failing slow.  Combating the forces of failure and death in business.
  26. Two separate forces in innovation 1) truly producing something new and out of context 2) integrating that product/service/thing into an existing company, product line, market, etc.  What do we call these practices?
Tune into Episode 4 of the AppsJack Capable Communities Podcast in mid February '17 to hear more about all of these topics.

Thursday, January 26, 2017

Applying Chaos Theory to Advance New Product and Service Development

We had the delight of being led in discussion by Dominic Wong, MS, MBA over the topic of Chaos Theory, one of his favorites.  We wanted to review APQC step 2 "Develop and Manage Products and Services' through this lens and it was a blast.  We were joined by about ten amazing contributors.

Dominic started the conversation with a definition of chaos theory and the question, "What is one change or issue that had a very major and surprising impact? where the size of the cause looked small but wound up having catastrophic or huge difference?  He asked us for an initial condition in our experience at work or in the world where a very major impact was made.

Software Developer and Systems Thinker Andrew Sengul gave us the example of early teams at Microsoft that gave rise to a pattern of innovation that is still oftentimes seen today.  Although imperfect, it became the standard for many other teams.  But there is opportunity to change and improve upon that model. And those changes are being seen within the Microsoft organization as we speak such as the removal of a separate Quality Assurance function in some groups.

"Decisions are the butterflies shaping the world."

Steve Kubacki, PhD said that many of us are just repeating incantations we have heard of the same thing; that many of us do not know or necessarily use a scientifically rigorous method that helps us see and understand the world appropriately.  Since people are oftentimes irrational, Steve also does not believe in Game Theory or that it is very closely associated with Chaos Theory or Non-Linear Dynamics, the chosen topic for the evening.

Speaking of death and disaster, Richard asked, "What are the indicators that something has shifted so completely that we cannot win against it?"  It's a good "how would you know" question.  There is an issue of identifying unknown indicators and their relationship to the model or system.

In talking about complex systems, Bruce Follansbee offered that sometimes it feels like, "There are too many variables for mathematics." ie we need to at least try to keep it simple, not over complicate or apply a single tool (math) to all problems, decisions and domains.  This is the benefit of brains and decisions and information, that we can filter it out and keep acting based on assumption.  Clearly this strategy is not always good but it is very often necessary rather then being plagued by analysis paralysis, being too myopic and indecision, fear, uncertainty and doubt (FUD).

Chaos Theory can be thought of in a couple of ways A) "we don't know" ie chaos or B) "we don't know why" ie wtf.

I shared a Wikipedia article about Non-Linear Management to the group and there were a lot of grumbles about how much of a joke it seemed.  They weren't buying into it.  They were skeptical.  Steve has previously raised ideas about many of the companies in the USA actually being co-ops and not tops-down, shareholder-owned hierarchies.  Steve highly recommended the book Altruism: The Power of Compassion to Change Yourself and the World by Matthieu Ricard and suggested that many of the assumptions that are current world and economics are based on are false and require close re-examination.  Steve does not believe that people are as savage and out for blood as many of our economic principles and societies may suggest.

JJ Dubray showed up a little late and also right got down to the point: what's hard about product and service development is "insight alignment".  He said that the issue is like the elephant and the blind man that each insight and perspective looks like a new and entirely separate thing but it's not.  Aligning the perspectives, beliefs, etc. of the authors and audience is a challenge and requires many schools to bring it all about.  JJ also referred to the social pressures that get in the way of the alignment for example, an entire organization having to do what the boss wants where there may be blind spots on that person's vision.

JJ and I talked privately about his love for the DJI Mavic drone.  He thought it was a simply amazing product, and I agreed.  We were both very impressed that so much technology could be available to the public for under $1,000.  We agreed that there needs to be the right product at the right price.  The price property helps people size and understand whether the object is an elephant or a mouse.

Tom was new to the group and had a lot to add.  He has been an executive over engineering and R&D groups for decades and said he's never had less than 100 engineers working for him at any given time during the period.  We diverged into politics and Tom highly recommended Season 20 of South Park as a genius rendition of a product.  The season encompasses different and fascinating, poignant aspects of the 2016 USA Presidential Election.  Tom had another good comment about entropy as a driving force.

The idea of the importance of an immune system for your organization was brought up.  Organizational Immunology appears to be the topic.  I have blogged in the past about good project management being a surgical skill.

Business Intelligence, Product Intelligence and the Internet of Things (and their associated instrumentation and telemetry) are a few big topics that are very relevant for containing the chaos and bring some degree of control and assimilation to complex systems.

Richard firmly expressed his belief that all systems are yin and yang; that they have a little piece of either edge on the other side.  He had a good quote when he said, "When you cross domains, genius happens."

We all agreed there was something to the validity of yin and yang in thinking, systems and design; that it may be an immutable truth.

Richard shared with us a model he has used of applying chaos theory to different areas. I asked for him to share it with me.  XXX

We talked about what to do on the podcast this month and the ideas were (from Tom) to do a comparative study of businesses like Uber and AirBnB: what makes them unique?  Valuable? Stand out?  Risky.  Does their existence represent a larger pattern that could be leveraged for profit?

Someone claimed that chaos is a symptom of something that is not understood and I wondered how we would / could reasonably attribute outcomes to small causes.  It seems to be an issue of human vision, insight and thought at the macro and micro levels.  For example, the butterfly flapping its wings (micro) causing the hurricane (macro) and the question is how would we ever know or realize which butterfly, where and when?

Tom referenced Catastrophe Theory quite a few times.  To me, it was reminiscent of Steve Kubacki's claim on the third episode of the podcast that things and systems are created with seeds of success and seeds of disaster.  Around this same time, Richard was trying to explain the Russian Doll model as a metaphor used in design.  From wikipedia, "Matryoshkas are used metaphorically, as a design paradigm, known as the "matryoshka principle" or "nested doll principle". It denotes a recognizable relationship of "object-within-similar-object" that appears in the design of many other natural and crafted objects. Examples of this use include the matrioshka brain and the Matroska media-container format."  Richard referred to the "seeds of disaster" as fractures that are put into systems at their inception.  He calls this the divine flaw(s).  Perhaps by analyzing and understanding fractures, more robust systems can be realized.  Richard also talked about the death process of a business, product, person, etc.

What was behind the driving need, reason and rationale for a creation can come into question at some point (hopefully very late) in a product's life and those base assumptions need to be re-examined and re-questioned.  One clear form of risk is never testing assumptions or having those assumptions become the divine or fatal flaw that leads to an organization's death.  Through diversification, organizations are able to balance out some of these losses at the aggregate level.

Mr. Webb talked about the transverse properties of love (to be loved, someone has to love you), leadership and value.  To him, these principles were also immutable.

Richard shared with us the idea of needing to "go up one level of abstraction" to understand the system.  This makes sense and is in some ways "not being able to see the forest for the trees".  It can be complex, challenging and in some cases seemingly impossible to continue to climb this latter of abstractions.  For example, how would we ever know that we were abstracted enough? Or that we were not making grave assumptions that we were indeed abstracted enough?

Richard liked the idea of suggesting that 'there is no center' and that many people seem to have an issue with this concept.  I don't.  But I think it's a good design principle.  See The Starfish and the Spider for writing about this topic of the value of distributed organizations.

Richard used the phrase "to collapse the quantum field" in the context of making decisions, meaning that people reference a quantum field at pre-decision time (are operating at the macro or many level) and then collapse that into a decision, bifurcation or fork to simplify and move on.  Here's a bit more on quantum field theory and the idea of collapsing.  He also talked a bit about String Theory and the 11th Dimension.

Another comment from Richard was that "things fall for thousands of years".  He referenced and that there are essentially forces where everything and everyone is dying.  And some of these forces can be at least be acted upon and perhaps in some cases even overcome through technological solutions.  But is anything at all truly sustainable?

Andrew brought up the idea of "two roles" in technology organizations that create a conflict that has found its way into the world, at scale.  The two roles are A) implementers and B) designers.  He said they each speak different languages and have different values.  Andrew also had the word of the day when he used moribund, "in terminal decline; lacking vitality or vigor."  Richard was pleased with the word.  I suggested that this same discord is true between many groups and not just those in tech which leads to even greater disorder.

Another possible angle for the podcast and further discussion is the question, "What are the secrets of the best product lifecycle management organizations?"  Siemens has an entire group dedicated to the practice.  I worked with in a PLM group at Siemens for six years and learned a ton there.  Application Lifecycle Management (ALM) became a popular buzzword a few years ago and has generated products by big players like IBM, HP and others.

Another idea for the podcast is "Which KPIs to look at for optimal performance?"  Ted Clark focuses on this issue, even has classes about it and Richard Webb is very passionate about the topic.  I always wonder if we have a metric "harness" or view on the producess, product, etc. how we know our blind spots until they happen?  It is hard to see very accurately into the future.

There was general agreement that there are two main phases of PLM: 1) innovation and prototyping: building the thing for the first time, perhaps in isolation and 2) integration and normalization between that product and the rest of the company and product line.  The thing needs to fit into the overall vision, strategy, and customer expectations.  These two forces in many ways can work against one another and create a natural tension.

Check out our meetup group to join us for an upcoming conversation.  And listen to our podcast, the AppsJack Capable Communities Podcast, where we step through the APQC model seeking insights we can apply to our businesses, lives and ideas today.



Monday, January 16, 2017

Episode 3 - Business Skill 1 - Develop Vision and Strategy - Part 1


AppsJack Podcasts Episode 3 - Developing Vision & Strategy - James Murray, Steven Kubacki, Christian Harris

AppsJack Podcast Episode 3 - Developing Vision & Strategy

January 14, 2017
Seattle, WA

From the Guests

Eric
  • Vision is Step 3 of Kotter’s 8 Steps and the beginning of the APQC PCF.
  • Name and brand shouldn’t change very often
  • Linear path thinking isn’t going to be great; still need to be flexible and shouldn’t think of the vision and mission
  • Businesses have many interfaces (people, products, services, collateral)
  • You have an ability as a leader to embody what you create in positive ways
  • Products and services should also embody the products and services
James
  • Need to get clear on purpose and reason
  • Leadership determines the environment and culture
  • Culture should attract the right people and repel the rest
  • Tactics can change always, no big deal
  • Differences between what people say and what they do
  • Everything in terms of the vision should infiltrate and align inside and out
Steve
  • Cancer App
  • Virtual Reality
  • Vision, Values, Strategy, Mission
  • “Anchoring”
  • Leadership and leadership style/personal style is pretty important
  • Be aware of who they are and what they’re like. Be clear of traits and values.
  • Vision driven to some degree by your product. “Depends what you’re making.”
  • Product can (maybe should?) drive vision
  • Short- and long-term visions
  • Some of the values get thrown around but don’t really mean anything and lead to inauthenticity and a bad perception from the outside
  • First, people need to be clear about themselves
  • The window dressing will later come to harm you
  • People have to feel and believe in the vision and be on board
Christian
  • Values inform the vision
  • Strategies likely more dynamic and visions
  • Need to realign and adjust on a recurring basis
  • Learning can re-inform strategy and vision and values
  • Differences between SMB and Enterprise in even what these things mean
  • Can’t be on paper, must be lived out

Generally, Further Pursuit and Takeaways

Questions to Ponder and Review
  • Why is sharing a vision step 3 in Kotter’s 8 step leading change process yet the beginning of the PCF?
  • What are the fast- and slow-changing aspects of vision and strategy (what should be fixed and/or set in stone vs. things that are more malleable and flexible?)
  • What are the most important “interfaces” of business? Examples include the leadership, employees, products, services, collateral, etc.
  • What do we call the relationship and overlap between the value found in a company’s products and within its leaders and founders?
  • How does a company’s choice in product line(s) impact their mission or vision?
Points
  • Adjusting is not a word that came up but I think it’s a very good one to describe the right mindset and behavior for business and life.
  • The importance of culture, per se, and how it should both repel and attract at the same time (multi-modal and dynamic)
  • The center of it all hinges on the quality and decisions of the individual founder.
  • Creating a shared sense of positive feeling and believing are important outcomes that the company’s “designers” (founders) should seek to create.

BRAND, NICHE, DIFFERENTIATION, APPLICATION

Eric

  • Brand as insignia of values and vision
  • Things can and should be by design and intentionally, not by accident or luck
  • Brand and culture are quite similar concepts
  • It helps with storytelling
  • Questions become more analytical once niched and focused
  • Want to be specific to your audience then, localize then
  • Can tell and explain the narrative far better at a lower, more specific level
  • The high level stuff is about the supply side. But there’s also a demand side that needs to align. Story telling a glue and skid between the two.
  • Can sell better with niching
  • Localize your value to local market
  • Need an operational and supply side view for employees

James

  • Niche and focus similar
  • Can always niche up once you have niched down but if you haven’t niched down further, then it’s hard when pressed and requested
  • Story about a guy that sold databases to cities under a specific size doubled his money every time he narrowed his niche
  • Costs less to niche down (more efficient)
  • As a leader I have to build a culture that will keep my employees aligned with me and be proud to work with me
  • We need to have a vision and mission that is for employees and customers

Steve

  • Nike works because it is different from everyone else
  • “What can we do that’s different?”
  • Developing a narrative helps differentiate and create a sense of authenticity
  • Can become too narrow
  • Having the right narrative is pretty important
  • Must also attract employees
  • The employee and talent attraction part must be part of the strategy, not just thinking about the market (must be holistic) or about all critical stakeholder types

Christian

  • The default mentality is shotgun approach and see what sticks
  • Don’t want to leave your entire livelihood up to chance
  • Have to be niche to attract the right people
  • Real estate examples and their effectiveness
  • The power of niche marketing
  • Many similarities between attracting customers and employees (simpler if these things align and there’s not a left and right hand)

Generally

  • Other than personal/corporate values and qualities, brand is another central theme to the identity of the organization.
  • Specificity of vision, finding and talking about a niche, and localizing are great tools for better storytelling, sales and connecting to your audience.
  • Storytelling is a currency for communicating value from the supply side to the demand(ing) side.
  • Once you ‘niche down’ you can always go back up, but if you haven’t niched down far enough you are at risk to lose your audience.
  • The vision, values, brand, etc. of a company should be equally appealing to both customers and employees because both need to be excited, engaged and believe.
  • Strategies need to be inclusive and integrative of many aspects both internal and external but also need to be very simple and easy to communicate.

CULTURE

Eric

  • Culture is the swamp
  • You’re creating a swamp but you want the swamp to be more like a hot tub
  • Culture can’t be static or stay the same, they are necessarily dynamic

Steve

  • Culture should be adaptive and not static
  • You always need new input
  • Diversity and inclusion
  • As a business gets larger, how the culture gets implemented changes
  • Differences in business sizes impact culture
  • Hierarchy can be part of culture
  • Some organizations don’t even have a leader
  • Many businesses are co-ops and have different ‘governments’

General

  • What are the best corporate cultures like and why? Do they necessarily serve the good of the organization or can they become cancerous leeches that eat away at the vision and mission?
  • How can founders design and redesign culture at the beginning, middle and end of a company’s lifecycle?
  • What are the differences in function between a tops-down, leader-based organization and a co-operative style organization? (How do co-op style groups work?)
  • Culture is a necessarily dynamic thing and should also be adaptive.
  • There are differences in the size of the organization that impact culture and the founders design of the culture, too, needs to change as things within the company change.

STRATEGY

Eric

  • Differences between Army and Microsoft?
  • Grand strategy and grand plan (‘the one’) that gets broken down into smaller things and pieces (separation of concerns)
  • Risk, compliance, remediation and resiliency an entirely different domain within PCF
  • Need to localize the strategy to a low level item
  • Strategies at the task level are not very complex, easy to narrow the field
  • Assumptions a part of risk, qualification and validation other tools
  • Need to have / get to a “plan” which integrates all of these things and parts
  • Hierarchy of vision, strategy, plan, then into concrete and applied schedule and or budget (resources and constraints)
  • “Energy capital” another resources like time and money
  • Tradeoffs are traded off until you have a vision and mission

James

  • Strategy is a reflection of the mission first
  • Strategy is overarching and big but “strategies” may be many, those are more tactics
  • Scope, time and resources greatly affect home much risk you take on and what your strategy is going to be
  • Relationships between, cost, time and quality

Steve

  • Risk really critical in strategy. Differences between levels of risk in sizes and stages of organizations.
  • Risk tolerance, risk aversion and “risking” or “taking risks”
  • Being too conservative not a good strategy
  • Balancing riskiness and conservatism
  • Need to test and validate your ideas (part of the strategy)
  • There always is a leap of faith (the unknown)
  • Risk assessment is a phase and some people, given the probability, people would decide differently based on their risk profile
  • “Reality testing” is how this is considered in psychology

General

  • Strategies at some point need to get chopped up / decomposed / broken up / broken down so they can be delegated, managed, measured and acted upon.
  • “Reality testing” (assumptions, risks, ideas, etc.) is a big skill required to survive and thrive in business.
  • “A plan” is a milestone that happens after the initial stuff of vision and values and all that. A plan becomes very concrete and tangible with steps and the like. Below a plan is the constrained resources and budgets of time, money, physical and mental energy and capacity.
  • What can we do to maximize the resource of energy (both physical and mental) for our projects?
  • The best strategy is chosen through decisions among tradeoffs.
  • Constrained resources between cost, time and quality plan into strategic thinking.
  • Risk tolerance plays into strategic decisions a great deal.
  • There is a subjectively optimal level of risk taking between too much and not enough.

IF YOU’RE GOING TO FAIL, FAIL FAST?

Eric

  • Risk-averse strategies (fail slow)
  • There are strategies that are random and/or fun that speckle in entertainment factors
  • Need to add random, interesting aspects to your brand
  • EfficiTrends and InefficiTrends: thinking in opposites and being creative, unique
  • Are there strategy ‘facilitators’ that are good at getting these ‘think opposite’ things done?
  • Don’t want to think ‘too far out of the box’
  • Your ideas are your students: some will be successful, others will not
  • Diversified portfolio
  • “Volume” (it’s a numbers game) and “Volume” be out and proud about your ideas as yourself
  • Is there a limitation of mindset and pivot? (Not everyone can mentally do a 180)
  • People have blinders of reality

James

  • Maslow’s hierarchy related to businesses?
  • Counterintuitive
  • Carnegie says he failed 49% of the time

Steve

  • If you avoid too much risk, then you live a life where you don’t do anything
  • Humans built to weather stress and take risks
  • People do many things that don’t relate to survival
  • Anomalies
  • A good consultant matches where people are at and tries to expand their client’s world from where they are at, not where you are at (depends on your audience)
  • “Success is somewhat random”
  • Failure is subjective and maybe not “real”
  • People lacking the confidence to start
  • Gotta be willing to fail enough to find the right partner
  • “There are the seeds of success and the seeds of disaster and they go together”
  • “[Vision is] like a genetic program”

Christian

  • “Calculated risk” vs. a foolish guess or test
  • Resiliency a huge part of success (getting back onto your feet)

General

  • Is there a Maslow’s Hierarchy of needs for businesses and other organizations?
  • There are fail fast and fail slow strategies. For some dangerous domains, like driving cars, you might want to fail slow.
  • Resiliency and getting back on your feet and trying again is the key to success.
  • “People do many things that don’t relate to survival.” ~ Steven Kubacki, PhD
  • “Success if somewhat random.” ~ Steven Kubacki, PhD
  • “There are the seeds of success and the seeds of disaster. And they go together.” ~ Steven Kubacki, PhD
  • “Vision is like a genetic program.” ~ Steven Kubacki, PhD
  • There are “random”, creative and out of the box strategies that come from a place of creativity.
  • Many people lack the confidence to even start. If you have started, keep going. You are ahead of many others.
  • Thinking in opposites is a good way to come up with creatives ideas and strategies.
  • There is probably an entire toolkit that some people have and can leverage who can help people think creatively from where they are at. These are called consultants but the best, probably shamanistic ones, can really blow people’s minds and change course for them dramatically.
  • There are limits and edges to strategy: you can think way too far out of the box. And you can think far too narrowly.
  • Think of your business ideas as if they were your students: some will do well, and others may not. Appreciate that some may do well.
  • It’s important to have a diversified (but not too diversified) activity and business portfolio.
  • Volume, both in amount and noise, matter a very great deal in business strategy and execution.

 


Check out this episode!

Saturday, January 14, 2017

AppsJack Podcasts Episode 3 - Developing Vision & Strategy - James Murray, Steven Kubacki, Christian Harris

AppsJack Podcast Episode 3 - Developing Vision & Strategy

January 14, 2017
Seattle, WA

Intro, high-level, ethereal, abstract

From the Guests

Eric
  • Vision is Step 3 of Kotter’s 8 Steps and the beginning of the APQC PCF.
  • Name and brand shouldn’t change very often
  • Linear path thinking isn’t going to be great; still need to be flexible and shouldn’t think of the vision and mission
  • Businesses have many interfaces (people, products, services, collateral)
  • You have an ability as a leader to embody what you create in positive ways
  • Products and services should also embody the products and services
James
  • Need to get clear on purpose and reason
  • Leadership determines the environment and culture
  • Culture should attract the right people and repel the rest
  • Tactics can change always, no big deal
  • Differences between what people say and what they do
  • Everything in terms of the vision should infiltrate and align inside and out
Steve
  • Cancer App
  • Virtual Reality
  • Vision, Values, Strategy, Mission
  • “Anchoring”
  • Leadership and leadership style/personal style is pretty important
  • Be aware of who they are and what they’re like. Be clear of traits and values.
  • Vision driven to some degree by your product. “Depends what you’re making.”
  • Product can (maybe should?) drive vision
  • Short- and long-term visions
  • Some of the values get thrown around but don’t really mean anything and lead to inauthenticity and a bad perception from the outside
  • First, people need to be clear about themselves
  • The window dressing will later come to harm you
  • People have to feel and believe in the vision and be on board
Christian
  • Values inform the vision
  • Strategies likely more dynamic and visions
  • Need to realign and adjust on a recurring basis
  • Learning can re-inform strategy and vision and values
  • Differences between SMB and Enterprise in even what these things mean
  • Can’t be on paper, must be lived out

Generally, Further Pursuit and Takeaways

Questions to Ponder and Review
  • Why is sharing a vision step 3 in Kotter’s 8 step leading change process yet the beginning of the PCF?
  • What are the fast- and slow-changing aspects of vision and strategy (what should be fixed and/or set in stone vs. things that are more malleable and flexible?)
  • What are the most important “interfaces” of business? Examples include the leadership, employees, products, services, collateral, etc.
  • What do we call the relationship and overlap between the value found in a company’s products and within its leaders and founders?
  • How does a company’s choice in product line(s) impact their mission or vision?
Points
  • Adjusting is not a word that came up but I think it’s a very good one to describe the right mindset and behavior for business and life.
  • The importance of culture, per se, and how it should both repel and attract at the same time (multi-modal and dynamic)
  • The center of it all hinges on the quality and decisions of the individual founder.
  • Creating a shared sense of positive feeling and believing are important outcomes that the company’s “designers” (founders) should seek to create.

Brand, Niche, Differentiation, Application

Eric


  • Brand as insignia of values and vision
  • Things can and should be by design and intentionally, not by accident or luck
  • Brand and culture are quite similar concepts
  • It helps with storytelling
  • Questions become more analytical once niched and focused
  • Want to be specific to your audience then, localize then
  • Can tell and explain the narrative far better at a lower, more specific level
  • The high level stuff is about the supply side. But there’s also a demand side that needs to align. Story telling a glue and skid between the two.
  • Can sell better with niching
  • Localize your value to local market
  • Need an operational and supply side view for employees

James


  • Niche and focus similar
  • Can always niche up once you have niched down but if you haven’t niched down further, then it’s hard when pressed and requested
  • Story about a guy that sold databases to cities under a specific size doubled his money every time he narrowed his niche
  • Costs less to niche down (more efficient)
  • As a leader I have to build a culture that will keep my employees aligned with me and be proud to work with me
  • We need to have a vision and mission that is for employees and customers

Steve


  • Nike works because it is different from everyone else
  • “What can we do that’s different?”
  • Developing a narrative helps differentiate and create a sense of authenticity
  • Can become too narrow
  • Having the right narrative is pretty important
  • Must also attract employees
  • The employee and talent attraction part must be part of the strategy, not just thinking about the market (must be holistic) or about all critical stakeholder types

Christian


  • The default mentality is shotgun approach and see what sticks
  • Don’t want to leave your entire livelihood up to chance
  • Have to be niche to attract the right people
  • Real estate examples and their effectiveness
  • The power of niche marketing
  • Many similarities between attracting customers and employees (simpler if these things align and there’s not a left and right hand)

Generally


  • Other than personal/corporate values and qualities, brand is another central theme to the identity of the organization.
  • Specificity of vision, finding and talking about a niche, and localizing are great tools for better storytelling, sales and connecting to your audience.
  • Storytelling is a currency for communicating value from the supply side to the demand(ing) side.
  • Once you ‘niche down’ you can always go back up, but if you haven’t niched down far enough you are at risk to lose your audience.
  • The vision, values, brand, etc. of a company should be equally appealing to both customers and employees because both need to be excited, engaged and believe.
  • Strategies need to be inclusive and integrative of many aspects both internal and external but also need to be very simple and easy to communicate.

Culture

Eric


  • Culture is the swamp
  • You’re creating a swamp but you want the swamp to be more like a hot tub
  • Culture can’t be static or stay the same, they are necessarily dynamic

Steve


  • Culture should be adaptive and not static
  • You always need new input
  • Diversity and inclusion
  • As a business gets larger, how the culture gets implemented changes
  • Differences in business sizes impact culture
  • Hierarchy can be part of culture
  • Some organizations don’t even have a leader
  • Many businesses are co-ops and have different ‘governments’

General


  • What are the best corporate cultures like and why? Do they necessarily serve the good of the organization or can they become cancerous leeches that eat away at the vision and mission?
  • How can founders design and redesign culture at the beginning, middle and end of a company’s lifecycle?
  • What are the differences in function between a tops-down, leader-based organization and a co-operative style organization? (How do co-op style groups work?)
  • Culture is a necessarily dynamic thing and should also be adaptive.
  • There are differences in the size of the organization that impact culture and the founders design of the culture, too, needs to change as things within the company change.

Strategy

Eric


  • Differences between Army and Microsoft?
  • Grand strategy and grand plan (‘the one’) that gets broken down into smaller things and pieces (separation of concerns)
  • Risk, compliance, remediation and resiliency an entirely different domain within PCF
  • Need to localize the strategy to a low level item
  • Strategies at the task level are not very complex, easy to narrow the field
  • Assumptions a part of risk, qualification and validation other tools
  • Need to have / get to a “plan” which integrates all of these things and parts
  • Hierarchy of vision, strategy, plan, then into concrete and applied schedule and or budget (resources and constraints)
  • “Energy capital” another resources like time and money
  • Tradeoffs are traded off until you have a vision and mission

James


  • Strategy is a reflection of the mission first
  • Strategy is overarching and big but “strategies” may be many, those are more tactics
  • Scope, time and resources greatly affect home much risk you take on and what your strategy is going to be
  • Relationships between, cost, time and quality

Steve


  • Risk really critical in strategy. Differences between levels of risk in sizes and stages of organizations.
  • Risk tolerance, risk aversion and “risking” or “taking risks”
  • Being too conservative not a good strategy
  • Balancing riskiness and conservatism
  • Need to test and validate your ideas (part of the strategy)
  • There always is a leap of faith (the unknown)
  • Risk assessment is a phase and some people, given the probability, people would decide differently based on their risk profile
  • “Reality testing” is how this is considered in psychology

General


  • Strategies at some point need to get chopped up / decomposed / broken up / broken down so they can be delegated, managed, measured and acted upon.
  • “Reality testing” (assumptions, risks, ideas, etc.) is a big skill required to survive and thrive in business.
  • “A plan” is a milestone that happens after the initial stuff of vision and values and all that. A plan becomes very concrete and tangible with steps and the like. Below a plan is the constrained resources and budgets of time, money, physical and mental energy and capacity.
  • What can we do to maximize the resource of energy (both physical and mental) for our projects?
  • The best strategy is chosen through decisions among tradeoffs.
  • Constrained resources between cost, time and quality plan into strategic thinking.
  • Risk tolerance plays into strategic decisions a great deal.
  • There is a subjectively optimal level of risk taking between too much and not enough.

If you’re going to fail, fail fast?

Eric


  • Risk-averse strategies (fail slow)
  • There are strategies that are random and/or fun that speckle in entertainment factors
  • Need to add random, interesting aspects to your brand
  • EfficiTrends and InefficiTrends: thinking in opposites and being creative, unique
  • Are there strategy ‘facilitators’ that are good at getting these ‘think opposite’ things done?
  • Don’t want to think ‘too far out of the box’
  • Your ideas are your students: some will be successful, others will not
  • Diversified portfolio
  • “Volume” (it’s a numbers game) and “Volume” be out and proud about your ideas as yourself
  • Is there a limitation of mindset and pivot? (Not everyone can mentally do a 180)
  • People have blinders of reality

James


  • Maslow’s hierarchy related to businesses?
  • Counterintuitive
  • Carnegie says he failed 49% of the time

Steve


  • If you avoid too much risk, then you live a life where you don’t do anything
  • Humans built to weather stress and take risks
  • People do many things that don’t relate to survival
  • Anomalies
  • A good consultant matches where people are at and tries to expand their client’s world from where they are at, not where you are at (depends on your audience)
  • “Success is somewhat random”
  • Failure is subjective and maybe not “real”
  • People lacking the confidence to start
  • Gotta be willing to fail enough to find the right partner
  • “There are the seeds of success and the seeds of disaster and they go together”
  • “[Vision is] like a genetic program”

Christian


  • “Calculated risk” vs. a foolish guess or test
  • Resiliency a huge part of success (getting back onto your feet)

General


  • Is there a Maslow’s Hierarchy of needs for businesses and other organizations?
  • There are fail fast and fail slow strategies. For some dangerous domains, like driving cars, you might want to fail slow.
  • Resiliency and getting back on your feet and trying again is the key to success.
  • “People do many things that don’t relate to survival.” ~ Steven Kubacki, PhD
  • “Success if somewhat random.” ~ Steven Kubacki, PhD
  • “There are the seeds of success and the seeds of disaster. And they go together.” ~ Steven Kubacki, PhD
  • “Vision is like a genetic program.” ~ Steven Kubacki, PhD
  • There are “random”, creative and out of the box strategies that come from a place of creativity.
  • Many people lack the confidence to even start. If you have started, keep going. You are ahead of many others.
  • Thinking in opposites is a good way to come up with creatives ideas and strategies.
  • There is probably an entire toolkit that some people have and can leverage who can help people think creatively from where they are at. These are called consultants but the best, probably shamanistic ones, can really blow people’s minds and change course for them dramatically.
  • There are limits and edges to strategy: you can think way too far out of the box. And you can think far too narrowly.
  • Think of your business ideas as if they were your students: some will do well, and others may not. Appreciate that some may do well.
  • It’s important to have a diversified (but not too diversified) activity and business portfolio.
  • Volume, both in amount and noise, matter a very great deal in business strategy and execution.

Wednesday, December 21, 2016

About Vision & Strategy - How to develop it, other challenges and considerations



We had a motley crew of awesome people show up to the AppsJack Share gathering last in Kirkland to talk about Vision & Strategy. I got a lot of great input (see everything below) that will help me better direct the January version of the podcast.

Key Takeaways:

  1. Strategy and approach (what to do) depends on the stage and situation of the business
  2. Work Breakdown Structure (WBS) a good way to break down complex projects
  3. Internal and external lenses/views/perspectives key to understanding and thinking about strategy
  4. Personal and corporate authenticity key to successful implementation
  5. Aligning an essential skill
  6. Nuance and readiness for seeing, understanding, integrating and working with outliers and anomalies is another key
  7. Timeframe matters for strategic thinking
  8. Context matters (and therefore controlling/limiting scope and having focus)
  9. There is a general prerence toward rapid tests of assumptions (failing fast) rather than long and protracted 'strategic' actions but there are times when the latter tactics (strategic actions) matter
  10. We couldn't determine whether or not models mattered. Models are meant to be broken, so why manage to them or even think about them?
  11. The mitigation and reduction of risk is key to successful strategy
  12. Design thinking is a key and related skill
  13. Strategy isn't and shouldn't be thought of as linear

We wondered at the very beginning if we should start by discussing vision or strategy and the answer, perhaps not surprisingly, was 'it depends'.  Chris brought up a good point that it very much depends on the stage, phase or status of the organization.  Assessment and triage (qualification) is first needed.  Steve raised challenges he has about breaking down a compelling vision into the component parts.  To me, these are the skills of project managers and other leaders who make complex and challenging things easier, that can be communicated to the necessary suppliers.  Work breakdown structure is a common method.  Mike Pritchard shared that he thinks there is an internal and external vision.  Joe Okonek refers to the vision, values and valued behaviors as things that can / should be externally communicated and publicly shared.  Missions, for example, can be internal documents and communications that help internal relationships focus on comm and strategic goal.  Public/open and private/closed is another dimension on which to explore strategy.


Good parts / what attendees liked: mentions of sex, swearing, arguments, passionate discussion, British accents, food, beer.  Authenticity was brought up as a key factor in this area.  Without true authenticity (and value, quality) your audience will see you as a fake and disengage (won't authorize).  Berry talked about the importance of alignment.  For example, aligning yourself and your company with the market and environment and their vision, values, purposes, needs, interests, ideas, etc.  Dominic talked about the difference between power (which can be personal and thought of as influence) and force, which can be applied from the tops down if someone has a lot of money or ability to coerce.  10 types of power are discussed in this article.  David brought up the point that strategy usually requires a longer and more futuristic timeline.  For example, he said that it's hard to be strategic for two minutes.  


Dominic led us in a discussion of the definition of a strategy and there were many different thoughts and opinions.  Someone defined a strategy as choosing an approach or an approach chosen ie a decision and commitment was necessarily made. I brought up the notion that it is hard to create a perfect product but many people disagreed: that within a domain, there can be a perfect product.  But there is a context, and knowing this context well is critical for product success.  Dominic wanted us to separate 'strategy' generically with 'strategy with a purpose' (a clear why). I brought up an issue I was having at work making a decision to build a feature for a big customer or not.  I am in the process of determining whether their request is qualified or not.  There is much skill required in qualification of certain issues.  Many at the table believed that 'if you are going to fail, fail fast' and people didn't like the idea of dragging on some elaborate process but others believed that caution and due diligence, not just action, were required in certain ambiguous political situations.  There are also scenarios where people cannot afford to fail fast, especially when there is not yet a powerful coalition, agreement and a clearly articulated and communicated vision.  


Richard wanted to know, "How do you know you have strategy?"  It's a good question.  We agreed that force, power, belief, authenticity, conviction and in many ways consistency were required for strategy.  But flexibility and other leadership qualities are also required.  We talked for some time about whether models were important or not.  David did not believe they were beneficial.  I gave the example of NoSQL database strategies where the data gets stored independent of a rigid table schema.  Many new data storage strategies do not rely on a centralized schema.  Differences between abstractions and concrete proof, evidence or data were interesting.  "Insight" or mental models are interesting when derived from data or science.  Steve talked about millennials and their needs.  He says that they share a desire for a better world and have this impediment of the rest of the world who is still alive, their elders.  


Someone pointed out that it is important to seek out anomalies in your data and to test assumptions.  Andy Scott made the point about the import of assumption testing on Episode 2 of the podcast.  Assumptions are a category or area of risk.  Steve shared the saying, "The presumptuous assume, the sumptuous consume."  People do need to build and test (at least mental) models.  Jean brought up the saying to test early and test often.  I shared about test-driven development (TDD), which is about only writing enough code (doing enough) to pass the next test.  It is a Lean approach.  Richard talked about the Site Reliability Engineer (SRE) role at Netflix and how they have build their strategy and plan around mitigating risk.  Managing and reducing risk is a key element of good strategy.  We talked a lot about design, design thinking and its import and spent quite a bit of time talking about Steve Jobs as a visionary and who else he surrounded himself with that helped make him successful.  It was suggested that Jonathan Ive at Apple was very critical to Steve's success and controlled and manipulated him in many ways.  He did of course have many failures as well.  Someone shared the idea of designing for failure, not success.  


Dominic wanted to make it clear that strategy was not linear and that it runs off of principles related to non-linear dynamics and non-linear systems.  Berry shared that it is our intention as managers to create systems that control and constrain--and this is necessary--but does indeed rub up against the truly dynamic nature of people and systems; feedback loops and quality systems that continuously transform and improve systems are indeed required.  We talked about automation and its important and how design decisions like 'who does what' plays big-time into strategy.  In my opinion, users should be the preferred and default / de facto actor and some (many?) of them should have the option to do a task themselves (value add) or delegate a task to a computer or someone else.  We started talking about the podcast toward the end of the event and Bruce recommended The Boss Show, which is a Seattle-area recording about bosses.


Berry posed the question, "How do you know that your vision is not a unicorn?" which is basically to say that you are not living a delusion or tilting at windmills.  The book Black Swan was recommended.  Richard talked a lot about the many types of currencies which relates to the idea of non-monetary economies.  I wondered out loud and Steve agreed that there is some sort of harmonic mathematical equation that describes a leader's oscillation between hypothesis tests and failures.  Bruce brought up 7 Habits of Highly Effective People by Steven Covey and I mentioned that The 8th Habit is about "finding your true voice and helping others find theirs".  The book also talks a lot about connecting strategies of the head with those of the heart which is probably truly about authenticity, believe and conviction.


Questions and topics for further consideration:
  • A Strategy (noun) vs. Strategy (verb) - What are the differences?
  • The skill of qualification; how to qualify, what to qualify, what to ignore?
  • Modern automation thoughts - who does what and what to do with the displaced workers?
  • Why do the ideas of internal/private/closed and external/public/open help us in thinking about strategy?
  • How do you know you have strategy?  (What is strategy?)
  • What are the differences between real-world models and mental models and/or thought processes?  
  • Test-driven design in management?
  • The applications of flexibility and rigidity in strategy development

Which topics, ideas and points would like to see covered on the podcast about Vision & Strategy?

Sunday, November 27, 2016

Managing External Relationships - The Skill of Balancing Clear Contracts With Open, Long-Term Communications


Open door policy or....


staying well protected....

or...well, like many things...it depends.

Business leaders from the Seattle area and I gathered in Kirkland on Tuesday, November 22nd to talk about the "Managing External Relationships" category of the APQC's Process Classification Framework.  At the event were me (Eric Veal, Owner of AppsJack Corporation); Berry Zimmerman, Owner of BizEnrich; Richard Schurman, an Intellectual Property Attorney; Andy Scott, a Fortune 10 Executive; and Christian Harris, owner of a media and real estate business.  Richard and Andy were first time attendees and it was a pleasure to have them there.

Earlier in the month, AppsJack released its first podcast episode about the same topic.  On that podcast Leo Lam, Scott Davis, James Tuff and I talked about the issue in depth.  More information on the podcast can be found at http://appsjackcorp.blogspot.com/p/podcast.html.  After the podcast I was left with a big question: "But what about compensation?  If we were to further understood and analyze the various forms of compensation, would we have a clearer answer about the nature of managing external relationships?"

We talked about a multitude of issues within the category and I noted the following ideas:
  • Andy shared that he prefers contracts to be "open".  Flexibility is a necessary part of business relationships.  Being overly controlling, not so much.
  • Berry shared with us some wonderful models that he has built and promotes:
    • The 7 Stakeholders (in priority order):
      • Employees
      • Customers
      • Owners
      • Suppliers
      • Community
      • Competitors
      • Government 
    • The 3 Assets
      • Relational (At the core)
      • Enrichment
      • Financial
    • More information about these models can be seen on Berry's Gifted Referrals website.
  • Andy has a list of 104 items that he has compiled and he could see how these items in many cases bit into the frameworks that Berry has built.
  • We talked about differences between improving-something-exising and building-something-new.  The Six Sigma process has Define, Measure, Analyze, Improve, Control (DMAIC) for improving-something-existing and Design for Six Sigma for building-something-new.
  • Andy made a good comment that the Japanese are good at continuous improvement but not necessarily quantum leaps.  There is an opportunity to smoothly and reasonably lead quantum leaps (big changes).
  • Someone told me that I should come up with a list of Guiding Principles to help me serve as the core of all of my contracts and business dealings.  Sounds fun.  Here's a first start:
    • Be fair
    • Choose relationships
    • Quality over quantity
    • Level up
    • Choose experience
  • We talked about the correspondence between compensation and identity.  For example, how someone compensates (makes promises) in business is very closely related to who the other party perceives they are.  Compensation is both the offered, promised, and actual value given, therefore it is a pretty loaded term.  Performance is the gap between perceived delivery on compensation (value) promises and what is actually delivered.  This is also known as quality.  There is a very close association between quality and performance.
  • When contracting, quality and performance very much need to be defined through good requirements.  Bodies of work abound about writing and managing requirements.
  • We talked a lot about negotiations.  It used to be about "winning" negotiations, and then it became about "win-win".  This is how I learned it at UW in 2005.  We now believe there is "continuous win-win" or process-oriented selling.
  • Berry liked the ideas of "invested" and "vested" and for employees to have skin in the game to encourage better performance.  But I would suggest that there is a class of worker that just works and has no skin in the game.  It might be best to always manage employees to have skin in the game...if only a little...because it makes work more fun and interesting and motivating.
  • Someone mentioned Daniel S. Peña, who I had never heard of.  Sounds like quite an eccentric fellow.
The next podcast recording is Sunday, Dec 4th at 2 PM and the next open meetup is on Tuesday, December 20th at 4 PM.