Sunday, March 12, 2017

Podcast Episode 5: Sales & Marketing Show Notes - AppsJack Capable Communities Podcast

Section 1 - What is sales and marketing?


  • Introductions to Andy Scott and Alan Andersen
  • Marketing gets people interested in being *willing* to hand over their money
  • Sales extracts the money and seals the deal
  • Sales and marketing has been around forever
  • The channels have changed
  • There's still oftentimes a need for face-to-face interactions for some large transactions
  • There's a cap or threshold for some transaction sizes
  • The trust of the buyer is a big issue
  • There's also a threshold at the bottom (cost of entry) which has gone way down for suppliers/producers
  • Is the playing field per se "level" now for the little guy to compete with the big guy?
  • Andy: you can't compete on basic requirements and expections.  Need to compete on guarantees, outcomes, promises and value.
  • Hard to look at sales and marketing exclusively without considering delivery, supply chain management, customer service and the rest of business.
  • Doing the marketing and sales strategy activities should define the actual scope, size scale of delivery (size of the project).
  • Size and scale of a company determines the size and scale of go to market strategies and approaches.
  • Need to get extremely clear on the target audience for the product overall and project/phase.


Section 2 - Marketing strategy and action plans


  • Steps include market research, determining target markets, your positioning and uniqueness, competitive analysis, methods and how (marketing mix), budgeting, measurement of success, improvement plan
  • Still need to create a business structure/rhythm/cadence and probably have an outside party review performance on a regular cadence to identify what to adjust
  • Need to look at the present activity system (what's happening) and identify what to change / do more.
  • Marketing may not always be the most important measure, depending on the maturity of the business.
  • Andy: "I don't want to help someone provide a bad service."
  • Alan: People should "sell the right thing".
  • What are the buying criteria?
  • Pre- and post-facto lenses, being proactive vs. responding.  Need to do both.


Section 3 - Sales and selling, sales strategy


  • Alan: The brain is Teflon for anything positive and Velcro for anything negative.
  • Buyers do need to beware and do their own due dilligence.
  • Buyers should seek to find a place of trust.
  • Need to differentiate to overcome people's objections about usales and selling (giving up their money).
  • People want to be able to purchase without risk.
  • Alan: "Need to design guarantees and the brand promise in such a way that you can absolutely deliver."
  • Important for the sales person to see what they do as literally helping get value in exchange for money (an ROI).  Get more out that when they put in.
  • Overpromising and underdelivering is common for some employees in employment interviews.
  • Sales strategy is defined by Alan, incentive structure and rewards are discussed.
  • Charisma seems to be quite required for good sales
  • Eric lists attributes of good sales people.  Actions and behaviors: help, educate, inform, inspire, empathize, facilitate  Attributes: honest, forthcoming, competent, confident.
  • Issue between the good attributes of a person and the performance context that could create issues.
  • Andy lists 5 types of sales people: relationship builders, hard workers/grinders, lone wolves, problem solvers, challengers.
  • Challengers were the best because they: understood customer well, understood customer's business well, educated, understood fit between their product and customer's needs, understood customer's buying process, pushed back and created some degree of tension.
  • Customer loyalty driven by "their rep offers unique perspective", "rep helps navigate through alternatives", "rep helps avoid problems", "rep helps them through the buying process", "rep has support of full organization behind them".
  • Andy: "There's more to it than (just) relationships."
  • Alan: "Go out and be helpful."
  • Help people understand how the process and experience will be going forward.  Help them feel and be comfortable.
  • Need to move beyond relationship as cliche.


Didn't discuss / next time:


  • How campaign and opportunity management work - the modern information systems of business development


Wednesday, March 1, 2017

Selling and Marketing Your Best and Worst Ideas - Meetup Recap

We first talked about the differences between sales and marketing.  Someone stated that marketing is demand generation.  Someone else stated that marketing is pulling and sales is pushing.  I asked why those verbs.  Someone else chimed in with the idea that there are different types of sales that need to be considered such as consultative sales and transaction-based sales.  Our definition of the differences still seemed to be lacking.  Mike Pritchard, always brilliant, offered that "sales is the closure", which to me makes good sense.  I asked if sales are the outputs and marketing are the inputs; everyone seemed to agree.

There are two primary ways to look at sales 1) holistically as a total system of lifetime value, care, etc. and 2) as the process of generating revenue and income (not delivering, etc.).  Both views seem valid in today's age.  Richard Webb showed up and told a story of a recent conversation he had with an executive Chief Sales Officer who looked at the system as the latter (just income generation), not the former (comprehensive system).  The individual had said that "we have people" for the other parts and did not seem overly concerned about the delivery or operations part, just the selling and income generation parts.  This bothered Richard and others and Richard even said, "I am anti-sales".  Clearly this is not the best idea, to be anti-sales in business, since it is so key and critical to the process, but why the rub and why do some of us feel so strongly against sales, and sales people for that matter?

Within sales there are at least two models where either A) the sales person hands over to an account manager or person for delivery and/or customer care and B) where they continue to own the account through and through and to be responsible for retention, customer satisfaction, etc.  We all seemed to agree that the latter model is preferred.  There is a division of labor that may be necessary, however, between the sales person and the delivery team.  To me, it seems quite reasonable to "firewall" the sales team from the delivery team and to separate those two worlds and cultures for the sake of efficiency and effectiveness.

The ideas of "deal shaping" and "deal crafting" were mentioned as difficult skills and I personally thought of our new president, Donald Trump and his "art of the deal".  I think many of us revere and admire sales people and realize it is a hard job.  But maybe that is just a fallacy.  Surely not everyone can do it well or skillfully.

There is another view of the sales person as simply an "order taker".  The idea there is to keep it simple and have the sales and customer intake process be very easy and pre-described such there is a predictable and reliable input to the rest of the organization.  This kind of role, however, may not be very well suited for some individuals who like to hunt and kill big game (customers) and find that practice fun and realize the complexity and uniqueness of each new account or project in some larger  more complicated contexts.

Our buddy James Tuff, who has been in sales for most of his life, shared stories about the value of sales and sales people and how it should be a noble profession.  I agree with James and in general have the utmost respect for good sales people but I could say the same for good dishwashers.

Richard, referring to complexity and disorder, mentioned that "most enterprises are federated small businesses" and I agree with that.  Having worked at Siemens, Microsoft and others, I have seen this first hand.  And it can even be said that some business are federated big businesses, which is totally true.  In general, we need to keep in mind the size of the organization when we are talking about sales.  The used car lot is one thing but if we look at other big businesses trying to land and keep major accounts, that's another thing.  But there are common patterns and practices we can follow.

We talked about the extreme importance of sales.  One person said that sales was currency and Christian said that there was a certain invincibility about sales and sales people because they are the ones that bring in the money that makes everything else possible.

Bruce shared that there are some buzzwords used to describe sales and value such as "trusted advisor", and "loyalty" that he thinks are overloaded and poorly used.  Bruce has had a lifetime in sales and is an expert in the matter.  Bruce continued to explain that he has worked for good sales organizations, Xerox being one, that provide good incentive structures that worked quite well in creating a balance between "selling and leaving" and helping sales people see quality as total and mandatory.  The aspects of compensation that Bruce mentioned were 1) salary 2) commission and 3) being tied to customer satisfaction so the sales person had an incentive to ensure that there account was successful in the long term and could not simply walk away without facing a significant penalty.

David Slight chimed in and expressed the importance of quota in this mix and that very many companies behave on this premise that their earning targets are set and then they back into individual and regional quota to make it happen.  It is a very tops-down model.

We switched subjects a bit and started talking about marketing again, given that we had covered a lot of territory on sales as a standalone topic.  One person (it could have been me) suggested that marketing is all about enabling.  David brought up the idea that Product Management is a business function that seems to be doing a good job of bridging the gap between customers and delivery.  I agree with this 100% but would add that account management (sales?) still needs to be tied to and coupled with it for success.  It cannot be the place of Product Management to own success for individual customers.  There needs to be someone in mix who knows the customer pain and situation and can best integrate all of the companies products into the base organization for success and value.

I raised the point about differences between delivering products and delivering services and how APQC had recently broken these two topics apart.  I had felt like it was a good decision but David disagreed and said that they really are the same things.  I disagree on this point and we will get into their similarities and differences next time around on the meetup and podcast.  David was talking about how Digital Products might really be / are Services and I can agree with that basic point.  It is indeed becoming a very blurred line, especially when  you include virtual reality and other technological views.

Richard took us off on a (good) tangent about corruption and incentives and still was fairly convinced that sales and selling were evil.  Bruce offered the book A Whole New Mind in this context.  Mike Pritchard believed that the percentage of sales people was definitely decreasing but I shared ideas about maybe how all of us are becoming more and more sales people (less overt, yes) on such platforms as Facebook and other places where we are virally marketing ideas.

James continued to argue the point (and I think rightfully so) that he "trusts people over machines, frankly".  I want to have follow-up conversations with James about the % of times he interacts with machines in sales and information gathering processes vs. humans and how much of his $ goes to machines and not people.

Mike Pritchard brought up the idea that sales were maleable and something that could be controlled (a simple process at least) whereas marketing was more mysterious, complicated and complex.  Jonathan, in speaking of sales, believed that you have to work with carrots and not sticks but I disagree and think that there are many contexts in which sticks (negative consequences) are 100% required to get good performance.  Complacency is a real issue.

We got off on a tangent again about how (good) sales is really about personal accountability and ownership.  Alan Andersen came to life and led us in a great discussion about leadership, ownership and their importance.  David chimed in and did not love the silver-bullet-style importance being placed on leadership and offered that the two skills of empathy and self-effectiveness are huge when you look at 16 PF models.  Leadership is both inate and in some ways can be learned.  Some people are more natural at it than others.  And it does indeed boil down to attitude and beliefs.

Alan brought up a good point about leadership which is that you first need to be able to lead yourself.  Then you can lead others and lead leaders.  But self-discipline is step one.  David continued to diminish the value of leadership per se and continued to believe that in more of a holocracy-based society that words such as citizen over leader might be better and more appropriate.  I agree with David and think that leadership as a topic is overplayed yet of course required.  David said, "There is a whole new way of working." and I agree.  Our technology is changing the way things are and will be organized.

As was mentioned above, our view of sales really does depend on the organization's maturity and it is one of the practices that needs to mature along with it, if not indeed lead that maturity effort.  There was agreement that being proactive is better than reactive.

I finally asked a few of the people there if the true skill in sales was facilitation and there was some agreement around that idea.  Confidence was also brought up as a core attribute of good sales.  But then Berry reminded me of competence, which brings us back to the full systems idea and its importance.

The next topic will focus on the delivery of products and services and then beyond that we will talk about customer service holistically.  Once we are done with the customer service topic we will have talked through the full "value added chain" and then delve back into the support processes of HR, IT, Finance, etc. that hold up and bolster the rest of the business functions.

My name is Eric Veal and I want to thank our attendees at the meetup last night.  They were: myself, Christian Harris, Richard Webb, James Tuff, Bruce Follansbee, Mike Pritchard, Berry Zimmerman, Alan Andersen, David Slight and Jonathan Olson.

Sunday, February 12, 2017

Episode 4 - Business Skill 2 - Develop and Manage Products and Services - Part 1


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

 


Check out this episode!

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!