Digital Transformation – Part IV: The Two Big Jobs To Be Done

By Rod Collins

One of Peter Drucker’s most popular and enduring business quotes is, “The best way to predict the future is to create it.” This advice has never been truer than it is today as the technologies of digital transformation are changing all the rules for how the world works by displacing top-down hierarchies that amplify the “power of one” with more powerful peer-to-peer networks that enable the “power of many.”

Another famous Drucker quote is, “If you don’t understand innovation, you don’t understand business.” That’s because when your job is to create the future—which is the fundamental responsibility of the business leader—you better have a firm grasp of how innovation works.

Understanding The Job To Be Done

Perhaps no one has advanced our knowledge on the workings of innovation more than Clayton Christensen, whose many books on the topic have become essential reading for twenty-first century business leaders. In his most recent book Competing Against Luck, which he co-wrote with Taddy Hall, Karen Dillon, and David Duncan, Christensen emphasizes that the starting point for innovation is often uncovering what he calls “the job to be done.” Whereas most attempts at business innovation often start with a product idea, Christensen urges business leaders to step back and take the time to uncover what problem customers are “hiring” their product to solve. If they fully understand that problem and use that knowledge to guide what products to make, they will not only delight their customers, but they may very well create something that has never existed before, which is the essential task of innovation.

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About the Author:  Rod Collins (@collinsrod) is the Innovation Sherpa at Salt Flats and the author of Wiki Management: A Revolutionary New Model for a Rapidly Changing and Collaborative World (AMACOM Books).

Digital Transformation – Part V: Blockchain May Be the Future of IT

By Rod Collins

Morning Star is not your usual company. That’s because the 400-person California-based agribusiness has no supervisors. Rather than relying on the intelligence of an elite few, Morning Star is a highly successful self-managing peer-to-peer network that has skillfully leveraged the “power of many” to sustain its position as the world’s largest tomato processor.

From the beginning, the company’s founder, Chris Rufer, built his innovative enterprise on two core principles. First, individuals should keep their commitments to others. People at Morning Star are not handed assignments. Instead they negotiate Colleague Letters of Understanding with their co-workers, and, to assure everyone is honoring their commitments, the metrics associated with these agreements are published bi-weekly.

The second principle is that no individual should use force against others or their property. This means that no single person has the authority to issue an order or the ability to unilaterally fire another person. For the people at Morning Star, what they do and with whom they work are always collective decisions.

For over three decades, these two principles have served as a solid foundation to support an innovative management technology that is disrupting the way we build and lead human organizations.

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About the Author:  Rod Collins (@collinsrod) is the Innovation Sherpa at Salt Flats and the author of Wiki Management: A Revolutionary New Model for a Rapidly Changing and Collaborative World (AMACOM Books).

3 Keys To Hiring High-Performing Frontline Leaders

By Sue Bingham

Manufacturing lives and dies by the numbers. Measurable data that tells you whether you have met production goals or are running at full capacity is an essential part of improving operations and safety at any well-run company. But leadership skills are what companies really need to grow and innovate.

Yet many frontline leaders (FLLs) don’t possess critical leadership skills — a discrepancy that can have dire consequences. At the heart of this problem are expectations set by senior leadership that are far too low. Consequently, traditional job descriptions often fail to communicate the skills that FLLs actually need to succeed.

For example, a low-expectation job description might state, “Do whatever it takes to make sure the job gets done,” whereas high-performance expectations require potential FLLs to “Inspire and develop a highly competent team that continuously produces the highest-quality products in the most cost-effective way.”

Low expectations result in the wrong people being promoted. Almost universally, companies promote their most loyal, reliable, and technically skilled operators to frontline supervisor positions. While these are highly valued attributes, notice how this list says nothing about leadership capabilities. Misleading expectations lead to front lines stacked with people who lack the aptitude to do the job — people promoted without the clarity of expectation at the highest levels of leadership.

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About the Author:  Sue Bingham is the founder and principal of HPWP Group. She works closely with company leaders to analyze their organizations and facilitate the implementation of commonsense systems that have a positive impact on their organizations’ bottom line. She has a passion for helping companies embrace and transition to high-performance work environments. Sue is the bestselling author of Creating the High Performance Work Place

Digital Transformation – Part III: The Internet of Things Changes Everything

By Rod Collins

In 2006, Don Tapscott and Anthony D. Williams described in their book Wikinomics how a new phenomenon they called mass collaboration was going to change everything. They recognized that this unprecedented capacity for self-organization would give rise to powerful new models of production based on distributed peer-to-peer networks rather than centralized top-down hierarchies. Tapscott and Williams envisioned a world where this new way of organizing would eventually displace traditional corporate structures as the economy’s dominant engine for wealth creation. At the time, many critics dismissed the two authors as being carried away by breathless hype and overstating the impact of the digital revolution. While these critics acknowledged the obvious reality of fast-paced technological innovation, they scoffed at the notion that new technologies would radically change the fundamental dynamics for how our social structures work.

Given that more than a decade later the top-down hierarchy continues to remain the dominant organizational structure, it might be tempting to conclude the critics are right and that the notion that mass collaboration changes everything is indeed nothing more than hype. However, closure at this point might be premature because there’s increasing evidence that we are on the cusp of a new second wave of the digital revolution, which promises to be far more transformative than the already disruptive first wave.

First Wave: The Internet

The first wave of the digital revolution emerged with the dawn of the new century when the Internet created new ways to connect people and get things done. One of the interesting developments of this first wave is that it hasn’t affected all industries equally. If you are in the media, entertainment, retail, or communications industries, your world has been thoroughly transformed. Stalwart names, such as Border’s, Blockbuster, Kodak, Tower Records, and the Encyclopedia Britannica, have been either disrupted or displaced by the upstarts Amazon, Netflix, Apple, Spotify, and Wikipedia. However, if you work in the healthcare, insurance, energy, food processing, or, until recently, the financial services industries, your world has not been heavily impacted by this first wave. For these core economic industries, digital transformation has been essentially limited to digitizing existing product models. Unlike the media and retail industries whose basic business models have been radically disrupted, the longstanding models of the core economic industries have remained essentially the same.

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About the Author:  Rod Collins (@collinsrod) is the Innovation Sherpa at Salt Flats and the author of Wiki Management: A Revolutionary New Model for a Rapidly Changing and Collaborative World (AMACOM Books).

The High Price of Overly Prescriptive HR Policies

by Sue Bingham

Recently, one of my colleagues left our firm to make significantly more money at another company. We wanted to keep her, but the commission-based salary offered by the other company was more than we could match. She hadn’t realized how long her new commute would be during rush hour, however, and after three days of long, round-trip commutes during rush-hour traffic, she asked to shift her schedule an hour earlier to spend less time in unproductive gridlock.

Her manager denied her request, saying, “If we did it for you, we’d have to do it for others.”

It was good news for us; she was back with our team the following Monday.

Too many companies’ HR policies are overly restrictive. Such policies are often convoluted and overly paternal, and attempt to control the behavior of regular people through rules designed to rein in the “bad apples.”

Having consulted with hundreds of company leaders on how to create high-performance workplaces over the past 30 years, I’ve seen this firsthand. Although a small percentage of employees may try to take advantage of more flexible or generous policies, designing your HR policies with such people in mind isn’t the answer. It won’t help boost the performance of the majority of employees – employees who have the organization’s best interests at heart. It will only make them feel distrusted.

Most employees who work for you are intelligent adults. If your employee handbook or HR policy manual is large and prescriptive, consider the following:

Read the rest of the article at Harvard Business Review…

About the Author:  Sue Bingham is the founder and principal of HPWP Group. She works closely with company leaders to analyze their organizations and facilitate the implementation of commonsense systems that have a positive impact on their organizations’ bottom line. She has a passion for helping companies embrace and transition to high-performance work environments. Sue is the bestselling author of Creating the High Performance Work Place

Digital Transformation – Part II: Collective Intelligence Is the Game Changer

By Rod Collins

The science fiction writer William Gibson once astutely observed, “The future has already arrived; it’s just not evenly distributed.” As described in last month’s blog, our future is a digitally transformed world that will usher in an entirely new human epoch where the dominant top-down hierarchical structures of the first 10,000 years of human civilization will rapidly give way to the far more powerful peer-to-peer network architecture that is now possible, practical, and increasingly more pervasive thanks to the proliferation of digital technology. However, despite the increasing evidence of the ascendance of hyper-connectivity, our rapid transformation to a fully networked world remains hidden in plain sight. Although we use our connected iPhones to do Google searches as we step into an Uber car on our way to close a deal we made on eBay, we are in many ways oblivious as to just how radically the world is changing around us. Our tools may be networked and digital, but the world we carry around inside our heads is still very hierarchical and linear. It’s an unsustainable situation, and we know how this ends: The future always wins, and it’s just a matter of time before the future will become very evenly distributed.

The Power of Many

The prime distinction between hierarchies and networks is that hierarchies are designed to leverage the “power of one,” while networks naturally enable the “power of many.” That is why networks are so much more powerful. Perhaps you may be thinking, if networks are so superior, why is it that hierarchies have shaped our social architecture for all this time? The simple answer is, until the digital technology revolution, we had no way to effectively bring people together into cohesive real-time networks. In the absence of this capability, the best we could do to coordinate the activities of large numbers of people was to build sophisticated hierarchical structures. The fundamental assumption underlying what was once the greatest human organizational innovation is that, by leveraging the individual intelligence of the elite leaders at the top, the whole organization is smarter than it otherwise would be if people were left to their own judgments. And for many centuries, this supposition was true.

However, the current technology revolution has spawned a new and very different innovation in organizational structure that has completely nullified this centuries-old assumption. In the hyper-connected network, the smartest organizations are not the ones with the smartest individuals, but rather those with the capacity to rapidly aggregate and leverage their collective intelligence.

Read the rest of the article here…

About the Author:  Rod Collins (@collinsrod) is the Innovation Sherpa at Salt Flats and the author of Wiki Management: A Revolutionary New Model for a Rapidly Changing and Collaborative World (AMACOM Books). 

Digital Transformation – Part I: It’s All About Networks

By Rod Collins

In his recently published book, The Seventh Sense: Power, Fortune, and Survival in the Age of Networks, Joshua Cooper Ramo relates the story of one the most closely guarded secrets during the early years of the Cold War: If the Soviet Union had engaged in a nuclear first strike, it was highly likely the United States would have been unable to respond. That’s because the American field officers and their commanders in Washington would have had no way to communicate with each other. Consistent with the technology at the time, the American radio and telephone systems were highly centralized, which made them also highly vulnerable. One of the key structural problems of centralized systems is that each regional center has the potential to become a single point of failure that can disrupt the entire system, as often happens when air traffic across a nation is snarled because of unexpected weather at a major hub. Fortunately, this national security vulnerability was corrected with an innovative solution: the distributed network.

Recognizing the urgency of this challenge, Paul Baran, who at the time was with the joint venture between the U.S. Air Force and the Douglas Aircraft Company known as RAND, devised a way of building messaging systems without any central hubs. Each message would be able to find its own path from point A to point B. Thus, if any part of the system was disrupted, the remaining pathways in the network could resiliently adapt to route all the traffic in the system with minimal disruption. This structural shift from centralized systems to distributed networks, which solved a critical military problem in the 1950’s, would turn out to be a harbinger of a dramatic phenomenon that would shape the early twenty-first century: digital transformation.

Digital Transformation

There is no topic that is both more important and more confusing to business leaders than digital transformation. With the deluge of articles and keynote speeches on how the digital revolution is accelerating radical change, you would think that there would be more clarity about this pervasive phenomenon. Instead there is general sense of confusion reminiscent of the Buffalo Springfield lyric: “There’s something’s happening here; what it is ain’t exactly clear.”

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About the Author:  Rod Collins (@collinsrod) is the Innovation Sherpa at Salt Flats and the author of Wiki Management: A Revolutionary New Model for a Rapidly Changing and Collaborative World (AMACOM Books). 

If Employees Don’t Trust You, It’s Up to You to Fix It

By Sue Bingham

Three years ago, 37% of CEOs were concerned about a lack of trust in businesses, according to the PwC Annual Global CEO survey. Across industries, that number has climbed to 55%.

A high level of trust between managers and employees defines the best workplaces and drives overall company performance and revenue. As Stephen M. R. Covey writes in The Speed of Trust, “When trust goes down (in a relationship, on a team, in an organization, or with a partner or customer), speed goes down and cost goes up.… The inverse is equally true: When trust goes up, cost goes down, and speed goes up.” Because less than 50% of lower-level (nonexecutive, nonmanagerial) employees trust the companies they work for, employers have to carefully consider how they can build trusting relationships with their employees.

Employees who don’t trust their managers usually point to big-picture, obvious things: Their superiors skate the edges of ethical behavior, hide information, take credit for others’ hard work, or flat-out deceive people. Over my many years of helping organizations create high-performance workplaces, I’ve seen firsthand how untrustworthy managers damage morale and productivity. If employees are tight-lipped about problems until their manager exits the room and then suddenly have lots of things to tell me about his secretiveness, bullying, and penchant for pitting them against one another, the problems are easy to identify.

Less-obvious causes of distrust tend to originate more from the traditional environments in which leaders have been mentored than from specific behaviors of well-meaning managers. For example, traditional leadership training often focused on rule enforcement, which is akin to parent-child communication and not how trustworthy adults function. Today, leaders in high-performance workplaces don’t write policies around the few bad apples; instead, they expect people to act in the best interests of the company and one another. While it’s hard to fix problems you can’t see clearly, there are four ways to address these less-visible factors:

Read the rest of the article here…

About the Author:  Sue Bingham is the founder and principal of HPWP Group. She works closely with company leaders to analyze their organizations and facilitate the implementation of commonsense systems that have a positive impact on their organizations’ bottom line. She has a passion for helping companies embrace and transition to high-performance work environments. Sue is the bestselling author of Creating the High Performance Work Place.

The Technology of Management Is an Insult to Your Intelligence

by Josh Allan Dykstra

I was hanging out with a friend for coffee, making small talk about their work, when it hit me. It felt like someone had physically flicked their finger and smacked me right between my eyebrows, even though no one had touched me. In that instant something “clicked” in my brain—and it all happened because my friend innocently said a phrase I’d heard a million times before, something to the effect of:

“Yeah, I’ll just have to check with my boss about that.”

It’s a simple, seemingly innocuous phrase that probably gets spoken countless times every day in various parts of the world.

But this time it hurt me. These words felt somehow… gross, offensive. I felt insulted for my friend.

“Why?” you may ask.

Because for the situation we were discussing, my friend knew exactly what to do. We talked about it at length. They had thoughtfully processed the options, they’d consulted the appropriate people to get other viewpoints, they were the person closest to the work, and they clearly knew what decision needed to be made.

But they couldn’t make that decision without checking with a “boss.”

In today’s marketplace, we often wonder why our organizations are too slow, too bureaucratic, and too paralyzed. We wonder why they’re not agile enough, not responsive enough, and just not able to keep up with the constant changes we feel all around us. In that moment with my friend, it occurred to me that the answer has been sitting right in front of our faces—we just don’t see it because it’s taking the form of statements we’ve all heard a million times.

“I’ll have to clear that with my manager.”

“I need to check with my boss.”

“My manager will have to sign off on that.”

How “normal” are these statements? I suspect most of us don’t think twice when we hear them—or when we say them ourselves.

But we need to transform the way we think about this.

The idea that people need to be “managed” is inherently an insulting and dehumanizing one. The very notion that you somehow need a “manager” to tell you what to do when you get to work is a blatant affront to your intelligence. We just don’t think about it this way because we’ve been swimming in the water of a world that treats “managers” as normal for the past century or more.

But it is NOT normal.

It’s not normal for you to need someone to tell you what to do or approve the decisions you make—you are a fully functioning adult with a perfectly capable brain in your head.

A brain that makes thousands of decisions every day without a manager, I might add.

As my friend Doug says (I’m going to paraphrase)—you don’t have a “manager” to tell you what clothes to wear when you go out on Saturday night. You don’t have a “manager” to tell you when to get married or have babies. You don’t have a “manager” to tell you what route to take to work. But then suddenly when you cross the threshold of your office building, what happens? Your brain just falls out of your head? Do you suddenly become as functionally capable as, say, a bag of rocks?

Of course you don’t. But the technology of management—and let’s be very clear, this is a technology that was invented—is designed to treat you like your brain has been removed.

I was in a workshop with a client the other day, a successful technology company. During one of the activities, I overheard one of the participants say something like “The main problem is that we aren’t masters of our own destiny.” Then another person added: “I have a manager who has a manger who has a manager who has a manger who reports to the VP.”

If that’s the case, I’d say you are definitely NOT in control of much, if any, of your destiny.

As the session went on, it became clearer and clearer to me how much of a disservice we’ve done to these amazing people by teaching them about “management”—this toxic idea has infected them like a disease, to the point where they’ve all started to believethat they aren’t smart enough or capable enough to make decisions on their own.

Occasionally in the workshop I’d see moments of intense clarity and a flash of awareness when someone uncovered a solution that ought to happen—but their light would be quickly snuffed out by the realization that their fix would never survive the perilous journey through five layers of “managers.”

We ask our people to be brilliant problem solvers, but instead we’ve taught them to be something else: mostly-deflated humans whose default response has become learned helplessness.

“Management” is the opposite of what these smart, capable, brilliant people need. What they really need is for said “management” to frankly get the hell out of the way so they can do their jobs and make the decisions they need to make.

Like my friend over coffee, they already know exactly what to do; their managers are just mucking up their ability to do it.

Without a manager, would you bounce ideas off other people and get collaborative input? Absolutely! Would you make sure you’re pulling in the the right experts to give you the insight you need on the issue at hand? Of course! But do you need a “boss” to then make that decision for you? Please; that’s just ridiculous.

For the sake of our humanity and the productivity of our organizations, this absurdity needs to stop—and it won’t until we start seeing “management” as the insult to your intelligence that it actually is.

Josh Allan Dykstra is a recognized thought leader on the future of work and company culture design. He is the CEO of Strengthscope U.S., the exclusive U.S. provider of the world’s most energizing workplace assessment, and his articles and ideas have been featured by Fast Company, Forbes, The Huffington Post, and Business Insider. He’s also the Co-Founder of Forte, a consulting group that helps organizations and leaders leverage the power of a strong culture, and The Work Revolution, a movement/advocacy group that promotes life-giving work environments for everyone. His eclectic work background includes projects with organizations like Apple, Sony, Genentech, Microsoft, HTC, and USC as well as startups and nonprofits. He holds an MBA in Executive Leadership from the University of Nebraska-Lincoln, and his latest book, Igniting the Invisible Tribe: Designing An Organization That Doesn’t Suck, is available on Amazon.com.

Why should CEOs, leaders, founders care about “purpose”?

By Brooke Erol

When I joined the workforce 28 years ago, we were not supposed to talk about creating meaning at work. We were just lucky enough to have a job to pay the bills. I still tried to find purpose in what I do. How was I contributing to humanity and my society through my work besides making money? While I was working at IBM, I figured out it was “bringing top notch technology to my customers so that they could serve their clients better.” It was a real purpose, but it was not a good match for me. I had to find my purpose in life and align it with what I do; so I decided to quit my well-paying job. I became the black sheep; back then nobody around me was interested in expressing purpose through work.

I am thrilled to witness this is changing now. There are so many thought leaders, studies, and resources that talk about “purpose through work.”

Why is “purpose” so important?

First of all, at an individual level, finding and living your purpose is the highest form of fulfillment which is more lasting than happiness. Studies now show there are three tiers of happiness:

1) Pleasure – chasing next high; hard to maintain

2) Passion – flow; peak performance; time flies by

3) Higher purpose – being part of something bigger than yourself

(Source: The book Delivering Happiness: A Path to Profits, Passion, and Purpose by Tony Hsieh)

So if we aim for ultimate fulfillment in life, it is imperative that we look at what we do on a daily basis and see the purpose in it. Bryan Dik, Ph.D. and Ryan D Duffy, Ph.D. have great examples in their book Make Your Job a Calling, like Bryce’s story. Bryce is a STOP sign flagger, and he sees the purpose in what he does which may look like a very tedious job to others. He says “I keep people safe with my job and love it because it matters.”

When we align our purpose and express it through our job, we don’t feel like we are “working” anymore. “When we operate from a strong sense of what we are called to do, then we are not as the saying goes simply making a living, we are making a life” as Richard Leider and David Shapiro explain in their book Work Reimagined.

Why should organizations care about purpose?

1. A strong sense of purpose beyond financial success is very crucial for millennials, and they are the biggest part of the workforce now. If they are our present and future employees, we have to pay attention to what matters to them the most.

2. As Josh Bersin (Principal at Bersin by Deloitte) explained at the Annual Human Culture Conference in October 2016, purpose is one of the top 5 factors impacting culture today. 2 out of 3 millennials state their organization’s purpose is a reason why they chose to work there. In organizational cultures without perceived purpose, only one out of five millennials is satisfied at work.

3. Companies who are more purposeful are doing much better with their bottom lines too. It is very understandable; if you work fulfilling your purpose, your productivity and your engagement will improve. Percentage of non-purpose led companies that showed drop in revenue is 42% while percentage of purpose-led companies that showed positive growth is 85%.

4. As consumers, our buying behavior has changed: we care where we spend our money. We want our transactions to be a reflection of our values. Organizations with a clear purpose, a humanized environment, and a sense of serving their communities win our hearts faster. The Soul of the Money by Lynne Twist is the best book I read that examines our attitudes about money.

5. Values, purpose, and passion are becoming the differentiating factors both for professionals and organizations. Many tasks that require IQ are taken over by computers and robots, but we need the emotional intelligence piece to make teams work as Daniel Pink’s brilliant book A Whole New Mind explains in much further detail.

6. 87% believe companies perform best over time if their purpose goes beyond profit. “The clear articulation of a resonating purpose plays a major role in driving an organizational culture of disruptive innovation. Employees in innovative companies want to continuously and actively innovate…Their passion is nurtured through a strong, believable and clearly stated organizational purpose – one that creates greater engagement than purely economic ones. Money alone can only motivate employees so much.”

So the way we work is disrupted. We mostly owe it to millennials, visionary leaders and also companies that laid off many of their accomplished and well-performing people. Why do I include the companies to this list? Because laying off made these hardworking people think twice about what matters in life. They began questioning the status quo that was accepted for 150+ years: “Is it worth working so hard for a job that I don’t like to pay the bills or should I bring more meaning to my work?” Their children were watching too. They saw too many of their parents getting laid off even if they stayed loyal and worked very hard. These kids watching are the millennials. Of course, they will push for change after what they witnessed. Nobody can blame them for asking the right questions earlier in life.

It is time to follow the transformation happening in the workplace and embrace being purposeful. We know in our hearts this is very much needed after watching too many people having their souls crushed at work and witnessing the consequences of many organizations not having any purpose other than making a profit.

We did not come here to have a job that we don’t like, to build a business solely to maximize profit at the expense of our people or to express our purpose only with what we do on weekends. Purpose is our natural driving force; it can be practiced in all parts of life, and it is a pull we cannot ignore so that we can all thrive.

Brooke Erol is an advisor, a speaker, and an author who is interested in future of work and how organizations can thrive in this new world. She works with executive teams to increase employee engagement, lower turnover rates, and hire the right people based on both culture and job-fit using a three-phase methodology that uses Emotional Intelligence practices.  She is the author of Create a Life You Love. Her purpose in life is to help as many individuals and organizations as possible to find their purpose and actualize it. You can connect with Brooke on her website or on Twitter (@boerol1).