“Never half-ass two things. Whole-ass one thing.” – Ron Swanson, Parks and Rec
With all due respect to Ron Swanson, leaders today need to whole-ass two things. In a world of constrained resources, you don’t have enough time, money, or people to put against your highest priority, let alone multiple high priorities.
But if you think you must choose between investing in today or the future, know that you’re most likely choosing between killing your company quickly or slowly. That’s what “And, not or,” and it’s required in these three areas.
Development AND Research
“Right now, it’s not sufficient to just keep treading water.” – L. Rafael Reif, former MIT president and current professor of electrical engineering and computer science
“America Is Losing the Innovation Race” screamed the Foreign Affairs article in which Reif detailed evidence that America is falling behind China in electric vehicles, nuclear energy, war technologies, and other areas of critical technology.
Since 2015, as China invested in science and technology to develop the capability to produce high-end products at scale, US federal spending on basic research, as measured in real 2017 dollars, has declined.
Even the research that is funded isn’t keeping up. A paper published in 2022 examined nearly 50 million academic papers and patents from 1945 to 2010 and found a precipitous decline in the “disruptiveness” (i.e. makes previous findings obsolete or pushes the field in a new direction) of research across all scientific fields, including a 100% drop in the physical sciences and a 78.7% decline in computer and communications patents.
The funding story is quite different but no less alarming on the corporate side. Between 1964 and 2022, business funding as a source of R&D funds more than doubled but the vast majority of those funds are spent on applied research (13%) and development (80%), not the type of fundamental research that launches a country forward economically or societally.
Operators AND Innovators
“It’s a trap” – MBA student
For two hours, we discussed Netflix’s culture: the no vacation policy” policy, the “act in Netflix’s best interest” expense policy, and the management philosophy that stresses hiring people for their expertise and then trusting them to make decisions.
To me it sounded like a dream. So, when I asked who wanted to work for Netflix, I was shocked when not a single hand went up.
To my students, it sounded like a trap.
And that’s ok. Not everyone wants to face the accountability and repercussions of taking risks, exercising judgment, and making decisions.
Companies need people who want to follow processes, become experts in their fields, and keep the business steady and growing. AND they need people who question processes, explore far beyond their industries, and challenge the business to do better and grow further.
AI AND Humans
“What keeps me up is the fact that so many people are being convinced that they don’t matter anymore.” – Former Canadian Prime Minister Justin Trudeau
When 16,000 jobs, on average, have been lost each month for the past year due to AI, it’s pretty hard to convince a human and they matter.
Yet a growing body of research shows that humans enabled by AI generate new and novel ideas more quickly and cost efficiently than either AI or humans alone. In a battle between 125 “global problem solvers” and one expert in prompt engineering, the latter produced 180 ideas in 5.5 hours at a total cost of $27.01 and none of the ideas were meaningfully different in terms of strategic viability, environmental or financial value, or overall quality than the human-only ideas. At P&G, researchers found that the most innovative ideas were generated by AI-enabled teams and that those teams worked about 12% faster than other teams and AI-enabled individuals.
Ultimately, the companies that succeed won’t be the ones that make the best bets.
They’ll be the ones that learn to whole-ass two things.