The Design Squiggle is a Lie.  This is Why.

The Design Squiggle is a Lie. This is Why.

Last night, I lied to a room full of MBA students. I showed them the Design Squiggle, and explained that innovation starts with (what feels like) chaos and ends with certainty.

The chaos part? Absolutely true.

The certainty part? A complete lie.

 

Nothing is ever Certain (including death and taxes)

Last week I wrote about the different between risk and uncertainty.  Uncertainty occurs when we cannot predict what will happen when acting or not acting.  It can also be broken down into Unknown uncertainty (resolved with more data) and Unknowable uncertainty (which persists despite more data).

But no matter how we slice, dice, and define uncertainty, it never goes away.

It may be higher or lower at different times,

More importantly, it changes focus.

4 Dimensions of Uncertainty

Something new that creates value (i.e. an innovation) is multi-faceted and dynamic. Treating uncertainty as a single “thing”  therefore clouds our understanding and ability to find and addresses root causes.

That’s why we need to look at different dimensions of uncertainty.

Thankfully, the ivory tower gives us a starting point.

WHAT: Content uncertainty relates to the outcome or goal of the innovation process. To minimize it, we must address what we want to make, what we want the results to be, and what our goals are for the endeavor.

WHO: Participation uncertainty relates to the people, partners, and relationships active at various points in the process. It requires constant re-assessment of expertise and capabilities required and the people who need to be involved.

HOW: Procedure uncertainty focuses on the process, methods, and tools required to make progress. Again, it requires constant re-assessment of how we progress towards our goals.

WHERE: Time-space uncertainty focuses on the fact that the work may need to occur in different locations and on different timelines, requiring us to figure out when to start and where to work.

It’s tempting to think each of these are resolved in an orderly fashion, by clear decisions made at the start of a project, but when has a decision made on Day 1 ever held to launch day?

 

Uncertainty in Pharmaceutical Development

 Let’s take the case of NatureComp, a mid-sized company pharmaceutical company and the uncertainties they navigated while working to replicate, develop, and commercialize a natural substance to target and treat heart disease.

  1. What molecule should the biochemists research?
  2. How should the molecule be produced?
  3. Who has the expertise and capability to synthetically poduce the selected molecule because NatureComp doesn’t have the experience required internally?
  4. Where to produce that meets the synthesization criteria and could produce cost-effectively at low volume?
  5. What target disease specifically should the molecule target so that initial clincial trials can be developed and run?
  6. Who will finance the initial trials and, hopefully, become a commercialization partner?
  7. Where would the final commercial entity exist (e.g. stay in NatureComp, move to partner, stand-alone startup) and the molecule produced?

 And those are just the highlights.

 

It’s all a bit squiggly

The knotty, scribbly mess at the start of the Design Squiggle is true. The line at the end is a lie because uncertainty never goes away. Instead, we learn and adapt until it feels manageable.

Next week, you’ll learn how.

Watch Out for These 3 Secret Saboteurs of Strategic Foresight!

Watch Out for These 3 Secret Saboteurs of Strategic Foresight!

You’ve done everything to set Strategic Foresight efforts up for success. Executive authority? Check. Challenging inputs? Check. Process integration? Check. Now you just need to flip the switch and you’re off to the races.

Not so fast.

While the wrong set-up is guaranteed to cause failure, the right set-up doesn’t guarantee success.  Research shows that strategic foresight initiatives with the right set-up fail because of “organizational pathologies” that sabotage even well-designed efforts.

If you aren’t leading the right people to do the right things in the right way,  you’re not going to get the impact you need.

Here’s what to watch out for (and what to do when it happens).

 

Your Teams Misunderstand Foresight’s Purpose

People naturally assume that strategic foresight predicts the future. When it doesn’t, they abandon it faster than last year’s digital transformation initiative.

Shell learned this the hard way. In 1965, they built the Unified Planning Machinery, a computerized forecasting tool designed to predict cash flow based on trends. It was abandoned because executives feared “it would suppress discussion rather than encourage debate on differing perspectives.”

When they shifted from prediction to preparation, specifically to “modify the mental model of decision-makers faced with an uncertain future,” strategic foresight became an invaluable decision-making tool.

Help your team approach strategic foresight as preparation, not prediction, by measuring success by the improvement in discussion and decision-making, not scenario accuracy.  When teams build mental flexibility rather than make predictions, wrong scenarios stop being failed scenarios.

 

People are Paralyzed by Fear of Being Wrong

Even when your teams understand foresight’s purpose, managers are often unwilling  “to use foresight to plan beyond a few quarters, fearing that any decisions today could be wrong tomorrow.”

This is profoundly human.  As Webb wrote, “When faced with uncertainty, we become inflexible. We revert to historical patterns, we stick to a predetermined plan, or we simply refuse to adopt a new mental model.”  We nod along in scenario sessions, then make decisions exactly like we always have.

Shell’s scenario planning efforts succeeded because it made being wrong acceptable. Even though executives initially scoffed at the idea of oil prices quadrupling, they prepared for the scenario and took near-term “no regrets” decisions to restructure their portfolio.

To help people get past their fear, reward them for making foresight-informed decisions.  For example, establish incentives and promotion criteria where exploring “wrong” scenarios leads to career advancement.

 

Your Culture Confuses Activity with Achievement

Between insight and action, the Tyranny of Now reigns.  In even the most committed organizations, the very real and immediate needs of the business call us away from our planning efforts and consume our time and energy, meaning strategic foresight is embraced only when it doesn’t interfere with their “real” jobs.

Disney’s approach made strategic foresight a required element of people’s “real jobs” by integrating foresight activities and insights directly into performance management and strategic planning. When foresight teams identified that traditional media consumption was fracturing in 2012, Disney began preparing for that future by actively exploring and investing in new potential solutions.

Resist the Tyranny of Now’s pull by making strategic foresight activities just as tyrannical – require decisions based on foresight insights to occur in 90 days or less.  These decisions should trigger resource allocation reviews, even if the resources are relatively small (e.g., one or a few people, tens or hundreds of thousands of dollars).  If strategic foresight doesn’t force hard choices about investments and priorities, it’s activity without achievement.

 

How You Lead and What People Do Determine Strategic Foresight’s Success

Executive authority, challenging inputs, and process integration are necessary but not sufficient.  Success requires conquering the deeper organizational and human behaviors that determine whether strategic foresight is a corporate ritual or a competitive advantage.

5 Questions:  Liz Wiseman on Building Transformation Momentum from the Middle

5 Questions: Liz Wiseman on Building Transformation Momentum from the Middle

Conventional wisdom tells us that transformation flows from the C-suite down because real change requires executive mandates and company-wide rollouts. But what if our focus on building transformation momentum is exactly backward?

Ever since reading Multipliers, where Liz Wiseman revealed how the best leaders amplify their people rather than diminish them, I’ve wondered if, like innovation, organizational transformation and change also require us to do the opposite of our instincts.

I recently had the opportunity to dig deeper into this topic with her, and I couldn’t resist exploring how change really happens in large organizations.

What emerged wasn’t another framework—it was something more brilliant and subversive: how middle managers quietly become change agents, why sustainable transformation looks nothing like a launch event, and the liberating truth that leaders don’t need to be perfect.


 

Robyn Bolton: What’s the one piece of conventional wisdom about leading change that you believe organizations need to unlearn?

Lize Wiseman: I don’t believe that change needs to start, or even be sponsored, at the top of the organization.  I’ve seen so much change led from the middle management ranks.  When middle managers experiment with new mindsets and practices inside their organizations, they produce pockets of success—anomalies that catch the attention of senior executives and corporate staffers who are highly adept at detecting variances (both negative and positive). When senior executives notice positive outcomes, they are quick to elevate and endorse the new practices, in turn spreading the practices to other parts of the organization. In other words, most senior executives are adept at spotting a parade and getting in front of it! (Incidentally, this is one of several executive skills you won’t find documented on any official leadership competency model.)  If you don’t yet have the political capital to lead a company-wide initiative, run a pilot with a few rising middle managers. Shine a spotlight on their success and let the practices spread to their peers. Expose their good work to the executive team and make yourself available to turn the parade into a movement.

 

RB: In your research and work, what’s the most surprising pattern you’ve observed about successful organizational transformation?”

LW: As mentioned above, I believe the starting point for transformation is less important than how you will sustain the momentum you’ve generated. Unfortunately, most new initiatives—be they corporate change initiatives or personal improvement plans—begin with a bang but fizzle out in what I call “the failure to launch” cycle. Transformation that is sustained over time usually starts small and builds a series of successive wins. Each win provides the energy needed to carry the work into the next phase. These series of wins generate the energy and collective will needed to complete the cycle of success. As that cycle spins, nascent beliefs become more deeply entrenched and old survival strategies get supplanted by new methods to not just survive but thrive inside the organization.

Each little success requires careful support and an evidence-backed PR campaign to build awareness and broad support for the new direction. Nascent behavior and beliefs are fragile and will be overpowered by older assumptions until they are strengthened by supporting evidence. The supporting evidence forms a buttress around the budding mindset or practices, much like a brace around a sapling provides stability until the tree is strong enough to stand on its own.

 

RB: How has your thinking about what makes an effective leader evolved over the course of your career?

LW: When I began researching good leadership, most diminishing leaders appeared to be tyrannical, narcissistic bullies. But as I further studied the problem, I’ve come to see that the vast majority of the diminishing happening inside our workplaces is done with the best of intentions, by what I call the Accidental Diminisher—good people trying to be good managers. I’ve become less interested in knowing who is a Diminisher and much more interested in understanding what provokes the Diminisher tendencies that lurk inside each of us.

 


RB: When you consider all the organizations you’ve studied, what’s the most powerful lesson about driving meaningful change that most leaders overlook?

LW: One of the dangers of trying to lead change from the top is that most leaders have a hard time being a constant role model for the changes they advocate for.  Even the best leaders can’t always display the positive behaviors they espouse and ask their organizations to embody.  It’s human to slip up.  But when behavior change is led primarily from the top, these all-too-natural slip-ups can become major setbacks for the whole organization because they provide visible evidence that the new behavior isn’t required or feasible, and followers can easily give up.  Wise leaders understand this dynamic and build a hypocrisy factor into their change plans–meaning, they acknowledge upfront that they aspire to the new behavior but don’t always fully embody it, yet. They set the expectation that there will be setbacks and invite people to help them be better leaders as well.  They acknowledge that the route to new behavior typically looks like the acclimation process used by high-elevation climbers.  These climbers spend some of their days in ascent, but once they reach new elevations, often have to descend to lower camps to acclimate.  It’s the proverbial two-steps-forward, one-step-back process.  When leaders acknowledge their shortcomings and the likelihood of their future missteps, they not only minimize the chance that others give up when they see hypocrisy above them, but they create space for others to make and recover from their own mistakes.

 

RB: Looking ahead, what do you believe is the most important capability leaders need to develop to help their organizations thrive?

LW: Leading in uncertainty, specifically the ability to lead people to destinations that they themselves have never been.


I love that Liz’s insights flip the script, calling on people outside the C-Suite to stop waiting for permission and start running quiet experiments, building proof points, and letting success do the selling.

The next time you want a change or have change thrust upon you, don’t look for a parade to lead. Look for one person willing to try something different and get to work.