Category Archives: Changing Behavior

Inspiring People to Achieve Epic Wins

“An Epic Win is an outcome that is so extraordinarily positive that you had no idea it was even possible until you achieved it. it was almost beyond the threshold of imagination and when you get there you are shocked to discover what you are truly capable of.” – Jane McGonigal

The problem with many teams I meet is that they have been conditioned to accept their processes and work environment as fixed.  Time after time I hear them say, “we can’t change that…that will never be allowed…we tried to do that, but they said no…that isn’t possible,” etc.  They embrace failure before they start.  What’s worse, underlying these and similar sentiments is the heartbreaking fact that they lack confidence in themselves and their ability to positively affect change.

The online gaming industry has exploded in recent years, and according to Jane McGonigal, one of the reasons for the meteoric rise is the connection online games make with people on a deeply emotional level.  Well designed games allow people to experience challenge, achievement, and feedback in ways reality does not.  Through a series of progressively harder challenges and real time feedback, online games create an environment where participants are intrinsically motivated to push themselves past the threshold of their own imagination and achieve epic wins.

So how do online games motivate players to spend countless hours making mistakes and building skills…and more importantly, is it possible to create a similar environment with our continuous improvement processes?  Here are a few of the keys to developing world-class online games that I believe are most relevant to leaders.

Provide an epic purpose – give them something worth believing in.  If they don’t see the end goal as worthy of the struggle and pain of the journey, they will abandon the efforts at the first sign of failure.

Start small – to create the momentum of accomplishment, select ideas and improvements that take no more than 1 hour to complete and are completely in their control.  The longer it takes to complete the first actions, the harder it is to create and keep momentum.

Build difficulty over time – like a good game, think about the difficulty of your improvements like levels in a game.  Everyone starts at level one, and as they move up the levels through action and accomplishment, the difficulty and complexity of both the problems and the improvements increase.  In each level, the goal is to have the difficulty be within reach of the player, but hard enough to cause them to struggle and grow as a change agent.

Give consistent real, time feedback – at each stage of the game, feedback is a critical and should be an immediate part of the experience.  Through visuals controls, peer to peer recognition and management follow up, seek to provides ways for team members to know their progress at all times.

Make it social – create a collaborative support structure where both team members and team leaders are supported on their journey.  Have team members work together on both suggesting and implementing ideas.  Finally, manage the improvement process visually, so everyone can see, feel and experience the struggles and victories together.

If we are serious about effecting change, we must acknowledge that without the belief that we can create positive outcomes, it is impossible to create a culture where individuals and teams strive each and everyday to achieve epic wins.  As Bill Strickland said, “we have to change the way we see ourselves before we can change our behavior,” and to change how we see ourselves we have to create an environment where teams create their own “winning streaks.”  Online games do this by allowing teams to start small, level up, get real time feedback and create urgent optimism to inspire your people to go after their own epic wins.  Only after we realize that good continuous improvement systems need to embed the elements of a good game will we consistently move teams from “praying to win, to hoping to win, to knowing they could win, to expecting to win.” (Gail Goestenkors)

Achieving Peak Performance

“No one appreciates the agonizing effort (Miyamoto) Musashi has made.  Now that his years of training have yielded spectacular results, everybody talks about his “God-given talent.”  That’s how men who don’t try very hard comfort themselves.” – Yoshikawa Eiji

Struggling to reach your potential is hard work and in the words of Robert Browning, it is “a road less traveled.”  And while it is not clear why so few put in the time and dedication to discover just how good they can be, it is clear that what is often mistaken for God-given talent is just the byproduct of what Geoffrey Colvin calls “deliberate practice.”  In his book, Talent is Overrated, Colvin dispels the myth that peak performers are predestined for greatness.  Colvin found that not only was future greatness not determined by your genetics, it wasn’t solely a function of hard work either.  In study after study, Colvin found that “many people not only fail to become outstanding at what they do, no matter how many years they spend doing it, they frequently don’t even get any better than they were when they started.”

In industry after industry, when it comes to mastering critical skills, people with lots of experience are often no better at their jobs than those with very little experience.  Even more scary, when it comes to leadership ability, a study from INSEAD business school found that managers with experience did not produce better quality outcomes (on average) than those without experience….and occasionally, actually got worse with experience.

So if peak performance is not based on talent or hard work alone…how can we escape the “experience trap” and reach our potential?  It turns out there are four keys to becoming a peak performer:

Know the right behaviors – while this may sound easy, discovering the right behaviors you need to master can be a challenge.  Even with keen observation and careful analysis, most peak performers struggle to identify and share the “secrets to their success.”  As I wrote in “Mastering New Skills,” while “there are always explicit aspects of what experts will share and tell you to practice…more often than not the more important points come from the implicit behaviors the experts do, but do not explicitly practice, teach or even notice.”  Begin by narrowing your focus to these behaviors.

Accurately and honestly assess where you are – after identifying the behaviors you want to master, the next step is to baseline your current performance.  The problem is, our brains are programed to tell us the story we want to hear about our level of expertise, rather than the one we need to hear.  That, combined with our fragile egos can spell trouble for seeing the gap between the behaviors we want and those we currently exhibit.

Put in the reps – Next, get your hands dirty and do the work.  I have heard it said that you need to repeat an action 10,000 times before you truly make it a reflexive movement.  Colvin says it takes peak performers 10 years of deliberate practice to make the skill appear God-given.  Either way you look at it, be prepared for work hard, sacrifice and struggle on your way to mastery.

Have faith in the process – finally, you have to believe that if you identify the right behaviors, embrace your gap and do the work, results will follow.  The results always lag the thousands of repetitions, so without an unwavering faith in the process, the odds are high you will quit long before you accomplish your goals.

The formula for achieving greatness is not difficult, but it is demanding.  The road is long and hard and requires both patience and persistence.  To be successful you need to know both the critical behaviors that lead to success and to be open and honest about your current skill level.  Armed with the knowledge of your gap and belief in the process, you can set your sights on internalizing the behaviors and mastering the new skills.

Why Pursuing Big Ideas is Killing Your Culture

The best indicator of successfully developing a continuous improvement culture is your ability to engage people. Because “engagement is all about participation,” according to communications consultant David Sibbet, it is critical that you create a way for people to consistently participate in improvement activities. Creating an annual kaizen event calendar and rotating people on and off improvement teams won’t cut it. You must design a process for individuals to embed change as part of their daily work.

What works best are employee-driven idea systems that focus on small ideas but cultivate them every day in a visual, public way. Not because the ideas themselves are earth-shattering, but because the ability to get them done quickly and demonstrate continued progress is key to motivating people to think big, take risks, and work together to create positive change.

Unfortunately, most leaders have a difficult time believing that thousands of small “unmeasurable ideas” will have any meaningful effect on key financial metrics. As a result, most idea systems quickly die on the vine as leaders create layers of bureaucracy to manage the ideas, and complex return on investment (ROI) criteria to rank each idea in the search of the illusive “game-changing suggestion.” However, when leaders set a clear objective and challenge teams to rapidly implement any idea important to accomplishing their goal, then the true power of creativity and collective energy can be released.

Take an example from the University of Washington. The Grants and Contracts Accounting Group is a 25-member team responsible for the setup, invoicing, reporting, and closing of more than $1.15 billion in annual research grants. When I started working with the team, complex grants could take upwards of 673 days to finalize the outstanding invoices, complete the reporting, and close out the grant in compliance with sponsor requirements. In addition, due to the 228-percent growth in research grants and budget cuts, a backlog of 5,478 grants had developed.

Faced with no new resources and the audacious challenge to eliminate the backlog and cut the time to close to 120 days, we engaged the team and installed a system of daily process improvement. Driven by the goal to identify and solve problems in real time, the team used workflow leveling, pacing, visual controls, and idea pads to capture every roadblock the team encountered. At the end of each day, problems were reviewed and analyzed, and improvements were made so the impact of the change could be viewed the next day. While some of the ideas took multiple days to investigate and implement, the vast majority of the ideas were small, seemingly insignificant changes that could be completed by the next day.

The result? At the end of eight months, the team had eliminated 82 percent of the backlog and increased the number of budgets closed per week by 733 percent. By using a simple daily process to identify and implement small ideas, the team has averaged 4.4 new ideas per person per month and implemented 78 percent of them. It has done this without running kaizen events and without the assistance of internal lean specialists. In fact, change is happening so rapidly that documenting the effect of the ideas has become the enviable problem the team is working to address (at the request of the University).

So why do thousands of small ideas beat a few big ideas every time? Here are a few of the unseen benefits of embracing a “smaller is better” approach to process improvement:

Motivation. Seeing progress is one of the single greatest sources of intrinsic motivation. By documenting and allowing people to see the ideas they have suggested and implemented, and how their ideas have contributed to the larger organizational goals, you give them a simple, consistent, and visual mechanism to see their progress.

Development. By documenting all the small ideas, you create “teachable moments” where you can use actual ideas suggested and implemented to teach others what constitutes good ideas as well as what making progress toward goals each day looks like.

Recognition. By making your idea system visual, it allows you to create a very public method of recognizing all the incremental improvements people are suggesting and implementing. As peer-to-peer recognition is one of the most powerful motivators, the visual element allows teams to celebrate one another and each member’s contribution to their team and the organization.

Sharing. Simple visual idea systems encourage frequent yokoten(knowledge sharing) as each idea is captured, discussed, implemented, and recognized. Unexpected benefits occur during this process as each team member is exposed to the ideas of others and challenged to find opportunities where improvements can be applied in other areas.

Creating an engaged culture isn’t about challenging people to identify and implement ideas that revolutionize the organization. As soon as leaders start thinking the key to change is big ideas, they create systems that seek to identify the best ideas and kill those which do not provide a sufficient ROI. Rather than engage teams, these systems serve as a filter to curb people’s creativity and puts blinders on their “improvement eyes.” More important, by conditioning people to filter their ideas, leaders limit the organization’s ability to tap into the motivational engine that lies within in every team member.

The key to creating a world-class idea system is spending less time asking the question, “Is this a good idea?” and more time building a system where progress is measured by the implementation of thousands of seemingly inconsequential ideas. Leaders’ primary mission is to create an environment that allows all team members to make progress every day and gives them a way to see the progress they are making. Only then will people fully engage and be motivated to change the organization, one idea at a time.

In the end, if you want teams to engage in change, be accountable for their actions, and take ownership of the outcomes, they need to feel good about themselves and the contribution they are making in the organization. Only when team members are clear about the objectives and able to confidently say, “I am better today than I was yesterday” will the organization begin to tap into their limitless ability to help make themselves, their team, and their process great.

 

Learning Systems Design from Dead Poets

“Why do I stand up here?  I stand upon my desk to remind myself that we must constantly look at things in a different way.  You see the world looks very different up here … Just when you think you know something, you have to look at it in another way.  Even though it may seem silly or wrong, you must try.” – Robin Williams, Dead Poets Society (1989)

Getting teams to look at processes in a different way can be both one of the biggest challenges and fruitful exercises a leader can undertake.  Merely enabling people to see their job from a fresh perspective can lead to new insights and generate a rush of improvement ideas.  Taichii Ohno (founder of the Toyota Production System) was famous for requiring leaders to spend hours standing in a circle on the shop floor and observing a process until the waste “revealed itself.”  The problem with getting people to look at their process and see the opportunities for improvement is that our brains are hardwired to see the world the way we want to see it rather than the way it is.  So in order to get teams to see their process differently, you often need to force a change in scenery.

That being said, the following are two simple techniques we use when redesigning systems that challenge teams to look at their process from a new perspective and expose problems in real time:

Break the work – “artificially” breaking up the work can be very effective way to increase collaboration by adding immediate feedback loops.  As teams redistribute work and struggle to meet their goals, the increased interactions generate insightful questions regarding individual behaviors, standard work requirements, and single points of failure in the system.

Rotate the work – frequently rotating the work can be helpful in two ways.  First, changing roles in a process allows the team to systematically and frequently “bring in a fresh set of eyes.”  Second, forcing the team to break down the job into its simplest elements and cross train helps drive innovation as they must question every detail and look for ways to translate and train the work more effectively.

Finally, in addition to designing systems which expose new opportunities, remember the power of setting a goal for ideas.  Paul Cook once noted that “To be an innovative organization, you have to ask for innovation.  You assemble a group of talented people who are eager to do new things and put them in an environment where innovation is expected.  It’s that simple…”  When Robin Williams challenges his students to think differently, he does not merely suggest everyone stand on the desk and look at the world from a different perspective…he makes everyone get out of their seat and physically stand on his desk.  The same is true for innovation.  Don’t beat around the bush with your goal for getting new ideas.  Contrary to what some leaders believe, setting challenging expectations for the number of new ideas generated and implemented can lead to increased motivation, fresh insights and improved business results.

 

Redesigning an Industry Icon

Ford Motor Co. CEO Alan Mulally was a runaway winner of the 2010 MarketWatch CEO of the year, easily beating out Steve Jobs, Vikram Pandit, Jeff Bezos and Reed Hastings.  Since the hiring of Mulally in 2006, Ford has been on a roll.  While Ford continued to post financial losses through 2008, the company turned the corner in 2009 and started to reap the benefits of Mulally’s turnaround strategy.  Sales and profits are up, the stock quadrupled in 2009 and doubled again in 2010 and the company has gained market share in back-to-back years for the first time since 1993.  The company even posted its best third quarter profit ($1.7 billion) in over 20 years.

So how did an old aerospace guy with no automotive experience turnaround a struggling industrial icon?  Let’s look at six elements of Mulally’s strategy that have enabled Ford to transform their financial and cultural picture in four short years:

Create a Simple and Compelling Message – By defining a simple, but powerful mission to build higher quality, more fuel efficient, safer cars, Mulally gave Ford’s employees something they craved: a message they could rally around and a vision of a company in which they could believe.  “The more each of us knows what we’re really contributing to, the more motivated and excited and inspired we are.”

Make it About the Long Term – Second, Mulally invested in a long-range plan to create a global design language he called “One Ford.”  The One Ford strategy meant selling off higher profile brands (Land Rover, Jaguar, Aston Marton and Volvo), bringing back a completely redesigned Taurus, and designing cars on a global platform.

Exude Contagious Optimism – Mullally understands that his positive energy is contagious.  He exudes an optimism that is both inspiring and credible.  He has an unwavering belief in his team’s plan, balanced by relentless realism about current market conditions, and a willingness to make adjustments along the way.

Develop a Truth Telling Culture – Mulally has created a culture in which telling the truth is paramount and gets rewarded.  As an example, Mulally presides over a weekly “Business Plan Review” where the heads of Ford’s four profit centers and its 12 functional heads report on progress relative to their targets, share problems and collaborate on ideas for improvement.

Be Profitable on Lower Volumes – Under Mulally’s leadership Ford has reduced structural costs by more than $10 billion and will have reduced its production capacity by 40% by the end of next year.  In a drive to be right-sized, Ford now has fewer factories, each producing more vehicles, which has allowed the company to be profitable at near-record-low sales levels.

Create Intimate Customer Relationships – Led by Scott Monty and his talented social media team, Ford has created an extensive online presence committed to creating transparency during the turnaround.  In addition, Monty launched “The Ford Story,” a social media hub which builds intimate customer relationships through Facebook, Twitter, YouTube and other online communities.

Regardless of your size, industry or business goals, Mulally’s vision and values are equally relevant to every leader responsible for aligning people and driving change.  If you want to dramatically increase your effectiveness and post unprecedented results, “stand for something beyond profit…rally your employees around a shared mission…practice realistic optimism…and tell the truth without fear.”

Cracking the Code on Engagement

“An experienced code breaker will tell you that in order to figure out what the symbols in a code mean, it is essential to be able to play with them…to rearrange them at will.” – Gero Miesenboeck

The Rosslyn Chapel was founded by William Sinclair in Roslin, Midlothian, Scotland in the mid-15th century.  The chapel stands on fourteen pillars, which form an arcade of twelve pointed arches on three sides of the nave and its architecture is considered to be some of the finest architecture in Scotland.  Among Rosslyn’s intricate carvings are a sequence of 213 cubes protruding from the pillars and arches with geometric patterns on them.  While no interpretation of the patterns has proven conclusive, Tommy and Stuart Mitchell believe the symbols represent pitches and tones which reveal a melodic and harmonic progression.  Thomas Mitchell combined the code breaking skills he learned during the Korean War with a lifetime knowledge of classical music to unlock a piece of music hidden in the chapel’s arches.  After 27 years of study and research using cymatics (a musical system in which patterns are formed by sound waves at specific pitches), the father and son team produced a tone which Stuart calls the Rosslyn Motet.

Mitchell’s success required dedication, careful analysis, and a bit of luck.  Most of all, it required Mitchell and his son to experiment with sand, sound, pitch and patterns.  We too must be prepared to play with a variety of tools and techniques if we are to discover the secrets of motivating people to participate in change.  Like all code breakers, our goal is to identify a “pattern of right behaviors” which will enable leaders to consistently inspire and engage those they lead.  In our attempt to identify the right behaviors, there are three additional skills we need to successfully crack the engagement code.

First, you need patience and perseverance.  Recognizing the pattern of right behaviors takes time and can often feel as if you are making little progress as your brain wrestles with seemingly contradictory information and attempts to rearrange the inputs to identify the pattern.  You may also need to retrace your steps and/or start over when one line of investigation ends with little to no results.

Second, you must have a strong familiarity with the language in which the code is written, so be prepared to become a student of human behavior and spend time in the trenches working with teams implementing change.

Finally, as you begin to learn the language of human behavior, you need to understand its inherent rules.  All languages (including human behavior) contain redundant qualities and patterns of frequency.  Learning how to read these patterns and recognize redundant behavioral trends can help you understand the messages being conveyed and the reasons behind them.

Code breakers approach complex problems with a mix of experience, ingenuity and curiosity.  Blending their knowledge of the code’s language with a structured approach to experimentation, code breakers identify the underlying pattern to crack the code.   By using a similar approach to the problem of engagement, we may finally be able to “crack the code” of motivating people to change their behavior.

Managing Rapid Change on a Large Scale

For Starbucks, the world’s leading retailer, roaster, and brand of speciality coffee, 2008 was a tough year.  Amid a struggling economy and increased competition from cheaper rivals, the company’s net income during the first three months of the year fell 28 percent compared to the same period in 2007. Starbucks’ founder Howard Schultz announced that the company had “lost its way,” becoming too standard and corporate, and less entrepreneurial—less like a local coffee shop.  Shultz resumed the role of CEO and president, and for the first time the company closed stores on a broad scale.

Fast forward a year.  Starbucks posts a 4-percent growth in total sales, comparable store sales are up 4 percent (driven by increases in store traffic and average ticket price), and the company’s margins are up 8.5 percent.  As a result, the company’s earnings jump to $241.5 million in the final quarter of 2009, more than three times the $64.3 million seen a year earlier.  Even more impressive is that Starbucks’ consumer research shows higher satisfaction in every major indicator, such as value perception and experience, compared with 2008.

So why should you care about Starbucks’ turnaround?

Aside from the obvious financial success, the methodology behind the transformation reveals important lessons about driving rapid change on a large-scale.  Although many analysts would argue that the turnaround was due to store closures, aggressive cost cutting, and price increases, Shultz would take offense at this “financially focused” view of the transformation.  Starbucks did shore up key financial metrics, but Shultz’s vision for the company’s turnaround was to reconnect with its past: build upon the legacy of innovation and provide customers with a distinctive “Starbucks experience.”

In the July/August 2010 issue of Harvard Business Review, Shultz discussed his views of the four key elements to the dramatic turnaround at Starbucks:

Own the issues.  The first step of the turnaround was to challenge the leadership team to accept responsibility for the self-induced mistakes.  This started with Shultz.  As chairman of the board, Shultz acknowledged to the entire company that he was just as much to blame for the current situation as operational leaders.  An often overlooked step in the process, leaders “owning reality” is critical to expediting change.  Without the willingness to take responsibility, leaders spend their time justifying past decisions and protecting sacred cows, rather than learning from mistakes and making immediate course corrections.

Engage leadership in the process.  It was critical to Shultz that all managers and leaders own the relationship between each barista and customer.  “One cup of coffee, one customer, one barista at a time.”  To help ensure this, Shultz created a very public expression of this commitment to be accountable and responsible for each and every customer experience.  In the midst of financial woes, the company spent $30 million and took all 10,000 store managers to New Orleans for a company conference.  Prior to the start of the conference, every manager participated in five hours of community service (50,000 hours in total).  Using their hands, heads, legs, and backs, the team kicked off their renewed commitment to customer service by doing service.

Raise revenue and cut cost. After getting buy-in from company leaders, the team initiated a number of improvements aimed at quickly changing the financial condition of the company.  During the course of the first year, the company cut $581 million in costs, of which 99 percent were permanent and not customer-facing.  The company also made a number of changes in the stores to better align product and service offerings, including reintroducing Pike’s Place blend, selling healthier snacks, and launching a new loyalty card.  Finally, Starbucks ignored conventional advice and launched its highly popular VIA instant coffee.  With $100 million in annual sales during its first year, VIA provided a much needed shot in the arm as well as opened more than 30,000 new points of distribution for the company.

Focus on the customer experience.  As Shultz stated, Starbucks brand is based on quality coffee, but more important, on the relationship each customer has with a barista.  In a society where good service is rare and basic decency is often absent, Shultz decided the company would take a stand and demonstrate civility, respect, and trust in each customer interaction.  In addition, much to the dismay of Wall Street, Shultz got rid of reporting monthly metrics at the store level to move the pressure from producing good numbers to producing a good experience.  Finally, Starbucks launched www.mystarbucksidea.com as part of a new social networking strategy to connect the company with its customers in real time.  My Starbucks Idea is a portal that allows customers to suggest improvements to the store, products, and pricing, and for other customers to vote and identify the most popular ideas.  Actual Starbucks employees engage with the customers each week, respond to the ideas, and when an idea is selected, provide timetables and commentary on the implementation.  The portal generated more than 75,000 ideas in its first year alone.

At its core, “Starbucks represents something beyond a cup of coffee,” says Shultz.  While targeted revenue and cost improvements are one of the four primary elements of Starbucks’ transformation, Shultz emphatically states that it was the focus on the leadership engagement and creating a unique customer experience that were the secret to the success.

Like Starbucks, if we want to create an environment where passion drives our people and people drive our profits, we need to view change as something beyond the tools and techniques of continuous improvement.  Developing a lean culture is not the byproduct of achieving financial results through targeted kaizen events and Six Sigma projects.  In our desire to drive business results, we often let data, metrics, and financial impacts take precedence over crafting an inspiring vision and creating an emotional connection between our people and a larger purpose.

To accelerate your results, spend less time defining the what and how of continuous improvement, and more time defining who and why.  Engage people with an inspiring vision and connect their activities through aligned management systems.  By pointing the organization toward a customer-centric future state and giving people the autonomy to change products, services, and processes to achieve their goals, the organization can exponentially increase its success.