Making Adaptability A Habit

Adam Kingl

As published on Changeboard.com, 11 September 2020

We are living in an age of unprecedented rates of change.  We’re well versed in narratives about shifts in landscape, industry, market needs, and redundant strategies.  However, familiarity with the challenge does not necessarily create a solution.  What do we have to do as leaders to navigate these waters?  What skills do we require to keep our organisations relevant and successful in the 21st century?  There are mindsets, tools and practices that you can use for yourself and in the development of others to make adaptability and agility a habit.

In my consulting and executive education practice, I consistently see three barriers to adaptability, no matter the size or industry of the company.  First, the organisational culture punishes failure, or at least attaches a strong stigma to failure.  As a result, the priority is for perfection and predictability.  Generally, new practices, processes, products or services that we create are but tiny, incremental adjustments or improvements to what already exists.  Such an enterprise rarely develops the sort of game changing, supernova innovations that create exponential rewards and disrupts its industry.  So the first area to work on is the organisation’s attitude toward adaptability.  After all, you can be error-free or your can be agile; you can’t be both. 

Second, a huge reason that companies struggle to adapt is that their people don’t have clarity about what the change is supposed to look like.  Too many of us are familiar with the scenario:

Boss: After the board meeting, we’ve all received a memo that we need to encourage agility and innovation.

Put-upon employee: OK.  What should I be doing?

Boss: What do you mean?

Put-upon employee: What do I need to do that’s different to what I’m doing now that would demonstrate that I’m being agile and innovative?

Boss: You’ll work it out.  You know – explore! 

Since routines and habits are so difficult to disrupt at the best of times, it is incumbent on leaders not only to set direction but to suggest, not dictate, a vision for what a new direction could resemble, how it might impact the team’s day-to-day, and what behaviours are encouraged. 

Third, I have found it immensely helpful to suggest lenses through which leaders and their teams can practice adaptability and innovation with a little more focus.  For example, perhaps a team could run a 24-hour hackathon where they create experiments and then prototypes of innovations that they wish to develop.  That activity automatically moves the organisational needle forward in terms of enhancing its creative capacity.  Or a department could conduct some interviews with customers, suppliers and partners about what emerging trends they’re seeing in the marketplace.  This exercise would by definition break that team out of its internal perspective.  How many times do we try to adapt to a new world, but we only discuss the potential responses amongst a small set of colleagues?  Yet at the same time, we decry that we keep coming up with the same solutions to any problem!  It’s probably because we’re drawing from a toolkit that rarely refreshes. 

Change usually feels like a difficult, drawn-out, top-down, military campaign instead of an organic, market-driven, exciting prospect.  It can be the latter, but we have to question some of our long-held management paradigms about leading change that have fostered some our collective disabilities. 

  • Adam Kingl, www.adamkingl.com, is the author of Next Generation Leadership (www.nextgenerationleadershipbook.com) and is a keynote speaker, educator and advisor.  Adam was previously the Regional Managing Director, Europe, for Duke Corporate Education – Duke University, and the Executive Director of Thought Leadership and Learning Solutions at London Business School.  He is a writer, keynote speaker, educator and advisor.    

*First published in Michael Page and Future Talent Group, Adapting is Thriving in a Post-Pandemic World, 2020, p.9

https://view.joomag.com/michael-page-ebook-adapting-is-thriving/0887990001597657398?short&

Spare A Thought For Middle Managers

Perspectives: Spare a thought for middle managers
Written by
Adam Kingl, author, keynote speaker and advisor

Published
04 Aug 2020

Though they are often highly adaptable, middle managers can be the most overlooked element of any company. For Adam Kingl, a little more empathy for the ‘squeezed’ middle wouldn’t go amiss.
My recent book, Next Generation Leadership, explores how to engage and better manage Generation Y, the most junior segment of the workforce. In researching generational theory for the book, my sympathy for my own generation, X, grew exponentially. Gen X is crammed between two huge generations, the Baby Boomers and Gen Y, unable to enjoy the privileges and prerogatives of the Boomers and at the same time managing the most difficult group that the workforce has seen in the Ys. Gen X is currently our sandwich generation and is a perfect metaphor for middle management – pushed from above and pulled from below, unthanked, unloved and overworked. Yet we all acknowledge that our middle managers make the gears turn, hold the culture and need to pivot and have to adapt faster than anyone else in the company.

If our organisations depend upon middle managers, what paradigms about this critical segment might we need to revise?

‘Uncrunch’ the middle layer
First, I firmly believe we must challenge the assumption that the executive suite decides on new or revised products or services, and middle managers are responsible for executing those decisions. One of the greatest difficulties implicit in a hierarchical organisational architecture is that the more we are promoted, the less we talk to actual customers! Yet in too many companies it is the enterprise leader who decides the customer offer, and that leader’s concept of what the market may want could be years or even decades out of date. Instead, perhaps the external-facing employees and their managers should be incentivised to develop new and adapted products and services and submit the evolved prototypes and business plans to executives for sign-off.

Second, we must offer development to the middle management layer for what they require now, and not only what skills they need at the next level. In my many years of working in executive education, I find that too often organisational learning is around the skills that one will need at the next level, yet I observe so many capabilities that the employee needs right now! If we consider the areas that will help to ‘uncrunch’ the squeezed middle layer, they would be themes that would free capacity for expanded exploration and empowerment. These include customer-centric innovation, trends we perceive in the market and the consequences of those trends; experimenting and prototyping in order for the organisation to enjoy a constant pipeline of adaptations and creative outputs; articulating one’s purpose in work and enabling one’s team to do the same – this last theme is perhaps the most critical in a world that is wracked with disappointment about the role of business in society.

In these manners, learning initiatives are directed toward including the customer voice, enhancing the agility of the organization, focusing intent, and engaging and retaining the largest segment of the workforce. A little dose of extra empathy for the squeezed middle manager wouldn’t go amiss either. Perhaps my favourite phrase that I’ve ever heard from a colleage is ‘How can I help?’

Adam Kingl, is the author of Next Generation Leadership and is a keynote speaker, educator and advisor. Adam was previously the Regional Managing Director, Europe, for Duke Corporate Education – Duke University, and the Executive Director of Thought Leadership and Learning Solutions at London Business School. He is a writer, keynote speaker, educator and advisor.

You’ve got to fight for your right to innovate

If reaching optimal brain function requires longer than an hour-long meeting, we must schedule time for innovation, argues Adam Kingl.

Written by
Adam Kingl, author, keynote speaker and advisor

Published
15 Jul 2020

In my many conversations with organisations about their quest to be more creative, the challenge that I hear more than any other is, ‘We just don’t have enough time.’ Yet these same organisations complain that their relevance is declining daily because they are not as innovative as they need to be, governed by the tyranny of the daily schedule, the hundred emails, the endless conference calls.

So I offer one hack for individuals and organisations to be more creative that has little to do with bringing in jugglers, sticky notes on the wall, or foosball tables – be disciplined about carving out time to dream, brainstorm, prototype and look outside your immediate silo. After advising companies whose very existence depends on their creative capacity, such as Disney and Pixar, I found one crystal clear distinction in their daily habits versus those in organisations from just about any other industry. Companies who depend on innovation prioritise it in their daily activities. I know – shocking idea, right?

But I’m not asking you to trust my own experience or instinct. Let’s look to the neuroscience as to why this advice may be mission critical. We cannot trust that only hurried, captured moments of precious time for creativity will yield anything but paltry results. Our brains can’t turn on the creative magic for such short, unsustained periods of time.

It’s a state of mind

There are several brain states from deep sleep to normal consciousness to deep focus and peak performance. The higher the performing brain, the higher the brain wave frequency, hence Hertz is the degree of measurement. Our typical brain state during a normal work day is beta (14-30 Hz). You might disagree and suggest it’s theta (4-8 Hz), which is light sleep, and I would neither agree or disagree with you until I experienced your employer! But beta is probably our normal state and theta when we’re in committee meetings, agreed? Beta is what we require of our brains to accomplish our normal tasks of answering emails and solving our workaday problems.

Neuroscientific research has revealed that our brains can stay in beta for a long time and in fact are conditioned to stay there. As a result, if we crank the mental engine to get up to gamma (30-70 Hz) for peak performance and creative thinking the brain through habit easily and proactively usually drags us back to beta. Therefore, if we need our brains to be in gamma in order to be truly innovative, genuinely adding previously unheard of insight and exponentially big ideas, our brains would struggle to do that in, say, a one-hour meeting once a week, no doubt in the creative committee meeting! Beta state is like a constant and familiar noise; it’s the ever-present static of our work lives that can block gamma state. I compare it to how it’s hard for me to think when I’m eating an apple because I have this magnified constant crunching noise in the echo chamber of my skull.

We can’t shut off the laundry list of actions and decisions we have to make, even if we’re completely confident in our ability to make them. Beta is our habit, our rhythm, our tyranny. Because we don’t have balance between the mundane and the creative, we can’t achieve innovation even if we give ourselves those fleeting thirty minutes a week to do so. We have to fight for our right to be innovators.


 

Should We Focus On Our Strengths Or Our Weaknesses?

Perspectives: Should we focus on our strengths or our weaknesses?
Written by
Adam Kingl, author, keynote speaker and advisor

Published
04 Nov 2019

Our willingness to focus on negatives has persisted since the post-war era, and this includes our approach to talent management. Shifting emphasis from weakness to strengths can help transform personal development, argues Adam Kingl.

The ways in which we consider and develop talent are still largely derived from military influence on leadership in the wake of the Second World War, as imported into the business world from generations entering the workforce upon their release from service, and the “delete all errors” foundations of scientific management.

Our talent experiences these foundations as a two-pronged pincer assault on their weaknesses. The implications are that they are never good enough, always wary of slipping up, and their fleeting moments of pride and job satisfaction are quickly subsumed by frequent reminders of their own inadequacies.

Assessing strengths vs weaknesses

Consider your own experience of talent-assessment reports in the organisations in which you have worked; 99% of you will probably recall an almost universal way in which these reports are organised: your strengths and your weaknesses.

Now remember how you read and reflected on this assessment. For most of us it went something like this:

Strengths: “Oh, I’m pleased that I have done well here. I know that I’m good at these things.”

Reader now dismisses and forgets this section entirely. Similarly, their manager opens a development conversation with these strengths for all of five minutes, then never mentions them again.

Weaknesses: “Oh no, I’m not good enough. I’m a terrible colleague and an embarrassment to my family. I’m wholly inadequate. And who was that traitor who gave me ones across the board in my 360?!”

Reader obsesses about this section for the next eight months, and their manager is similarly obsessed, beginning every conversation with a progress report and feedback on how well the weaknesses are being addressed.

The positive effect of building on strengths
This is a deficits-based approach to talent assessment. It implies that the best way for our people to develop is to focus on and improve those things at which they are terrible. There’s a massive and obvious problem with this philosophy. Allow me to explain with a personal story.

When I was about 12 years old, my parents took me on holiday to a ski resort. I was hopeless on skis; ragingly atrocious. I was holding onto a rope (my only job was to hang onto the rope quietly and do nothing else) that would drag me up the kiddy slope…and I fell over. Since no one behind me could ski either, and I couldn’t navigate out of the way, everyone fell on top of me – a novice skier puppy pile. My nose met my tonsils, as I was squashed into the bottom of a Black Forest Gateau of helmets, scarves and skis, a tartiflette of flattened bodies and egos.

Now, here’s the point: imagine I’d spent the rest of my life attempting to be a world-class professional skier. That was never going to happen, and I don’t regret it. I pursued hobbies that I enjoyed and academic topics about which I was either curious or had some natural aptitude.

I’m sure that for most people this is completely normal and ‘commonsensical’. Yet in most companies today, incredibly, we assess and spend our development resources as if we want to turn our ‘worst skiers’ into ‘average skiers’.

Developing world-class qualities

Wouldn’t our organisations be stronger and our people more fulfilled and successful if we identified their strongest skills and invested in turning those great attributes into absolutely world-class skills?

The shift we are just beginning to experience is from deficit-focused performance management (improving one’s weaknesses) to a focus on strengths. If we work on our weaknesses, most likely we can at best hope to improve those areas from ‘weak’ to ‘mediocre’ or ‘barely passable’ and only after an unconscionable amount of unfulfilling graft and attention.

If we work on our strengths, we have at least some chance, maybe even a reasonable one, of improving those qualities to ‘world class’, which will have a stronger impact on us individually and on the success of our organisations.

What do you want to tell your customers?

“Everyone in our company is world class at something, and we’ve worked hard on that.”

Or: “Everyone in our company is at least average in everything, and we’ve worked hard on that.”

Generational shifts
This shift from weakness-based assessment to strength-based assessment will only accelerate as generation Y (millennials) grow in numbers to become the majority of the global working population. As one typical way in which a generation develops its attitudes is its reaction to previous generation(s), gen Y is clearly embracing a healthier approach to self-regard, celebrating what colleagues can bring to the table.

Positive psychology is also a harbour from the ceaseless economic and socio-political breakers crashing into generation Y’s already justifiably shaky sense of security and confidence.

Adam Kingl is the author of Next Generation Leadership and a keynote speaker, educator and advisor. He was previously the regional managing director, Europe, for Duke Corporate Education (Duke University), and the executive director of Thought Leadership and Learning Solutions at London Business School.

How Lockdown Is Changing Decision Making

By Dawn Cowie, The Financial Times

People Feature

28 April 2020

 

The Covid-19 lockdown should be used to usher in a new era of more devolved decision making and put an end to control freakery, say experts.

Leaders have an opportunity to learn from the crisis by stamping out micromanagement and trusting more in the expertise of managers that have kept businesses running smoothly in unprecedented times.

Some firms have been taking the lockdown as an opportunity to streamline and speed up decision-making procedures that are too cumbersome.

Adam Kingl, author of Next Generation Leadership and keynote speaker, says: “Your people, customers and community are looking for transparency and quick answers. This is not the time for bureaucracy to encumber action.”

Having never run a business remotely before, leaders have been deferring more to specialists in their operational, technology and digital teams.

Chris Mills, a financial services expert at technology consultancy 6point6, says decisions about day-to-day issues, such as client reporting, are being taken “faster than ever”.

People in operations and technology teams at fund firms say getting authorisation to push ahead with existing projects has become much quicker, according to Mr Mills.

Typically, business leaders ask if everything is “as expected” and, if there are no problems, then they give the green light, he adds.

Increased levels of trust in IT and operations chiefs over the lockdown period may have lasting consequences, says Mr Mills.

Now that technology and digital strategy are being recognised as business critical, Mr Mills expects more chief technology and digital officers to be given seats on boards.

Remote working has, however, thrown up particular challenges for firms going through strategic change.

Tim McEwan, culture coach, and former head of leadership and development at Henderson Global Investors, says remote working has slowed down the pace of decision making at one firm going through a transaction.

In normal times, “corridor conversations” play an important role in allowing people to clarify points, where there might be a lack of understanding, he says.

Without these side conversations, people tend to have to go over the issues again in another round of Zoom calls, which may lead to better-quality decisions but it takes longer, says Mr McEwan.

The inability to micromanage the business at a time of crisis has been a real shock for some leaders, particularly traditional owner managers.

Mr McEwan says it has been “an uncomfortable time” for leaders who prefer “closer management” because they cannot “eyeball everyone”.

“Bosses don’t need this level of control,” says Mr McEwan.

“They need to be clear about who holds the decision rights. This must be discussed, agreed and signed off. Then they need to trust people.”

In a “shocking” attempt to retain control, one boss asked staff to wear jackets and ties on Zoom calls at the start of the lockdown, Mr McEwan says.

At another firm, managers wanted daily team gatherings at 5:15pm to talk about what had been done during the day.

The idea backfired because it was seen as a way of checking up on staff and an indication that managers did not trust them, he says.

The flaws that undermine effective decision making in physical meetings can be even worse in virtual meetings, say experts.

While meetings should be about “idea creation”, the reality is that people often sit around “waiting for the leader to say something”, says Mr Kingl.

“This dynamic risks being even worse when teams work remotely. It’s scarily easy for people to be even more silent in a virtual meeting,” he says.

Mr Kingl suggests that managers try holding team discussions on an online discussion board, where everyone is asked to contribute at least three ideas and comment constructively on at least two others.

This means that “introverts can reflect before answering, the less confident can reply thoughtfully and bravely”, says Mr Kingl.

Adding anonymity to contributions reduces the senior voices from owning the lion’s share of the conversation, he adds.

A virtual forum can then be used for part of the discussion or for teams that are particularly diverse.

This approach can help leaders to “bring out the best in everyone”.

Leaders need to be “much more aware of the composition of virtual meetings”, says Mr McEwan, who adds that 20 people on a Zoom call is a nightmare.

“The chair has to work really hard to control the discussion, which may mean they take their eye off the content,” he says.

It may be better for bosses to let someone else control the meeting so they can focus on “the meat” of the discussion.

Experts say the pandemic should not be used as an excuse for putting important decisions on hold, even if they involve a change in direction.

“The pandemic may very well have changed priorities or assumptions about our organisations’ business models, operations models, talent strategies, channels to market or customer segments,” says Mr Kingl.

“It might be a once-in-a-generation opportunity to really take a moment to examine our organisations’ long-held beliefs and ask if they’re still fit for purpose,” he says.

Next Generation Leadership

Ten Steps to composing a world-class Learning & Development RFP

L&D Insights

Ten steps to composing a world-class Learning & Development RFP

Diane Nowell

Headspring recently hosted a webinar to explore how a well-constructed RFP can drive excellence when it comes to matching businesses with best-fit L&D providers. Adam Kingl, consultant and author of ‘The Next Generation Leadership’, joined forces with Headspring’s Corporate Partnership VP, Jean-Marie Ardisson, to share their insights and to demystify what can be a daunting exercise. Here’s what we learned.

While it’s not essential to frame every fragment of outsourcing within a formal procurement procedure, large or complex L&D projects often demand a more measured approach.

This is where an RFP, or a request for proposal, comes into play. Outlining project specifics in a document that invites potential service providers to return a considered bid for the work not only standardises criteria but also allows businesses to probe the strengths and weaknesses of vendors in the most cost- and resource-effective way possible.

Crucially, an RFP can tease out the tricky non-tangibles, too. Finding the right cultural fit can be every bit as important as securing the keenest price.

Rather than considering the RFP an end in itself, it’s helpful to view it instead as an invitation to establish a dialogue with both internal business partners and potential providers and partners. It’s an opportunity to collect new ideas about learning and development, in the broader sense, as well as to search specifically for programmes that deliver the most significant impact, given financial and time constraints.

Jean-Marie describes an RFP as a framework for conducting L&D operational conversations.

‘When we are asked to create a learning journey for a client, we invite them to tell us what they are looking for and how that connects to broader strategic challenges they’re facing within the business’.

If an RFP is the key to kick-starting this dialogue, how can companies construct RFPs in a way that engages interest, communicates project essentials and invites bids from the best-qualified and most closely aligned providers?

1.      Be yourself

The RFP offers an ideal opportunity to let prospective providers into your world. First and foremost, prospects will need to know more about you than can be gleaned from browsing your website or Wikipedia entry. Project your corporate personality and be frank about the qualities you’re seeking in the perfect partner. You aim to attract bids from organisations that are excited to work with you, so you’ll want to show them who you really are.

2.      Establish context

It will help L&D providers immeasurably if you take the time to create some background around your ‘why’: why this initiative, and why now? Whether the L&D project is a response to changing market conditions, regulatory requirements or perhaps forming part of a broader transformational journey within your organisation, the context will impact programme scope and L&D outcomes for all parties.

As Adam says: ‘Programmes are best when they’re deeply contextualised rather than generic. Anything we create together has an impact on participants and the organisation; we need to address both things and appeal to both. The energy we generate will mean that participants become ambassadors in their organisation, disseminating information long after the L&D programme has reached its conclusion’.

3.      Define your goals

Be clear about the expected scope of work. Clarity is essential. L&D providers will be wary of so-called ‘scope creep’ from RFPs that lack detail, so, including as much information as you can about your requirements is essential and will keep time-wasting (on both sides) to a minimum. Including all stakeholders – sponsors, HR, procurement and learners – in the discussion process will help to create an informed RFP.

4.      Set evaluation criteria

Generally speaking, if you haven’t yet decided on the metrics for measuring success, you’re probably not yet ready to distribute your RFP. Until you know what success looks like, you won’t be able to evaluate the impact of your L&D programme. That said, outcomes can be slippery when it comes to measuring learning impact. For instance, traditional ROI metrics are only applicable if the organisational objectives are related to growth in revenue or market share.

Adam suggests considering ROL (return on learning) as an alternative metric: ‘Measuring success could be linked to how the learning has affected participants, how it’s continuing or if there are changes in behaviour. You don’t want to start looking at those until a few months down the road’.

5.      Agree on a budget

Any potential L&D supplier will need to have an idea of budget so they can factor it in when planning a response. It can be presented as a range rather than a specific number, but it must be approved before the RFP is completed. No budget is a recipe for disaster. An RFP without an approved budget will act as a red flag for most providers as it’s usually considered indicative of a project that hasn’t been fully embraced internally and is perhaps still in its early stages. Before you create your RFP, ensure you have engagement from sponsors who are ready to agree on the project and sign off on the funding.

6.      Be transparent

It’s essential to be honest about what you’re looking for. While the RFP is intended to formalise the procurement process, it shouldn’t become so constrained that it becomes purely transactional. If you can be transparent about your needs, you’ll invite more open and honest dialogue and be more likely to secure a good fit for your project. The RFP should go way beyond acting as a tick-box exercise.

7.      Remain open to ideas

While defining criteria is a crucial aspect of any RFP, it’s also vital to leave room for fresh input. A challenging idea or design you hadn’t contemplated. A contributor, location or simulation that wasn’t discussed. Consider framing questions in a way that swerves stock answers and encourages creativity. Give the provider a chance to show their expertise.

As Adam says: “At its best and RFP process is an invitation to innovation. In other words, is the organisation saying: ‘Here’s where we’ve got to, and we’ve thought very hard about it, and we’ve talked to many people in the organisation. Now build on that for us’?”

8.      Propose a schedule

Ensure enough time is baked in for co-creation. This planning will vary depending on the client and the project, but, remember that the design and development process is critical: if the design isn’t right, we are less likely to meet objectives. Iteration is an essential step in the process and shouldn’t be considered optional; often, a design will need to be socialised to ensure it’s a good fit. Conversely, an unlimited amount of time isn’t always conducive to a good programme – every project needs boundaries in terms of time and budget.

9.      Offer insight

Consider what you can bring to the process. If you can offer programme support, a learning platform or expertise, it will affect how any programme is created and delivered. Similarly, including a profile of the participants will be invaluable to programme designers who will want to know about the learning culture in your organisation. Do people work in teams? Are they prepared to put aside a couple of days for learning, or does it need to be delivered in bite-sized amounts?

10. Keep it real

Be realistic about your expectations: don’t ask for every detail of the solution at this stage. You want to know what it’s like to work with potential suppliers, what kind of solution are they going to put forward in terms of skills, creativity, professionalism and resources, but they shouldn’t be expected to prepare the detail until you’ve awarded the project. Finally, don’t issue your RPF until the project – and the accompanying budget – has been approved.

To access the full recording of this webinar and learn directly from our experts, please visit our collection of free developmental webinars HERE.

How To Fail Successfully

How to fail successfully
The most innovative companies embed experimentation in their strategy and extract maximum learning from their mistakes.

JULIAN BIRKINSHAW AND KATHY BREWIS
27 MARCH 2020

Everything has shifted – and it continues to shift. Being able to adapt quickly could make the difference between staying afloat and foundering. Most fundamentally, says Julian Birkinshaw, Professor of Strategy and Entrepreneurship at London Business School, business leaders and managers should reevaluate and think afresh about risk, uncertainty and failure.

“Many organisations have highly structured ‘stage-gate’ processes for managing innovation, as a way of keeping things as orderly and predictable as possible,” he says. “But the reality is that innovation is messy and requires an acceptance of high failure rates. And never more so than in these unprecedented times.”

Many businesses will struggle to embrace this new reality. They might know in theory that failure is meant to be valued, but they’ve not quite put this into practice. Old habits die hard: bosses used to holding postmortems when projects or products fail are now going to need to focus on genuine learning.

“I have seen several companies adopt a zero-tolerance approach to failure,” says Professor Birkinshaw. “The person who failed gets fired, the failure gets swept under the carpet and everyone gets the message that this must not happen again. This creates a fear culture – people follow the rules, whether they make sense or not, and no-one dares try anything new. Not a recipe for success in this world where the context is changing daily.”

Experimentation takes courage
Fortunately, there are some lessons we can all learn from businesses that have taken learning from failure seriously. Tim Harford, author of Adapt, said there were three essential steps: try new things, in the expectation that some will fail; make failure survivable, because it will be common; and make sure that you know when you’ve failed.

Professor Birkinshaw advocates an essential strategic shift for business leaders: fail methodically, through robust experimentation – and learn to maximise your return on failure. This sounds like an excellent plan. So why don’t more people do it?

“When you actually take a business person with responsibilities and a budget and sit them down and say, why don’t you do this as an experiment? They’ll say, ‘No, that won’t work: let’s pilot it or do some more research’,” says Professor Birkinshaw. “Experimentation is beautiful in concept but it’s very difficult for people to have the guts to follow through. An experiment says, let’s run two different pilots. You have to admit that you don’t know the right way forward – and nobody likes to admit that.”

Rajesh Chandy, Professor of Marketing and Academic Director, Wheeler Institute for Business and Development at London Business School, has studied how innovative companies incorporate failure in their corporate culture. He says: “Innovative companies often have asymmetric incentives for enterprise. Enterprising employees in these companies understand that the rewards for success will be much higher than any punishment for failure.”

“It’s not the case that failure has no negative consequences in these companies,” he points out. “Those responsible for failure may get their wings clipped, or may face higher burdens of justification the next time they propose something. But the incentive structure is such that if they succeed, the rewards will be disproportionately higher than any negative consequences should they fail.”

“Moreover, innovative companies manage risk by having a diverse portfolio of innovation projects – some that are quite risky, and many others that are quite safe. They also look outside and capitalise on the risks that others are taking. By letting the ecosystem do some of the risk-taking, they reduce the risks to themselves.”

Professor Birkinshaw recommends drawing up a balance sheet to assess a project’s return on failure. On one side, consider your ‘assets’. These might include: What have you learned about your customers’ needs and preferences? Do you need to change any of your assumptions? What insights have you gained into future trends? What have you discovered about how you work as a team? On the other side, look at your ‘liabilities’: costs, both financial and less tangible costs such as damage to reputation or morale. Bottom line: What are the key insights and takeaways for your business?

Costas Markides, Professor of Strategy and Entrepreneurship at LBS, agrees that experiments are crucial in identifying which of your ideas will fly, especially if you’re trying (or indeed forced) to innovate in a company that’s resistant to your big ideas.
“How do you select the good ideas? Try them out. Get the data and then you can say, ‘Look, what do you think about it now?’ Design clever little experiments to try your ideas. Small-scale, low-cost experiments, that get results quickly.”

Great idea – now prove it

This is the tricky part. “You have to bring the learning into the workplace,” says Adam Kingl, an executive education programme director at London Business School. “Realigning our position on failure, risk and experimentation is key. Aim to build a capability throughout the whole organisation so that as many people as possible have a chance to spot and respond to what’s coming in the distance. Leadership is about enabling your team continually to respond, experiment and get in front. If you experiment, by definition you will be more agile.

“Aristotle said, if you want to be a braver person, find a brave person and imitate them. Just by imitating ‘brave’, you will automatically be braver. That’s what experiments are. They give you the opportunity to try or even just imitate ‘agility’. In so doing, you will be more agile in a year’s time. Why do you need to be agile? Because, as one CEO put it, business used to be like trying to spot trends and opportunities when you’re on a swing – you’re are always moving but you can still keep an eye out. Today, it’s like trying to do so while you’re on a rollercoaster. So you need to experiment to build your agility muscles.”

Here is a four-step risk-mitigation framework Professor Birkinshaw suggests you keep in mind when you’re designing experiments:

1. Make your hypotheses explicit – a good experiment is designed so that whatever the outcome, you’ve learned something new. It’s much better to be able to say your hypothesis wasn’t supported than to say the project failed.

2. Limit the scope of the experiment. In the world of IT, the ‘sandbox’ is the offline testing environment where you try out new code. The same concept applies in business more generally – try the experiment in a limited way and make sure to run the new in parallel with the old.

3. Start at home. You want to stay under the radar during the early days of your experiment, while you figure out if it’s really a good idea. So this means trying it out in your own department or business first, and using volunteers to help you. You don’t want to expose yourself to formal review until you’re well down the track.

4. Iterate. You never get everything right first time. So learn the power of iteration and continuous improvement. James Dyson famously tried more than 5,000 prototypes before his bagless vacuum cleaner worked. Hopefully you won’t need quite that many.

Ultimately, what’s required is a shift in mindset. Kingl carried out a survey asking more than 100 UK HR directors about their company’s reaction to failure. Answers ranged from “A: Anyone who fails is quickly fired” through “B: We never speak of it – it’s shameful”, “C: ‘Good’ failure is tolerated but not shared” and “D: Failure is shared to a point, but there’s a stigma” to, finally, “E: Failure is shared and even celebrated”. Only 3% of the HR directors said their company’s attitude was an E.

The attitude you want to emulate is that of Tom Watson, CEO of IBM, in the company’s 1960s and 70s heyday. When a top salesman lost US$5 million on a project, Watson didn’t fire him. “Why would l fire you?” he said. “I’ve just spent five million dollars on your education.”

Virtual Management in a Virtual Age

In these times, virtual teamwork will be a critical function in the workforce.  I have little doubt that mastering virtual teamwork in practical application will be a hallmark of the successful, next generation leader.

Putting “Virtual” to the Test

Even ten years ago, I thought that managing virtual teams would be a critical skill of the twenty-first century leader.  I had hypotheses about how to do this well, but I needed data to test these.  So while directing the Emerging Leaders Programme at London Business School, I added a simulation to the curriculum both to invite participants to reflect on their effectiveness at virtual teamwork and, for myself, to identify the critical success factors.

I invited participants to complete a competitive challenge, using both face-to-face and virtual methods. Before arriving to the program, I asked students to submit pressing dilemmas that their companies faced. I then identified two of these questions for the students to tackle in the competition; questions were easily comprehended, did not rely on technical or deep, industry-specific knowledge, and would have great impact on the business if these thorny issues were cracked.  For example, in one cohort, the dilemmas were related to the news industry:

How can an international news division bring to life its new brand tagline, “Never Stop Asking?”
How can newspapers make money selling to a Google generation used to reading content for free?

Students were split into two teams that incorporated a diverse set of expertise, nationalities and industries.  They had one week to brainstorm and refine solutions to each question. They were allowed—and encouraged—to take advantage of the “wisdom of crowds” by soliciting input from people outside the program too.

There was one catch: Team A had to answer question one using only face-to-face communications only and question two using solely virtual methods.  For Team B, these requirements were reversed.  When working virtually, students could use any tools or forums they wished, including video or teleconference, e-mail or social networking sites.  We also constructed a simple website that allowed teams to post, categorize, rank, and discuss proposed solutions. The website was also accessible to people outside the course, if they were invited, who could then review and contribute to the online discussion.

At the end of the week, the teams presented their conclusions to a panel who scored the merits of each solution without knowing whether students used face-to-face or virtual methods.[i] After the panel gave its feedback, we discussed what the students found to be the advantages and pitfalls of virtual teamwork, as well as the key differences between working virtually and working face-to-face.  This exercise brought to light many dynamics about the nature and requirements of leading and working in a virtual team.

What Works, What Doesn’t

Virtual teams that set too many rules or were too rigid about how and when participants contributed were not as successful as those that were more flexible. Different time zones, for instance, required that teams set slightly longer deadlines.  Allowing for asynchronous discussion versus requiring real-time “chat” generated higher quality ideas and responses to colleagues’ suggestions.

Virtual teams that collaborated using customized, online team rooms produced final ideas and presentations that the panel scored better than those teams who used social networking sites such as Facebook.  These sites often offer little functionality to organize activities effectively, search information, engage in complex discussions, or rank ideas.  Teams using Facebook, for instance, either did not participate in brainstorming activities or did so unproductively, perhaps because interactions on the site tend to be largely superficial. Users weren’t used to using the site for this exercise’s purpose.

Although virtual teamwork isn’t necessarily more effective than face-to-face teamwork, we concluded that virtual teamwork that is well-facilitated and well-supported by a platform that is more fit for the purpose can actually be superior to face-to-face interaction, particularly for large or geographically dispersed teams. We encouraged students returning to work to have conversations with their IT departments about creating customized team rooms rather than relying on existing sites with pre-determined features.

A Different Set of Skills

The program’s participants consistently converged on at least two realizations about virtual teamwork:

First, charisma, a traditional leadership trait, is usually disintermediated in a virtual environment.  Therefore, team members could not rely on force of personality, but on clarity and the ability to delegate. “Leading” in these interactions was less about exhibiting authority and more about emphasizing team accountability, reaching consensus, and being open to challenge.

Second, merit has more power than personality or hierarchy in virtual teams.  Introverts or those who are working in a second language may actually thrive in a virtual team. We have all experienced how factors such as introversion/extraversion, cultural norms, gender, career level, and reporting lines contribute to only a few voices, sometimes only one voice, dominating.

At its worst, an overly hierarchical dynamic can not only ruin engagement, or even careers, it can aggravate catastrophic decisions.  The story of the tragic 2009 crash of Air France flight 447, which killed 228 people, is the cautionary tale.  On that flight, the crew came up through both a national and industry culture (though the latter is changing) where the captain is always right, who brooks no “interference” from his subordinates.  In turn, the captain’s co-pilots, such as those on that fateful day, do not feel it is their place to disagree with their superior officer whether it is a command, a suggestion or an opinion.

On May 31st, 2009, en route from Rio de Janeiro to Paris, storms lay in the way of the planned flight path, and a rare but not unheard-of mechanical fault occurred when ice crystals at high altitude clogged the airplane’s air pressure probes, causing altitude measures to read less accurately.  The co-pilots chose not to alert the captain to the storms that lay ahead, deferring to him to identify the bad weather and plot a course to avoid it, which did not happen.  The flight crew made a series of poor decisions and even worse communications that ultimately drove the plane into the Atlantic Ocean.[ii]    The Air France case illustrates the all-too-common dynamic that occurs in so many offices, factories and stores around the world, where initiative, productive dialogue, challenge and imagination are preemptively suppressed.

Most of our organizations’ architectures are predicated on a pyramidal hierarchy, which for centuries has suggested a tacit dogma of the manager’s infallibility.  This canon has ruined many millions of meetings, where idea creation gives way to waiting for the leader to say something, and agreeing or remaining silent, where the extrovert jumps in with their contribution first and often, while the introvert is still processing options and responses.

In a virtual, asynchronous environment, introverts can reflect before answering, the less confident can reply thoughtfully and bravely.  Adding anonymity to contributions reduces the senior voices from owning the lion’s share of the conversation.  The best ideas rise to the top instead of those which happen to be from the most senior.  Therefore, if an important objective of any leader is to bring out the best in everyone, then he or she should utilize a virtual forum for at least some discussion and particularly on very diverse teams.  Two important points to remember when considering virtual teamwork:

First, technology does not solve every problem.  Virtual teamwork can fail if leaders do not attend to the fundamental problems of coordinating, engaging, and motivating individuals across time zones.  It’s easy for team members to disengage when they’re not face-to-face, so the leader must convey a high degree of enthusiasm and clarity, and agree on who is accountable for what from the start.

Second, assumptions are dangerous. If team members are from different cultures, countries, and time zones, leaders cannot assume that everyone shares the same understanding of how the team will work. For example, will everyone be in one virtual “place” at the same time, or will they contribute on their own time? Our students’ most important takeaway is that to lead a virtual team, they must focus on team maintenance (How are we going to work together?) before task maintenance (What is the problem we are trying to solve?).

[i] I’m grateful to Moti Shahani for his collaboration with this exercise.

[ii] William Langewiesche, “The Human Factor,” Vanity Fair, October 2014.

The above is a chapter excerpt from my book Next Generation Leadership:

http://nextgenerationleadershipbook.com

The Leader’s Creative Challenge

I despair when CEOs tell me that they have finally filled in their organisation’s creative deficit by hiring a Chief Innovation Officer. They abrogate not only their own responsibility for the company’s creative output, but that of every other person in the organisation. Not to put too fine a point on it – every leader and every colleague is responsible for maximising innovation.

If we define ‘creative activity’ as ‘inventing and implementing a new idea’, then it’s useful to break down this ideation process into four steps: generation, evaluation, selection, and implementation. I will focus on the first two stages here.

With every client with whom I’ve worked, the first and often most significant obstacle to unlocking team creativity is that the team leader does not distinguish between generation and evaluation of ideas and stage these two discussions sequentially. In other words, if a team attempts to come up with ideas and to evaluate the merit of those ideas at the same time, then each person in the group is turning up the dial on their inner critic to eleven. No one wants to be criticised in front of one’s peers, so everyone tends to hold back on suggesting ideas until they have one that’s at best magnificent – a once in a lifetime idea – and at worst one in which they can’t poke any holes. The result – lots of uncomfortable silence as each person’s brain assesses its own ideas’ potential for perfection.

The leader’s task therefore in enhancing creative output is to announce that first we are generating as many ideas as possible without assessing their merits. If colleagues seek validation, then they should focus on volume, not quality. There are at least two reasons to follow this recommendation. First, there are reams of research that tell us that creativity starts with having a lot of options from which to choose. Second, too many interesting ideas are immediately sacrificed at the altar of perfection. Many, with a tweak or two, could be brilliant, so better to raise them and let them gestate for a while. This is a terribly important role that the leader must play because so much of corporate life at its worst has been one-upmanship: colleagues’ demonstrating how clever they are by how swiftly they can shoot down suggestions.

The leader’s next task is similar to the first now that the team has produced an ample list of ideas. Before we consider which suggestions to eliminate, let us marinate in the dry rub of the possible. Rather than beginning with why it won’t work, an incredibly important question by the leader is, ‘Why and how could this idea work?’ It’s a subtle but fundamental pivot in creative conversation. In considering a world in which an organisation can launch something genuinely new, begin by creating ‘idea houses’. In other words, how tall of a vision can you build from a foundational idea? These suggestions are but the tip of the iceberg in terms of how the leader shapes the environment in which innovation excels.