How to Create Remarkable Teams PART 2 – Collaboration

Great teams are forged by collaboration and self-managementIf You Want Remarkable Teams…  Build for Collaboration

If you want a great race car, you build it for speed. If you want great teams, you build them for collaboration. To get you started I will expand on the list that MIT research scientist Peter Gloor calls the “genetic code” of collaboration: learning networks, ethical principles, trust and self-organization, knowledge sharing, and transparency. All of what I describe here applies to building remarkable teams as well as building a remarkable culture in your organization.

The 5 building blocks of collaboration

1) Create a Learning Environment 

This is quite challenging as it either never feels like there is enough time to dedicate to learning or it feels like an unproductive use of available resources. But, do not underestimate the value of continued individual and team learning. When human learning slows down, people tend to lose creative and problem solving capacity. In team development, research has shown that individual learning works best when accompanied by team learning.[1]

Some examples of shared team learning are:

Regular seminars and guest lecturers: Bring in experts and professors on various topics related to the history, science, or culture of your industry as well as sociologists, anthropologists, and technologists who work in peripherally related fields.

Cross-disciplinary training: On a regular basis have members of different departments lead instructional discussions on their particular specialty. So the designer teaches everyone about UX/AI, the coders teach about their development methodology, the project managers teach about agile protocols, and the sales people describe what it is like in the field.

Cross-cultural stimulus: Whatever field you are in, once-a-month take your team on an educational/cultural outing to do or see something that has nothing to do with thier work. E.g. take a team of developers to tour an abattoir, take the human resource team to a museum exhibit on ancient Egypt, or take legal on an outing to a flower show. It is important to make it a regular outing, and to really explore intriguing, albeit unrelated subjects as a group. The benefit of this kind of team activity, is the opening of one’s mind, and shared creative stimulus, which fosters innovation.

Show and tell: one morning a week, have team members or co-workers bring in an example of counter-culture that they have unearthed. Examples could come from art, comics, film, music, architecture, economics (weird black markets), music, media, etc… Creating opportunities for team members to communicate and share both creatively and intellectually improves team communications and fosters innovation.

These are just a few examples. You can explore and experiment with many other ways to create a learning environment. The key is to develop determination and commitment for the process.

2) Make Virtue an Organizing Principle –

It is essential to build in a framework of virtuous and ethical principles. My work and research has identified two categories of virtuous principles: 1) emotional capacity and 2) interactive capacity:

Emotional Capacity involves:

  • Empathy – the ability to feel what others feel
  • Openness – willingness to explore and to change
  • Emotional availability – capacity to share and express
  • Fortitude – tolerance for stress, uncertainty, or chaos
  • Emotional control – successful anger and/or frustration management
  • Humility – acceptance of criticism and/or direction
  • Consideration – social awareness, compunction, compassion, inclination for kindness
  • Curiosity – inclination to learn
  • Zest – enthusiasm for life, work, learning…

Interactive capacity includes:

  • Mutualism – ability to see your success in the success of others
  • Perspective – ability to see or sense the big picture, long-term thinking
  • Self-sacrificing – willingness to give personal gain for the gain of others
  • Rational capacity – ability to set aside emotional agendas
  • Cooperation – willingness to collaborate
  • Systems intelligence – sensing the big picture and how things connect
  • Benevolence – depth of commitment to not cause pain or suffering
  • Integrity – ability to inspire/engender trust and loyalty

Similar to creating a learning environment, building an organization that not only supports virtuous principles but also causes them, requires you to invest heavily in leadership. Your  dedication to creating a remarkable environment is crucial.

One of the most obvious steps toward creating a virtue-inducing environment is to look at your own level of emotional and interactive capacity. You (and your co-founders) should evaluate yourself using the above list of seventeen principles. Obviously, your behavior is one of the most important influences on your teams and your culture. An honest self-evaluation will tell you where you have to increase your emotional and interactive skills.

Beyond your own comportment, much can be done to induce virtuous behaviors. You begin with a sincere and explicit commitment to the betterment of all stakeholders. This means partners, investors, employees, customers and the greater community. You must have an attitude of, “Everybody wins or the game’s not worth playing.” Even competitors can win in this scenario, because, you set the standards. One way this will affect the competition for the better, is that you will attract the better employees who can bring you better and more customers. The competition then has to come up to your standards or drop out. (This is a bit simplified and is not always the case, but is a pattern we can expect to see increase in the future).

3 steps to building virtue into your organization:

Introducing and executing this commitment to virtue requires you to adopt a consistent, three-stage process of, 1) establishing standards, 2) reviewing standards, and 3) making adjustments accordingly. Here is how it could look:

i. Establish clear descriptions of the type of behavior you expect from everyone. Avoid vague or general expression, such as, “politeness or “integrity”. You should list specific behavior such as:

  • Listening attentively,
  • Asking questions that show curiosity and attention,
  • Being grateful for each chance to explain and clarify your expectations,
  • Expressing a willingness to learn,
  • Discussing persons who are not present as if they were,
  • Looking for opportunities to advance the interests of others-through support, acknowledgement, training, etc…

These are just suggestions to help you to generate your own list of desired behaviors.

ii. Review how well your organization lives up to the established principles. Do reviews:

  • Regularly (once a month),
  • Collectively (involving everyone), and
  • Rigorously (with honesty and diligence).

You may find it necessary to bring in professional facilitation if you are running into excessive resistance or acrimony. But, when you succeed at this step, you will have created a significant shift in your organization’s psychology.  You will have created a culture conducive to collaboration, greater employee engagement and enhanced productivity.

iii. Adjust the established principles as insights from the review process indicated. This is  a responsive process and not about setting hard and fast rules. Establish objectives and use these to assess and improve individual and group behavior in a continuous way.

3) Build On a Foundation of Trust and Self-Organization –

I will be discussing self-organization more explicitly in part 3. So, here, let’s focus on the importance of trust, which is a direct result of yours and your organization’s integrity. If you fail to create an atmosphere of trust you will fail to instill self-organization. Poor organizational trust is also an indicator of lower cooperation, productivity, and sales (Davis, Mayer, & Schoorman, 1995; Davis et al., 2000).

Trust has received attention from social scientists for decades. Like wise men exploring the elephant, each different scientific field describes a different aspect of the animal. Sociologists  (Luhman, Gambetta, Barber, Giddens, Sztompka, et al) are concerned with the position and role of trust in social systems and this sociological perspective has brought important insight into the nature of trust within a system and the differing ways to measure trust among the participants in the system. A quick summary might be: trust is the strengthening and weakening glue of an organization.

Psychologists (Erikson, Deutsch, Worchel et al) focus on trust as an interpersonal experience. In general, psychology explores a range of trust issues: starting from child development studies and continuing to the effect of organizational justice (DeConick, J. B., 2010), and even looking into the impact of facial features (DeBruine, Lisa, 2002). Think of the psychology of trust as: the individual and organizational factors that foster or diminish trust.

Economics and game theory also provide valuable insight into the study of trust (cf. Nash Equilibrium, Pareto Principle). In economics, trust is a mechanism of efficiency. The more trust that exists between players, the more efficiently the system, market, or organization will work. Basically, trust produces efficiency.

My own work brings together all these disciplines together in a management 3.0 model based on:

  • The importance of trust as a precipitator of self-organization
  • The importance of your own emotional state (which affects how others perceive you)[2] for encouraging trust
  • The importance of your organization’s rules and culture in fostering trust

A brief road map for increasing trust in your organization might include:

  1. Analyzing and adjusting your own attitudes and emotions towards others; if you don’t already have it, you must develop a deeply respectful and caring concern for the welfare of others (this applies to all partners and organizational leaders who must also adopt this position).
  2. Finding the right balance between bureaucratic controls (agency) and laissez-faire or staff-latitude (stewardship). To create trust you must give trust. This means you are willing to make allowances for mistakes. You must provide both the boundaries and the support for this.
  3. As the CEO or manager, demonstrate through your questions, actions, and policies, that you understand the interests of your staff and/or team members and that their interests are reflected in the way you make decisions.
  4. Model sincere patience, kindness, and understanding when you are hearing about errors and mistakes, or when investigating a problem. This will encourage organizational members to speak freely even if they are at fault.
  5. It is important to encourage and support even when the creative efforts of others fail. One part of fostering creativity and innovation is to accept the inevitable failures.
  6. Promote the importance of vulnerability by both modeling it and encouraging it through constructive contact. This means being willing to hear and consider the criticism of others. And always be conscious of the way you deliver criticism. Constructive criticism comes from a personal desire on your part to help people do their best.
  7. Involve stakeholders in a participatory way. This means allowing people to influence decisions to the extent that the outcome of a decision will influence them. The more the people you are interacting with feel they have influence over the outcomes of the decisions and actions in your organization that affect them, the more trust they will feel.

All of these directives require a fairly radical reassessment of organizational priorities, as well a will to change. So you must demonstrate very strong leadership.

As for trust building exercises and outdoor adventure weekends, they will provide limited or cost-ineffective value. Only a long-term commitment to maintaining a culture that fosters trust will pay off. In the context of the road map I have described above, it is possible to use “team-building” retreats as a tool in your culture of collaboration.

4) Knowledge Sharing –

In recreating your organization, the way you manage knowledge is crucial. In the past, knowledge management was given scant attention and was basically a default process that arose from other management and sales objectives. Scientific study in the last decade has made knowledge sharing a discipline in its own right.[3]

Some of the more obvious benefits of knowledge management are:

  • Sharing of valuable organizational information throughout organizational hierarchy.
  • Can avoid re-inventing the wheel, reducing redundant work.
  • Reduced training time for new employees
  • Retention of Intellectual Property after the employee leaves if such knowledge can be codified

Additionally, you can improve the overall talent of your teams and improve more abstract capabilities such as innovative thinking and problem solving. Studies have shown that fusing talent management with knowledge management practices can help:

  • Identify key knowledge workers,
  • Improve knowledge creation, as well as,
  • Information sharing,
  • The development of knowledge competencies, and
  • Knowledge retention.[4]

For startups and smaller organizations, the importance of instituting knowledge sharing from the beginning is paramount. It is much harder to install a structurally deep process like a knowledge sharing system once an organization has ballooned in size. The time to start is now or ideally from day one.

A simple way to conceptualize an enhanced knowledge management system is to simply focus on prioritizing knowledge sharing over the knowledge itself. This does not mean that you discount the importance of acquiring knowledge in its various forms. It just means that you value the sharing of knowledge more.

The very act of constructing mechanisms and processes as well as investing time into new knowledge sharing behaviors, changes the underlying dynamics of an organization. If you mange  organizational structure, technology, and expectations with conscious attention to the sharing of knowledge, a knowledge sharing environment will emerge easily. Additionally, the further you press the urgency of sharing knowledge, the more likely that a feedback loop will result. In this situation the collective awareness of the organization fuels an increasing attachment to knowledge sharing.

5) Operational Transparency 

Transparency is organizational honesty. However, because of the way it challenges the egos of founders, CEOs, and upper management, it is difficult to carry out. It takes personal courage to commit to radical transparency. I like to use the word radical because it means, going to the root of something. The value of radical transparency to your organization is manifold:

  • Transparency and organizational honesty fosters trust[5]
  • Improves participation and the quality of decision making
  • Fosters humility in upper management
  • Improves productivity by improving morale
  • Engages workers more constructively when the organization faces challenges.

Radical transparency is a management approach in which, (ideally) all decision-making occurs publicly. Daniel Goleman used the term in his book Ecological Intelligence. Radical transparency goes further than standard accountability. It requires transparent decision-making from the beginning. Accountability, on the other hand, is a process of verifying the quality of decisions or actions after the fact.

Side note: Exceptions to full transparency typically include data related to personal privacy, security, and passwords or keys necessary for access required to carry out publicly negotiated decisions. Additionally, sharing big plans prematurely is not transparency and is potentially counter-productive.

Here are some steps you can take to increase transparency in your organization and in your teams:

  • Make your decisions and the reasons for such decisions available to examination and evaluation by the people influenced by those decisions. The more your decision will influence them, the more access they should have to your reasoning and background surrounding the issue.
  • “Institutionalized self-critique engenders trustworthiness” (Fort, 1996). Do not be afraid to evaluate yourself and your organization publicly. For example, you could keep an edited corporate blog that stakeholders contribute to, logging your victories and your missteps. Everybody knows nothing goes perfectly. Having the humility and the honesty to share your foibles and failures will gain public goodwill and trust. It will also make your successes more meaningful when you publish them.
  • Avoid hyperbole at all costs. Speak in a matter-of-fact or even in a deprecating tone. The more realistic you are, the more trust others will have in you and your organization or team.
  • Ann Florini (1998), of the Brookings Institute, states, “Secrecy means deliberately hiding your actions; transparency means deliberately revealing them”, do not approach transparency as an abstract or general concept. Have a deliberate plan about how you will reveal your actions. This can include: weekly statements, monthly state of the union addresses and published logs as just a few options. Use your imagination and be deliberate.
  • Create a process to check in regularly with yourself and with other partners and team leaders. This is so you can review regularly and with rigorous honesty how you are doing individually and organizationally against the big four issues of transparency (Rawlins 2006):

1. Substantive information – is the information relevant, clear, complete, correct, reliable and verifiable?

2. Participatory environment – do stakeholders feel involved? Are there efficient mechanisms for feedback? Is substantive information easily accessible?  Does your knowledge management help members identify what information they will need?

3. Accountability – are you sharing information that covers more than one side of controversial issues? Do you practice full disclosure even if it might be damaging to the organization? Are you willing to admit mistakes?  Are you holding your organization and your teams to standards well above industry standards?

4. Secrecy – are you allowing yourself or organizational leaders to fall into counter-productive secrecy practices? These can include: behaviors that reflect a lack of openness, lowering the bar for secrecy, sharing only part of the story, using language that obfuscates meaning, and only disclosing when required.

Overall transparency requires that leadership models it. You must exhibit the behavior you hope to inspire in others. Doing so is sometimes uncomfortable but it will make you a better, stronger, more respected leader

Summary of why transparency is so important:

In the new world of management 3.0 inspired business, the best way to achieve transparency is not to do or say anything you are not willing to share with the world. If your business intent is ethical and virtuous, then choose to live in a fishbowl. You will attract better people and keep them longer. You will always be in a better position to handle the inevitable mishaps. And, if you trust yourself to be an open book, your customers will trust you. Living out in the open may take getting use to, but once you do, you’ll wonder why you ever thought the fog of business was the way to go.

In part 3 of this article I will discuss self-organization and what we can learn from insects and cliques.

Stay tuned, comment and share!


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1.
Hirst, Giles; Van Knippenberg, Daan; Zhou, Jing; A cross-level perspective on employee creativity: Goal orientation, team learning behavior, and individual creativity, Academy of Management Journal, Vol 52(2), Apr 2009, 280-293.

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2.
“Just as perceptions about an individual’s ability, benevolence, and integrity will have an impact on how much trust the individual can garner, these perceptions also affect the extent to which an organization will be trusted” From an Integrative Model of Organizational Trust; Roger C. Mayer, James H. Davis and F. David Schoorman; The Academy of Management Review; Vol. 20, No. 3 (Jul., 1995).

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3.
 Morey, Daryl; Maybury, Mark; Thuraisingham, Bhavani (2002). Knowledge Management: Classic and Contemporary Works. Cambridge: MIT Press. p. 451. ISBN 0262133849.

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4.
 Eoin Whelan, Marian Carcary, (2011) “Integrating talent and knowledge management: where are the benefits?”, Journal of Knowledge Management, Vol. 15 Iss: 4, pp.675 – 687

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5. 
Brad L. Rawlins; Measuring the relationship between organizational transparency and employee trust; Public Relations Journal Vol. 2, No. 2, Spring 2008

The New Psychology of Business Models

Management 3.0 – a psychological shift

You have a great business idea but you are not sure how to develop it. Should you follow conventional wisdom and write-up a thirty-page business plan? No. In my management 3.0 model, startups will have more success if they adopt lean and agile business development principles, where failing fast is the premium strategy and the lean business model reigns supreme.

I first encountered the idea of developing a one-page business model in 2007 when I came across the Osterwalder model on the web. This struck me as an attractive alternative to the starting point for a business instead of, say, a 30-page business plan. What I didn’t understand then, was that the beauty and power of a business model is not that it is just a boiled down summary of a business plan, but rather a way to change my psychological approach to building a business.  Nobody was around to tell me this, so my startup (an early attempt to gamify corporate wellness), died a needlessly slow and painful death.

Fortunately, it all clicked when I encountered the literature around lean startups. In this article, my description of management 3.0 for business models draws on the work of several very bright entrepreneurs and thinkers, including: Alex Osterwalder, Steve Blank, Eric Ries, and Ash Maurya. I include links to their work at the end of this piece. I have also taken ideas from the efforts of Tor Grønsund and Rob Fitzpatrick.

It begins with a different starting point

Now that you have an idea for your business, or perhaps your company has an idea for a new division, or you want to reboot, either way you need a business model. “But wait!” you might say. “What about doing market research?”  Good point. In the management 3.0 process, some market research can still be done during the idea development stage. But things have changed. It is now possible to shift a large part of the market research into the product development phase. You do this by launching sooner than later. And you start by developing the simplest working version of your idea. You call this your minimum viable product (MVP). MVPs, continuous deployment, rapid iterations all represent major changes in growing a business. All of which is possible because of something I call, the collapse of the customer feedback float.

The collapse of the customer feedback float

In 1982 John Naisbitt wrote, in his classic book on future studies Megatrends, about the collapse of the information float. He defined the information float as the amount of time information spends in any media channel. The float was the amount of time between transmission and reception. As technology-satellites, cellular networks, etc…- made the transmission and reception nearly instantaneously, this float collapsed.

Today, technologies such as social media, smart phones, high-speed data mining, ubiquitously networked electronic devices, etc… have precipitated the collapse of the customer feedback float. This float refers to the amount of time it takes a vendor to understand whether their product suits the market’s interests.  As this float collapses, what used to take longer to figure out, costing a great deal, can now be determined faster and much cheaper. This collapse of the customer feedback float becomes part of the new psychology behind the lean business model.

The old school approach to business modeling

To contrast the differences I’ve been explaining, let’s breakdown the old school approach to business modeling (Figure 1 – below). First, you would do market research to gain some insight into a potential market or an underserved market. This would result in a prospective idea/solution. This idea would then be expanded into products/services to address the possible market need.

In this way, the old system would produce a defined solution for a defined problem. From this, a detailed plan for execution filled with scope and projections would rise up out of the business ether like Mount Olympus.  Hopefully, all the expensive market research was right on and success would follow. Unfortunately, most of the time, it wasn’t. What did follow, almost every time, was creeping or even ballooning scope, increasingly large investments to support a lengthy development process with little iterative feedback, and a big resource commitment to create an amazing product or service that the in the end market may not actually want.

The Old School Business Model

Figure 1 – The Old School Business Model

Now let’s consider what the collapse of the customer feedback float makes possible.

When you launch a minimally viable version of your product or service, the current uber-connected market place allows you to get high quality feedback from your potential markets almost immediately. This data can then inform your development process, ensuring that you are building products based on real-time, market demand. Developmental efficiency increases because it comes from shorter, iterative, development cycles that hew more closely to products and services the market actually wants. However, the really interesting benefit to this act-analyze-adjust approach is the way it impacts organizational and personal psychology.

The new lean business model – embracing the undefinable

By moving from a long view of development to an iterative view, you must be ok with not knowing all the answers. This is a psychologically superior position because it allows for greater innovation, resilience and adaptability. The old school methods of long-term planning and development created a false sense of security or pseudo-stability that has long been valued by stifling corporate bureaucracy. Overcoming this tendency gives both the new startup and the rebooting business a big advantage.

So, the basis for the old business model was that market research leads to a defined problem that leads to a defined solution that leads to big scope development which then risk a great deal of resource. So what does a Management 3.0 business model look like?

As a Management 3.0 lean business model entrepreneur you:

1) Take a step back from any pre-defined ideas about a product or service and think about possible consumer pains or undiscovered needs and…

2) Assume that you have an undefinable problem around a general pain or potential consumer need.

3) You then put forward an untested solution for your moving target of a problem.

4) Next you describe your Minimum Viable Product. This is your business hypothesis.

This approach (see figure -2) represents a new psychological positioning for the entrepreneur. The challenge is to admit that you only have an untested solution for an unproven problem. So what is the benefit to taking this position of uncertainty? You can now develop a business model around an evolving hypothesis that is subject to constant testing and iteration. This working hypothesis becomes your minimum viable product.

Figure 2 – a management 3.0 lean business model

The Management 3.0 lean business model canvass (Figure -3)

At this point, you are ready to write a business model around this hypothesis that begins with answering eight questions, and after filling out your lean canvas you begin testing your M.V.P. hypothesis in a cyclical approach.

The cycle is simple:

  • ACT – design, build, code, develop;
  • ANALYSE – release, test, measure, discuss;
  • ADJUST – design, build, code, develop;

Rinse, lather, repeat…

Each newly tested version of your evolving hypothesis – a.k.a. your iterating Minimum Viable Product gets plugged back into your business model. The eight questions can then be revisited and your model continues to adapt to market reality.

Management 3.0 Lean Business Model Canvass

Figure 3 – Management 3.0 Lean Business Model Canvass

The Eight Questions

Four questions expand on the product side (your untested solution) and four describe your approach to the market (your undefined problem). Remember, the undefined status is an asset because it keeps you in a testing, innovating mindset.

Product questions: built around your initial business hypothesis or M.V.P.

1) Outside support – what other businesses and services will you draw on for support?

  • Potential partners
  • Cloud SaaS providers
  • Incubators, accelerators, business networks
  • Investors
  • Marketing partners

2) Development – what tech or other resources will you need to build your business?

  • Open source, SaaS, existing platforms
  • Programmers, UX/AI, MBA, agile product/project manager, other specialists…
  • User generated content, crowd sourcing

3) Key Metrics – how will you get and measure continuous customer feedback?

  • A/B testing
  • Continuous deployment assessments
  • SEO, SMO and other new media stats
  • Landing page conversions
  • New customers acquired
  • Demographic analysis of individuals (potential customers) applying to become customers, and the levels of approval, rejections, and pending numbers.
  • Status of existing customers
  • Repeat behavior
  • Customer attrition
  • Turnover (i.e. revenue) generated by segments of the customer population.
  • Customer lifetime cycle and lifetime value

4) Costs – what is your cost per sale/customer?

  • Pro-rated fixed costs
  • Variable costs
  • What are your economies of scale (how much less will produce more of your product cost)
  • What are your economies of scope (what other products or services can you use offer using your existing structure)?

Market questions: built around your untested solution and who you feel will be interested

5) Target Audience – who will want this product?

  • Define and describe the demographic(s)
  • Psych profile
  • Niche vs. mass

6) Unique Advantage – what makes customers choose you over your competitor?

  • What makes you unique?
  • What do you do that will be difficult for your competition to copy or buy?

7) Customer development – how will you connect to and interact with your customers?

  • Web marketing: SEO, SEM, SMM,
  • Internet advertising
  • PR – blogs, press releases,
  • Events, demos, conventions
  • TV, radio, magazines, newspaper
  • Direct mail, flyers
  • Polls, surveys,
  • Beta testing
  • CRM options (sales force, pipeliner, google apps…)

8) Revenue – how will you make money?

  • Single sales
  • Repeatable sales
  • Subscription service
  • Freemium to premium model
  • Add-ons
  • Advertising revenues
  • Licensing/commissions
  • Sales projections (what are they based on?)
  • Projected customer life cycle and lifetime value

My canvas is one of several iterations based on the original Osterwalder version. All of them have value. Although this one is especially suited for agile development. The important thing is to start with one and begin testing your hypothesis.

A Better Way to Think

Allowing your perspective to shift from a big-plan-specific vision to a fluid-discovery-process is an important part of Management 3.0. Seeing business growth as a series of discrete discoveries instead of an overreaching plan wires your brain for flexibility. This, in turn, will enhance your creativity and your ability to innovate.  As you can see, Management 3.0 is more than just new tools for growing your business. It is a new way of thinking; a clearer, braver way to think.

———————–

Here are some links for more insight into this topic:

Osterwalder’s Business Model
Ash Maurya
Eric Ries
Steve Blank
Tor Grønsund
Rob Fitzpatrick

Looking forward to your comments and please share if you like 🙂

The 4 crucial roles in a startup

Building your company right – the first time

If you are starting a new company one of the first issues you must face is who will do what? And, what is my role going to be?

Most startup and entrepreneurial pundits list three key roles in the development of a great new company:

Developer – Tech guru (in a media or service company this is the person responsible for creating amazing content or the product).

Designer – UX/AI guru; this is the person who makes you look great and makes the client interaction feel great. They handle all visual, auditory, and emotional interfacing with the clients and other stakeholders; they are responsible for product development and management.

Distributer – Marketing guru; this is the brain behind getting your product or service to the public

What’s often missing from this list is the essential fourth column of support:

Director – the start-up CEO or People guru(description below)

The roles can be loosely mapped to my Management 3.o model of personalities in the workplace (paper available by request). In this model a balanced organizational body requires a:

Doer  (usually a developer, but could also be a designer and/or distributor).

Doers are task agents and finishers who are detailed and disciplined

Social/Seller (the deal maker – sales person).

This is often the distributer (but that doesn’t mean that the developer, designer or even director couldn’t fill this role). The social seller connects people and objects together and is: convivial, open, sharing, communicative, and moves things forward.

Brilliant Bureaucrat (biz dev, and people wrangling; definitely the role for the director).

The brilliant bureaucrat is a rational thinker, analyzes, understands politics and warfare, organizes, plans, and protects.

Visionary (can be any of the previous roles ie. developer/designer/director or be the chairperson, shepherd, holder of the vision, etc… ).

A visionary is the shaper, originator and creative genius; they are intensely curious, risk takers, and highly intelligent.

Remember  the four parts of a balanced organizational body roles can be filled in a number of ways, (the mapping doesn’t have to be one to one if you have people who can fill more than one role).

The importance of a director

As stated above the missing link to a balanced organizational body is often the director. Assuming your developer/designer team is somehow covering Doer and Visionary and your marketing person is covering Social/Seller, then who is your Brilliant Bureaucrat?

Sticking with the alliterations listed above you would be missing a director of operations; a start-up CEO – Your People Guru. It is important to remember that the start-up CEO or ‘early stage CEO’ is different from the second stage or ‘growth stage CEO’. (See my article on The 68 Responsibilities of a CEO.)

In a small company the early stage CEO is:

  • the operations officer ie. designing and developing business operations or the business method – that which produces value for clients and investors
  • responsible for business development ie. developing new opportunities attracting new clients, penetrating new markets
  • senior project manager ie. bridging the gap between projects [ideas] and business operations, and
  • Human resource manager  ie. overseeing recruitment and managing personalities as the company ramps up

He/she is all of the above rolled into one personality designed from the ground up to support all the other members of the team and to help manage the expansion of both staff and clients. But in a startup this role needs to be much more that a good people wrangler, you need a smart business developer.

In the words of serial entrepreneur and VC Mark Suster, “who else is going to get out there and close your big biz dev deals with you? Who’s going to help you with improving your marketing / positioning to become a clear platform category leader like Twilio? A few key people really can make a huge difference…. The reason you’re not getting to the next level is that you’re not prioritizing the precise thing that could take you to the next level. I would say recruiting at least one superstar would be your priorities 1, 2 & 3.”

According to James W. Breyer, superstar VC, and multiple board member (including Facebook),  “Skills, passion, intense curiosity and extremely high IQ are more important,” when asked about the importance of age in an article about start-up CEO’s. (WSJ 010712)

So when you look around at your team, do you have a superstar in each of the 4 columns of support (developer, designer, distributor, director)? Do you have each part of a balanced and functional organizational body (visionary, social seller, doer, brilliant bureaucrat)?

Remember this doesn’t necessarily mean that an individual fills each crucial role. If you are lucky enough to have someone on your team (maybe you?) that can fill two roles that’s awesome. If you have somebody on a team that can fill three roles, that’s Steve Jobs. If you have somebody that can fill all four roles you wouldn’t be reading this blog you’d be inventing the next Internet.

Unfortunately this role of a Brilliant Bureaucrat is often overlooked. What you should be looking for is someone who gets business but also understands the dynamic of all the other roles. you want someone who has a strong MBA mind but is not insulated by an MBA mind set. They need to be able to see the big picture of the vision holders and they need the discipline of a Doer.

How to find the right director of operations

But to attract a Brilliant Bureaucrat you have to speak their language. Don’t come at them with all the sizzle of your dreams; bring them numbers, hard facts, and something that looks like a business plan. Remember that to build a holistic and balanced team you will need members with different personalities. Learn the language and communication styles of those personalities that differ from you.

Another valuable tool you can use in building healthy relationships with future partners is using natural language agreements. This is a model I have designed that uses guided or facilitated sessions that create very thorough dialogs around many of the difficult questions facing partners. These sessions are transcribed and then transposed by a legal representative into a contract or letter of agreement.

Even if you have a great idea you are going to be limited or propelled by your team. It should be your priority to get the right people on the bus. Ask yourself again and again, “do I feel amazing about my team?” If the answer isn’t yes, you need to slow down and regroup. If you are unsure about a possible member use the natural language session as a away to uncover potential conflicts or unspoken concerns. Questioning your team and each person’s fit early on is uncomfortable. This is why it rarely gets done. Unfortunately, putting off a potential disconnect or a personality problem in the near term just leads to painful and expensive adjustments later on. Better to face the difficult questions now.

What is my role going to be?

Be sure you have asked this of yourself after taking a close look at both your personality and the personality of the others on your team.

Assess your team and make sure you have somebody supporting you in all the roles your business requires. And don’t be afraid to cut losses early, if you need to pass on a potentially problematic partner, do it. Don’t hang on to somebody because they are all you’ve got and you don’t know if you will find somebody. The ability to keep looking is a risk and risks are what leaders have to take in order to succeed.

How to hack a management system [brief talk]

[A 5 minute talk given at LA Hackers on April 23, 2011 at Coloft]

My name is Atma

I am an industrial psychologist

That’s kind of like a project manager on academic steroids

I specialize in the psychology of organizations and am currently working on my PhD in this topic

Part of the power of organizational psychology is that it leverages emotional energy.

Emotional energy comes from human desire, those things you want deeply or strongly, and it is a pervasive phenomenon.

Put another way I traffic in disruptive ideas that can make people better, higher functioning, and happier

I do this by focusing on changes in the work environment rather than singling out the individual

Better environments create better humans; better humans create a better society

I believe we can create a better world by changing the way we interact in daily life.

My goal is to teach whoever is ready to re-engineer their business, startup, or organization.

The suite of solutions I work with can be used to make any business or team more effective (consequently more profitable)

Some of the tools in this suite include:

  1. Screening partners, and hires with face reading and other cutting edge profiling techniques including clique psychology
  2. Wiring in innovation as a cultural behavior
  3. Game theory applications – tapping into mutualistic dynamics
  4. Training for charisma, confidence, and presentation skills
  5. Human centric design based on my model of generative grammar in organizations
  6. Hacking your management system
  7. The role of discipline in forging leaders
  8. Training to be comfortable and confident in any social situation
  9. Repurposing stress – training to thrive amidst chaos
  10. Super Group Networks
  11. XY cluster companies – a new  type of agglomeration
  12. Changing the communication model,

Here is a simple example of one way to hack a management system…

To make a meaningful change in the way an organization functions you need to figure out what is the generative grammar of that business or group. It’s like understanding the nature of code at the deepest structural level in a massive program written 30 or 40 years ago. You can similarly assume that your work environment is like an antiquated system riddled with legacy code. Only instead of the byzantine application of a formal language you are dealing with emotional needs, cultural expectations, societal mores, all operating in an invisible and impossibly complex array.

But if you can change the underlying grammar or code you change the way humans behave. This is partly because humans have enormous plasticity or capacity to adapt.

For example say we all worked together and somebody came in and said I will pay each of you a significant bonus for every month you show a demonstrable positive change in your health stats. Now I know from previous studies about how many of you would take advantage of that offer. Often it would be those of you who need it the least.

But let’s say I came in and said I will pay each of you the same bonus for the improvements shown by a randomly assigned coworker, as opposed to your own improvements (which would be tied to someone else’s bonus.)

What kind of shift do you imagine would occur in the way we all interact? Suddenly I have a vested interest in your well being. I will be paying attention to what you eat, encouraging you to be more active, maybe invite you to my gym 3 times a week. And you might be inclined to respond because you are equally concerned with getting your assignee on the right track.

So you see in making one simple adjustment I have altered the generative grammar of our environment and consequently we are all behaving differently.

I am currently involved in a private research project, where I come into small businesses and observe and collect data on the organizational dynamics. It’s free to the company and I always share my findings with them, which is always eye-opening and instructive. If you know any companies that would like to apply for participation please let me know.

My contact information is on the handout I have provided.

Thank you

3 stages of increasing creativity in the workplace

Stage one: The approach

Theater of Constraints: great creativity and design flow from an accurate understanding of your limitations. By limitations you should distinguish between personal and material. Personal limitations are meant to be challenged and tested (at least within reason.) Material limitations are about the resources you have available. Material resources include, time, capital, space, and ability. Understanding material limitations can require a surprisingly large amount of individual and institutional honesty. But this rigorous honesty is the first discipline of the Theater of Constraints.

The second discipline is designing and developing within those constraints. For example say you have an idea for an application/production that will cost $1000 and take two weeks. But you only have $500 and one week. Don’t ignore these limitations and say, “let’s do the best we can!” and push forward with your original plan. Most of the time if you do, you end up with either a crappy execution of the $1000 version (a $500 version), or an over budget project and someone should get fired.

This of course is an extreme simplification, but the idea is missing from many project management cycles. If you use the limitations of your resources as a design criterion you can often engender a whole new dimension of innovation. You can also avoid the type of scope creep that is usually generated by unseen psychological factors related to the aforementioned need for honesty.

Apply the discipline of learning to design backwards from an honest understanding of available resources to software development, product development, media creation, event planning and many other types of productions.

You can even apply this discipline to aspects of personal life, like goal setting. Let your motto be, “Dream forward, design backward.”

Stage two: Stimulating creative thinking

Regular once a week free association session: one person takes the lead by providing an idea or a scenario that is seemingly farfetched or unlikely in your industry. Others begin to riff or explore on the possibilities. It is like a big “what if?” conversation, the trick is that it has to hew to some level of reality and at the same time goes well past the boundaries of what has been thought to be possible in your particular industry.

Cross disciplinary training and stimulus: Whatever field you are in, once-a-month take your team on an educational/cultural outing to something that has nothing to do with your work. E.g. take a team of developers to tour an abattoir, take the human resource team to museum exhibit on ancient Egypt, or take legal on an outing to a flower show. It is important to make it a regular outing, and to really explore intriguing albeit unrelated subjects as a group.

Show and tell: one morning a week have team members or co-workers bring in an example of counter-culture that they have unearthed. Examples could come from art, comics, film, music, architecture, economics (weird black markets), music, media, etc…

The drift (le Derive): Take a work group or team on a once-a-quarter exploration of the city using no agenda whatsoever. Begin the day by walking or catching a bus in a direction based on the flip of a coin. If you are on a bus or a subway get off on a stop chosen by the roll of a pair of dice. Or use a single die to determine the number of block s you will walk. Follow somebody walking out of a coffee shop for 60 seconds see where it leads you. Visit buildings based on the salience of their architecture i.e. that means which building sticks out the most? Doing the derive right takes practice and a real sense of adventure. The goal is to learn to let the environment direct your next move rather any personal agenda.

Stage three: Improving brainstorming

Throw away good work: if you are brainstorming or creating various version of products or services to offer the public you have to go far enough in the brainstorming to so many ideas that you must discard some good ones if you are not throwing away good work you are not assured that what remains will be excellent.

Distance thinking: review current and future projects from a distance. For example imagine that the work you are doing is going to be placed in a time machine and sent 10 years what would you do different? Or imagine your work is going to be transported to an aboriginal culture on some faraway island how do you make sure it works? If your clients are geographically close to you imagine that they are in offices halfway around the world? How do you improve communication and help keep a sense of connection? Whatever the reality of your client relationships imagine something either opposite or radical and imaginatively different. Clients from another galaxy anyone?

Purposely do bad work: gather your team together and create the 10 worst ideas for moving your company forward. Have a vote for the winner or worst idea possible. Know go backwards through the list and talk about what it would take to make each idea actually work.

No brainstorming without solo prep work: Brainstorming in a group from an empty slate can be counterproductive, and cause people to fixate on the earliest ideas. Before every brainstorming session send out a memo explain the agenda or purpose of the session and tell al participant to come up with 12 distinct ideas to begin the session. This gives everyone a chance to work alone in their own heads before coming to the group environment and will increase dramatically the number of ideas being discussed.

[Bonus thought] Evaluating best efforts: an easy way to determine the value of an idea (that isn’t yours) is to look at it and see if you can honestly say, “I wish I’d thought of that.”

And finally remember that these practices won’t be deeply effective if they are applied piecemeal to a poor overall work environment (new patches on an old garment and all…). Be sure to evaluate your entire environment with ruthless honesty. See this article on simple ways to assess your organization.


Seven Personal Habits for Failure

The success and achievement you seek become more likely by taking an open-eyed look at personal pitfalls.

An interesting part of my work and studies into organizational and inter-personal psychology is cataloguing and describing how institutional psychology informs individual psychology. This happens when underlying structural dysfunction and the psychological requirements of the organization become part of the individual’s temperament.

To build better organizations and societies you have to look for the consequences in the individual and the antecedent in the organizational structure.

Here are seven initial characteristics that people tend to emulate and thereby perpetuate the already institutionalized dysfunction. Learning to seeing them in yourself is a valuable step towards seeing it in an organization’s psychology.

1) Self deception – lacking the humility and the personal candor or insight to perceive your shortcomings: This problem makes you unavailable for help or guidance even if it is right in front of you. Without the willingness to search for your own blind spots (which are invisible to you) your risk of failure increases dramatically. It is not enough to go to those who are wiser and more experienced unless this is done with a willingness to see things which will most likely make you feel uncomfortable. Facing one’s own shortcomings is the deliberate self-infliction of pain. It takes a strong sense of resolve to subject your self to this process. Developing this resolve requires:

  • Going inside yourself and bit by bit facing those things which you are most of afraid of
  • Seeking out mentors who will be starkly honest and constructively critical of your strength and weaknesses
  • Keeping track of behaviors – listing both productive (positive) behaviors and counterproductive (negative) behaviors
  • Actively observing your interactions with others and noticing the nature of those interactions.
  • Being ruthlessly honest with yourself about your intentions, and digging deeply in to your own hidden agendas, especially as they lead to great awareness of egoism, unnecessary defensiveness, fear based impatience, selfishness, etc…
  • Being honest about your business position. For example: market potential – don’t fail to see when the numbers just aren’t there. Or when you are causing more pain than good to your stakeholders, or if the conditions for your endeavor are just not there, the list goes on.

Do not be afraid to be ruthlessly honest about you and your situation. (Incidentally this includes taking an accurate stock of your assets, material and personal.)

2) The need for certainty – it is a common trait to want to control the outcomes of events and our efforts. But you must learn to accept what you have no control over; and that is almost every outcome in your life. If you accept that life is a complex, dynamic playing field that is constantly in motion and never stable you will be far stronger through resilience and adaptability.

3) Failing to compartmentalize confidence and humility – you must be a citizen of two worlds: experience two distinct realities – an external experience and an internal experience. On the outside you must behave confident and grounded like a mountain. On the inside you must be humble and flowing with the fluidity and resilience of a river.

4) Making kindness and courage mutually exclusive – It is a mystery to me why people can’t see the reason “nice guys finish last”. It is certainly NOT because they are nice. In almost every real or fictional account of a nice guy finishing last what torpedoed him (or her) was not the highly valuable quality of niceness or kindness, but rather the lack of courage. For some reason people have come to think of those qualities as mutually exclusive. They are not. They are both required to be a true success.

5) Battle without reserve but don’t fail to repose with abandon – there is increasing pressure to rest and relax less. This has been the trend around the world, even causing workers to feel guilty for wanting to take breaks.  The solution is not to become less diligent or less determined to take part fully, but rather to remember that R&R is as important to success as hard work.

So, yes, give it all you got. Don’t save enough for the trip back – go forth each day with the idea that it is your last and you have nothing to hold back for the return trip. Make each day and each hour of your working life count as if everything depends on your efforts. But when the day is over or the week-end or month-end break arrives take it with impish seriousness. Really relax and allow you mind and body to recuperate. Also do not forget to feed your soul.  Internal strength comes from humility. Humility means cultivating an awareness of that which is greater than you. This can be God, the universe, nature, humanity, or that which you understand to be greater. You will be empowered by not feeling like it is you at the top of the heap.

6) Fear of failure –If it is worth doing you must be willing to fail and you must embrace the possibility of pain and loss of reputation. You must know the risks and own them. Go into the pitch with full knowledge of the worst possible outcome and be willing to continue forward at full speed in spite of this. People mistake blind optimism with courage and think that fear of failure is having negative thoughts. This is psychological-babble and rubbish. Fear of failure begins with being unwilling to acknowledge the worst and ends with being unprepared for it. There is no daring in delusion. It is looking into the darkness and choosing to advance that makes up courage.

7) Envy and Greed – the unwillingness to see what others have to share, to seek help when it is needed and to reward those who make sacrifices for your success. In the past we valued the time people gave us with monetary designations as if it is possible to put a value on the increments of time that make up a human life. If we look at those who take part in our business growth as contributing their time on earth which can hardly be valued as less or greater than your own then we may have a different consciousness when we decide how to remunerate and reward. There is a beautiful logic and empowerment to being increasingly fair in the way we conduct ourselves.

It is certainly worthwhile to look deeply at the implications and existence of these issues in your personal life. It is even more important to understand how the organizations that we created are not just cultivating these types of dysfunctions but are actually requiring them. Subsequent articles will look at how these unhealthy behaviors can be eliminated from an institution’s deep structure.

Where are you on the management scale of newbie to expert hacker?

Three Levels of Management

Companies and institutions exist at different levels of functionality. It is important for the person(s) responsible for the organization to honestly and accurately assess their state of managerial needs. In other words, are you a “Newbie”, an “Experienced User”, or an “Expert Hacker”?

As a starting place we can look at three general levels or grades of management.

Beginner’s Management [Newbie or Management 1.0]

Fundamentals of managing an organization:

  1. (Forecast & Plan) – Examining the future and drawing up a plan of action. (The elements of strategy.)
  2. To organize – Build up the structure, both material and human, of the undertaking.
  3. To command – Maintain the activity among the personnel.
  4. To coordinate – Binding together, unifying and harmonizing all activity and effort.
  5. To control – Seeing that everything occurs in conformity with established rule and expressed command.

Fundamentals of being a manager:

  1. They ask “what needs to be done?”
  2. They ask “What’s right for the enterprise?”
  3. They develop action plans.
  4. They took responsibility for decisions.
  5. They took responsibility for communicating.
  6. They were focused on opportunities rather than problems.
  7. They ran productive meetings.
  8. They thought and said “we” rather than “I”.

And the Fundaments of managing by objectives:

  1. Cascading of organizational goals and objectives, (For example, a top level goal of increasing sales by 20% over a defined period may require a bottom level goal of increasing marketing effectiveness or marketing coverage in order to reach the sales set.)
  2. Specific objectives for each member,
  3. Participative decision making,
  4. Explicit time period, and
  5. Performance evaluation and provide feedback.

(Peter Drucker’s Management by Objectives also introduced the SMART acronym for checking the validity of the objectives, which should be:

  • Specific
  • Measurable
  • Achievable
  • Realistic! and
  • Time-related. )

If the person(s) responsible for managing are able to look at the eighteen points above and determine they are more or less in place, they are operating at the most fundamental or beginner’s level of management. If the company management feels it is operating below this standard most of these practices can be self taught by studying them on the internet or visiting a bookstore.

Informed Management [Experienced User or Management 2.0]

While there are many aspects to informed management some of the basics that must be present are:

In depth financial planning and controls: this usually requires someone with a graduate degree in business, such as an MBA or equivalent and is proficient in:

  • Business modeling
  • Business planning (analysis, forecasting, budgeting…)
  • Capital raising strategies
  • Risk assessment
  • Valuation
  • Corporate Taxation

Use of a more dynamic management systems: such as Value Based Management, which tries to streamline and integrate the following into its corporate purpose and values:

  • the corporate mission (business philosophy),
  • the corporate strategy to achieve the corporate mission and purpose,
  • corporate governance (who determines the corporate mission and regulates the activities of the corporation),
  • the corporate culture,
  • corporate communication,
  • organization of the corporation,
  • decision processes and systems,
  • performance management processes and systems, and
  • reward processes and systems,

A Value Based Management System has three principal objectives:

  1. Creating Value – How the company can increase or generate maximum future value; more or less equal to strategy
  2. Managing for Value – Governance, change management, organizational culture, communication, leadership
  3. Measuring Value- Valuation

Value Based Management is dependent on the corporate purpose and the corporate values. The corporate purpose can either be economic (Shareholder value) or can also aim at other constituents directly (Stakeholder value).

The application of Quality Management – the basics of which involve quality planning, control, and improvement. The benefit of this is:

  1. costs decrease because of less rework, fewer mistakes, fewer delays, and better use of time and materials;
  2. productivity improves;
  3. market share increases with better quality and prices
  4. the company increases profitability and stays in business; and
  5. the number of jobs increases

One of the best summaries of Quality Management was written my Edward Deming:

  1. Create consistency of purpose toward the improvement of product and service, and communicate this goal to all employees.
  2. Adopt the new philosophy of quality throughout all levels with the organization.
  3. Cease dependence on inspection to achieve quality; understand that quality comes from improving processes.
  4. No longer select suppliers based solely on price. Move towards developing a long-term relationship with a single supplier.
  5. Processes, products, and services should be improved constantly; reducing waste.
  6. Institute extensive on-the-job training.
  7. Improve supervision.
  8. Drive out fear of expressing ideas and concerns.
  9. Break down barriers between departments. People should be encouraged to work together as a team.
  10. Eliminate slogans and targets for the workforce.
  11. Eliminate work quotas on the factory floor.
  12. Remove barriers that rob workers of their right to pride of workmanship.
  13. Institute a program of education and self-improvement.
  14. Make sure to put everyone in the company to work to accomplish the transformation.

Customer relationship management (CRM) – a widely-implemented strategy for managing a company’s interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing, customer service, and technical support.

CRM has three principal objectives:

  1. Acquire new customers
  2. Enhance customer service
  3. Retain and continually engage client base

The benefits of CRM must be defined, risks assessed, and cost quantified in three general areas:

  1. Processes: Though these systems have many technological components, business processes lie at its core. It can be seen as a more client-centric way of doing business, enabled by technology that consolidates and intelligently distributes pertinent information about clients, sales, marketing effectiveness, responsiveness, and market trends. Therefore, a company must analyze its business workflows and processes before choosing a technology platform; some will likely need re-engineering to better serve the overall goal of winning and satisfying clients. Moreover, planners need to determine the types of client information that are most relevant, and how best to employ them.
  2. People: For an initiative to be effective, an organization must convince its staff that the new technology and workflows will benefit employees as well as clients. Senior executives need to be strong and visible advocates who can clearly state and support the case for change. Collaboration, teamwork, and two-way communication should be encouraged across hierarchical boundaries, especially with respect to process improvement.
  3. Technology: In evaluating technology, key factors include alignment with the company’s business process strategy and goals, including the ability to deliver the right data to the right employees and sufficient ease of adoption and use. Choosing appropriate technological solutions is best undertaken by a carefully chosen group of executives who understand the business processes to be automated as well as the software issues

Human Resource Management:  this is the management of the people you have hired

  • Workforce planning
  • Recruitment (sometimes separated into attraction and selection)
  • Induction, orientation and organizational socialization
  • Skills management
  • Training and development
  • Personnel administration
  • Compensation in wage or salary
  • Time management
  • Travel management (sometimes assigned to accounting rather than HRM)
  • Payroll (sometimes assigned to accounting rather than HRM)
  • Employee benefits administration
  • Personnel cost planning
  • Performance appraisal
  • Labor relations

Experts in this study the science of Industrial Relations, which is quite extensive.  Wikipedia had 195 pages listed under the related subject of ‘organizational studies and human resource management’.

Informed Management in summary: If your organization has in place at the very least, some version of these five attributes of management, namely:

  1. Advanced financial planning and controls
  2. Some dynamic management system
  3. A system for Quality Control
  4. A Customer Relationship Management strategy, and
  5. Human Resource Management

then you can be considered an organization at the informed level of management.

If you feel you are not functioning at the informed level of management then you would be well served by hiring a management consultant. There are many capable consultants ranging from one person independent contractors to large multi-national firms like McKinsey & Company.

The standard of informed management is really just the status quo. It is where a company that hopes to remain viable must be. But to go beyond the status quo, to operate at the more elusive, and much desired level of being a remarkable enterprise requires advanced management.

Advanced Management [Expert Hacker or Management 3.0]

To have your management and employees working at a level of exceptional performance, and constant innovation under extreme market pressures requires the input of experts in organizational psychology which is several levels above normal business management consulting.

As described in the previous sections regular business management consultants focus on work flow, productivity outcomes, information systems and other external factors.

Industrial or organizational psychology focuses on the underlying and implicit dynamics that shape and influence the individuals in the organization. These difficult to detect psychological factors set the limits for how well your work force will be able to achieve your business goals. Failure to address the deep seeded dynamics will also suppress individual potential and cause personnel to work well below capacity.

The goal of advanced management solutions is to create a remarkable organization that will outperform competitors. This is done by introducing advanced dynamics that can instigate a companywide chain reaction of individual improvements and new group/ team capacities.

An astute organizational psychologist does this by dismantling dysfunctional dynamic and problematic behaviors and incorporating new roles and perspectives and seeding better expectations and behaviors.  These new dynamics act on the resilience and adaptability inherent in most people and can uncover performance capacities that the individuals themselves might not realize they had.

Industrial or organizational psychology is a management process that knows that both humans and institutions have and underlying psychology. Like humans, institutions are mostly unaware of the dramatic influence of psychological processes. Neither is fully aware of how these psychological forces are controlling them and shaping their outcomes.

The organizational psychologist understands, however, that of the two, the institutional psychology is the dominant force. Change the psychology of the institute and you will change the psychology of the individuals.  Ignoring this and just trying to change the psychology of the individuals who make up the institute may not change the institute, and they will, over time, most likely revert or succumb to the influence of the institution.

For this reason advanced management requires support from specialists in the psycho-dynamic-transformation of six key aspects of your organization. They are:

  1. productivity,
  2. innovation,
  3. stress management,
  4. health & wellness,
  5. team/group development, and
  6. employee management

Industrial /organizational psychology addresses traits that are often intrinsic or internal such as

  • creativity
  • self-motivation
  • patience
  • honesty
  • courage
  • kindness and
  • confidence

to name  just a few. A large body of scientific work has made it clear that these factors can be measurably improved by applying psychological methodology to the business environment. (Wikipedia lists 15 distinct scientific journals with the specific focus of industrial and organizational psychology.)

Influencing these types of human characteristic is done using a range of research-driven tools which includes doing both basic and applied research, as well as primary and secondary research. Different approaches include:

  • Strategically focused research – this is constructive research with the greatest likelihood of creating practical and commercial applications
  • Clinical research – empirical research to test the efficacy of various hypotheses on individuals in controlled trials
  • Directed research – this is research conducted in a response to an outside request to explore a specific area of scientific expertise
  • Systematic review – a summary of research that uses explicit methods to perform a thorough literature search and critical appraisal of individual studies to identify the valid and applicable evidence
  • Meta-analysis – a statistical study of the results of several studies that address a set of related research hypotheses

Industrial psychologists also rely on diverse data sources including:

  • psychometrics and personality assessments
  • quasi-experiments
  • human judgment
  • historical databases
  • objective measures of work performance and
  • questionnaires or surveys

Altogether the industrial/organizational psychologist can change a company’s culture, improving member performance and resulting in greater outcomes. Some of the areas affected by advanced management solutions include:

  • organizational development
  • time management
  • decision making
  • motivation
  • communication
  • creative thinking
  • divergent vs. convergent thinking
  • problem solving
  • critical thinking
  • employee interaction and co-operation
  • stress and health
  • reducing health care costs
  • reducing absenteeism (and presenteeism)
  • work/life balance
  • the impact of health on productivity
  • nutrition and productivity
  • leadership skills
  • team collaboration
  • employee selection
  • employee retention
  • remuneration and compensation
  • executive training
  • presentation skills

The future success of business will depend on new levels of collaboration between business leaders and experts in social sciences like industrial psychology. By allowing an expert to help with organizational development the management can focus on what they are in business to do.