First Friday Book Synopsis

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Mike Paton: An interview by Bob Morris

PatonMike Paton has spent a lifetime learning from and sharing with entrepreneurs. The product of an entrepreneurial household, he cut his teeth in banking before running (or helping run) four small, growing companies. For the last seven years, he’s been helping entrepreneurs clarify, simplify and achieve their vision by mastering the Entrepreneurial Operating System (EOS).

Mike discovered EOS while trying to run a $7 million company in Minneapolis. Drawn to its simplicity and usefulness, he quickly became a passionate advocate of the system and leader of a vibrant and growing community of professional EOS Implementers, clients and fans. An award-winning speaker and best-selling author (Get A Grip: An Entrepreneurial Fable, with EOS creator Gino Wickman), he has conducted more than 1,000 full-day EOS sessions with leadership teams of more than 100 companies. He’s also helped thousands more business leaders at dynamic, value packed keynote talks and in-depth interactive workshops. Whatever the venue and format, Paton attracts large audiences, receives consistently high ratings and introduces a complete set of simple concepts and practical tools that help leaders “get a grip” on their business.

Mike lives in Minneapolis with his wife Kate and his sons Henry and Charlie. His older son Jon lives and works in Clinton, IA.

Here is an excerpt from my interview of Mike.

* * *

Morris: Before discussing Get a Grip, a few general questions. First, who has had the greatest influence on your personal growth? How so?

Paton: My grandfather, Art Pfeil, who taught me how to learn, how to teach, how to work hard, and how to love doing all three.

Morris: The greatest impact on your professional development? How so?

Paton: Gino Wickman and his business partner, Don Tinney — without whom I’d have never discovered EOS and become a passionate teacher of the system. They’ve helped me simplify, clarify and achieve my vision as an EOS Implementer, a business owner, and a man.

Morris: Years ago, was there a turning point (if not an epiphany) that set you on the career course you continue to follow? Please explain.

Paton: I was fortunate to grow up in a household where teaching and learning was cherished. My sense of curiosity and wonder were encouraged, and it’s something I bring into every class, every book, every job, hobby and personal relationship I’ve ever encountered. The only epiphany is that very few things in life – professional or personal – don’t fulfill that desire for discovery and wonder – if you just open yourself up to it. From a career perspective, that desire to learn and grow – and to have that impact on others who want to do the same – has always driven me.

Morris: What do you know now about the business world that you wish you knew when you when to work full-time for the first time? Why?

Paton: What I know now is that we are all in complete control of our own choices, and accountable for the outcomes those choices create. I spent way too much time early in my career focused on people and things that didn’t have anywhere near as much impact as I imagined on my work and my life. I’d refocus all that time and energy on my own actions and outcomes.

Morris: Of all the films that you have seen, which – in your opinion – best dramatizes important business principles? Please explain.

Paton: This may get a laugh – or bring an abrupt end to this interview – but Tommy Boy has always been a favorite. As silly as that movie is, it fairly accurately identifies some issues (and solutions) common to entrepreneurial companies. First, you have a gifted, gregarious, driven founding entrepreneur who doesn’t adequately develop the next generation of leadership in his company, thereby exposing the organization to risk. Upon his death, a power struggle develops between his pedantic number two, his oaf of a son, his trophy wife, a risk-averse board/capital partners, and an unscrupulous competitor. And the company is saved when the son partners with the people in the business, reconnects with the “soul” of the business, and begins making great things happen. That story is played out each year in literally hundreds of entrepreneurial companies – admittedly with less hilarity and more frequent failures than successes. And, as an added bonus, it’s really funny.

Morris: In one of Tom Davenport’s recent books, Judgment Calls, he and co-author Brooke Manville offer “an antidote for the Great Man theory of decision making and organizational performance”: organizational judgment. That is, “the collective capacity to make good calls and wise moves when the need for them exceeds the scope of any single leader’s direct control.” What do you think?

Paton: I agree completely. At some point in every young company’s growth curve, it hits a ceiling. Often that ceiling is caused by the limited capacity of the person (or people) who make most of the decisions, handle all the most important projects, and do the most valuable work. When a “great man” or “great woman” becomes overwhelmed, the company often either flat-lines or fails. Truly great leaders see the need to hire and develop extensions of themselves, so that collectively the team begins achieving more than the sum total of its parts.

Morris: In your opinion, why do so many C-level executives seem to have such a difficult time delegating work to others?

Paton: Many leaders and managers – at every level of an organization – struggle with delegation. There are literally dozens of “root causes” to this issue – some owned by the leader and some caused by their organization. In the language of EOS, we find most of those root causes can be traced back to weakness in one of six “Key Components” of a well-run business – Vision, People, Data, Issues, Process and Traction. And delegation issues can truly be traced back to weakness in all of them.

For example, sometimes a leader fails to delegate because he or she doesn’t have the right people on his or her team, or isn’t cut out to lead and manage. That’s weakness in the People component. Sometimes, the company’s core processes aren’t documented, simplified, and clearly followed by all – the Process component needs work. Sometimes a strong data component (with metrics that alert the leader to an issue and help keep people on track) will help solve a delegation issue.

* * *

Here is a direct link to the complete article.

Mike cordially invites you to check out the resources at these websites:

EOS Worldwide link

Mike’s Twitter link

Mike’s LinkedIn link

Mike’s Amazon page link

Mike’s YouTube video link

“EOS Story” YouTube video link

Sunday, March 29, 2015 Posted by | Bob's blog entries | , , , , , , , , , , , , , , , , , , | Leave a comment

Bernhard Schroeder: Part 1 of an interview by Bob Morris

SchroederBernhard Schroeder is the Director of the Lavin Entrepreneurship Center Programs and oversees all of the undergraduate and graduate experiential entrepreneurship programs on the San Diego State University campus. He also has responsibility for the Center’s marketing and outreach on both the SDSU campus and in the San Diego community. He is a part-time Clinical Faculty, Entrepreneurship teaching several entrepreneurship course including Creativity and Innovation.

Prior to moving to San Diego, Bernhard was a Senior Partner in the worlds’ largest integrated marketing communications agency, CKS Partners, which in 1998 had offices in over 30 countries, more than 10,000 employees and over $1 billion in revenue. Bernhard joined CKS in 1991 and working with the other four partners, grew the firm to almost $40 million in revenue by 1995 and led CKS to a successful IPO that same year.

He has experience working with Fortune 100 firms like Apple, Nike, General Motors, American Express, Mercedes Benz, Kellogg’s and others as well as start-up companies. He was involved in the initial branding and marketing launches for startup companies Yahoo! and Amazon. Today, he mentors more than 20 founders of startup companies in San Diego with yearly revenue ranging from $400,000 to more than ten million.

His book, Fail Fast or Win Big: The Start-Up Plan for Starting Now, was published by AMACOM (February 2015).

Here is an excerpt from part 1 of my interview of Bern.

* * *

Morris: Before discussing Fail Fast or Win Big, a few general questions. First, who has had the greatest influence on your personal growth? How so?

Schroeder: Two people had a huge impact on my personal growth. The first was my father who instilled in me the notion of working to get what you want. He worked two jobs for 14 years to put five kids through private school. Never saw him much in those years but we had an amazing relationship after he retired. So, I started working and making money at the age of 11 and I thought that was completely normal.

The other person who I never thought would have an impact on my life but did was my aunt. Looking back, my aunt was just a good average person who was fun to be around but no one that really stood out in my family. That all changed one day. I was 19 at the time, full of piss and vinegar trying to figure out what I wanted to do with my life. I was definitely struggling trying to determine how one laid out their life, like it was a play or something. I was told by my father that my aunt was dying. Just like that. Stomach pains for a few weeks, then the diagnosis. Terminal cancer. Three weeks to live. Having never experienced death in the family, I could not get my head around the concept of death. My aunt was only 38, looking amazingly healthy and was going to die. She had told my father she wanted to meet with me. My fear and apprehension was, “What do you say to someone who is dying?”

I met her in a hospice room at the hospital. When I walked into the room, she was sitting on the bed with a serious mound of paper all around her. I asked her, “What are you doing?” She replied, “I am organizing my life so as not to be a bother when I am dead.” For the next three hours, we talked about life. My life. Her life. And she started to tell me about all the things she had never done or had regretted. She sacrificed for the family and lost the love of her life (my aunt had never married). I can almost picture her sitting on the bed and talking to me as she said,” Bern, no matter what you do with your life, don’t ever have regrets. Don’t ever settle for something you don’t agree with. And live life as if you were going to die tomorrow.” That day when I left, I don’t think I realized what had just happened. But her words would come to define the way I lived my life. My personal life and entire career was defined by this statement,” I will not spend one day being in a place where I don’t feel I belong.” And that is exactly the way I have lived my life.

Morris: The greatest impact on your professional development? How so?

Schroeder: Three mentors have had the most impact in my professional development. The first mentor was in my very first marketing job. I did not realize it at the time because if you have never been mentored before, you really don’t know it is happening (being mentored). The key element is trust. We usually don’t build a quick trusting relationship with our boss. But looking back, he leaned in…he nurtured me, pushed me, scolded me and praised me. In the two years I worked for him, I received five years of experience and advice. He actually created a solid platform for my entire career.

The second person was a few years later and he was a crusty kind of curmudgeon guy we brought in from Xerox. Within about two weeks of meeting him (I reported to him), he pulled me into his office and flatly stated that I was terrible at two things: I did not know how to listen, and I really did not know how to sell. Now, you have to realize in just three years at this marketing agency, I had risen from entry level employee to vice president. So, I thought to myself “this guy is full of shit.” But over the next 3-4 months, he actually proved to me that I really did not listen and I was really not accomplished at the art of selling or as he liked to put it, the art of getting people to buy from you.

He did two things that changed my professional life. The first thing he did was to send me to a “Spin Selling” seminar in San Francisco which I did not want to attend. The three-day sales seminar changed my outlook on my personal and professional life. I learned the skillset of listening. I learned the difference between what people wanted and what they needed. I learned personality types and how to read a room. It was amazing. The second thing he did was simple. He honed my ability to trust my instincts. This is a really hard skill “or feeling” to develop. You can’t really see it. Can’t really take a class or seminar in instinct. Over the next two years, after every client or prospect meeting, he would ask me to deconstruct the meeting. What was “really” going on in the meeting, who were the decision makers, what did they really want and so on. Then, based on my deconstruction and thoughts, he would give me feedback on where I was spot on and where I was completely off and why. Again, you don’t really see or understand it when you are going through personal development in a deep way but looking back, it was huge.

The third person taught me about the power of teams. Up until I met my third mentor, I thought that all my accomplishments to date were based on me. That is, my success was singly determined by me and what I could accomplish. I had been on pretty fast track since coming out of school late (undergraduate at 27 years of age) and I was motivated to move aggressively in building my career. Took on risky promotions and difficult clients and was successful. When I met this person who would become my third mentor, I did not really see him as even being a potential mentor. First, I felt I was his peer. We were both about the same age, both had accomplished a lot and were now partners in building what would become a billion dollar company. But early in my relationship with him, he pulled me aside and in a very nonchalant conversation told me two things: I was not a strategic thinker and I absolutely did not know how to build teams of people that would go “to war” for me. I thought about that. Over the next two years, he taught me how to be real with people. How to nurture and care for the talented stars working for me. I learned the art of management where everybody wins. The other thing he taught me about strategy was perspective. To use a military analogy, I was always the lieutenant or captain building and rapidly executing marketing campaigns. But I was not the general, sitting on the hill or further away, who was looking way beyond the battle…looking at the how the entire war would be waged. I learned an immense amount of strategic perspective from him that lifted me to a new level of branding and marketing strategy. One that allowed me to clearly create brand and marketing strategies for my future clients (like Amazon and Yahoo!) with a very strategic plan, strong on tactics but amazing on marketplace strategy.

Morris: Years ago, was there a turning point (if not an epiphany) that set you on the career course you continue to follow? Please explain.

Schroeder: It’s hard to identify a turning point or epiphany in one’s life unless it’s something cathartic. Something that shakes or even defines your core. I would have to say, looking back, it was my aunt’s death. Her calmly talking to me as she was dying about never having regrets really formed the basis of how I would view life. I did it my way or the highway. I had people tell me, “ I don’t really like you…but you are one of the sharpest marketing people I have ever met and I respect you.” And seriously, all I wanted was to be respected. I did not really care if people liked me. Never have. The other part of what has become my mantra is I firmly believe no one was born to do anything…so what will you do? I have crafted my career around constantly challenging myself and enjoying life. I am not working on the cure for aids or cancer, so trust me, I have a perspective on what’s important in life. Sell another car or book, great. But don’t get hung up on that. I have wanted to make impacts and bring people along for the ride. I still stay in touch with people I hired and mentored in the mid 90’s. I mentor more than 20 founders of companies in San Diego. I reach thousands of students on the SDSU campus with messages of entrepreneurship, passion and doing what you want to do. It’s the most fun I have ever had.

Morris: To what extent has your formal education been invaluable to what you have accomplished in life thus far?

Schroeder: This is a tough question, especially since I work on a university campus. I look back and view my formal education as a necessary part of life to learn some core basics and learn how to become a good speaker and writer. I look at what impacted my life and formal education has played a very small role. My accomplishments have come from doing what I wanted to do that pushed me, really pushing the edge of marketing, mentorships and work/play experiences.

Morris: Of all the films that you have seen, which – in your opinion – best dramatizes important business principles? Please explain.

Schroeder: Okay, going to date myself here. I remember seeing A Wonderful Life several times and realized two things: I don’t want to be the hated banker guy and I do want to feel like I was important or loved enough to be missed. I also wanted to care about people. Second movie was Dead Poets Society. I wanted to live carpe diem…to seize every day. I did not want to have a meaningless professional career. I did not want a job. I did not want to settle or conform. I did not want to do what other people wanted me to do. I did not want to live through other people expectations. The third movie was Wall Street. I both wanted and did not want to be Charlie Sheen. I wanted success to come from hard work but not from cheating. I never wanted to compromise my integrity or ethics. Maybe walk up to that line but not cross it. The second thing, I knew I was going to be involved in growing or running a big company someday. I did not want to be Gordon Gecko. I did not want to be that guy that ruined people’s lives for money. Maybe that’s why still today, I carry a slight disdain for some venture capitalists. I encourage all the founders I mentor to bootstrap and eat top ramen so as to preserve their equity for as long as possible so that they can maintain control of their companies should they ever have to take on investors.

Morris: From which non-business book have you learned the most valuable lessons about business? Please explain.

Schroeder: Tough question. What do I say to sound pithy here? As I look back to the books I read in my formative years, I think of Papillion, The Outsiders, Catch-22, The Godfather and a few others. I think the one book that impacted me with its realism and symbolism was One Flew Over the Cuckoo’s Nest. If you have read this book or seen the movie, you are not supposed to like Randle Patrick McMurphy. But the more I read the book, I saw Randle as one of the few sane people in the book. My takeaway from the book relating to business was life is crazy, don’t try and completely predict it. Whatever your situation, make the best of it and change it if you can. And don’t ever conform in your beliefs or who you are…no one really cares anyway especially in business. And if you can befriend people on your journey, do so. They could be the part of your professional life that matters most. I don’t really remember, in a fond way, all the billions of dollars of products or services I helped sell in my career. I do remember the people, good or slightly crazy.

* * *

To read all of Part 1, please click here.

Bern cordially invites you to check out the resources at these websites:

His website link

Lavin Entrepreneurship Center link

Fail Fast or Win Big Amazon link

TEDx Encinitas video link

StartUp Circle video link

LinkedIn link

Wednesday, March 25, 2015 Posted by | Bob's blog entries | , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Greg McKeown: An interview by Bob Morris

McKeown, GregGreg McKeown is the author of the New York Times bestseller, Essentialism: The Disciplined Pursuit of Less. His writing has appeared or been covered by Fast Company, Fortune, HuffPost, Politico,Inc. Magazine and Harvard Business Review. He has also been interviewed on numerous television and radio shows including NPR and NBC. McKeown is the CEO of THIS, Inc. where his clients include Adobe, Apple, Airbnb, Google, Facebook, Pixar,, Symantec, Twitter, VMware and Yahoo!.

Greg is an accomplished public speaker. He has spoken to hundreds of audiences around the world including in Australia, Bulgaria, Canada, China, England, India, Ireland, Italy, Japan, Norway, Singapore, Switzerland and the United States. Highlights include speaking at SXSW, interviewing Al Gore at the Annual Conference of the World Economic Forum in Davos Switzerland and receiving a personal invitation from Haakon, Crown Prince of Norway, to speak to his Annual Innovation Conference.

In 2012 Greg was named a Young Global Leader by the World Economic Forum. Originally from London, he now lives in Silicon Valley with his wife and their four children. He graduated with an MBA from Stanford University.

Here is an excerpt from my interview of Greg.

* * *

Morris: Years ago, was there a turning point (if not an epiphany) that set you on the career course you continue to follow? Please explain.

McKeown: It happened years ago, one day after our precious daughter was born, healthy and happy at 7 pounds, 3 ounces. What should have been one of most serene days of my life was filled with tension. Even as my beautiful new baby lay in my wife’s tired arms, I was on the phone and on email with work, and I was feeling pressure to go to a client meeting.

My colleague had written, “Friday between 1-2 would be a bad time to have a baby because I need you to come be at this meeting with X.” It was now Friday and though I was pretty certain (or at least I hoped) the email had been written jest, I still felt pressure to attend.

Instinctively, I knew what to do. It was clearly a time to be there for my wife and newborn child. So when asked whether I planned to attend the meeting, I said with all the conviction I could muster…


To my shame, while my wife lay in the hospital with our hours-old baby, I went to the meeting. Afterward, my colleague said, “The client will respect you for making the decision to be here.” But the look on the clients’ faces did not evince respect. Instead, they mirrored how I felt. What was I doing there?! I had said “yes” simply to please, and in doing so disrespected my family, my integrity, and even the client relationship.

As it turned out, exactly nothing came of the client meeting. But even if it had, surely I would have made a fool’s bargain. In trying to keep everyone happy I had pleased no one and sacrificed what mattered most. On reflection I discovered this important lesson: If you don’t prioritize your life, someone else will.

Morris: To what extent has your formal education been invaluable to what you have accomplished in life thus far?

McKeown: My undergraduate was in journalism which is one of the only majors that teaches you how to ask the right questions. Almost all formal education teaches you how to find the right answer. That’s good as far as it goes. But to ask the right question is a higher and more valuable skill.

Morris: Of all the films that you have seen, which – in your opinion – best dramatizes important business principles? Please explain.

McKeown: I love the film Gandhi. He is an Essentialist and the film captures this. With singleness of purpose—to achieve independence for the Indian people—he eliminated everything else from his life.

He called the process, “Reducing himself to zero.” He dressed in his own homespun cloth (khadi) and inspired his followers to do the same. He spent three years not reading any newspapers because he found that their contents added only nonessential confusion to his life. He spent 35 years experimenting with simplifying his diet. He spent a day each week without speaking. It would be an understatement to see he eschewed consumerism: when he died he owned less than ten items. He intentionally never held a political position of any kind and yet became, officially within India, the Father of the Nation.

And his contribution extended well beyond India. As General George C. Marshall, the American Secretary of State said on the occasion of Gandhi’s passing, “Mahatma Gandhi had become the spokesman for the conscience of mankind, a man who made humility and simple truth more powerful than empires.” And Albert Einstein added, “Generations to come will scarce believe that such a one as this ever in flesh and blood walked upon this earth.” It is impossible to argue with the statement that Gandhi lived a life that really mattered or that his ability to focus on what was essential and eschew the nonessential was critical to his success.

Morris: From which non-business book have you learned the most valuable lessons about business? Please explain.

McKeown: Can I cheat and point to an essay rather than a book? It was written by Tennessee Williams and was first published in The New York Times and tells the story of his experience following the release of his widely acclaimed play The Glass Menagerie. The piece is called, and contains his thesis in the title, “The Catastrophe of Success.” He describes how his life changed after the success of the play and how he became distracted from the essentials that led to his success in the first place.

For more than 15 years I have been obsessed with a single question: “Why do otherwise capable people and teams not breakthrough to the next level?” The answer, as Williams beautifully captures, is success. It’s a counterintuitive answer: one that is hidden in plain sight. Success can become a catalyst for failure if it leads to what Jim Collins called “the undisciplined pursuit of more.” The key is to become successful at success. The antidote is the disciplined pursuit of less, but better.

* * *

To read the complete interview, please click here.

Greg cordially invites you to check out the resources at his website and LinkedIn.

Sunday, March 22, 2015 Posted by | Bob's blog entries | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Michael Schrage: An interview by Bob Morris

SchrageMichael Schrage is a Research Fellow at the MIT Center for Digital Business and a Visiting Fellow at Imperial College’s Department of Innovation and Entrepreneurship. He examines the various roles of models, prototypes, and simulations as collaborative media for innovation risk management. He has served as an advisor on innovation issues and investments to major firms, including Mars, Procter & Gamble, Google, Intel, BT, Siemens, NASDAQ, IBM, and Alcoa. In addition, Michael has advised segments of the national security community on cyberconflict and cybersecurity issues. He has presented workshops on design experimentation and innovation risk for businesses, organizations, and executive education programs worldwide. Along with running summer workshops on future technologies for the Pentagon’s Office of Net Assessment, he has served on the technical advisory committee of MIT’s Lincoln Laboratory. In collaboration with the Center for Strategic and International Studies (CSIS), Schrage helped launch a series of workshops sponsored by the Department of Defense on federal complex systems procurement. In 2007, he served as a judge for the Industrial Designers Society of America’s global International Design Excellence Awards.

Michael authored the lead chapter on governance in complex systems acquisition in Organizing for a Complex World (CSIS 2009). He has been a contributor to such prestigious publications as the Harvard Business Review, Sloan Management Review, the Financial Times, The Wall Street Journal, strategy+business, IEEE Software, and the Design Management Journal. In his best-selling book, Serious Play: How the World’s Best Companies Simulate to Innovate, published by Harvard Business School Press (2000), Schrage explores the culture, economics, and future of prototyping. His next book, Getting Beyond Ideas was published by Wiley (2010). His latest book, The Innovator’s Hypothesis: How Cheap Experiments Are Worth More than Good Ideas, was published by MIT Press (2014).

Here is an excerpt from my interview of Michael.

* * *

Morris: Before discussing The Innovator’s Hypothesis, a few general questions. First, who has had the greatest influence on your personal growth? How so?

Schrage: Certainly, my parents. But since adolescence and university, I would unhesitatingly say my friends and, of course, my wife. My friends and I take friendship seriously and we don’t indulge each other’s weaknesses even as we respect that no one is or should be without flaws. I like and admire my friends – and my wife – and they all give me superb perspective on what it means to try to be a good person. There’s a wonderful conversation to be had about “satisficing” and “optimizing” in this context but this isn’t the place.

Morris: The greatest impact on your professional development? How so?

Schrage: These are more awkward than difficult questions because – of course – that’s not the “unit of analysis” I would use. Certainly, my time as a Washington Post journalist/columnist had an enormous impact on me. I was in my early 20s and dealing with extraordinarily powerful, extraordinarily influential, extraordinarily smart and extraordinarily competitive people in a challenging environment. But the same could be said about my fellowship at MIT’s Media Lab back when Nicholas Negroponte was running it. I’ve always – always! – made a serious effort to learn form my professional interactions. Best case, I learned from the very best about what made them “effective” and what make them tick. At worst, I gained greater insight into myself and my limitations. I became much more sensitive to the reality that great intelligence, great influence and great competence did not necessarily correlate with good character – and vice versa.

Morris: Years ago, was there a turning point (if not an epiphany) that set you on the career course you continue to follow? Please explain.

Schrage: Yes. I was collaborating with my best friend to design and build a really path-breaking new software back in the 1980s. I slept on his couch and we worked together for a fortnight but nothing was coming out of us but frustration and bad arguments. Here we were – two really smart guys who liked and trusted each other and were committed to doing something great – but we were getting nowhere. This made no sense to us and we were both getting depressed.

Rob finally said, “Look, I know a guy – he’s a bit of a nut – but he’s come up with an interesting technology and approach to getting people to work together. We should see him.” I skeptically responded, “What is he? A therapist? We’re going into couples therapy now…?”

But Rob said it wasn’t like that and so we went off to Bernie’s. Long story short: Bernie had hooked up a Mac to a Limelight projector and simply facilitated a design discussion between Rob and myself. As we talked, our conversation was made visible on a large screen. We began talking to each other through the screen; that is, the focus of or attention and communication was the shared space of our screen-based conversation. We began to move the words and phrases and then pictures and graphs. To use Bernie’s phrase, “We could see ourselves being heard….” This meeting directly led to our design document and a real breakthrough in mutual understanding and awareness. I “got” it.

This simple computer-augmented conversation had a huge impact. It was, forgive me, transformative and led directly to my first book about collaboration. I am fascinated, struck, and compelled by how technology can amplify and augment who we are and what we can do not just for ourselves but with each other. This has been central to my academic research and advisory work. I had vaguely appreciated and understood that before the conversation with Bernie but that episode crystalized/galvanized and every other kind of ‘ized’ that into an epiphany.

Morris: To what extent has your formal education been invaluable to what you have accomplished in life thus far?

Schrage: Invaluable is a tricky word. Honestly, only three or four formal classes (and teachers) were truly ‘invaluable’ in my conceptual and/or intellectual development. My classes with Doanld Michie on AI; a couple of “history of economic thought” seminars and workshops. A matrix algebra class.

There are only a handful of formal educational experiences I can or would point to as being integral to my professional development and effectiveness. That said, being in those environments – having opportunities for informal exchanges, projects, mentorship, apprenticeship, etc. – was imperative to success. Bluntly, most formal learning mechanisms didn’t fit with my personality, curiosity and aspirations. Fortunately – or unfortunately – I was clever enough to always do “well.” But doing “well” and learning lots aren’t the same thing. I was genuinely interested not just in learning but in understanding the fundamentals and most of the subjects, courses and teachers I had in formal environments simply were unwilling or unable to provide that.

* * *

Here is a direct link to the complete article.

Michael cordially invites you to check out the resources at these websites:

MIT Faculty page link

The Innovator’s Hypothesis/MIT Press link

Amazon link

Amazon link to Who Do You Want Your Customers to Become?

YouTube videos link

Big Think videos link

Sunday, March 15, 2015 Posted by | Bob's blog entries | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Caroline L. Arnold: Part 1 of an interview by Bob Morris

ArnoldCaroline Arnold has been a technology leader on Wall Street for more than a decade, managing some of the financial world’s largest software development teams and leading some of the industry’s most visible and complex initiatives. A dynamic and engaging speaker, she has appeared before groups as large as 5,000 people. Caroline is a recipient of the Wall Street & Technology Award for Innovation for building the auction system for the Google IPO, and her name appears on technology patents pending. Caroline serves as a Managing Director at a leading Wall Street investment bank. Caroline graduated from the University of California at Berkeley with a degree in English Literature, and lives in New York City with her husband and daughter.

Her book, Small Move, Big Change: Using Microresolutions to Transform Your Life Permanently, was published by Viking Adult (January 2014) and is now available in a paperbound edition, published by Penguin Press December 2014).

Here is an excerpt from Part 1 of my interview of Caroline.

* * *

Morris: Before discussing Small Move, Big Change, a few general questions. First, who has had the greatest influence on your personal growth? How so?

Arnold: I’ve been influenced by many people in important ways, but my daughter Helen has had the greatest influence on me. Watching another human being develop, and putting that person’s well being first, has been a great learning experience for me and has expanded my view of life and changed my personal values.

Morris: The greatest impact on your professional development? How so?

Arnold: My father, who always wanted me to be a writer, and Guy Chiarello, who by example and encouragement got me to take the long view of my career. While we were at Morgan Stanley, Guy trusted me with amazing opportunities.

Morris: Years ago, was there a turning point (if not an epiphany) that set you on the career course you continue to follow? Please explain.

Arnold: For a few years I was a programmer, working strictly on a consulting basis because I felt it gave me more freedom and at some level I felt unready to say, “this is it, this is what I am doing for the next five years.” Giving up consulting to work on Wall Street was a big decision, but I knew it was the right one when one day I realized how much I was looking forward to the next five years advancing my career in one place.

Morris: To what extent has your formal education been invaluable to what you have accomplished in life thus far?

Arnold: My education at the University of California at Berkeley gave me a great classical education, exposed me to great works and great thinkers, and taught me critical thinking skills that I apply today both in writing and in Technology. I majored in English Literature, but I also had concentrations in Economics, Philosophy, and Drama. These disciplines may seem far from computer programming, but logic, problem-solving, connecting disparate pieces of information, and creativity are all part of good technology solutions.

Morris: What do you know now about the business world that you wish you knew when you went to work full-time for the first time? Why?

Arnold: It took me awhile to discover that the greatest pleasure in work is accomplishing something as part of a team, rather than entirely on your own. My first years as a programmer I had my own consulting practice, and I designed and implemented solutions either on my own or with one partner. When I gave up my practice to work on Wall Street, my orientation was towards solving everything myself, being entirely accountable. Within the first year I was given a team to manage and I managed them as an extension of myself, rather than seeing my role as enabling and energizing the team. Once I realized that success lay in empowering the team and investing in each person’s growth, I began to grow not just as a technologist, but as a human being.

Morris: Of all the films that you have seen, which – in your opinion – best dramatizes important business principles? Please explain.

Arnold: Hmmn, I love movies but am having a hard time thinking about one with business principles that I endorse. I guess I could say that Broadcast News shows the power and limitations of pure professional passion to meet the challenges of a changing industry.

Morris: From which non-business book have you learned the most valuable lessons about business? Please explain.

Arnold: I learned a lot from reading Adam M. Grant’s Give and Take, which I found a refreshing read on how to thrive in competitive environments while enabling and empowering others–an intelligent take on how good guys can finish first. So much of what gets written and quoted is about winning the rat race while Prof. Grant’s book assess the broader stakes in professional behavior.

Morris: Here are several of my favorite quotations to which I ask you to respond. First, from Lao-tse’s Tao Te Ching:

“Learn from the people
Plan with the people
Begin with what they have
Build on what they know
Of the best leaders
When the task is accomplished
The people will remark
We have done it ourselves.”

Arnold: Love the quote and believe in the principle. The leader’s job is to inspire passion and performance in others, to work in service of the team’s success.

Morris: From Howard Aiken: “Don’t worry about people stealing your ideas. If your ideas are any good, you’ll have to ram them down people’s throats.”

Arnold: Well, while I think it’s true that the truly transforming idea may be one that is so alien that others don’t seize on it (i.e., steal it), plenty of good ideas are recognized immediately and promoted by others as their own. But I would still advise not worrying about those who will steal your ideas, because you need to share ideas in order to advance them.

Morris: From Richard Dawkins: “Yesterday’s dangerous idea is today’s orthodoxy and tomorrow’s cliché.”

Arnold: True, and the time required to go from dangerous idea to cliché is shrinking rapidly as technology renders iteration and adoption ever faster.

Morris: From Isaac Asimov: “The most exciting phrase to hear in science, the one that heralds the most discoveries, is not “Eureka!” (I found it!) but ‘That’s odd….’”

Arnold: Great discoveries and ideas are often born of observing what one perceives to be an anomaly.

Morris: From Thomas Edison: “Vision without execution is hallucination.”

Arnold: Yes, executing a vision is the entire ballgame. I have known many of vision who simply couldn’t get from whiteboard to implementation.

Morris: Finally, from Peter Drucker: “There is surely nothing quite so useless as doing with great efficiency what should not be done at all.”

Arnold: The wisdom and challenge of this is timeless, and I’m going to consciously think about it more often. How often do we refactor processes that we should just kill? How often do we feel productive doing something that is really marginal to productivity…like answering every email immediately?

Morris: In one of Tom Davenport’s recent books, Judgment Calls, he and co-author Brooke Manville offer “an antidote for the Great Man theory of decision making and organizational performance”: organizational judgment. That is, “the collective capacity to make good calls and wise moves when the need for them exceeds the scope of any single leader’s direct control.” What do you think?

Arnold: I don’t think this is either/or. A great leader making great decisions can change the fortunes of any initiative, as can the collective wisdom of a team. Ideally, you have both – a visionary leader and a smart team empowered to question the leader and advocate direction. I think the “great man” theory has a lot to do with the cult around Steve Jobs, but Steve Jobs was a singular person of fierce passion and conviction who was an business ascetic of sorts, unwilling to compromise, willing personally sacrifice. That he built a great company is undeniable, and if he left behind a great team, it will survive him. Jobs is so unusual, thought, I think that people get into trouble who try to emulate him. Leadership is personal, although lessons from others can, of course, be understood.

* * *

To read all of Part 1, please click here.

Caroline cordially invites you to check out the resources at these websites:

Her website link

Twitter link

Link to video of her presentation at Microsoft headquarters

Facebook link

Sunday, March 1, 2015 Posted by | Bob's blog entries | , , , , , , , , , , , , , , , , , , | Leave a comment

Dick and Emily Axelrod: Part 1 of an interview by Bob Morris

AxelrodsDick and Emily Axelrod come from a long line of entrepreneurs. So it was no surprise when in 1981 Dick left General Foods to form The Axelrod Group. At the time Emily was studying to get her second masters degree, in Social Work.

At the same time as Dick was leaving General Foods, his friend and colleague Jim Shonk landed a huge contract with Ford and needed help. This kickstart from Jim was just what the fledgling Axelrod Group needed to get started. Emily in the meantime was honing her skills as a family therapist. Periodically, Emily would work with Dick to conduct communication skills training programs.

During the early 1990’s, Dick was becoming increasingly dissatisfied with the approach most consulting firms were using to bring about organizational change. You know the process: it consists of sponsor groups, steering teams, and project groups, all organized to create the change. When these groups finished their work, they then faced the arduous task of “selling” their solution to the organization. This need to sell the solution brought many a change process to its knees.

Out of this dissatisfaction, Dick and Emily developed the Conference Model®–a process for involving the “whole system” in creating organizational change. Every new idea needs someone who is willing to try something that is unproven, and Ken Goldstien, who at the time was Director of Organization Development at R.R. Donnelley and Sons, was willing to give this untested idea a chance when no one else would. Because of the early success at R.R. Donnelley, companies like Boeing, British Airways, Hewlett-Packard, Intel, INOVA Health System, Weyerhauser, and the Canadian and UK health systems were able to benefit.

At the height of this innovation, Dick had triple bypass surgery, and that is when Emily jumped into The Axelrod Group with both feet. Along the way, colleagues have joined the Axelrod team, and this worldwide network provides a range of skills that enrich The Axelrod Group’s offerings.

Dick wrote Terms of Engagement: New Ways of Leading and Changing Organizations, published by Berrett-Koehler (May 2000) with a paperbound edition published in 2010. He and Emily then co-authored Let’s Stop Meeting Like This: Tools to Save Time and Get More Done, also published by Berrett-Koehler (August 2014).

Here is an excerpt from my interview of the Axelsons.

* * *

Before discussing Terms of Engagement and then Let’s Stop Meeting Like This, a few general questions. First, who has had the greatest influence on your personal growth? How so?

Dick: This is a hard question. I’ve had many professional teachers from whom I’ve learned a lot about people and change, but as I reflect on this I believe the roots of who I am took place with my father.

Here are some of the lessons I learned from my dad that I carry with me today.

o Do what you love: My father manufactured model airplanes. He took his hobby and made it into a successful business. His work was an extension of who he was.

o Work is dignified: No matter what anyone does, their work should be treated with respect.

o Treat everyone with respect: This is a companion to work is dignified. Both the work and the person doing the work deserve respect.

o Stand up for what you believe: My father single-handedly stopped a race riot by saying no to a group of organizers who came to our house to enlist his support for creating the riot.

o Take care of your family: My father’s will had provisions for the care of his mother-in-law, something he didn’t have to do.

o It’s possible to be a friendly competitor—this is an abundant world where everyone can make a living: My dad had personal relationships with his biggest competitors. In fact his biggest competitor came to Emily’s and my wedding.

o Honesty: Be ethical and honest in all your personal and business relationships.

o It pays to be ignorant: Today it might be stated as, “Have an inquiring mindset.” What he meant was you don’t have to have all the answers, and you can learn a lot by listening to others.

o Personal responsibility: When I was a teenager, my dad told me that if I got a girl pregnant he would not support my family. That was his way of saying that you have to take personal responsibility for what you do.

o Support your friends: If you were my dad’s friend, he would be there for you no matter what. If a widow in Toledo, Ohio needed help, our whole family took a trip to Toledo. If a friend was sick or dying, Dad would drop what he was doing to be with them. If a friend were out of work, he would find a job for him in his company or help that person make connections so they could find work.

o Stick-to-it-iveness: My father spent ten years developing a product called monokote that revolutionized how people covered and painted airplanes. Instead of covering your airplane with paper and then applying many coats of “dope” to get a shiny finish, with monokote (a mylar material) and a heat gun you could put a finish on your plane in a matter of minutes instead of hours. You also didn’t smell up the house, which my mother hated. Dad also invented a heat gun to apply the product because none existed in the market place. There is another lesson here, which is to find out the problems customers have when they use your products and then invent new ways to help them resolve those problems. In this case, time and disgruntled family members who didn’t like the house smelling like a paint factory.

Emily: Besides my parents, one of the first teachers to mention human relations to me was a ninth-grade English teacher: Ms. Fanny Burnett. Every week we had a human relations lesson. This stuck with me through the years and was reinforced through the youth group advisors at church, volunteers in the girl scouts, and other teachers along the way. Another important teacher was Sandra Hammond who is a therapist and Buddhist teacher with whom I studied for 10 years learning her Character Work method and being in a study group with her. She combined the study of Buddhism and family therapy. Also, Dick Axelrod probably has been the greatest influence. We have worked and grown together for 35 years. He is completely honest with me and I trust his feedback.

The greatest impact on your professional development? How so?

Emily: At first, my family, then the girl scouts as they taught me I could do anything I worked hard to do and really wanted. A chemistry teacher in high school turned me on to science. The women’s college I attended in NC added to that with leadership training and confidence building. Dick Axelrod, Peter Block, Marv Weisbord, Kathy Dannemiller, Peter Koestenbaum, Barbara Bunker, Billie Alban, and my own curiosity built on this foundation.

Dick: Richard Heckler. Years ago Emily and I studied body therapy for two years in a group of people with Richard. This group was so strong that it stayed together for many years following the completion of our formal studies. In this group I learned the connection between mind and body, and how what is happening with the body is as important as what is happening with the mind and emotions. While we were there to learn the mechanics of doing body therapy—how to help people access different thoughts and emotions through touch—I also learned a more important lesson: the power of presence. By this I mean what it means to be with another person so they know they have your undivided attention. Can you see the world through their eyes? Can you experience what they might be experience? Can you attend to their breathing out and breathing in, the rush of color to their face, the nervous movement of their feet? Can you absorb this information in a non-judgmental way and just be with the person? This ability to be with another person in a non-judgmental way, recognizing they are doing the very best they can is something I use everyday whether I’m consulting to individuals, teams, or organizations.

I learned that paying attention is an act of leadership. What and how you pay attention matters.

The other big lesson was that you access different information through the body. One time we were working with a group of about 100 people using our Conference Model® process to redesign the organization. There were three different alternatives that people were trying to evaluate. We had the participants create living organization charts. What we did was outline the organization charts on the floor and then had people stand in the various configurations to look at who they were working with and who they needed to work with. We did this for each configuration and then asked folks to identify the chart where they felt most comfortable. I remember one person who was in a matrix standing there with her arms outstretched caught between two organizations, talking about how painful it was to be in this place in the organization. In actuality the group developed a fourth option as a result of their discussion. Identifying the pain and actually trying out what it might be like to be in the various organizational structures could not occur through talking; people had to experience it. I doubt if the group would have ever come up with the fourth option had they not experienced it.

Years ago, was there a turning point (if not an epiphany) that set you on the career course you continue to follow? Please explain.

Dick: I was a line manager for Illinois Bell, in a fast-track management development program, responsible for repair service for one part of Chicago. My group was the pilot organization development group for the company. The consultants did basic team-building with us and as a result, our group rose to be 1st or 2nd in every measurable category. The thing I felt proudest about was that every day we put 85 trucks on the street and we went a year without a vehicle accident. We didn’t do any special safety training. All we did was change the relationship between the telephone workers and their supervisors.

Shortly afterwards, the company started an internal organization development consulting group and I volunteered to be part of that group. I was also getting my MBA at the University of Chicago and decided to take up Organization Behavior as my area of concentration. From Illinois Bell I went to General Foods and became the OD manager for Chicago where I worked on implementing self-directed work teams. In 1981 I left General Foods to start the Axelrod Group.

Had my group at Illinois Bell not been chosen as the pilot group, my career as it is today may not have happened.

Parallel to this story is the decision not to join my father’s business. All my life I was groomed as the heir apparent. In fact, working at Illinois Bell was part of my father’s management training program for me. He wanted me to go out and work for big companies and learn how they did things so that when I took over his company, I could bring that learning to the world of model airplane manufacturing.

I took seriously my father’s admonition to do what I loved, and when I found out that organization development consulting is what I love, he never had a problem with that. Even though it meant I would not take over the business he built.

Emily: I don’t recall an epiphany as I have always looked for better ways of doing things no matter what we were doing, from parenting to ways of working. If there was a turning point, it was Dick’s heart surgery. I then had to take over the business side of our company as I was in charge. That a commitment to learning and working more much more determination.

To what extent has your formal education been invaluable to what you have accomplished in life thus far?

Emily: My formal education gave me a wonderful foundation. My social work and family systems work certainly helped in understanding systems and the communication needed to have a successfully functioning system. The concept of emotional safety in order for people to be honest and learning how to language things positively all help. The two things I believe in strongly are learning and choice. This work is about both of these.

Dick: I was lucky enough to go to the University of Chicago on the GI bill. Much of what I learned at the UofC is now obsolete. But what is not obsolete is that at the University of Chicago I learned how to learn. I learned how to think critically about ideas and not to accept that just because someone wrote a book it was true. What was great about a UofC education was that in every course you didn’t just have one text, you had several, and most of the time the authors espoused different theories. It is this learning how to learn that I think has allowed me to continue to stay relevant in our fast-changing world.

At our graduation, in Rockefeller Chapel at the University of Chicago, our commencement speaker said, “You think you are getting your business degree today that will allow you to become leaders in the world of business and that you will do. But UofC graduates do more than that, they teach.” He went on to say, “I predict that most of you will at some point in your career teach either informally in your work setting or formally at schools and universities.”

One of the biggest thrills of my life has been to teach Crisis Leadership at the University of Chicago.

* * *

To read all of Part 1, please click here.

Dick and Emily cordially invite you to check out the resources at this website.






Wednesday, February 18, 2015 Posted by | Bob's blog entries | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Marcia Reynolds: Part 1 of a second interview by Bob Morris

ReynoldsDr. Marcia Reynolds, president of Covisioning LLC, works with clients around the world who seek to develop effective leaders. She understands organizational cultures, what blocks communication and innovation, and what is needed to bring people together for better results. She has coached leaders, delivered leadership, coaching and emotional intelligence programs, and spoken at conferences for clients in 34 countries. She has also presented at many universities including Harvard Kennedy School and Cornell University,

Prior to starting her own business, Marcia’s greatest success came as a result of designing the employee development program for a semiconductor manufacturing company facing bankruptcy. Within three years, the company turned around and became the #1 stock market success in the United States when they went public in 1993.

Excerpts from her books Outsmart Your Brain, Wander Woman, and her latest, The Discomfort Zone: How Leaders Turn Difficult Conversations into Breakthroughs have appeared in many places including Harvard Management Review,,, Psychology Today, and The Wall Street Journal and she has appeared on ABC World News.

Marcia’s doctoral degree is in organizational psychology with a research emphasis on the challenges and needs of high-achievers. She also holds two masters degrees in education and communications.

Here is a brief excerpt from Part 1 of my second interview of Marcia. To read all of Part 1, please click here.

* * *

Morris: Before discussing The Discomfort Zone, a few general questions. First, to what extent has your formal education been invaluable to what you have accomplished in life thus far?

Reynolds: I am grateful for the combination of significant life experiences with my education. My degrees have given me a deeper understanding of the value of my experiences, including the failures, disappointments, and choices that could have destroyed my life at a young age. In addition to better understanding human behavior, including my own, my education gives me the gifts of analysis and compassion. The combination of street and formally acquired knowledge helped me to be a good coach and teacher for my clients. Now with years of experience in helping leaders improve their emotional intelligence and communication skills, I was able to write the book, The Discomfort Zone, bringing all that I know together to help people have powerful conversations that make a difference in each other’s lives.

Morris: Here are several of my favorite quotations to which I ask you to respond. First, from Lao-tse’s Tao Te Ching:

“Learn from the people
Plan with the people
Begin with what they have
Build on what they know
Of the best leaders
When the task is accomplished
The people will remark
We have done it ourselves.”

Reynolds: There is nothing more satisfying than discovering solutions to our most difficult problems on our own. Yet when we are stuck seeing things in one way, it is very difficult to see outside of our boxes. Leaders who master the skills of helping others think through their blind spots, attachments, and resistance are not only effective, they are the most remembered and revered.

In the book, Synchronicity, Joseph Jaworski said the most successful leaders are those who participate in helping others create new realities. The leader engages in conversations that bring to light a person’s filters and frames. When the factors that frame the meaning of a situation are revealed, the view of what is true changes and becomes clear.

Think about it. If I were to ask you to recall someone who changed your life by something they said, who comes to mind? My guess is that they said something that challenged you to be more and do more, more than you thought you could on your own. In response, you might not have jumped for joy in the moment. But you always remember the leader who saw you, heard you, and helped you to see yourself and the world in a bigger way.

These are Discomfort Zone conversations, where new ideas are birthed. The moment might be uncomfortable, but in this moment, profound and lasting learning happens. And the person realizes that in the end, they discovered the solutions themselves.

Morris: From Isaac Asimov: “The most exciting phrase to hear in science, the one that heralds the most discoveries, is not “Eureka!” (I found it!) but ‘That’s odd….’”

Reynolds: I do think curiosity is underrated, that curiosity is the predecessor of great discoveries whether we are learning about the world or about something in ourselves. In Discomfort Zone conversations, the leader listens with curiosity, listening from a “that’s odd” or “tell me more” perspective. Then when they reflect back what they hear, the person could have an epiphany but they are just as likely to respond, “Of course, I should have recognized this long ago” which could lead to just as important of a shift as the epiphany. Curiosity over what is odd, doesn’t make sense, or irregular is a great start to new discoveries.

Morris: Finally, from Peter Drucker: “There is surely nothing quite so useless as doing with great efficiency what should not be done at all.”

Reynolds: Drucker is correct but when we have our heads down, focused on our work, we rarely have the perspective or courage to step back and see that persistence could be the enemy of progress. According to Daniel Kahneman in his book, Thinking Fast and Slow, it is also not our habit to slow down and consider all the possibilities in front of us. That is why having a coach or a leader trained in using a coaching approach can help us assess what we are doing where we won’t or can’t do this for ourselves. The leaders who know how to asks the questions—with curiosity, not negative judgment—that make us stop and question ourselves help us to be more effective. In the end, they help us grow our mental capacity as well. The best leaders are the ones who develop people’s minds as well as their skills.

* * *

To read all of Part 1, please click here.

To read my first interview of Marcia, please click here.

Marcia cordially invites you to check out the resources at these websites:

Her website

To go directly to download resources and read about The Discomfort Zone, please click here.

You can rate your ability to deal with discomfort by clicking here.

Wednesday, February 11, 2015 Posted by | Bob's blog entries | , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Be•Know•Do: A book review by Bob Morris

Be:Know:DoBe•Know•Do: Leadership the Army Way: Adapted from the Official Army Leadership Manual
United States Army (Author); Frances Hesselbein and Eric K. Shinseki (Introduction), and Richard E. Cavanagh (Foreword)
Jossey-Bass/Leader to Leader Institute; 1st edition (2004)

How to develop leaders who have character, competence, knowledge, and results-driven initiative

I recently re-read this book, curious to know to what extent its content remains relevant. My conclusion? It is even more relevant today than it was when first published in 2004. In Richard E. Cavanagh’s Foreword, he recalls a discussion during dinner with Peter Drucker and Jack Welch who shared the same opinion that the United States military services do the best job developing leaders. What we have in this volume is an adaptation by Frances Hesselbein and General Eric K. Shinseki (USA Ret.) of Field Manual 22-100, Army Leadership, with assistance from Alan Shrader. Hesselbein and Shinseki also wrote the Introduction. The material is carefully organized within seven chapters, followed by a Conclusion that reviews the most important points, correctly noting the unique and compelling role that the U.S. Army has played since June 14, 1775, when the Continental Congress authorized enlistment of riflemen to serve the United Colonies for one year.

With regard to the book’s title, “Army leadership begins with what the leader must Be, the values and attributes that shape a leader’s character…People want leaders who are honest, competent, forward-looking, and inspiring…People willingly follow only those who know what they are doing. One of the quickest ways for a leader to lose trust and commitment of followers is to demonstrate incompetence…Character and competence, the Be and the Know, underlie everything a leader does. But character and knowledge – while absolutely necessary – are not enough. Leaders act; they Do…They solve problems, overcome obstacles, strengthen teamwork, and achieve objectives. They use leadership to produce results.”

I realize that these concepts seem simple. In one sense they are. However, in this context, I am reminded of what Oliver Wendell Holmes once said: “I would not give a fig for the simplicity this side of complexity, but I would give my life for the simplicity on the other side of complexity.” The challenge to any organization when developing leaders is to guide those involved to the other side of complexity.” The composite of excerpts from Be•Know•Do identifies core concepts, to be sure, but it also describes the character, competence, knowledge, and results-driven initiative that the U.S. Army seeks to develop within every one of its soldiers, regardless of rank. “No one is only a leader; each person in an organization is also a follower and part of a team. In fact, the old distinction between leaders and followers has blurred; complex twenty-first-century organizations require individuals to move seamlessly from one role to another in an organization, from leadership to `followership,’ and back again.”

Hesselbein and Shinseki are to be commended for their skillful adaptation of Field Manual 22-100, Army Leadership, but also for the inclusion within the narrative of relevant material from sources outside the U.S. Army organization. For example, they quote prominent business thinkers throughout the narrative: James Kouzes and Barry Posner on leadership by example (page 24), John Gardner on the importance of a shared vision (page 30), Patrick Lencioni on teamwork (page 86), and John Kotter on a leader’s “quest for learning” (page 132). Readers will also appreciate the provision of various “Exhibits” such as 5.1 that provides a brilliant illustration of Team-Building Stages.

Those who share my high regard for this volume are urged to check out Frances Hesselbein’s other works and the wealth of resources available at the Leader to Leader Institute, a non-profit and tax exempt organization. Also, Warfighting: The U.S. Marine Corps Book of Strategy (Tactics for Managing Confrontation) published in 2004.

Wednesday, January 28, 2015 Posted by | Bob's blog entries | , , , , , , , , , , , , , , , , , | Leave a comment

Nick Gogerty: Part 1 of an interview by Bob Morris

GogertyNick is the author of The Nature of Value: How to Invest in the Adaptive Economy (Columbia University Press 2014) and involved in a technical confidential project with one of the world’s largest global macroeconomic hedge funds. He lectures in Columbia University’s MBA value investing program on innovation, macro-economic portfolio, and scenario risk management. Meanwhile, he is a top 1% performer as a portfolio manager for a long/short hedge fund (+20% v. -60% for S&P 500 2007-2009) and advises large banks on risk management, including the Flash Crash, and is a chief analyst managing commercialization for a science research institute modeled on the MIT Media Lab. His primary fields of inquiry include biotechnology, nanotechnology, artificial intelligence, renewable energy, genetics, quantum computation, and others such as

o Venture capital screening and start-up advisory work

o Founding software startups in social media and crypto currency space

o Expert testimony to the United States Senate on the international risks associated with the $200 billion Y2K technology issue

o Human behavior studies with an undergraduate degree in cultural anthropology from the University of Iowa focused on sustainable economic development in West Africa

He earned an MBA from The Ecole Nationale de Ponts et Chaussees in Paris with a thesis on a quantitative approach for hedge funds and is a designated Chartered Alternative Investment Analyst (CAIA). Nick resides in Greenwich (CT) with his wife and daughter.

Here is an excerpt from Part 1 of my interview of Nick. To read the complete interview, please click here.

* * *

Before discussing The Nature of Value, a few general questions. First, to what extent has your formal education been invaluable to what you have accomplished in life thus far?

Gogerty: Formal education isn’t invaluable, it is incidental. Most formal education revolves around gaining a social credential as an extrinsic reward. An unquenchable thirst to learn and pursuit of intrinsic goals are more important than an increasingly overpriced piece of paper which confers social recognition. The intrinsic rewards of pursuing discovery and personal mastery of a craft or body of knowing are far more important than most formal education. Formal education can provide a base, but true achievements and breakthroughs, scientific, leadership, cultural or artistic come from a deeper place.

Morris: What do you know now about the business world that you wish you knew when you when to work full-time for the first time? Why?

Gogerty: I wish I had been introduced to value investing at age 13 when I bought my first stock. I am quantitative by nature and chased the ghost of price for many years.

Morris: From which non-business book have you learned the most valuable lessons about business? Please explain.

Gogerty: Many books stand out as providing pieces to the puzzle, from autobiographies to history etc. I could easily create a list of 50-75 very worthwhile books, half of them come from outside the traditional “business” domain.

Within the business domain, The Essays of Warren Buffet are useful in combining many sound concepts into a clear narrative. Poor Charlie’s Almanack is useful for acknowledging the importance of multi-disciplinary thinking while simultaneously keeping things as logical as possible. Bridgewater’s public site ( is great on macroeconomics and credit.

Morris: Here are several of my favorite quotations to which I ask you to respond. First, from Lao-tse’s Tao Te Ching:

“Learn from the people
Plan with the people
Begin with what they have
Build on what they know
Of the best leaders
When the task is accomplished
The people will remark
We have done it ourselves.”

Gogerty: Having taken a class or two in Taoism and Confucian rhetoric but not being a gifted writer, I respond with a quote from someone else and my own lines.

“If you want to build a ship, don’t drum up people to collect wood and don’t assign them tasks and work, but rather teach them to long for the endless immensity of the sea.” — Antoine de Saint-Exupery

“When leading inspire others to their greater self.
When challenged ingest the lessons within the gift of failure.
When winning reflect success onto others rarely accept it personally.” — Nick Gogerty

Morris: From Howard Aiken: “Don’t worry about people stealing your ideas. If your ideas are any good, you’ll have to ram them down people’s throats.”

Gogerty: I agree with this suggestion that the truly novel idea is often so novel that no one thought of it or thought enough of it to give it a go. Having managed scientists, entrepreneurs and software entrepreneurs; often the first lessons are a discussion of the how truly common “good” ideas are. Well-executed and elegantly designed solutions are another matter altogether.

Morris: From Richard Dawkins: “Yesterday’s dangerous idea is today’s orthodoxy and tomorrow’s cliché.”

Gogerty: I respond again with another quotation, another quotation from Arthur Schopenhauer: “All truth passes through three stages. First, it is ridiculed. Second, it is vigorously opposed. Then, third, it is accepted as being self-evident.” Arthur Schopenhauer

Morris: From Isaac Asimov: “The most exciting phrase to hear in science, the one that heralds the most discoveries, is not “Eureka!” (I found it!) but ‘That’s odd….’”

Gogerty: I totally agree with Asimov after having seen scientists involved with basic research. Willful ignorance to counterfactual evidence is all too common and often hides far greater truths. Willful ignorance can be illustrated by frauds like Bernard Madoff or a scientific “truth” advanced only for the sake of career or tenure.

Science, “truth” and facts are often misunderstood as physical objects. They are all processes involving creation and destruction. The nature of progress (our “truths”) will become tomorrow’s folly’s clung to during a naïve age. It has always been like this.

I strongly recommend that people read Thomas Kuhn’s Structure of Scientific Revolutions and The Half Life of Facts by Samuel Arbesman to appreciate the fleeting nature of truth and the dangers of pursuing fixed dogmas and cultures. According to Arbesman, so-called economic “facts” have a 3.5 year half-life while physics-based facts average a half-life of 13 years.

The power of Science comes from the fact that it is an evolving body of knowledge possessing zero truths. Science is the process of a set of hypotheses awaiting their fate to fail on the path to deeper understanding.

Morris: Finally, from Peter Drucker: “There is surely nothing quite so useless as doing with great efficiency what should not be done at all.”

Gogerty: Not much to add to that.

* * *

To read all of Part 1, please click here.

Nick cordially invites you to check out the resources at these websites:

His Amazon page link

The Nature of Value Amazon link

The Nature of Value website link

Eric J. Chaisson link

Wednesday, January 7, 2015 Posted by | Bob's blog entries | , , , , , , , , , , , , , , , , | Leave a comment

Geoffrey Moore on Big Data and RFID: An interview by Bob Morris

0c560a3Geoffrey Moore is an author, speaker, and advisor who splits his consulting time between start-up companies in the Mohr Davidow portfolio and established high-tech enterprises, including Salesforce, Microsoft, Intel, Box, Aruba, Cognizant, and Rackspace most recently. His life’s work has focused on the market dynamics surrounding disruptive innovations. His first book, Crossing the Chasm, 3rd Edition: Marketing and Selling Disruptive Products to Mainstream Customers, focuses on the challenges start-up companies face transitioning from early adopting to mainstream customers. It has sold more than a million copies, and its third edition has been revised. A majority of its examples and case studies reference companies come to prominence from the past decade. Moore’s most recent work, Escape Velocity: Free Your Company’s Future from the Pull of the Past, addresses the challenge large enterprises face when they seek to add a new line of business to their established portfolio. It has been the basis of much of his recent consulting. Geoff has a BA in American literature from Stanford University and a PhD in English literature from the University of Washington.

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Morris: Before discussing big data and RFID, a few general questions. First, as you reflect on all that has – and hasn’t –happened in the global marketplace in 2014, what do you consider to be of greatest significance? Please explain.

Moore: If I had to pick only one, it might be the change in leadership at Microsoft. It has freed the company to explore a variety of different roles and relationships at a time when enterprise CIOs are particularly concerned about how to manage the expansion of the IT footprint into Cloud, Mobile, Social and Big Data Analytics. Microsoft is uniquely positioned to make a big contribution here if it can realign its assets to meet the new set of demands.

Morris: In one of Tom Davenport’s recent books, Judgment Calls, he and co-author Brooke Manville offer “an antidote for the Great Man theory of decision making and organizational performance”: organizational judgment. That is, “the collective capacity to make good calls and wise moves when the need for them exceeds the scope of any single leader’s direct control.” What do you think?

Moore: Well, since “great man” eliminates half the human race, I certainly think it does need to be replaced in some fashion. And there is no question that management is becoming a much more collaborative enterprise, especially as we move away from supervised co-located workforces and toward more virtualized organizations and workflows. That said, when big bets are in the works, and the forces are unstable and hard to read, I do believe that a single individual needs to be at the tiller. Ideally, that person listens well, but also ideally, they are confident enough in their principles to make clear calls in a timely manner. I do not think a group can do this.

Morris: Here’s a brief excerpt from Paul Schoemaker’s latest book, Brilliant Mistakes: “The key question companies need to address is not ‘Should we make mistakes?’ but rather Which mistakes should we make in order to test our deeply held assumptions?'” Your response?

Moore: When the outcome is not mission-critical, and the issues are nascent, for sure “fast failure” is part of a winning modality. The mantra I would add here is “Win, or learn.” Organizations that hold all efforts to the same standard are severely hampered in this kind of situation. Once you are driving to produce mission-critical outcomes, however, failure is not an option. Now if the forces are still nascent, you have to provision the effort in such a way that you have multiple back-ups. This drastically reduces the number of disruptive, mission-critical initiatives one can — or at least should — undertake.

Morris: Looking ahead to 2015, what do you think will be the single greatest challenge to CEOs? Why?

Moore: The challenge I am focused on for this decade is, how can an established market leader in a mature category catch the next wave? I don’t know it if is the single greatest challenge, but it is sufficient to keep me busy full-time for sure.

Morris: Any advice?

Moore: I laid out the problem statement in my last book, Escape Velocity. Now I am in the process of writing a shorter, crisper playbook for how to organize, measure, and compensate teams to actually get this done.

Morris: Now please shift your attention to big data. In your opinion, why has interest in it increased so rapidly and extensively in recent years? To what extent have disruptive innovations (e.g. social media technologies) been a major factor? Please explain.

Moore: Google, Facebook, and Amazon have each applied Machine Learning to Big Data to effectively eviscerate entire industries, driving all the established sector leaders back on their heels. Moreover, it seems pretty clear that this is just the beginning, so the wait-and-see option is looking pretty scary.

Morris: What are some of the most common misconceptions about Big Data? What in fact is true?

Moore: It is not really about Big Data. It is about Machine Learning. The big idea is that one can algorithmically detect actionable signals from the digital exhaust that trails every online process anywhere on the globe. Yes, there is a ton of data, but that is not the critical factor. It’s the analytics that transform it into information, and the connectivity needed to get that information into a decision flow in time to make a difference,

Morris: Based on what I’ve learned thus far, the term “big data” seems to be a misnomer. While its size receives all the attention, the most challenging aspect of big data seems — at least to me — to be its lack of structure. What do you think?

Moore: I am with you. The reason lack of structure is so important is that we already have the ability to analyze structured Big Data in a timely fashion. It is the unstructured (or rather, non-tabular) data that really are driving this new set of use cases, specifically the log files that sit behind the social graphs, the internet of things, the behavioral targeting, and the like.

Morris: There’s a lot of talk about Big Data, but when you look at retail stores, inventory accuracy is just 65 percent. Supply chains struggle with inventory accuracy, shipping accuracy, and other problems. What’s the value of big data if a lot of the data is inaccurate?

Moore: Actually, this is a different problem. Big Data is orthogonal to Bad Data. But there is an important point to note here. Bad Data claims to be Good Data. Big Data does not make any claims at all—it is just digital exhaust.

Morris: Here are some observations about issues related to big data and analytics by authors of recently published books. Please respond to each. First, from Gert H. Larsen and Jesper Thurlund’s Business Analytics for Managers: “We will move away from static retrospective reporting results toward factual real-time information and analytical knowledge to drive individuals and business processes.”

Moore: Yes, this is the whole point. My one quibble is that we not move away from the static stuff — it is still quite useful — but rather that we will commit increasingly to the real-time data-informed machine-enabled decision making.

Morris: From Christopher Surdak’s Data Crush: “Clouds will grow beyond infrastructure and will begin to migrate into markets higher up in the corporate value chain. This trend will rapidly lead to Everything as a Service (EaaS) marketplaces, where nearly any business outcome will be purchased by an outside provider.”

Moore: I think this is probably the pendulum swinging too far. But the point about migration is very real. Marketplaces are migrating from physical to digital locations, which does enable disaggregation of workloads, outsourcing to specialists, and the like. R.H. Coase had the right formula for the limiting factor here. It is transaction costs. At some point outsourcing imposes more cost, risk, or latency than doing it yourself—that’s where the new inside/outside boundary reestablishes itself.

Morris: From Victor Mayer-Schonberger and Kenneth Cukier’s Big Data: “What we are able to collect and process will always be just a tiny fraction of the information that exists in the world. It can only be a simulacrum of reality, like the shadows on the wall of Plato’s cave. Because we can never have perfect information, our predictions are inherently fallible.”

Moore: Prediction is not really the goal. Fast adaptation is the goal. Darwinism does not require you to know in advance. It requires you to respond in a flash.

Morris: From Eric Siegel’s Predictive Analytics: “Prediction seems to defy a Law of Nature: You cannot see the future because it isn’t here yet. We find a work-around by building machines that learn from experience. It’s the regimented discipline of using what we do know — in the form of data — to place increasingly odds on what’s coming next. We blend the best of math and technology, systematically tweaking until our scientific hearts are content to derive a system that peers through the previously impenetrable barrier between today and tomorrow.”

Moore: Right idea, but the last sentence overstates the outcome. If Eric were actually correct, a reasonable number of money managers would outperform the stock market indexes. But they do not. Once again analytics do not predict. They enable quick recognition of something that was not anticipated but has in fact occurred.

Morris: From Thomas Davenport’s big data @ work: “The greatest barrier to analysis is that we first have to impose structure on big data; most of those 2.8 zettabytes are not currently in row-and-column formats. We have a huge task ahead of us — to start structuring the data, analyzing it, and getting value from it. Not all of it will be useful — one study [‘Big Data, Bigger Digital Shadows, and Biggest Growth in the Far East,’ conducted by John Gantz and David Reinsel in 2012] estimates about 25 percent has potential value — but whatever the number, we are only scratching the surface of what’s possible.”

Moore: I think even quantifying the amount of data is a mistake. I think you want to start with decisions or bets you want to make, and then work backward from objectives and achievables to information that could improve your odds, and then to mechanisms that might generate that information in a timely manner. You would get to the data eventually, but it is never really about the data. Rather, as I have already suggested, what you do with the data.
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To read the complete interview, please click here.

Geoff cordially invites you to check out the resources at these websites:

His website



Saturday, December 13, 2014 Posted by | Bob's blog entries | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment


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