First Friday Book Synopsis

"…like CliffNotes on steroids…"

Henry Chesbrough: A second interview by Bob Morris


Henry Chesbrough

Chesbrough is Adjunct Professor, Haas School of Business at the University of California, Berkeley, and Executive Director of its Center for Open Innovation. His landmark book Open Innovation: The New Imperative for Creating and Profiting from Technology (2003) articulated a new paradigm for industrial research and development. His more recent book, Open Business Models: How to Thrive in the New Innovation Landscape (2006), carries the open approach a step further, arguing that business models themselves need to become more open.  Innovating business models requires open technology strategies, but also new approaches to managing intellectual property as well.  His most recent book, Open Services Innovation: Open Services Innovation: Rethinking Your Business to Grow and Compete in a New Era (2011) explores innovation in a services context.  He earned a BA degree in economics from Yale University, an MBA degree from Stanford University, and a PhD degree in business administration from UC Berkeley.

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Morris: Before discussing your latest book, Open Services Innovation, a few general questions. A great deal has happened in the global business world since our last conversation three years ago. In your opinion, which change during that recent period is the most significant and why do you think so?

Chesbrough: In the past three years, there has developed a short-term crisis in both the EU and the US, as each region wrestles with serious issues that are somewhat different.  But these issues have had a dampening effect on innovation in both regions, as companies manage through a turbulent and uncertain environment.  There is an unfortunate tendency to treat innovation as a luxury good, something to welcome in good times, but cut back on in tough times.

Meanwhile, there is a longer term and to my mind even more important trend, which is the rise of the “emerged markets”.  China, India and Brazil of course, but also Turkey, Latin American, South Africa, places that many innovation scholars gave little attention to in the past.  There is no question that in this rebalanced world innovation is going to become a global phenomenon to manage and to study.

Morris: As I survey the ever-increasing number of new technologies that appear, I am reminded of Goethe’s poem Der Zauberlehrling (The Sorcerer’s Apprentice) written in 1797. Do you share my concern that at least a few of the new disruptive technologies have taken on a life of their own?

Chesbrough: The statistic that blew me away the most was one I read on Henry Blodget’s Business Insider website.  It showed that people are spending fully half of their online time on the Net on Facebook, and the other half on everything else there is on the Web.  I don’t know if that’s true, but if so it is truly mind-blowing.  I know that it is not true of me or my wife, and that it is true of both of my daughters.  I don’t know what a world built around Facebook will look like in the future.  It makes me feel like I am on my way to becoming obsolete.

Morris: Howard Gardner’s extensive research on multiple intelligences suggests this next question: Can an “open” mindset be developed? If so, how?

Chesbrough: Yes I believe it can be developed.  While this is not an area that I have studied rigorously, I know from my own life experience that at the root of whatever open mindset I have is a basic humility that recognizes my own limitations and numerous areas of ignorance.  Being open for me means not being paralyzed by those shortcomings, but using my realization of them as a spur to learn and to grow. When I must function as an expert, ironically that often blocks my own growth.  When I get to ask questions, wonder why something is happening or how it works, I can feel myself being stretched ever so slightly in new directions.  Happily, being a teacher and having children both force me into stretching myself with some frequency!

Morris: In The Opposable Mind, Roger Martin has much of value to say about integrative thinking. As he explains, it is “the predisposition and the capacity to hold two [or more] diametrically opposed ideas” in one’s head at the same time and then “without panicking or simply settling for one alternative or the other,” be able to “produce a synthesis that is superior to either opposing idea.” Integrative thinking requires a “discipline of consideration and synthesis [that] is the hallmark of exceptional businesses and those who lead them.” This seems to describe the open mindset you have endorsed for years. Am I correct?

Chesbrough: Yes, you are.  I define open innovation to be a process whereby companies utilize external knowledge more extensively in their own innovation processes, and allow others to utilize the unused ideas they have outside.  Open innovation thinking is an “and”, not an “or”.  It is NOT an argument that calls for outsourcing all of one’s R&D.  Rather, it is a call to integrate internal and external in the integrative manner that Martin articulates.

Morris: What seem to be the most common – and troublesome – misconceptions about open innovation and open business models?

Chesbrough: Many conflate open innovation with open source software, or open source development methodologies.  While both concepts share an appreciation for open, participatory engagement of many people in the innovation process, open innovation explicitly incorporates the business model as a core part of the innovation process.  Many adherents in open source explicitly eschew business models as irrelevant or even evil.  Yet many observers of open source software itself would acknowledge that many businesses have built “open source business models” that helped them achieve greater impact and scale than they otherwise would have done.  To me, this is both a good thing (it is good that these open source tools and products have expanded greatly) and a statement of how the world works.  It also raises the possibility that adherents of open source sometimes overlook, that some business models could pervert the good intentions of open source and harness all that community contribution for nefarious purposes.  This was a concern when Microsoft tried to fork Java some years back by offering a version that only ran on Windows.  Oracle seems to be testing the waters lately with Java as they file suits against Google and others who utilize open source.

Morris: What, in fact, is true?

Chesbrough: Some of the most successful open source projects these days are led by large companies, who are investing significant time and effort into the open source projects because it directly or indirectly benefits their own business models (not because they have become altruistic).  Contributors and volunteers need to pay attention to who is driving the agenda for these projects, so that they remain aware of how their hard work is being used in the world.

Morris: Now please shift your attention to Open Services Innovation. When and why did you decide to write it?

Chesbrough: Well, I focused my previous books on innovating new products and new technologies.  But I often got questions about “what do I do if I am a service firm”?  I realized that we know a lot about how to innovate new products, new processes, and new technologies, but know far less about how to innovate in services.  Yet this is the majority of economic activity for most OECD countries.  So there was a gap to fill.  And there is good academic work going on in services innovation research, but little of that has been translated to a general audience.  That is part of what I tried to do in Open Services Innovation.

What gives this topic special importance is the rise of China and other emerging economies, those that are now innovating as well as manufacturing the innovations of others.  There is a risk of a commodity trap, where firms that focus exclusively on developing better products and technologies run the real risk of failing to differentiate their offerings sufficiently, and instead become commoditized by innovative entrants from the emerging parts of the world.

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To read the complete interview, please click here.

Henry Chesbrough invites you to check out the wealth of resources at these websites

http://www.openinnovation.net/

http://openinnovation.berkeley.edu/

Twitter:  @OpenInno
 

 


Tuesday, July 12, 2011 Posted by | Bob's blog entries | , , , , , , , , , , , , , , , , , | Leave a comment

Dan Roam, Part 1: An interview by Bob Morris

“I believe that any problem can be solved with a picture. And that anybody can draw it.”

Dan Roam is the author of two international bestsellers, The Back of the Napkin: Solving Problems and Selling Ideas with Pictures and Unfolding the Napkin: The Hands-On Method for Solving Complex Problems with Simple Pictures, both published by Portfolio Trade, a Penguin imprint.  The former was selected as BusinessWeek and Fast Company’s best innovation book of the year, and Amazon’s #5 selling business book. The Back of the Napkin has been published in 25 languages and is a bestseller in Japan, South Korea, and China. His latest book is Blah-Blah-Blah: What To Do When Words Don’t Work, also published by Portfolio/Penguin Group (November, 2011).

Roam has helped leaders at Microsoft, eBay, Google, Wal-Mart, Boeing, Lucas Film, Gap, Kraft, Stanford University, The MIT Sloan School of Management, the US Navy, and the United States Senate solve complex problems through visual thinking. Dan and his whiteboard have been featured on CNN, MSNBC, ABC News, Fox News, and NPR. His visual explanation of American health care was selected by Business Week as “The World’s Best Presentation of 2009″. This inspired the White House Office of Communications to invite him in for a discussion on visual problem solving.

Roam is the founder of Digital Roam Inc, a management consulting company that helps business executives solve complex problems through visual thinking. Through lectures, workshops, books, and hands-on projects with many of the world’s most influential organizations, He as helped teams learn to solve complex problems by relearning how to see after discovering the power of pictures as a business problem-solving tool in the 1990′s when he founded the first marketing communications company in what was then the Soviet Union. With no Russian language skills, he quickly realized that his business pictures transcended the language barrier. Since that eye-opening experience, Dan has been fine-tuning the visual thinking tools he introduces in his books.

Roam received two degrees at the University of California, Santa Cruz: fine art and biology. This combination of art and science kicked off Dan’s cross-disciplinary approach to problem solving. Dan is a licensed pilot, a skill that demands constant practice in understanding complex visual information displays. He has applied his business-oriented visual thinking skills while working in Switzerland, Russia, Thailand, France, Holland, and the US. He lives in San Francisco.

Note: Here is an excerpt from my first interview of Dan Roam. To read the complete interview, please click here. There will be a second interview in conjunction with the publication of his new book, Blah-Blah-Blah, in November.

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Morris: Before discussing any of your specific books, a few general questions. First, to what extent (if any) have you had any formal training in the creative arts such as painting, drawing, and sculpting?

Roam: I have drawn all my life. My earliest memories are of drawing pictures on my parents’ kitchen table. In school I attended the same basic art classes as everyone else. But while I showed talent and loved drawing, I didn’t like the way art was taught. It was too wishy-washy; too much about “being creative” and “expressing myself” at the expense of actually learning anything.

By the time I entered the University of California at Santa Cruz, I had no interest in pursuing art. I signed up for the Pre-Med track and studied biology, chemistry, physics, and environmental studies. But in my junior year at the university, two events occurred which were to have a profound impact on my perception of “creativity.”

The first was that I unexpectedly fell in love with organic chemistry; it turned out to be completely visual. Remember those plastic “ball and stick” models of molecules? I spent hours building shapes with them, and excelled at chemistry. The second was that I discovered that “art” could be taught as a rigorous discipline with rules and tools. Those rules had nothing to do with applying paint; they were about how people THINK — and that was exactly what I was looking for. Before long, I realized that painting was every bit as intellectually challenging as science and that the same fundamental ways of thinking applied to both.

In the end, I extended my undergraduate career by another year so that I could complete degrees in both biology and painting. I never went on to medical school, instead finding my call helping businesspeople see for themselves the connections between planning, science, finance, communications, and “art”.

Morris: I have a large family and Pictionary is one of our favorite games to play. One son is a highly-renowned professional illustrator. (He created the illustration for the homepage of my website.) Whenever we play, his team never wins because his drawings are elaborate and consume so much time. I thought about that as I read your two books. Chip and Dan Heath assert that the “stickiest” ideas are always the simplest. Why is it also true that, when communicating ideas, the simplest drawings (i.e. those involving circles, squares, arrows, and stick figures) are most effective?

Roam: Without a doubt, the simplest, fastest drawings are the most effective for communicating an idea. I understand well your son’s Pictionary challenge; I suffered the same fate as I always tried to make my drawings “better”, inevitably destroying their essential character along the way. Now I realize that I’ve actually spent the last thirty years learning how to “draw badly really well.”

Morris: With all due respect to your response to the previous question, I think one of the greatest benefits of your approach to communication is that it requires people to have a solid, crystal clear understanding of what they want to communicate and how they plan to organize their ideas before they begin to draw. Is that a fair assessment?

Roam: I believe that we do not truly know something until we can clearly explain it to someone else – and the younger the person we can explain it to, the better we know it. I’m not alone in this belief, of course. Einstein himself said, “All physical theories, their mathematical expressions notwithstanding, ought to lend themselves to so simple a description that even a child could understand them.” Since an effective picture of an idea must by definition account for the essentials, being able to draw a simple picture of your idea is just about the best test I can think of to prove that you really do understand it yourself. It’s far harder to fake a simple picture than it is a wordy essay. The picture you create is your mind standing there for all to see, unprotected by verbiage. If you can’t draw it, you don’t get it.

Morris: The creative and performing arts are often referred to as “international languages.” Having lived and worked in so many different countries, have you found that to be true?

Roam: The creative and performing arts clearly transcend language and cultural barriers, which is what makes painting and music in particular so enchanting regardless of origin. But the cognitive power of what we call “art” goes far deeper than that. When I first moved to Moscow in 1990, it was still the days of the Soviet Union. Here I suddenly found myself in a strange land, surrounded by people whose language I didn’t understand – and I was supposed to be running an advertising agency! That was crazy: in those days it was still illegal to earn a profit. In that environment, nobody – not my colleagues, employees, or clients – had a clue what “business planning” was. It was drawings that saved the day. I found that if I could map out an idea graphically (what is “profit,” for example, and why it might be a good thing), then we could begin to understand each other.

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To read the complete interview, please click here.

You cordially invited to visit these websites:

http://www.thebackofthenapkin.com/about_me.php

http://www.thebackofthenapkin.com/botn.ph

http://www.digitalroam.com/

I also urge you to check out these videos:

http://www.youtube.com/watch?v=ri8E8cNf2Bw

http://www.youtube.com/watch?v=kuA_yz7aToO

Sunday, July 10, 2011 Posted by | Bob's blog entries | , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

The five co-authors of Change Anything: An interview by Bob Morris

Kerry Patterson, Joseph Grenny, David Maxfield, Ron McMillan, and Al Switzler are assoviates in the VitalSmarts firm, “An innovator in corporate training and organizational performance, VitalSmarts helps teams and organizations achieve the results they care about most.” They have also collaborated on four business bestsellers: Crucial Conversations, Crucial Confrontations, Influencer, and most recently Change Anything.

Here are mini-bios:

Kerry Patterson is a co-founder of VitalSmarts who has co-authored three New York Times bestselling books as well as designed the company’s line of award-winning training programs. He received the prestigious 2004 BYU Marriott School of Management Dyer Award for outstanding contribution in organizational behavior. He also did his doctoral work in organizational behavior at Stanford University.

 

Joseph Grenny is an acclaimed keynote speaker, three-time New York Times bestselling author, and co-founder of VitalSmarts. A consultant to the Fortune 500, he has designed and implemented major corporate change initiatives on every major continent for the past 20 years.

 

 

David Maxfield is a leading researcher and frequent conference speaker on topics ranging from dialogue skills to performance improvement. The author of the immediate New York Times bestseller, Influencer he did doctoral work in psychology at Stanford University, where he studied personality theory and interpersonal-skill development.

 

 

Ron McMillan is a three-time New York Times bestselling author and a sought-after speaker and leadership consultant. As the co-founder of VitalSmarts, he has consulted with leaders ranging from first-level managers to corporate executives on topics such as leadership and team development.

 

 

Al Switzler is a renowned consultant and world-class speaker who has directed training and management initiatives with dozens of Fortune 500 companies worldwide. In addition to his consulting work, he co-founded VitalSmarts and authored three immediate New York Times bestselling books.

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Morris: Before discussing Change Anything, a few general questions. When and why did you and your co-founders start VitalSmarts?

Ron McMillan: My co-founders and I came together in 1990 – so we’ve been together over 20 years. Our mission at VitalSmarts is to increase humanity’s capacity to change for good. We believe that practical application of good social science can enable organizations to be substantially more effective at adding value to the world, can make workplaces more humane, and can empower individuals to achieve much more of what they want from life. That’s what VitalSmarts is trying to accomplish.

Morris: Please explain the process by which you began to collaborate on a series of four books. Also, how has the division of labor been determined?

Kerry Patterson: Like most authors, we didn’t start as authors. In our case, we initially formed a partnership aimed at delivering corporate consulting and training offerings.

After forming the team and developing our training products we finally decided to write a book. As you might guess, five authors offers the blessings of synergy and division of task, as well as the possible nightmare of not being able to agree on the content or create a common voice.

Here’s how we encourage the one and reduce the other. After we’ve studied and developed the content of our training products, we sit down and create a detailed writing outline for the upcoming book. We then assign out chapters, write them, pass them back and forth, give them an overall edit to ensure voice continuity, and send the first draft to our editors. We then make more changes, pass it around again, retouch for voice and continue this process until we decide the product is finished.

Morris: For those who have not yet read Change Anything, what is “the new science of personal success”? In which respects is it scientific?

David Maxfield: I lead our research team at VitalSmarts and the Change Anything Labs. We work with the very best of current social scientists – people like Albert Bandura, who was my advisor from Stanford, Dean Karlan at Yale, Toni Yancey at UCLA medical school, Brian Wansink from Cornell, and many others. Before writing Change Anything, we studied the change attempts of more than 5,000 people—focusing on those we label “Changers”. These Changers are individuals who once faced enormous personal challenges, but wrestled them to the ground and have remained successful for at least three years. From our study of the Changers and decades of social science research, we discovered willpower has very little to do with one’s ability to change. There are actually six sources of influence that shape our actions and those who develop strategies within all six sources are ten times more likely to change.

Morris: Were there any head-snapping revelations while completing research and then the manuscript? Please explain.

David Maxfield: People often talk about how long it takes to change. A head-snapping revelation we discovered is that “time” is not the variable that matters. Change is not about time; it’s about the number of influences working for or against you. Imagine you are on the losing side of a tug of war—if it’s just you and your willpower on one side and all six sources of influence lined up against you, then more time won’t help.

On the positive side, once you’ve taken the blinders off, seen the influences that are currently keeping you stuck, and brought all six sources of influence over to your side, then dramatic changes happen quickly.

Morris: What is the “Willpower Trap”? How best to avoid it or escape from it?

Al Switzler: The Willpower Trap is the false assumption that our ability to make good choices stems from nothing more than our willpower. As soon as our willpower runs thin, we shop trying to change altogether. We have a lot less control over our behavior than we think we do; however, we do have great control over the things that influence us. Successful changers spend less time trying to “gut it out” and more time wisely aligning the six sources of influence that control their behavior.

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To read the complete interview, please click here.

You are cordially invited to check out the resources at these websites:

VitalSmarts

http://www.vitalsmarts.com/

Joseph Grenny

http://www.josephgrenny.com/

David Maxfield

http://www.davidmaxfield.com/

Ron McMillan

http://www.ronmcmillan.net/

Al Switzler

http://www.alswitzler.com/

Thursday, June 9, 2011 Posted by | Bob's blog entries | , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Peter Sims: An interview by Bob Morris

Peter Sims (Photo: Mona T. Brooks)

Peter Sims is an author, speaker, and entrepreneur.  He is the author of is Little Bets: How Breakthrough Ideas Emerge from Small Discoveries, from Simon & Schuster: Free Press.  Previously, he was the co-author with Bill George of True North,  the Wall Street Journal and BusinessWeek best-selling book, and he worked in venture capital with Summit Partners, a leading investment company, including as part of the team that established the firm’s London Office.

His work has appeared in Harvard Business Review, Tech Crunch, and Fortune and he’s a contributor to the Reuters, Fast Company, and Harvard Business Review blogs.  He received an M.B.A. from Stanford Business School where he and several classmates established a popular course on leadership and has had a long collaboration with faculty at Stanford’s Institute of Design (the d.school).  He frequently speaks or advises at corporations, associations, and universities, including Google, Eli Lilly, Cisco, ConAgra, Pixar, and Stanford University.

He lives in San Francisco and his great-great-great grandfather, Jacob Gundlach, founded Gundlach Bundschu (GunBun) in Sonoma, California’s oldest family-owned winery, which is run today by his cousins who, unlike Peter, know a lot about wine.

*     *     *

Morris: Before discussing any if your books, a few general questions. First, when and why did you begin your association with Stanford’s Institute of Design (the d.school)?

Sims:  I was introduced to George Kembel, the cofounder and Executive Director of the d.school in 2002.  George became my design thinking teacher and mentor, while I shared about my experiences as an entrepreneur, investor, and student of leadership and entrepreneurship with George and his d.school colleagues.  Understanding design methods literally changed the way I think; all of a sudden, I was immensely more creative, and the key insight I had was that those methods overlapped with the way entrepreneurs worked in the unknown.  That became the basis for Little Bets.

Morris: What business lessons have you since learned from that association that have direct relevance to successful change initiatives in almost any organization, whatever its size and nature may be? For example, is it possible to design initiatives that will avoid or overcome cultural resistance?

Sims: There are a few principles from design that will influence the business world for years to come.  The first is the ability to do rapid, low-cost prototyping at the early stages of developing ideas.  We never learned that in business school, yet planning in PowerPoint and Excel is often a terrible waste of time when the answers exist outside the office, in the unarticulated needs of potential users of that idea.  That’s where ethnographic observation and need-finding techniques from design, the kind used by anthropologists, play an important role.  People in business are surprisingly bad at truly understanding their customers’ needs.  Market research doesn’t work for identifying unarticulated needs; just ask Steve Jobs who often says, “People don’t know what they want if they haven’t seen it.”

Morris: Thomas Edison once observed, “Vision without execution is hallucination.” Here’s my question: Even after having designed the best strategy, what should leaders do if there is no buy-in?

Sims: I’ve experienced this; it happens all the time.  If there is no buy-in, leaders should wonder if they are hallucinating.  That’s one reason I’m very happy to see the rise of a number of schools of thought featured in Little Bets, such as design, lean startups, and counterinsurgency that advocate failing quickly to learn fast, in order to test assumptions and build on gains that work.  We’re living in an era that rewards bottom up innovation, yet top-down thinking is still the dominant management norm, an outgrowth of industrial management.  The world is far too uncertain for top-down management – just ask Generals in the Army as they’ve learned in the Middle East, where they don’t know the problems they’ll encounter each day.  They have to be able to rapidly adapt.

Morris: In your opinion, are investment opportunities for venture capital firms better, worse, or about the same today as they were when you were associated with Summit Partners? Please explain.

Sims: The market is far more competitive and saturated with capital today than it was several years ago.  As the investment hold periods get longer, and the return profiles fall,  venture capital as an industry is going through a recalibration, where name brand firms will make it, while a lot of dumb money will go away.  In addition, the social media valuations we see today, such as Linked In at 30+ times revenue, or Facebook valued the way it is indicates a bubble.  The only question I cannot answer is how long that bubble will last.

Morris: Now please shift your attention to True North, a book you co-authored with Bill George. For those who have not as yet read it, what is  “true north” and what is its significance?

Sims: Your True North represents your most deeply held values and aspirations.

Morris: What are the defining characteristics of “authentic leadership”?

Sims: Bill George defined authentic leadership along five dimensions in his book Authentic Leadership, most importantly leading from an ethical set of values, and a sense of purpose.

Morris: Throughout history, who do you think offer the best examples of an “authentic” leader? Please explain.

Sims: Abraham Lincoln, Nelson Mandela, Jane Adams, Bill Hewlett and Dave Packard.  Oprah and Pixar’s Ed Catmull is a great modern day example, as are the leaders Jim Collins profiles as Level 5 Leaders in Good to Great.

Morris: Were Hitler and Stalin authentic leaders? Please explain.

Sims: No, because they weren’t ethical.

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To read the complete interview, please click here.

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

http://petersims.com/

http://twitter.com/#!/petersims

Saturday, May 28, 2011 Posted by | Bob's blog entries | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Leader Fatigue: Making the Difficult Choice to Move On

Jeffrey Pfeffer

Here is an excerpt from an article written by Jeffrey Pfeffer for Harvard Business Review‘s “The Conversation” series. To read the complete article, check out the wealth of free resources, and sign up for a subscription to HBR email alerts, please click here.

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Recently  when Cathleen Black resigned after just three months as New York City’s schools Chancellor, many influential New Yorkers decided that the way to analyze the event was as evidence of their mayor’s stumbling.

That’s quite a turn of interpretation for a man who, for several years, seemed to be able to do no wrong. Not that long ago, Michael Bloomberg was being talked about widely as a post-partisan presidential possibility. The fact that the bloom is now off the rose, and constituents are said to be tiring of him, offers an important lesson in power for all of us.

Let’s start by observing the obvious: that anyone who wields great power is bound to rub some people the wrong way, and those disaffected people accumulate over time. They also tend to have longer memories. As Dan Julius, a senior academic administrator now in the University of Alaska system told me years ago, “the things you did that upset people and create enmity live on much longer than what you did that people liked and created supporters.” Thus, the goodwill Bloomberg earned during the successful tenure of former schools chancellor Joel Klein, and for the many things he has done to make New York more economically vibrant and livable, is rapidly degrading. People are already forgetting how he took on budget problems inherited from his predecessor, Rudy Giuliani, and helped the city successfully live within its means. Accomplishments seem to have a shorter half-life — at least in people’s memories — than animosities.
This is one reason that leaders need to be “repotted” after a long tenure, believed Ernie Arbuckle, the Stanford Business School dean who did much to put the school on its successful trajectory. He noted that it becomes harder to get things done as resentments build and people get tired of you. Arbuckle stayed as dean for 10 years, then left to become chairman of the board of Wells Fargo for ten years, and after that, chairman of Saga Foods, also for ten years. (It will not surprise you to hear that he thought the right moment to “repot” was after ten years.) But he didn’t see it as only a problem of perception. He also thought that, after a while in a given position, one’s ability to see new challenges and opportunities clearly diminishes.

The problem is that most people, having attained a position of power, are reluctant to leave it and venture into new territory. Often, having racked up accomplishments and seen them celebrated, they are fired up by the possibility that, with a little more time, they could do more. In some cases, they cling to office because their age suggests they will not go on to scale any greater heights. Yale professor Jeffrey Sonnenfeld described this phenomenon in his decades-old book, The Hero’s Farewell.

In it Sonnenfeld noted that while some aging CEOs exited gracefully while they still enjoyed wide acclaim, many hung on too long, reluctant to face their own mortality. There was William Paley, the titan of CBS, who challenged his biographer by asking just why he had to die. And there was Armand Hammer, CEO of Occidental Petroleum, who put in place a long-term incentive plan for himself with a ten-year payout horizon — when he was in his 90s. Few executives or political leaders are as wise as UCLA’s legendary basketball coach, John Wooden, who retired after winning his tenth championship — quitting while he was on top.

[To read the complete article, please click here.]

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Jeffrey Pfeffer is the Thomas D. Dee II Professor of Organizational Behavior at the Graduate School of Business, Stanford University, where he has taught since 1979. His newest book, from HarperBusiness, is Power: Why Some People Have It and Others Don’t.


Saturday, April 16, 2011 Posted by | Bob's blog entries | , , , , , , , , , , , , , , , , , , , , | Leave a comment

The Happiness Advantage: A book review by Bob Morris

The Happiness Advantage: The Seven Principles of Positive Psychology That Fuel Success and Performance at Work
Shawn Achor
Crown Business/Random House (2010)

The power of positive psychology in all dimensions of human experience

Having already read Tal Ben-Shahar’s The Pursuit of Perfect, Happier, and Even Happier as well as Jessica Pryce-Jones’ Happiness at Work: Maximizing Your Psychological Capital for Success, and having absorbed and digested what their authors share, I was curious to know what (if anything) new Shawn Achor could contribute to the on-going multi-logue and how well the material is organized and presented. My rating correctly indicates what I think he has accomplished. Others have their own reasons for admiring this book. Here are two of mine.

First, Achor introduces seven principles that serve as the foundation of what he characterizes as “The Happiness Advantage”: positive brains have a significant biological advantage over brains that are neutral and an even more substantial biological advantage over brains that are negative. In fact, The Happiness Advantage” also serves as the first principle, followed by

2. The Fulcrum and the Lever: How a positive mindset (fulcrum) can leverage power to achieve success (however defined)

3. The Tetris Effect: How that same positive mindset can recognize can recognize patterns of possibility that leads to possibilities that would otherwise be missed

4. Falling Up: When experiencing a major crisis or encountering a major threat, how selecting the right mental “path” will reveal the best course of action to take

5. The Zorro Circle: When coping with crisis or threat, how to control emotions “by focusing first on small, manageable goals, and then gradually expanding our circle to achieve progressively bigger ones”

6. The 20-Second Rule: When willpower weakens or fails, how to make small adjustments of energy to reroute the path of least resistance with better habits and renewed willpower.

7. The Social Investment: When challenged or threatened, “how to invest more in one of the greatest predictors of success and excellence – our social network support.”

These principles guide and inform Achor‘s narrative as it proceeds to Part Three when he shares his suggestions about how to spread “the happiness advantage” at work, at home, and beyond.

I also commend Achor on his brilliant analysis of situations with which almost all of his readers can readily identify and then on his equally brilliant explanation of how to take full advantage of such situations by viewing them as opportunities rather than as threats. Almost immediately (in the Introduction, he establishes and then sustain a direct, personal, indeed conversational rapport with his reader. The tone of the narrative is enriched by a spirit I characterize as “There will definitely be some questions to answer and problems to solve but don’t worry. Hey, we’re in it together.” Presumably the rapport that Achor establishes with his reader very closely resembles the rapport he established with Harvard students years ago. That is great news for readers, especially for those who in greatest need of what this book offers.

Almost 20 years ago in an commencement speech at Stanford and then in an article published by Harvard Business Review, Teresa Amabile offered the best career advice I ever heard: Love what you do and do what you love. Perhaps the greatest challenge for any company is to make certain that those who supervise its workers get what they do best and enjoy most in alignment with achieving the company’s goals. Recent research studies by highly reputable firms such as Gallup and TowersWatson reveal that happy workers (i.e. who love what they do and do what they love) work harder and smarter, completing their work “faster, better, cheaper.”

For business leaders in organizations of which that cannot be said now, Shawn Achor’s book is a “must read.”


Tuesday, April 12, 2011 Posted by | Bob's blog entries | , , , , , , , , , , , , , , , , , , , , | Leave a comment

Guy Kawasaki: An interview by Bob Morris

Guy Kawasaki

After having earned an undergraduate degree at Stanford, Kawasaki embarked on a career in business (counting diamonds for a fine-jewelry manufacturer called Nova Stylings) while at work on an MBA degree at UCLA. (He had already earned an undergraduate degree at Stanford.) Kawasaki later went to work for an educational software company called EduWare Services. However, Peachtree Software acquired the company and wanted him to move to Atlanta. “I don’t think so. I can’t live in a city where people call sushi ‘bait.’ Luckily, my Stanford roommate, Mike Boich, got me a job at Apple. When I saw what a Macintosh could do, the clouds parted and the angels started singing. For four years I evangelized Macintosh to software and hardware developers and led the charge against world-wide domination by IBM.” By now, he was accumulating a wealth of real-world experience in leadership and management and well as knowledge about marketing, sales, finance, strategic planning, problem-solving, resource allocation, and customer relations. The scope and depth of his interests are indicated in the books he has published thus far. They include his first, The Mackintosh Way, followed by Selling the Dream, The Computer Curmudgeon, Hindsights, How to Drive Your Competition Crazy, Rules for Revolutionaries, The Art of the Start, Reality Check, and most recently, Enchantment: The Art of Changing Hearts, Minds, and Actions.

Morris: Other than family members, who have had the greatest impact on your personal development?

Kawasaki: I cannot exclude my family from this answer. The people who have had the most impact on my personal development are my wife and my first real boss, Marty Gruber. My wife holds me to the highest ethical, moral, and social standards. Marty Gruber was my boss when I worked in the jewelry business, and he taught me how to trust, be trusted, and how to sell.

Morris: Of all the books that you have published thus far, which was the most difficult to write? Why?

Kawasaki: The most difficult book to write should have been the easiest: Hindsights. It was a collection of interviews of people’s hindsights in life. I thought it would be a matter of turning on a tape recorder and then getting the tapes transcribed. It was a monumental effort to find the right people, get to them, interview them, transcribe the interview, and then edit it.

Morris: As you reflect upon your association with Apple, what has proven to be the most valuable business lessons you learned from it?

Kawasaki: I learned two valuable lessons at Apple. First, lo and behold, the best product doesn’t always win — Windows, to this day, vastly outsells Macintosh. I naively thought that the best product should and would win.

Second, I learned that if you enchant people with what you do, they will believe in you and provide an unbelievable amount of help. Apple would not have survived without its user groups, voluntary evangelists, and believers. They moved heaven and earth for Apple.

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To read the complete interview, please click here.

Sunday, April 3, 2011 Posted by | Bob's blog entries | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Do You Have a Growth Mindset?

Brown and Hagel III

Here is an excerpt from an article written by John Hagel III and John Seely Brown for the Harvard Business Review blog. To read the complete article, check out other articles and resources, and/or sign up for a free subscription to Harvard Business Review’s Daily Alerts, please click here.

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Mindset is everything. If that statement seems too strong, consider that we bring these basic assumptions to every decision and action we make. Left unexamined, they may unnecessarily restrict us or lead us in the wrong direction altogether. Perception may not truly be reality, but when it comes to how we approach challenges and opportunities, mindset determines the world we encounter and possibilities we apprehend. Achieving the power of pull requires us to make our assumptions explicit and examine them in different contexts — testing, challenging and refining.

As we began to discuss in our last post, adapting to the Big Shift and harnessing the potential of pull requires embracing a new mindset. This posting will focus on another key set of assumptions.

In her 2006 book, Mindset: The New Psychology of Success, Stanford Professor Carol Dweck distinguishes two extremes of the mindsets people tend to have about their basic qualities:

In a fixed mindset, “your qualities are carved in stone.” Whatever skills, talents, and capabilities you have are predetermined and finite. Whatever you lack, you will continue to lack. This fixed mindset applies not just to your own qualities, but to the qualities of others.

In a growth mindset, “your basic qualities are things you can cultivate through your efforts…everyone can change and grow through application and experience.” Qualities like intelligence are a starting point, but success comes as a result of effort, learning, and persistence.

The distinction between fixed and growth mindsets has tremendous implications — as individuals and organizations — for how we address the growing pressures around us.

The Mindset Paradox: The greatest threat to success is avoiding failure. One of the most provocative aspects of Dweck’s work is what it says about our approach to challenges. In a fixed mindset, you avoid challenging situations that might lead to failure because success depends upon protecting and promoting your set of fixed qualities and concealing your deficiencies. If you do fail, you focus on rationalizing the failure rather than learning from it and developing your capabilities. With a growth mindset, you focus on learning and development rather than failure and actively pursue the types of challenges that will likely lead to both learning and failure. This sounds a lot like the questing disposition we have discussed previously.

Mindset profoundly shapes key business practices:

Business Ecosystems. If you have a fixed mindset, you believe that there are a finite set of smart people and valuable resources outside your company. The challenge is how to identify, connect with and mobilize them to deliver more value to the marketplace — static resources tied together in a static ecosystem. The ecosystem benefits from the network effects of adding more and more participants because more diverse capabilities are connected and accessible.

If you believe that both the resources and the ecosystem itself are dynamic, then the role of the ecosystem is not just to connect and mobilize existing resources but to build relationships that help all participants get better faster. This leads to a more powerful form of increasing returns — not just network effects but new mechanisms to accelerate learning and performance improvement — as each participant learns faster as more and more participants join the ecosystem.

Talent Management. A fixed mindset leads you to focus almost exclusively on attracting and retaining talent. The assumption: each person’s skills and capabilities are set. You will tend to devote too many resources to those with a perceived stock of knowledge and overlook (and eventually lose) employees with limited stocks but great learning potential. Worse, because you underestimate the value of learning and development, you won’t likely get the most out of those employees you do value.

With a growth mindset, you understand that individual and organizational capabilities can be cultivated and developed, to improve performance and to expand in new directions. You focus more on talent development, creating work environments and practices that enable employees, regardless of work classification, to develop new skills and to learn by working with others, by problem-solving and experimentation.

Relationship-building. A fixed mindset fosters a zero-sum view of the world: if you win, I lose. With a fixed and finite set of value, the only question is how to allocate it. This perspective fosters conflict and mistrust and, not surprisingly, relationships governed by relative power, tend to be transactional and are rigidly defined to protect each party’s share of the value.

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To read the complete article, please click here.

John Hagel III and John Seely Brown are co-chairmen of the Deloitte LLP Center for the Edge, and have written several books focused on technology and innovation. Their latest is The Power of Pull: How Small Moves, Smartly Made, Can Set Big Things in Motion, co-authored with Lang Davison and published by Basic Books (2010).

Tuesday, February 15, 2011 Posted by | Bob's blog entries | , , , , , , , , , , , , , , , , , | 1 Comment

The Three Threats to Creativity

Teresa Amabile

Here is an excerpt from an article written by Teresa Amabile for the Harvard Business Review blog. To read the complete article, check out other articles and resources, and/or sign up for a free subscription to Harvard Business Review’s Daily Alerts, please click here.

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Creativity is under threat. It happens whenever and wherever there’s a squeeze on the ingredients of creativity, and it’s happening in many businesses today. According to the Labor Department’s most recent stats, productivity is up. But stretching fewer employees to cover ever more work in our job-starved recovery is no way to run the future. Without the creativity that produces new and valuable ideas, innovation — the successful implementation of new ideas — withers and dies. Creativity depends on the right people working in the right environment. Too often these days, the people come ill-equipped, and their work environments stink.

A recent story about the 40th anniversary of Xerox PARC

http://kara.allthingsd.com/20101008/check-out-parcs-40th-anniversary-doings/

stirred my memories of how the creativity ingredients overflowed at that place, in that time. PARC was a first light in the dawning of Silicon Valley.

By 1973, when I moved there, PARC researchers had invented the first user-friendly computer, laser printing, object-oriented programming, a personal workstation, and the foundation of the Ethernet. By the time I left Palo Alto in 1977, they had developed the first graphical user interface (GUI) with icons, pop-up menus, overlapping windows, and the basics of point-and-click screen navigation. At this moment, you are almost certainly using something that sprang from the blossoming creativity at Xerox PARC in the 1970s.
We all wince at the thought of how Xerox utterly failed to innovate on PARC’s inventions, allowing Apple and Microsoft to run away with most of them. But there’s no denying how world-changing those inventions were. The organization that gave birth to them illustrates — by way of contrast — why so many of today’s organizations are creatively sterile.

What made PARC so different from organizations where creativity falters? An abundance of all three key ingredients:

1. Smart people who think differently. The first threat to business creativity is our endangered education system, with its downward trends in science and math, and its increasingly narrow focus on basic subjects. The four dozen people working at PARC were really smart, with two important kinds of smarts. First, they had deep expertise — in computer science, optical science, and system dynamics, as well as broad acquaintance with seemingly unrelated fields. Alan Kay, one of PARC’s first computer scientists, brought his colleagues vast knowledge ranging from music to biology. Second, the PARC inventors had creative smarts. Rather than getting trapped by what was already inside their heads, they voraciously consumed new information and combined it in ways no one had previously imagined. They didn’t develop those habits of mind by following mandated curricula.

2. Passionate engagement. Aside from small startups, too few organizations today give people a chance to do what they love in service of a meaningful mission. Robert Bauer walked into his dream job at PARC three months after its founding. He stayed for over 30 years. As he recently told Computerworld.com, “Conducting research at PARC four decades ago was like magic. …We came to work every day with a passion …” My research has shown that people are most creative when they are on a mission, intrinsically motivated by a love for what they are doing. Bauer and his colleagues found immense interest, enjoyment, satisfaction, and challenge in “dreaming, proving and making things that had never been done before.” Indulging their passion was so exciting, and so much fun, that they worked their tails off. These days, people are more likely to find work frustrating than fun.

3. A creative atmosphere. Under the severe pressures of the financial crisis, contemporary organizational atmospheres resemble assembly lines more than hotbeds of creativity. Too often, the imperative is to do the same thing repeatedly, ever faster and more efficiently; reflection, exploration, and intense collaboration become superfluous luxuries. The PARC culture could hardly have been more different. Like all great organizational cultures, this one started with a bold vision. PARC’s founder, George Pake, was out to create “the office of the future.” He and Bob Taylor,  head of PARC’s Computer Science Laboratory, built a near-perfect work environment for creativity: freedom to pursue passions, challenging goals, collaborative norms, sufficient time to really think, and the resources people needed to follow their dreams. Even the smartest, most passionate people won’t thrive in — or will soon abandon — a work environment that stifles them. Most people who got into PARC never wanted to leave.

PARC was ahead of its time, but it was no anomaly. Even today, many creative hotbeds exist around the world, in new ventures and in a few more established shops like MIT’s Media Lab, SONY, the design firm IDEO, and Disney’s Pixar.

But with the three ingredients of business creativity becoming scarce resources, the PARCs of tomorrow will face swift extinction.

Forty years after the birth of PARC, have workplaces gotten any better at fostering that sort of brilliance?

Are start-ups the only places where the ingredients of creativity abound today? Is creativity under threat — or is it somehow protected — in your organization?

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Teresa Amabile is Edsel Bryant Ford Professor of Business Administration at Harvard Business School. She researches what makes people creative, productive, happy, and motivated at work. She is the author of two books, Creativity In Context: Update To The Social Psychology of Creativity and Growing Up Creative: Nurturing a Lifetime of Creativity, as well as more than 100 scholarly papers. Amabile holds a doctorate in psychology from Stanford University.

Friday, November 19, 2010 Posted by | Bob's blog entries | , , , , , , , , , , , , , , , , , , , , | Leave a comment

Secrets of an “insanely great” public speaker

Here is a portion of my current DRAFT of a review of Carmine Gallo’s book, The Presentation Secrets of Steve Jobs: How to Be Insanely Great in Front of Any Audience, published by McGraw-Hill ((2010).

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Let’s face it: few (if any) of those who read this book will then be “insanely great in front of any audience.” That’s not why Carmine Gallo wrote it. Rather, his purpose is to help his readers to present their ideas to anyone, anywhere, anytime “with the power of believing in themselves and in their story.” Obviously, there are valuable lessons to be learned from what Steve Jobs does and how he does it.

He brings so many resources to bear on each presentation. They include (1) a thorough understanding of the given subject, (2) a passionate interest in it, (3) rigorous and extensive preparation, (4) total self-confidence and physical presence that command attention, (5) brilliant insights that are thoroughly developed, and (6) sharp focus only on what is most interesting and most important to those in his audience. I have seen Jobs in action several times and can attest to the power and impact of what he says and how he says it.

Gallo cites a few tips early in his narrative. They may seem simple but don’t be fooled. All of the greatest public speakers will tell you that it took them many years (about 10,000 hours) of deliberate practice to master them.

1. Plan in Analog: Think of the presentation as a story that has a setting, a plot, characters, conflicts, increasing tensions because of unsolved problems and/or unanswered questions, a climax, and a brief concluding lesson. Develop a structure to organize these components.

2. Answer the One Question That Matters Most: Those in the audience are asking the same question, “Why should I care.” Disregard this question and you will lose the audience almost immediately.

3. Develop a Messianic Sense of Purpose: Gallo notes that Jobs was worth more than $100 million by the time he was 25 and it didn’t matter to him at all. That wasn’t what he was about. “Understanding this one fact will help you unlock the secret behind Jobs’s extraordinary charisma.”

4. Create Twitter-like Headlines: Develop headlines into 140-character sentences. Less is more. My take: Think like a sniper, not a crop duster.

5. Draw a Road Map: Jobs effectively uses the most powerful principle of persuasion, The Rule of Three (i.e. three new products, three objectives, three barriers. Three parts, three features)

6. Introduce the Antagonist: In each of Jobs’s greatest presentations, he introduces a common enemy against which everyone unites, becomes emotionally engaged, prepares to do battle, agrees to make sacrifices, etc.

Note: It could be waste, a foreign country, the New York Yankees (“the Evil Empire”), a product, a competitor. Whatever.

7. Reveal the Conquering Hero: At each presentation, Jobs introduces a hero for the audience to rally around. It could be a person, a product, a goal, a comoetitive advantage, a “secret weapon,” or a destination.

Note: I urge you to click here and upload Steve Jobs’s commencement speech at Stanford University in 2005. Once seen and heard, you will never forget it.

Tuesday, November 2, 2010 Posted by | Bob's blog entries | , , , , , , , , , , , , | Leave a comment

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