Friday, March 31, 2017

Paul's Update Special 3/31




Welcome to 2017. It is going to be an interesting year. We have not seen so much creativity, innovation and evolution before in history. Here are seven trends that step towards mainstream in 2017 and change the world and the way we do business.

7. Organizational structures will change
The hierarchical pyramid organizations stuffed with redundant roles described in libraries of role descriptions are end of life. We can no longer use these illusionary walls between people. We have to connect with each other on a deeper and more natural level to continue growth.

6. Work cultures will change
Organizational structures can only change if the people change. Culture change is the bigger picture that needs to happen in organizations to stay relevant in the coming years. Think about this from the perspective of all the new generations that flow into the global workforce. Millennials and the iGeneration add more diversity in the workplace, which requires a rethinking of the purpose of our companies.

5. Supporting organizations will continue to automate
If you are working in Finance, Human Resources or any other supporting role, you better stay in shape. Mental shape. Because these departments are fantastic for automation. 

4. Social Collaboration
Continuously releasing the best products and services is no longer a task for one or a few people. You cannot run business in a linear way anymore. Ownership of responsibility is not relevant anymore. Shared responsibility and access to each other is what matters.

3. Virtual and Augmented Reality
Last year was the breakthrough year of Virtual and Augmented reality. Consumer ready product such as HTC Vive, Oculus Rift and PlayStation VR were accessible for masses and mixed reality apps get more interesting by the day. As always new technology starts expensive and works badly. But over time the technology gets cheaper and works better. VR and AR is no different and will amaze more people quickly. Today VR is a big step for most people due to the social disconnect from the real world. It is a matter of time until more senses are involved in VR. Till then AR is getting more attention and will be bigger in 2017. 

2. Blockchain
The Blockchain is a way to store information decentralized and distributed, where no one person holds ownership of the information. That doesn’t sound impressive at first, but its disruptive power is gigantic and will change our world profoundly.

1. Artificial Intelligence
Once upon a time, Siri was a funny voice in your phone we laughed at. But Siri and all her AI and machine learning friends have ambitions and grow up faster than humans. We humans and our deep learning machines will connect more intensely. 



In my experience, the only way to encourage a team to be more innovative is to shift from a static, “best practices” mentality to a dynamic, “laboratory” mentality and to make each team member, not the manager, responsible for the results.

To accomplish this, managers can do four things:

Foster divergent thinking. Most people have an ingrained assumption that all problems have a single right answer, a mentality that most schools and workplaces reinforce. Don’t expect your staff to change that mental model overnight, or on their own. You’ve got to retrain them in how to think. I do this by employing a divergent thinking program. Divergent thinking is different from creative thinking. It’s not the ability to come up with an original idea, but the ability to come up with lots of different answers to the same question. Divergent thinking looks more like insatiable curiosity than like original ideas.

You can teach divergent thinking in a number of ways:

  • Ask your team members to come up with 15 solutions to a problem the company is currently facing.
  • Examine your company’s blueprints and ask your staff, from execs to interns, “How many ways could we rearrange our space to make our work more efficient?”
  • Make 20 mockups for every design change.
  • My personal favorite: If you are a manager, stop answering questions. Instead, respond with, “What do you think?” And then wait. After an answer is given ask, “What else?” And then wait. Repeat five to seven more times.
But the key to making divergence stick is to keep reintroducing it into the daily culture of your team.

Make everyone responsible for their own tests. The most important lesson I’ve learned about implementing a testing culture is that the test results live inside the tester.

Segregating the person who generates ideas from the person who tests those ideas negates the ability of the ideator to learn how to craft solutions that resonate with the consumer. All team members must be able to test their own ideas and see the results. This is experiential learning. And it’s how humans are hardwired to learn, iterate, and innovate. Empower your whole team with the support, structure, and time to do thoughtful, careful, creative testing, and you will see a culture of innovation flourish.

Normalize failure. No really, normalize it. How do you know whether your team is really embracing this new culture of testing? Set a baseline failure rate and success rate, and measure your team’s work by that baseline.

The more that managers can normalize failure rates to align the team’s perspective with the reality of actual achievement and to eliminate fear, the easier it will be to innovate.

Testing and data should not be used to create best practices. The more tests your team runs, the more ideas they should get for new tests. Data should be generative, not conclusive.

Static best practices are problematic in two ways. First, they will put your staff on autopilot, which dulls creativity. Second, they aren’t optimized for maximum success today. They continue to rely on what worked last week, last month, last year.

Don’t use what you learn to create rules; use what you learn to push your team into even more exciting experiments. When you adopt a practice of continuous experimentation and curiosity, innovation will follow.



With the number of cultures melding in the workplace today and the growing reliance on worldwide teams, the chances of unknowingly offending someone is growing. That’s why even if your teams don’t travel internationally, chances are increasing that there is going to be more “culture crashing” in a workplace that can hurt productivity, collaboration and the bottom line, says Michael Landers, author of “Culture Crossing: Discover the key to Making Successful Connections in the New Global Era.” Landers  explains that a “culture crash” is when you unknowingly offend someone else.

Landers says it can be intimidating to try and figure out every rule and nuance of different cultures – even those within the U.S. That’s why he says it’s easier to challenge your own assumptions about proper behavior, and then learn to look for signs on how to adapt quickly to avoid offending others. Such a tactic, he says, is critical if businesses want to remain competitive and not get caught up in cultural faux pas.

Landers says anyone in such a situation needs to do an ROI:
  • Recognize your own cultural programming.
  • Open your mind to whether it’s really a person’s intention to be rude. Are there other ways of perceiving or approaching the situation?
  • Identify your response to optimize results. For example, think about whether this is just this person’s style, and no personal offense is intended.

Landers also suggests that teams don’t have to learn every preference of another culture, but instead learn to look for cues on how best to proceed. Such adjustments, he says, can lead to smoother collaborations and more profitable business outcomes.

Among his suggestions for how teams with different cultures can better work together:
  • Determine whether it’s “me” or “we.” Many of those in Western cultures expect to get recognition when they come up with an idea and feel disrespected or cheated if someone else tries to take the credit. But in “we” cultures, the focus is on giving the team, or even your boss, credit for your work. 
  • Tune in to nuances. Those who are more “direct” communicators will strive verbally to express themselves clearly and expect the same from others. But an “indirect” communicator relies heavily on nonverbal cues like silent pauses and gestures to convey meanings, and assume others will do the same.
  • Pay attention to nonverbal cues. One of the most troublesome cross-cultural questions is whether to look at someone directly. In some cultures, it can be a sign of respect and confidence. In others, it’s seen as disrespectful or threatening. Even the firmness of a handshake can be fraught with problems, depending on the culture. “I think one of the best things you can do is ‘mirroring’ the other person,” Landers says. “If the person doesn’t shake your hand firmly, then you shouldn’t go in for a strong grasp. Or, if the person looks directly in your eye and smiles, do the same.” 
  • Understand the concept of time. Different cultures view time differently. 
  • Consider the formality. Just as you use mirroring in face-to-face communications, Landers suggests you do the same in written messages.  It’s best to always begin and end with formal salutations until your counterpart becomes more informal – then you can do the same.  When eating or drinking, try to follow the lead of others when it comes to which utensils to use, how much to drink or even how little food to leave on your plate.

“To avoid a culture clash, you need to adjust your expectations and behaviors based on the values you uncover,” Landers says. 


Friday, March 24, 2017

Paul's Update Special 3/24



McKinsey research reveals a wide gap between the aspirations of executives to innovate and their ability to execute. Organizational structures and processes are not the solution. Innovation has become a core driver of growth, performance, and valuation.

More than 70 percent of the senior executives in a survey we recently conducted say that innovation will be at least one of the top three drivers of growth for their companies in the next three to five years. Leading strategic thinkers are moving beyond a focus on traditional product and service categories to pioneer innovations in business processes, distribution, value chains, business models, and even the functions of management.

Our research also shows that most executives are generally disappointed in their ability to stimulate innovation. Sustaining innovation to create real value at scale—the only kind of innovation that has a significant financial impact—is even harder. 

Our experience convinces us that a disciplined focus on three people-management fundamentals may produce the building blocks of an innovative organization. 
  1. First, formally integrate innovation into the strategic-management agenda of senior leaders to an extent that few companies have done so far.
  2. Second, executives can make better use of existing (and often untapped) talent for innovation, without implementing disruptive change programs, by creating the conditions that allow dynamic innovation networks to emerge and flourish. 
  3. Third, take explicit steps to foster an innovation culture based on trust among employees. In such a culture, people understand that their ideas are valued, trust that it is safe to express those ideas, and oversee risk collectively, together with their managers. Such an environment can be more effective than monetary incentives in sustaining innovation.

While senior executives cite innovation as an important driver of growth, few of them explicitly lead and manage it. About one-third say that they manage innovation on an ad hoc basis when necessary. Another third manage innovation as part of the senior-leadership team's agenda. How can something be a top priority if it isn't an integrated part of a company's core processes and of the leadership's strategic agenda and—above all—behavior?

In a separate survey of 600 global business executives, managers, and professionals, the respondents pointed to leadership as the best predictor of innovation performance. Those who described their own organization as more innovative than other companies in its industry rated its leadership capabilities as "strong" or "very strong." Conversely, those who believed that the ability of their own organization to innovate was below average rated its leadership capabilities as significantly lower and, in some cases, as poor.

As with any top-down initiative, the way leaders behave sends strong signals to employees. Innovation is inherently associated with change and takes attention and resources away from efforts to achieve short-term performance goals. More than initiatives for any other purpose, innovation may therefore require leaders to encourage employees in order to win over their hearts and minds. 

Our research implies that most senior executives do not actively encourage and model innovative behavior. If they did, they could give employees the support needed to innovate. They can also take a number of other practical steps to advance innovation:

  • Define the kind of innovation that drives growth and helps meet strategic objectives. 
  • Add innovation to the formal agenda at regular leadership meetings. We observe this approach among leading innovators. 
  • Set performance metrics and targets for innovation.

Recent academic research finds that differences in individual creativity and intelligence matter far less for innovation than connections and networks—for example, networked employees can realize their innovations and make them catch on more quickly. Since new ideas seem to spur more new ideas, networks generate a cycle of innovation. Furthermore, effective networks allow people with different kinds of knowledge and ways of tackling problems to cross-fertilize ideas.

Social-network analysis can help executives to diagnose existing networks in order to ascertain their characteristics, such as the frequency of collaboration and the degree of cross-functional interactions among members, and to identify people who broker information and knowledge. 

When we combined the analysis of personal perspectives on innovation with the network map, we found opportunities for improvement. Paradoxically, the analysis revealed that those employees, largely middle managers, with the most negative attitude toward innovation were also the most highly sought after for advice about it. Senior management used this analysis to create a network of middle managers who were encouraged to generate newer and bigger ideas. 

Shaping innovation networks is both an art and a science. Any network is unpredictable and, in the end, impossible to control. Focusing on the replacement of one or two ineffective members has less impact than establishing the conditions for vibrant networks and taking advantage of the connections through which they flourish. Making networks more decentralized is another way to improve collaboration and performance.

Image_Designing an innovation network_2
Senior executives say that making top talent available for projects to meet innovation goals is their single biggest challenge in this area. Employees are more likely to believe that their organizations have the right talent but that the corporate culture inhibits them from innovating. 

Image_What inhibits innovation_3

Top teams can help build a more innovative culture in several ways:

  • Embrace innovation as a top team. It's not enough for the CEO to make innovation a personal goal and to attend meetings on innovation regularly. Members of the top team must agree that promoting it is a core part of the company's strategy, reflect on the way their own behavior reinforces or inhibits it, and decide how they should role-model the change and engage middle management.
  • Turn selected managers into innovation leaders. Identify managers who already act, to some degree, as network brokers and improve their coaching and facilitation skills so that they can build the capabilities of other people involved in innovation efforts more effectively. The goal: making networks more productive.
  • Create opportunities for managed experimentation and quick success. Not surprisingly, this approach is typically the best way to start any change effort in large organizations. Quick success matters even more with innovation: people need to see results and to participate in the change. To get going quickly and learn along the way, select an innovation theme or topic area and then create small project teams. While you try out topics and ideas, test the most effective leadership and organizational approaches for your organization. The goal isn't to get it right the first time but to move quickly to give as many influential employees as possible a positive experience of innovation, even if a project doesn't generate profits immediately. A positive experience will make all the difference in building the organization's capabilities and confidence.
Innovation is a big idea with a big potential. But it is wise to approach it in small steps, implementing just one or a few of the ideas we propose and building from there. For many companies, the initial steps on this value-creating journey are the most critical of all.




Organizations are spending hundreds of millions of dollars on employee engagement programs, yet their scores on engagement surveys remain abysmally low.

When organizations make real gains, it’s because they’re thinking longer-term. They’re going beyond what engagement scores are telling them to do in the moment and redesigning employee experience, creating a place where people want, not just need, to work each day. But what does that mean, and what does it look like? 

To understand this, I interviewed 150 psychologists, economists, and business leaders around the world. Based on those conversations, I identified three environments that matter most to employees: cultural, technological, physical.

After analyzing more than 250 diverse organizations, drawing on the Fortune 100 and various “best workplaces” lists, I found that over half the companies were rated poorly by their employees in at least one of the three areas, and 20% got very low scores across the board.Although 23% were making strides in all three areas, just 6% were investing heavily in all three — and those “experiential organizations” (Adobe, Accenture, Facebook, Microsoft, and others) saw performance gains. 

When I interviewed business leaders at the top-scoring organizations, they told me their investments in the three employee experience environments had led not only to happier employees but also to larger talent pipelines and greater profitability and productivity.

W170224_MORGAN_COMPANIESTHAT

Looking at the data, it’s clear that there is a significant return to organizations that focus on employee experience over the long term, not just engagement in the here and now. 

The important thing is moving away from putting people into outdated workplaces, and redesigning workplaces and practices around your employees.



Today, as companies increasingly need to become more dynamic, interconnected and flexible, soft skills are critical. According to Deloitte’s 2016 Global Human Capital Trends report, executives now consider these skills important to fostering employee retention, improving leadership, and building a meaningful culture. In fact, 92 percent of Deloitte’s respondents rated soft skills as a critical priority.

The good news is that soft skills are learnable. In fact, resilience training experts, who specialize in teaching and training in the soft skills, would go further to say they are foundational to creating strong employees, teams, leaders and organizations.

Here are the most critical soft skills to build resilience, and how to develop them in your team:

  1. Problem Solving
    The ability to get into “problem-solving mode” and stay in it for long periods of time—in other words, persist until a problem is solved instead of disengaging and giving up—is key to dealing with the inevitable challenges that come with any role more efficiently and effectively.
  2. Emotion Control
    Getting control of our emotions is the single most important soft skill we can learn. In fact, there's a high correlation between emotion regulation and our ability to manage our stress and stay productive under pressure.
  3. Purpose
    Feeling connected to a mission beyond ourselves and our own self-interest works as a wellspring to carry leaders and their teams through tough times, which invariably happen at work. Developing purpose can be taught and involves learning how to reframe our work in a larger context and focus on personal contribution to the overall mission of the organization.

We’re entering a new frontier in the workforce. By framing soft skills as a teachable discipline, we can position our companies to thrive in an atmosphere that runs on resilience just as much as technical know-how.

Peter Diamandis Exponential Leadership 3


Arianna Huffington founded the Huffington Post, a news platform with millions of readers per month. AOL acquired the Huffington Post in 2011 for $315 million. Now, Arianna is starting an exciting new company called Thrive Global to help entrepreneurs and individuals make their lives more sane, meaningful and productive.

Arianna Huffington’s 10 Lessons on Exponential Leadership

1. You Don’t Have to Burn Out: People who burn out at work do not perform as well as people who are well rested and balanced.

2. Allow For Time to Renew Yourself: To be your most productive, your most effective, and your most creative as a leader, you must allow time to renew yourself.

3. Do Entry Interviews: Arianna explains, “Right now, everybody does exit interviews. How about doing entry interviews and asking people what they need to feel balanced?” 

4. Create Elegant Success - Find Your Spot Between Chaos and Order: Arianna spoke about a concept called “Elegant Success” – it’s about finding the right balance between order and disorder.

5. Our Relationship with Technology Has to Change: Arianna wants to create new role models that will shape the conversation around improving our health and productivity. 

6. Sleep More! Arianna cited a study from the RAND Corporation estimating that sleep deprivation costs us $411 billion per year in lost productivity. 

7. Put Your Phone Away 30 Minutes Before You Go To Sleep.

8. Don't Call It Slowing Down: “If you define these strategies as ‘slowing down,’ you are never going to do them. Nobody wants to slow down."

9. Ask for help: If you feel stressed, bogged down, burned out or too busy, ask for help.

10. Make Your Leadership Meetings Device-Free: To incentivize your team to leave their devices behind, aim to do meetings in half an hour, rather than an hour.