Book review: “Outcomes Over Output” by Joshua Seiden

Over the years I’ve learned a lot from Josh Seiden, starting with “Lean UX” which he coauthored with Jeff Gothelf. Seiden recently published “Outcomes Over Output” a nifty little book (should take about 40 minutes to read), which – you guessed it – encourages it readers to move from “making stuff” to creating outcomes by changing customer behaviour. Seiden asserts that customer behaviour is the key metric for business success:

  1. What is an outcome? Seiden defines an outcome as “a change in human behaviour that drives business results.” He goes on to explain that outcomes have nothing to do with making ‘stuff’ – though they’re something created by making the right stuff. He explains that “outcomes are the changes in the customer, user, employee behaviour that lead to good things for your company, your organisation, or whomever is the focus of your work.”
  2. Delivering value early and often – Instead of big bang product releases, Seiden stresses the importance of creating specific, smaller customer behaviours that drive business results. Think for instance about enabling users to create music playlist, so that they can find their favourite music easily. You can create new behaviours or focus on existing customer behaviours (e.g. opening emails or sharing images). This could in turn help increase the life time value of those users, which is a measurable business result. Seiden reminds us of the first Agile principle – “our highest priority is to satisfy the customer through early and continuous delivery of valuable software.” Seiden rephrases this principle slightly to best fit today’s context: “our highest priority is to satisfy the customer through early and continuous delivery of value.”
  3. Outcomes, experiments, hypotheses, and MVPs – I loved Seiden’s point about what constitutes an Minimum Viable Product (‘MVP’) and what doesn’t. “An MVP is NOT version 1.0 of your product. Instead, think of MVP as the smallest thing you can make to learn if your hypothesis is correct”, explains Seiden. He talks about agile projects effectively being a series of hypotheses and experiments, all designed to achieve an outcome.
  4. Finding the right outcomes (1) – For me, the million dollar question behind “Outcomes Over Output” is how teams determine the right outcomes to concentrate on. Firstly, you start with a fairly simple question: “what are the customer behaviours that drive business results?” You set an “impact level target”; e.g. increase the rate at which customers visit the site from once a month to twice a month or to reduce the number of times users abandon the checkout process on the app from hundred times a month to ten times a month. Secondly, once the impact level target has been defined, we can then ask “what are the things that customers do that they predict they’ll visit our site?” or “what are the behaviours that predict a successful customer checkout on the app?” In both examples, the focus is on observable and measurable outcomes.
  5. Finding the right outcomes (2) – Rather helpfully, Seiden shares what he refers to as “The Magic Questions” that we can all apply when figuring out the right, measurable outcomes to concentrate on: (1) What are the user and customer behaviours that drive business results. This is the outcome that we’re trying to create; (2) How can we get people to do more of these behaviours? These are the features, policy changes, promotions, etc. that we’ll do to create the right outcomes and (3) How do we know that we’re right? This uncovers the dynamics of the system, as well as the tests and metrics we’ll use to measure our progress.
  6. Planning around outcomes – Instead of building plans around outputs or features, it often makes makes more sense to plan around themes of work, problems to solve, or outcomes to deliver. Seiden makes the point that the less certain that you are that your outputs (i.e. the features that you want to deliver) will deliver the results you seek, the more it makes sense to plan in terms of outcomes and to build your roadmaps around sets of outcomes.

Main learning point: “Outcomes Over Outputs” does a great job of linking customer focus with specific business results, and is a great read for anyone keen to make the right impact on customer behaviour for the right reasons.

Book review: Banish Your Inner Critic by Denise Jacobs

 

I think it’s fair to assume that suffering from ‘imposter syndrome’ is common among most of us. Even with those people where you least expect it, they often suffer from some form of self-criticism. In her latest book “Banish Your Inner Critic”, Denise Jacobs links creativity and imposter syndrome: “creativity comes from relaxing self-evaluation and self-judgment – and the self-criticism and self-doubt that result from them.” Not to say that only creative people are prone to self-criticism, but Jacobs focuses on how feeling like an imposter can impact one’s ability to be creative or try things.

Whilst it’s purely anecdotal evidence, I know a lot of creative (product) people who can be their own worst critic. Full disclosure: I’m definitely one of them ūüôā It’s that inner voice telling you that your work is sh*t or, even worse, that you’re useless as a person. Self-criticism can really put (and keep) us down, not only blocking our creativity but also the ways in which we present ourselves or interact with others. In “Banish Your Inner Critic” Jacobs explores where our inner critical voice comes from and how to best manage it:

  1. Replace self-criticism with self-compassion: Jacobs points out that instead of applying self-criticism, we need to actively practice the opposite: self-compassion. Self-compassion is realising that self-criticism is the enemy and then acting to reverse its negative effects. Jacobs adds that self-compassion also helps to unlock creativity. She helpfully explains the two components of self-compassion; (1) making a conscious effort to stop self-judgment and (2) actively comforting ourselves, the same as we would do with a friend in need.
  2. Recognise your inner critical voice – Awareness of your inner critical voice (“Inner Critic”) is crucial. This then enables you to see your critical thoughts for what they are: thoughts. Jacobs shares a great template to help you unearth your critical thoughts (see Fig. 1 below). She adds that “being more aware of what your brain and mind do when sensing a potential threat in the form of being judged and receiving criticism will encourage the development of a calmer part of the mind.”
  3. Know your cognitive distortions – There are a number of so-called cognitive distortions that are relevant to the Inner Critic. Jacobs invites readers to reflect on these and assess how many of them have stuck with them (see Fig. 2 below).
  4. Seek positive confirmation – The good thing about negative confirmation bias, Jacobs points out, is that it can be flipped to create a positive full-filling prophecy too. Rather than walking around in a perpetual state of feeling that no one believes in you, you can be on the hunt for support. Take confirmation and use it as a force for good, Jacobs says, to seek out positivity rather than negativity.
  5. Stop awfulising – I know from experience that it can be easy to slip in a mindset where the worst has just happened or is about to happen. In her book, Jacobs recommends looking at the facts of the situation at hand without embellishing or minimising them as a way of trying to avoid a ‘spiralling’ effect (see Fig. 3 below).
  6. Live better through criticism – Truth be told, I used to really struggle with receiving criticism. Like most people, I still don’t¬†love¬†criticism, but have gotten better at taking in criticism and using it to improve. Jacobs provide a number of valuable tips to help you learn take criticism in well and use to get better at whatever you are doing (see Fig. 4 below).
  7. Move from stagnation to action – The best quote in “Banish Your Inner Critic” comes from Chetan Bhagat: “Be so busy improving yourself that you have no time to criticise others.” Jacobs makes the point that by letting go of our preoccupation with the trajectory of other people’s lives, we can transform our envy from a stagnant, blocking force into a powerful motivator for growth.

Main learning point: “Banish Your Inner Critic” is a very valuable resource for anyone suffering from imposter syndrome, wanting to better manage their critical inner voice. The book’s greatest strength is in helping you reframe your self-criticism; seeing critical thoughts for what they are and combating them with compassionate thoughts.

 

Fig. 1 – The critical voices in your head – Taken from: Denise Jacobs, Banish Your Inner Critic, pp. 77-78:

I can’t ______________________________________ because ______________________________________________________.

I’m not _____________________________________________________________________________________ enough.

I’m afraid that I’m _________________________ because I ______________________________________________________.

I never ____________________________________ because I always _______________________________________________.

I’m afraid that I’ll _____________________________ because I ___________________________________________________.

I can’t ________________________________________ because I’m not as _____________________________________ others.

If I __________________________________________ then people will _________________________________________________.

I shouldn’t __________________________________ because I haven’t _______________________________________________.

I _____________________________________________ because my ideas ______________________________________________.

I’m too ________________________________________________________________________________________________________.

My biggest fear around my creativity is ______________________________________________________________________.

 

Fig. 2 – Know your cognitive distortions – Taken from: Denise Jacobs, Banish Your Inner Critic, pp. 110-130:

  1. Mental Filter (also called selective abstraction or tunnel vision) / Magnification and Minimisation (also called the binocular trick) – You find ample evidence to support negative beliefs, but filter out any positive counterexamples.
  2. Overgeneralisation – You make a broad, sweeping negative conclusion from a single isolated occurrence and then apply to all instances of its kind, making a truism from it.
  3. Jumping to conclusions – You negatively interpret the meaning of a situation without any actual evidence or facts to support your conclusion.
  4. Mind reading – You determine that the thoughts of others toward you are unfavourable despite lacking sufficient evidence, considering other more likely possibilities, or even checking it out..
  5. Fortune telling or catastrophising – You predict that circumstances will turn out poorly, and then are convinced that your prediction is fact despite lacking supportive evidence.
  6. Emotional reasoning – You turn feelings into facts and assume that the way you feel emotionally is a reflection of reality, and ignore evidence to the contrary.
  7. All or Nothing Thinking (also called black and white, polarised or dichotomous thinking) – You look at situations in black and white categories instead of along a continuum.
  8. Should statements (also called imperatives) РYou use shoulds and should nots as your main source of motivation, holding yourself to a precise and strict list of acceptable behaviour.
  9. Disqualifying / Diminishing the positive – You discount or ignore positive experiences, situations, attributes, and qualities.
  10. Personalisation – You assume responsibility for negative events and circumstances that are outside of your control, blaming yourself unnecessarily for situations without more plausible explanations for the root causes.
  11. Labelling and mislabelling – You generalise and make labels of negative characterisations of yourself and others based on perceived shortcomings and a limited set of behaviours, without considering facts otherwise.

 

Fig. 3 – Stop awfulising – Taken from: Denise Jacobs, Banish Your Inner Critic, p. 121:

First on a piece of paper or in a journal, write down and answer the question:

  • What I am afraid will happen?

Next, write down a response to this question:

  • What could happen?

However, instead of going into a place where your anxious thoughts push yourself to awfulise the situation, actively apply realistic optimism. Tell yourself the story of what could possibly happen using “and then …” to devise an alternative that is positive instead of the feared outcome. Build upon this new realistically optimistic story by making each of your “and then…” additions more positive until you feel better and your fear diminishes.

Use this framework:

and then ___________________________________________________________________________________________________________.

and then ___________________________________________________________________________________________________________.

and then ___________________________________________________________________________________________________________.

 

Fig. 4 – Curious and open – Taken from: Denise Jacobs, Banish Your Inner Critic, pp. 132-133:

  1. Breathe – Get yourself grounded and make an effort to stay relaxed so that you don’t end up blocking the information through being tense, anxious or defensive.
  2. Detach – Make an effort to detach whatever criticism you get from your self-worth. Even when it seems that a person is criticising who you are as a person, there’s a good chance that what they are actually criticising is your behaviour.
  3. Listen actively – One of the best ways to do so is to write everything down. This will help you detach from your emotions and put you more into a listening mode. Ask questions to clarify points, and make notes of items to double-check or focus when you review your notes.
  4. Get specifics – What specifically does the person think you need to improve? What are her or his thoughts and suggestions on how you can do so?
  5. Find the relevant – Take criticisms with a grain of salt. Use your powers of discernment to keep what is relevant and ignore the rest.
  6. Invite – Actively solicit constructive criticism or ask for it – and be appreciate of their suggestions.
  7. Discover – Set your intention to discover new perspectives and ideas that you may not have considered.
  8. Be curious – Approach the criticisms with curiosity. Look for what was the most interesting thing the person said. It could be that they revealed a major insight through that point.
  9. Grow – The criticism can help to shine a light on issues that you still need to resolve within yourself: fears, doubts, and insecurities.
  10. Save time and learn – Changing how you react to criticism is actually a time-saver: if you really take in the information and learn from it, you will save yourself making the same mistakes and having to try the lessons in the future.

 

Related links for further learning:

  1. https://self-compassion.org/wp-content/uploads/publications/Gilbert.Procter.pdf
  2. https://www.mindtheproduct.com/2018/03/dont-feel-like-imposter-youre-something-wrong-rik-higham/
  3. https://www.youtube.com/watch?v=whyUPLJZljE
  4. https://www.ted.com/talks/elizabeth_cox_what_is_imposter_syndrome_and_how_can_you_combat_it?
  5. https://www.neurosciencemarketing.com/blog/articles/book-review-train-your-mind-change-your-brain.htm

Book review: The Making of a Manager by Julie Zhuo

“The Making of a Manager” is the first book by Julie Zhuo, VP of Product Design at Facebook. In “The Making of a Manager”, Julie shares her experiences and learnings with regard to her transition from being a personal contributor to becoming a manager. “This is a book about how someone with no formal training learned to become a confident manager” is the starting point for Julie’s book.

When she started her first role as a manager at Facebook, Julie had very little experience under her belt and she describes what she thought a manager’s job was:

  • have meetings with reports to help them solve their problems,
  • share feedback about what is or isn’t going well, and
  • figure out who should be promoted and who should be fired.

Without wanting to spoil the rest of “The Making of a Manager”, this is how Julie sees a manager’s job today:

  • build a team that works well together,
  • support members in reaching their career goals, and
  • create processes to get work done smoothly and efficiently.

Julie summarises that “Your job, as a manager, is to get better outcomes from a group of people working together.” She puts a great focus on outcomes and refers to her former manager Chris Cox, ex VP of Product at Facebook, who explained that half of what he as a manager looks at were his team’s results¬†and the other half was based on the strength and satisfaction of his team.

I liked Julie’s inclusion of Richard J. Hackman’s research into what helps create successful teams (see Fig. 1 below). She uses a similar approach to managers creating the right conditions for their teams:

  • Purpose – The purpose is the outcome your team is trying to accomplish, otherwise known as the why. The first big part of your job as a manager, Julie writes, is to ensure that your team knows what success looks like and cares about achieving it.
  • People – This is all about the who. Are the members of your team set up to succeed? Do they have the right skills? Are they motivated to do great work? To manage people well, Julie explains, you must develop trusting relationships with them, understand their strengths and weaknesses (as well as your own – see below), make good decisions about who should do what (including hiring and firing when necessary), and coach individuals to do their best.
  • Process – This describes how your team works together. Julie clarifies that process in her mind isn’t about stacks of paperwork and frameworks for everything, but enabling teams to make decisions and work together effectively: “In a team setting, it’s impossible for a group of people to coordinate what needs to get done without spending time on it. The larger the team, the more time is needed.”

Staying on the topic of defining management, Julie provides a useful distinction between leadership and management. Manager is a specific role, with clear principles outlining what a manager does and how his success is measured. Leadership, on the other hand, is the particular skill of being able to guide and influence other people. Julie makes the point that a leader doesn’t have to be a manager; “Anyone can exhibit leadership, regardless of their role.”

In “The Making of a Manager”, Julie covers a lot of different facets of becoming and being a manager. From recounts her first couple of months as a manager to breaking down her views on strong management, Julie offers a ton of insights and tips for those of us who are managers or would like to take on this role. Let’s pick some aspects that resonated with me most:

  • Trust is the most important ingredient – It may sound obvious, but the importance of investing time and effort into creating / maintaining trusting relationships can get easily overlooked. Julie mentions that the hallmark of a trusting relationship is that people feel they can share their mistakes, challenges, and fears with you.
  • Giving and receiving critical feedback – Similar to Kim Scott and Amy Edmondson, Julie talks about how managers and their direct reports need to be able to give each other critical feedback regularly without it being taken personally. If your report does work that you don’t think is great, are you comfortable saying that directly? Similarly, would your report tell you if you if he thinks you’ve made a mistake?
  • Be honest and transparent about your report’s performance – As a manager, your perspective on how your report is doing carries far more weight than his perspective on how you’re doing. After all, you’re the one who determines what he works on and whether he should get a promotion or be fired.
  • Admit your own mistakes and growth areas – Julie shares how she tries to admit when she doesn’t have the answers or when she’s working through her own personal challenges, and shares a number of useful phrases that she’ll typically use when doing so (see Fig. 2 below).
  • Managing yourself – Here, Julie talks about the so-called imposter syndrome, i.e. where you doubt your accomplishments and worry being exposed as a “fraud”.¬† She raises the question why imposter syndrome hits managers particularly hard and gives two main reasons. Firstly, because managers are often looked to for answers. Secondly, managers are constantly put in the position where they’re put in the position if doing things they haven’t done before. She also talks about managers identifying their own strengths and weaknesses, and “being brutally honest with yourself”.
  • Amazing meetings – I liked Julie’s points about meetings, the bane of most managers’ lives. She distinguishes between decision-making meetings and informational meetings and explains how being clear about the meeting objective (and structuring the meeting accordingly) can lead to much more effective and enjoyable meetings (see Fig. 3 below).

Fig. 1 – Richard J. Hackman, Hackman’s 5 Factor Model:

Being a Real Team – One with clear boundaries and stable membership.

Compelling Direction – Provide the team with clear goals, which are both challenging and consequential.

Enabling Structure – Where possible, offering the team variety in the tasks they undertake improves the team’s success. Within the team’s structure it’s also key to ensure that team members have strong social skills.

Supportive Context – A supportive context is essential for companies and organisations, as they are made up of small groups which when combined form a larger group.

Expert Coaching – This is about coaching and mentoring the team to help achieve the outcomes they need to achieve and support team members developing their individual skills.

 

Fig. 2 – Julie Zhou, The Making of a Manager: Sample things to say when you don’t have the answer or are working through personal challenges:

  • “I don’t know the answer. What do you think?”
  • “I want to come clean and apologise for what I did/said the other day …”
  • “One of my personal growth areas this half is …”
  • “I’m afraid I don’t know enough to help you with that problem. Here’s someone you should talk to instead …”

 

Fig. 3 – Julie Zhou, The Making of a Manager: Decision-Making Meetings and Informational Meetings:

A great decision-making meeting does the following:

  • Gets a decision made (obviously)
  • Includes the people most directly affected by the decision as well as a clearly designated decision-maker.
  • Presents all credible options objectively and with relevant background information, and includes the team’s recommendation if there’s one.
  • Gives equal airtime to dissenting opinions and makes people feel that they were heard.

A great informational meeting does the following:

  • Enables the group to feel like they learned something valuable.
  • Conveys key messages clearly and memorably.
  • Keeps the audience’s attention (through dynamic speakers, rich storytelling, skilled pacing, interactivity).
  • Evokes and intended emotion – whether inspiration, trust, pride, courage, empathy, etc.

Main learning point: “The Making of a Manager” provides an honest, no bullsh*t account of what it means to be manager and how to best transition into a managerial role. Definitely worth a read if you’re manager or looking to become one.

Related links for further learning:

  1. http://www.juliezhuo.com/
  2. https://medium.com/the-year-of-the-looking-glass
  3. https://hbr.org/2009/05/why-teams-dont-work
  4. https://marcabraham.com/2018/03/12/book-review-the-no-asshole-rule/
  5. http://www.free-management-ebooks.com/faqld/development-03.htm
  6. https://www.cnbc.com/2017/01/30/sallie-krawcheck-says-a-lack-of-diversity-leads-to-bad-decision-making.html
  7. https://marcabraham.com/2019/01/27/my-product-management-toolkit-35-effective-one-on-one-meetings/
  8. https://www.youtube.com/watch?v=ZQUxL4Jm1Lo
  9. https://hbr.org/product/becoming-a-manager-how-new-managers-master-the-challenges-of-leadership/1822-PBK-ENG
  10. https://www.tmbc.com/
  11. https://strengthsprofile.com/

 

Book review: “High Output Management” by Andrew Grove

“High Output Management” by the late Andrew Grove, ex Chairman and CEO of Intel, is a must read management book in my opinion. It’s easy to be quite cynical about most management and business books as a lot of them seem to introduce one central theme (or buzzword) right at the beginning of the book, followed by endless repetition throughout the remainder of the book …

 

 

In contrast, “High Output Management” contains valuable advice and tips from the beginning right to the end of the book. First published back in 1983, the book applies production principles to management. Some of these principles really resonated with me and I feel strongly about all (product) managers benefiting from these principles as part of their day-to-day working practices:

Identifying the “limiting step” – Grove defines the “limiting step” as the step in the overall shape of the production flow that will determine the overall shape of a company’s operations. In the book, Grove uses the simple example of a breakfast company, and highlights the time required to boil an egg is the critical component or the ‘limiting step’ in the production flow (see Fig. 1 below). The key idea here is to construct your production flow by starting with the longest (or most difficult, or most sensitive, or most expensive) step and work our way back. As a (product) manager you’ll thus focus on the limiting step within your context, e.g. in the workflow of your team, the customer funnel or the decision-making process.

 

Fig. 1 РExample of a limiting step when creating a breakfast РTaken from: http://clarkeching.com/ccblog/2018/1/21/what-are-bottlenecks-andy-grove

 

Detect and fix issues at the “lowest-value stage” possible – If there’s a problem with your product, you want to find out about it as early on in the production process as possible so that you can minimise risk. In the production world, I witnessed lowest-value stage thinking first hand at the assembly line of a Toyota factory. Here, employees can pull the¬† ¬†‚ÄúAndon‚ÄĚ cord to (temporarily) bring things to a halt as soon as they come across an issue. It‚Äôs an easy way of escalating things, making sure that a problem or bottleneck is dealt with before proceeding with the rest of the assembly process. Think about when you last pulled an imaginary Andon cord to flag a product or team issue early!?

 

Fig. 2 Using the Andon cord to raise an issue and stop production РTaken from: https://www.lean.org/lexicon/fixed-position-stop-system

 

 

Using (leading) indicators to measure and predict – In order to run a production process well you’ll need a set of indicators which help you monitor and improve the efficiency of the production line. Grove stresses that for these indicators to be useful, “you have to focus each indicator on a specific operational goal.” He goes on to list a number of relevant production indicators (see Fig. 3 below). Leading indicators give you one way to look inside the production process by showing you in advance what the future might look like.

 

Fig. 3 – Indicators related to the production process – Taken from: Andrew S. Grove, “High Output Management”, p. 16:

  • Sales forecast
  • Raw material inventory
  • Manpower
  • Quality

 

Leverage – Grove introduces the concept of “leverage”.¬† This is the output generated by a specific type of work activity. An activity with high leverage will generate a high level of output; an activity with low leverage, a low level of output. This raises the question about what qualifies as managerial leverage and output. Grove’s distinction between activities and output really helps to bring the concept of leverage to life (see Fig. 4 below). The overarching idea is that with each activity that the manager performs, the organisational output should increase.

 

Fig. 4 – Managerial activities vs output – Taken from: Andrew S. Grove, “High Output Management”, pp. 39 – 54:

Managerial activities:

  • Judgments and opinions
  • Direction
  • Allocation of resources
  • Mistakes detected
  • Personnel trained and subordinates developed
  • Courses taught
  • Products planned
  • Commitments negotiated

Managerial output:

A manager’s output is the output of all of the people and the teams that report into her. For example, if someone manages a design team, then his output consists of completed designs that are ready to be implemented.  That output can take many different forms depending on the type of role and industry. Regardless of the form of output, managers must measure its quantity and quality:

A manager’s output = The output of his organisation + The output of the neighbouring organisations under his influence

 

High leverage activities – We’ve already touched on the impact of highly leveraged activities on an organisation’s output, and Grove explains how these activities can be achieved (see Fig. 5 below). For example, to maximise the leverage of his or her activities, a manager must keep timeliness¬†firmly in mind. Equally, managers micro-managing or ‘meddling’ are examples of negative leverage activities. A big part of a manager’s work is to supply information and know-how, and to share a sense of the preferred method of handling things to the teams under his control or influence. A manager also makes and helps to make decisions.

 

Fig. 5 – Three ways in which to achieve high leverage activities – Taken from: Andrew S. Grove, “High Output Management”, pp. 54 – 55:

  • When many people are affected by one manager.
  • When a person’s activity or behaviour over a long period of time is affected by a manager’s, well focused-set of words or actions.
  • When a large group’s work is affected by an individual supplying a unique, key piece of knowledge or information.

 

Applying production principles to management – In the book, Grove rightly points out how time management techniques are commonly used to improve managerial output. He then uses production principles to improve on some of these time management techniques (see Fig. 6 below).

 

Fig. 6 – Ways to improve on time management techniques – Taken from: Andrew S. Grove, “High Output Management”, pp. 62 – 63:

  • Identify our limiting step: determine which things that have to happen on a schedule that’s absolute, and which can’t be moved. You can then plan more flexible activities around it and thus work more efficiently.
  • Batching similar tasks: group similar activities, e.g. performance reviews, as these activities tend to require (mental) set-up time. You can thus maximise the set-up time needed for the task and reduce duplication of effort.
  • Forecasting your activities: Your calendar can be a valuable production-planning tool (and not a dumping ground for random meetings or “orders” by others). If you want to use your calendar as better forecasting and planning tools, Grove suggest that two conditions should be met. Firstly, you should move toward the active use of your calendar, taking the initiative to fill the holes between the time-critical events with non-time critical though necessary activities. Secondly, you should say “no” at the outset to work beyond your capacity to handle.

 

Meetings, the output of managerial work – A lot of managerial tasks (see “High leverage activities” above) are best suited for face-to-face interactions, and more often than not, for meetings. Grove provides a useful distinction between two basic kinds of meetings: process-oriented and mission-oriented meetings (see Fig. 7 below). I love how at the end of the book’s chapter about meetings, Grove reminds us of a quote by the late management guru Peter Drucker who said that “If people spend more than 25 percent of their time in meetings, it’s a sign of malorganisation.”

 

Fig. 7 – Process-oriented and mission-oriented meetings – Taken from: Andrew S. Grove, “High Output Management”, pp. 72 – 87:

  • Process-oriented meetings: Knowledge is shared and information is exchanged during process-oriented meetings, which take place on a regular, scheduled basis. One-on-ones and team meetings are good examples of process-oriented meetings.
  • Mission-oriented meetings:¬†The purpose of mission-oriented meetings is to solve a specific problem and often produce a decision. These meetings are ad hoc affairs, not scheduled long in advance, because they usually can’t be. The key to the success of a mission-oriented meeting is what the chair of the meeting does. The person leading the meeting needs to have a clear understanding of the meeting’s objective – what needs to happen and what decision needs to be made.

 

 

Planning: today’s actions for tomorrow’s output – In High Output Management, Grove offers three simple steps of a¬† planning process (see Fig. 8 below). He describes planning as an ordinary everyday activity, something we all do – both in our professional and personal lives. The planning process enables you to reflect on what’s needed, the gap with the current situation and the specific actions necessary to close the gap.

 

Fig. 8 – Three steps your planning process should consist of – Taken from: Andrew S. Grove, “High Output Management”, pp. 103 – 120:

Step 1 РEstablish projected need or demand: What will the environment demand from you, your business, or your organisation?

Step 2 РEstablished your present status: What are you producing now? What will you be producing as your projects in the pipeline are completed? 

Step 3 РCompare and reconcile steps 1 and 2: What more (or less) do you need to do to produce what your environment will demand?

 

Main learning point:¬†“High Output Management” is probably one of the most valuable management books I’ve read in the last couple of years. If you’re looking for an inspiring but practical book about management, I suggest you look no further: High Output Management is the book for you!

Book review: “The Fearless Organization” by Amy C. Edmondson

Before you read this review of “The Fearless Organization” by Amy Edmondson, I’d encourage you to watch Amy’s Tedx Talk in which she talks about how to build psychological safety. Edmondson is a management professor at Harvard Business School and has done a tremendous amount of work in the area of psychological safety.¬† In her Tedx Talk, she describes psychological¬† safety as “a shared belief that the team is safe for interpersonal risk taking.” I believe that psychological safety is a critical yet often overlooked concept, and one which underpins Edmondson’s latest book, The Fearless Organization – Creating Psychological Safety in the Workplace for Learning, Innovation, and Growth.

 

 

These are the things that I took away from reading The Fearless Organization:

  1. Starting with “Personal and Organizational Change through Group Methods” – The aforementioned concept of psychological safety dates back to a 1965 book titled “Personal and Organizational Change through Group Methods” by Edgar Schein and Warren Bennis, which addresses the need for psychological safety for to help people cope with the uncertainty and anxiety of organizational change. Schein later noted that psychological safety was vital for helping people overcoming the defensiveness and “learning anxiety” they face at work, especially when something doesn’t go as they’d hoped or expected.
  2. Psychological safety isn’t a personality trait or difference – Based on her extensive research, Edmondson observes that psychological safety “is not a personality difference but rather a feature of the workplace that leaders can and must help create.” This observation made me think about the conditions that leaders can and must ‘enable’ to create a culture of psychological safety within the organisation, establishing a climate that supports learning. Edmondson mentions a number of other things which psychological safety is not, and which I’ve captured in Fig. 1 below.
  3. Measuring psychological safety – Perhaps you think of psychological safety as quite a fluffy idea, but it can actually be measured. I like the seven survey items which Edmondson introduced in her original research dissertation and which I’ve included in Fig. 3 below. She uses a seven-point Liker scale to obtain responses (from strongly agree to strongly disagree), and three out of seven items are expressed positively. Agreement with these items indicates greater psychological safety, whilst those items items expressed negatively (highlighted with an “R” for reverse), such that disagreement is consistent with higher psychological safety.
  4. Adopting an agile approach to strategy – I loved Edmondson’s point about viewing a company strategy as a hypothesis, to be tested continuously, rather than a plan. This perspective ties in with Edmondson’s broader theme around organisational learning. She argues that organisational learning – championed by company leaders but enacted by everyone – requires actively seeking deviations that challenge the assumptions underpinning a current strategy.
  5. Set the stage for psychological safety – In the book, Edmondson offers some useful tips with respect to ‘facilitating’ psychological safety, sharing a valuable toolkit (see Fig. 4 below).
  6. Proactive inquiry – Being able to say that you don’t know and driving participation through inquiry are two strong tenets of psychological safety. Edmondson shares some rules of thumb for asking a good question: one, you don’t know the answer; two, you ask questions that don’t limit responses to Yes or No, and three, you phrase the question in a way that helps others share their thinking in a focused way (see also Fig. 5 below).

Main learning point: In “The Fearless Organization”, Edmondson has written a valuable book about psychological safety. Even if you’re unable to create a truly fearless organisation anytime soon, Edmondson offers a number of valuable starting points with respect to critical aspects such as questioning, conflict and speaking up.

 

Fig. 1 – What Psychological Safety Is Not – Taken from: Amy Edmondson, The Fearless Organisation, pp. 15-19

  • Psychological safety isn’t about being nice – Working in a psychologically safe environment doesn’t mean that people always agree with one another for the sake of being nice. It also doesn’t mean that people offer unequivocal praise or unconditional support for everything you have to say. Psychological safety is about candour, about making it possible for productive disagreement and free exchange of ideas. Conflict inevitably arises in any workplace. Psychological safety enables people on different sides of a conflict to speak candidly about what’s bothering them.
  • Psychological safety isn’t a personality factor – Some have interpreted psychological safety as a synonym for extroversion. They might have previously concluded that people don’t speak up at work because they’re shy or lack confidence, or simply keep to themselves. Psychological safety, however, refers to the work climate, and climate affects people with different personality traits in roughly similar ways. In a psychologically safe climate, people will offer ideas and voice their concerns regardless of whether they tend to toward introversion or extroversion.
  • Psychological safety isn’t just another word for trust – Although trust and psychological safety have much in common, they aren’t interchangeable concepts. A key difference is that psychological safety is experienced at a group level. Further, psychological safety describes a temporally immediate experience.
  • Psychological safety isn’t about lowering performance standards – Psychological safety is not an “anything goes” environment where people aren’t expected to adhere to high standards or meet deadlines. It isn’t about becoming “comfortable” at work (see Fig. 2 below). Psychological safety enables candour and openness and, as such, thrives in an environment of mutual respect.

 

Fig. 2 – How psychological safety relates to performance standards – Taken from: Amy Edmondson, The Competitive Imperative of Learning, https://hbr.org/2008/07/the-competitive-imperative-of-learning

 

 

Fig. 3 – A survey measure of psychological safety – Taken from: Amy Edmondson, The Fearless Organisation, p. 20

  1. If you make a mistake on this team, it is often held against you. (R)
  2. Members of this team are able to bring up problems and tough issues.
  3. People on this team sometimes reject others for being different. (R)
  4. It is safe to take a risk on this team.
  5. It is difficult to ask other members of this team for help. (R)
  6. No one on this team would deliberately act in a way that undermines my efforts.
  7. Working with members of this team, my unique skills and talents are valued and utilised.

 

Fig. 4 – The leader’s tool kit for building psychological safety – Taken from: Amy Edmondson, The Fearless Organisation, p. 159¬†

Setting the stage:

Leadership tasks:

  • Frame the work – Set expectations about failure, and interdependence to clarify the need for voice
  • Emphasise the purpose – Identify what’s at stake, why it matters, and for whom

Accomplishes:

  • Shared expectations and meaning

Inviting participation:

Leadership tasks:

  • Demonstrate situational humility – Acknowledge gaps
  • Practice inquiry – Ask good questions and model intense listening
  • Set up structures and processes – Create forums for input and provide guidelines for discussion

Accomplishes:

  • Confidence that voice is welcome

Responding productively

Leadership tasks:

  • Express appreciation – Listen, acknowledge and thank
  • Destigmatise failure – Look forward, offer help. Discuss, consider and brainstorm next steps
  • Sanction clear violations

Accomplishes:

  • Orientation toward continuous learning

 

Fig. 5 – Attributes of a powerful question – Taken from: Amy Edmondson, The Fearless Organisation, p. 171

  • Generates curiosity in the listener
  • Stimulates reflective conversation
  • Is thought-provoking
  • Surfaces underlying assumptions
  • Invites creativity and new possibilities
  • Generates energy and forward movement
  • Channels attention and focuses inquiry
  • Stays with participants
  • Touches a deep meaning
  • Evokes more questions

 

Related links for further learning:

  1. https://www.businessinsider.com/amy-edmondson-on-psychological-safety-2015-11
  2. https://www.tandfonline.com/doi/abs/10.1080/00207284.1967.11642993
  3. https://hbr.org/2008/07/the-competitive-imperative-of-learning
  4. https://marcabraham.com/2017/08/17/book-review-radical-candor/
  5. https://www.huffingtonpost.com/matt-tenney/be-a-dont-knower-one-of-e_b_7242468.html
  6. https://hbr.org/2014/07/the-fukushima-meltdown-that-didnt-happen
  7. https://www.mindtheproduct.com/2018/05/how-to-improve-your-teams-conflict-competence-by-julia-whitney/
  8. https://marcabraham.com/2018/03/12/book-review-the-no-asshole-rule/

Book review: “The Messy Middle” by Scott Belsky

 

I’m sure a lot of us have common misconceptions about successful entrepreneurs and their companies. It’s easy to look at people who’ve ‘made it’ and think that their journey has been all plain sailing. Scott Belsky is such an entrepreneur, having founded Behance, a platform for creative professionals to show off their work, which eventually got acquired by Adobe. In “The Messy Middle”, Belsky eradicates any illusions about the process of creating – whether it’s a business or a product – being painless. He writes about the different stages of a startup lifecycle: the start, the middle and the finish. Belsky makes the point that “it’s not about the start and finish, it’s about the journey in between.”

 

Fig. 1 РScott Belsky, Navigating The Messy Middle РTaken from: https://medium.com/positiveslope/navigating-the-messy-middle-7ca6fff11966

 

At the start, there’s “pure joy” to begin with. That is before reality kicks in and things hit bottom. Belsky describes the finish as “final mile of journey and the recovery time between one project and the next”, the point where you can allow yourself to take a break and make a change. I, however, specifically bought the book because I was intrigued to read Belsky’s thoughts about the ‘messy middle’. Belsky writes about this period, as a collection of peaks – ‘optimising’ – and valleys – ‘enduring’. It’s this period which benefits from volatility. Volatility being positioned as a good thing might sound counterintuitive to some, but Belsky argues that “volatility is good for velocity”:

“The faster you move, the better your chances of learning and momentum to soar above the competition.”

Scott Belsky, The Messy Middle

 

To achieve this level of velocity, Belsky encourages conducting experiments, and lots of them. Running these experiments means that you’ll be both enduring the lows and optimising everything that works. In “The Messy Middle”, Belsky shares a ton of lessons learned and tips, particularly in relation to those stages of your company or product that are dominated by enduring and optimising. Allow me to give you a quick shopping list of those points by Belsky which resonated with me most:

  • Avoid validation in the form of false positives –¬† To objectively observe the performance of your new creation or product, put yourself in others’ shoes. Belsky refers to points made by Ben Horowitz about telling the truth¬†in this respect (see Fig. 1 below).
  • Celebrate progress and impact – Especially at the early stages, celebrate anything you can. Whilst you should avoid ‘fake wins’, celebrating quick wins and progress milestones is important.
  • Master the art of parallel processing – This involves being able to focus on a specific problem whilst also churning through the omnipresent anxiety and uncertainty involved in building things.
  • Friction unlocks the full potential of working together – Hardship brings your teams together and equips you to endure for the long haul.
  • Do Your Fucking Job (‘DYFJ’) – Leading a team through enduring times requires many “rip off the Band-Aid” moments. Nobody wants to inflict pain on their team, but quick and controlled pain is better than a drawn out infection. This also implies checking your ego at the door, instead concentrating on what needs to be done.
  • Self awareness as the only sustainable competitive advantage in business – Your sense of self is likely to shift when you’re at a peak or in a valley (see Fig. 2 below).
  • Break the long game down into chapters – Belsky recounts the approach by¬†Ben Silbermann, CEO of Pinterest, who breaks up every period of his company into chapters, each with a beginning, goal, reflection period, and reward. Chapters help break down the long timescale it takes to build something extraordinary. I like to think of them as strategic milestones, each time getting one step closer to achieving the vision for the business.
  • Do the work regardless of whose work it is – Everyone has an opinion, but few are willing to do something about it – especially if it falls outside their formal job description. Belsky describes his marvel at just how quickly an idea takes hold when someone proactively does the underlying work no one else clearly owned. He goes on to talk about how hiring for people with excitement about the idea, ability to contribute right away and the potential to learn is key when assembling a team.
  • Never stop crafting the “first mile” of your product’s experience – Whether you’re building a product, creating art, or writing a book, you need to remember that your customers make sweeping judgments in their first experience interacting with your creation – especially in the first 30 seconds. Belsky call this the “first mile”, and he argues that it’s important to prime your audience to the point where they know three things: 1. Why they’re there (2) What they can accomplish and (3) What to do next.
  • Identify and prioritise efforts with disproportionate impact – Belsky shares a nice prioritisation method by Jeffrey Kalmikoff, which Jeffrey uses to help choose where to focus his energy: look at each item on the table and assign a 3 for very important tasks that would make a huge impact on strategy and revenue, a 2 for something with less significance, and a 1 for something inconsequential.
  • Stress-test your opinions with radical truthfulness – “Sound judgment, achieved through aggressive truth seeking, is your most differentiating and deterministic trait. It’s all about being honest.” This is one of the founding principles behind Bridgewater, the leading hedge funded founded by Ray Dalio. One of the most fundamental principles driving behaviour at Bridgewater is the notion of “Know what you don’t know, and what to do about it.”

Main learning point:¬†In “The Messy Middle”, Belsky has written a book that I expect to be coming back to over the coming years; it’s a great reminder of the realities involved in creating things and contains a lot of valuable lessons learned as well as practical tips.

 

Fig. 1 – Ben Horowitz – Three methods for assigning meaning to hard truths, taken from https://a16z.com/2017/07/27/how-to-tell-the-truth/:

  • State the facts clearly and honestly.
  • If you caused it, explain how such a bad thing could occur.
  • Explain why taking the action is essential to the larger mission and how important that mission is.

 

Fig. 2 – Self awareness, by Scott Belksy – Taken from “The Messy Middle”, pp. 54-56:

  • Self awareness starts with the realisation that when you’re at a peak or in a valley, you’re not your greatest self.
  • Self awareness means understanding your own feelings enough to recognise what bothers you.
  • Self awareness means being permeable.
  • Self awareness comes from chronicling your patterns.
  • Self awareness means dispelling your sense of superiority and the myths that people believe about you.

 

Related links for further learning:

  1. https://www.themessymiddle.com/
  2. https://a16z.com/2017/07/27/how-to-tell-the-truth/
  3. https://www.adamgrant.net/
  4. https://www.mindtheproduct.com/2017/07/enter-matrix-lean-prioritisation/
  5. https://ryanholiday.net/stop-examine-reconsider/
  6. https://blackboxofpm.com/ruthless-prioritization-e4256e3520a9
  7. https://www.lifehack.org/articles/productivity/how-to-learn-what-you-dont-know.html
  8. https://en.m.wikipedia.org/wiki/Stroop_effect

Book review: “Principles” by Ray Dalio

“Principles” is the latest book by Ray Dalio – founder of Bridgewater, the world’s largest hedge fund. In this rather hefty tome of a book, Dalio offers an insight into the principles which he’s applied throughout his life and work, and his underlying reflections. He kicks off the book by explaining that “Good principles are effective ways of dealing with reality” and that “To learn my own, I spend a lot of time reflecting.”

 

preorder-ray-dalio-principles-book-95db76ead27720616fe067f8e730b9f17a1a1c0b115f4028e075cc73ce9dcd40.png

“Principles” consists of three parts. In the first part, titled “Where I’ coming from”, Dalio looks back on his career and the founding of Bridgewater. “Life Principles” is the name of the second part, and covers Dalio’s approach to life’s challenges and opportunities. Finally. part three covers Dalio’s “Work Principles”. Let me share the key things I’ve taken away from “Principles”, starting with Dalio’s Life Principles:

  • Embrace reality and deal with it – Dalio shares an important equation which in his view makes for a successful life: Dreams + Reality + Determination = A Successful Life. For the ‘reality’ component of this equation to work, Dalio encourages his readers to be radically open minded and radically transparent.
  • Pain + Reflection = Progress – Dalio’s point about “going to the pain rather than avoiding it” resonated with me (see Fig. 1 below). It’s easy to dismiss this statement because it’s coming from a highly successful investor, but I’d flip that as I can see how someone like Dalio has gone through his own share of pain to get to where’s he gotten to, and learned along the way.
  • Using the 5-step process to get what you want out of life – Start with having clear goals (step 1), followed by identifying but not tolerating the problems that stand in the way of your achieving those goals (step 2), then you accurately diagnose¬†the problems to get at their root causes (step 3), design plans that will get you around them (step 4) and, finally, do what’s necessary to push these designs through to results (step 5). Dalio depicts this as a continuous process and people can benefit from applying this model to achieve their goals (see Fig. 2 below).
  • Understand that people are wired very differently – Dalio stresses the fact that all people are wired very differently, and zooms in on the differences between left and right brained thinking (see Fig. 3 – 4 below).

 

Fig. 1 – Going to the pain instead of avoiding it – Taken from: Ray Dalio – Principles, p. 154

  • Identifying, accepting, and learning how to deal with your weaknesses.
  • Preferring that the people around you be honest with you rather than keep their negative thoughts about you to themselves.
  • Being yourself rather than having to be strong where you are weak.

 

Fig. 2 – Ray Dalio’s 5-step process – Taken from: Ray Dalio – Principles, p. 171

5stepprocess.jpg

Fig. 3 – Differences between left and right brain – Taken from: https://visme.co/blog/left-brain-right-brain-marketing/

Brain1.jpg

 

Fig. 4 – Understand the differences between right-brained and left-brained thinking – Taken from: Ray Dalio – Principles, p. 223

  1. The left hemisphere reasons sequentially, analyses details, and excels at linear analysis. “Left-brained” or “linear” thinkers who are analytically strong are often called “bright.”
  2. The right hemisphere thinks across categories, recognises themes, and synthesises the big picture. “Right-brained” or “lateral” thinkers with more street smart are often called “smart.”

 

Dalio’s Work Principles are dominated by the concept of an Idea Meritocracy – i.e. a system that brings together smart, independent thinkers and has them productively disagree to come up with the best possible collective thinking and resolve their disagreements in a believability-weighted way (see Fig. 5 below). Dalio successfully implemented an Idea Meritocracy at Bridgewater and shares the components of such a system in his book:

Idea Meritocracy = Radical Truth + Radical Transparency + Believability – Weighted Decision Making

  • Radical Truth – Talking openly about our issues and have paths for working through them.
  • Radical Transparency – Giving everyone the ability to see everything. Radical transparency reduces harmful office politics and the risks of bad behaviour because bad behaviour is more likely to take place behind closed doors than out in the open.
  • Believability – Dalio defines believable people “as those who have repeatedly and successfully accomplished the thing in question – who have a strong track record with at least three successes – and have great explanations of their approach when probed.”
  • Thoughtful Disagreement – The concept of Believability is closely linked to the art of Thoughtful Disagreement; the process of having a quality back-and-forth in an openminded and assertive way to see things through each other’s eyes.
  • Weighted Decision Making – At Bridgewater, employees have different believability weightings for different qualities, like expertise in a particular subject, creativity, ability to synthesise, etc. Dalio explains that in order to have a true Idea Meritocracy one needs to understand the merit of each person’s ideas.
  • Prerequisites for an Idea Meritocracy – To have an Idea Meritocracy three conditions need to be in place. Firstly, put your honest thoughts on the table. Secondly, have thoughtful disagreement (see above). Thirdly, abide by agreed-upon ways of getting past disagreement.
  • Mistakes are part of the game – Dalio has a refreshing outlook on the role and value of mistakes, which he treats as “a natural part of the evolutionary process”. It’s important in this respect to assess whether people recognise and learn from their mistakes. Dalio distinguishes between people who make mistakes and who are self reflective and open to learning from their mistakes and those who are unable to embrace their mistakes and learn from them.
  • Get people to focus on problems and outcomes – Assign people the job of perceiving problems, give them time to investigate, and make sure they have independent reporting lines so that they can convey problems without any fear of recrimination. To perceive problems, compare how the outcomes are lining up with your goals. Dalio also offers some valuable tips on how to best diagnose problems (see Fig. 6 below).
  • Avoid the “Frog in the boiling water” syndrome – Apparently, if you throw a frog into a pot of boiling water it will jump out immediately, but if you put it in room-temperature water and gradually bring it to a boil, it will stay in the pot until it dies. If one uses this syndrome as a metaphor for professional life, it signifies people’s tendency to slowly get used to unacceptable things that would shock them if the say them with fresh eyes.
  • Don’t just pay attention to your job – Instead, pay attention to how your job will be done if you’re no longer around. Dalio talks about the ‘ninja manger’ as “somebody who can sit back and watch beauty happen-i.e. an orchestrator. If you’re always trying to hire somebody who’s as good as or better than you at your job, that will both free you up to go on to other things and build your succession pipeline.”

 

Fig. 5 – The Idea Meritocracy as is the best way to make decisions – Taken from: https://twitter.com/RayDalio/status/1066357616350253057

Dsx2YkGXcAAZVNC.png

 

Fig. 6 – Diagnose problems to get at their root causes – Taken from: Ray Dalio – Principles, p. 484 – 490

To diagnose well, ask the following questions:

  • Is the outcome good or bad?
  • Who is responsible for the outcome?
  • If the outcome is bad, is the Responsible Party incapable and / or is the design bad?

 

Main learning point:¬†Whilst “Principles” feels a tad repetitive at times and some of Dalio’s ideas might not be easy to implement, I feel that Dalio’s principles can provide great direction for all people working in organisations, big or small.¬† His reflections on things such as transparency and decision-making will be valuable to anyone reading this great book.

 

Related links for further learning:

  1. https://youtu.be/c1OoWdqbKdg
  2. https://www.ted.com/talks/ray_dalio_how_to_build_a_company_where_the_best_ideas_win
  3. https://www.youtube.com/watch?v=B9XGUpQZY38
  4. https://www.youtube.com/watch?v=S7hNda9DVxo