tag:blogger.com,1999:blog-60885547106154105972024-03-21T09:18:06.321-04:00Ray SheenProduct and Process Innovation: Smarter Ways to Get Things DoneRay Sheenhttp://www.blogger.com/profile/08035263259880392470noreply@blogger.comBlogger90125tag:blogger.com,1999:blog-6088554710615410597.post-39050501467763361412021-10-05T13:25:00.000-04:002021-10-05T13:25:02.887-04:00How Digital Transformation empowered leaders at all levels<iframe width="480" height="270" src="https://youtube.com/embed/ePkKBltpDJg" frameborder="0"></iframe>Ray Sheenhttp://www.blogger.com/profile/08035263259880392470noreply@blogger.com19tag:blogger.com,1999:blog-6088554710615410597.post-12117725881597815322021-10-05T13:22:00.001-04:002021-10-05T13:22:29.432-04:00Quick Pivots are part of Digital Transformation<iframe width="480" height="270" src="https://youtube.com/embed/iusvkt3neTw" frameborder="0"></iframe>Ray Sheenhttp://www.blogger.com/profile/08035263259880392470noreply@blogger.com0tag:blogger.com,1999:blog-6088554710615410597.post-30592722454951510852020-03-16T16:56:00.001-04:002020-03-16T16:56:25.225-04:007 Tips for Working from HomeThanks to the Corona Virus, many people are suddenly forced to work from home. Here are some tips to make that transition smoother.<br />
<br />
<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/0dLTAK3Exwo" width="560"></iframe>Ray Sheenhttp://www.blogger.com/profile/08035263259880392470noreply@blogger.com4tag:blogger.com,1999:blog-6088554710615410597.post-14924875796828443802019-11-06T23:38:00.003-05:002019-11-06T23:38:53.527-05:00The Triangle Becomes a Pentagon - The Digitally Transformed Workforce<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgzbzH3N-ckyosKxo5CvKo88U0ysuzX8Qg1hbumMt7CAcI13Yg0VwONjxgRkH6tCj8Vdgr6hp503c2NnG9PMZ7_WoneWsTuw-gjkhloLZL8oDpdsfJ5tt2hcEef08XIEgjf4G3Y2rWMg4g/s1600/pyramid.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="426" data-original-width="1122" height="121" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgzbzH3N-ckyosKxo5CvKo88U0ysuzX8Qg1hbumMt7CAcI13Yg0VwONjxgRkH6tCj8Vdgr6hp503c2NnG9PMZ7_WoneWsTuw-gjkhloLZL8oDpdsfJ5tt2hcEef08XIEgjf4G3Y2rWMg4g/s320/pyramid.png" width="320" /></a></div>
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You may have heard that digital transformation will change
the nature business.<span style="mso-spacerun: yes;"> </span>Well, you can at
least count on it changing the nature of the workforce. <span style="mso-spacerun: yes;"> </span>Digital transformation is being referred to as
the fourth industrial revolution.<span style="mso-spacerun: yes;"> </span>Each
time our society went through an industrial revolution, it created a massive
change in the makeup of the workforce and the skills and abilities needed. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b>Industrial Revolutions<o:p></o:p></b></div>
<div class="MsoNormal">
<b><br /></b></div>
<div class="MsoNormal">
The first industrial revolution occurred in the late 1700’s
and early 1800’s.<span style="mso-spacerun: yes;"> </span>It was driven by the
introduction of steam power.<span style="mso-spacerun: yes;"> </span>Prior to
this time, the vast majority of the workforce was slave labor or serf labor
performing low-skill manual tasks.<span style="mso-spacerun: yes;"> </span>Thanks
to the first industrial revolution, the steam engine<span style="mso-spacerun: yes;"> </span>provided the brute force power needed by the
early industrial companies.<span style="mso-spacerun: yes;"> </span>Massive
numbers of jobs disappeared and societal upheaval, such as the Luddite riots,
occurred. <span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
<div class="MsoNormal">
<span style="mso-spacerun: yes;"><br /></span></div>
<div class="MsoNormal">
The second industrial revolution started in the late 1800’s
and went through the early 1900’s.<span style="mso-spacerun: yes;"> </span>It
was driven by the introduction of the mass production assembly line.<span style="mso-spacerun: yes;"> </span>In this revolution, the workforce became adept
at one task or activity.<span style="mso-spacerun: yes;"> </span>This led to dramatically
lower product cost while improving quality.<span style="mso-spacerun: yes;">
</span>The economy boomed and the workforce transformed from mostly agrarian
workers to mostly factory workers and a vibrant middle class.<span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
<div class="MsoNormal">
<span style="mso-spacerun: yes;"><br /></span></div>
<div class="MsoNormal">
The third industrial revolution was the advent of electronics
and computers in both products and processes.<span style="mso-spacerun: yes;">
</span>Business success now leveraged complexity that was enabled by the
computer systems.<span style="mso-spacerun: yes;"> </span>Individuals in the
workforce had to develop digital skills applicable to their functional role.<span style="mso-spacerun: yes;"> </span>People required specialized training and
technical certificates.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>To get a job, you needed a degree.<span style="mso-spacerun: yes;"> </span>Often the workers became isolated as they
operated the computer system or equipment in use at their workstation – whether
it was on a factory floor or more commonly in an office cubicle.<span style="mso-spacerun: yes;"> </span>This led to the rise of the subject matter
expert.<span style="mso-spacerun: yes;"> </span>At the same time, many decisions
about products and processes were forced higher into the organization where managers
had the experience, oversight and understanding of the complex systems.<span style="mso-spacerun: yes;"> </span>The workforce became a host of isolated specialists
and a person’s career growth was based upon their functional knowledge, not
their tenure with their employer. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b>Industry 4.0<o:p></o:p></b></div>
<div class="MsoNormal">
<b><br /></b></div>
<div class="MsoNormal">
Now we have the fourth industrial revolution.<span style="mso-spacerun: yes;"> </span>This is driven by the introduction of smart
devices and artificial intelligence.<span style="mso-spacerun: yes;">
</span>This requires the connectivity and processing capacity to create ready
access to real-time data throughout the business processes.<span style="mso-spacerun: yes;"> </span>Real-time knowledge and information changes
how people interact and the scope of their work.<span style="mso-spacerun: yes;"> </span>The availability of data and the application
of smart devices often frees both customers and the workforce to interact
virtually on a 24/7 basis with respect to each unique order or account.<span style="mso-spacerun: yes;"> </span>We used to say in the organization that
knowledge and data were power.<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>In Industry 3.0, subject matter experts and
managers held power by closely controlling the flow of information.<span style="mso-spacerun: yes;"> </span>Decisions were forced to the highest levels
in the organization.<span style="mso-spacerun: yes;"> </span>Thanks to the
Industry 4.0 revolution, the knowledge and data are available to almost anyone,
and both customers and employees expect instant decisions.<span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
<div class="MsoNormal">
<span style="mso-spacerun: yes;"><br /></span></div>
<div class="MsoNormal">
As in the other revolutions, we are starting to see a
massive shift occurring in the workforce.<span style="mso-spacerun: yes;">
</span>Many of the routine administrative processing jobs, the paper pushers
and gatekeepers, have vanished.<span style="mso-spacerun: yes;"> </span>Even
some of the highly skilled positions that relied on specialized knowledge and
abilities are being automated and replaced with smart devices.<span style="mso-spacerun: yes;"> </span>If we look at the organizational chart of an
Industry 4.0 company, it no longer looks like the pyramid of old with
entry-level workers and process operators at the bottom of the pyramid who over
time can become subject matter experts, front-line managers, and finally senior
managers of the organization.<span style="mso-spacerun: yes;"> </span>Now the
organization chart looks more like a pentagon.<span style="mso-spacerun: yes;">
</span>Many of the entry-level and process positions are replaced with digital
assets, and even some of the subject matter experts are now automated systems
and algorithms running the business processes.<span style="mso-spacerun: yes;">
</span><o:p></o:p></div>
<div class="MsoNormal">
<span style="mso-spacerun: yes;"><br /></span></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiT43Z7nKfMQdxrDthes-Arh6w6jEaUShJBsi1Qc0uCl5vXSRaSptfN41x7nGz_E8312L5BaH1N6bQh1_xT8HI52_jVRQxDVmuO6rTFJdJ0Cr_i156zg2YurrxCRXcATUjXpDfjvBKOu-o/s1600/pyramid+to+pentagon.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="397" data-original-width="1600" height="97" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiT43Z7nKfMQdxrDthes-Arh6w6jEaUShJBsi1Qc0uCl5vXSRaSptfN41x7nGz_E8312L5BaH1N6bQh1_xT8HI52_jVRQxDVmuO6rTFJdJ0Cr_i156zg2YurrxCRXcATUjXpDfjvBKOu-o/s400/pyramid+to+pentagon.png" width="400" /></a></div>
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<span style="mso-spacerun: yes;"><br /></span></div>
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<b>Workforce Transformation</b></div>
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<b><br /></b></div>
<br />
<div class="MsoNormal">
This transformation of the workforce has significant impact
for education, training, hiring, and careers.
The career path in Industry 4.0 is very different from the path to
success that has been promoted by our education system and many HR
departments. Let’s briefly consider the
role and responsibilities of each of these workforce levels in Industry 4.0 and
then the educational and career implications. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
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The number of process operators and entry level positions
within an Industry 4.0 company are sharply reduced as compared to an Industry
3.0 company. Much of this work is done
by digital assets. The paper pushers and
gate keeper roles have disappeared.
Based upon the ROI for creating or acquiring a digital asset, entry
level positions are also disappearing.
Just consider the retail environment, for example. Many stores now have
self-checkout and often customers order online without interacting with a
salesperson. The base of the pyramid has
already shrunk, and it will continue to shrink as the capability of digital
assets grows.<o:p></o:p></div>
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<br /></div>
<div class="MsoNormal">
The role of the Subject Matter Experts (SME) is still needed,
but it is changing. In Industry 4.0 they
are often on the front line of the business processes and have been empowered
to make day-to-day decisions. Their authority
has increased, and they are normally expected to be problem solvers and real-time
solution providers. They can do this
since they have immediate access to all relevant data and can connect with other
SMEs, both inside and outside the organization, to determine the best
decision. In an Industry 4.0 company, digital
assets handle the routine process management work that SME’s have done in the
past. The Industry 4.0 SME takes on the
special cases and provides the unique value-added solution for these. This means the skill set and responsibility
have expanded. The SMEs still need the
appropriate subject matter expertise.
But in addition, they need access to cross-functional process data and understand
how to interpret this real-time data.
They also need the inter-personal expertise and decision-making skills
that are vital to successful process management and problem-solving decisions. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The frontline manager role also changes in an Industry 4.0
company. They are not as involved in
day-to-day decision-making. That is done by SMEs. But the speed of change, both technical and
organizational, is rapid in Industry 4.0 companies. So, the frontline managers are coaches, trainers,
and change agent leaders that help their people gain and maintain the evolving skill
set needed to do their job. These
positions are not based upon seniority, but rather on the leadership and
facilitation skills of the individual.
These individuals must be leaders of change who are constantly hiring
and training the workforce to equip them to perform the evolving business
processes.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The role and scope of senior managers in Industry 4.0 is
similar to that of managers in Industry 3.0 companies. They are responsible for strategic direction,
resource allocation, and monitoring the execution of all aspects of the
business. However, although the role and
scope are similar, the means by which they do this and the pace of their
decision-making is radically different.
They do not sit at the top of the pyramid and wait for filtered and
sanitized data to work its way up.
Instead, they have instant access to real-time data of product and
process performance throughout the business.
While this provides improved insight and understanding, it is also can
be an enabler for micro-management. To
be effective, these individuals must delegate the authority for real-time
decision-making and then focus their decisions on strategy, asset allocation,
and personnel development. They shouldn’t
try to make all the decisions, instead they should point the direction, enable
the teams of SMEs, and help frontline managers cope with mid-course
corrections. And there will be the need
for many mid-course corrections because the business environment is constantly
changing. Five years plans, annual
strategy meetings, and quarterly reporting is much too slow for Industry
4.0. But chaotic and continuous
redirection and micro-management will exhaust and frustrate the organization. These individuals must be outstanding leaders
to guide and direct their organizations. <o:p></o:p></div>
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<br /></div>
<div class="MsoNormal">
<b>Industry 4.0 Personnel Development<o:p></o:p></b></div>
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<b><br /></b></div>
<div class="MsoNormal">
Finally, let’s consider a few implications for education,
training, hiring, and careers within an Industry 4.0 organization. First with respect to education, everyone
needs basic skills for using technology.
And, of course, they need the ability to communicate well and understand
basic concepts about the world and the people they interact with. These are the traditional academic
disciplines of reading, writing, math, science, history, and sociology. The individual will also need foundational
knowledge in their selected discipline.
But a key here is that they have foundation knowledge that they can rely
on as they adapt to the ever-changing environment in which they establish their
area of functional expertise. The
education should encourage the student to explore new ideas and concepts using
these as appropriate to make decisions and solve problems. <o:p></o:p></div>
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<br /></div>
<div class="MsoNormal">
While education is important for foundational understanding,
the rapidly changing business environment and technologies will require
continuous training for subject matter experts.
The subject matter expertise rapidly becomes stale. An Industry 4.0 company must create a strong
training program that helps the subject matter experts remain experts. In addition, the training and development system
should lead the new hires into positions of subject matter expertise. This will often require developing their
interpersonal and problem-solving skills.
This means the learning management system for an organization will
become a strategic asset and a critical portion of the organizational infrastructure. This is the most significant value-added
activity of the HR department.<o:p></o:p></div>
<div class="MsoNormal">
In the Industry 4.0 environment, products and processes are
constantly adapting. Some of the
individuals in the organization may choose to adapt to the change by following
the technology or process to a different company rather than changing their
skill set and remaining with their current company. Added to this, the need for companies to
quickly scale up and scale back as their fortunes ebb and flow in the digital
economy leads to high degree of employee turnover and the use of temporary
employees. In fact, many people in the
workforce want and expect to change jobs frequently – they are part of the “gig
economy.” The front-line managers will
be in a constant mode of recruiting hiring and assimilating new employees –
some temporary and some permanent. The
organization will be constantly filling the pipeline with candidates and
rebuilding their workforce.<o:p></o:p></div>
<div class="MsoNormal">
One of the most significant changes from a workforce
perspective is the impact that Industry 4.0 has on promotions and careers. Promotions are not based upon seniority. They are based upon subject matter expertise. To move from the entry level position to a
Subject Matter Expert within a company will be based upon technical knowledge
and problem-solving skills. Leadership
and team management skills are required to move from the SME role to front-line
manager. The opportunity for promotion
within a company is associated with the changes in the company and the growth of
the individual, not the retirement of someone’s supervisor. <o:p></o:p></div>
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<br /></div>
<div class="MsoNormal">
Organizational charts
are fluid. Positions will be created and
disappear again, perhaps within a matter of months. The old maxim that each individual is
responsible for their own career is more true than ever before. The individual’s ability and desire to adapt
to change, and their personal leadership skills determine their career
path. HR organizations must also be
nimble to create urgently needed positions and eliminate suddenly obsolete
ones. The HR organization should be
prepared to explain and guide individuals through this sea change in workforce
management.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
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</div>
<div class="MsoNormal">
What I have described is the likely result of a company
embracing Industry 4.0. But we must also
recognize that change is difficult. The
previous industrial revolutions took decades before the majority of companies
had adopted the new practices. We are
about 10 years into this revolution. So,
if your company is not on-board yet, there is still time to catch up. But don’t delay too long. As more companies embrace the Industry 4.0 business
model, your old workforce and people management practices will soon be viewed
as an oddity and anachronism.<o:p></o:p></div>
<br />Ray Sheenhttp://www.blogger.com/profile/08035263259880392470noreply@blogger.com0tag:blogger.com,1999:blog-6088554710615410597.post-4668139225645202632019-07-19T12:57:00.003-04:002019-07-19T12:57:42.604-04:00Lesson from the Moon Landing: Expect Unexpected Transformations<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhW31QohDvETnux1eU0Nds7kajZOC4ft9xTrHV4rpeQnH_OMiUCV54b5YyryPzAZWYzltLCVAviipn8oDde3F-OoJfgz0jxZ2i9cFUxVxj4zywGh9L2X_k7MYMJ6YobN2RM8AspeFtwpNI/s1600/moon+landing.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="720" data-original-width="1280" height="180" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhW31QohDvETnux1eU0Nds7kajZOC4ft9xTrHV4rpeQnH_OMiUCV54b5YyryPzAZWYzltLCVAviipn8oDde3F-OoJfgz0jxZ2i9cFUxVxj4zywGh9L2X_k7MYMJ6YobN2RM8AspeFtwpNI/s320/moon+landing.png" width="320" /></a></div>
Fifty years ago on July 20, 1969, Apollo 11 astronauts Neil Armstrong
and Buzz Aldrin were the first men to land on the moon. This
undertaking was an enormous challenge, requiring technical innovation,
countless hours of devoted work, and a big dose of courage. It was
heralded at the time as the dawn of space travel. We were told that
soon everyday people would be traveling to other planets and then the
stars. Well, that hasn’t happened yet, but let’s look at what happened
instead. The transformation based upon space travel did not go exactly
as planned. Instead it has gone far <em>beyond</em> what was envisioned. Let’s consider some of the reasons for the technical and cultural revolution that has ensued.<br />
<br />
When President Kennedy made his famous speech in 1961 stating that
the USA would put a man on the moon before the end of the decade, there
was no clear plan for how to do that. There were some general ideas,
but there were many things yet to be discovered and developed. However,
the focus on putting a man on the moon did bring together three vital
enabling elements of the space program’s success. First, there was a
clear goal or mission that galvanized everyone involved into action.
Second, National Aeronautics and Space Administration (NASA) went on a
hiring spree to bring in bright, young, technically savvy engineers and
scientists (the average age of Apollo 11’s mission control team was 28)
who could both envision and design the needed systems. Third, the
integrated circuit technology (computer chip – invented in 1961)
received a massive investment which set it on a path of ever-increasing
processing capability at an ever-decreasing size and use of power. This
combination of a clear goal, innovative resources, and technological
capability came together to give us the moon landing on July 20, 1969.<br />
<br />
The USA space program’s innovative journey of discovery has impacted
far more than the transportation sector in society. The program
fundamentally transformed society around the world. This was not part
of the original plan. But the results of the space program opened doors
that were beyond most people’s wildest dreams. Let me just point out
two of the innovations that occurred and their impact.<br />
<br />
As already mentioned, the development of the integrated circuit, or
computer chip, was greatly accelerated by the NASA program. The result
was the creation of an industry and technology that was not even
foreseen in science fiction at the time. Today, virtually every
electrical device that is manufactured has a chip in it doing data
processing or communication. When the space program started, computers
were based upon vacuum tube technology. Today, vacuum tubes are only
found in museums. This technical innovation, the computer chip, did not
stay confined to its original sphere of development in the space
program. Computer use spread and transformed every other aspect of
society.<br />
<br />
That is the hardware perspective, so now let’s think about software
innovation. When NASA started the space program, the program plan did
not include the word “software.” There was no budget, no resources, and
no time allowed in the plan to develop software because software as we
now know it did not exist. Keep in mind this was ten years before
Microsoft was started. The only people who interacted with computers
were engineers and scientists. The idea of a user interface did not
exist. NASA pioneered the development of the principles of software
design that were needed to make the integrated circuit computer chip
work within the system. Part of that was the creation of the user
interface keypad and screen. A new technical discipline, software, was
born. It has grown to dominate innovation and 50 years after the start
of the space program Marc Andressen wrote an article for the Wall Street
Journal, “<a href="https://www.wsj.com/articles/SB10001424053111903480904576512250915629460">Why Software is Eating the World</a>.” Software controls how we interact with technology, and that often includes how our customers interact with us.<br />
<br />
As we look at society today, nearly every aspect of our life has been
impacted by innovations that can trace their roots back to the NASA
space program. Consider the field of medicine. Medical imaging
technology, mapping the genome, and patient monitoring would be
impossible without the innovations from the space program. Or consider
communication. Smart phones, wireless systems, even the internet, have
roots in the space program. Transportation systems today are orders of
magnitude better than the 1950’s in speed and reliability. We have seen
the impact of these transformative systems in industries like retail,
agriculture, banking, energy, and entertainment. And the nature of the
changes and improvement are far beyond anything envisioned by the NASA
engineers who were trying to put a man on the moon.<br />
<br />
So, what does this have to do with digital transformation? Your
business, once it has started on the transformation journey, will likely
change in ways that you can’t even envision at this time. Today we
can’t imagine doing business without our smart phones, yet the iPhone
was first introduced in 2007. There are millions of apps that have
integrated the smartphone into every aspect of our life. The
capabilities of Siri and Alexa are constantly expanding as household
systems are integrated with those devices. Other new technologies, like
blockchain, have the potential to change the way business is transacted
and to transform culture and society. Your digital transformation
plans may not include these items now, but if they become dominant you
will need to adapt. The point is, you cannot know precisely where your
digital transformation will take you. You may have a goal, but it is
just a door to many more possibilities.<br />
<br />
Now that may sound scary. Why invest in something if you can’t
predict the result of the investment? There are two reasons. The first
is that your competitors are investing in digital transformation and
when they discover the new business models and opportunities, your
business will soon be like the vacuum tube manufacturers of the 1950s.
The second reason is that digital transformation opens up a world of
possibilities and opportunities. The fact that you don’t know all of
them at the beginning is not a reason to hold back. Instead, go forward
and select the path that you believe will be best for you, your
company, and society. Digital transformation is an enabler of the
future. Go down the path and see what the future reveals.<br />
<br />
Let’s go back a moment and look at the elements of the NASA space
program that combined to put a man on the moon. You should strive to
ensure your digital transformation has these same elements. First was
the <em>clear goal.</em> While there are many opportunities that are
created by digital transformation, a near-term goal is needed to focus
the effort. This goal should come from senior leadership and be clearly
articulated and supported. The second is to apply the <em>appropriate resources</em>
to achieve the goal. Assign the people in your organization who are
expert at what you do and what you want your business to become. If you
don’t have them, hire them and give this team the <em>time and money</em> to do the job right. Finally, <em>embrace the technologies</em>
that are at the heart of digital transformation. The specific
applications will be based upon your industry and your products.
Regardless of the application, you need the core of digital
communication, data acquisition from every product and process in your
value chain, data processing to turn that data into business
intelligence, and the computer processing power do each of those.<br />
<br />
So, let’s commemorate the moon landing and the insight, innovation,
and courage of all those involved. Then let’s use the example of the
NASA space program to inspire our own digital transformation. The
future may not be exactly what we predict – it’s likely to be far
better!<br />
<br />
First published at <a href="https://www.institutefordigitaltransformation.org/lesson-from-the-moon-landing-expect-unexpected-transformations">https://www.institutefordigitaltransformation.org/lesson-from-the-moon-landing-expect-unexpected-transformations</a>Ray Sheenhttp://www.blogger.com/profile/08035263259880392470noreply@blogger.com0tag:blogger.com,1999:blog-6088554710615410597.post-3449909561162039592019-04-26T14:03:00.000-04:002019-04-26T21:23:04.072-04:00Four Lean Six Sigma Principles That Strengthen Your Digital Transformation<br />
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Digital Transformation is a major element of strategy for
many businesses. But according to studies done by Forbes and McKinsey, most
digital transformations are failing. There are many reasons for the failures -
some are cultural, some are related to technology, and some are resource based.
<span style="mso-spacerun: yes;"> </span>Regardless of the underlying reasons, a
company with a strong Lean and/or Six Sigma program can leverage this program
to improve the success of their digital transformation.<o:p></o:p></div>
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<br /></div>
<h3>
<b style="mso-bidi-font-weight: normal;">Digital
Transformation Challenges</b></h3>
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According to the <a href="https://www.forbes.com/sites/brucerogers/2016/01/07/why-84-of-companies-fail-at-digital-transformation/#72e1e436397b">Forbes</a>
and <a href="https://www.mckinsey.com/featured-insights/leadership/changing-change-management">McKinsey</a>
research, the primary reasons for digital transformation failure are cultural. And
just to be clear, the reason was “corporate” culture. Issues included top-down
decision-making, inappropriate organizational structure alignment, lack of senior
management support, and a poor understanding of digital trends and approaches. But
the issues were not only cultural. There were also problems with poor process
definition and control, and a lack of data and use of data management techniques.
Of course, there were also challenges such as finding the right talent, acquiring
the technical infrastructure – or finding the right partner to augment the
infrastructure, and funding the projects to include the training of the
workforce. What is clear is that digital transformation challenges are not
limited by the technology. <i style="mso-bidi-font-style: normal;">They are
limited by the organizational capabilities and resources.</i><o:p></o:p></div>
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<i style="mso-bidi-font-style: normal;"><br /></i></div>
<h3>
<b style="mso-bidi-font-weight: normal;">Lean Six Sigma
Characteristics</b></h3>
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Fortunately, Lean Six Sigma can assist to overcome these
challenges. Let’s review the characteristics of Lean and Six Sigma. These
methodologies, which are often combined, are problem solving approaches to
drive continuous improvement. Lean emphasizes the process flow and knowledge of
why the process slows down or is less than 100% effective in delivering exactly
what the customer wants. The ultimate goal of Lean is to eliminate waste. Six
Sigma relies on a structured problem-solving process that is grounded on data
associated with the problem, process and products being studied. The problem is
defined from the customer perspective with data. The problem is analyzed
statistically using data. A solution is implemented, and data is again used to
demonstrate it works and the situation is improved. The ultimate goal of Six
Sigma is to eliminate variation and problems. In both cases, you are likely to
have a trained cadre of individuals who are accustomed to using a structured
process for driving customer-focused continuous improvement that relies on
data. If incorporated into the digital transformation approach, these will be a
tremendous advantage.<o:p></o:p></div>
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Let’s look at four principles of Lean Six Sigma that can
accelerate and support your digital transformation:<o:p></o:p></div>
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<h3>
<b style="mso-bidi-font-weight: normal;">Principle One:
Understand Your Processes</b></h3>
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A common approach for achieving digital transformation is to
automate manual processes or even better, to replace them with technology-based
systems that can perform the same functions in a fraction of the time and with
a fraction of the resources. The Lean Value Stream Map and data boxes for each
business process are an excellent method for documenting the existing processes
to then either automate them or replace them with a system that has equivalent
functionality. A problem that has often occurred when doing digital
transformation is that everyone has a different idea of what the digitally transformed
system should do. The Lean analysis removes that uncertainty. In addition, a
Six Sigma project to find and fix problems in the existing process before it is
digitally transformed will help to ensure that the new process does not start
off with a fatal flaw. The process knowledge gained with Lean and Six Sigma
will accelerate your ability to transform.<o:p></o:p></div>
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<h3>
<b style="mso-bidi-font-weight: normal;">Principle 2: Rely on
Data </b></h3>
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Digital business systems use digital data – lots of data. When
implementing a digital transformation, an organization often finds that through
the use of the Internet of Things and digital portals for their customers, they
are creating massive amounts of real-time data. In addition, the data mining of
unstructured databases creates even more data and information. The organization
can quickly reach data overload and not know how to prioritize and use the data
that is generated. This creates confusion for the organization trying to
implement the digital transformation. <span style="mso-spacerun: yes;"> </span>Lean and Six Sigma establish disciplines for
using data to make day-to-day business and process management decisions. The
data box found at each step in a Lean Value Stream Map is a great vehicle for
aggregating the data and setting warning flags if the data shows the process or
product is unsatisfactory. The final phase of Six Sigma, the Control phase,
encourages the establishment of statistical process control charts to track
process or product performance with real-time data. The use of these
disciplines prepares the organization to establish and manage the business
operations with data and analytics. When this has become standard practice, it
is easy to use more advanced digital tools of a digital transformation to
maintain that discipline. <o:p></o:p></div>
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<h3>
<b style="mso-bidi-font-weight: normal;">Principle 3: Use Problem
Solving Methodology</b></h3>
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The third way in which Lean and Six Sigma can improve a
digital transformation initiative is to institutionalize a problem solving
methodology and continuous improvement mindset. When undergoing a
transformation, there will inevitably be some unexpected situations that have a
detrimental effect on business performance and customer satisfaction. If these
situations are not quickly and effectively resolved, they can derail the entire
transformation as both customers and employees reject the new digital processes
and products. Lean and Six Sigma provide a structured method to confidently
identify the root causes of problems using numeric and statistical tools. They
also provide a baseline of performance against which solutions can be evaluated
to ensure they have the desired effects. While everyone knows that problems
happen, when there is confidence and trust in the methods used to resolve the
problem, the organization maintains the momentum that will sustain them through
the transformation. Without a trusted methodology, the organization often flips
and flops around, trying to decide if the issue is a problem and what should be
done about it. This only creates delays and confusion along with extra costs
and loss of customers. Over the years, Lean and Six Sigma have established a
proven track record of problem solving and continuous improvement.<o:p></o:p></div>
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<h3>
<b style="mso-bidi-font-weight: normal;">Principle 4: Establish
Culture of Customer Preeminence</b></h3>
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The fourth way in which Lean and Six Sigma will assist in a
digital transformation is by keeping the organization’s focus on the customer
experience and customer impact. It is very easy when implementing process and
technology changes to become internally focused. After all, that is what you
are changing. Yet in digital industries, the customer has increased power and
the customer experience is often the most important factor in determining
market share. An internal focus can lead to disastrous business performance. Both
Lean and Six Sigma (when implemented correctly) will start and finish their
analysis with the customer experience. Lean tracks the critical customer KPIs
through the process with its data boxes. The As-Is Value Stream Map quantifies
the customer experience. The To-Be Value Stream Map demonstrates the customer
impact of the process change. Six Sigma starts with a problem definition that
is based upon what is a customer-defined Critical to Quality (CTQ) characteristic. <span style="mso-spacerun: yes;"> </span>And a Six Sigma project does not end until the
project team can demonstrate that the CTQ is meeting customer expectations and
is under control. By using every customer complaint as the starting point for
the next Six Sigma project, the customer experience is maintained as the most
significant aspect of the business operations throughout the digital
transformation.<o:p></o:p></div>
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<h3>
<b style="mso-bidi-font-weight: normal;">Summary</b></h3>
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<br /></div>
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Your organization may have been using Lean and Six Sigma for
years. In fact, you may have felt that you got all the benefit you could from
these approaches and you then moved onto other business initiatives. But don’t
abandon these when undergoing digital transformation. The principles of these
methods are excellent enablers of your digital transformation and are essential
elements for resolving the speed bumps you are sure to encounter. A cadre of
trained and experienced Lean Six Sigma Black Belts and Green Belts are a
critical element of your organization’s successful digital transformation.<o:p></o:p></div>
<br />Ray Sheenhttp://www.blogger.com/profile/08035263259880392470noreply@blogger.com0tag:blogger.com,1999:blog-6088554710615410597.post-27083336773600183402018-11-12T10:26:00.000-05:002018-11-12T10:26:47.298-05:00Data - The Newest Natural Resource<br />
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When someone starts to speak of natural resources we think
of minerals, forests, fields, flocks and herds or water.<span style="mso-spacerun: yes;"> </span>A natural resource is anything occurring in
nature that can be used for economic gain.<span style="mso-spacerun: yes;">
</span>It can be argued that the history of mankind is the history of the acquisition
and use of natural resources.<span style="mso-spacerun: yes;"> </span>We even
refer to different periods in history by the natural resources that dominated
innovation in that period, such as “The Bronze Age” or the “The Iron Age.”<span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
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Industries have been created to develop and use natural
resources.<span style="mso-spacerun: yes;"> </span>The different mining
industries, timber industries, and many of the farming industries illustrate
that point.<span style="mso-spacerun: yes;"> </span>And the control of natural
resources is often directly related to the power and significance of a
nation-state.<span style="mso-spacerun: yes;"> </span>Wars have been fought over
the control of oil, minerals, water, and arable land.<span style="mso-spacerun: yes;"> </span>Societies and cultures have developed around
the management and processing of natural resources.<o:p></o:p></div>
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To say that understanding and managing natural resources is
important is an understatement.<span style="mso-spacerun: yes;"> </span></div>
<h3>
<br /></h3>
<h3>
The Data Resource</h3>
<h2>
<o:p></o:p></h2>
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Let’s look at the definition of a natural resource
again.<span style="mso-spacerun: yes;"> </span>It is anything occurring in
nature that can be used for economic gain.<span style="mso-spacerun: yes;">
</span>Most types of data are a description of what is occurring in nature. Let’s
compare a typical natural resource to data. Imagine an apple seed that is sown
in the ground.<span style="mso-spacerun: yes;"> </span>It grows into an apple
tree.<span style="mso-spacerun: yes;"> </span>That tree then yields bushels of
apples, which are regarded as a natural resource when they are harvested.<span style="mso-spacerun: yes;"> </span>Similarly, an event occurs in the world
around us.<span style="mso-spacerun: yes;"> </span>That event creates analog
data – sound, movement, scenes, emotions, and reactions among people and
things.<span style="mso-spacerun: yes;"> </span>That analog data can be
digitized and harvested.<span style="mso-spacerun: yes;"> </span>It becomes a
resource that can be used for economic gain.<span style="mso-spacerun: yes;">
</span>And since this resource is representing something that is occurring in
nature, it is a natural resource. <o:p></o:p></div>
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Much of our data today is in digital form.<span style="mso-spacerun: yes;"> </span>This means the data is a digital
representation of the world around us.<span style="mso-spacerun: yes;">
</span>It is the digital natural resource.<o:p></o:p></div>
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Consider some of the different types of traditional natural
resources.<span style="mso-spacerun: yes;"> </span>There are minerals that are
mined.<span style="mso-spacerun: yes;"> </span>Some are scarce and precious like
gold and silver.<span style="mso-spacerun: yes;"> </span>Some are much more
common, but are processed and used in multiple applications, such as iron or
tin.<span style="mso-spacerun: yes;"> </span>But generally speaking, there is a
finite amount of minerals in one area.<span style="mso-spacerun: yes;">
</span>Some of the data natural resources are like that.<span style="mso-spacerun: yes;"> </span>The data is buried and must be dug out.<span style="mso-spacerun: yes;"> </span>In some cases, there is a limited amount of
data when it relates to a unique occurrence.<span style="mso-spacerun: yes;">
</span>In other cases, there is a tremendous amount of data that can be used
for many different purposes.<o:p></o:p></div>
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Then there are the natural resources associated with
agriculture that are labeled as renewables.<span style="mso-spacerun: yes;">
</span>These have a growing cycle from seed planting through harvest.<span style="mso-spacerun: yes;"> </span>And these natural resources can be fertilized
to increase yield.<span style="mso-spacerun: yes;"> </span>There are many types
of crops and different strains are grown to emphasize different
characteristics.<span style="mso-spacerun: yes;"> </span>The land can yield
multiple harvests as long as it is tended.<span style="mso-spacerun: yes;">
</span>With respect to the data resource, the “planting” of IoT sensors or the
collection of actions and reactions in digital devices can create an ongoing
harvest of data.<span style="mso-spacerun: yes;"> </span>And different sensors
or data recorders will give different insights into the natural phenomena that
is happening.</div>
<h3>
<br /></h3>
<h3>
The Use and Management of Natural Resources </h3>
<h2>
<o:p></o:p></h2>
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Natural resources are only valuable when they are used.<span style="mso-spacerun: yes;"> </span>Oil in the ground that is never pumped
creates no value for mankind.<span style="mso-spacerun: yes;"> </span>Wild
grapes that are never harvested and turned into wine provide no value for
mankind.<span style="mso-spacerun: yes;"> </span>For the value of a natural
resource to be realized, there must be a process to acquire the resource,
purify the resource, and apply the resource.<span style="mso-spacerun: yes;">
</span>The execution and management of this process creates value.<o:p></o:p></div>
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Let’s use the example of iron ore resource and compare it to
the data resource. First, iron is found in many locations, but it is
buried.<span style="mso-spacerun: yes;"> </span>Likewise, data is being created
all the time, but it is often buried.<span style="mso-spacerun: yes;"> </span>A
geologist discovers a deposit of iron ore based upon his or her knowledge of
the surrounding geology and the results of testing.<span style="mso-spacerun: yes;"> </span>A data scientist can apply their knowledge to
the business or societal circumstances and identify areas where important data
can be collected.<span style="mso-spacerun: yes;"> </span>The mining company
must acquire the mineral rights before they can legally start to mine the iron
ore.<span style="mso-spacerun: yes;"> </span>And in today’s society, many types
of data, especially personally identifiable information requires the consent of
those involved before it can be collected and processes. <o:p></o:p></div>
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When the mining company has determined they can legally and
economically mine the iron ore, they will open the mine.<span style="mso-spacerun: yes;"> </span>There are numerous mining techniques – some
very manual and some relying on technology and automation.<span style="mso-spacerun: yes;"> </span>The type of mining done will depend upon the
location and the expertise and resources available to the mining company.<span style="mso-spacerun: yes;"> </span>The parallel with digital data acquisition is
obvious.<span style="mso-spacerun: yes;"> </span>Once the decision is made to
acquire the data, there are many different tools that can be used.<span style="mso-spacerun: yes;"> </span>The data acquisition can be done using manual
methods, or a digital platform can be used to automatically and systematically
collect the data.<o:p></o:p></div>
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The mining company must then ship the iron ore to the
processing locations.<span style="mso-spacerun: yes;"> </span>This could be by
truck, by rail, or by ship.<span style="mso-spacerun: yes;"> </span>In the same
way, the acquired data must be transmitted to the servers and applications
where the data will be processed.<span style="mso-spacerun: yes;">
</span>Granted, data transmission is much faster than shipping iron ore.<span style="mso-spacerun: yes;"> </span>But it is also much easier to intercept the
data and garble the data during transmission. <o:p></o:p></div>
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Once the iron ore reaches the processing operations, it goes
through many steps before it is useful for applications and has created
economic value.<span style="mso-spacerun: yes;"> </span>The iron ore is crushed
and heated until it becomes malleable.<span style="mso-spacerun: yes;">
</span>The iron must be refined and impurities must be removed. <span style="mso-spacerun: yes;"> </span>The iron can then be cast into useful shapes
and sizes or combined with other minerals to make new products, such as steel. <span style="mso-spacerun: yes;"> </span>Again, there are the similarities with data
processing.<span style="mso-spacerun: yes;"> </span>The individual data elements
are often aggregated into databases.<span style="mso-spacerun: yes;"> </span>The
data is cleansed to remove noise and false data points.<span style="mso-spacerun: yes;"> </span>The resulting databases can then be used for
many different applications, and multiple databases can be combined to create
new applications.</div>
<h3>
<br /></h3>
<h3>
Opportunities and Risks </h3>
<h2>
<o:p></o:p></h2>
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By placing digital data into the paradigm of a natural
resource, we can use lessons learned from history about the management of
natural resources.<span style="mso-spacerun: yes;"> </span>This tells us that
data management is full of both opportunities and risks.<span style="mso-spacerun: yes;"> </span>These opportunities and risks exist for
individuals, business entities, and society at large. <o:p></o:p></div>
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First, they exist for the individual.<span style="mso-spacerun: yes;"> </span>A person who is a skilled worker or craftsman
in an industry that is developing a natural resource is employable, and often has
a very good-paying job.<span style="mso-spacerun: yes;"> </span>In fact, a
culture or society will often develop around that natural resource and additional
societal relationships and cultural norms will develop.<span style="mso-spacerun: yes;"> </span>This gives the individual a sense of
community and purpose.<span style="mso-spacerun: yes;"> </span>History has shown
us this in agrarian cultures and mining communities we find around the
world.<span style="mso-spacerun: yes;"> </span>In fact, this effect has been
created with respect to digital data in the Silicon Valley culture.<span style="mso-spacerun: yes;"> </span>Continuing to consider the individual, if a
culture develops based upon a natural resource and an individual does not
participate or rejects the use of the natural resource, they will likely be
ostracized by their culture.<span style="mso-spacerun: yes;"> </span>One other
point - when a new natural resource, or at least a new deposit of a natural
resource, is discovered, a frenzied “get rich quick” atmosphere can develop
that is full of charlatans and predators.<span style="mso-spacerun: yes;">
</span>Consider the California gold rush of 1849.<span style="mso-spacerun: yes;"> </span>While some did get rich, many others were
fleeced and destroyed during that time. <span style="mso-spacerun: yes;"> </span>That is a word of caution for those
individuals who are jumping on the digital transformation bandwagon.<span style="mso-spacerun: yes;"> </span>Make sure you are relying on trusted sources.<o:p></o:p></div>
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<br /></div>
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Next let’s consider business entities.<span style="mso-spacerun: yes;"> </span>There are numerous opportunities up and down
the value chain of a natural resource.<span style="mso-spacerun: yes;"> </span>A
company may choose to specialize in one aspect of the value chain and offer its
services broadly across the industry.<span style="mso-spacerun: yes;"> </span>Or
it may attempt to vertically integrate around one application or category or
use for that natural resource.<span style="mso-spacerun: yes;"> </span>Of
course, all the normal aspects of a competitive business environment are
present and the need for access to capital, customer engagement, quality products
and services and competitive pricing all contribute to the success or failure
of a business.<span style="mso-spacerun: yes;"> </span>With respect to digital
data resource management, the speed and scale of the industry precludes a “wait
and see” strategy.<span style="mso-spacerun: yes;"> </span>The barriers to entry
are low and natural geographical boundaries are meaningless.<span style="mso-spacerun: yes;"> </span>There are already many digital giants and
entrepreneurial start-ups.<span style="mso-spacerun: yes;"> </span>The
development of the industry is racing ahead and those who are not embracing
digital transformation are shut out from participating in the development of
this natural resource.<span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
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<br /></div>
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Two companies that illustrate viable strategies are Google
and Airbnb. Google has chosen to dominate one aspect of the digital data
industry—that of searching—and has spread that capability broadly across many
applications.<span style="mso-spacerun: yes;"> </span>They are dominant within a
horizontal slice of the industry.<span style="mso-spacerun: yes;"> </span>Airbnb
is vertically integrating data management with respect to overnight stays –
they are dominating a vertical slice within the industry.<span style="mso-spacerun: yes;"> </span>A question you should be asking yourself
right now is, “What strategy is my business using to take advantage of this
natural resource?”<b style="mso-bidi-font-weight: normal;"><span style="color: red;"><o:p></o:p></span></b></div>
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Finally, there are opportunities and risks for society.<span style="mso-spacerun: yes;"> </span>Access to information and data has become a
great democratizing influence around the world.<span style="mso-spacerun: yes;">
</span>Digital data and information have opened the doors for goods, services,
and exposure to ideas and knowledge in virtually every corner of the
world.<span style="mso-spacerun: yes;"> </span>But with this explosion of data
has come the spread of propaganda and censorship and the loss of personal
privacy. When one company becomes all-powerful within an industry, it often
results in exploitation of customers and aggressive hostility towards new
ideas.<span style="mso-spacerun: yes;"> </span>Monopolies stifle the development
of an industry and culture.<span style="mso-spacerun: yes;"> </span>It has been
argued that companies like Google and Amazon have too much power and that they
should be broken up in the same way that Bell Systems was dismantled during the
1980s.<span style="mso-spacerun: yes;"> </span>In addition, when personal
private information is in the wrong hands, it can be used to manipulate and
intimidate individuals.<span style="mso-spacerun: yes;"> </span>The European
Union recently took action to address this concern with the imposition of GDPR
regulations.<span style="mso-spacerun: yes;"> </span>The correct balance point
for both of these concerns is still being debated.<o:p></o:p></div>
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<br /></div>
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Using the paradigm of a natural resource, the development
and management of the digital data industry and its impact on society becomes
clearer.<span style="mso-spacerun: yes;"> </span>It is not just an incremental
step in technology advancement.<span style="mso-spacerun: yes;"> </span>Rather,
it is an organizing element for industries, society, and individuals.<span style="mso-spacerun: yes;"> </span>And as with any other natural resource,
control of the resource and the ability to process that resource and use it for
many applications is a strategy for success.<span style="mso-spacerun: yes;">
</span>Whether you are an individual dabbling with digital devices, a corporation
that is attempting to participate in the digital data value stream, or a policy
maker who wants to leverage the advantages of this natural resources and avoid
the risk, you need a strategy for engagement.<span style="mso-spacerun: yes;">
</span>You are not in the “Bronze Age” you are in the “Digital Data” age.<span style="mso-spacerun: yes;"> </span>Are you making the most of your
opportunities?<o:p></o:p></div>
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<br /></div>
<br />Ray Sheenhttp://www.blogger.com/profile/08035263259880392470noreply@blogger.com0tag:blogger.com,1999:blog-6088554710615410597.post-66164396649334008722018-01-28T21:15:00.000-05:002018-01-28T21:15:36.022-05:00Using Porter's Model to Transform an Industrial Age Business to the Digital Age<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgzi6flAMbZxxURiOyWd5l7ChTOZOx8y0XFah9sEMHXTWBls8E80rjgG7JDNKnKireYq1bKA1UfEdCuj94glHqNUbu1sonD2zH-DQCg_PiImiKHwJlLa0hljt5ExODS73aLq0s1R9DnjXU/s1600/man+robot.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="860" data-original-width="1600" height="171" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgzi6flAMbZxxURiOyWd5l7ChTOZOx8y0XFah9sEMHXTWBls8E80rjgG7JDNKnKireYq1bKA1UfEdCuj94glHqNUbu1sonD2zH-DQCg_PiImiKHwJlLa0hljt5ExODS73aLq0s1R9DnjXU/s320/man+robot.jpg" width="320" /></a></div>
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While many businesses are talking about the need to transform
for the Digital Age, the roadmap for transformation is unclear. This is not a surprise. Few organizations have done it
successfully. While there are several "native-born" digital age success stories, the
transition from industrial age business to digital age business requires fundamental
changes in business systems, structures, and culture. Where to start your transformation depends
upon the current status of your business technology, the industry you are in,
and the level of commitment and support from the executive management
team. One of the most difficult
challenges in starting the transformation is to create a vision of what "digital" means for the business.<o:p></o:p></div>
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<br /></div>
<h2>
Porter’s Model for Business Value Chain</h2>
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<o:p></o:p></div>
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Let me help you create your vision by applying digital age technologies
and management practices to a well-known and accepted industrial age business
model. In 1985, Michael Porter, the
Harvard Business School professor, published the seminal book, <a href="https://books.google.com/books/about/Competitive_Advantage.html?id=7UqQXsQ_dj4C&" target="_blank">"CompetitiveAdvantage."</a> Porter’s theories on
competitive advantage became the foundation for business strategy around the
world. In that book, he articulated a
model for the business value chain. The
effectiveness of a company’s strategy is based upon the strengths and
weaknesses of each of the elements of the business value chain as compared to those
of its competitors. <o:p></o:p></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi99s_SMJ-OQD1gcR7JP7T8VrBz1MpT1AmOXPSWVdVDaZAZomBPuUjKY2YdczB-xTSPpqGBkHxXA2ttdJYPk2wjcvkiFbz7bHgqWvbUthPwj_PRyY_Tw4TGIJe71aXvhF8y4Rr4CJKcXkc/s1600/Porter+Competitive+Advantage.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="639" data-original-width="1352" height="188" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi99s_SMJ-OQD1gcR7JP7T8VrBz1MpT1AmOXPSWVdVDaZAZomBPuUjKY2YdczB-xTSPpqGBkHxXA2ttdJYPk2wjcvkiFbz7bHgqWvbUthPwj_PRyY_Tw4TGIJe71aXvhF8y4Rr4CJKcXkc/s400/Porter+Competitive+Advantage.png" width="400" /></a></div>
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<br /></div>
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The value chain model had five primary activities which were
associated with acquiring customers and fulfilling sales. These activities are directly associated with
the transaction that provides the product or service to the customer, which means these activities lead to revenue,
and the effectiveness of these lead to gross profit. These activities often operate in a chain or
series of steps. Removing waste from the
series of steps and increasing customer satisfaction increases competitive
advantage. The Primary Activities in
Porter’s business value chain are:</div>
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</div>
<ul>
<li>Inbound logistics – the receipt and inventory
management of inputs to the business processes.</li>
<li><span style="text-indent: -0.25in;">Operations – the transformation of raw materials
and components into products, services, and systems for sale to the customers.</span></li>
<li><span style="text-indent: -0.25in;">Outbound logistics – the shipment and delivery
of products and services to the customers.</span></li>
<li>Marketing and Sales – the interactions with the customer
to convince them to purchase the products or services.<span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">In retail businesses this primary activity
normally occurs after the inbound logistics, operations, and outbound logistics
steps.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">In Build-to-Order businesses,
this step is normally the first of the primary activities.</span></li>
<li>Service – the delivery of services to the
customer, either supporting a product or as the market offering.<span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">Some industries are exclusively service
industries (airline) and other industries have almost no service component
(retail paper goods).</span></li>
</ul>
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However, the effectiveness of the Primary Activities depends
upon four Supporting Activities. These
activities are enablers for competitive advantage from the primary activities. They provide the foundational process capability
and culture that guide the execution of the primary activities. The Supporting Activities in Porter’s business
value chain are:</div>
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</div>
<ul>
<li>Firm infrastructure – not only the facilities,
but the overhead and management functions of the business</li>
<li>Human Resources management – the hiring,
training, and employee management policies of the business</li>
<li>Technology deployment – product and process
technology used throughout the organization, its products and services</li>
<li><span style="text-indent: -0.25in;">Procurement – the network of suppliers, contractors,
and service providers who perform key functions for the organization or provide
materials and services</span></li>
</ul>
<br />
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<o:p></o:p></div>
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These four activities supported the Primary Activities, which
are the ones leading to transactions with customers. The effectiveness of these Support Activities
improves the effectiveness of the Primary Activities.<o:p></o:p></div>
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<br /></div>
<h2>
Digital Age Enablers</h2>
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<o:p></o:p></div>
<div class="MsoNormal">
Now let us consider the four technologies whose intersection
has been the genesis for the digital age.
Some of these technologies have been available for many years. However,
the integration of these has transformed more than products or services. These have changed the way companies interact
with customers, the role of employees, and how businesses manage their processes.<o:p></o:p></div>
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<br /></div>
<h3>
Internet of Things (IoT)</h3>
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<o:p></o:p></div>
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The widespread integration and use of digital WIFI
technology allows almost anyone and anything in the world to establish a
connection with other people or things.
Whether it is in a home, in a factory, at retail store, or entertainment
venue, there are numerous devices connected via WIFI. And the devices on the network are growing
every day. This opens up totally new
channels of communication between the customer and the seller. It also opens up new channels of
communication within an organization or operation for providing status and
control of what is happening.<o:p></o:p></div>
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<br /></div>
<h3>
Big Data</h3>
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<o:p></o:p></div>
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All of these devices are collecting and transmitting data
which leads to the creation of enormous data sets that are changing in real
time. The tools and techniques used with
big data can analyze these data sets for trends, patterns and associations that
provide insight about the ecosystems represented by the data set. Without the tools and techniques of Big Data,
the information created by the IoT would be practically worthless. Big Data brings
insight and clarity from the confusion of data overload.<o:p></o:p></div>
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<br /></div>
<h3>
Cloud Computing</h3>
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<o:p></o:p></div>
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Processing the Big Data created by the IoT requires a great
deal of computer processing power. However,
building and operating data centers is expensive overhead for many companies. Especially when the data center must be sized
for the worst case computational load. That
means that much of the functionality is sitting idle most of the time. Cloud Computing overcomes this challenge by
spreading the computation and memory requirements over many computers and data
centers that are connected via the internet cloud. This allows virtually any company to now have
instant access to huge amounts of processing capability at low cost.<o:p></o:p></div>
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<br /></div>
<h3>
Artificial Intelligence/Machine Learning</h3>
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<o:p></o:p></div>
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Artificial intelligence (AI) is the use of computer systems
to perform tasks or activities that normally require the insight and understanding
of a person. Machine learning is a current
application of artificial intelligence that provides enormous amounts of data
to AI machines, letting them extract patterns and discover cause and effect
relationships. A characteristic of AI is
that the systems assess a situation and takes an action based upon that
situation without any intervention from a human operator. Thanks to the integration of IoT, Big Data,
and Cloud Computing, AI has become feasible for numerous applications.<o:p></o:p></div>
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<br /></div>
<h2>
Digitizing Porter’s Business Value Chain</h2>
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Now it is time to apply the four enabling digital technologies
to the Business Value Chain activities.
This will create a vision for the impact of digital transformation on
that aspect of a business. When you
understand that vision in a generic sense, you can translate it into your
specific business realities. I’ll start
with the support activities.</div>
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</div>
<ul>
<li>Firm infrastructure – all four enabling
technologies will have a significant impact on these activities.<span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">Business analytics are growing exponentially
in many organizations and these are built using the enabling technologies.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">In addition, the IoT is changing the nature
of physical infrastructure requiring networks or WIFI throughout the operation.</span><span style="text-indent: -0.25in;"> </span></li>
<li>Human Resources management – IoT and AI will
have the biggest impact in this area.<span style="text-indent: -0.25in;">
</span><span style="text-indent: -0.25in;">Through IoT, employees and operators will be able to connect with equipment,
systems and team members anywhere at any time.</span><span style="text-indent: -0.25in;">
</span><span style="text-indent: -0.25in;">The application of AI will change the content of many positions.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">AI is likely to take over many lower-end
manual or repetitive tasks.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">This will
eliminate some positions and change the content of others into the role of
problem solver.</span></li>
<li>Technology deployment – from a transformation
perspective, this activity is likely to be the least affected.<span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">Many organizations already have processes and
practices in place to upgrade and enhance both product and process
technology.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">That activity will
continue.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">One likely change will be a greater
reliance on sourced technology deployment such as the use of the Cloud
Computing.</span></li>
<li>Procurement – the change in this area will be
one of timing and flexibility which means it leverages IoT, Big Data, and Cloud
Computing.<span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">The pace of change in the
digital age is much faster than the pace in the industrial age.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">Windows of opportunity in the market open and
close within months not years.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">Therefore,
the network of key suppliers, contractors and service providers will likely
need to change quickly also. There will be more emphasis on procurement partners
who have already transformed to digital age business processes and less emphasis
on "low cost" providers who are still operating in the industrial age.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;"> </span></li>
</ul>
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<o:p></o:p></div>
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The impact of the digital age technologies on Porter’s business
value chain supporting activities is integrative and reinforcing. As technology deployment makes the IoT, Big
Data, Cloud Computing, and AI available, the other three supporting activities
utilize that capability. They soon rely
on it and will demand that technology deployment accelerate the implementation
of improvements in each of those areas.
For instance, the IoT leads to better connect people and systems. This leads to better management using real-time
data in the infrastructure layer. This
also allows the procurement layer to partner in real-time with suppliers and
service providers anywhere in the world opening up new opportunities. However, this demands that the HR layer
provide people with the technical skills to use the technology and the
leadership skills to form, lead, and facilitate constantly evolving diverse
global teams. All of these will lead to
a demand for the technology deployment layer to provide better IoT performance
in terms of bandwidth and security.<o:p></o:p><br />
<br /></div>
<div class="MsoNormal">
Let’s turn our attention now to applying the four enabling
digital technologies to the five primary activities from Porter’s business
value chain model. These activities are
the ones directly supporting a customer transaction.</div>
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</div>
<ul>
<li>Inbound logistics – the IoT will improve the speed
and accuracy of this activity.<span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">If the supply
chain is large and complex, Big Data and Cloud Computing can help to manage the
logistics to ensure optimal performance for either cost or cycle time.</span></li>
<li><span style="font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"> </span><span style="text-indent: -0.25in;">Operations – the transformation in this area is
likely to use all four technologies.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">In
manufacturing operations, many companies already rely on IoT and limited AI in
their factory automation.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">In addition,
many field service based operations rely on IoT to stay connected with their operators
and equipment in the field.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">The
expansion of IoT in operations systems has exponentially increased the data
collected leading to the use of Big Data and Cloud Computing to monitor system
status and predict system performance and the need for maintenance.</span></li>
<li><span style="text-indent: -0.25in;">Outbound logistics – IoT, Big Data, and Cloud
Computing are already changing this activity.</span><span style="text-indent: -0.25in;">
</span><span style="text-indent: -0.25in;">Amazon is an example of a business that is built upon using the digital
technologies to transform this business activity.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">The digital technologies allow Amazon to find
and ship almost anything to almost anywhere overnight.</span></li>
<li><span style="text-indent: -0.25in;">Marketing and Sales – Big Data, Cloud Computing
and AI are transforming the </span>Marketing and Sales processes.<span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">Big data and Cloud Computing can segment
customers and provide personalized product and service offerings based upon this
segmentation.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">The AI "bots" are now
taking orders and answering questions from customers. </span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">This area is growing fast, and capabilities
are expanding almost daily.</span></li>
<li>Service – again all four technologies, IoT, Big
Data, Cloud Computing, and AI are having an impact in this area.<span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">The connectivity of products and services
allows expanded data collection and the use of Big Data analytics.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">The Cloud Computing can analyze and predict
performance and service needs.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">AI is
problem solving and in some cases automatically fixing issues.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">Consider your automobile.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">It knows when something is wrong, it informs
you of the diagnostics, it can schedule a service call or identify the closest
service center to your current location, and connect you with someone in an
emergency.</span><span style="text-indent: -0.25in;"> </span><span style="text-indent: -0.25in;">And coming soon, it will
actually do the driving also.</span></li>
</ul>
<br />
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The digital age technologies are transforming industrial age
industry. If you wait until the transformation is
complete before you start to change, you will go the way of shipwrights for sailing
ships and buggy manufacturers. But you
don’t want to haphazardly throw resources at the technologies and hope that
something works. Many of us tried that during
the dot.com bubble and watched as millions of dollars and years of time were wasted. You need a strategy for your transformation.<br />
<br />
I suggest you start with the Porter business
value chain model. Consider your
industry, your organization’s strengths and weaknesses and then begin to apply
the digital age technologies. Your
strategy for competitive advantage will dictate what changes are needed and when.<o:p></o:p></div>
Ray Sheenhttp://www.blogger.com/profile/08035263259880392470noreply@blogger.com0tag:blogger.com,1999:blog-6088554710615410597.post-51159976046949477872018-01-02T12:53:00.000-05:002018-01-02T12:53:10.415-05:00I Thought We Were Playing Football! How Digital Age Business Management Differs from Industrial Age Business Management<div class="MsoNormal">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhPuk5uoyadpZs6cJJKLDy3v0ZAmn4N3aGOXvaGTvAyxhZP9bsv8QN4san6_lE6iLQ3yzXAkOf11tJJzJOFqD18ht4bTcjL0mHhY32tGbiQkKmk65LzwRoV4_sAcAe9-jdX7jcbYYus4QI/s1600/football.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em; text-align: center;"><img border="0" data-original-height="1067" data-original-width="1600" height="133" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhPuk5uoyadpZs6cJJKLDy3v0ZAmn4N3aGOXvaGTvAyxhZP9bsv8QN4san6_lE6iLQ3yzXAkOf11tJJzJOFqD18ht4bTcjL0mHhY32tGbiQkKmk65LzwRoV4_sAcAe9-jdX7jcbYYus4QI/s200/football.jpg" width="200" /></a>I grew up playing football.
I was a tight end. I learned to
block and tackle and knew how to run my routes.
I wasn’t very good, so when I went to college I moved off the field and into
the stands. There I cheered for my
team. I don’t think I missed a single
home game and I made it to some of the away games. I don’t go to games as often any more, but I
am still a fan. I have binge watched
football games on holidays and weekends.
While I may not be classified as an expert, I know the rules, I know how
the game is scored, and I can spot a well-executed play. I understand what it takes to win at
football. </div>
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<o:p></o:p></div>
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<br /></div>
<div class="separator" style="clear: both; text-align: left;">
There is just one thing – I know what it takes to win at
American Football, but as I look around I find that there are lots of people
playing Association Football and it is very different from the football that I
know. It is what we in the USA would call “soccer,” but in the rest of the world it is known as “football.”</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgrR7J4OqJYC2jTLZS9aIe177289D_kIk30LpJ3Ys5sf4agv7VMp8vZsIUVKDCWUSPfhlqz98U71aNXjjMYkaR-OZIv8yIw2QalfqNJhA2Rs11YxXn4Bh9M5kWbBt28LNt20FhyiiOmymE/s1600/soccer+ball.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="1378" data-original-width="1378" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgrR7J4OqJYC2jTLZS9aIe177289D_kIk30LpJ3Ys5sf4agv7VMp8vZsIUVKDCWUSPfhlqz98U71aNXjjMYkaR-OZIv8yIw2QalfqNJhA2Rs11YxXn4Bh9M5kWbBt28LNt20FhyiiOmymE/s200/soccer+ball.jpg" width="200" /></a></div>
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<o:p></o:p></div>
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<br /></div>
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There is a strong resemblance between business success in
the industrial age and American Football.
And there is also a strong resemblance between business success in the
digital age and Association Football.
There are some similarities; for instance, both have two teams of 11
players competing against each other on a large field with the goal to be to
outscore the opponent. But don’t let the
similarities fool you. The games are
different. How they are played, the
skills needed by the players, and the strategies used need to be those
appropriate for which version of “football” you are playing. <o:p></o:p></div>
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<br /></div>
<div class="MsoNormal">
So let’s set aside the technology for digital age businesses
for a minute. Things like the Internet
of Things (IoT), cloud computing, big data, artificial intelligence and
robotics. Instead lets’ talk about how
we organize and manage a business for the digital age as compared to the
industrial age using a metaphor of playing two different games, both called
football.</div>
<div class="MsoNormal">
<br /></div>
<h2>
American Football (Think Industrial Age Business)</h2>
<div class="MsoNormal">
<o:p></o:p></div>
<br />
American Football relies on power, strength, agility, training, and competitive strategic game plan. Let's consider the implication of some of these attributes and their parallel to industrial age business.<br />
<br />
<h3>
Functional Specialist</h3>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEio2vkDS2iHkW8eO5SMBucPumwDF14-Cblv1qClfZI51ijACD8wM1S_K8U_yyBi0gFlDiV_VuXjP_XNYVwilpHjnXR3NMzXKbRzJyYJ6yOjmJD-IPTYnDn3IKOAZse-aSF_eueB6qg1vNg/s1600/Football+player.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="1067" data-original-width="1600" height="133" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEio2vkDS2iHkW8eO5SMBucPumwDF14-Cblv1qClfZI51ijACD8wM1S_K8U_yyBi0gFlDiV_VuXjP_XNYVwilpHjnXR3NMzXKbRzJyYJ6yOjmJD-IPTYnDn3IKOAZse-aSF_eueB6qg1vNg/s200/Football+player.jpg" width="200" /></a></div>
<div class="MsoNormal">
In American Football, each player has a position or role. There are strict rules associated with that
position. For instance, an interior
lineman cannot catch a forward pass, that action is reserved for backs, ends,
and wide receivers. Also, the skills
needed for success vary based upon your position on the team. That same interior linemen must be excellent
at blocking, with great leg strength and arm strength. A wide receiver should be very fast and have
“good hands” for catching the ball. A
free safety needs to be very quick and agile to play pass defense, while a nose
tackle should be very strong to push past the opposing teams offensive line and
tackle the running backs or quarterback.
Sure, it would be great if everyone was good at everything, but on most
teams, a player works to develop the skills that are essential for success in
their position.</div>
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<br /></div>
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
Industrial age businesses have a similar
characteristic. The business has
functional specialists who know one position well. There are accountants in Finance, engineers
in R&D, and quality inspectors in Operations. The skills required for each position are
very different and the authority of each individual is different based upon the
rules for that position. A Finance
person does not have the authority to determine if a product was made
correctly, and the quality inspector does not prepare the quarterly tax
filings. Everyone knows their role, and
the road to advancement and success in the organization is to become very good
at your job. Of course, broad business
knowledge is good to have, but you are expected to be an expert in your
function or role. If everyone has that
attitude and aptitude, the industrial age business should perform well. It is just like in American Football terms,
you want to be in the starting lineup of team that is bound for the playoffs or
a bowl game.</div>
<div class="MsoNormal">
<br /></div>
<h3>
Set Plays with Clear Assignments</h3>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi3JdS6etoIVagfav9nS2qaUJvT2juP4tH6xANP93f8kQ7eUCooi_KrcsEELS82PE0R3xbEW9M08_LHmapJCXdonzRmDkZC_oZIfQYaNIuDK8O18A5o9gI8yAmNivsQRdNaoSKqEZgoXKw/s1600/x%2527s+amd+0%2527s.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="1067" data-original-width="1600" height="133" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi3JdS6etoIVagfav9nS2qaUJvT2juP4tH6xANP93f8kQ7eUCooi_KrcsEELS82PE0R3xbEW9M08_LHmapJCXdonzRmDkZC_oZIfQYaNIuDK8O18A5o9gI8yAmNivsQRdNaoSKqEZgoXKw/s200/x%2527s+amd+0%2527s.jpg" width="200" /></a></div>
<div class="MsoNormal">
Also, in American Football, the teams run set plays. Everyone waits until the ball is snapped, then
every player has a specific action they are to do. The right guard may be pulling to block for
the tailback who is going off the left tackle, or he may be pass blocking for
the quarterback. The tight end is
running a buttonhook route, or blocking for a jet sweep. The outside linebacker is tracking the
running back who is in motion to pass defend them out of the backfield, and the
defensive backs are either in man-to-man or zone coverage. Everyone knows what they are supposed to do on
every play. And each team is trying to
win on each play. They want to overpower
the other team with their athleticism and confuse them so they won’t know what
to expect. <o:p></o:p></div>
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<br /></div>
<div class="MsoNormal">
Again, there is similarity to this in industrial age
business. The company creates a
competitive strategy. It may involve
intellectual property, new products or new markets. It may rely upon excellent execution that
leads to faster delivery or personalized service. Some of the strategies may be defensive in
nature such as negotiating long term contracts to prevent competitors from
gaining market share or using pricing to discourage other entrants to the
market. Many businesses conduct an
annual or semi-annual strategy planning session to determine these
strategies. The business functions then create
processes to support those strategies.
This is just like creating plays in American Football. Everyone has specific actions they are
supposed to do. If successful, they
either advance the company’s offering in the market – just like the offense
advancing the football. Or the processes
will blunt the competitor’s offering – just like when the defense stops the
opponent for no gain. <o:p></o:p></div>
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<br /></div>
<h3>
A Field of Play and Rules for How to Win</h3>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg3zAJg8yxpk3B-DPlMeDRGo10-fQVU9wxxhEE0WUB2JQZfWTEVCug3oelgZu7atTtS_QGcEG4SyyAfGdy-DE01tOmIc_u7R9G2PuYvh7UAuMZ8ibKgf6bdfYDEtKQ1ua2W3mTpEmfBpR0/s1600/football+field.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="1067" data-original-width="1600" height="133" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg3zAJg8yxpk3B-DPlMeDRGo10-fQVU9wxxhEE0WUB2JQZfWTEVCug3oelgZu7atTtS_QGcEG4SyyAfGdy-DE01tOmIc_u7R9G2PuYvh7UAuMZ8ibKgf6bdfYDEtKQ1ua2W3mTpEmfBpR0/s200/football+field.jpg" width="200" /></a></div>
<div class="MsoNormal">
At the risk of stretching the metaphor too much more, let’s
also acknowledge that there are rules about how the game is to be played and
scored. There are end zones and
goalposts that are used to determine the scoring. There are sidelines that define when
something is out-of-bounds. Each team
gets four tries, or downs, to move the ball at least 10 yards forward. If they can’t do that, they turn the ball
over to the other team and then that team tries to move the ball 10 yards. There is a clock that is running, but it
frequently stops for a variety of reasons.
Also, there are rules on how the game is played at the individual level. This includes rules of behavior and rules
associated with different positions.
Finally, there are umpires and referees who watch for any infraction of
the rules. Depending upon the nature of
the infraction, they impose penalties of varying degrees all the way from a
minor repositioning of the football up to barring an individual from ever
participating in the sport.<o:p></o:p></div>
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<br /></div>
<div class="MsoNormal">
Industrial age business is the same. There are rules governing the industry and
individual behavior. These include
financial accounting rules and tax laws that tell us how to score success. Depending upon your industry, their may be
other regulatory requirements that define what business actions or offerings
are “out-of-bounds.” In addition, there
are industry watchdog groups and regulators who are watching for
infractions. Depending upon the nature
of the infraction, you may have to do additional testing or add a warning label
on your product. You may be barred from
selling certain types of products or services within certain markets. And for really serious infractions, you may
be incarcerated. </div>
<div class="MsoNormal">
<o:p></o:p></div>
<h2>
Association Football (Think Digital Age)</h2>
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
So, let’s look at how things change when we discuss digital
age business. Association Football, what
is known as “soccer” in the USA, is our metaphor. </div>
<div class="MsoNormal">
<br /></div>
<h3>
The Rule Book is Different</h3>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgim4q5VtgdrVKhikjgR18RbfcPiaDAYpeFM1bBseLpTt2W-lNBUR6cwTKpeC_3CqfrGkV5MooNjs1FIhyok7qRYLRZK2ahqwKb4rsMSLVbpCDRFoSGSJxCzokcYvzvGl6IDGU-wRL1WoY/s1600/rule+book.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="1419" data-original-width="1339" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgim4q5VtgdrVKhikjgR18RbfcPiaDAYpeFM1bBseLpTt2W-lNBUR6cwTKpeC_3CqfrGkV5MooNjs1FIhyok7qRYLRZK2ahqwKb4rsMSLVbpCDRFoSGSJxCzokcYvzvGl6IDGU-wRL1WoY/s200/rule+book.jpg" width="188" /></a></div>
<div class="MsoNormal">
I will start by pointing out that the rule
books are very different. Association
Football has 17 rules of play and they can be fully described in a seven-page
memo. The rule book for college level
American Football, as published by the NCAA, is 220 pages long. Even if we
overlook the 14 pages compromising the title, table of contents,
acknowledgements, and index, there are still 206 pages of rules. That doesn’t mean that Association Football
is easier, rather it means that there is a much broader scope for innovation
and improvisation. That is definitely
something we see in the digital age business.
The scope for innovation, collaboration, co-creation and changing the
business model is enormous. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<h3>
The Field of Play Varies</h3>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgoCX40Wjk7JyvncO9N-AwQ-tmaxLSCiuhn9URh7_TfbcBcOnnP26X59eqozlp1bVrnzJO0-0TbCfziL7Vv0kMIjB7BvNznE40VGQ24W5creupgVJTFgvUgVqZWxXIplcIc_w8Cnveq0Qo/s1600/soccer+field.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="1600" data-original-width="1114" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgoCX40Wjk7JyvncO9N-AwQ-tmaxLSCiuhn9URh7_TfbcBcOnnP26X59eqozlp1bVrnzJO0-0TbCfziL7Vv0kMIjB7BvNznE40VGQ24W5creupgVJTFgvUgVqZWxXIplcIc_w8Cnveq0Qo/s200/soccer+field.jpg" width="138" /></a></div>
<div class="MsoNormal">
One of the similarities is a field with sidelines and end-lines
that clearly delineate “in-bounds” from “out-of-bounds” with both types of
football. However, the Association Football
field is larger and what is even more enlightening is that the dimensions can
vary from field to field within a minimum and maximum length and width. And speaking of the field, the markings on
the field are also different. American Football
has yard markers and hash marks so you can determine your precise location on
the field. An Association Football field
has a center line with a center circle and then lines defining space around the
goals and in the corners. But no other
markings on the field – just lots of open space, Digital age business is also operating in a
field that is varying all the time and is less clearly defined than industrial
age business. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<h3>
Goals and Scoring are Different</h3>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjZD_z7OowbW2eyiv_U9yv-2qCCihga2jLqfxyLQEC-RmSVMxMlZo9CWW_uMwQcI-LPGtMsRpS_nXteOEjt-VbXVq0NFa0Uu2LGimQT7MOuqBD9ldaTkvDfiVQr0nTKGts_idqU-3ctchQ/s1600/goal+net.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="650" data-original-width="858" height="151" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjZD_z7OowbW2eyiv_U9yv-2qCCihga2jLqfxyLQEC-RmSVMxMlZo9CWW_uMwQcI-LPGtMsRpS_nXteOEjt-VbXVq0NFa0Uu2LGimQT7MOuqBD9ldaTkvDfiVQr0nTKGts_idqU-3ctchQ/s200/goal+net.png" width="200" /></a></div>
<div class="MsoNormal">
Another point of both similarity and contrast is that there
is a goal at either end of the field
with both types of football.
However, there are some differences in the goals. The Association Football goal is resting on
the ground and is closed on all four sides – left, right, top, and bottom. If a kicked ball crosses the plane of the box
defined by the goal, there is a score. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The American Football goal is suspended in the air. It is only defined on three sides – left,
right, and bottom. If a kicked ball
crosses the plane of the goal, there is a score. But the magnitude of the score varies
depending upon whether the kick it is a field goal or a point after
attempt. In addition, American Football
has three other ways to score: a touchdown, a safety, or a two-point
conversion. There is a lot of complexity
in the scoring system for American Football. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Association Football scoring is much simpler –
kick a goal, score a point. However, it is interesting to observe that the
scores in a match in Association Football are much lower than American
Football. Just because the scoring is
easy to understand, that does not mean it is easy to accomplish. Applying this to digital age business, we see
that there is no advantage in complexity.
Businesses are much closer to their customers and suppliers. Success is measured in real-time when the
transaction occurs. That doesn’t make it
easier. If your team is much quicker and
more agile than the competition it will likely score many more goals. Complexity does not add value to digital age
businesses.</div>
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<br /></div>
<h3>
There are Still Referees but Penalties are Different</h3>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjwdW8lnmpjE-8z72aLqaZbW2oMpux1dkwyNnnbayNarkOPQmlvkmE1GnNTHLtSnWwHY5QJjpEYCS7QLpByFACJ6v-Y8y6909BFe4UeM3DCn_jtW2gKgkVz_ocQLPNDVHsbhOgrfOc1jsk/s1600/soccer+ref.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="1068" data-original-width="1600" height="133" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjwdW8lnmpjE-8z72aLqaZbW2oMpux1dkwyNnnbayNarkOPQmlvkmE1GnNTHLtSnWwHY5QJjpEYCS7QLpByFACJ6v-Y8y6909BFe4UeM3DCn_jtW2gKgkVz_ocQLPNDVHsbhOgrfOc1jsk/s200/soccer+ref.jpg" width="200" /></a></div>
<div class="MsoNormal">
A similarity between the two styles of football is that
there are referees, and umpires or linesmen who watch for infractions and can
penalize a team or player. Of course,
the nature of the infractions is different because the rules are
different. And the nature of the
penalties is also different. As a
general rule, American Football infractions will put you in a less advantageous
position with respect to scoring or preventing a score (penalty yards). Whereas, Association Football infractions
will give the ball to the opposing team with an opportunity for a free
kick. </div>
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<br /></div>
<div class="MsoNormal">
Continuing with our discussion of
business. Most infractions in industrial
age business practices were a setback, but the business could continue
operating with its current strategy, customers and suppliers. In digital business, information is
immediately and widely shared.
Information, or misinformation, about an infraction can go viral in a
matter of hours. This will directly
impact your ability to do business with customers and suppliers. When an infraction occurs, you find yourself
immediately playing defense. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<h3>
Free Style Rather Than Set Plays</h3>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg8GZD-3Mxy-vQK8Qoq5QZprm6bY5PP8igohNkMXZGw6AKZgyM24HXgXya-eG_enr3TLa88tYIKgwHU09hLI-COo-bbXT_Kb1HUjY0hRGNmsYjinVVYwnZlbZzL1OaAghaZQ2DNEqb84Vo/s1600/Moving+the+ball+forward.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="1067" data-original-width="1600" height="133" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg8GZD-3Mxy-vQK8Qoq5QZprm6bY5PP8igohNkMXZGw6AKZgyM24HXgXya-eG_enr3TLa88tYIKgwHU09hLI-COo-bbXT_Kb1HUjY0hRGNmsYjinVVYwnZlbZzL1OaAghaZQ2DNEqb84Vo/s200/Moving+the+ball+forward.jpg" width="200" /></a></div>
<div class="MsoNormal">
In fact, that brings us to the actual playing of the
game. In American Football, each player
had a specific position with rules for that position and specific assignment on
each play. This principle is not
followed as closely in Association Football.
The goalie does have some very specific rules, but many of those only
apply when the goalie is in front of the goal.
There are just three other positions on the Association Football team,
that of defenders, midfielders, and forwards.
The team can determine how many team members from each category are on
the field at one time, as long as the total is eleven. And while these positions have general
responsibilities, they are fluid. Often
interchanging between each other within a position category and helping each
other across categories on both offense and defense. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
There is a decided parallel in digital age
business. Roles are fluid. Virtual teams are created for an opportunity
and when something changes in the ecosystem, the team membership or team leadership
changes in a heart beat to react to the new opportunity.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<h3>
The Clock Continues to Run</h3>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjB7HmW9jTyOVsXbUONkHIVAs0HbbsgJad2thkpAfZLYdjCngHXF4zKFqbQ4cirCyrXCxj9-LzcpBG4ysSewSo4Nz2OMhc6-7QPYyCfFWdb5TEWaVp1FSMutkslegFiK6AorUBL8aHp5Jk/s1600/scoreboard+clock.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="1132" data-original-width="1600" height="141" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjB7HmW9jTyOVsXbUONkHIVAs0HbbsgJad2thkpAfZLYdjCngHXF4zKFqbQ4cirCyrXCxj9-LzcpBG4ysSewSo4Nz2OMhc6-7QPYyCfFWdb5TEWaVp1FSMutkslegFiK6AorUBL8aHp5Jk/s200/scoreboard+clock.jpg" width="200" /></a></div>
<div class="MsoNormal">
So it is no surprise to see the play on the field of an
Association Football match is much less structured or choreographed as compared
to an American Football play. The ball
is always moving; it does not stop between plays. And a team finds itself switching between
offense to defense in a moment as a pass is intercepted or a kick goes awry. When things change, clock keeps running and
there is no stop to run a set play. Instead,
each team is constantly on the move as they strive for ball control and to gain
an advantage. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Digital age business moves
at pace that is much faster than industrial age. The technology is rapidly changing, customer
needs and expectations are changing with each new transaction, and the amount
of data is growing exponentially. Also,
the clock doesn’t stop in digital age business.
It is conducted on a global level and is expected to be “on”
24/7/365. An industrial age business
trying to stop and setup a play in the digital age will find the competition
has swept pass them.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<h3>
A New Normal</h3>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjziFS64jKmEOPKXXIIQ9PrX0jlnc_u6Vnk9hidju9ONPpZ6hXvfSTrUbaMp56tZA-RHiU4mcWY9YZFRmSyHCvKK2TyZUCDCmrRHKfxwhyNVs3wx5vZBPlGDRHSa3xvgHqN4pqp_wGLQvA/s1600/new+normal.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="1173" data-original-width="1600" height="146" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjziFS64jKmEOPKXXIIQ9PrX0jlnc_u6Vnk9hidju9ONPpZ6hXvfSTrUbaMp56tZA-RHiU4mcWY9YZFRmSyHCvKK2TyZUCDCmrRHKfxwhyNVs3wx5vZBPlGDRHSa3xvgHqN4pqp_wGLQvA/s200/new+normal.jpg" width="200" /></a></div>
<div class="MsoNormal">
It is instructive to note that what is normal play in an
Association Football match would be called a “busted play” in American Football. Granted there are special plays in
Association Football that may start action on the field such as a corner kick
or free kick, but even then, the action is very fluid. A good rule of thumb is that the team with
the better agility and stamina will have a distinct advantage in Association
Football. Since the ball is always
moving, team members must always be moving to either defend their goal or
attack their opponent’s goal. </div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
The
implication for digital age business is that you need empowered agile teams
that can innovate and co-create in real-time to be successful. The command and control structure of
industrial age business is too slow. You
can’t operate with the coach calling all the plays like we do in American
Football. Instead, the team members are
assessing the environment, taking instant advantage of a mistake by the other
team and moving the ball toward the goal.
When the opportunity arises they act, they don’t stop to ask permission.</div>
<div class="MsoNormal">
<br /></div>
<h2>
Final Thoughts</h2>
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
Well this metaphor is becoming a bit tortured so let’s wrap
this up. Managing in the industrial age
and managing in the digital age are different.
The skills that were needed for one, can become pitfalls for the
other. If you were successful as an
industrial age business, you will need to make some changes to thrive in the
digital age. Be thoughtful how you make
the change. </div>
<div class="MsoNormal">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhsh9TdU7C9OXSNqmSXnHW-FlazgXruwbLdEdr-djx_rFwuFmsfLLW__dHuYXNLGU20Ph3opENCI7lobVtRYP6EqNMxXCgFRDXSQomryUinJiQleb0nldTbr2gsFZZLINTSPh-4Hb5ktaE/s1600/change+2.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="901" data-original-width="1600" height="112" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhsh9TdU7C9OXSNqmSXnHW-FlazgXruwbLdEdr-djx_rFwuFmsfLLW__dHuYXNLGU20Ph3opENCI7lobVtRYP6EqNMxXCgFRDXSQomryUinJiQleb0nldTbr2gsFZZLINTSPh-4Hb5ktaE/s200/change+2.jpg" width="200" /></a></div>
<div class="MsoNormal">
Chances are, there will be a
time of transition where part of your business will need to continue to operate
in the industrial age to serve your industrial age customers. But as that customer base shrinks, you will
need to be serving digital age customers with a digital age management
approach. If you don’t, you can bet that
someone else will. The management
approaches are different. Roles and
responsibilities are different. The pace
of business is different. If you don’t
change, or if only part of your organization changes, you won’t be successful
at the new style of football.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<h3>
American Football (Industrial Age) Success Criteria</h3>
<div class="MsoNormal">
American Football success often depended upon how well a
team performed on three different attributes of team preparation and
performance. Ideally, you were good at
all three, but you could make up for a weakness in on attribute with superior
strengths in the other two:</div>
<div class="MsoNormal">
</div>
<ul>
<li>Athletes
that are big, strong and fast.</li>
<li>Athletes who have been taught the skills to
perform their positions well</li>
<li>Coaches who call good plays based upon the
strengths and weaknesses of their team and the opponent’s team</li>
</ul>
<br />
<div class="MsoListParagraphCxSpFirst" style="mso-list: l1 level1 lfo2; text-indent: -.25in;">
<!--[if !supportLists]--><o:p></o:p></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l1 level1 lfo2; text-indent: -.25in;">
<o:p></o:p></div>
<div class="MsoListParagraphCxSpLast" style="mso-list: l1 level1 lfo2; text-indent: -.25in;">
<o:p></o:p></div>
<div class="MsoNormal">
Industrial age success has been based upon a strategy that
led to having a sustainable competitive advantage. Just like American Football this was usually
based upon a combination of three things.</div>
<div class="MsoNormal">
</div>
<ul>
<li>Proprietary, innovative or customized products or
service</li>
<li>Excellent business processes – internal and
customer-facing</li>
<li>Management and control systems that ensured
everything was operating as it should. </li>
</ul>
<br />
<div class="MsoListParagraphCxSpLast" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
<o:p></o:p></div>
<div class="MsoNormal">
A competitive advantage was often rooted in one of those and
strongly supported by the other two. You
strengthened your business by becoming better at any or all of these. Industrial age business competition rewarded
the company in an industry that was the best at doing these. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<h3>
Association Football (Digital Age) Success Criteria</h3>
<div class="MsoNormal">
But Association Football is different. There are still three factors that are
indicators of successful team, but the factors are different. Some of the differences are subtle and some
are profound.</div>
<div class="MsoNormal">
</div>
<ul>
<li>Athletes that are fast, agile, and with great
stamina</li>
<li>Athletes who are skilled in handling the ball,
seeing the field and working together to create opportunities</li>
<li>Coaches who ensure the team is physically
prepared and then manages the chemistry and talents of those on the field to
find the best combination for the circumstances</li>
</ul>
<br />
<div class="MsoListParagraphCxSpLast" style="mso-list: l2 level1 lfo4; text-indent: -.25in;">
<o:p></o:p></div>
<div class="MsoNormal">
So comparing the success factors for football; in
Association Football the athlete’s agility and stamina is prized over raw
strength, skills are important but the critical skills are different, and the
coaches have less direct control but must instead rely on the instincts of
an empowered team. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
And there is a parallel in digital age business performance. We find that there is a new management strategy
for success that is emerging. Digital
business requires very fast decision-making by those on the front line of
business – the annual strategic planning process just won’t cut it. The amount of data and information is
over-whelming unless there is a system that makes sense of it. Competitive advantage is based upon how
quickly you can react to changes with excellence and at scale. As it is developing, we are finding that there
are three keys to success:</div>
<div class="MsoNormal">
</div>
<ul>
<li>Digital technology enablers are deployed: IoT,
Cloud, big data, appropriate AI or robotics</li>
<li>Empowered cross-functional. cross-organizational
virtual teams co-create value that is aligned with the corporate strategic
imperatives</li>
<li>Management and ecosystems leverage successes and
provide clear organizational and operational vision</li>
</ul>
<br />
<div class="MsoListParagraphCxSpLast" style="mso-list: l3 level1 lfo3; text-indent: -.25in;">
<o:p></o:p></div>
<div class="MsoNormal">
So we find in digital age businesses, digital technology
implementation is more important than the proprietary technology. The business
must rely more on empower teams to recognize and take advantage of
opportunities rather than fixed processes that determine what can and cannot be
done. Finally dynamic learning by the organization to take advantage of
emerging opportunities rather than management control and precisely predicted
performance.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjFhLjPMPW_bkUjB-fymjcWaPA9unmbwgAe83IAN7m67r7eKGRaeiYPEB9vLD6mSauCKmnLzh4nRBqjIiGk96qMZSSJosYElGe9zVuqm8UDgpFXkXz9XJWYu5l6tRsAsnAr9ndQnAOsOCQ/s1600/future.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="1067" data-original-width="1600" height="133" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjFhLjPMPW_bkUjB-fymjcWaPA9unmbwgAe83IAN7m67r7eKGRaeiYPEB9vLD6mSauCKmnLzh4nRBqjIiGk96qMZSSJosYElGe9zVuqm8UDgpFXkXz9XJWYu5l6tRsAsnAr9ndQnAOsOCQ/s200/future.jpg" width="200" /></a></div>
<div class="MsoNormal">
The good news is that whether in the industrial age or
the digital age, you are still playing football. What you need to recognize is that you are no
longer playing American Football, it is now Association Football – and that
means many things about the game have changed.<o:p></o:p></div>
<div class="MsoNormal">
</div>
<div class="MsoNormal">
<br /></div>
Ray Sheenhttp://www.blogger.com/profile/08035263259880392470noreply@blogger.com2tag:blogger.com,1999:blog-6088554710615410597.post-5121568560852749532017-10-23T09:51:00.000-04:002017-10-23T09:51:28.293-04:00IoT and Product Development<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgNIWdXGBBHYOzY6ivdjmJri-ecOEOHzlP4fulquNcvJ7sUZIgi4jG_Xn0G0Sk6as9V6tHt0VF80iwBr3ACaRhJqWo-NjrKyqwVxBzUcfxOj5jWPx6j1IFIt1-Dv-zbcYrmkzx0Hrzg5aw/s1600/IoT.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="1067" data-original-width="1600" height="213" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgNIWdXGBBHYOzY6ivdjmJri-ecOEOHzlP4fulquNcvJ7sUZIgi4jG_Xn0G0Sk6as9V6tHt0VF80iwBr3ACaRhJqWo-NjrKyqwVxBzUcfxOj5jWPx6j1IFIt1-Dv-zbcYrmkzx0Hrzg5aw/s320/IoT.jpg" width="320" /></a></div>
<div class="MsoNormal">
People have been developing products for thousands of years.
The general process is well understood: 1) Identify a need, 2) Imagine a product concept
that could address that need, 3) Create a prototype of the product, 4) Test it
and refine it until it works satisfactorily, 5) Produce, market, and sell it to
your customers. There are numerous
product development methodologies that are tailored to specific companies or
industries, but they follow this same pattern.
The Internet of Things (IoT) will transform each of those steps.<o:p></o:p><br />
<br /></div>
<div class="MsoNormal">
Let me define what I mean by IoT. I am using it in its broad context. The IoT is a network of devices, sensors,
actuators, computers, displays, and any other physical device you can imagine
that can communicate on a network. That
means it either creates, distributes, displays or reacts to data on the
network. And the network could be
hard-wired or wireless.<o:p></o:p><br />
<br /></div>
<div class="MsoNormal">
So, let’s consider what the IoT will mean to product
development.<o:p></o:p><br />
<br /></div>
<h3>
Identifying a Need</h3>
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
The IoT will reduce the guesswork when it comes to
identifying a customer need. First, many
current products have little or no IoT presence, but they could. So, an obvious new product development is to
add IoT capability to existing products.
Then with the IoT information, look for defects, inefficiencies and
other problems with existing products and processes. These are the next obvious candidates for new
products.<o:p></o:p><br />
<br /></div>
<h3>
Imagine a Product Concept</h3>
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
The characteristics of the concept will be affected by the
IoT. The developers will need to
consider the use of the product and all the ways that meaningful data could be
generated and used, both within the product and remotely. The communication capability of the product
can dramatically expand its ability to access data and coordinate its actions
with other nearby products and systems.
The product will no longer be an isolated and autonomous system. Now the
concept is an integrated system with significantly enhanced capabilities.<o:p></o:p><br />
<br /></div>
<h3>
Create a Prototype</h3>
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
Now the IoT moves from not just the product and product idea, but
into the actual product development process.
With IoT technology, the developers can connect to 3D printers to create
prototype parts in a fraction of the time that was required formerly. In addition, since much of the product
functionality is likely to be based upon the software applications and both
onboard and remote processing, changes to functionality can be prototyped with
changes to a few lines of code. This
will also shorten the time it takes to create a prototype. <o:p></o:p><br />
<br /></div>
<div class="MsoNormal">
Many of us who have been through multiple development projects
know that you seldom get everything right with the first prototype. So you build a second or third until
you achieve the performance that is desired.
This often creates delays, overruns, and eventually cutting corners
elsewhere in the project. But again,
with the IoT and the 3D printing and nightly downloads of new software, many
prototypes can be quickly created and the lessons from one can be incorporated
into the next and so on. Implementing
the development best practice of iterative design and fast failure.<o:p></o:p><br />
<br /></div>
<h3>
Refine and Test It</h3>
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
Now let’s consider how the IoT will impact the detailed
product design definition, process development and verification testing
processes. Both the new product IoT
capability and the IoT capabilities of the test equipment and manufacturing
process equipment will be used. The
product IoT will provide data throughout testing to establish a performance
database. And with an extensive use of
sensors in the product and the communication capability of IoT, this will be rich
source of data for “tweaking” performance and fully characterizing the product
characteristics. Add to this, the IoT
capability of the test equipment being used and the designers and developers
will have immediate access to extensive data that will both uncover hidden design
flaws and then demonstrate acceptable performance. <o:p></o:p><br />
<br /></div>
<div class="MsoNormal">
But the even bigger benefit is likely to be based upon the
IoT capability of the manufacturing process equipment – both in-house and at
suppliers. Manufacturing process
development is often costly. This is especially
true do to the ongoing changes when the doing concurrent engineering – that is
development the product and process concurrently. Yet this concurrent approach is used because an
even greater cost to the business is the delay in product launch that results
from doing the manufacturing process development sequentially after the product
development is finished. The IoT
simplifies the change process with manufacturing equipment and at suppliers by
electronically communicating design changes.
In addition, the IoT provides real-time process data so manufacturing
process issues – both in-house and at suppliers – are identified quickly,
reducing the time needed to qualify the production process. <o:p></o:p><br />
<br /></div>
<h3>
Produce, Market, and Sell</h3>
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
The IoT will also improve our ability to product and market
the new product. Let’s talk about
production first. The IoT that is in the
production equipment will enable the application of predictive maintenance
algorithms that will reduce unplanned down-time and smooth production flow. In addition, the IoT sensors on the
manufacturing equipment will enable a higher degree of real-time statistical
process control that will decrease defects and improve overall product
quality. And to the extent that a
product is customized for each customer order, the IoT capability of the
product will allow the manufacturing process to install the unique software and
configuration just prior to packaging and shipping the product. This will also serve to smooth out
manufacturing flow and reduce scrap and rework.<o:p></o:p><br />
<br /></div>
<div class="MsoNormal">
The IoT can also enhance the marketing of the new
product. Of course, one obvious element
of marketing is to promote the IoT capability of the product and the advantages
for the customer. In addition, through
IoT interfaces, the marketing and sales personnel will know product
availability. Further, they can take a
customer’s unique order information and communicate it right to operations in
order to have a custom configured product.
Finally, the sales person, or even the customer, can track the
production and delivery status of the product to know when it is coming and to
be prepared for its arrival. <o:p></o:p></div>
<br />
<div class="MsoNormal">
IoT is not just a buzzword or fad. It is transforming companies and
industries. It will also transform the
product development process. <o:p></o:p></div>
Ray Sheenhttp://www.blogger.com/profile/08035263259880392470noreply@blogger.com2tag:blogger.com,1999:blog-6088554710615410597.post-21955367284815073822017-05-30T06:11:00.000-04:002017-05-31T21:25:03.175-04:00Stakeholder Personas Part 5 - Uninterested<div class="MsoNormal">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgZ5pb4eZnysvb48Bjn6hUiED3TEyc7uaGGaqXxWRuW_nC15V2uCky8NIPmjk3evjtTM5zJh1818jL3SgDx9UIwFf7Q66zbXUjGVCxhMyE3I4stvSeBG0afF8z1hKopZThR-4afj6MR9Ro/s1600/Stakeholder+No+nterest.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="340" data-original-width="455" height="239" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgZ5pb4eZnysvb48Bjn6hUiED3TEyc7uaGGaqXxWRuW_nC15V2uCky8NIPmjk3evjtTM5zJh1818jL3SgDx9UIwFf7Q66zbXUjGVCxhMyE3I4stvSeBG0afF8z1hKopZThR-4afj6MR9Ro/s320/Stakeholder+No+nterest.png" width="320" /></a></div>
Stakeholder management is a major aspect of project
management. The Project Management
Institute identifies it as one of the ten major knowledge areas of project
management and has numerous tools and best practices for managing
stakeholders. But let’s face it. You don’t manage the stakeholders. In fact, it is much more likely that they are
managing you. So what you manage are
your interactions with the stakeholders.
Now “interactions” implies that there are at least two individuals
involved, you and the stakeholder. In
this series, I want to address the best practices for interacting with
stakeholders based upon how they normally interact. This is based upon what they consider to be
compelling issues and their primary area of concern. I have identified five personas that
represent the types of stakeholders I have encountered over the years. These are the <a href="http://ray-sheen.blogspot.com/2017/02/stakeholder-personas-part-1-action.html" target="_blank">action-oriented stakeholder</a>,
the <a href="http://ray-sheen.blogspot.com/2017/02/stakeholder-personas-part-2-expert.html" target="_blank">expert-oriented stakeholder</a>, the <a href="http://ray-sheen.blogspot.com/2017/03/stakeholder-personas-part-3-process.html" target="_blank">process-oriented stakeholder</a>, the <a href="http://ray-sheen.blogspot.com/2017/03/stakeholder-personas-part-4-data.html" target="_blank">data-orientedstakeholder</a> and finally the uninterested stakeholder. In this post, I will talk about interacting
with the uninterested stakeholder.<o:p></o:p></div>
<h2>
The Stakeholder</h2>
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
The uninterested stakeholder can be an asset or liability on
a project. If their approval or
involvement is not needed, they become an asset because they do not add
constraints to resources or schedules.
However, if they control project resources or their approval is needed
to move through a decision point, they will be a liability. These individuals may say they are interested,
but actions speak louder than words.
They do not attend scheduled meetings.
They do not respond to requests.
They do not assign resources.
Their actions show that the project is a very low priority with them. Sometimes this disinterest is due to other
urgent crisis projects or activities for which they have responsibility. Sometimes this disinterest is due to lack of
understanding and awareness of the project benefits and impact. Sometimes this disinterest is a means of
showing their disapproval of the project or project approach. Occasionally the uninterested stakeholder will
become actively opposed to the project. In
that case, their behavior is no longer one of neglect, it is turns to attacks
on the project and all that it represents. <o:p></o:p></div>
<h2>
Interaction Style</h2>
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
The key to interacting with this stakeholder depends upon
whether you need them to be engaged or not.
If you do not need their active involvement, then send them regular
project communication using the format or approach that you use with one of the
other stakeholder types. They probably
won’t look at it, but you have provided the information if they do decide to
engage. <o:p></o:p><br />
<br /></div>
<div class="MsoNormal">
However, if you need their active involvement, find a point
of interest on their part and exploit it.
The two most effective approaches I have found to do this is first to
work through another stakeholder or subject matter expert who has regular
interaction with the uninterested stakeholder.
Ask them to exert their influence on the uninterested stakeholder to get
them to engage. This personal appeal
from a trusted colleague will often get you that first meeting or interview.<o:p></o:p></div>
<div class="MsoNormal">
In addition, you need to approach the uninterested
stakeholder with their “WIIFM” in the forefront. <o:p></o:p></div>
<div class="MsoNormal">
“WIIFM” stands for “What’s In It For Me?” <o:p></o:p><br />
<br /></div>
<div class="MsoNormal">
You will probably only have a few minutes for the
interaction, so focus on how it impacts them. Personalize the project activity
and impact. Give them a reason to care.<o:p></o:p></div>
<h2>
Key Messages</h2>
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
Do some research ahead of time and determine that
stakeholder’s biggest issues or objectives.
Then explain your project from the standpoint of how it impacts those
issues or objectives. They may be a
minor part of your overall project, but that is the hook that will catch them
and gain their engagement. So, if they
are worried about customer satisfaction, start your presentation or discussion
with the impact your project has on the customer. If there are concerned about cost control, lead
with the impact your project will have on the cost structure of the
organization. While it is appropriate
to discuss the full project, don’t dwell on aspects that do not relate to their
WIIFM. Also, be very clear why you need
their engagement. Do you need resources,
approval, or a decision? Make it easy for
them to decide immediately so they do not need to re-engage with the project.<o:p></o:p></div>
<h2>
Good News and Bad News</h2>
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
For these stakeholders, good news is that this is the last
time you will need to interact with them on this project and bad news is that they
must now get involved on a regular basis with the project. Plan your interaction carefully. First connect with them on the WIIFM. Then give them the good news or bad news and
explain its bearing on their WIIFM.
Finally, ask for what you need from them – resources, decision, access,
approval – and ask for everything you need so that they won’t be required to
continually interact unless they choose to do so. Keep in mind, they are probably considering
the fact that they are interacting with you to be bad news. Give them the good news that this is the only
interaction needed; assuming that is true.
If there is a need for more interactions, ask them the manner in which they
want those to occur.<o:p></o:p></div>
<h2>
Final Thoughts</h2>
<div class="MsoNormal">
<o:p></o:p></div>
<br />
<div class="MsoNormal">
These stakeholders are either a blessing or a curse to your
project. If you don’t need their active
involvement, they are a blessing because they don’t create roadblocks or
impediments. If you need their involvement,
they add extra work as you must carefully plan the interactions to get the most
out of their infrequent occurrence. I
have occasionally won over a few uninterested stakeholders by working with them
and my Project Charter. We modified the
Charter so as to address an item of major concern for that stakeholder. And I admit, I modified a project plan one
time in order to avoid an uninterested stakeholder. The project was the phased launch of a new process in the Operations organization. I modified the plan to do the initial launch phase in the locations with a very interested and engaged Operations Manager. .I delayed to the last phase the launch into the location managed by the uninterested Operations Manager. By that time, the other Operations Managers would be able to influence him to support the launch in his operation.<o:p></o:p></div>
Ray Sheenhttp://www.blogger.com/profile/08035263259880392470noreply@blogger.com1tag:blogger.com,1999:blog-6088554710615410597.post-7147330150859895482017-03-27T11:03:00.000-04:002017-05-31T21:06:33.275-04:00Stakeholder Personas Part 4 - Data Oriented<div class="MsoNormal">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiUTytXxYovXY5ATb_QMxyixtpFmz0LFbkZgnO06x5TxK1YdHwip7OxAs4dChP4T16kGsEiWL-7_VuMYGVfT-tt21-QAsOIHNro4aiIO0vF6l7BBUYkcGuFRXwE2SJqqVBit8UFyEit4GI/s1600/Stakeholder+Data.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="242" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiUTytXxYovXY5ATb_QMxyixtpFmz0LFbkZgnO06x5TxK1YdHwip7OxAs4dChP4T16kGsEiWL-7_VuMYGVfT-tt21-QAsOIHNro4aiIO0vF6l7BBUYkcGuFRXwE2SJqqVBit8UFyEit4GI/s320/Stakeholder+Data.png" width="320" /></a></div>
Stakeholder management is a major aspect of project
management. The Project Management
Institute identifies it as one of the ten major knowledge areas of project
management and has numerous tools and best practices for managing
stakeholders. But let’s face it. You don’t manage the stakeholders. In fact, it is much more likely that they are
managing you. So what you manage are
your interactions with the stakeholders.
Now “interactions” implies that there are at least two individuals
involved, you and the stakeholder. In
this series, I want to address the best practices for interacting with
stakeholders based upon how they normally interact. This is based upon what they consider to be
compelling issues and their primary area of concern. I have identified five personas that
represent the types of stakeholders I have encountered over the years. These are the <a href="http://ray-sheen.blogspot.com/2017/02/stakeholder-personas-part-1-action.html" target="_blank">action-oriented stakeholder</a>,
the <a href="http://ray-sheen.blogspot.com/2017/02/stakeholder-personas-part-2-expert.html" target="_blank">expert-oriented stakeholder</a>, the<a href="http://ray-sheen.blogspot.com/2017/03/stakeholder-personas-part-3-process.html" target="_blank"> process-oriented stakeholder</a>, the data-oriented
stakeholder and finally the <a href="http://ray-sheen.blogspot.com/2017/05/stakeholder-personas-part-5-uninterested.html" target="_blank">uninterested stakeholder</a>. In this post I will talk about interacting
with the data-oriented stakeholder.<o:p></o:p><br />
<br /></div>
<div class="MsoNormal">
<h2>
The Stakeholder</h2>
<o:p></o:p></div>
<div class="MsoNormal">
The data-oriented stakeholder trusts the data. They don’t care who collected it or what
procedure they used, provided the approach was valid. They just want to know the facts. Give them test results, survey results, or
the output from your model, and they are ready to make a decision. Give them your opinion, or even the opinion
of several subject matter experts, and they will still want to go run a test or
do a study to confirm it with facts.
They believe that mistakes are made when we make decisions based upon
assumptions and opinions - facts are needed to reduce the risk. They may ask where or how you got the facts,
but that is just to be certain that you are not making them up or using
inappropriate data. And you can count on
them to check the math on your presentation slides to be sure everything is
adding up. If there is a mistake, they
will catch it, and at that point you will have lost credibility. <o:p></o:p><br />
<br /></div>
<div class="MsoNormal">
<h2>
Interaction Style</h2>
<o:p></o:p></div>
<div class="MsoNormal">
The key to interaction with this stakeholder will be to
communicate through data. You can
summarize the data, but always be ready to provide the details behind your
summary and conclusions. These
individuals will often appreciate a statistical analysis of the data – and they
will understand the statistics so be sure you do your calculations correctly. If there are holes in the data, know why you
do not have that data and be ready to explain either why it does not matter or
what you are doing to collect that data.
The types of questions they will be asking are: <o:p></o:p></div>
<div class="MsoNormal">
“What tests or analysis did you do and what was the result?”<o:p></o:p></div>
<div class="MsoNormal">
“How many tests have you run? How big was your sample in the study?”<o:p></o:p></div>
<div class="MsoNormal">
“Is this consistent with other data we have seen? If not,
why not?”<o:p></o:p></div>
<div class="MsoNormal">
They would appreciate getting the full data set from your
test or study. You don’t need to provide
that in a presentation, but you should have a handout ready to give to them
that includes that data.<o:p></o:p></div>
<div class="MsoNormal">
If the data is clear, they will make a quick decision. If the data is inconclusive or incomplete,
they will ask for more studies, tests, and analysis until the data gives a
clear picture. They do not want to be
rushed or pressured into making a decision.
<o:p></o:p><br />
<br /></div>
<div class="MsoNormal">
<h2>
Key Messages</h2>
<o:p></o:p></div>
<div class="MsoNormal">
When discussing your project, have the actual data – cost,
schedule, or performance data – associated with the issue being discussed. Be ready to explain the thresholds for what
is considered to be good or acceptable levels and what is a problem. You can then defend your position or ask for
your change based upon what the data says.
The discussions should focus on the validity and completeness of the
data followed by the implication for your project or organization. If you don’t have data, don’t ask for a
decision. Instead discuss the approach you will be using to collect data.<o:p></o:p><br />
<br /></div>
<div class="MsoNormal">
<h2>
Good News and Bad News</h2>
<o:p></o:p></div>
<div class="MsoNormal">
For these individuals, bad news is missing, suspect or
incomplete data and good news is clear valid data that tells an unequivocal
story. Even if something catastrophic
happened on the project, if the data clearly indicates the cause and you are
able to correct or avoid that cause in the future, this will be considered good
news. However, if something either good
or bad happens and you don’t know why, that is bad news to this
stakeholder. It is an indication of an
out of control situation. If you find
yourself in that position, be ready with a plan for investigation that will
lead to facts and data to explain what happened.<o:p></o:p><br />
<br /></div>
<div class="MsoNormal">
<h2>
Final Thoughts</h2>
<o:p></o:p></div>
If you come to these individuals armed with facts, data, and
analysis, these individuals will be supportive. If you don’t have data or you
can’t explain it, they will tear you apart.
I have had the privilege to work
with several stakeholders who operated in this fashion. In one case, I was able to quickly make a
major scope change in a large project because I had the data to back up my
recommendation. I must admit that early
in my career I have been caught a few times in meetings with this type of
stakeholder where I did not have my facts straight. Those quickly became very uncomfortable
meetings.<br />
<div class="MsoNormal">
<o:p></o:p></div>
Ray Sheenhttp://www.blogger.com/profile/08035263259880392470noreply@blogger.com0tag:blogger.com,1999:blog-6088554710615410597.post-5603711997026953092017-03-14T11:18:00.000-04:002017-05-31T21:15:14.029-04:00Stakeholder Personas Part 3 - Process Oriented<div class="MsoNormal">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgAm42iWdU-bDBrjvTFZzObp892W2pmsxs0oMNnCnm4FeW5ds27klGHllGc14ZQkixvYL6ckXsibtIreYuEOVot4Ak4HCLw4XRqOuQIEx6lpetoNmP76GTocZ9OFgEKr_ZMjIUx8LWxj2c/s1600/Stakeholder+Process.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="248" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgAm42iWdU-bDBrjvTFZzObp892W2pmsxs0oMNnCnm4FeW5ds27klGHllGc14ZQkixvYL6ckXsibtIreYuEOVot4Ak4HCLw4XRqOuQIEx6lpetoNmP76GTocZ9OFgEKr_ZMjIUx8LWxj2c/s320/Stakeholder+Process.png" width="320" /></a></div>
Stakeholder management is a major aspect of project
management. The Project Management
Institute identifies it as one of the ten major knowledge areas of project
management and has numerous tools and best practices for managing
stakeholders. But let’s face it. You don’t manage the stakeholders. In fact, it is much more likely that they are
managing you. So what you manage are
your interactions with the stakeholders.
Now “interactions” implies that there are at least two individuals
involved, you and the stakeholder. In
this series, I want to address the best practices for interacting with
stakeholders based upon how they normally interact. This is based upon what they consider to be
compelling issues and their primary area of concern. I have identified five personas that
represent the types of stakeholders I have encountered over the years. These are the <a href="http://ray-sheen.blogspot.com/2017/02/stakeholder-personas-part-1-action.html" target="_blank">action-oriented stakeholder</a>,
the <a href="http://ray-sheen.blogspot.com/2017/02/stakeholder-personas-part-2-expert.html" target="_blank">expert-oriented stakeholder</a>, the process-oriented stakeholder, the <a href="http://ray-sheen.blogspot.com/2017/03/stakeholder-personas-part-4-data.html" target="_blank">data-orientedstakeholder</a> and finally the<a href="http://ray-sheen.blogspot.com/2017/05/stakeholder-personas-part-5-uninterested.html" target="_blank"> uninterested stakeholder</a>. In this post I will talk about interacting
with the process-oriented stakeholder.<o:p></o:p><br />
<br /></div>
<div class="MsoNormal">
<h2>
The Stakeholder</h2>
<o:p></o:p></div>
<div class="MsoNormal">
The process-oriented stakeholder trusts the business
processes and procedures. These stakeholders
want to make sure everything is being done the right way. They believe that the business processes,
procedures, and checklists are established for a reason and that reason is to
reduce risk and help the business make wise decisions. In fact, they believe that most mistakes and
problems in the organization are because people did not follow the processes,
procedures, and checklists. And they
have they have the examples to prove their point. They want to know that the correct procedures
are being followed. And if the
circumstances are outside of an existing procedure, they want a structured problem
solving process to be used to deal with the situation and the documentation of
the result to be used in the creation of a new procedure to address that issue
if it ever comes up again. They may come
across as bureaucratic. <o:p></o:p><br />
<br /></div>
<div class="MsoNormal">
<h2>
Interaction Style</h2>
<o:p></o:p></div>
<div class="MsoNormal">
The key to interaction with this stakeholder will be to
communicate through the correct channels for the type of information being presented. If it is a budget report, stick to financial
topics. If it is a schedule status
meeting, don’t get sidetracked into dealing with a personnel issue. Use the correct forum, use the correct
format, and address the correct topics.
The types of questions they will be asking are:</div>
<div class="MsoNormal">
<ul>
<li>“What did you do first and why? Then what? Then what?”</li>
<li>“Have you followed the correct process? What was the result?”</li>
<li>“Have all the appropriate individuals/organizations been
contact? What was their response?”</li>
</ul>
<o:p></o:p></div>
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
They would prefer to see the completed checklist or a step
by step walk-through of the process and what happened at each step. <o:p></o:p></div>
<div class="MsoNormal">
They do not want to be rushed or pressured into making a
decision. They want to go through all
the steps and they believe that by the end of the process the correct decision
will be obvious to everyone and easy to make.
Generally speaking, they do not like argument, debate and controversy.<o:p></o:p><br />
<br /></div>
<div class="MsoNormal">
<h2>
Key Messages</h2>
<o:p></o:p></div>
<div class="MsoNormal">
When discussing your project always explain what procedures
and checklists have been completed or are in-process. Be prepared to discuss the results or conclusions
of the those procedures. If a procedure
is in-process, explain how much progress has been made and how long it will
take to finish the procedure. Then if
the interaction is a decision point, be prepared to explain the options that
are available and the criteria that should be used when selecting an option. Be ready with the documentation of the results
of every procedure, process or checklist that has been completed.<o:p></o:p><br />
<br /></div>
<div class="MsoNormal">
<h2>
Good News and Bad News</h2>
<o:p></o:p></div>
<div class="MsoNormal">
For these individuals, bad news is an individual or team not
following the standard procedures and good news is that, even though something
catastrophic has happened, there was a procedure for that and it is being
followed. They will be very supportive
if you have “played by the rules” and totally unsupportive if they believe the
individual or team is “just winging it.”
If the situation is one for which there is no procedure, process, or
checklist, pick one that is close and use it as a guiding framework. Always have a plan. Even if it is a plan to create a plan – have a
plan.<o:p></o:p><br />
<br /></div>
<div class="MsoNormal">
<h2>
Final Thoughts</h2>
<o:p></o:p></div>
<div class="MsoNormal">
</div>
<div class="MsoNormal">
If you are following the business processes and procedures,
these individuals will be supportive, if you aren’t they will not trust any
information or recommendations you provide.
I have had the privilege to work
with several stakeholders who operated in this fashion. By following the procedures; I found that I
was quickly able to gain their trust and confidence and I could accurately
predict how they would react to almost any situation. By the same token, I have seen project
managers fired during a meeting when they admitted that they had ignored a
procedure. <o:p></o:p></div>
Ray Sheenhttp://www.blogger.com/profile/08035263259880392470noreply@blogger.com0tag:blogger.com,1999:blog-6088554710615410597.post-39597372659973169492017-02-20T13:14:00.000-05:002017-05-31T21:15:41.422-04:00Stakeholder Personas: Part 2 - Expert-Oriented<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiP7UDsmk2PN3EzHv7QAPbQABNbgyvCfBTKOT8u1EzIijMqta6aUqooJ25SbTfz5aUUBkdkUUDGmu5-Mkun_YahHgEUkJwkVPQseNBgBfynH4QE0oPdgvPDsgWL4ISU8PBna0LTnScklO4/s1600/Stakeholder+Expert.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="234" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiP7UDsmk2PN3EzHv7QAPbQABNbgyvCfBTKOT8u1EzIijMqta6aUqooJ25SbTfz5aUUBkdkUUDGmu5-Mkun_YahHgEUkJwkVPQseNBgBfynH4QE0oPdgvPDsgWL4ISU8PBna0LTnScklO4/s320/Stakeholder+Expert.png" width="320" /></a></div>
<div class="MsoNormal">
Stakeholder management is a major aspect of project
management. The Project Management
Institute identifies it as one of the ten major knowledge areas of project
management and has numerous tools and best practices for managing
stakeholders. But let’s face it. You don’t manage the stakeholders. In fact, it is much more likely that they are
managing you. So what you manage are
your interactions with the stakeholders.
Now “interactions” implies that there are at least two individuals
involved, you and the stakeholder. In
this series, I want to address the best practices for interacting with
stakeholders based upon how they normally interact. This is based upon what they consider to be
compelling issues and their primary area of concern. I have identified five personas that
represent the types of stakeholders I have encountered over the years. These are the <a href="http://ray-sheen.blogspot.com/2017/02/stakeholder-personas-part-1-action.html" target="_blank">action-oriented stakeholder</a>,
the expert-oriented stakeholder, the <a href="http://ray-sheen.blogspot.com/2017/03/stakeholder-personas-part-3-process.html" target="_blank">process-oriented stakeholder</a>, the <a href="http://ray-sheen.blogspot.com/2017/03/stakeholder-personas-part-4-data.html" target="_blank">data-orientedstakeholder </a>and finally the <a href="http://ray-sheen.blogspot.com/2017/05/stakeholder-personas-part-5-uninterested.html" target="_blank">uninterested stakeholder</a>. In this post I will talk about interacting
with the expert-oriented stakeholder.<o:p></o:p><br />
<br /></div>
<h2>
The Stakeholder</h2>
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
The expert-oriented stakeholder puts their confidence in experience
and track records of individuals.
Typically, these people are themselves an expert in their area. They are personally self-confident within
their area of expertise and they have developed a network of other experts that
they rely upon. For those inside their
circle of experts, they will provide tremendous support and latitude. For those outside the circle they; are far
less trusting. It is interesting that
some expert-oriented stakeholders put an emphasis on schooling, degrees and
certifications. Others put an emphasis
on the track-record of individuals on other projects. But regardless how the stakeholder determines
who is an expert, once their find one they lean on them and trust their
judgement. These individuals are quick
to delegate authority to experts, and reluctant to delegate it to those whose
expertise they doubt. They definitely
will “play favorites” and won’t hesitate to communicate outside the normal
channels to talk to their network of experts.
<o:p></o:p><br />
<br /></div>
<h2>
Interaction Style</h2>
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
The key to interaction with this stakeholder depends upon
whether you are inside their circle of experts or not. When inside the circle, quick high-level
communication is often all that is needed.
If you are not inside the circle, your communication needs to carry the
support of experts that the stakeholder trusts to be taken seriously. Whether you
are providing a status update, a project review, or an issue report, they will
want to know if what you are telling them has been reviewed and approved by the
experts. Their typical questions from them will be: <o:p></o:p></div>
<div class="MsoNormal">
<br />
<ul>
<li>“Who is working with you on this?”</li>
<li>“Who else have you presented this too? What did they say?”</li>
<li>“Have you talked with …… yet?”</li>
</ul>
<o:p></o:p></div>
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
They would prefer a presentation that leads with who is involved,
the bottom line opinion or decision of those involved, and then if there are
still questions to be resolved, who you would like to have work with you to
resolve them.<o:p></o:p></div>
<div class="MsoNormal">
If their circle of experts are supporting a position, it is
almost certain they will support it also.
If the experts are against it, they will be against it. If the other experts are mixed, they will
study the issue with you. If you can’t
tell them where the other experts stand on the issue, they will send you back
to do more homework.<o:p></o:p><br />
<br /></div>
<h2>
Key Messages</h2>
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
When discussing your project always be ready to bring in
your experts. You do not need to know everything,
but you do need to know when to rely on the experts on the team or in the
organization. If you are presenting a major
decision or issue for resolution, invite other experts to the meeting, or have
their comments and perspective ready to present as part of the support for your
recommendation. Let me also add that
through-out your interactions with this stakeholder, if you are not already in
their circle of experts, you should be aspiring to be. Demonstrate your own expertise, not at the
expense of others, but it is appropriate to acknowledge you experience and
training if they are applicable to the issue being discussed. The
point is that you need to establish you own credibility if you want to move
into that circle.<o:p></o:p><br />
<br /></div>
<h2>
Good News and Bad News</h2>
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
For these individuals, they won’t believe any good news
until it is verified by an expert they trust.
And they won’t get panic over any bad news if your communication of the
bad news includes the experts you are bringing in to help. The first question in their mind is always, “Who?”
Who else has seen this news and what is their opinion? That doesn’t mean you should delay your
communication of bad news until you have experts lined up. You can immediately notify the stakeholder of
the bad news and ask for their help to get you an expert to assist with the
problem resolution.<o:p></o:p><br />
<br /></div>
<h2>
Final Thoughts</h2>
<div class="MsoNormal">
If you are inside the circle of experts, these are great
stakeholders for your project. They will
let you do what you need to do and support you along the way. I have had the privilege to work with several
stakeholders who operated in this fashion.
Once I won their trust, my projects had priority in the organization and
we achieved some fantastic results. I
have also had the misfortune to work for one stakeholder who operated in this
style and whose trust I never won. Every
project of mine was challenged, delayed, and micro-managed. <o:p></o:p></div>
Ray Sheenhttp://www.blogger.com/profile/08035263259880392470noreply@blogger.com0tag:blogger.com,1999:blog-6088554710615410597.post-89430134520853218272017-02-13T12:02:00.000-05:002017-05-31T21:16:24.509-04:00Stakeholder Personas: Part 1 – Action Oriented<div class="MsoNormal">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi0Inc0YOXIVFyDt_dohBNreXPhS3SRi5y7wrnXiRGPN51uiWqILL9uvVp-5lBZoXXWnt5IZCMMRYDsbFkmVrDghX0nRHJpi0X5UigVzEII0SIUYUevR-aCNtp4tsy_Txk0KwfIO0gNpgg/s1600/Stakeholder+Action.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img alt="" border="0" height="235" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi0Inc0YOXIVFyDt_dohBNreXPhS3SRi5y7wrnXiRGPN51uiWqILL9uvVp-5lBZoXXWnt5IZCMMRYDsbFkmVrDghX0nRHJpi0X5UigVzEII0SIUYUevR-aCNtp4tsy_Txk0KwfIO0gNpgg/s320/Stakeholder+Action.png" title="Action Stakeholder" width="320" /></a></div>
Stakeholder management is a major aspect of project
management. The Project Management
Institute identifies it as one of the ten major knowledge areas of project
management and has numerous tools and best practices for managing
stakeholders. But let’s face it. You don’t manage the stakeholders. In fact, it is much more likely that they are
managing you. So what you manage are
your interactions with the stakeholders.</div>
<div class="MsoNormal">
</div>
<div class="MsoNormal">
Now “interactions” implies that there are at least two individuals
involved, you and the stakeholder. In
this series, I want to address the best practices for interacting with
stakeholders based upon how they normally interact. This is based upon what they consider to be
compelling issues and their primary area of concern. I have identified five personas that
represent the types of stakeholders I have encountered over the years. These are the action-oriented stakeholder,
<a href="http://ray-sheen.blogspot.com/2017/02/stakeholder-personas-part-2-expert.html" target="_blank">the expert-oriented stakeholder</a>, the <a href="http://ray-sheen.blogspot.com/2017/03/stakeholder-personas-part-3-process.html" target="_blank">process-oriented stakeholder</a>, the <a href="http://ray-sheen.blogspot.com/2017/03/stakeholder-personas-part-4-data.html" target="_blank">data-orientedstakeholder</a> and finally the <a href="http://ray-sheen.blogspot.com/2017/05/stakeholder-personas-part-5-uninterested.html" target="_blank">uninterested stakeholder</a>. In this post I will talk about interacting
with the action-oriented stakeholder.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<h2>
The Stakeholder</h2>
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
The action-oriented stakeholder likes to see things
happening. They are very interested in
making forward progress so their first concern is always the schedule. They are addicted to adrenaline. They love to be at the center of the action
and are energized by the frenzy of activity.
Problems don’t disappoint them, they excite them because it is an
opportunity to dive into a situation and make something happen. When there isn’t obvious action on a project,
they assume nothing is happening. Typically,
these individuals enjoy the spotlight and attention that goes with being in the
middle of a crisis and working to resolve it.
The fact that a too quick reaction or over-reaction to a problem can
make the problem even worse does not concern them. These individuals can make great change agents
or dynamic leaders in times of crisis.
But they can also exhaust an organization or team over time by creating
unnecessary crises. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<h2>
Interaction Style</h2>
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
The two key elements of any interaction with this
stakeholder is immediacy and the next steps.
They want to know what is happening. Always lead with the schedule when giving them
a status update. If there is a problem
somewhere on your project, they want to know as soon as possible and they want
to know what you are doing. They don’t
need a complete plan, but they want to know you are working on the problem. Their typical questions will be: <o:p></o:p></div>
<div class="MsoNormal">
</div>
<ul>
<li>“What is happening now?”</li>
<li>“What are you going to do next?”</li>
<li>“How can I help?”</li>
</ul>
<o:p></o:p><br />
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
Normally, they prefer frequent short crisp communications
rather than in-depth analysis. They
would rather get a quick text or phone call giving them the current status than
get a well rehearsed formal project presentation or detailed report providing
background and options. <o:p></o:p></div>
<div class="MsoNormal">
They also are ready to make quick decisions. Tell them what you want or need and expect an
immediate response. In fact, a way to
encourage them to make a decision is to let them know that action on a project
has stopped until the decision is made.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<h2>
Key Messages</h2>
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
When discussing your project always have a schedule
status. Explain what has been
accomplished and what is underway. When
presenting a project problem with this stakeholder, you don’t need to have all
the answers. They would rather interact
many times through a series of short-term action plans, than to have one major
interaction with a master plan that covers the entire project and options. In particular, they want to know what you are
doing and what they can do. Expect them
to make quick decisions and to offer help.
I recommend that you interact with frequent concise status updates of
what is happening. Remember, if they are
not aware of any action, they assume nothing is happening. <o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<h2>
Good News and Bad News</h2>
<div class="MsoNormal">
<o:p></o:p></div>
<div class="MsoNormal">
For these stakeholders, both forward progress and crisis problems
are good news. A project that is in the
midst of a long analysis or that is waiting for deliveries from suppliers or even
worse, waiting on an approval from someone else before it can continue, is bad
news. A great way to communicate and
interact with them is through a schedule chart that has at least one or two
events or milestones every week. Then it
is easy to show progress and action. They don’t consider unexpected events or
deviations from plan to be bad news, but rather they are “opportunities.” In fact, to them, a bad news message is when
they didn’t find out about a problem as soon as it occurred.<o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<h2>
Final Thoughts</h2>
<div class="MsoNormal">
<o:p></o:p></div>
<br />
<div class="MsoNormal">
I appreciate these stakeholders when running innovation,
organizational change or crisis projects.
They are ready and willing to make decisions and keep things moving
forward whenever the inevitable changes or roadblocks are identified. However, they can be disruptive at
times. I was running a project a few
years ago and one of the stakeholders was of this type. He would often show up at project meetings
and start giving directions to the project team, totally disrupting the plan
and current activities. In order to
manage our project interactions, I eventually had to tell him he was not
allowed to attend team meetings (an interesting discussion given that he was my
boss’s boss). What we agreed to do was
for me to meet with him several times a week to provide status and let him know
how he can help us move the project along.<o:p></o:p></div>
Ray Sheenhttp://www.blogger.com/profile/08035263259880392470noreply@blogger.com0tag:blogger.com,1999:blog-6088554710615410597.post-26819502583646769912016-05-16T13:38:00.000-04:002016-05-16T13:38:05.727-04:00The Value in Non-Value Added Activities<div class="MsoNormal">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjAJ0-7zEDcyEV30wG9qxBUhmlur_BPwchaGEXf1KLR6uSJ-FymBIlvM-PTRA-tZIbZRuTi5BB2RDLQTgb5G8ggfoChO-M9SAu_QOhHod8FlqKC20Au_wBXP60pZaBx0Zkp5db-ksnBrOQ/s1600/The+Value+in+Non-Value+Added+Activities.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjAJ0-7zEDcyEV30wG9qxBUhmlur_BPwchaGEXf1KLR6uSJ-FymBIlvM-PTRA-tZIbZRuTi5BB2RDLQTgb5G8ggfoChO-M9SAu_QOhHod8FlqKC20Au_wBXP60pZaBx0Zkp5db-ksnBrOQ/s320/The+Value+in+Non-Value+Added+Activities.png" width="320" /></a></div>
<span lang="EN-GB">With the wide-spread acceptance of Lean
Manufacturing and Lean Enterprise principles, the term “non-value added
activities” has come into the business lexicon.
These are the activities that an organization performs that do not
directly contribute to the generation of customer value. Within the context of manufacturing, these
activities are categorized as one of these types of waste.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
</div>
<ul>
<li><span lang="EN-GB" style="text-indent: -0.25in;">Over-production, ahead of
demand – wasted effort.</span></li>
<li><span lang="EN-GB" style="text-indent: -0.25in;">Waiting for the next process
step – wasted time.</span></li>
<li><span lang="EN-GB" style="text-indent: -0.25in;">Unnecessary transport of
product or goods – wasted effort.</span></li>
<li><span lang="EN-GB" style="text-indent: -0.25in;">Over-processing of product due
to poor process design – wasted effort.</span></li>
<li><span lang="EN-GB" style="text-indent: -0.25in;">Inventories greater than
necessary – wasted cost.</span></li>
<li><span lang="EN-GB" style="text-indent: -0.25in;">Unnecessary movement of
employees (looking for tools, paperwork, help, etc.) – wasted effort.</span></li>
<li><span lang="EN-GB" style="text-indent: -0.25in;">Producing defective parts –
wasted time, cost, and effort.</span></li>
</ul>
<!--[if !supportLists]--><br />
<div class="MsoNormal">
<span lang="EN-GB">The Lean Value Stream Map categorized all
of the activities in a business process into either value-added steps or
non-value-added steps. Even the
value-added steps are further analysed and the time spent conducting that step
is divided into value-added time and non-value-added time.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">Implementing Lean has led to improvements
in productivity and cycle time. This has
often transformed an operation; improving both customer satisfaction and
profitability. But sometimes,
implementing Lean has not resulted in dramatic improvements for the business. <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">Of course there are the Lean implementation
failures, which seem to occur at least 50% of the time. These are often due to poor management commitment
and understanding, inadequate training, and the difficulty of culture
change. But I would like to discuss a
different type of failure. This is the
failure to see improved customer satisfaction and the increase in sales and
profitability after a “successful” Lean implementation.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">This condition occurs when the company misunderstands
the elements of value from a customer perspective. Yes, there is value in the efficacy of the
product. The customer wants it to work
to the expected level of fidelity and be reliable and durable enough to
continue working through the expected life.
The Lean manufacturing definition of value-added activities will cover these
elements of value. <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">But many customers also want other aspects
of value that are not directly tied to product performance. These include brand affinity, ease of doing
business, and a sense of personal engagement with the company. <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">Let me give you an example. Many companies have “Leaned” their customer
service and help desk functions. Now when
a customer calls the company with a question or complaint, they are routed into
an endless series of “push this number” and “select this number” until they
finally are placed on a lengthy hold, waiting to talk to a live body. Often that live body can’t answer any
questions, but can only read from a script. So while the company thinks it has “Leaned” customer
service by eliminating non-value-added effort, the customer feels abandoned,
belittled and unwanted. Activities the
company categorized as non-value-added because they did not support the
manufacture of product, were activities that were very important to the
customer. The result is a customer who
experiences a reduction in value, not an improvement in service.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">An internal, product-centric view of “value”
can lead a company to remove activities and functions that are important to
overall customer satisfaction and that build a strong relationship with the
customer. A Lean initiative needs to
start with a true understanding of what the customer values. This should not be determined by the design
engineers, manufacturing managers, or even the Lean consultants. This needs to be determined through voice of
the customer analysis. <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">In many industries today, the new
competitive advantage is creating and establishing a personal relationship
between the company and the customer. “Leaning”
these customer interaction processes can destroy competitive advantage. Strong positive relationships take time and numerous
positive interactions. Lean processes
that minimize and eliminate interactions are eliminating value-added activities
– even though the activities may have nothing to do with the product.<o:p></o:p></span><br />
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">So let me propose, as an adjunct to the list
of activities used in Lean analysis to define a waste, a list of activities
that define value-add.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpFirst" style="mso-list: l1 level1 lfo2; text-indent: -.25in;">
</div>
<ul>
<li><span lang="EN-GB" style="text-indent: -0.25in;">Activities that directly answer
specific customer questions.</span></li>
<li><span lang="EN-GB" style="text-indent: -0.25in;">Activities that provide special
privileges and offers to existing customers.</span></li>
<li><span lang="EN-GB" style="text-indent: -0.25in;">Activities that measure
customer engagement and satisfaction with the company and its products and
services.</span></li>
<li><span lang="EN-GB" style="text-indent: -0.25in;">Activities in the company’s
operations that create or add to the functionality of products or services.</span></li>
<li><span lang="EN-GB" style="text-indent: -0.25in;">Activities that build customer
confidence in the company’s brands, products and services.</span></li>
</ul>
<br />
<div class="MsoNormal">
<span lang="EN-GB">I’m not suggesting that a company should abandon
Lean or ignore the attributes of waste.
I am suggesting that a company should embrace the attributes of value. Prepare a value stream map for the attributes
of value and ensure that these value-adding processes are operating smoothly.<o:p></o:p></span></div>
Ray Sheenhttp://www.blogger.com/profile/08035263259880392470noreply@blogger.com2tag:blogger.com,1999:blog-6088554710615410597.post-52287980926412413332016-04-18T21:24:00.000-04:002016-04-18T21:24:00.636-04:00Pivoting Project Management Reviews<div class="MsoNormal">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi3KxBfN4h3rMdSYmij1fWI6fwE1b3qfy4qlh7D10DK4EWqaeRVavfgb1DEfu8cR4lzGtH6I8mK4J9M8urdZIgdx06dN9Yzd2nOON7sljOGIqtWOdadJMRtEVJvfPtTck2VvKv295I50h4/s1600/Pivoting+Project+Management+Reviews.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi3KxBfN4h3rMdSYmij1fWI6fwE1b3qfy4qlh7D10DK4EWqaeRVavfgb1DEfu8cR4lzGtH6I8mK4J9M8urdZIgdx06dN9Yzd2nOON7sljOGIqtWOdadJMRtEVJvfPtTck2VvKv295I50h4/s320/Pivoting+Project+Management+Reviews.png" width="320" /></a></div>
<span lang="EN-GB">Entrepreneurs are using the terms “pivot”
and “persevere” to identify strategies for decision-making. When confronted with a situation that is not
leading to the desired results, they must decide whether to gut it out and
persevere on the current path, or pivot to a new direction and new
approach. <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB">This decisions process can and should apply
to many of our business and project management practices. If your practices are not leading to the desired
results, make a conscious decision to pivot or persevere. <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">Let’s talk about the project management
practice of project reviews by senior management. Are the reviews leading to better project
execution and performance? Are the reviews
leading to better project selection and planning? Are the reviews leading to better project
portfolio performance in terms of business impact? If the answer is, “No,” and you have been
doing the same types of reviews for years, it is probably time to pivot.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><b><br /></b></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><b>Project Management Reviews</b></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">Let me describe the typical project
management review I see when I first visit a new client. Senior management is reviewing project status on a
regular basis – normally tied to the calendar.
For example, one client had a weekly review a summary of all open
projects and a “deep dive” on two or three projects based upon which projects
were perceived to be in the most trouble.
At the deep dive portion of the reviews, the emphasis was upon the status of the problems or issues that had occurred and what the team was doing
about those issues. The project team received
lots of “help” to fix the current problem, but there was seldom any discussion
about extrapolating from the current issue to foresee future issues or to share
lessons learned from this situation with other project teams so that they could
avoid the same problems. <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">My recommendation for a project management review pivot is to
change from this backwards-looking, reactive project management reviews to a
forward-looking preventive project review.
What do I mean? The project
review should be focused upon all the open and remaining risk threats on the
project (not just the current crisis) and the resources and management actions
needed to reduce or eliminate those threats.
And when you get that working well, add a discussion about the possible
risk opportunities for the remainder of the project and the resources and management
actions that will enable those opportunities to be realized.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><b><br /></b></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><b>Superman</b></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">The current approach leads to a “superman”
mentality among project leaders. They
bounce from crisis to crisis, using their superpowers to overcome each
one. They don’t prevent problems, they
just solve them. The leaders get great
credit and often rewards for their effort.
In fact they often take on “rock star” status within the
organization. While they may be good
fire-fighters, I would not call them good project managers.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">Let me relate a story from a client of
mine. His high-tech firm had two major
development projects underway. Both were developing new product lines using emerging technology.
Both projects were large be this company’s standards – they were planned
for three to four years in duration, with a budget of over $20 million, and a
large team located in multiple sites.
Both projects were managed by senior project leaders with strong
technical, business and inter-personal skills. <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">One project leader, we will call him Jack,
was a fire-fighter. His team faced many
problems and challenges and he overcame all of them. Granted it took late nights, weekends, and
some creative solutions but with his charismatic personality he rallied the team and they come through. The project was a major market
success. However, the project finished more than a year late and several million dollars overrun.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">The other project leader, we will call him
Dave, was a risk manager. Dave
emphasized proactive risk management. He
had a well-developed plan with risk triggers and options that were used by the
team. His project did have several minor
fires that had to be resolved, but nothing like the problems that occurred on
Jack’s project. Dave also had a major market success.
But Dave’s project was only two months late and came in on budget.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">So now it is six months later and the
business is going through a major restructuring due to some problems in a
different division. The business is
downsizing and it only needs one senior project leader. So Dave was laid off. I asked the senior management why they laid off
Dave instead of Jack. Their response
surprised me. In their opinion, Jack was
a superhero who could fix any problem, but they didn’t know if Dave could
handle the stress of a major project in crisis.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">I pulled together a summary of the two
projects, including the major challenges that each had to overcome. I identified the proactive risk approaches
that Dave had used and the absence of those in Jack’s project. Several of the senior managers told me they
had never stopped to consider the risk management approach in the project
reviews. They never asked about risk
avoidance and mitigation. They were just focused on the current crisis and what
was being done to fix it.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><b>The Pivot</b></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">So if you want to transform your project
performance, I encourage you to consider pivoting your project management
review approach. When reviewing a
project, I recommend the following topics.<o:p></o:p></span></div>
<div class="MsoNormal">
</div>
<ul>
<li>Quick review of the Project Charter. Remind everyone of the project’s purpose and
goals.</li>
<li>Current status with respect to the project
plan. Make sure the team is reporting
against the plan and don’t just give a list of the things that they have been
doing. If they aren’t working the plan
find out why. </li>
<li>Risk issues with their response or mitigation
strategies that should be encountered or resolved within the near future. Ensure the team has an adequate strategy and
resources to resolve the risks.</li>
<li>New risk issues that have been discovered
since the last review. What changed to
create these risk issues and what other impacts could those changes have on the
project.</li>
<li>Critical milestones and decisions that will
occur on the project in the near future. These are potential risk points and senior management
may want or need to engage with those activities.</li>
</ul>
<br />
<div class="MsoNormal">
<span lang="EN-GB">Changing your project management reviews
into risk reviews will pivot your project management approach from reactive to proactive. I can assure you the project performance and
business impact will improve. But some
of your superhero project leaders may resist the change. They are fire-fighters and want a fire to
fight. Risk based project reviews will suppress fires and expose these leaders as the arsonists whose poor project management practices are
what started the fires. <o:p></o:p></span></div>
Ray Sheenhttp://www.blogger.com/profile/08035263259880392470noreply@blogger.com5tag:blogger.com,1999:blog-6088554710615410597.post-52175231457408094122016-04-11T20:25:00.000-04:002016-04-11T20:25:19.950-04:00Practical Idealism<div class="MsoNormal">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjIP9Q92ydsOlO2XNIZyMWX_FTx6JxRI_CMcc-bcZ9zAK8a263_C9-v8pkZKQU6AcWa03tsqvdaoBPiT_w6Bk4Fsgd0RneqjRWMpBzfsDZVROIzddUlr7pm7QyATBlk7MHmOueJDkC1MI8/s1600/Practical+Idealism.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjIP9Q92ydsOlO2XNIZyMWX_FTx6JxRI_CMcc-bcZ9zAK8a263_C9-v8pkZKQU6AcWa03tsqvdaoBPiT_w6Bk4Fsgd0RneqjRWMpBzfsDZVROIzddUlr7pm7QyATBlk7MHmOueJDkC1MI8/s320/Practical+Idealism.png" width="320" /></a></div>
<span lang="EN-GB">Those two words are normally considered
opposites. I’ve heard for years that “idealists”
aren’t “practical.” “Practical” is
grounded in reality. “Idealism” is
wishful thinking that can’t be achieved.
But by the same token, “idealists” challenge us to improve and go beyond
our current performance, whereas “practical” approaches are stuck in the
current paradigm. If we could put them together, practical
idealism could lead to an innovative approach that is transformational. <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">This isn’t just hypothetical. There is a real-life example right now in the
sports world of what happens when practical idealism is implemented. Have you heard of the <a href="http://www.uconnhuskies.com/sports/w-baskbl/2016champs/index.html" target="_blank">University of Connecticut (UCONN) women’s basketball team?</a> Here are a few facts about them:<o:p></o:p></span></div>
<div class="MsoNormal">
</div>
<ul>
<li>They just won their fourth straight
national title – no women’s basketball team has ever done that.</li>
<li>They have won 75 straight games – all by
double figures.</li>
<li>Their average margin of victory this season
(including the NCAA tournament) was 39 points.</li>
<li>The program has a 100% graduation rate and
over 80% of the players have a GPA of 3.0 or higher.</li>
<li>Their coach has won more national titles
(11) than any other coach in college basketball – men or women.</li>
</ul>
<br />
<div class="MsoNormal">
<span lang="EN-GB">Now this type of dominance does not mean
that the sport of women’s college basketball is in decline or immature. The caliber of the competition and the
quality of the players has been improving for years. There are tremendous women athletes in this sport. And
between all of the other teams that play women’s college basketball, there is
fierce competition. In my opinion,
women’s college basketball exemplifies better team play than men’s college
basketball – which is dominated by individual play. It is a tough, competitive, athletic
sport. <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgZQGJmEaXCJBFjygWrXk78PNa8Oyb9JtHQEhTEIFH6-DYSMSbClrnysyth7kC0o9MqQ7EGnBHW6OPhGynzEl04s_c0Wk_S8juFdQbjfMe10GoaEwzIb8C-ht4avpXP_k-4-YIsM5bLeEA/s1600/Uconn.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="175" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgZQGJmEaXCJBFjygWrXk78PNa8Oyb9JtHQEhTEIFH6-DYSMSbClrnysyth7kC0o9MqQ7EGnBHW6OPhGynzEl04s_c0Wk_S8juFdQbjfMe10GoaEwzIb8C-ht4avpXP_k-4-YIsM5bLeEA/s200/Uconn.png" width="200" /></a></div>
<span lang="EN-GB">Yet UCONN performs at a level that is far
above everyone else. Why is that?
Practical idealism. <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span>
<span lang="EN-GB">UCONN’s coach, Geno Auriemma, sets
idealistic goals for the team and each individual. Their goal as a team is not to be
competitive, but rather to be dominant.
And their measure of performance is not only against the other team, it
is against their previous performance.
The team is always striving to get even better. But Auriemma also focuses on personal goals
for each of his players. That is why
they have a 100% graduation rate and such high GPAs. Any coach who lists these yearly goals for his team is an idealist:<o:p></o:p></span></div>
<div class="MsoNormal">
</div>
<ol>
<li>Go undefeated.</li>
<li>Win the national championship.</li>
<li>Beat opponents by an average of 40
points.</li>
<li>Team members have a 3.0 or higher GPA. </li>
</ol>
<br />
<div class="MsoNormal">
<span lang="EN-GB">What makes UCONN different is that they
have established a practical approach for achieving these idealistic
goals. The UCONN women’s basketball team
works as hard as any college team in the nation. Their practices are tough and
exhausting. They work on basic skills
and on teamwork. They are constantly
seeking to improve. Every turnover,
every missed shot, every lost rebound from the previous game is scrutinized to
understand what happened and prevent that from occurring again. While the
Auriemma shows genuine care and concern for each player, he also challenges and
pushes them to be their best. He refuses
to accept complacency or mediocrity from any player in any aspect of her game.</span></div>
<div class="MsoNormal">
<span lang="EN-GB"> <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB">Granted, UCONN is able to recruit from
among the best high school women basketball players. But there is lots of talent to go around in women’s
college basketball today. UCONN is only able to recruit 12 players for
scholarships. They have talented team
members, but so do many other programs. And UCONN does not limit their schedule to
playing “powder puff” teams. In the
final rankings of women’s college basketball for the 2015-2016 season, UCONN
was number one and they played six of the remaining nine (beating all of them
by double digits). <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">Early this year, Auriemma quoted Julius Caesar
as the team was preparing for a game, “Vini, Vidi, Vici” – we came, we saw, we
conquered. The attributes of dominance
that were the hallmark of the Roman Legions 2,000 years ago were used to
inspire his team this year. “We came.” They will go anywhere and play anybody. In fact, they try to schedule the best teams
in the nation. “We saw.” They study their opponents and prepare for
them. Some of the teams are bigger, some
are great shooters, some play tenacious defense. Doesn’t matter. UCONN negates their strength, often by besting
them at their own game. “We conquered.” UCONN teams hustle. They are always working hard. They dominate many aspect of the game. And even when the “second string” enters the
game – often early in the second half – they continue to dominate. <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">So what are the lessons of “practical
idealism” we can learn from UCONN? <o:p></o:p></span></div>
<div class="MsoNormal">
</div>
<ul>
<li>First, it is OK to be idealistic. Set big goals – seemingly impossible goals. </li>
<li>Second, recruit talented people. Find the best people available and
embed them into your team.</li>
<li>Third, work hard at the basics. There should be excellence in everything you
do. Don’t accept mediocrity on any
level.</li>
<li>Fourth, study your competition to
understand their strengths and weaknesses. Then work to be as good or better than they are at their strengths and
exploit their weaknesses.</li>
<li>Fifth, continuously improve. Set the standard of performance and then
exceed your own standard.</li>
<li>Sixth, coach and encourage your people fulfill
their personal goals and to be successful in all walks of life.</li>
</ul>
The UCONN story is inspiring. Oh, and it is also excellent basketball.Ray Sheenhttp://www.blogger.com/profile/08035263259880392470noreply@blogger.com2tag:blogger.com,1999:blog-6088554710615410597.post-21219759802966466842016-03-21T13:14:00.002-04:002021-08-12T18:18:32.349-04:0021st Century Project Management<div class="MsoNormal">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgH982T3JdhKMNZWbOpr82yaGSjelrJ8ICbUDCYW_P_LD0UaNSElKpyswurxlwt9GSSa9pjAYdXBw7I9HJe_BtumK_oiIfKA9-nV8jwinu31Hv3RPF5FolpPsIUt-TLy55d1xgem6nQXw8/s1600/21st+Century+PM.png" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgH982T3JdhKMNZWbOpr82yaGSjelrJ8ICbUDCYW_P_LD0UaNSElKpyswurxlwt9GSSa9pjAYdXBw7I9HJe_BtumK_oiIfKA9-nV8jwinu31Hv3RPF5FolpPsIUt-TLy55d1xgem6nQXw8/s320/21st+Century+PM.png" width="320" /></a></div>
<span lang="EN-GB">21<sup>st</sup> century project management
is fundamentally different from 20<sup>th</sup> century project
management. Yes, there are still start
and end dates, activities and deliverables, and budgets and project teams. But the management of those project attributes
is different. And if you don’t
understand those differences, your projects will struggle in the 21<sup>st</sup>
century business environment. <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><b>Project Management Has Been Around for Ages</b><o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">Now to be clear, project management has
been around for thousands of years. The
pyramids in Egypt, the Roman aqueducts, and the Great Wall of China all had
project managers who planned and organized the work. They may not have had the title “Project
Manager,” but someone was in charge. As
far as we know, none of them held the PMP credential. Since Henry Gantt did not introduce the Gantt
Chart until the beginning of the 20<sup>th</sup> century, that was not
available to them. And we are certain
that none of them used either Microsoft Project or Primavera. Nevertheless, the projects were
successful. <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">So if projects were successful thousands of
years ago despite not having project managers with a PMP, Gantt Charts, or
project management software, we can conclude that project management is more
than just tools and certification.
There are components of the business and project environment that must also
be considered. So if the business
environment of the 21<sup>st</sup> century is markedly different from the 20<sup>th</sup>
century, it follows that project management must also adapt to the new reality.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">Let’s start with a definition of project
management. I will cite the one used by
the Project Management Institute, “Project management is the application of knowledge,
skills, tools, and techniques to project activities to meet the project
requirements.” This definition
illustrates the point that was just made.
Project management relies on knowledge, skills, tools and techniques. If these change in the business environment,
the project management practices should also change. <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><b>Early 20<sup>th</sup> Century</b><o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">Let’s consider some of the ways that the 21<sup>st</sup>
century business environment is different from the 20<sup>th</sup> century business
environment. At the beginning of the 20<sup>th</sup>
century, Fredrick Winslow Taylor and scientific management was all the
rage. This meant that activities were
planned in detail and standardized. Everything
was planned and tracked. Performance
targets were set and measurements were seen as the key to good management.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">This was a perfect environment for the
introduction of the Gantt Chart and Work Breakdown Structure (WBS) to plan and
control project activities.
Organizations were hierarchical and functions operated in separate “silos”
that were managed for functional excellence.
Techniques like Critical Path were introduced to analyze and optimize
project schedules. Other techniques
like Earned Value Management came along and provided strict accountability for
cost and schedule on every aspect of the project. Project management was now part of scientific
management and all managers were expected to be able to use these techniques<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span lang="EN-GB"><b>Late 20<sup>th</sup> Century</b><o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">In the latter part of the 20<sup>th</sup>
century business was transformed by computers and revolutionary changes in
communication and transportation technology.
These advances in science led to changes in how business systems
operated. Computers dramatically improved the
performance of almost all products, processes and systems. Communication and transportation changes resulted
in almost all industries becoming global and operating 24/7. With respect to projects, the speed of change
and the decentralization of project teams compounded the effects of project
complexity and urgency. To address these
issues, companies turned to project management certification and new project
management tools and techniques that managed complexity. <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">At the end of the 20<sup>th</sup> century,
project management had reached a new level of professionalism. It was now a recognized management discipline
and career field. Project managers had to
manage complexity in a fast changing environment. They were often required to operate both
strategically and tactically. Sophisticated
project management software applications were used on large and small projects. <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">In addition, an entire industry had sprung
up around project management. Many project
management consultancies, training programs, books, journals, magazines, and
certification programs abounded.
Researchers were analyzing projects to identify best practices and
project management gurus were out on speaking tours. Not to mention the numerous project
management software applications which were on the market. Project management was no longer an
additional duty of operational managers; it was now a stand-alone management discipline.
<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><b>21<sup>st</sup> Century</b><o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">We are now well into the 21<sup>st</sup>
century and we can see further business transformation. Big data and the internet of things is
transforming business again. In the 20<sup>th</sup>
century it was impossible for a manager of a global business operation, or even
a global project, to have all information about all activities instantly
available. Therefore, management
disciplines focused on how to discern business performance and issues from
summary information or how to infer it from a narrow slice of actual real-time
data. But that is all changing.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">Companies can now get real-time data about
all business processes, including what is happening at customers or suppliers,
and make that information immediately available to managers. Computers can be constantly sifting the data
looking for special conditions or patterns that the managers specify. And decision and actions can be implemented
faster than most people can keep up with.
The role of the manager is changing.
The manager must now spend their time engaging with customers,
suppliers, and employees to ensure alignment of activities and interests. The arts of negotiation, motivation, conflict
resolution and empowerment are the hallmarks of good management, not directing,
controlling, and analyzing.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">This is especially true for project
managers. The project management tools
and systems can now do all of the analytical side of project management. However, the diverse and decentralized project
teams need a project manager who is focused on the team alignment and
integration. The project manager must
build a relationship with team members to ensure they are appropriately
engaged. <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">For those of us who started project
management using the methods of the early 20<sup>th</sup> century (which in
many cases were still the standard until the 1980’s) and have gone through the
transition to the methods of the late 20<sup>th</sup> century, the thought of another
transformation is daunting. But that is
the reality of our today’s business environment. Will we still have certifications and project
management software applications – of course.
But those will just be tools in the tool box, not a measure of project
management acumen. Project managers will
be totally connected with technology –
but the technology will not be what is managed, rather the technology will be
the enabler for the project manager to work with stakeholders and team
members. The more technically advanced
we become, the more important the inter-personal relationships become.<o:p></o:p></span></div>
<br />
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">So the new 21<sup>st</sup> century project
manager is first and foremost a “people person.” They are great communicators and
motivators. Yes, they are technically
savvy with respect to the use of project management software and communication
technology. But these are just tools,
the discipline of project management is now resource alignment and empowered
engagement across functional and organizational lines. <o:p></o:p></span></div>
Ray Sheenhttp://www.blogger.com/profile/08035263259880392470noreply@blogger.com1tag:blogger.com,1999:blog-6088554710615410597.post-36190702022920761082016-03-07T11:51:00.000-05:002016-03-07T11:51:00.963-05:00Proactive & Reactive Risk Management<div class="MsoNormal">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi35b642UaWWgH5E5x_nqHjtNhyIrfprfl6X01K_gYxE7GwOeTppdYK6Tihnt0j21txQnpyu80v8TCDojAv5QjhJao4jTID41u5lLzbO5OLgBtM6uUEulKaG9fSobnYIOdaLRwYYGjH0XU/s1600/Proactive+%2526+Reactive+Risk+Management.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi35b642UaWWgH5E5x_nqHjtNhyIrfprfl6X01K_gYxE7GwOeTppdYK6Tihnt0j21txQnpyu80v8TCDojAv5QjhJao4jTID41u5lLzbO5OLgBtM6uUEulKaG9fSobnYIOdaLRwYYGjH0XU/s320/Proactive+%2526+Reactive+Risk+Management.png" width="320" /></a></div>
I was recently working with a company who didn’t
understand the difference between proactive and reactive risk management on
product development projects. Oh sure,
they could explain the concept in a meeting, but their business practices told
a different story. </div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">First, let’s acknowledge that we need
both. Proactive risk management can
avoid and minimize risks. But sometimes
the unexpected happens and we need to respond to it when it does. A strong risk management approach will
periodically assess the project to identify risks and proactively take actions
to avoid and mitigate negative risks while enhancing and leveraging positive
risks. And at the same time, the risk
management approach will be constantly assessing progress and variances – both technical
and project progress – to determine when unexpected conditions have occurred. An analysis of those conditions will lead to
appropriate corrective actions or responses.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><b>Risk Events</b><o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">Let’s look at the attributes of proactive
and reactive risk management, at least as they apply to technology or product
development project. Risk is defined by
the Project Management Institute as, “An uncertain event or condition that, if
it occurs, has a positive or negative effect on one or more project objectives.” There are three aspects I want to
highlight. First it is an uncertain
event. Second it can be both positive
and negative. And third, it effects on
or more project objectives. <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">Proactive risk management focuses on
identifying the uncertain events and estimating the effects of the
objectives. Reactive risk management
starts with the unexpected effects and attempts to determine the events that
caused those effects. In both cases,
actions are taken to protect the project goals.
However, in proactive risk management, an action is taken to avoid or
prevent a negative effect or to enable or enhance a positive effect. In contrast, with reactive risk management an
action is taken to recover or compensate for the already existing unexpected negative
effect on the goal or an action is taken to lock in the benefits from an
already existing unexpected positive effect on the goal.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">Effective risk management needs to include
both proactive and reactive elements. It is obvious that if you don’t do
either, disaster is likely to strike your project. But even if you do one, but not the other,
disaster is still likely to strike. Let
me illustrate using the experiences of the company I mentioned earlier. <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><b>Proactive without Reactive Risk Management</b><o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">This company did proactive risk management
for project risk events. They conducted
a risk analysis shortly after the project started where they considered a
variety of project risk events that could affect the project. These included schedule issues, resource
issues, and some technical issues. The
risk analysis was captured in a risk register, proactive risk responses were
identified and most were implemented.
And that was the last time that project risk was discussed on the
project until the accumulating disasters caused the project to be cancelled two
years later.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">Proactive risk management was done and the
actions taken were good ones. But the company
and project team did not regularly assess project performance with respect to
cost and schedule goals. They just kept
changing the schedule and throwing resources at problems. There
were ample signs that other unexpected events had occurred and that the project
plan and project approach was not working.
However, the project team did not stop to assess what was going on and analyse
the project to determine the root cause or causes of the risk events. Therefore they never took appropriate
corrective actions. Finally two years
into the project, they were approximately 18 months behind to the original
schedule and the spending was nearly double the original budget. <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><b>Reactive without Proactive Risk Management</b><o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">While the company did proactive risk
management with respect to project goals, they did not do any proactive risk
management with respect to technical goals.
This was a development project using emerging technology and it was
pushing that technology to an order of magnitude improvement in several of the
key technical performance characteristics.
In addition, the product was evolving from a complex mechanical product
to a system involving complex mechanical elements, electronics, software, and systems
integration with other customer systems.
The project team did not do any proactive technical risk
assessment. In fact technical risk was
never discussed in their project reviews – just technical problems. <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">The technical problems were addressed using
a reasonable and effective reactive risk management approach. As a problem was identified, a root cause
analysis was performed and a solution was created to solve that problem. But since no proactive risk management was
done, the solutions often then created even more technical problems. And when a technical problem was finally
solved, it would just unmask the next technical problem. The project went through a continuous set of
technical problems and issues, with the result that despite dozens of systems
being constructed, none of them was ever fully compliant with the specifications. Finally, after two years of work, the design
team reported to management that the current design approach was not robust
enough to ever meet the customer’s use requirements. If the
company wanted a product that would be satisfactory to the customer, they would
need to restart the development project with an entirely new concept.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><b>Combining Proactive and Reactive
Risk Management</b><o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">If the company had effectively combined
both proactive and reactive risk management approaches around either the
project or technical goals, the situation would have been recognized much sooner
and the project could have been salvaged.
The proactive project risk management made some good project
enhancements. If it had continued to
monitor for risk, it would have identified that something wasn’t right with the
technical approach and corrective actions could have been taken. The reactive technical risk management
continually fixed one problem after another, but a proactive analysis would
have identified that the fundamental concept was too risky and a different
approach would have been used.<o:p></o:p></span></div>
<br />
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">The lesson for project managers is to do
proactive risk management early in the project.
And then monitor performance, identify variances and do effective root
cause analysis as the project progresses.
These complementary approaches should lead to project success. <o:p></o:p></span></div>
Ray Sheenhttp://www.blogger.com/profile/08035263259880392470noreply@blogger.com3tag:blogger.com,1999:blog-6088554710615410597.post-22791183716533477922016-02-08T16:13:00.003-05:002016-02-08T16:13:46.072-05:00The Challenge of B2B Customer Centricity<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgVsyHcntrYYWWwAnxHDoI9vtqN_6tKa0Sa4DDckKwW4Hr72CCeBH9O7tQ0x1Wpxfx9RX7myjOM3E-ali0CcioS40GUGj1-4ETFvZiVdqjNZKHF_KcFodKxIEnsNk5Md6k0KgxRWBlLhxA/s1600/galup+b2b.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="297" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgVsyHcntrYYWWwAnxHDoI9vtqN_6tKa0Sa4DDckKwW4Hr72CCeBH9O7tQ0x1Wpxfx9RX7myjOM3E-ali0CcioS40GUGj1-4ETFvZiVdqjNZKHF_KcFodKxIEnsNk5Md6k0KgxRWBlLhxA/s320/galup+b2b.jpg" width="320" /></a></div>
<div class="MsoNormal">
<span lang="EN-GB">There has been a lot of focus recently on
customer value. Term like customer
experience, relationship management, and customer-centricity have become common
in the business press. But almost all of
the focus has been on the B2C business environment. Now we have some data that is based upon the
B2B environment – and it isn’t pretty. <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">Gallup has just published an extensive report
titled, “<a href="http://www.gallup.com/services/187877/b2b-report-2016.aspx?utm_source=reports&utm_medium=emailblast&utm_campaign=b2blaunch2016" target="_blank">Guide to Customer Centricity: Analytics and Advice for B2B Leaders</a>.” According to Gallup, 71% of B2B customers
would change to a different seller in a heartbeat. The customer does not feel valued. So if a better deal comes along, they will jump
at it. For most products and services
there is little differentiation between the major competitors in the B2B
industry segments. As Gallup says, “There
is often little in the company’s product or service itself that helps it
support long-term business growth.”<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">New products or product offerings are not
sustainable because competition will soon match with similar features and
functions. Pricing is not sustainable
because someone can always go lower to “buy share.” Service delivery is not sustainable because
that again is something that is easily matched by the competition. So what is left?<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">Sustainable long-term growth comes from building
and growing customer relationships. But
most B2B companies have not invested in the relationship. As Gallup noted, “They invest in Lean, Six
Sigma and other methodologies that are crucial for keeping costs down, but they
don’t have a plan for maximizing their customer relationships.” Forming lasting relationships takes time and
effort. And that time and effort is not episodic;
it is continual. (Just thing about the
time and effort needed to form and maintain a good marriage relationship.) It is not a quick hit business initiative or
a new app for your phone. <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">That is the difficulty. To truly create a customer-centric
organization and build lasting customer relationships, a transformation is
required within a company. It is as much
about culture as it is about relationship management data and account teams. Speaking of account teams, the great
relationship that is built between the customer and the salesperson will
quickly be destroyed if the delivery is consistently late, or fi the invoice is
full of errors.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">Let’s look a little closer at the relationship. One of the Gallup findings is that strong
customer relationships are built upon collaboration. But many companies with B2B offerings are
reluctant to collaborate. Their fear is
that if they share too much of their knowledge and insights with their
customers, the customers will no longer need them. The customer will be able to create and
operate the products and services that the seller is trying to sell. But the only reason that the customer would
even consider such a thing is if they have become frustrated with the quality,
price and service that they are receiving.
When the seller focuses on creating customer success and customer value,
the customer is actually likely to send even more business their way.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">The Gallup report also talks about the need
for positive proactive customer engagement and that a roadmap and an action
plan are needed to make that engagement happen.
It isn’t just osmosis that creates engagement. Management must purpose, plan and execute if
they want to develop strong customer relationships at all points of customer-seller
interaction. The report continues on to
highlight the importance of a seller’s supplier network and the use of data analytics. All of these become tools to be used by an
empowered cross-functional customer account team.<o:p></o:p></span></div>
<br />
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">The report is a long one, 88 pages. And there are no easy answers. If you are looking for “seven steps to attain
customer centricity” you are out of luck.
As Gallup notes, this is hard work and often requires an organizational
transformation. However, if you don’t
make the changes, but your competitors do, you won’t be in the game. Remember, 71% of your customers are ready to
switch as soon as a seller shows them that they really care about customer
value and customer success.<o:p></o:p></span></div>
Ray Sheenhttp://www.blogger.com/profile/08035263259880392470noreply@blogger.com1tag:blogger.com,1999:blog-6088554710615410597.post-79990363940937687812016-02-01T12:02:00.000-05:002016-02-01T12:02:36.748-05:00Project Management Made Easy<div class="MsoNormal">
<div class="separator" style="clear: both; text-align: center;">
</div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj6TzRwYKPkxAuK6hCqSGJgg_EP1O3cjhyphenhyphenGKnebnn1YN4wPBAAMPQi6Z4mVVW552UbZqFHHDXsLmRvLbDlOGlW-qFcuhv-FZzmKwnj8lI7yU0ojy1SbpZXPveb5wgN8eVU7uBOi6ODSIKs/s1600/Project+Management+Made+Easy.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj6TzRwYKPkxAuK6hCqSGJgg_EP1O3cjhyphenhyphenGKnebnn1YN4wPBAAMPQi6Z4mVVW552UbZqFHHDXsLmRvLbDlOGlW-qFcuhv-FZzmKwnj8lI7yU0ojy1SbpZXPveb5wgN8eVU7uBOi6ODSIKs/s320/Project+Management+Made+Easy.png" width="307" /></a></div>
<span lang="EN-GB">People who are expert in an area love to
discuss the intricacies and novel aspects of that area. Project managers are no different. But what that means is that many project
management articles, books and posts are irrelevant to 99% of the people who
are involved in projects. Some people
(like me) may enjoy debating when to use the SPI in calculating a forecast with
Earned Value Management. But sadly, I
have discovered that is not a universal topic of conversation. <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">Project management software has not made
this any easier. Many of the project
management software applications tout how intuitive and simple they are. But the reality is that they have automated
some of the more difficult and obscure aspects of project management. In order to really use the software, you
already need to be adept at project management.
So for most people, the software either becomes a glorified chart-making
tool or it is used as barriers to keep the “unwashed masses” out of the intricate
mysteries of professional project management.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">But in a nutshell, project management is
just organizing who does what and when they do it so as to achieve a goal or
objective. When the work is very
difficult, or there are many people, or there are some tight constraints around
the objective; then the project management disciplines can help to identify and
overcome unique issues. But it still
comes down to “who,” “what,” and “when” to </span>achieve the goal.</div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">That is why I find that most of the time
when I am working with an organization that is trying to embrace project
management; I need to focus on how to keep things simple. What I have found is that there are two very
simple approaches to organizing the “who,” “what” and “when” that everyone can
understand and work with.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><b>Post-It Note Project Management</b><o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">The first is to use “Post-it” notes and a
storyboard. In this case, every activity
is listed on its own “Post-it” note. I
then add the name or names of who will do the activity and the start or end
date. </span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">The “Post-It” notes are organized
on the storyboard in whatever way makes the most sense to the team. I have organized them in columns where each
column represents a week or each column represents an individual on the
team. I have also organized them by
grouping the tasks for a deliverable around each other in more of a
mind-mapping approach. <o:p></o:p></span><br />
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhFaq4IDuGAXcDACdcNJXr-ucrDIDpvPmRipdYWS4mgrY4R-KNB54he74r-aMVJyxQ4X1GO5Omnsikt2bRdk4XMFtyoNwI340l-R31bWOSfMbVF1O8u4TOJSUl99jmQN4f78mOK2dV6qjc/s1600/post+it.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="129" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhFaq4IDuGAXcDACdcNJXr-ucrDIDpvPmRipdYWS4mgrY4R-KNB54he74r-aMVJyxQ4X1GO5Omnsikt2bRdk4XMFtyoNwI340l-R31bWOSfMbVF1O8u4TOJSUl99jmQN4f78mOK2dV6qjc/s320/post+it.jpg" width="320" /></a></div>
The great things about this approach are
that it is quick, easy to understand, visual, and easy to maintain the
status. The way I manage status is that whenever
a project activity is complete, I move the “Post-It” note to the lower right
hand corner of the storyboard. So it is
easy to track what work is left to be done.
If another required activity is discovered, just add the “Post-it”
note. Updates and changes are easy to
track. </div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">There are several limitations
with this approach. First, you need a
co-located team so that everyone can see and track the storyboard. Also, I have found that if there are too many
activities it is difficult to fit them all on the storyboard and track progress. My rule of thumb is that this approach is
limited to 100 activities or less.
Finally, if there are many linkages between activities throughout the project,
this approach does not capture that well and another tool or analysis is needed
to track those linkages. With that said,
most of the organizations that have small ad hoc teams for conducting part-time
projects can use this approach.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><b>Spreadsheet Project Management</b><o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">The next approach is to use a spreadsheet
for planning and tracking the project activities. Now I am not talking about using the advanced
math functions of the spreadsheet, rather I am using it as a poor man’s
database. The reason I like to use a
spreadsheet is because all most all mobile devices, laptops, tablets, and phones
have a spreadsheet application. If I put
the project plan and status in a simple spreadsheet, I can share it with a distributed
team and update it any time and from anywhere.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">I set up my spreadsheet so that each row is
a project task or activity and each column represents information about that
task or activity. So one column is the
task, another column is the task completion criteria – or “definition of done” –
for that task. I also have a column for
who is doing the work, the start date, end date, notes or comments, and current
status. Another thing I like to do with
the spreadsheet is change the</span>
color<span lang="EN-GB"> of the row based upon status. That way activities that are done are late or
in work can pop out when your check the spreadsheet.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
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<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiC4NEghqfcR3uwTMf-ftZH41ceP5EOG1CRTxe6LSSmM89FMkfEzWuuvjydisFN7ncnid98DNJJPfXwoRI3AErimgE6xSPCthur3cvHW5i5aKcFZqQkFV6UEXW1asL2dxrlesM1MOzZuY0/s1600/spreadsheet.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="78" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiC4NEghqfcR3uwTMf-ftZH41ceP5EOG1CRTxe6LSSmM89FMkfEzWuuvjydisFN7ncnid98DNJJPfXwoRI3AErimgE6xSPCthur3cvHW5i5aKcFZqQkFV6UEXW1asL2dxrlesM1MOzZuY0/s320/spreadsheet.jpg" width="320" /></a></div>
<span lang="EN-GB">There are several advantages of this
approach. It can be easily shared with team members that
are not co-located. You can easily add
hundreds of tasks (I have used it on projects with over 400 tasks and
activities). It is easy to sort the
activities by date, by status or by who is doing the work. And as I mentioned it is portable. </span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">There are several disadvantages. One is that you can only see a few rows at a
time on your screen. Another is one that
was mentioned with the Post-it notes; that is that it is difficult to track
linkages between the tasks and activities.
When you have the complex
linkages you should switch to a powerful project management software
application. And you probably need a
professional project manager then because of the complexity and risk.<o:p></o:p></span></div>
<br />
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">So keep it simple. Use Post-it notes or spreadsheets where
possible. If you want to know more
about using either of these approaches, check out my <a href="http://raymond-sheen.teachable.com/" target="_blank">online course</a> on the
topic. <o:p></o:p></span></div>
Ray Sheenhttp://www.blogger.com/profile/08035263259880392470noreply@blogger.com1tag:blogger.com,1999:blog-6088554710615410597.post-87242878038119723222016-01-26T13:56:00.000-05:002016-01-26T13:56:26.349-05:00Challenging Your Children To Start A Business <div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgxHvHbnbb0hfm0MwdKL4uSg8v5ngXAcnmtCy42u_WyiCbr2DDIC-yYkFPr7qR5bPQVV0JNnJf9a2QYx4W05bXicyLdlh7V7auqBvndpalEFOW3fzV1NfE4ULX2uZJAUjWF19gdNMTyk-k/s1600/jan16-22-ba61187-700x394.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="180" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgxHvHbnbb0hfm0MwdKL4uSg8v5ngXAcnmtCy42u_WyiCbr2DDIC-yYkFPr7qR5bPQVV0JNnJf9a2QYx4W05bXicyLdlh7V7auqBvndpalEFOW3fzV1NfE4ULX2uZJAUjWF19gdNMTyk-k/s320/jan16-22-ba61187-700x394.jpg" width="320" /></a></div>
I was trapped in the snow blizzard this past weekend and was not able to prepare the blog post I intended to write. So let me share this one that I wrote for Harvard Business Review and was posted on their site last week.<br />
<br />
<a href="https://hbr.org/2016/01/why-i-challenged-my-kids-to-start-companies-before-college">https://hbr.org/2016/01/why-i-challenged-my-kids-to-start-companies-before-college</a>Ray Sheenhttp://www.blogger.com/profile/08035263259880392470noreply@blogger.com0tag:blogger.com,1999:blog-6088554710615410597.post-81322206859344522372016-01-18T11:58:00.000-05:002016-01-18T11:58:01.638-05:00Happy Birthday to a Value Creator<div class="MsoNormal">
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</div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhRe6z27RqJMkqkHOK3Q04VGepWOC7EB2aJHRH5UWixDe8qxoCjfyDbGw98Udgtl6lGGx83aKOezh6mBspFjQRm4w26TKD-7LXHU09HPCRiLxYf82LSOSMBoOz9wcCJVGkgoYJWVCD5npU/s1600/wikipedia_logo_detail.gif" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhRe6z27RqJMkqkHOK3Q04VGepWOC7EB2aJHRH5UWixDe8qxoCjfyDbGw98Udgtl6lGGx83aKOezh6mBspFjQRm4w26TKD-7LXHU09HPCRiLxYf82LSOSMBoOz9wcCJVGkgoYJWVCD5npU/s200/wikipedia_logo_detail.gif" width="195" /></a></div>
<span lang="EN-GB">Happy birthday Wikipedia! January 15 marked the 15<sup>th</sup>
birthday of Wikipedia, the free online</span><span lang="EN-GB"> </span>encyclopedia<span lang="EN-GB"> that is created by its users. </span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">I don’t know about you, but I often use
Wikipedia for a quick background on a subject and to identify the in-depth
references that I need for further research.
The site is easy to use and often very helpful. Is it a peer-reviewed authoritative source
with thoroughly vetted information? No.
But when I want a quick insight to a topic or issue, it is a great place
to start. <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">Wikipedia has only been around for 15
years, but it is the 7<sup>th</sup> most visited site on the web. It beats out social media giants Twitter and
LinkedIn. And it beats out the online
sales giant, ebay. What makes it so
popular? I believe it is because it is
because Wikipedia understands its customers and has created a platform that
brings value to them.</span><o:p></o:p></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<div class="separator" style="clear: both; text-align: center;">
</div>
<b>Encyclopedias</b><span lang="EN-GB"><o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">The concept of an</span><span lang="EN-GB"> </span>encyclopedia
<span lang="EN-GB">has been around as long as there have been books and reference
libraries. The purpose of the</span> encyclopedia<span lang="EN-GB"> was to
combine the information from multiple references into one place. Before computers, this was done through
books. I can remember using our family’s
copy of the World Book Encyclopaedia while doing homework as a teenager. But these multi-volume sets of books were
cumbersome and expensive. When Then computers
came along the</span><span lang="EN-GB"> </span>encyclopedias<span lang="EN-GB"> were
turned into programs, the most notable being Microsoft’s Encarta. Today most, if not all,</span> encyclopedia<span lang="EN-GB"> companies
no longer offer a print version.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">The internet changed the way many people
assimilate information. They wanted
immediate access to short summaries of current information on every topic under
the sun. And then if they are interested,
they would dig deeper into a topic. This
sounds like an opportunity for</span>
encyclopedias<span lang="EN-GB">, yet Microsoft shut Encarta, down several
years ago. Just taking the old</span> encyclopedia<span lang="EN-GB"> model and
putting it online did not create a lot of value for potential customers.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><b>The Customer Value of Information</b><o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">When considering the value of information,
I want to segment the consumers of information into three groups. The first group is the academic, researcher
or professional who needs authoritative information about specific topics to do
their work effectively. The second group
is the student who needs authoritative information on many topics to complete
their assignments. The third group is the consumer or hobbyist who wants to
quickly get the background on a topic in order to answer a question. <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">The first group were the people who wrote
the print versions of</span>
encyclopedias<span lang="EN-GB">, but seldom used them. They were already experts with far more
knowledge and information in their fields of interest than could be summarized
in an</span> encyclopedia<span lang="EN-GB"> article. Their interest in</span> encyclopedias<span lang="EN-GB"> was the
prestige or pay of writing content.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">The second group used the</span><span lang="EN-GB"> </span>encyclopedia<span lang="EN-GB"> when they had to get their information
for their assignments. Rather than
hours in a library, they could get what they needed in a few minutes from the</span> encyclopedia<span lang="EN-GB">. They had
no intrinsic love for</span><span lang="EN-GB"> </span>encyclopedias<span lang="EN-GB">; they
were just an easy source of information. As books and information because available
online, the search engine browser replaced the</span> encyclopedia<span lang="EN-GB"> for many students.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">Which brings us to the third group. Most people are curious. Sit down with</span> neighbors<span lang="EN-GB"> and friends for a few hours and you
will likely hear dozens of topics discussed.
The ability to quickly find out about a topic is very enticing to many
people. But the key is “quick.” With our
short attention spans and busy schedules, most people do not want to go to the
library a buy a book for every question they have ever had. They just want an overview. <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">Here was the opening for Wikipedia. While</span> encyclopedias <span lang="EN-GB">have always been able to provide
overview information, most of us didn’t want to carry the 24 volume set around
everywhere we went. The search engine on
the internet at first seemed like the answer, but we soon found that it often
was taking us to sites that were trying to sell their products or philosophy
and we had to sign up to get the information.
We didn’t want a sales pitch; we just wanted an answer to the question.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB">The value of Wikipedia to these people is that
it is a free and easy source of basic information. Wikipedia further added to the value by
letting the readers enhance or contribute to a topic. They have not taken an elitist attitude that
restricts contribution to only an enlightened few. This allows everyone to share what they know
and keep the information current. The
user not only can get the information they need, they can help others
learn. <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><b>Lessons from Wikipedia</b><o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">There are some lessons in the Wikipedia story
about creating customer value that may be helpful for your products and
services:<o:p></o:p></span></div>
<div class="MsoNormal">
</div>
<ul>
<li>Segment your customer base – different users
have very different needs. The academics don’t use Wikipedia for research
because they have different needs, and that is OK. Wikipedia is not trying to be all things to
all people.</li>
<br />
<li>Easy access to information – when people
have a question, they want the answer or at least a high level perspective on
the answer quickly and concisely. If you
make it hard to get the information, they will go somewhere else where it is
easier. If you turn the information into
a sales pitch they will suspect your motives and your information.</li>
<br />
<li>Keep your message simple – you are an
expert in your field or industry and you want to share that expertise, but most
people don’t have the same interest or passion.
Make it easy for the casual user to get what they want. Then if they are interested, lead them into a
“deeper dive.”</li>
</ul>
<br />
<br />
<div class="MsoNormal">
<span lang="EN-GB">So Happy Birthday Wikipedia. Thanks for the information and thanks for the
example of value creation.<o:p></o:p></span></div>
Ray Sheenhttp://www.blogger.com/profile/08035263259880392470noreply@blogger.com0tag:blogger.com,1999:blog-6088554710615410597.post-78618099710820638082016-01-12T12:05:00.000-05:002016-01-12T12:05:48.474-05:00Powerball Project Management<div class="MsoNormal">
<div class="separator" style="clear: both; text-align: center;">
</div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhatXGk7IoCB-BgWzh_s8EaFZ52YzfPcNoRBC5uHUptduEYssGCRs2twwhqXCRENZ5Efkw-nOPYpH2s7W7nJApiY82nboveNNDfqOqXH9WBDf6k5S3ptQ5lBRJD95y8fqFnag7NopcE15A/s1600/Powerball.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhatXGk7IoCB-BgWzh_s8EaFZ52YzfPcNoRBC5uHUptduEYssGCRs2twwhqXCRENZ5Efkw-nOPYpH2s7W7nJApiY82nboveNNDfqOqXH9WBDf6k5S3ptQ5lBRJD95y8fqFnag7NopcE15A/s320/Powerball.jpg" width="306" /></a></div>
<span lang="EN-GB">As I watch the frenzy growing over the
Powerball lottery jackpot, I am reminded of the history of a failed innovation project
that I have been analyzing for a company.
The project team kept trying one long shot idea after another, hoping
that an idea might pay off. As the
project became further behind schedule, more and more resources were added
chasing wilder and wilder ideas. <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">This sounds a lot like what is happening in
the Powerball lottery. As the payout
keeps growing (it is now estimated to be $1.3 billion dollars), I see more and
more people spending money they can ill afford to spend on lottery tickets. They then cross their fingers and hope they
win; just like this project team kept hoping that one of the ideas they tried
might work.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><b>Risk and Reward</b><o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">Ask any financial adviser and they will
demonstrate that an individual will be far better off financially if they took
the average amount of money the typical Americans spends each year on lottery
tickets and invested that in a sound investment. Yes, someone does eventually win the lottery
and they receive a huge payout, but the vast majority of people who buy tickets
are losers and the money is wasted.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">Even many of the people now buying a
lottery ticket will tell you that it is a stupid waste of money. But they are doing it anyway because the payout
has become so big. The risk is the same –
you are virtually guaranteed to lose your money. But the reward has grown to the point where
people are now willing to take the risk.
<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">The reason the reward has grown is because there
have been no recent winners. The longer
the Powerball lottery goes without a winner, the larger the payout. It was somewhat similar on the innovation
project. None of the earlier ideas had
been feasible. An idea that gave
adequate product performance was too big, or not serviceable. An idea that was the right size, couldn’t
meet the specifications. It was like
having some of the winning numbers on the lottery ticket but not all of
them. The longer the project went
without a viable solution, the more management focused on the project. Whoever came up with the idea that would work
would be big hero in the company and be well compensated for their idea.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">So ideas kept coming. In fact, the project team was growing. People were working overtime. There was a frenzy of activity – most of it
wasted effort. The project manager had
no control over what was happening.
Configuration control of product designs was lost. Testing was analysis was ad hoc and
unfocused. Different sub-teams
responsible for different components were using incompatible approaches for
subsystems that had to integrate with each other. The project manager could no longer even
report on project status because he had no idea what many of the people were
doing. <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><b>Discipline of Project Management </b><o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">The company had lost sight of the
discipline of project management. Just
like disciplined investment of money will yield steady predictable growth in
the value of a portfolio, disciplined project management will yield steady
progress on a project. Starting with a
plan and doing regular risk reassessment and pulsing of the project will
identify the problems and issues. A
disciplined problem solving approach will lead to an understanding of the
nature of the problems and point to a solution strategy. Planning the solution and implementing the
solution plan keeps the project on track and moving to a successful conclusion.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">Granted this isn’t the adrenaline rush of a
“Eureka” moment when using disciplined project management on an innovation
project. Nor does it lead to the discovery
of “heroes” in the business that suddenly emerge by creating the next
mega-million jackpot product line. But
it will prevent the business from wasting tons of money on worthless ideas. It
does provide a predictable approach to innovation and it keeps the project
manager and senior management informed and involved.<o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">Incidentally, which project disciplined project
management approach you use is not critical.
What is most important is that you pick one and use it on your
project. Just like there are many
financial strategies, there are many innovation project management
methodologies. You might prefer
stage-gate over Agile. You may be a fan
of the PMBOK Guide®, or you may be an advocate of PRINCE2. You may be able to use an industry specific
methodology like APQP or IPPD. You may
prefer the rigor of Design for Six Sigma or the framework of the SDLC. Pick the one that best fits you industry and
culture – then actually use it. <o:p></o:p></span></div>
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">Disciplined project management does not
mean nonsensical bureaucracy. It does
mean that you have a plan which is followed and updated periodically. It does mean that you do regular risk
assessment and variance analysis in order to make tweak the plan. It does mean that you have regular status
updates within the team and stakeholders to maintain alignment and
integration. These same principles apply
to wise financial investing.<o:p></o:p></span></div>
<br />
<div class="MsoNormal">
<span lang="EN-GB"><br /></span></div>
<div class="MsoNormal">
<span lang="EN-GB">Powerball project management is a recipe
for disaster. Chasing ideas with no project
plan, throwing resources at problems with no structured problem solving approach,
and getting caught up in the frenzy of the moment won’t bring you success. Keep in mind, the odds of winning the
Powerball jackpot is 1 in 292 million.
The odds of Powerball project management leading to a successful
innovation are about the same. <o:p></o:p></span></div>
Ray Sheenhttp://www.blogger.com/profile/08035263259880392470noreply@blogger.com1