Like the weather, people are subject to the whims of butterflies

The butterfly effect, popularized by Edward Lorenz, says that something as small as the flapping of a butterly's wings can affect something as large as the weather. This is because the weather is a chaotic system; it is complex, non-linear, and highly sensitive to initial conditions.

The behavior of people is also chaotic, even though each individual thinks they are consistent and rational. The discrepancy arises from a lack of knowledge of all of the internal rules and conditions that make perfect sense to the individual, but are unknowable to others.

On the way to work this morning, I was stuck behind someone on a two lane road with almost no passing zones. This person drove exactly the speed limit, although most locals will exceed the speed limit by at least 10 mph in this area. If this person wants to adopt a "law and order" posture, that's fine with me. However, in a different section of the road, this person started going 20 mph over the speed limit in order to get around a large truck.

To me, I thought this was inconsistent behavior. When I was in a hurry, this person wanted to follow the law. When they thought they would be delayed, then the law goes out the window. Internally, I'm sure the person's behavior was thoroughly consistent with his internal rules.

This is what makes management and other interactions with people so difficult. You can think you are interacting with the person the same way on two different occasions and get completely different outcomes, because you didn't understand all of the details from their perspective.

Is sales more difficult than managing?

I used to think that managing was the most difficult task in the world because it dealt with people--the most complex thing in the world. Managers are trying to get people to do something, but they typically have some leverage with those people (salary increases, job security, etc.). People in sales are also trying to get others to do something, but often have no leverage at all.

Different mindsets of managers and non-managers

I am transitioning to a non-management role for the first time in over a decade and I am surprised by how different the necessary mindset is. As a manager I was primarily concerned about others and tracked many different issues. As an individual contributor, I am rediscovering the required focus on a single task. I had forgotten what a stark contrast there is between the two roles. It deepens my conviction that the biggest step in a manager's development is the first step from non-manager to manager.

For more on this topic, I recommend the book "The Leadership Pipeline" by Ram Charan.

Management is the nervous system for the corporation

In a corporation, management serves the function of the nervous system in the human body--sensing what is going on and relaying information to the necessary parts. When a company skimps on management, you see pathologies that are analogous to nervous system disorders in humans.

It is easy to dismiss management as unnecessary overhead and therefore strive for a "flat" organization. But that makes as much sense as arguing that the nervous system is unnecessary overhead. Unlike muscle, it can't lift anything. It doesn't provide structural support like the skeleton or transport vital nutrients like the circulatory system. But when it is diminished, many challenging symptoms develop.

Talent should be measured in dB

Talent varies so much from person to person that it ought to be measured on a logarithmic scale. However, you can often hire the best for only a 30% premium. Is there any reason to not hire the best?

Cleaning Out Cubes

You learn a lot about a person when you have to clean out their cubicle. Some people hoard things, which either deprives others of their use or causes the company to spend more money to compensate. Some people leave things trashed, perhaps thinking they're "sticking it to the man" when in fact they are sticking it to their former co-workers--some of whose opinions might be important for a future job search. Some people spend a little effort tidying up and even leave behind something helpful (e.g., location of useful files) or humorous. In any event, the way you leave your workspace is part of the impression you leave behind and worth a little effort to make sure it sends the message you want to send.

Hiring People Who Are Smarter Than You

Many people claim to hire people who are smarter than themselves; but what is the consequence of doing so? It is that they will be right more often than you are. So if you find yourself shooting down their ideas or correcting them,

1. You didn't give them the information they needed
2. This is one of the rare cases where you are right and they are wrong
3. You are wrong and don't realize it, because they are smarter

"The Myths of Innovation" by Scott Berkun

I highly recommend "The Myths of Innovation" by Scott Berkun. If you are interested in creating innovative software, this book is a must-read.

Find Out What's Going On In Your Organization

In order to effectively lead and manage any organization, it is imperative that the leader/manager knows what is going on in his/her organization. This feedback allows for for mid-course corrections when things aren't working out as planned. It also let's you know when your initiatives are being misinterpreted or ignored. When the organization is not implementing your plans, you have to find out why and figure out whether there is a problem with the plan or with how the plan was communicated.

Receiving quality feedback up through the chain of command is an age-old problem that can never be fully solved. There are fables of kings dressing as commoners in order to learn the true state of their kingdom. While this approach does not often work in modern organizations, there are many techniques that can help.

Culture. Try to create a culture that rewards accurate feedback. You can't make good decisions with bad information.

Channels of communication. Create multiple channels of communication for feedback, some of which should be anonymous. These can include blogs, email, voice mail, suggestion boxes, small group meetings, informal hallway chats, informal lunches, and the best of all, impromptu visits to various work areas. Pick a few of these and practice them regularly so that everyone begins to feel comfortable with them.

Response to feedback. When you receive negative feedback, model the appropriate behavior consistent with the culture you wish to create. Recognize that the lack of negative feedback indicates a serious problem in part of your organization.

Corporate Training and Culture

One thing that is often overlooked in corporate training is that, for better or worse, it is an important medium for conveying culture. It amazes me how little attention is paid to how mandatory internal training, especially for new employees. Don't tell me what your corporate values are--I can hear them loud and clear. Don't tell me how innovative your new product is going to be, and then harangue your developers for 90 minutes on the consequences of filling out their timecards incorrectly. If you are a manager, you must audit these courses to find out what your people are being told and whether the proper values are being conveyed.

Reflecting Reality

Often times, the only thing required to help people and organizations improve is to help them see reality. This is the value added by project managers, outside consultants, schedules, and status reports. You would think that these people and activities don't add value--that we can just supervise ourselves. In practice, we are not good at seeing reality on our own. Once people see things as they really are, they are usually good at addressing problems on their own and the manager or colleague doesn't have to be the bad guy.

Barry Diller "gets it"

In the Wall Street Journal on Tuesday, Barry Diller of IAC is quoted as follows:

WSJ: Would you want to run a movie company today?

Mr. Diller: No. Words like "tent pole" and "merchandising" have nothing to do with telling good stories. The current process of major film companies is so different than it was 10 or 20 years ago, and I find the output that comes from it far less interesting. It's a very hard business to get into, and I don't know why you'd make that choice rather than shoe manufacturing.

Seth Godin's Blog on The difficult choice

Seth Godin discusses the role of luck in success on his blog today.

There are really two issues here. The first issue is the importance of pure luck. I think Seneca's quotation that "Luck is what happens when preparation meets opportunity" puts the correct emphasis on preparation (the part one can influence) as a necessary condition for taking advantage of opportunities (which one, by definition, can not influence).

The second issue is that many people are only seeking an adequate alibi for a lack of success. It is OK for them to fail so long as it is not their fault.

Maintain your performance--especially when things are going poorly

There is a tendency to slack off when we are in an organization that is doing poorly. What's the use in trying hard?

Even when things are going badly, perhaps especially when things are going badly, others are watching and evaluating your individual performance. These assessments are vitally important in landing the next opportunity. You're always "on". You're always auditioning. Make sure you maintain your professionalism.

Gretzky bucks trend to become successful coach

I think coaching is an excellent leadership laboratory. It allows one to practice various aspects of leadership and management that are transferable to the business world. And best of all, most coaches get a fresh start each season.

Along those lines, I recommend the following article in The Hockey News. Many of you will recognize themes in the article that are taught in the better books on business.

Double OT: Gretzky bucks trend to become successful coach

Jacked Up

I'm really enjoying reading Jacked Up: The Inside Story of How Jack Welch Talked GE into Becoming the World's Greatest Company by Bill Lane. I have enjoyed the books that Jack Welch authored, but this book gives me some real insight into how Welch really operated on a day-to-day basis. Lane worked with Welch for many years and provides some great anecdotes that you would never get in an autobiography.

Teams: The Only Source of Sustainable Competitive Advantage

Almost any move you make can be easily countered by your competition. You build a factory, I build a factory. You cut prices, I cut prices. Even patents provide precious little protection.

Who builds these factories? Who develops pricing strategies? Who creates new inventions? People do.

What is truly unique about your company is your people. Sometimes a small number of superstars can generate an advantage, but if they leave, the advantage will probably not be sustained.

That is why I believe that the only source of sustainable competitive advantage is a high performance team. This team must have some superstars, but a healthy team can survive the departure of a few high potential individuals and replace them with others. It takes time to build a solid team, but ultimately it is the only path to long term profitability.

Marketing and Engineering: Two Sides of the Same Coin

The most important component of your marketing strategy is your product. Where does your product come from? Engineering.

But the engineering team won't be as effective as it could be if it is isolated from marketing in its own functional silo. Engineering needs marketing to determine what is needed, and marketing needs engineering to determine what is possible. It is the constant, iterative process of product development between marketing and engineering that delivers the best attainable product for your situation.

This sort of relationship requires a significant level of trust, and that trust must be built over time. Does marketing really know what the market needs, or is it just relaying the latest anecdote from a customer? Is engineering padding its schedule so it won't have to implement that feature? Only time will tell. But once you attain this level of cooperation, the payoff is huge. My most effective years as an engineering manager occurred when my office was right next door to the product marketing manager.