The Correct Answer is: Build Capacity

by cv harquail on June 17, 2013

“Fire him”.

That’s the business school student’s default answer to the question that starts nearly every case conversation: “What should the manager do?

My role as a professor is to teach management students why “fire him” is almost never the correct answer — and to understand what always *could be* the correct answer.

6378443547_269fb83224Management students, like most people, want to find a definitive answer to the problems they face. “Fire him” reflects their hope that by eliminating the employee who seems to be causing the problem, they will solve the problem itself.

If only it were that easy.

Finding good solutions to management problems is complicated. There is almost never a situation where “Fire him” is a real solution, because firing an employee eliminates just one expression of the problem.

Most organizational problems show up in many places throughout the organization, because problems have multiple and related causes. The problem could be with a particular employee’s behaviors and attitudes, certainly. And in that case, firing him might make sense. But these problems could also be caused by other employees, the organization’s systems, culture and even its core identity.

When I work with students and clients to help them figure out how to solve their business problems, I break solutions down into four types.

Types of “Solutions”:  Band aids, Adjustments, and Revisions

1. Band aids are the quickest and weakest type of solution.  Band aids are when you put a stop to the losses, the problematic behavior, the whatever it is that is causing the immediate problem. You do this so that you have some time to figure out a better solution. Which you have to do, since Band Aids are only temporary and they always fall off.

2. Adjustments are solutions that aim to ‘tweak’ rather than change.  You look for and find some one thing in the system or the process that you can tweak that will keep this specific problem from happening again. You hope.

And then you realize that in a complex and interconnected organization, there’s never just one tweak that fixes everything. Plus, changing one system and leaving other systems intact means that other systems will be fighting to reverse your ‘adjustment’.

3. Revisions are the third type of solution, a solution that aims to go deeper ‘into the system’ that is causing the problem.  Revisions ask us to look for ways that systems affect each other, and ask us to find ways to change the systemS (plural) so that they all incorporate the change and reinforce the change together.  Here, students look for ways to revise the systems so that they don’t cause problems for each other.

I like to use the analogy of a kid walking to school who gets a blister on his foot. To solve the problem of his blister, his first step might be to put on a band aid. That takes away the immediate pain but doesn’t prevent the problem. So, the second solution — the tweak– is for him to change the shoes he’s wearing. That adjusts one system.

But maybe the blister is also caused by his shoes, by his socks, and by the fact that he regularly sloshes through puddles, getting his feet wet and inviting blisters? Maybe this kid needs to change his shoes and his socks, and learn to avoid puddles?

Yet all three of these solutions point to one end goal– eliminating the ‘problem’.

These solutions fail to consider that their might be a 4th approach, which would lift the kid off his feet and put him on a bike so he not only no longer got blisters, but also so that he got to school faster, so he could start learning earlier, so he could…

You get the picture. So that he could accomplish whatever it was that had him walking to school in the first place.

That 4th type of solution, my favorite kind, is: Building capacity.

With solutions that Build Capacity, your goal is to figure out a way to make the organization remarkably better at doing whatever it was trying to do when the original problem came up.

Building Capacity requires taking several steps backwards, not only to look at the systems keeping the problem in place, but also to look at the larger set of goals, values, desired outcomes, priorities, and skills that limit the system to creating that particular problem.

When we’ve got a problem we usually try to fix it. Yet, every problem gives us a chance to ask how we can do more than “fix” things.

4438835392_7d272dc948

We can consider how and in which direction to grow.

Problems ask us to Build Capacity.

In class, I’ll often help students work through all four types of solutions, one after another, so that they can learn how the “presenting problem” has complex origins and complicated systems that work together to keep the problem alive.  And students almost always get to a place where they can effectively revise a network of systems to bring the problem to a close. But,

It takes a bit of audacious thinking and a little managerial courage to take a step towards building capacity.

To move beyond ‘problem solving’, students and managers need a vision of where the organization can go, where the organization wants to go, where the organization *could* go.

Fixing problems returns us to a steady state, but capacity building amps up the power to go…. where?   “Find a way to build capacity” is an answer that turns us towards growth, towards change, towards purpose, towards flourishing.

Leaders see problems as the chance to go further, beyond the problem and beyond the solution. And because I want students to see themselves as leaders — regardless of the scope of their role at any point in time — I hope to teach them that there is really one ‘always correct’ answer from a leader.

When the question is “What should the leader do?” the correct answer is always:

“Build Capacity”.

 

See also: Work-Life Fit is an Enterprise 2.0 Solution 

Image: Build Capacity CopyrightVandy Creative Campus

{ 0 comments }

How One Little App Creates A Boost Economy

by cv harquail on April 13, 2013

If you’re ever lost your mind worrying that the 3-mile back up at the Lincoln Tunnel was going to make you miss dinner,  you’ll appreciate the unique value of the traffic app Waze.

Waze provides drivers with local maps of accurate, real-time traffic information. The information doesn’t come from a traffic helicopter or from cameras stationed on tool booths, but from data supplied by individual drivers right there on the road with you. The data is gathered, analyzed and presented to drivers on their own mobile devices. Drivers can confidently decide whether to ditch the Lincoln Tunnel and head north to the GWB, or relax knowing things will clear up so they’ll make it home on time.boost economy, app creates boost economy

Waze is a great product because it solves an acute pain for the user.

It’s also a terrific example of how one company, through its product and business model, can create a complete Boost Economy.

How Waze Works

Waze depends on drivers’ willingness to share individual data with an expectation of reciprocity. Waze only works if other people in front of you contribute their data on your behalf, and if you contribute your data to the people behind you.

Before Waze can create value, each user must share information about her drive in real time. The driver activates the Waze app on her mobile device, and then keeps the data flowing by keeping the app on as she drives. The mobile device and its internal GPS system communicate real time data about speed and location, which gets mapped along with the data from other travelers on the same roads at the same time. The information from travelers in front of you allows Waze to estimate the traffic flow on that road and roads nearby, giving you real time information about your options for making your progress as swift as possible.

Waze gives each kind of user a boost of information that they can use to improve whatever it is that they are doing. In my case, I’d be able to choose a better route over the Hudson using information I can get nowhere else.

Users Share Data, Waze Transforms Information, Everyone wins

However, it’s the Waze app itself that turns these individual streams of data into information that’s valuable. Drivers’ data has to be processed through the Waze app so that it can aggregate the data, make geographic sense of it (e.g., puts it on the road map), use its own algorithms to estimate the speed and the density of traffic, and then display this information on an easy to read traffic map.

Waze estimates that, on average, its users saves 5 minutes of driving time per day.

That nets out to more than 2 million hours of traffic a year that users are able to avoid. Each user is able to devote that saved time to something more important. The Waze app also has other functions, and Waze users can also volunteer to play additional roles (e.g., by sharing information about specific delays like tractor-trailer spills, by adding new roads to the maps, and by adding comments about road construction). Everyone’s capacity to do what they want to do is increased. In the eco-system of players everyone wins.

Waze (The Business) Creates the Foundation For the Boost

Waze provides the foundation that everyone (themselves included) builds on to create value. Their business model, formally called a multi-party/multi-market platform, is designed to match players with different contributes to players with different needs to fill. Waze (the company) designed their app intentionally to be open, free, and crowdsourced. It’s easy for users to give and get value simply by using the tool itself. waze-6-300x431

In addition, the platform is designed so that each player’s participation generates more value that that particular player needs to capture. Each driver is happy to receive  real-time traffic information simply by turning the app on. Drivers don’t worry about whether they’ve created more value for the drivers behind them than they themselves received from the people in front of them. (If you were just driving to Ikea, but the people behind you were late for a wedding, you could argue that they received more value from the app than you did. But really, nobody cares.)

In the meantime, Waze  analyzes the aggregated data over time and identifies opportunities to sell ads and adjacent travel services. Waze is able to calculate the direct revenue that they receive for the value they provide to drivers. Although drivers/users are unlikely to quantify the money saved by spending less time in traffic, everybody’s satisfied by the value they receive. The Waze platform generates additional value that many of the users don’t even recognize.

It’s the drivers’ activity that, over time, helps Waze offer the most complete and accurate maps of roads that drivers actually use. These maps are not only highly accurate, but also they are ‘owned’ by Waze. Waze doesn’t have to license map data from Google (in fact, it actually sells map data to Apple).

Waze and the drivers who use it can’t create value without each other.  Relative to the individual drivers, Waze has more power. Waze sets the basic terms of participation, determines how the app functions, and decides what information features are made available.

Still, there is room for drivers to contribute at higher levels for different kinds of additional value if they choose to. They can join local groups, participate in games, earn badges, work on expanding and correcting the map data base, and more.  The Waze platform provides a social community on top of the shared value, that members can engage in as they wish.

Waze has build a profitable business by providing a platform that makes it easy for users give what they have and get what they need. By doing a little extra analysis and selling on the back end for their own profit, Waze has created an economy / network/ ecosystem/ community that makes money and that makes everyone’s work easier.

 If one clever little app can create a boost economy of 30 million happy users, what could your business do? 

 

{ 0 comments }

“Data Shame”: Can It Actually Boost Business-to-Business Relationships?

March 13, 2013

Tweet Data shame It’s such a striking concept, it’s hard to believe that “data shame” gets only two legit google hits — one in a blog post and another in a glossary. I only heard the term a few weeks ago in a presentation at Social Media Week NYC about Open Data for the Public [...]

Read the full article →

Negotiating From A Leader’s Perspective

February 27, 2013

Tweet There’s a lot of terrific advice out there to help you negotiate your total compensation package when you’re accepting a new job. While this advice helps you as an individual get what you personally need, most negotiation advice overlooks how you can transform your personal compensation negotiation into a demonstration of your leadership. This [...]

Read the full article →

How To Choose Business Partners for a Boost Economy

February 5, 2013

Tweet A friend told me once that we should only share our love with people who can benefit from it. My friend argued that even though we might want to ‘love’ everyone, in reality we can’t. So, she said, we should be choosy about whom we love. For a long time I thought that advice [...]

Read the full article →

Why Zipcar Is Not the “Sharing Economy”

January 9, 2013

Zipcar isn’t a sharing business, so it can’t create the sharing economy. Who can? Businesses that support customer-to-customer relationships and reciprocal caring.

Read the full article →

Defining Thick Value in a Boost Economy

November 20, 2012

Thick value has many simultaneous kinds of positive meaning, that are stacked, nested, embedded, and fused with each other into layers that are weighty with significance. Thick value has more meaning and conveys more about why it’s valuable. When we pay attention to thick value, we make choices that help us maximize more than financial profit or system efficiency.

Read the full article →

5 Ways to Expand How We Think About Value in a Boost Economy

November 14, 2012

Tweet It can be hard to convince certain “business” people that it actually makes sense to conduct their business in a generous, boosty way that creates opportunity for others. The mainstream business conversation has remained so wedded to the notion that ‘price’ accurately captures ‘value’, and to the belief that financial goals trump other kinds [...]

Read the full article →

Only Partner With Businesses Who Have the Love And Will Share It

October 25, 2012

Tweet I was meeting with a Silicon Alley entrepreneur, talking with him about options for extending his company’s reach by partnering with other businesses that target his same audience. He’d had a short-term partnership with Company A but the results had been lackluster. The entrepreneur had come away from the experience disappointed, and was about [...]

Read the full article →

Lead With A Story: Book Review

October 12, 2012

Tweet I’m suspicious of the idea that people who want to be leaders should tell more stories.   While I get the arguments that stories are persuasive because they are emotional, have a predictable arc that makes it easy for people to get engaged with them, are easy to remember, etc. etc. I’ve sometimes wondered whether using [...]

Read the full article →