Saturday, June 2, 2018

MANAGEMENT SPECIAL..... Design for Your Strengths


Design for Your Strengths

Paul Leinwand, coauthor of Strategy That Works, introduces a counterintuitive lesson in how to achieve breakthrough performance in your organization from Olympic medalist John K. Coyle.

In their efforts to compete, business strategists often forget a basic principle: Build from your strengths. The most successful companies have a clear, well-articulated view of what's important to them and their customers. They understand that the way to win consistently is through what they do rather than what they sell.
These companies also understand that “what they do” is unique to them; they have their own capabilities and practices that no other company could quite duplicate, even if it tried. In that sense, building from your strengths is the most reliable way we have found to differentiate your company.
This advice is easy to state and difficult to follow — not just in business, but in every aspect of human endeavor. Focusing on what you are great at doing is intuitively compelling, but few companies drive their strategy this way. It’s too easy to get caught up in chasing what others do — fixing the inevitably long list of weaknesses in your company, or seeking out what’s new in a world of change.
But when you understand what you’re great at, and design your capabilities and strategy accordingly, you can define how you want to compete, and shape your own future rather than waiting for others to do it for you. John K. Coyle understands this. He has been through grueling challenges to his competitive edge, both in his profession (as a design engineer and consultant) and as an Olympic athlete (in speed skating). As you’ll see, he came out the other side with new triumphs and a sharper understanding of the best way to prepare to compete.
As a senior at Stanford University in 1989, I was passionately interested in mastering two capabilities. The first was design thinking: an influential creative problem-solving method, closely tied to my major in product design (and to the work of management theorist Herbert A. Simon and the IDEOdesign methods, among others). Design thinking involves a continuous cycle of innovation: understanding an issue by gathering data about it, empathizing with the people involved, ideating new approaches, prototyping one or two of them, and then returning to the understanding stage. Practitioners continually revisit and reframe challenges to ensure that they are solving the most relevant problems.
The other capability I wanted to master was speed skating. I was confident I could qualify for a near-term Olympic bid, for the 1992 Winter Games in Albertville, France. During my senior year at Stanford, while studying full time and training myself — no coach, no training program, and very little ice time — I had placed 12th in the world championships for short-track speed skating. I expected that by joining the Olympic team full time, with all the support that entailed, I would soon go from 12th to sixth to first.
Little did I know that my two passions would soon intersect in a way that would teach me the essence of building on my strengths. I would undergo a profoundly humbling experience, in which I would have to treat immense challenges unemotionally, as opportunities to learn and reframe, and to pursue solutions as a design thinker would, with intense passion and unemotional curiosity at the same time.
Most of all, I would have to do the opposite of what others were doing and what most experts were telling me to do. Instead of trying to compensate for or fix my weaknesses, I would have to focus on my natural strengths. This did not feel like the right thing to do at first, and bucking the status quo is never easy, but I now believe it is the only way to truly excel. And, I believe, this counterintuitive lesson is exactly what anyone seeking to build a distinctive capability for a team or enterprise must learn.
I did not know this at the time. But through experiences such as my training in Olympic speed skating, and in my coaching of and working with others, I have come to recognize four key rules inherent in designing for your strengths: (1) accept your weaknesses; (2) recognize your specific strengths; (3) solve the right problem (which is not necessarily the problem other people have diagnosed for you); and (4) double down on your strengths by accentuating the things that make you great. I spent years focused on improving my weaknesses, and in the end that made me a poorer performer. There is far more leverage in designing for your strengths.
1. Accept Your Weaknesses
After graduation, I moved to Colorado Springs to join the U.S. Olympic speed skating team, living and training at the Olympic Training Center. I was full of hope and confidence, excited to work with the best coaches in the world. Upon arrival, I was put through a series of tests known as the SATs of sports. These included a “maximal volume of oxygen” (VO2 max) test, which is said to be the most predictive measure of an athlete’s capability in speed skating. It is an aerobic torture test. You ride a stationary bike and, while you are breathing through a tube, the speed and resistance are ratcheted up until you feel like you are going to die. During my session, I put everything I had into the pedals until I collapsed. I was proud of my effort until I received my results: I had the lowest measured VO2 of the entire team, by a large margin. I had lasted barely 13 minutes. Later that morning, a 17-year-old Lance Armstrong lasted twice as long. According to the prevailing knowledge about the test and the sport, this meant I didn’t really have a shot at being a great speed skater. The current state of knowledge was wrong, of course, but I didn’t know that yet.
All of us — individuals, teams, and organizations — have weaknesses. These are not skill gaps; those can be corrected with learning. Weaknesses are inherent deficiencies of talent or capability that do not change even after aggressive efforts to improve them. Pride and our ingrained work ethic may cause us to deny our weaknesses, but acceptance is the first step toward designing for strength.
Neither the coaches nor I wanted to accept the results of the test. But we had to, especially after I took a second test, the Wingate, or max power test, two days later. On a stationary bike, you pedal as fast as you can for 30 seconds against heavy resistance, while the device tracks your power output. To my surprise, the Wingate results were even more catastrophic: I passed out cold after 18 seconds, falling off the bike and failing to finish. Again, I had the lowest score on the team for average power output, but the data was interesting in one critical respect. For the first 15 seconds, I had an advantage. When analyzed second by second, the data showed that I had in effect a small thermonuclear reactor in each quadriceps. At its peak, five seconds after the start, my anaerobic output registered 1,740 watts per kilogram, the highest peak power of the team by far. (Anaerobic activity uses no oxygen and thus does not affect the cardiovascular system, but it increases muscular strength.)
Unfortunately, given that the shortest event in speed skating took at least 40 seconds, this strength didn’t seem particularly useful. The coaches, after some debate, decided to try to “fix” me as an athlete by focusing on my weaknesses.
“John, you will train harder and longer than anyone else on the team to strengthen your aerobic capacity,” said one of them. “While everyone else does jumps and squats, you’ll be doing 100-mile bike rides and 15-mile endurance runs. In two years, we’ll have you strong enough for the next Olympic Games.”
In making this decision, the Olympic team was “benchmarking” me — a practice as common in sports as it is in business. The best-in-class standard in this case was five-time Olympic gold medalist Eric Heiden. If I wanted to win, they believed, I would have to train like Eric. They said this with conviction and compassion; they wanted only the best for me. Sadly, they skipped the step that design thinkers call empathy. In retrospect, I see that all of us were ignoring the second rule, below.
2. Recognize Your Specific Strengths
Weaknesses tend to be universal and broad. I know this personally; I am essentially terrible at all hand–eye coordination sports or any event lasting more than a couple of minutes. But strengths are often extraordinarily specific. My own strength was a rare gift: 1,740 watts of anaerobic power in short-term bursts. It was like having a superpower — but it wasn’t clear, in those training years, exactly what to do with it.

From my earliest days I had been considered fast. Eventually it became clear I was good only at short events, so I became known as a sprinter. But I was not good at all short events, only certain events with an element of leverage or power. I still hadn’t learned enough about my singular superpower to describe it as precisely as I can today. I am fast, as a sprinter, in events requiring repeated bursts of power against resistance, with a short rest, all while balancing and traveling at high speeds, through a pack of people moving dangerously fast, and passing them at the last possible second to win. Only a few sports fit that description. They include short-track speed skating and velodrome cycling, the only two sports in which I have competed at the world championship level.
As an individual, or as an enterprise, knowing the specific nature of your strengths is incredibly important. Perhaps, as an individual, you are a good communicator. But can you be more specific? For example, are you best at articulating simple concepts underlying complex topics? As a narrator of emotionally powerful stories? Or at analyzing facts and data? Are you better with big audiences? Medium-sized audiences? Small groups? Videos? Visuals? Or words? Are you better as a facilitator or one on one? Are you a coach? A challenger? A comedian? Or perhaps a listener? All of these are implicit in the catch-all term “good communicator,” but if you don’t know your specific superpower, you can’t leverage it to full advantage.
Because I didn’t yet understand this, I worked relentlessly for the next two years on fixing my weaknesses. I spent hours every day focused on everything I wasn’t good at. This had a couple of unintended consequences. First, I went from being the 12th-ranked speed skater in the world to being ranked 34th the following year. Second, despite all my effort, my VO2 max score failed to improve at all, remaining steady at 52. Not only did this weakness-focused approach fail to improve what I was bad at, it also destroyed the only thing I was good at. During that two-year training period in Colorado Springs, my peak power waned, from 1,740 watts to 1,250 watts. I didn’t even come close to making the U.S. Olympic team for Albertville. I skated slower at the Olympic Team Trials than I had in my very first national team trials nearly 10 years prior, when I was only 13.
Worst of all, I slowly dissolved as a human being. Over those two years I almost stopped talking. All I did was train, eat, sleep; train, eat, sleep. When you use all your willpower just to show up every day, it saps the energy for anything else. I began to feel like the people who, as Henry David Thoreau put it, “lead lives of quiet desperation.” I was a failure. I was terrible. I was ready to quit.
The coaches failed to show any empathy for my strengths and weaknesses, but to their credit, they did not give up on me. They kept up their refrain, “Keep at it! You’re going to break through! Just keep going, you can’t quit now!”
But it didn’t make sense. I started to step back, in my own mind, and wonder: Why was this happening? I used to be good; why was I declining? How many more years would I have to do this until I broke through? And at what cost?
Disheartened, I began to withdraw from the established training regimen. I continued to live with the team, but rebelled against their weakness-centered training approach. By adjusting my workouts to better suit my strengths, I mitigated the damages enough to compete in the 1994 Winter Games at Lillehammer, Norway. Although I was not strong enough to medal in the individual races, I was able to bring home a silver medal from the 5,000-meter relay. During that period, I began to accept the fact that I didn’t fit the mold of a champion like Eric Heiden and that I could never be a strong aerobic athlete. But I didn’t need to be one to succeed. Only when I realized that, and began to change my life accordingly, could I move forward.
3. Solve the Right Problem
A moment of magic accompanies the willingness to quit. It involves gaining a better perspective. Prior to this moment, it is almost impossible to be objective about your challenges. Too many emotions and pressures intrude. But now, you can evaluate your options more dispassionately, and — in the language of design thinking — learn to ask better questions. The problem you are trying to solve may not be the right one to address.
In my case, fixing my weaknesses was the wrong problem to solve. I have since come to think that the same is true for many other people and organizations seeking breakthrough performance. Instead of solving for “how do I fix my weaknesses?” I asked myself, “how can I design for my unique strengths?”
Top of Form
Bottom of Form
Back when I was growing up in Detroit, I had a cycling coach named Mike Walden. He was a remarkable man; despite being only a club-level coach for the local Wolverine Sports Club, he would ultimately mentor more than 100 national champions, 10 world champions, eight Olympians, and five Olympic medalists (I was one of the last group). In 1990, just two years before I went to Colorado Springs, Walden had been inducted into the U.S. Bicycling Hall of Fame.
Walden spoke in short, sharp barks: pithy phrases, each with a specific and deep meaning, custom-tailored for each person’s strengths. That was how he became one of the greatest coaches of all time. His repeated advice to me was “Coyle! You gotta finish it at the line!” I can remember as an 11-year-old thinking, “Well, duh, where else am I going to finish it?” But what he really meant was “Coyle, you have a weak aerobic motor, but a great anaerobic engine. You need to time your sprint to win by a tiny margin right at the line. Go too early, and you’ll blow up because you have a weak aerobic capacity.” Over the years, following this advice and perfecting my skill, I had won hundreds of races by the smallest of margins.
Walden was also known for his signature broadcast, shouted dozens of times each practice: “Race your strengths! Race your strengths!” Even after two years of focusing on my weaknesses, I could still hear Walden’s voice in my head, and after the Lillehammer games, I finally decided to follow his advice. That meant quitting the team, but not the sport — and training on my own, doing the opposite of what I had been told for the previous two years.
I used design thinking to reframe the challenge. Instead of “How do I fix my aerobic weakness?” I asked myself, “How can I leverage my anaerobic strength?” But that wasn’t specific enough. So I zeroed in on the advantage my strengths might provide. I asked, “How can I use my strengths to get to the finish line in less time?” This was still not specific enough. Eventually, by accepting my aerobic weaknesses, I realized that I couldn’t skate faster and farther. So I asked myself: “What if I can simply go less far?” I figured that by traveling 15 percent less far than my opponents, I could skate 14 percent slower and still win.
In short-track skating, the physics are striking. The track has tight corners with a 25-meter radius. A world-class speed skater enters a corner at 31 miles an hour, and, exactly two seconds later, exits at 31 miles an hour going the opposite direction. The equivalent acceleration is zero to 62 mph in two seconds, which even most automobiles cannot match. This generates a gravitational force of 2.7 gs — almost as strong as a space shuttle liftoff. During a race, this happens every 4.5 seconds. For a 170-pound skater like me, racing each corner is like doing a 500-pound, one-legged squat from deeper than 90 degrees, while leaning over at 68 degrees, while traveling 31 miles an hour on an 18-inch-long, one-millimeter-wide blade, on ice, headed directly at a wall.
The conventional best practices of the sport were designed to help speed skaters cope with these realities. To diminish the g-forces and to reduce the likelihood of crashing, everyone skated a wider track. This expanded the radius of the turn from 25 to more than 28 meters, reducing the g-forces from 2.7 to maybe 2.3 or 2.4. But it also increased the track length from 110 to as much as 125 meters, nearly 15 percent farther than strictly necessary.
I decided to try a new technique: going a shorter distance. I had always loved “pivoting,” or diving directly into a corner, which is necessary sometimes to pass another skater. What if I pivoted into every corner? It would reduce my distance (as shown in the thick red line at this link). It would also be very difficult and super-dangerous. Many people crash during the dive-in move. But it could be perfected with training, and I had the one natural strength required: the ability to provide a huge surge of power for a few seconds with a short rest, over and over again. Which brings me to my fourth rule.

4. Double Down on Your Strengths
Strengths and weaknesses are often mirrors of each other. My aerobic weakness had, as its inverse, a superstrength of anaerobic power. Indeed, these two attributes often go hand in hand. Finally, I had figured out how to put this to use.
After the Lillehammer Olympics, I dropped out of the training camp. But I was more dedicated than ever to skating. I moved to Milwaukee, and without the financial or logistical support of the Olympic Committee, began a regimen of work, business school, and self-guided athletic training. I woke up every day at 6 a.m. and went to the rink. There I put on my pads and blocks and skated from 7 until 9:30. Then I changed into a suit for my part-time job as an engineer. At 3 p.m., I left work in Milwaukee and drove to the Kellogg Business School at Northwestern, a two-hour drive. I had class from 6 to 9 p.m., usually arrived home at 11, and lifted weights until midnight. I did that every day for two and a half years.
Many people assume that being an Olympic athlete requires a lot of discipline. But in my experience, the discipline is only physical. Someone is there to make sure you get up, start warmups, practice, and eat right. It’s like being in the military. Building capabilities on your own, without someone else’s playbook, takes much more mental discipline.
One event made it easier for me, psychologically. A few months after starting this regimen, I visited the Olympic Training Center in Lake Placid, N.Y. I was still nominally on the team, and I thought this would be a welcome reunion. But at the first ice session, the coach pulled me aside. “I’m very sorry, John,” he said, “but the skaters and coaches have voted. You can’t skate with the team. You have to go home.” I was furious beyond belief, but it was one of the best things that could have happened. Solitary training was difficult, but after that event, each morning I got up with vigor, flipped a single-finger salute to Lake Placid, and got to work. It also showed me how unpopular you can be if you make a decision to buck conventional wisdom.
The first real test of my new approach came about a year after I started, when I went to the 1995 U.S. World Team trials for a three-day national competition. I was nervous because I didn’t want to be humiliated. I arrived a week ahead of the event and then promptly got a severe case of the flu, which meant I couldn’t train much for most of that week. On the first day of the trials, the preliminary event was not my forte. It was a 1,000-meter time trial, which goes on for about a minute and 40 seconds. The top 16 racers qualify, and the other 80 competitors go home. I was sure I would be thoroughly embarrassed: the rebel, the wild child, training without a team. Despite how nervous and sick I felt, I showed up on the line.
This race is run pursuit-style: Two skaters start on opposite sides of the rink, chasing each other around the loop. One sign that you’re falling behind is when your “pair skater” catches up and skates past you. My pair was a strong skater who had been second in the Olympic trials the year before. As we lined up, I focused my attention on my approach: skating directly at the blocks and diving in. If my pair didn’t catch me, I thought I might have a shot at being in the top 16, which would allow me to skate the remainder of the competition.
After the starting gun, I entered a dreamlike flow state. I dove into each turn, just millimeters from each block, ice flicking up off my pivoting blades. I coasted the straightaways and felt the g-forces as I surged through tight corners. Time went into slow motion, and I didn’t feel like I was going fast.
After a couple of laps, I noticed something strange. I was catching my pair skater fairly quickly. Because of the flu, I knew I wasn’t at my best, so I thought he must be really out of shape. Then I forgot about him, resuming the intense focus on skating “my” track. At my fourth lap, the judges made him swing wide and I passed him. Around the sixth lap, I noticed that the rink was very quiet. Normally, these competitions are noisy; there are 400 people in a small space, with coaches yelling, parents cheering, athletes sharpening skates, and kids running around. Not this time. I allowed my awareness to expand and noticed that there were faces pressed against the glass. I looked at the lap times, and the lap card said “.2.” I didn’t know if that was 10.2 or 9.2 seconds per lap. In speed skating, the margins are tiny; the difference between first and second place is often measured in hundredths of a second. I knew that nobody could skate as fast as 9.2 — it was faster than the world record — and 10.2 was way too slow. So I just ignored the numbers and kept skating.
After nine laps, I finished the race. My coach from the Olympic team, one of those who had rejected me at Lake Placid, was there. He jumped out on the ice with his stopwatch held high and stood directly in my path. I was traveling at 30 mph directly at him, so I tried to dash around him, but he stayed in my way so I had to skid to a stop. He looked angry. He said, “Coyle, what the hell have you been doing!?”
I was about to burst into tears. I had been voted off the island; I had skated alone for a year; I was trying a totally new technique; and I was sick as a dog. All my fears of humiliation boiled over. But I forced my spine to stiffen and said, with false bravado, “I…I have been sick!”
His eyes met mine. He smiled. “No,” he said, “you don’t understand. You just broke the U.S. record by five full seconds.” I had in fact skated 9.2 seconds per lap. “You skated faster than the world record.”
I was speechless. In fact, I didn’t believe it. I was immediately convinced I had skated a lap too short and my failure would quickly be rooted out. So I calmly exited the ice and reviewed the tape on the video camera, counting laps. Only then did I realize the scale of the breakthrough.
The best part was the cause. I hadn’t skated any faster. I had no new technology. I didn’t invest in a new wind tunnel–tested skinsuit or new skates or blades. I wasn’t doping or taking supplements. I was still the same me. I had simply skated less far, and in so doing, I had built on my strengths instead of trying to fix my weaknesses. This type of design thinking, combined with my natural anaerobic power, was my distinctive capability.
During the next two days of that competition, I broke every U.S. record. Later that year, I went on to set the fastest time in the world in the 500 meters at the world championships.
On Building Capabilities
After that event, I continued my own form of training. I had high hopes of bringing home a gold medal at the 1998 Winter Olympics in Nagano, Japan. But in 1997, I was persuaded to return to the Olympic Training Center to train with the team once again. The coaches, still stuck in their mental model of an aerobic athlete, immediately put me on their old benchmarked approach, and I went along with them. It’s not unlike a business that innovates a bold new way of doing business, but after a period of success finds itself slipping back into familiar patterns, just because it doesn’t have full confidence in its new approach. But slipping back had devastating effects for me. Not only did I not bring home a medal in 1998; I failed again to make the team. I was beyond humiliated and embarrassed. In my mind I had disappointed everyone who had believed in or invested in me. After the last race at the Olympic trials in Lake Placid, I got in my car and drove 45 hours straight to Phoenix, Ariz., to leave the cold behind and start a whole new life.
Leaving skating was like going through a difficult divorce. Between 1997 and 2006, I had nothing to do with the sport. I gave my silver medal to my parents and cut off all communications with my skating friends. I didn’t follow the results or watch skating on TV. I joined a management consulting firm called Diamond Technology and focused on design thinking and related work. I married and started a family. With time, the pain and disappointment faded.
Then, in 2006, I received a phone call from NBC asking me to be the speed skating analyst for the Olympics coverage in Torino, Italy. I couldn’t say no, and shortly thereafter I found myself thrust back in the sport, interviewing the parents, skaters, and coaches to gather stories to feed to the commentators.
Something happened during that Olympics that changed my life forever. I was at dinner with the skaters and their parents when one of the parents pulled me aside to a quiet corner of the restaurant. “John, I have something important to tell you.” He seemed serious, even nervous. “I just want you to know that we wouldn’t be here right now if it wasn’t for something you did.…” He trailed off.
I was confused. “I don’t know what you mean.”
“You won’t remember, but 12 years ago you brought your silver medal to a little reception in Bay City, Michigan. You put it around my son Alex’s neck. He was 11 years old at the time, and the next day he joined the Bay City Speedskating Club.” His eyes welled up. “And tomorrow, Alex is skating for a gold medal.”
This changed everything. I experienced a sudden release from years of feeling like a failure. I got involved again, started coaching the local clubs, got my daughter started in speed skating, and started announcing competitions and World Cup events. I also, for the first time, began talking about my experiences in public.
My biggest failure, just like my biggest weakness, has now become a source of success. As I share my story, I connect on a human level with people around the world. People everywhere relate to the narrative of fighting a system and forging a new path — not for the sake of bucking the status quo, but because everyone needs to find his or her own distinctive path to success. It is not easy to know your strengths, and it is even more difficult to put them to use and build on them. It may require you to look outside standard approaches to getting things done. But if you can step back, accept your weaknesses, recognize your specific strengths, solve the right problems, and design your own way of winning, you too might find your life has changed. This way of going through life is not for everyone, perhaps. But neither is the struggle many of us put ourselves through — the struggle against our own innate capabilities.
—John K. Coyle
by John K. Coyle
https://www.strategy-business.com/article/Design-for-Your-Strengths?gko=6fc72&utm_source=itw&utm_medium=20180522&utm_campaign=resp

DIGITAL SPECIAL ......10 Principles for Leading the Next Industrial Revolution PART II


10 Principles for Leading the Next Industrial Revolution PART II
CONTINUES FROM PART I 

Embracing New Practices
4.  Raise your technological acumen.
 No matter what industry you’re in, you live in a programmable world, and software will be key to your competitiveness. Take the German auto industry, for example. For years it has traded on a worldwide reputation for excellence in mechanical and powertrain engineering. But from now on digital excellence will be at least as important. This change is forcing some hard thinking about future industrial strategy, in a country that is known, according to the Financial Times, for relative weakness in IT. “In the future, 50 to 60 percent of the value of a car will consist of digital devices and tools,” said German federal chancellery chief of staff Peter Altmaier, one of Angela Merkel’s senior advisors, at a panel debate in November 2016. “And 20 percent [will be] batteries. If we’re not careful, [German manufacturers will] only be responsible for the windows, seats, and wheels.”
Every company, even if it’s in Silicon Valley, will need to improve its technological acumen during the next few years. This is a matter not just of recruiting people with software expertise, but of raising the skills of everyone at your company. They need not just the technical training to use digital tools, but insight into the patterns of technology — for example, how to create an operations footprint that can take advantage of the Industrial Internet, or how to accumulate the type of data that can foster machine learning.
You will be adopting manufacturing execution systems that link the elements of enterprise resource planning with all the factory operations of a company and its suppliers. Augmented reality will enable operators and decision makers to see data about operations (or anything else) on wearable devices. A schematic might pop up, helping an engineer (or, in another setting, a surgeon) determine where to direct a probe. Digital fabrication will allow a wider range of components and products to be created close to where they are needed, rather than being shipped long distances or going through customs; the costs of this technology are dropping about 10 percent per year. Interoperability among all these technologies is much more common than it was in the past. This allows even the largest enterprise to coalesce around a more coherent global strategy — and when your people have the right kind of digital acumen, they can make use of systems far more effectively.
The industrial infrastructure will make it easier to design your workplace for digital acumen. Set up displays with shop floor or financial data, offering opportunities for employees to discuss their meaning and how to improve them. If your factories have robots, design them as “cobots”: collaborative robots, equipped with sensors that make them responsive to the people who work nearby. The robots handle the rote tasks, such as moving parts into position; the people handle the more fine-grained parts of the operation, where judgment or artistry is required. Tailor office environments to the work needs, learning opportunities, and emotional engagement of the people who work in them, with collaborative workrooms that bring teams together easily with videoconferencing and other digital connections. In general, design your work spaces as opportunities for your people to learn — from experience, from analyzing data, from the increasingly intelligent technology around them, and from one another.
Top of Form
Bottom of Form
As people throughout your company become more comfortable with the Industrial Internet, they will develop a collaborative culture of innovation. They will also better understand the risks of the new world — for example, risks related to accidents, privacy violations, and cyber-attack. This insight will be invaluable, not just within your company, but across the platforms you inhabit.
Because possible points of attack or vulnerability are spread throughout the ecosystem, responsibility for their security needs to be shared broadly, and frameworks for legal liability need to keep pace with technological developments. CEOs and their boards may need to be as good at judging when the world is not ready for their technology as they are at judging when their technology is ready for the world.
5.  Innovate rapidly and openly.
 Innovation and leadership go hand in hand in the next industrial revolution. Many companies will seek disruptive innovation, but a steady stream of incremental innovations can be more profitable. Smaller innovations will be easier to generate and, more important, easier to test in the market. With the tools of the Industrial Internet, you can prototype new products, manufacture them in small batches profitably, distribute them rapidly, and see how your customers respond before rolling them out worldwide. As you continue to develop incremental innovations, they can sometimes snowball into disruption. That’s what happened with the smartphone, which evolved between 2000 and 2007 from a music player (the iPod) into a world-changing device.
Rapid innovation is more effective when you are open to collaboration with those outside your own company’s walls. Draw on a broad group of participants, including the organizations that are connected to your platform. Much of the technology in the Industrial Internet is not just cross-functional, but cross-industry. When whole supply chains and customer ecosystems are automated, integrated, and transformed, innovation follows a similar pattern.
Siemens, for example, is making a billion-dollar investment in what Lak Ananth, the head of the company’s Next47 startup unit, hopes will be “a new era of collaboration between hungry early-stage startups.” (The name Next47 echoes the landmark year of 1847 when the company was founded.) Areas of collaborative venture capital investment include artificial intelligence, autonomous machines, decentralized electrification (smart grids), connected mobility, and blockchain applications.
6.  Learn more from your data. 
The exponential increase in real-time data — gathered from customers, equipment, and work processes — is giving companies new insights. Gathering and analyzing data are important, but they are only the beginning. It is critical to use the analytic results to recognize important patterns, and to gain insights that help you make the right choices and keep improving on the fly.
For example, getting accurate information about progress and cost on construction sites has always been a challenge. Now, a construction company or investor can use drones to gather photographic images, overlay them with the original site plans, verify contractor reports, and spot discrepancies as small as a centimeter wide. In the agrochemical sector, farming companies also use drones, along with data from weather reports and sensors mounted on their machinery, to fine-tune their planting, fertilizing, and harvesting practices. Industrial companies of all sorts now use data gathered from factory floor sensors to inform maintenance and operational decisions. GE’s chief digital officer, Bill Ruh, estimated that just one performance increase resulting from these efforts, in locomotives, saves one railroad US$200 million per year.
In the military aerospace sector, manufacturers are able to use the data set that is fed back from an aircraft to create immersive and experiential simulation software and training programs that can transform the training economics for fighter and other flight crews. Wear and tear on the airframe can be minimized and the aircraft reserved for the missions that matter, substantially reducing the overall cost to customers of military training and preparedness.
And of course, in all industries, companies are now able to develop highly customizable, on-demand manufacturing, with customers having real-time access to design, supply, and demand systems. Direct feedback and interfaces between manufacturing systems and customers’ own ordering and demand planning systems are shortening lead times and improving capacity utilization planning. One of the great frontiers in data analytics is materials. A plastics maker that notices a customer using a polymer in one way could propose a different approach, based on analysis of what other companies have done with that same polymer.
To make the most of your data, integrate your analytics teams. Schedule regular sessions in which people talk about what they are finding, and how it could affect the business. Ensure that data from all your operations and customer insights is considered. Draw in relevant information from other companies and from the government. By doing so, you balance your proprietary interest in your own data against the fact that open data sharing allows for much more insight. Platforms make sophisticated data sharing of this sort far easier than it used to be. Finally, in addition to any business changes you make, revamp your analytics approach so that your data gathering and synthesis will be still more effective next quarter.
7.  Adopt innovative financing models. 
New large-scale technologies inevitably put pressure on the old ways of raising money for them. As the Industrial Internet expands, the ability to finance major capital projects will remain one of the hallmark capabilities of an industrial company. But the particulars will shift.
Infrastructure projects will closely follow the example of the software industry, where cloud computing has sparked a quiet but pervasive change. Software users no longer buy packages; instead, they subscribe to software-as-a-service, paying rent to the provider in exchange for access and continual upgrades. This approach affects the type of financing that tech companies need, and the ways they manage return on investment.
Larger industrial firms will similarly move from financing the ownership of factories and machinery to financing a pay-as-you-go system, with smaller but more frequent rent charges for more flexible installations. There will be less interest in replacing old equipment, and more interest in continuing to upgrade it, using 3D printing and other forms of digital fabrication to manufacture and customize new components. Industrial companies will take a cue from Silicon Valley and finance more of their investments through equity and venture capital, rather than through debt. Adjustable pricing will also be more common; technology will allow B2B prices to vary by time of sale, amount of use, and type of application.
Amazon has been a pioneer with innovative financing, particularly in the way it scales up and upgrades its platforms. It consistently innovates in areas such as cloud computing and warehousing, which require large but targeted investment. It has done so by repeatedly raising money from the stock market and making a convincing case that these investments are going to pay off in the long term. It has thus been able to put in money where other companies didn’t have it. GE has had similarly strong financing acumen, drawing its investment capital from the management (and divestment) of multiple businesses. It’s building an enormously expensive platform almost from scratch. The company has a staff of about 28,000 software engineers.
In the end, to fully develop the Industrial Internet (and thus to continue the viability of industrial civilization), it will be necessary to replace or upgrade every aspect of the world’s industrial infrastructure, with capabilities and systems that didn’t exist before. Financing all this will require as much expertise and creativity as the technological innovation. The technologists understand this. They are establishing metrics for tracking short- and long-term returns, balancing immediate payback and long-range aspiration. They are also embracing new mechanisms, such as blockchain, to ensure that pricing, billing, transfer payments, and subsidies are reliable and free of undue influence. By the time they are finished, the capital infrastructure could be as boldly innovative, and as different from that of the past, as the physical infrastructure that it made possible.
Making a Better World
8.  Focus on purpose, not products. 
As a leader in the Industrial Internet, you will probably develop a wide range of products and services during any given five-year period, potentially in several sectors. Many other companies will use the same platforms to enable their capabilities. To differentiate your company, you need to develop a clear purpose: a value proposition, more effective than anyone else’s, that applies to everything you do. This means looking closely at the reasons people come to your company, the outcomes they expect, and the ways you can deliver. When you are clear about what your company is, and why you sell what you sell, people will trust you to deliver what you promise.
Customers recognize when a company fulfills its purpose. They are interested not in products or services, but in outcomes. Consumers at a premium retailer are buying more than clothing or a coffee drink. They are buying a distinctive experience as well. Instead of thinking of your company as providing a particular type of product or service — electric power, health records management, or automobile components, say — think of it as a producer of outcomes. The customer needs to get somewhere, so you’re not a car company; you’re a facilitator of mobility. Already in many cities, customers are using vehicle sharing apps for short-term rentals (often of electric vehicles), reserving cars where they need them and dropping them off when they are finished. The house is cold, so you’re not just a fuel supplier. Your purpose is to help make the home warm, possibly through energy consultation.
Ask yourself whether your company truly has an outcomes focus or is still stuck in a physical product mind-set. Are you judging success according to the meaningful differences you make to customers in terms of satisfaction, quality of life, and productivity? Could better outcomes be possible for customers if you could produce or provide goods and services in a different way?
9.  Be trustworthy with data. 
You already collect a vast amount of data. As the IoT spreads to wearables, consumables, cars, and every conceivable part of the home, what you know about people will increase exponentially. The Industrial Internet will bring that level of data collection into your workplace. Shared data is the fuel of the next industrial revolution. And just as earning digital trust will be key to success, forfeiting people’s trust will be a surefire route to failure.
You will need not only to manage customers’ behavior, but to prevent outsiders from gaining access to critical information. Strong risk management, cybersecurity, and data integrity systems are essential in helping companies avoid breaches and better manage disruption to operations. Transparency has to be an integral part of your strategy. Without a clear idea of how rules are defined and implemented, for example, stakeholders may question a company’s fairness and honesty.
Keep up with leading-edge approaches to protecting sensitive information from cyber-attack or theft. Cloud-based systems built into most digital platforms will make it easier to protect data by enabling companies to track and recognize intrusion in near real time. As PwC cybersecurity experts David Burg and Tom Archer put it, your company will most likely protect itself in the future “by monitoring activity across all its online systems, studying not just the moves of hackers but the actions of legitimate customers as well. Both types of visits, after all, are forms of repetitive human behavior, opposite sides of the same coin.”
It might seem as if the lack of trust in large businesses and government institutions, endemic throughout the world, will compromise your ability to be trustworthy and transparent. But it actually creates a powerful opportunity to differentiate your company. In PwC’s latest global survey of CEO opinion, many CEOs recognize as much. Just under two-thirds of chief executives (and three-quarters of those who head companies with revenues of more than $10 billion) believe that how their firm manages data will be a differentiating factor in the future.
10. Put humanity before machines. 
You might think the principle of putting people before machines is so obvious that it goes without saying. But the history of technology is full of examples where the opposite has happened. The Industrial Internet places unprecedented power in every enterprise. As machines become increasingly interconnected, the quality of user experience will spread in viral fashion. If people are shut out — of jobs, creative opportunities, income, and customer satisfaction — embracing technology will backfire. Business, in particular, will thrive in this new world only if its leaders understand the place of human values.
Set up your enterprise to foster better connections among people, to encourage humane behavior, and to build the requisite capabilities that overcome technological isolation. The most important skills for accomplishing this will be those that can’t be replicated by machines. Your company will need people who can understand the technologies of the industrial infrastructure, such as artificial intelligence and analytics, but who are also adept at working with an organization’s culture. Helping people take pride in their endeavors, as our colleague Jon Katzenbach suggests, will be critically important; so will establishing a diversity of points of view, so that people from different backgrounds can challenge one another’s perspectives.
Most important of all will be a basic attitude of respect for human beings; as technology becomes more proficient at this larger scale, the most distinctive thing about people will not be their ability to solve problems or achieve results, but their empathy, intuitive judgment, and authenticity; their abilities to care, connect, and choose, in ways we can’t predict in advance.
What place will your company occupy as the next industrial revolution unfolds? It depends on your ability to bring all these principles to bear. You will combine your people, your capabilities, and your technological acumen in ways that you never have before. We will soon not just see individual fortunes change, but also see them move forward in ways that provide stability, self-sufficiency, and a high quality of life. In a sense, this represents the culmination of the wave of digital technology that started in the 1950s, and it still has a few years to go before it stabilizes. By that time, we’ll be just about ready to start all over again with yet another “next” industrial revolution —assuming this one works out as well as we hope.
by Norbert Schwieters and Bob Moritz
https://www.strategy-business.com/article/10-Principles-for-Leading-the-Next-Industrial-Revolution?gko=f73d3&utm_source=itw&utm_medium=20180522&utm_campaign=resp

Friday, June 1, 2018

HAPPINESS/ HABITS SPECIAL.... The Science Of Happiness, In Four Simple Work Habits


The Science Of Happiness, In Four Simple Work Habits

One happiness researcher believes we’re all capable of becoming happier in our jobs. It just takes a little bit of deliberate practice.

There might be many reasons why your job makes you miserable. Maybe your work is boring, your manager is terrible, or your company just has awful benefits or a crappy work culture. If you aren’texperiencing any workplace malaise, bravo! You’ve hit the jackpot.
But if you crave more satisfaction at work, you don’t necessarily need to find a new job or escape your boss. According to Dr. Emiliana Simon-Thomas, a happiness researcher at UC Berkeley, where she teaches a popular edX course called “The Science of Happiness” and serves as Director of the university’s Greater Good Science Center, we’re all capable of making ourselves happier at work–we just have to, well, workat it.
“Some people have a greater capacity for happiness than others do,” Simon-Thomas recently explained to me, mainly because of genetics or life experience. But she claims that “if you want to maximize your potential for happiness, there are things you’ve got to do.” Here are four habits everyone can practice in order to feel happier at work no matter what.

1. INTENTIONALLY SAVOR THE GOOD TIMES
Simon-Thomas poses the question: “How likely are you to say, ‘Yes,’ when asked, ‘Did you enjoy your day at work?’ Two individuals can face the same set of challenges, and one will leave the workplace invigorated, and the other anxious or depressed.”
“Our days at work, as in life, will rarely be uniformly pleasurable,” she continues. “Such times do exist. When you find them, appreciate and cherish those stretches.” It’s easier said than done, and Simon-Thomas recognizes that. “More often than not, workplaces are pressured and challenging,” she adds. But it’s “those who can laugh at their foibles, be mindful, advocate for their own ideas, and dwell on what has gone well [who] will thrive on those challenges,” she explains.
“They realize creative solutions to those setbacks” thanks to the positivity they’ve built up and taken time to appreciate when good things do happen.

2. FIND (OR CREATE) THE PURPOSE IN YOUR WORK
The people who are happiest in their jobs, says Simon-Thomas, are “driven by a higher purpose.”
There’s plenty of data to back this up, even outside Simon-Thomas’s field of happiness research; we know, for example, that a sense of purpose is fundamental to the psychology of motivation. “People whose daily activities are guided by or framed in accordance with their sense of purpose are happier in life,” Simon-Thomas points out, yet that sense of purpose is not something we define strictly by ourselves.
“It really matters to one’s happiness at work that [one’s] organization has a mission or overarching ethos about what they do and why it matters,” she explains. Managers need to help team members see “why their contributions matter and how their activities advance the goals of the department, the company, and the world at large,” says Simon-Thomas.
Obviously, that doesn’t always happen. So if you feel like a “cog in the wheel,” she suggests, take steps to “reframe your work.” You can also try talking it through with your boss: Ask your manager to help you connect the dots between what you do and what the company puts out into the world. Otherwise, consider becoming more intrapreneurial in your existing role. Create something new–a program, a service, an event, or a project that has an impact you can actually witness.
“Or if you can’t find a match between your values and your current position,” says Simon-Thomas, “seek it out in another role.”

3. IMPROVE YOUR RESILIENCE
The third attribute of happy employees, she continues, is resilience, “the ability to recover from adversity that might seem overwhelming [to others], and keep on going.”
Let’s say, despite your best efforts, you’ve flubbed an important project and your boss has made her displeasure known. You could lash out defensively, stifle your shame, retreat, and decide that in the future you’ll steer clear of major projects–and your boss. Or you could respond as Simon-Thomas would advise: “Take a few deep breaths, remind yourself that this episode is temporary, and reflect on the external circumstances that contributed to it.”
This simple mindfulness exercise can help you become more resilient in facing similar setbacks–which, after all, is inevitable. “With all that in mind,” says Simon-Thomas, “make it clear to yourself and to others that you’ll do better next time.” Carrying this positive outlook forward will help you avoid dwelling on past failures–and feel happier about opportunities to grow.

4. PRACTICE KINDNESS
The fourth habit to practice, says Simon-Thomas, “is social connectedness, the ability to build relationships with others.” Happy employees feel like they’re part of a team they trust and that supports them in return. How do you develop this sense of connectedness? According to Simon-Thomas, “it’s by tapping into our innate kindness, taking a genuine interest in others, and showing more empathy, compassion, generosity, and gratitude.”
“Kindness,” she notes, “also entails being willing to reconcile interpersonal conflict. Workplace apologies garner respect, and forgiving others relieves stress, strengthens closeness, and creates a sense of belonging.”
These are all basic interpersonal skills that we’re taught in kindergarten but don’t always keep working on as grown-ups–in part because our jobs don’t always encourage that. As Simon-Thomas argues, “in the workplace the culture of hierarchy and stoicism is incredibly ingrained. And all those things make it much more difficult for people to trust each other and treat each other in a respectful and supportive way.”
But, she believes, practicing kindness is one of the simplest and most effective ways to break down those norms–no matter how stiff or stale your work culture may be–and become happier in the process. Chances are your efforts will be contagious, making the people around you happier, too.

BY JUDITH HUMPHREY
https://www.fastcompany.com/40554865/the-science-of-happiness-in-four-simple-work-habits?utm_source=Greater+Good+Science+Center&utm_campaign=65e33d993e-EMAIL_CAMPAIGN_GG_Newsletter_May+16+2018&utm_medium=email&utm_term=0_5ae73e326e-65e33d993e-51482775

MANAGEMENT SPECIAL .....Ops 4.0 – The human factor: defining the needs


Ops 4.0 – The human factor: defining the needs

The Ops 4.0 revolution has profound implications for the skills, capabilities, and culture of many companies. In the first issue of “Ops 4.0: The Human Factor,” we asked how much progress your organization has made in preparing for that change. Your feedback made intriguing reading. Almost half of all respondents (47 percent) said that they don’t yet fully understand what capabilities their company will require as it makes the transition to Ops 4.0. And while a further 42 percent of respondents said they had taken steps to understand the necessary capabilities, all admitted that there was still work required to identify and close specific capability gaps.
Now, we want to take a deeper dive into the specifics. Where is Ops 4.0 going to create the most significant capability demands? Which skill profiles will be the toughest to fill? It is likely that most companies will need to obtain, upgrade or expand their capabilities in a number of major areas:
·         Managing machines. 
Automated equipment, robots and advanced control systems are becoming increasingly capable and flexible, but more machines need more people with the skills to set them up, adapt them to meet new requirements, and fix them when they break.
·         Coordinating networks. 
Ops 4.0 and the Internet of Things (IoT) will be all about connections, with continual data flows between machines on the factory floor, between the factory and the cloud, and across the value chain between customers, suppliers and the wider world. Building, maintaining and securing those networks will require new combinations of skills that span the realms of industrial control and enterprise IT.
·         Implementing analytics. 
The transformation of raw data into actionable information is a key source of value in Ops 4.0. To build and run the tools that drive that transformation, companies will need to master a raft of techniques, from smart statistical analysis to emerging machine learning and artificial intelligence technologies.
It won’t all be about new capabilities. Ops 4.0 is also likely to increase the requirement for many of the skills companies use and value today. In particular, they’ll need people who can:
·         Identify process improvements. 
Whether digital or analogue, human or machine, operations achieve excellence through a process of incremental continuous improvement. Knowing what to change requires deep functional and domain expertise, together with the skills to identify waste and solve problems on the front line.
·         Implement changes. 
Ideas only become performance improvements if they are adopted and sustained. That requires managers and team leaders who can design and enforce standards, and who can engage and motivate their people.

And companies won’t just need specialists in each of these areas. They’ll also want people with right combinations of skills to bring all these elements together. Digitally-enabled process improvements will require an understanding of analytics and change management along with deep domain expertise, for example.
 by Markus Hammer
https://www.mckinsey.com/business-functions/operations/our-insights/operations-blog/ops-40-the-human-factor-defining-the-needs?cid=other-eml-alt-mip-mck-oth-1805&hlkid=ef5162379b7149869a7b8411e14588a7&hctky=1627601&hdpid=0ff34e27-0742-4afc-ad47-9e84a26d6b36