Tag: innovation

Diverse Leadership Teams – Why Bother?

April 22, 2012 by Elisa SpainNo Comments

Diverse leadership teams are hard…they are harder to build, are unlikely to come to consensus and are more likely to have conflict.

So, why bother? Because… they are harder to build, are unlikely to come to consensus and are more likely to have conflict, they make better decisions. Research studies prove this out.

Before we go any further, let’s start with some definitions; here’s mine:

Homogeneous groups have similar backgrounds, preferences and personality styles
Diverse groups contain individuals with a variety of backgrounds, preferences and styles

Notice, I didn’t mention gender, race, ethnicity, sexual preference. Why? Because categorizing frequently leads to stereotyping and while stereotyping might be a shortcut to achieving diversity, it may not. In fact, it may instead simply lead to stereotyping as evidenced in the failure of diversity training. Here’s a recent post on this topic by a fellow leadership coach, Peter Bregman, Diversity Training Doesn’t Work.

What to do?

As with any critical decision, start by asking yourself the #1 leadership question: What outcome do I want?

Diversity is not always the best approach. Homogeneous groups are easier. Because of their similar backgrounds, preferences and styles they are likely to agree and move forward quickly.

If the goal is getting more of what you already have, then a homogeneous group may be the way to go.
If the goal is innovation and critical thinking, you are more likely to get there with a diverse group.

If you decide you want to build a diverse team, ask yourself the following questions to get started:

Do I know the backgrounds, preferences, and styles of current team members?
What actions do I need to take to learn this information about my current team?
What are the gaps in the current team?
Who in my organization could I add to the current team to increase the diversity?
If I am hiring team members, what qualities would add to the diversity?

If you would like to read more on the results of diverse groups, here is an article by two Kellogg professors to get you started: Better Decisions Through Diversity.

Innovation Vs. Discipline Part 2: Kodak Vs. Fujifilm

March 11, 2012 by Elisa Spain1 Comment

Lots of press swirling around the impending bankruptcy of Kodak. While Kodak suffers, its long-time rival Fujifilm is doing rather well. Why? Is it innovation or is it discipline? (See March 4, 2011 Blog, post Which is the Winning Strategy? Innovation or Discipline for Part I)

At one time, Kodak was one of the most innovative and disciplined companies in the world, with a rigorous approach to manufacturing. And, discipline is more than discipline in production; discipline also is a disciplined approach to the market – recognizing AND acting on changes in market dynamics.

Kodak and Fuji both saw digital coming. Fuji acted, Kodak was complacent. (Success breeds arrogance?)

Fuji continued their film business while diversifying into other business lines. They were consistent and disciplined in their approach to new markets. They identified market opportunities, invested in exploring the new markets and when satisfied the opportunity was there, had the vision and leadership to move forward with the investment and organizational changes required to reconstruct their business model.

Kodak on the other hand, dabbled in opportunities while never making the investment and organizational changes required to adapt to the new world. They became a victim instead.

For me, as a leadership coach, this story of Kodak and Fuji, raises the following questions for CEO’s and leaders of successful businesses:

What is the equivalent of the digital camera for us?
Are we noticing when we are becoming complacent?
Are we in tune with market changes and prepared to act in a disciplined manner?
Do we have the cash or sources of capital to make the investment in diversification?
Are we willing to make the uncomfortable organizational changes necessary to diversify into new markets?

The Economist details the story of both companies in this article, “The last Kodak moment?”

Which Is The Winning Strategy? Innovation Or Discipline.

March 4, 2012 by Elisa SpainNo Comments

Lately it seems there is an abundance of books and articles advocating for one or the other. Jeffrey A. Harris, in his new book Transformative Entrepreneurs, advocates for innovation. He cites examples of Steve Jobs and Walt Disney and his findings are summarized in this recent Forbes article. Jim Collins on the other hand, in his latest book, Great by Choice, finds otherwise. In my January 22nd post “Laws of Success: The Answers May Surprise You”, I discuss Jim Collins’ findings, one of which is the companies in his most recent research are no more innovative than the comparison company. In fact, the companies he calls 10X take less risk than the comparison companies and Jim’s findings tell us is that first and foremost, the 10x companies are more disciplined.

So, as a leadership coach, I am wondering which is it, innovation or discipline? Perhaps it is both. To thrive, all companies must innovate; the challenge is what you do next. Here are some questions to consider:

Do you have a culture that inspires and reinforces innovation?
Do you have a process for capturing new ideas and turning them into concepts that are then carried forward through a product development stage gate process, i.e. is there discipline around the innovation?
How are innovations funded, are there dollars available to try out new ideas and allow for failure?

The Test Of Time, Continuous Improvement

January 29, 2012 by Elisa Spain1 Comment

All of us who have been in business awhile have either led or experienced the “methodology dejour”. We get all excited about something new we learn about and suddenly it is time to reinvent our companies around this new idea. And, then a week, or a month, or even a few days later, we are on to the next new thing.

Sometimes though, something new comes along that is able to withstand the test of time. One such model is TQM, Total Quality Management. In the early 90’s Deming introduced the TQM model to U.S. manufacturing. This model included, among other things, the Japanese concept of Kaizen (continuous improvement) and what became a popular mantra called “business process redesign”. Today, there is a lot of talk about the failures of business process redesign. Too much change introduced at one time, simply doesn’t work – upwards of 75% of business process redesign projects fail.

On the other hand, Kaizen, or simply, continuous improvement has withstood the test of time in manufacturing and across all industries.

It’s a simple concept that goes like this, intentionally and continuously look for ways to innovate and improve your business processes. As leaders, ask your people to join in and look for ways to improve the business. Success will follow.

In Vistage we call the idea dujour risk, “DAV” (“Day after Vistage”) and remind our members to take only “one thing” away from each meeting and focus on incremental change, i.e. continuous improvement. The result… Vistage members outperform their industry peers.

What are you doing today, to foster a company culture of continuous improvement?

What financial benefits have come from your continuous improvement efforts?

What metrics do you have in place to measure the results of continuous improvement efforts in your business?

Laws Of Success: The Answers May Surprise You

January 22, 2012 by Elisa SpainNo Comments

I just finished reading Jim Collins’ new book, Great by Choice and as he says, the results may surprise you; they did me.

Here’s the good news, if you, as CEO, have ambition, creativity, vision, insight, a good strategy, are innovative, possess a willingness to take risk; in short, all the typical characteristics we attribute to leaders, you can become a standout success.

However, and it’s a big however, one that certainly caused me as a leadership coach to pause. All the companies Jim Collins and his partner Morten Hansen researched, were led by CEO’s with these characteristics – the ones that thrived AND the ones that did not.

Here’s what he did find that was different about these leaders. The companies that thrive possess three common characteristics:

fanatic discipline
empirical creativity
productive paranoia

As I reflect on the great leaders I have known in my career as a leadership coach, my surprise at the results fades. The great leaders I know all share these characteristics.

Jim drives this point home in chapter 2 as he tells the story of Roald Amundsen’s and Robert Falcon Scott’s quest for the South Pole. When you understand what Amundsen did to prepare and Scott did not do, it becomes crystal clear why Amundsen was successful and Scott was not. Just as it will become clear why each of the high-performers Collins and Hansen study achieved their results.

I encourage you to read the book, and ask yourself the following questions:

Do I possess these high-performer characteristics?
What am I doing today to focus on them each day?
How might I integrate my genius and my talents to maximize my results?

The Shared Experience Of Absurdity

December 4, 2011 by Elisa Spain2 Comments

This week’s post is in honor of Michael Allosso, whose Vistage talk for CEOs and Key Executives is titled “You on Your Best Day.” Michael teaches us that the difference between a good leader and a great leader is the ability to improvise and gently push people out of their comfort zone.

In this TED talk, Charlie Todd helps us see the human connection that results from a shared experience — in this case, an absurd shared experience.

Vistage members also have shared experiences; in our case, these happen every month. As the chair and leadership coach, I regularly see the human connection that results.

I wonder about the following:

Are we searching for opportunities to create shared experiences in our companies?

What great things can we accomplish in our companies by pushing people out of their comfort zone and introducing more intentional and improvised shared experiences?