The game of chess is a metaphor for business, and for life. Seemingly simple at the most basic level, chess is in reality mind-boggling in its complexity. The focus, discipline, and skill required to play chess well are reminiscent of the same attributes that are required to succeed in business. While not every business leader plays chess, every business leader can benefit from thinking like a chess player.
I first became fascinated by chess as a youngster in the early 1970's when the quirky American prodigy Bobby Fisher defeated the reigning world champion, the Russian Boris Spassky, in their famous title match in Reykjavik, Iceland. My sister and I played for hours on end. While there have been periods when I studied and played intensively, I have never been better than an average player. But I still love the game.
In his wonderful book on the history of chess, The Immortal Game, author David Shenk says, "The exquisite interplay of the simple and the complex is hypnotic: the pieces and moves are elementary enough for any five-year-old to quickly soak up, but the board combinations are so vast that all the possible chess games could never be played-- or even known-- by a single person."
Indeed, in a chess game, after just four moves by each player, the number of possible board positions is 315 billion. Shenk says, "The total number of unique chess games is not literally an infinite number, but in practical terms, the difference is indistinguishable. It is truly beyond comprehension-- 'barely thinkable,' as one expert puts it-- and beyond human or machine capacity to play through them all."
Business, like chess, can be seemingly elementary on its surface. The Oxford English Dictionary defines business simply as "commercial activity." Those of us who are in business know that our most fundamental objective is to sell our product or service to customers at a profit. Easy, right? No, because when we delve deeper into the world of business, things quickly become more complicated.
Therefore, preparation and experience are keys to success in both business and chess. Shenk points out that Bobby Fisher supplemented his obvious aptitude for the game with thousands of hours of study. Well-known author Malcolm Gladwell talks about this essential combination of talent and preparation in his book Outliers. Ten thousand hours of practice, according to Gladwell, is what separates the Bobby Fishers of the world from other talented people.
Similarly, in business, it is those leaders who know their discipline inside and out, and who spend years gaining knowledge and hard-won experience, who will best navigate the intricacies of their competitive environment. Those leaders will win over the long haul.
One of history's famous chess players was Benjamin Franklin. He was an American founding father, as well as a diplomat, scientist, publisher, and inventor. He was also a savvy businessman. Franklin said, "The Game of Chess is not merely an idle amusement. Several very valuable qualities of the mind, useful in the course of human life, are to be acquired or strengthened by it… For life is a kind of Chess, in which we often have points to gain, and competitors or adversaries to deal with."
Franklin believed that chess sharpened his thinking, and that it taught several useful lessons. As quoted by Shenk, Franklin "asserted that the game improved a person's:
1) Foresight-- looking ahead to the long-term consequences of any action.
2) Circumspection-- surveying the entire scene, observing hidden dynamics and unseen possibilities.
3) Caution-- avoiding haste and unnecessary blunders.
4) Perseverance-- refusing to give up in dim circumstances, continually pushing to improve one's position."
There is one final way that business leaders can benefit from thinking like a chess player. Professor Dianne Horgan of Memphis State University has investigated how chess might improve various cognitive abilities. She found that, among other things, chess improves a person's self-perception.
Self-perception involves "calibration," which is the correlation between a person's perception of their own ability, and the actual level of their ability. In the population at large people generally have an overinflated view of their own abilities. Improving calibration skills-- by playing chess, for example-- significantly enhances the value of feedback. If people have an accurate idea of their own level of competence, they are more open to input from others.
I would never advocate that every business leader needs to learn how to play chess in order to succeed in the world of "commercial activity." I would argue, however, that the thinking skills utilized by chess players are the same kinds of skills that business leaders need to develop.
Business leaders need to work hard at learning their craft. They need knowledge, experience, and an in-depth technical understanding of their profession.
Business leaders need to be strategic, which involves skills like considering long-term consequences, surveying the entire scene for all possible outcomes, proceeding with caution, and sticking to goals even when the going gets tough.
Finally, business leaders need to be receptive to feedback, and to make adjustments as necessary to improve performance.
The leaders who display these qualities, whether they are actually chess players or not, stand the best chance of putting their competition into checkmate and winning the game.
Sunday, September 27, 2009
Sunday, September 13, 2009
Recharge Your Batteries
Summer is almost over. I just returned from a wonderful long weekend with family and friends on a placid little lake in western Connecticut. I came home happy, rested, and ready to go back to work. I am reminded once again of the importance of taking time to recharge one's batteries.
Recently, President Obama and his family spent time at Martha's Vineyard, that scenic and idyllic spot off the southern coast of Cape Cod. When word of the First Family's vacation plans first came out, controversy erupted. How could the chief executive be taking time off when there are so many pressing issues at hand? We need him on duty. America is fighting two wars. The economy is in recession. Workers are unemployed. We are facing crises with the environment and health care. There is so much to do.
I understand how people feel but, politics aside, can't we all agree that our commander-in-chief needs to be healthy, energized, and clear thinking in everything that he does?
Certainly, there is a lot on all of our plates. For many families facing tough economic times, a vacation is not possible right now based on personal finances. But recharging one's batteries is not achieved solely by taking time off in some remote, exotic location. We can refuel the tank every day, in simple ways, by just learning to relax and divert our attention from time to time.
In a recent interview in Harvard Business Review, Pulitzer-Prize-winning historian Doris Kearns Goodwin-- who has written several presidential biographies-- was asked about the essential qualities of a great leader. She listed a few, then said, "I would add here that one more success factor is key for great leadership, be it in business or politics, and it's one that's usually overlooked. As a leader you need to know how to relax so that you can replenish your energies for the struggles facing you tomorrow."
Dr. Goodwin went on to say, "Lincoln went to the theater about a hundred times while he was in Washington. And although he suffered from a certain melancholy, he had a tremendous sense of humor and would entertain people long into the night with his stories. Franklin Roosevelt was the same way. He had this cocktail hour every evening during World War Two when you just couldn't talk about the war. He needed to remain free from thinking about the bad things for a few hours. Or he would play with his stamps. This ability to recharge your batteries in the midst of great stress and crisis is crucial for successful leadership."
There are many other historical examples. John Kennedy loved to paint, sail, and play golf. Winston Churchill loved to paint, write books, smoke cigars, and drink scotch whisky. Harry Truman loved to take a brisk walk every day, play poker and drink bourbon whisky (anecdotal evidence aside, there is no solid data that proves that drinking whisky results in success as a leader). The current occupant of the White House is also a poker player, and enjoys golf and basketball.
There is an additional challenge these days in that we are all so intensely, immediately connected and networked that many of us feel we simply can't take time off or the earth will stop spinning without us. Or perhaps we are secretly worried that if we take time to relax we will realize the harsh reality that business, and life, will indeed go on without us. We don't want to find out the awful truth that we are not individually essential to world progress.
Doris Goodwin offers a fascinating perspective on this phenomena. She comments on how in the nineteenth century, busy as leaders were, they took time to pen lengthy letters. She says, "Looking back, the thing that's really impressive is that here were these leaders running the Civil War, and people like [Secretary of State William] Seward still had time to meditate on the day's events and to write these long letters to his wife at night. These were the days of no television. Leaders weren't worried about cable news or their BlackBerrys. They weren't multitasking; they had time to reflect. It's a luxury many leaders just don't have today, and that's a real loss."
When was the last time you truly paused to take a breath and contemplate life? That you read a fun book just to escape? That you exercised or got outside for some fresh air and sunshine? That you noticed nature's awesome beauty? That you enjoyed quality time with your family or friends? That you actually wrote a letter out in longhand and sent it to someone via snail mail? That you pursued a hobby that enables you to become so focused on what you are doing that you are just in the moment for a little while, unaware of the trials and tribulations of the world around you?
If the answer is "not recently," then please take a serious look at what you need to do to arrange your life so that these things can happen for you from time to time. You will be a better person for it and, as a result of that, also a better leader.
In the end, we all occasionally need to take the advice of that famous and wise philosopher, Tommy Bahama, who reminds us, "Relax…"
Recently, President Obama and his family spent time at Martha's Vineyard, that scenic and idyllic spot off the southern coast of Cape Cod. When word of the First Family's vacation plans first came out, controversy erupted. How could the chief executive be taking time off when there are so many pressing issues at hand? We need him on duty. America is fighting two wars. The economy is in recession. Workers are unemployed. We are facing crises with the environment and health care. There is so much to do.
I understand how people feel but, politics aside, can't we all agree that our commander-in-chief needs to be healthy, energized, and clear thinking in everything that he does?
Certainly, there is a lot on all of our plates. For many families facing tough economic times, a vacation is not possible right now based on personal finances. But recharging one's batteries is not achieved solely by taking time off in some remote, exotic location. We can refuel the tank every day, in simple ways, by just learning to relax and divert our attention from time to time.
In a recent interview in Harvard Business Review, Pulitzer-Prize-winning historian Doris Kearns Goodwin-- who has written several presidential biographies-- was asked about the essential qualities of a great leader. She listed a few, then said, "I would add here that one more success factor is key for great leadership, be it in business or politics, and it's one that's usually overlooked. As a leader you need to know how to relax so that you can replenish your energies for the struggles facing you tomorrow."
Dr. Goodwin went on to say, "Lincoln went to the theater about a hundred times while he was in Washington. And although he suffered from a certain melancholy, he had a tremendous sense of humor and would entertain people long into the night with his stories. Franklin Roosevelt was the same way. He had this cocktail hour every evening during World War Two when you just couldn't talk about the war. He needed to remain free from thinking about the bad things for a few hours. Or he would play with his stamps. This ability to recharge your batteries in the midst of great stress and crisis is crucial for successful leadership."
There are many other historical examples. John Kennedy loved to paint, sail, and play golf. Winston Churchill loved to paint, write books, smoke cigars, and drink scotch whisky. Harry Truman loved to take a brisk walk every day, play poker and drink bourbon whisky (anecdotal evidence aside, there is no solid data that proves that drinking whisky results in success as a leader). The current occupant of the White House is also a poker player, and enjoys golf and basketball.
There is an additional challenge these days in that we are all so intensely, immediately connected and networked that many of us feel we simply can't take time off or the earth will stop spinning without us. Or perhaps we are secretly worried that if we take time to relax we will realize the harsh reality that business, and life, will indeed go on without us. We don't want to find out the awful truth that we are not individually essential to world progress.
Doris Goodwin offers a fascinating perspective on this phenomena. She comments on how in the nineteenth century, busy as leaders were, they took time to pen lengthy letters. She says, "Looking back, the thing that's really impressive is that here were these leaders running the Civil War, and people like [Secretary of State William] Seward still had time to meditate on the day's events and to write these long letters to his wife at night. These were the days of no television. Leaders weren't worried about cable news or their BlackBerrys. They weren't multitasking; they had time to reflect. It's a luxury many leaders just don't have today, and that's a real loss."
When was the last time you truly paused to take a breath and contemplate life? That you read a fun book just to escape? That you exercised or got outside for some fresh air and sunshine? That you noticed nature's awesome beauty? That you enjoyed quality time with your family or friends? That you actually wrote a letter out in longhand and sent it to someone via snail mail? That you pursued a hobby that enables you to become so focused on what you are doing that you are just in the moment for a little while, unaware of the trials and tribulations of the world around you?
If the answer is "not recently," then please take a serious look at what you need to do to arrange your life so that these things can happen for you from time to time. You will be a better person for it and, as a result of that, also a better leader.
In the end, we all occasionally need to take the advice of that famous and wise philosopher, Tommy Bahama, who reminds us, "Relax…"
Sunday, August 30, 2009
Know Your Business, Employees, and Customers
In 1994 the husband and wife team of Dewey Johnson and Wanda Oland purchased a rough and tumble saloon in Apple Valley, Minnesota, that had metal doors so that glass wouldn't break if anyone got forcefully tossed out into the parking lot. Over the past fifteen years-- through hard work, determination, and a passion for the business-- Wanda and Dewey have transformed that former rowdy watering hole into Rascal's, one of Apple Valley's most popular family restaurants.
Not only have Wanda and Dewey adapted and demonstrated flexibility in building their business over the last-decade-and-a-half, they have shown particular savvy in navigating through the current recession. Wanda and Dewey have a strategy for success that can be summed up as follows: know your business, know your employees, know your customers.
Wanda and Dewey know their business. Wanda has spent her entire professional career in restaurants. Dewey's background is as a general contractor, but much of what he learned in that discipline translates to the restaurant industry.
When business started to slide with the economy, Wanda and Dewey applied the principle, "If you want to find out what's happening with your business, work the back room." Dewey spent months in the kitchen working hard, talking with employees, and discovering potential efficiencies.
For example, Dewey built a laundry room and Rascal's now washes its own linens at significant savings. The couple decided to shop different vendors for such things as paper, chemicals, groceries and credit card processing, and realized additional savings. Wanda says, "We took a good hard look at everything."
Wanda and Dewey have gone through three significant remodels, and Dewey has in effect acted as the general contractor. Dewey hand-built every table in Rascal's. He custom built the bar with thick maple planks formerly used as bowling lanes. Yes, bowling lanes. He has raised and lowered flooring and installed windows. He put in auto-paper towel dispensers because they are more efficient. He has done it all with the physical facility.
The couple went to a part-time bookkeeper and because margins are small, Wanda pays extremely close attention to every penny that comes in and goes out. She says, "Everything we touch matters." All a part of knowing your business.
Wanda and Dewey know their employees too. A number of their people, including kitchen help, servers, and at least one bartender, have been with them from the beginning. How do they achieve such loyalty? They talk with and listen to their folks, and they treat them right.
With the recession, like countless other businesses, Rascal's watches labor hours closely. But instead of releasing people or reducing hourly pay, Wanda and Dewey developed a flexible schedule that allows employees to swap hours and take time off when they need it. They have not backfilled some positions. Wanda does her best to manage labor efficiently based on the flow of customer traffic and to spread out available hours fairly among the staff.
From a morale standpoint, Rascals' employees see the owners there virtually every day, dressed in blue jeans and ready to work. Wanda says, "Don't ever ask an employee to do something that you're not willing to do yourself."
Finally and perhaps most importantly, Wanda and Dewey know their customers (Wanda calls them their "guests"). They understand their guests expect high quality food and excellent service, and in these two areas nothing has changed. Many menu items are home-made. They make their own dressings and sauces. They fillet their own walleye, always fresh, never frozen. They whip up their own batter. They boil and mash their own potatoes. Portion sizes have not changed.
During the down economy, Wanda and Dewey figured their guests would appreciate an opportunity to still go out to eat, but save money. They devised a daily calendar-- featuring enticements like inexpensive burgers, free video games and musical entertainment, or a kids-eat-free from 10 to 2 deal on Sundays-- that encourages people to come out and enjoy themselves any day of the week without spending too much.
They have also tinkered with the menu, focusing on foods that remind people of good old-fashioned home cooking. Guests can now eat meatloaf, turkey, or pot roast at Rascal's.
Rascal's offers catering, serving corporate groups, weddings, local schools, and others. Rascal's hosts fundraisers, most recently an event in support of the Courage Center. In short, Rascal's does whatever is necessary to market their product and reward-- and hopefully build upon-- a loyal guest base.
Survival in the current economy is a struggle even for the healthiest of businesses. But those organizations that understand the business they are in, treat their employees with respect, and focus continually on the needs of their customers will do best. Wanda Oland says it well: "We touch a lot of lives. We'll make it through and we'll be stronger for it."
Two final but important notes: The metal doors are gone, thanks to Dewey Johnson. And I can personally testify that Rascal's homemade meatloaf is to die for. What could be better during a recession than comfort food?
Not only have Wanda and Dewey adapted and demonstrated flexibility in building their business over the last-decade-and-a-half, they have shown particular savvy in navigating through the current recession. Wanda and Dewey have a strategy for success that can be summed up as follows: know your business, know your employees, know your customers.
Wanda and Dewey know their business. Wanda has spent her entire professional career in restaurants. Dewey's background is as a general contractor, but much of what he learned in that discipline translates to the restaurant industry.
When business started to slide with the economy, Wanda and Dewey applied the principle, "If you want to find out what's happening with your business, work the back room." Dewey spent months in the kitchen working hard, talking with employees, and discovering potential efficiencies.
For example, Dewey built a laundry room and Rascal's now washes its own linens at significant savings. The couple decided to shop different vendors for such things as paper, chemicals, groceries and credit card processing, and realized additional savings. Wanda says, "We took a good hard look at everything."
Wanda and Dewey have gone through three significant remodels, and Dewey has in effect acted as the general contractor. Dewey hand-built every table in Rascal's. He custom built the bar with thick maple planks formerly used as bowling lanes. Yes, bowling lanes. He has raised and lowered flooring and installed windows. He put in auto-paper towel dispensers because they are more efficient. He has done it all with the physical facility.
The couple went to a part-time bookkeeper and because margins are small, Wanda pays extremely close attention to every penny that comes in and goes out. She says, "Everything we touch matters." All a part of knowing your business.
Wanda and Dewey know their employees too. A number of their people, including kitchen help, servers, and at least one bartender, have been with them from the beginning. How do they achieve such loyalty? They talk with and listen to their folks, and they treat them right.
With the recession, like countless other businesses, Rascal's watches labor hours closely. But instead of releasing people or reducing hourly pay, Wanda and Dewey developed a flexible schedule that allows employees to swap hours and take time off when they need it. They have not backfilled some positions. Wanda does her best to manage labor efficiently based on the flow of customer traffic and to spread out available hours fairly among the staff.
From a morale standpoint, Rascals' employees see the owners there virtually every day, dressed in blue jeans and ready to work. Wanda says, "Don't ever ask an employee to do something that you're not willing to do yourself."
Finally and perhaps most importantly, Wanda and Dewey know their customers (Wanda calls them their "guests"). They understand their guests expect high quality food and excellent service, and in these two areas nothing has changed. Many menu items are home-made. They make their own dressings and sauces. They fillet their own walleye, always fresh, never frozen. They whip up their own batter. They boil and mash their own potatoes. Portion sizes have not changed.
During the down economy, Wanda and Dewey figured their guests would appreciate an opportunity to still go out to eat, but save money. They devised a daily calendar-- featuring enticements like inexpensive burgers, free video games and musical entertainment, or a kids-eat-free from 10 to 2 deal on Sundays-- that encourages people to come out and enjoy themselves any day of the week without spending too much.
They have also tinkered with the menu, focusing on foods that remind people of good old-fashioned home cooking. Guests can now eat meatloaf, turkey, or pot roast at Rascal's.
Rascal's offers catering, serving corporate groups, weddings, local schools, and others. Rascal's hosts fundraisers, most recently an event in support of the Courage Center. In short, Rascal's does whatever is necessary to market their product and reward-- and hopefully build upon-- a loyal guest base.
Survival in the current economy is a struggle even for the healthiest of businesses. But those organizations that understand the business they are in, treat their employees with respect, and focus continually on the needs of their customers will do best. Wanda Oland says it well: "We touch a lot of lives. We'll make it through and we'll be stronger for it."
Two final but important notes: The metal doors are gone, thanks to Dewey Johnson. And I can personally testify that Rascal's homemade meatloaf is to die for. What could be better during a recession than comfort food?
Sunday, August 16, 2009
Share Knowledge and Information in All Directions
I spoke with an executive recently who told me about the corporate culture in his company. Secrecy, withholding critical information, and inconsistent communication were common practice. My friend was frustrated to no end. Organizations that fail to share important knowledge and information up, down and across struggle in the long run.
No organization achieves perfection with regard to information sharing, because human judgment is involved. Obviously, some data is not appropriate for wide distribution. Sometimes, confidentiality is a necessity. To communicate well requires time, focus and effort, which are often in short supply.
Nevertheless some companies, such as Pixar Animation Studios, excel as learning organizations that openly and honestly share knowledge. Pixar is one of the most successful film production companies of all time. The "fraternity of geeks" who work at Pixar succeeded in transforming hand-drawn cel animation to computer-generated 3-D graphics. The string of movies thus created, starting with Toy Story in 1995, have been hugely popular and critically acclaimed.
Through it all, a corporate culture that highly values information-sharing at every level within the organization has enabled Pixar to continue to produce one hit after another.
The September 2008 issue of Harvard Business Review cited several reasons for Pixar's sustained creative success. Among other things, the company espouses a philosophy that "we are smarter than me." The company believes that everyone needs to be involved in the creative process and, to that end, communication throughout all levels is imperative.
Next, Pixar works to hire good people, to support them, and to foster an environment where trust and respect are a given. More specifically, those good people are encouraged to take risks, knowing that they will inevitably make mistakes. Talented people will learn from failures and use their hard-earned discoveries to move forward more effectively on subsequent projects.
Finally, Pixar's culture is flat, collegial and extremely peer-oriented. Hierarchies are out, everyone is treated with respect, and both honest feedback and careful listening are encouraged and rewarded.
One very specific and practical example of the way information-sharing plays itself out is Pixar University. Every employee is encouraged to spend as many as four hours a week furthering his/her education. Pixar University offers more than a hundred courses, from filmmaking and writing to sculpture, painting and drawing.
Randy Nelson, dean of Pixar University, says, "We offer the equivalent of an undergraduate education in fine arts and the art of filmmaking." And this is not just fun time or a way to avoid work, but rather a critical job expectation. Nelson says, "This is part of everyone's work. We're all filmmakers here. We all have access to the same curriculum. In class, people from every level sit right next to our directors and the president of the company."
Pixar University epitomizes the concept of broad knowledge-sharing. Nelson asserts, "The skills we develop are skills we need everywhere in the organization. Why teach drawing to accountants? Because drawing class doesn't just teach people to draw. It teaches them to be more observant. There's no company on earth that wouldn't benefit from having people become more observant."
At Pixar University, employees are also encouraged to try new things, take risks, and learn from mistakes. The University crest says in Latin: "Alienus Non Diutius," which translates to "alone no longer." Says Nelson, "It's the heart of our model, giving people opportunities to fail together and to recover from mistakes together."
In addition to excellent financial results, Pixar has earned countless industry accolades for its work, including 22 Academy Awards, four Golden Globes, and three Grammys. Every Pixar film produced since 2001 was nominated for a Best Animated Feature Oscar and four of those movies, Finding Nemo, The Incredibles, Ratatouille, and WALL-E, came home with the little golden statuette.
Pixar Animation Studios provides an incredibly compelling example of an organization that sees the critical value in gathering information from a diverse variety of sources and then sharing it openly up, down and across the company. Those individuals who hold information closely would not survive in such a culture. Pixar's reputation as a place where creative genius thrives is indeed well-earned.
Companies like Pixar that set themselves up as learning organizations and follow through on that commitment tend to be successful. Other organizations-- where secrecy, lack of clarity, and generally poor communication all around are the rule-- suffer in the end.
Where does your organization or team sit on the communication spectrum? Do you openly share important knowledge and information in all directions? Does your culture foster honest feedback and careful listening? What do you personally contribute from a communication standpoint?
A human or animal organism needs circulation of blood and nutrients to all parts of the body in order to have full physical health. Similarly, freely flowing knowledge and information are the "lifeblood" of any organization that hopes to achieve robust business outcomes.
No organization achieves perfection with regard to information sharing, because human judgment is involved. Obviously, some data is not appropriate for wide distribution. Sometimes, confidentiality is a necessity. To communicate well requires time, focus and effort, which are often in short supply.
Nevertheless some companies, such as Pixar Animation Studios, excel as learning organizations that openly and honestly share knowledge. Pixar is one of the most successful film production companies of all time. The "fraternity of geeks" who work at Pixar succeeded in transforming hand-drawn cel animation to computer-generated 3-D graphics. The string of movies thus created, starting with Toy Story in 1995, have been hugely popular and critically acclaimed.
Through it all, a corporate culture that highly values information-sharing at every level within the organization has enabled Pixar to continue to produce one hit after another.
The September 2008 issue of Harvard Business Review cited several reasons for Pixar's sustained creative success. Among other things, the company espouses a philosophy that "we are smarter than me." The company believes that everyone needs to be involved in the creative process and, to that end, communication throughout all levels is imperative.
Next, Pixar works to hire good people, to support them, and to foster an environment where trust and respect are a given. More specifically, those good people are encouraged to take risks, knowing that they will inevitably make mistakes. Talented people will learn from failures and use their hard-earned discoveries to move forward more effectively on subsequent projects.
Finally, Pixar's culture is flat, collegial and extremely peer-oriented. Hierarchies are out, everyone is treated with respect, and both honest feedback and careful listening are encouraged and rewarded.
One very specific and practical example of the way information-sharing plays itself out is Pixar University. Every employee is encouraged to spend as many as four hours a week furthering his/her education. Pixar University offers more than a hundred courses, from filmmaking and writing to sculpture, painting and drawing.
Randy Nelson, dean of Pixar University, says, "We offer the equivalent of an undergraduate education in fine arts and the art of filmmaking." And this is not just fun time or a way to avoid work, but rather a critical job expectation. Nelson says, "This is part of everyone's work. We're all filmmakers here. We all have access to the same curriculum. In class, people from every level sit right next to our directors and the president of the company."
Pixar University epitomizes the concept of broad knowledge-sharing. Nelson asserts, "The skills we develop are skills we need everywhere in the organization. Why teach drawing to accountants? Because drawing class doesn't just teach people to draw. It teaches them to be more observant. There's no company on earth that wouldn't benefit from having people become more observant."
At Pixar University, employees are also encouraged to try new things, take risks, and learn from mistakes. The University crest says in Latin: "Alienus Non Diutius," which translates to "alone no longer." Says Nelson, "It's the heart of our model, giving people opportunities to fail together and to recover from mistakes together."
In addition to excellent financial results, Pixar has earned countless industry accolades for its work, including 22 Academy Awards, four Golden Globes, and three Grammys. Every Pixar film produced since 2001 was nominated for a Best Animated Feature Oscar and four of those movies, Finding Nemo, The Incredibles, Ratatouille, and WALL-E, came home with the little golden statuette.
Pixar Animation Studios provides an incredibly compelling example of an organization that sees the critical value in gathering information from a diverse variety of sources and then sharing it openly up, down and across the company. Those individuals who hold information closely would not survive in such a culture. Pixar's reputation as a place where creative genius thrives is indeed well-earned.
Companies like Pixar that set themselves up as learning organizations and follow through on that commitment tend to be successful. Other organizations-- where secrecy, lack of clarity, and generally poor communication all around are the rule-- suffer in the end.
Where does your organization or team sit on the communication spectrum? Do you openly share important knowledge and information in all directions? Does your culture foster honest feedback and careful listening? What do you personally contribute from a communication standpoint?
A human or animal organism needs circulation of blood and nutrients to all parts of the body in order to have full physical health. Similarly, freely flowing knowledge and information are the "lifeblood" of any organization that hopes to achieve robust business outcomes.
Sunday, August 2, 2009
Great Teams Never Give Up
Great teams never give up. In business, as in sports or any other human endeavor, the very best teams simply refuse to be defeated.
I was reminded of this fact several years ago when I had the honor to coach my daughter Lucia and her 3rd and 4th grade peers in basketball. Basketball, like business, is a fast-paced, rough and tumble game that involves lots of strategy and, in order to win, requires great skill and determination from its participants. At least at the highest levels of the sport, this is true.
But for Luci and her pals practices consisted mostly of social time, laughing, doing each other's hair, taking bathroom breaks together en masse, and some basketball. I tried to teach basic fundamentals, with a focus on teamwork. They took a vote and decided to call themselves the "Hot Peppers." I was not crazy about this team name, but went along. Did I mention the laughter?
This was a middling team, at best. During the regular season we might have won a couple more games than we lost. No one predicted greatness for this team.
But in the annual year-end tournament that determines the overall league champion, something came over the Peppers. They pulled together as a unit and demonstrated, almost heroically, that great teams never give up.
There was a team that had dominated the schedule all year long. This team had several girls who were big, strong and skilled. This team had gone undefeated in the regular season. Somehow the Peppers got through the preliminary rounds to face this team in the championship game.
I knew we were up against it, but wasn't sure if the girls knew. I did not want to invoke the Holy Bible and cite David and Goliath but, trust me, my thoughts went there. Instead, I recalled the recent Super Bowl, where a lowly underdog had defeated the mighty favorite.
"Did you girls see the Super Bowl?" "Yes." "Who won?" "The team that wasn't supposed to." "Right."
The Peppers went out and fought hard. They were behind most of the game. But suddenly, the other team started to play not to lose. They sat back on their heels. They made mistakes. They even panicked a bit near the end. The Peppers came back.
Pretty soon, with no time left, one of our little gals stepped up to the free throw line, score tied 15-15, with a chance to win the game. First shot missed. Second shot hit the back rim, bounced straight up, and came down through the hoop. Pandemonium erupted. The Peppers had triumphed. Dairy Queen beckoned.
What are the ingredients that go into creating a team with this kind of capability? First, leadership. And not just leadership of the obvious kind, as important as that is, from the head coach or the team leader in business. Leadership can come from any person, at any time. Our final couple of baskets came from one of our best athletes, who had played a quiet game up to that point. Isn't it amazing how your top performers always seem to come through, demonstrating leadership in the clutch?
The second ingredient is skill. Several girls on the Peppers, silliness aside, could put the rock in the hole when they felt like it. This is where hard work, repetition, and practice together as a unit come in. These are essential fundamentals in business, just as they are in sports.
Finally, there is the most important ingredient. This one is the most difficult to describe. Call it team chemistry, call it trust and confidence, call it swagger, call it what you will. A truly great team believes in itself in a way that is palpable. You can see it in the way such a team carries itself, interacts together and ultimately performs.
We are in difficult times right now, but teams that possess that magical something will survive the trial. They will emerge stronger than they were before.
What will your team do in this economy? Will you play not to lose? Will you let events dictate what happens to you? Will you sit back? Will panic set in? Or will you look each other confidently in the eye, take control, count on your leaders, work hard together, trust each other, and snatch victory from the jaws of defeat? This decision cannot be postponed.
In 1941 during the throes of World War Two, British Prime Minister Winston Churchill addressed the students at Harrow School, his alma mater, outside London. He said, "Never give in. Never give in. Never, never, never, never- in nothing great or small, large or petty- never give in…" That was good advice for young people during dark days, but isn't it interesting how young people can sometimes teach us too?
Occasionally, when I face a moment of truth in today's tumultuous world I think back, smile, and whisper to myself, "Remember the Peppers. Never give up."
I was reminded of this fact several years ago when I had the honor to coach my daughter Lucia and her 3rd and 4th grade peers in basketball. Basketball, like business, is a fast-paced, rough and tumble game that involves lots of strategy and, in order to win, requires great skill and determination from its participants. At least at the highest levels of the sport, this is true.
But for Luci and her pals practices consisted mostly of social time, laughing, doing each other's hair, taking bathroom breaks together en masse, and some basketball. I tried to teach basic fundamentals, with a focus on teamwork. They took a vote and decided to call themselves the "Hot Peppers." I was not crazy about this team name, but went along. Did I mention the laughter?
This was a middling team, at best. During the regular season we might have won a couple more games than we lost. No one predicted greatness for this team.
But in the annual year-end tournament that determines the overall league champion, something came over the Peppers. They pulled together as a unit and demonstrated, almost heroically, that great teams never give up.
There was a team that had dominated the schedule all year long. This team had several girls who were big, strong and skilled. This team had gone undefeated in the regular season. Somehow the Peppers got through the preliminary rounds to face this team in the championship game.
I knew we were up against it, but wasn't sure if the girls knew. I did not want to invoke the Holy Bible and cite David and Goliath but, trust me, my thoughts went there. Instead, I recalled the recent Super Bowl, where a lowly underdog had defeated the mighty favorite.
"Did you girls see the Super Bowl?" "Yes." "Who won?" "The team that wasn't supposed to." "Right."
The Peppers went out and fought hard. They were behind most of the game. But suddenly, the other team started to play not to lose. They sat back on their heels. They made mistakes. They even panicked a bit near the end. The Peppers came back.
Pretty soon, with no time left, one of our little gals stepped up to the free throw line, score tied 15-15, with a chance to win the game. First shot missed. Second shot hit the back rim, bounced straight up, and came down through the hoop. Pandemonium erupted. The Peppers had triumphed. Dairy Queen beckoned.
What are the ingredients that go into creating a team with this kind of capability? First, leadership. And not just leadership of the obvious kind, as important as that is, from the head coach or the team leader in business. Leadership can come from any person, at any time. Our final couple of baskets came from one of our best athletes, who had played a quiet game up to that point. Isn't it amazing how your top performers always seem to come through, demonstrating leadership in the clutch?
The second ingredient is skill. Several girls on the Peppers, silliness aside, could put the rock in the hole when they felt like it. This is where hard work, repetition, and practice together as a unit come in. These are essential fundamentals in business, just as they are in sports.
Finally, there is the most important ingredient. This one is the most difficult to describe. Call it team chemistry, call it trust and confidence, call it swagger, call it what you will. A truly great team believes in itself in a way that is palpable. You can see it in the way such a team carries itself, interacts together and ultimately performs.
We are in difficult times right now, but teams that possess that magical something will survive the trial. They will emerge stronger than they were before.
What will your team do in this economy? Will you play not to lose? Will you let events dictate what happens to you? Will you sit back? Will panic set in? Or will you look each other confidently in the eye, take control, count on your leaders, work hard together, trust each other, and snatch victory from the jaws of defeat? This decision cannot be postponed.
In 1941 during the throes of World War Two, British Prime Minister Winston Churchill addressed the students at Harrow School, his alma mater, outside London. He said, "Never give in. Never give in. Never, never, never, never- in nothing great or small, large or petty- never give in…" That was good advice for young people during dark days, but isn't it interesting how young people can sometimes teach us too?
Occasionally, when I face a moment of truth in today's tumultuous world I think back, smile, and whisper to myself, "Remember the Peppers. Never give up."
Sunday, July 19, 2009
Appreciate the Power of Words
As business leaders we often fail to fully appreciate the ability we possess, for both good and ill, to influence people and situations through the simple choice of the words we use. Our teams are listening closely to what we say. The very best communicators select their words carefully and work hard to ensure that followers understand their meaning. This necessity to speak and write clearly is a truly basic leadership objective, but ever so difficult to consistently execute.
Last week I was honored to take a group of executives through a leadership seminar at the Gettysburg battlefield in Pennsylvania. At the end of our day-long tour of that sacred place, one of the participants read Abraham Lincoln's Gettysburg Address near the spot where Lincoln delivered it at the National Cemetery in November 1863. As she read that beautiful little speech- only 272 words long- I was reminded of the power of an idea well expressed to move people to think differently and, sometimes, change the world.
Lincoln had less than a year of formal schooling but he read constantly from an early age in an effort to educate himself. He became a master communicator whose innate yet carefully honed abilities as a story-teller and humorist enabled him to reach and teach ordinary people in unforgettable fashion. His deep study of the Holy Bible and Shakespeare influenced the lovely cadences of his speeches.
Lincoln's masterpiece, the Gettysburg Address, forever changed the way Americans think of themselves. He explained the meaning of the sacrifice of so many lives on the battlefield just a few months prior. He asserted the Declaration of Independence and its central idea- equality- as a matter of founding law. The Civil War, Lincoln told us, was the great struggle around and testing of this new principle. As historian Gary Wills said, "By accepting the Gettysburg Address, its concept of a single people dedicated to a proposition, we have been changed. Because of it, we live in a different America."
Few people, even among great historical figures, possess Abraham Lincoln's gift for language. Of speeches that compare with the Gettysburg Address, for me, only the inspirational words of Dr. Martin Luther King Jr. come to mind, delivered on the steps of the Lincoln Memorial in August 1963, telling his countrymen: "I have a dream today…"
So what does that leave for those of us who are mere mortals? For those of us who often get tangled in our own syntax? For those of us who dread having to put our thoughts down on paper?
There is a popular historical myth that Lincoln penned the Gettysburg Address on the back of an envelope as he rode the train from Washington D.C. to Pennsylvania. To the contrary, the speech was carefully composed beforehand at the White House. He wrote and rewrote, revising the speech even as late as the morning of the day it was to be delivered. Lincoln was incredibly particular in his choice of words, and he worked hard to get the message just right. He knew that his followers, and even future generations, would be paying close attention. In that way, he was a teacher to all of us who would aspire to be leaders who communicate well.
With written communication, take the time to be thoughtful. Who is your intended audience? What message do you want to convey? How can you write that piece- whether a short e-mail or a full-blown speech- in the simplest, most concise way, yet still get your point across (remember Lincoln's 272 words)?
Nothing is more frustrating for a team of people than to read something their boss or colleague has produced that causes confusion. Credibility is lost and time is wasted. Proofread what you write. Better yet, have someone that you trust check your work. Be open to suggestions and make changes accordingly. Like Lincoln did, practice your writing. As with any other skill, writing ability can be developed over time with effort, repetition and feedback.
The spoken word can prove more difficult because we frequently don't have time to be as reflective as we might with a writing assignment. We are often called upon to give an opinion quickly without the benefit of all the information we need to make a judgment. Still, the best communicators are thoughtful in speech as well.
Take a pause before you speak. Collect your thoughts. Consider the audience. It's okay to acknowledge what you don't know and take time to do some research. Gather data. Ask good questions. Select your words. Deliver them well. Confirm understanding.
As always, the old saying holds true: "Talk is cheap, but whisky costs money." Words without appropriate and consistent actions to back them up are mere words. With that said, leadership begins with words. Especially in the difficult economic environment in which we all live and work, anxious business teams are keenly in tune with what leadership is saying. So take the opportunity to be thoughtful with your words. The future of your organization may depend on it.
Last week I was honored to take a group of executives through a leadership seminar at the Gettysburg battlefield in Pennsylvania. At the end of our day-long tour of that sacred place, one of the participants read Abraham Lincoln's Gettysburg Address near the spot where Lincoln delivered it at the National Cemetery in November 1863. As she read that beautiful little speech- only 272 words long- I was reminded of the power of an idea well expressed to move people to think differently and, sometimes, change the world.
Lincoln had less than a year of formal schooling but he read constantly from an early age in an effort to educate himself. He became a master communicator whose innate yet carefully honed abilities as a story-teller and humorist enabled him to reach and teach ordinary people in unforgettable fashion. His deep study of the Holy Bible and Shakespeare influenced the lovely cadences of his speeches.
Lincoln's masterpiece, the Gettysburg Address, forever changed the way Americans think of themselves. He explained the meaning of the sacrifice of so many lives on the battlefield just a few months prior. He asserted the Declaration of Independence and its central idea- equality- as a matter of founding law. The Civil War, Lincoln told us, was the great struggle around and testing of this new principle. As historian Gary Wills said, "By accepting the Gettysburg Address, its concept of a single people dedicated to a proposition, we have been changed. Because of it, we live in a different America."
Few people, even among great historical figures, possess Abraham Lincoln's gift for language. Of speeches that compare with the Gettysburg Address, for me, only the inspirational words of Dr. Martin Luther King Jr. come to mind, delivered on the steps of the Lincoln Memorial in August 1963, telling his countrymen: "I have a dream today…"
So what does that leave for those of us who are mere mortals? For those of us who often get tangled in our own syntax? For those of us who dread having to put our thoughts down on paper?
There is a popular historical myth that Lincoln penned the Gettysburg Address on the back of an envelope as he rode the train from Washington D.C. to Pennsylvania. To the contrary, the speech was carefully composed beforehand at the White House. He wrote and rewrote, revising the speech even as late as the morning of the day it was to be delivered. Lincoln was incredibly particular in his choice of words, and he worked hard to get the message just right. He knew that his followers, and even future generations, would be paying close attention. In that way, he was a teacher to all of us who would aspire to be leaders who communicate well.
With written communication, take the time to be thoughtful. Who is your intended audience? What message do you want to convey? How can you write that piece- whether a short e-mail or a full-blown speech- in the simplest, most concise way, yet still get your point across (remember Lincoln's 272 words)?
Nothing is more frustrating for a team of people than to read something their boss or colleague has produced that causes confusion. Credibility is lost and time is wasted. Proofread what you write. Better yet, have someone that you trust check your work. Be open to suggestions and make changes accordingly. Like Lincoln did, practice your writing. As with any other skill, writing ability can be developed over time with effort, repetition and feedback.
The spoken word can prove more difficult because we frequently don't have time to be as reflective as we might with a writing assignment. We are often called upon to give an opinion quickly without the benefit of all the information we need to make a judgment. Still, the best communicators are thoughtful in speech as well.
Take a pause before you speak. Collect your thoughts. Consider the audience. It's okay to acknowledge what you don't know and take time to do some research. Gather data. Ask good questions. Select your words. Deliver them well. Confirm understanding.
As always, the old saying holds true: "Talk is cheap, but whisky costs money." Words without appropriate and consistent actions to back them up are mere words. With that said, leadership begins with words. Especially in the difficult economic environment in which we all live and work, anxious business teams are keenly in tune with what leadership is saying. So take the opportunity to be thoughtful with your words. The future of your organization may depend on it.
Sunday, July 5, 2009
Seek Honest Feedback
Most of us intellectually grasp the importance for success in business of giving and receiving honest feedback. Why do so few of us do it well? Because it is difficult.
Many of us are averse to hurting someone's feelings and so are reluctant to deliver the full truth as we see it. We are also generally loath to receive feedback ourselves. It can be embarrassing and unpleasant. How many people (both supervisors and employees) actually enjoy the annual review process, which is all about feedback? Not many that I have met.
With all that said, I am still struck at how often in my ten-year career in human resources I came across even very senior leaders who would not give straightforward feedback when they should have, nor were they at all interested in what anyone had to say about them either. This fundamental unwillingness to tell and/or hear the truth costs organizations dearly over time.
Meg Whitman, during her decade-long run as CEO of online trading behemoth eBay, provided a dramatic example of a leader who not only sought honest feedback, but could not function without it. She listened carefully, mostly to her customers but also to anyone else who offered a useful point of view, and used what she learned to create a unique and powerful success story.
Whitman came aboard as CEO in March of 1998. Any number of skeptics felt that she was not qualified to run eBay for lack of technical expertise. She quickly demonstrated her willingness to roll up her sleeves and learn. In mid-1999, the eBay site crashed for 22 hours, and weeks of uncertainty and instability followed. Whitman sat through endless technical discussions to get at root causes, pulled all-nighters with the team and, when she did sleep, did so on a cot in the office. The problems were fixed and Meg Whitman impressed everyone, including her detractors, by acknowledging what she did not know and working to educate herself.
Whitman was also quick to credit eBay's success to its enormous community of buyers and sellers, who in essence run the business by determining which transactions will take place, and by managing inventory and shipping. The power of the business model, said Whitman, "is in the community of users who have built eBay."
Whitman spent considerable time monitoring feedback from buyers and sellers by perusing discussion boards. She said, "The great thing about running this company is that you know immediately what your customers think." She organized annual member conferences that brought thousands of eBay customers together to swap ideas and learn how to more effectively use the site. She spent time during these events on the floor interacting with as many customers as possible.
Numerous sellers have been able to make a handsome living trading on eBay full-time, and Whitman enjoyed interacting with them. Whitman declared, "Actually, most of these sellers know more about eBay than [eBay] employees. They use it every single day. They're the experts... The businesses that have been built on this platform are remarkable."
Whitman oversaw explosive expansion at eBay. In 2002, for example, revenues rose 62% to $1.1 billion, with an earnings jump of 172% to $249 million. By the time Whitman resigned her position in 2008, eBay had 15,000 employees, just under $8 billion in revenue, and 300 million registered users.
Meg Whitman was honored as Fortune magazine's most powerful woman in business in both 2004 and 2005. Much of what she accomplished can be attributed to her desire to hear what people were telling her, learn from it, and take appropriate action based on that new knowledge.
As a leader, if you arrive at a point where you lose interest in receiving feedback- assuming you had interest in the first place- or you say you want feedback but create an environment that is clearly not safe for providing it, you cannot succeed over the long haul.
Good leaders foster a culture in which it is okay to speak up, even if the message might be painful. The very best leaders not only accept feedback but actively, even manically, seek it out. They could not function without the information they receive, virtually always from multiple sources. It is like the air they breathe. They use that data to drive change in themselves and their organizations.
Meg Whitman is a shining example of just such a leader. She constantly sifted through countless bits of information, especially from her customers, the buyers and sellers who were foundational to eBay's success. She used what she learned to create one of corporate America's all-time growth stories.
Two final questions are critical: 1) Do you have someone in your professional life- at least one person- that pushes you and provides you with genuinely honest feedback? If yes, good for you; 2) If the answer is no, why not and what will you do about it?
Many of us are averse to hurting someone's feelings and so are reluctant to deliver the full truth as we see it. We are also generally loath to receive feedback ourselves. It can be embarrassing and unpleasant. How many people (both supervisors and employees) actually enjoy the annual review process, which is all about feedback? Not many that I have met.
With all that said, I am still struck at how often in my ten-year career in human resources I came across even very senior leaders who would not give straightforward feedback when they should have, nor were they at all interested in what anyone had to say about them either. This fundamental unwillingness to tell and/or hear the truth costs organizations dearly over time.
Meg Whitman, during her decade-long run as CEO of online trading behemoth eBay, provided a dramatic example of a leader who not only sought honest feedback, but could not function without it. She listened carefully, mostly to her customers but also to anyone else who offered a useful point of view, and used what she learned to create a unique and powerful success story.
Whitman came aboard as CEO in March of 1998. Any number of skeptics felt that she was not qualified to run eBay for lack of technical expertise. She quickly demonstrated her willingness to roll up her sleeves and learn. In mid-1999, the eBay site crashed for 22 hours, and weeks of uncertainty and instability followed. Whitman sat through endless technical discussions to get at root causes, pulled all-nighters with the team and, when she did sleep, did so on a cot in the office. The problems were fixed and Meg Whitman impressed everyone, including her detractors, by acknowledging what she did not know and working to educate herself.
Whitman was also quick to credit eBay's success to its enormous community of buyers and sellers, who in essence run the business by determining which transactions will take place, and by managing inventory and shipping. The power of the business model, said Whitman, "is in the community of users who have built eBay."
Whitman spent considerable time monitoring feedback from buyers and sellers by perusing discussion boards. She said, "The great thing about running this company is that you know immediately what your customers think." She organized annual member conferences that brought thousands of eBay customers together to swap ideas and learn how to more effectively use the site. She spent time during these events on the floor interacting with as many customers as possible.
Numerous sellers have been able to make a handsome living trading on eBay full-time, and Whitman enjoyed interacting with them. Whitman declared, "Actually, most of these sellers know more about eBay than [eBay] employees. They use it every single day. They're the experts... The businesses that have been built on this platform are remarkable."
Whitman oversaw explosive expansion at eBay. In 2002, for example, revenues rose 62% to $1.1 billion, with an earnings jump of 172% to $249 million. By the time Whitman resigned her position in 2008, eBay had 15,000 employees, just under $8 billion in revenue, and 300 million registered users.
Meg Whitman was honored as Fortune magazine's most powerful woman in business in both 2004 and 2005. Much of what she accomplished can be attributed to her desire to hear what people were telling her, learn from it, and take appropriate action based on that new knowledge.
As a leader, if you arrive at a point where you lose interest in receiving feedback- assuming you had interest in the first place- or you say you want feedback but create an environment that is clearly not safe for providing it, you cannot succeed over the long haul.
Good leaders foster a culture in which it is okay to speak up, even if the message might be painful. The very best leaders not only accept feedback but actively, even manically, seek it out. They could not function without the information they receive, virtually always from multiple sources. It is like the air they breathe. They use that data to drive change in themselves and their organizations.
Meg Whitman is a shining example of just such a leader. She constantly sifted through countless bits of information, especially from her customers, the buyers and sellers who were foundational to eBay's success. She used what she learned to create one of corporate America's all-time growth stories.
Two final questions are critical: 1) Do you have someone in your professional life- at least one person- that pushes you and provides you with genuinely honest feedback? If yes, good for you; 2) If the answer is no, why not and what will you do about it?
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