Some big ideas have become commonplace, and everyone understands them. Others have become commonplace terms, which we often misuse. Lateral Thinking is one example of the latter. Yet it’s had a big impact over the last fifty years and will, I suspect, continue to do so over the next fifty.
Lateral Thinking is the brainchild of Maltese thinker and educator, Edward de Bono. It first appeared in his short 1967 book, ‘The Use of Lateral Thinking’. And it’s currently still in print, as ‘Lateral Thinking: An Introduction’(US|UK). But since then, he’s written a whole library on this and related topics.
These two strikingly simple and obvious questions have been answered rather well, by two British management thinkers, Rob Goffee and Gareth Jones.
Rob Goffee and Gareth Jones
Rob Goffee is Professor of Organisational Behaviour at the London Business School and is a long term academic. Gareth Jones, on the other hand, has alternated between academic and corporate roles, teaching at LBS too, and also the University of East Anglia, Henley, INSEAD, and currently, IE Business School, in Madrid. But he has also held senior HR roles at Polygram and the BBC.
Their first collaboration was a relatively unremarked book, called The Character of a Corporation. But it introduced ideas that they were to return to in their second, breakthrough book, and then again in their recent fourth book.
Their second book was called Why Should Anyone be Led by You? It introduced a mass business audience to the concept of Authentic Leadership. This was emphatically not their creation, tracking back to classical Greek thinking, and the Delphic injunction to first know yourself.
But their articulation struck a chord. It came at the right time and was delivered compellingly. Goffee and Jones argued that companies are led in far too much of a technocratic way, by people acting as managers and bureaucrats. They lack sufficient human connection with their people, and self awareness about their shortcomings.
Real leaders, they argued, are confident in who they are and what they stand for. They are not afraid to put that on show and constantly act with integrity in the way that they live the values they espouse. They are able to communicate well, and remain true to themselves, whilst still coping with and adapting to rapidly changing events. Consequently, they can inspire people to extraordinary levels of commitment.
Leading Clever People
The next book Goffee and Jones wrote addressed the challenges of leading an organisation or team made of smart, creative people. This is a typical challenge for many of today’s start-up businesses. It is also important for established businesses that want to bring together innovation teams, and for professional service businesses that want to create a great culture. The book is called Clever: Leading Your Smartest, Most Creative People.
A summary of the do’s and don’ts might look like this:
Explain and persuade
Give people space and resources
Tell them what
Give people time
Provide boundaries (simple rules)
Protect them from the rain
Give real world challenges with constraints
Create a galaxy
Conduct and connect
Tell people what to do
Allow them to burn out
Tell them how
Give frequent feedback
Expose them to politics
Use bullsh*t or deceive
Build an ivory tower
Recruit a star
Take the credit as a leader
Creating an Authentic Organisation
Goffee and Jones’ latest book is Why Should Anyone Work Here? It applies many of their earlier ideas to making a great organisation. At its heart is a simple mnemonic that spells out the six ingredients they argue are needed for a ‘dynamic and future-fit’ workplace: DREAMS.
Diversity increases creativity, which decreases with uniformity. Don’t do diversity because legislation compels you to. Do it because it has a positive impact on the bottom line: more creativity, better decisions, happier workforce.
(I know – a bit of a fix)
The more open and transparent you are, the happier people will feel. And if being open is likely to expose unfairness that will anger people, radical honesty will compel you to fix the problem, rather than hide it beneath dissembling..
“You need to tell someone the truth before someone else does,” said Jones. “Think of BP’s failure to control information after the [Deepwater Horizon] oil spill. Reputational capital is much more important and much more fragile than we ever thought.”
(This acronym-building is tough!)
This is not just about improving the business; it’s about adding value to the people within your business… as a means of improving your business.
There it is… Their earlier work popularised the concept, so its front and centre here too.
But, reflecting on how the ideas have settled in over the years, Goffee and Jones note that in the US, authenticity is too often read as ‘be yourself… find your true north.’ But their view is that an effective leader needs to be ‘yourself more skilfully.’
This is about ensuring everyone in the business understands the real purpose behind the tasks they do.
(one last shoe-horn!)
Businesses need systems. But this too easily leads to over-bureaucratisation. Rules need to work for the business and enable staff to do what’s right, not just prevent every single possibility of doing wrong.
Exploit an existing market and beat your competition
– or –
Find a whole new market where there is no competition
These two approaches have been championed by some of the greatest management thinkers and corporate leaders. W Chan Kim & Renée Mauborgne gave these strategies compelling names, and championed the latter in in a phenomenally high-selling book. They called it the Blue Ocean Strategy.
W Chan Kim
W Chan Kim was born in Korea, in 1952. After studying at the University of Michigan’s Ross Business School, he joined the faculty, becoming a professor. In 1992, he moved to the prestigious European Business School, INSEAD, in France, where he is The Boston Consulting Group Bruce D. Henderson Chair Professor of Strategy and International Management and Co-Director of the INSEAD Blue Ocean Strategy Institute.
Like Kim, Renée Mauborgne studied and taught at the University of Michigan Ross Business School. They moved together to INSEAD. Mauborgne is an American, born in 1963 (AVGY). The two have been long term collaborators, and their primary work together has been the research and writing about corporate strategy, which led to the concept and book, called Blue Ocean Strategy.
Blue Ocean Strategy
The 2004 HBR article, Blue Ocean Strategy, and the 2005 book of the same name are both best-sellers. The book’s sales are approaching 4 million. So clearly, if you’re a manager with any interest in business strategy, you need to know about this idea.
The concept is disarmingly simple.
A Blue Ocean Strategy sees a business finding a new market that is unexploited, and creating a market space for itself. Kim and Mauborgne’s metaphor is that Oceans represent market spaces.
They contrast new market spaces (blue oceans) with existing markets (red oceans). Companies that adopt a red ocean strategy focus on beating their competition and for this, an understanding of strategic concepts like Porter’s Five Forces will help.
The critique that Kim and Mauborgne level at red ocean strategies is that they often operate in crowded (or overcrowded) markets, offer limited opportunities for growth, and require lower profit margins. The bottom line impact of a red ocean strategy is, at best, conservative.
Instead of this ‘market-competing’ approach, they advocate a ‘market-creating’strategy, which places an emphasis on ‘value innovation’. This strategy should see customer value increasing, while costs drop, because (in Porter’s terms) you are targeting differentiation, rather than cost leadership. Differentiate yourself, they say, by finding new demand that competitors cannot yet address, and meet it.
As you’d expect from two leading academics, Kim and Mauborgne have created a Blue Ocean Strategy Institute, which they co-direct, and built a suite of analytical tools for companies to draw down on.
Critique of the Blue Ocean Strategy
The first critique could equally be seen as an endorsement. Their idea is not new. Numerous business strategy thinkers have developed and published similar ideas, like Gary Hamel, C K Prahalad, Kenichi Ohmae, and even the venerable Igor Ansoff.
The second critique is harder for Kim and Mauborgne to shake. There is little or no empirical evidence that their strategy works, in the sense of creating lasting competitive advantage through its deliberate application.
Without a doubt, businesses have innovated throughout history, creating new markets from nowhere. And many of them have gone on to maintain dominant positions for many years. You cannot argue with the thesis that finding a Blue Ocean and quickly becoming the top predator there works. Their book is full of modern case studies.
But, who has read the book, decided to launch a blue ocean strategy, applied the tools, found some blue ocean, and created a dominant position?
The counter to this argument is: ‘it’s only been a few years’. But as time goes on, we are waiting for the evidence.
So, what is Blue Ocean Strategy?
Is it an innovative management theory that contains a deep new insight backed by rigorous research?
Or is it a brilliantly packaged re-casting of familiar and self-evident ideas, illustrated by a number of compelling case studies?
Arguably, it is how Nonaka and Takeuchi took some of their thinking forward that has led to a far bigger transformation. In 1985, they co-wrote an article for the January 1986 edition of Harvard Business Review. Called ‘The New New Product Development Game’, this article was instrumental in revolutionising the discipline of Project Management.
Takeuchi and Nonaka gave us a new way of thinking about how to develop products and deliver projects. And they coined an evocative sporting metaphor for their process, which has stuck: Scrum.
Born in 1935, Ikujiro Nonaka gained a BS in political science at Waseda University, then started work at Fuji Electric, where he created their management programme. Nonaka left Fuji in 1967, to study at the University of California, Berkeley. He was awarded his MBA in 1968, and his PhD in Business Administration, in 1972. He took posts at US universities, before returning to Japan, as a professor at the Graduate School of International Corporate Strategy, Hitotsubashi University.
Born in 1946, Hirotaka Takeuchi got his BA from the International Christian University, Tokyo. After a short spell working at McCann-Erickson, he went to the University of California, Berkeley, where he got his MBA in 1971, and his PhD in 1977. During his time at Berkeley, he also worked summers for McKinsey & Company in Tokyo and, more important, met Nonaka.
Takeushi took a lectureship at Harvard in 1976 until 1983, when he joined Hitotsubashi University School of Commerce, where he became a full professor and Dean of the Graduate School of International Corporate Strategy. He stayed until 2010, when he returned to Harvard, as Professor of Management Practice, where he is now.
The New New Product Development Game.
In January 1986, Harvard Business Review published ‘The New New Product Development Game‘ by Takeuchi and Nonaka. This was about a new way to do New Product Development, or NPD. They drew on the idea of ‘ba’ – a Japanese coinage of Nonaka’s, meaning a meeting place for minds and the energy that draws out knowledge and creates new ideas.
They also took a look at the Toyota idea of teams coming together to solve problems. They introduced a sporting metaphor from the game of Rugby; that of the scrum. They used scrum to denote the way teams work together intensively when the ball goes out of play. In a work environment that demands creativity and innovative problem solving, this is just what is needed.
The model they created for Scrum Teams is of a cross functional group that can work autonomously to resolve its own problems. Their organisation is ’emergent’ meaning there is no assigned leadership or structure; it just emerges from the effective collaboration of its members.
To work best, a Scrum Team needs to be co-located, and work together full-time. This allows a high level of cross-fertilisation of ideas, and a dedication to working on their shared problems, tasks, and initiatives.
Scrum as an Agile Project Management Methodology
Agile project management seeks to avoid the all-or-nothing approach to projects that used to characterise traditional approaches – especially when done in a way that slavishly follows a set of ‘rules’. Although good project managers have always incorporated a lot of plan-do-review (the Deming Cycle), the growth of software development projects demanded an increase focus on agility and incrementalism.
In Scrum projects, a Product Owner is responsible for detailing the business requirements and ensuring that the business gets a good return on its product development investment (RoI). The Scrum Team, led by a Scrum Master, selects one subset of functionality from a product backlog of undeveloped functions, divides it into tasks, and works intensively on developing the outputs for a fixed time, known as a Sprint, which is usually 30 days.
Each day, the team gets together for a daily Scrum Meeting to share learning, report progress, discuss challenges, and solve problems. At the end of the sprint, the team should produce a working product that is stable and useful. After a reflection and learning process, the team then works with the product owner to define the subset of functionality it will work on in the next sprint.
The team continues like this until the Product Owner concludes that the next sprint would not create enough additional value to justify the incremental cost.
We tend to think of leading management theorists as coming from the United States. This seems especially so of Scientific Management. But when the privilege of naming things for the world’s largest audience goes to those who write in English, history creates a bias. And because that audience largely reads only one language, that bias gets amplified.
One of many losers from the Anglo-centric nature of management and business thinking was Karol Adamiecki. He was a Polish engineer, turned economist and management thinker, who can claim to have invented the Gantt Chart before Henry Gantt, PERT before the US Navy, the Theory of Constraints before Eliyahu Goldratt, and much of Scientific Management before FW Taylor.
Karol Adamiecki was born in southern Poland, in 1866. He studied engineering at the Institute of Technology in St Petersburg, graduating in 1891. He then returned to his home town, where he took charge of a steel mill. He stayed for nearly 30 years, during which time, he formed his ideas about management.
In 1919, he left the mill, and became a lecturer at the Warsaw Polytechnic, becoming a professor in 1922. There, he further codified and published his ideas. In 1925, he founded the Institute of Scientific Management in Warsaw, becoming its Director and remaining until his death in 1933.
Adamiecki’s Law of Harmony in Management
While running the steel rolling mill, Karol Adamiecki developed sophisticated thinking around management that was, from our perspective, ahead of its time. The three principal components were:
Harmony of Choice
Management should select and supply production tools that are mutually compatible. He went on to argue that this should be especially so in terms of their output production speed. This anticipated the Theory of Constraints, and the ideas of Eliyahu Goldratt by 75 years or more.
Harmony of Doing
Sequencing and scheduling of activities need to be fully co-ordinated to optimise production efficiency. Here, he not only developed a tool that looks very similar to the Gantt Chart, well before Gantt published. His approach also anticipated the US Navy’s Program Evaluation and Review Technique (PERT) and du Pont’s Critical Path Method (CPM) by over 50 years.
Harmony of Spirit
I imagine the Pharaohs’ overseers were constantly emphasising the importance of creating a good team. But this is another theme that feels very modern – perhaps even more so than the other two. Let’s not forget that Taylor’s view of Scientific Management was mechanistic and process-oriented. It took Mayo to bring humanism to the fore, and ideas of team working in management only started to dominate from the 1970s.
Adamiecki started to publish in 1898, several years before Taylor did so.
Harmony of Doing:
The Harmonograph or Harmonogram (or Harmonograf)
In 1896, Adamiecki solved the problem of sequencing and scheduling in production and published, in1903, his solution. He called it a Harmonograf. And it looks very much like what we now call a Gantt Chart. However, Henry Gantt did not publish until 1910. There is no evidence to suggest Gantt copied Adamiecki’s idea.
In constructing the Harmonograf, however, Adamiecki describes a process that is pretty similar to the PERT and CPM methods. He certainly is able to include critical path and float. These are two concepts Gantt did not consider at all.
As Adamiecki described his methods, he was able to optimise production schedules by sliding paper tabs and arranging paper strips. In a very real sense, he developed an analog scheduling computer.
Without a doubt, Adamiecki’s thinking was of its time, but way ahead of its rediscovery. He possibly failed to realise just how valuable it was. But more likely, he simply suffered from an Anglophone bias in scholarship and manufacturing. Publishing in Polish simply did not get him recognition far beyond the borders of his home country. Even now, it is only in the Karol Adamiecki University of Economics in Katowice, that his name is celebrated.
And I have to ask, could this happen again? Yes. I think it can, will and probably is happening now. Last week, we met Vlatka Hlupic. Arguably, her work is known despite her Croatian origin, because she lives and works in London. With the US and the UK increasingly looking to close their borders for differing but related reasons, the next Karol Adamiecki’s work could well lay undiscovered for just as long as that of the first.
The terms ‘Utopian Socialist’ and ‘Captain of Industry’ are rarely applied to the same person. But they are both sound descriptions of King Camp Gillette. Yet the revolution Gillette arguably led at the sharp edge (!) is not taking us towards a utopia. Far from it. The inevitable consequence of his successful business strategy is a world of depleting resources and growing land-fill.
King Camp Gillette was born in Wisconsin, in 1855. His father was a patent agent, inventor and entrepreneur, who encouraged Gillette and his brothers to tinker and make things too.
The family moved to Chicago and then, after losing pretty much everything in the Great Fire of 1871, to New York. There, Gillette started his business career as a travelling salesman. After a series of jobs, he ended up at the Crown Cork and Seal Company. There, his boss, the company’s founder, recognised Gillette’s ambition to build a business of his own. His advice was:
‘Invent something people use and throw away.’
The Disposable Razor Blade
We all know how that bit of the story ended. The safety razor was already becoming popular in the United States, but still needed to be sharpened frequently. Gillette wondered if he could produce a blade cheaply enough for men to use it until it was dull, and then throw it away and use a new one.
It turns out, he couldn’t at first. So he sold his blades at below cost price, until he could get the manufacturing volumes high enough for the cost price to drop. Gillette had also invented the handle, and his second great innovation was to stop trying to make money on the razor itself. Instead, he gave it away, as a means to tie users into his blades.
Disposable products that people need to replace regularly
Loss-leading accessories that tie users into the consumable items
Built-in Obsolescence, and a Product Eco-system
Today we’d call these ‘built-in obsolescence, and a product eco-system’. But the formula was phenomenally strong. So strong, in fact, that it was widely emulated – especially once Gillette’s patents expired.
Gillette also initiated the third pillar of the modern shaving business. He was constantly introducing minor innovations and improvements to keep ahead of his competitors – double edged blades, and then tin bladed razors.
Contemporary Corporate Strategy
In a market dominated by a few big players (Gillette among them), the demand is necessarily pretty static (the male population – particularly in affluent nations is not growing, and neither are we growing second heads). In the BCG Matrix, these are ‘cash cows’ – highly profitable lines with minimal growth prospects. All a company can do is defend against its rivals and try to steal some market share. So the strategy of constant incremental improvement remains to this day.
As, obviously, does the Gillette brand. Gillette himself resigned from the business in 1931, due to ill health, but it has retained his name to this day. It is now owned by Proctor and Gamble as one of over 20 global consumer brands. But that’s another business strategy entirely.
Gillette lost a lot of his millions to the Wall Street Crash, but maybe he was okay with that. He wrote a number of books that set out a Utopian ideal for a world of no competition, no wars, and benign monopolistic corporations providing employment and welfare. That’s a dream that still lives on at one end of the political spectrum. Perhaps it’s sad that creating this utopia is not what Gillette is remembered for. Instead, we remember him for the disposable razor blade. Oh well, now I’ve finished this article, I’d better go and have a shave.
What is the meaning of corporate strategy? Is it about getting to the front of the queue, keeping your place in the queue, or is it something different. Gary Hamel, once considered by Forbes Magazine to be ‘the world’s leading expert on business strategy’ might argue it is starting the next queue.
Very Short Biography
There are very few biographical details about Gary Hamel available. He was born in 1954, attended Andrews University. His first job was in hospital administration, but he soon started a PhD at the University of Michigan. There he met long-term collaborator, CK Prahalad. In 1983, Hamel joined the faculty of the London Business School, where he has remained to this day.
However, in 1993, we transferred from a full-time to a visiting professorship and moved to Silicon Valley, co-founding a consultancy firm, Strategos, a couple of years later, with Prahalad. This timing was clearly linked to the publication of their landmark Harvard Business Review (HBR) article, Competing for the Future in July/August 1994. It was followed later that year by the book of the same name, Competing for the Future, which became a massive seller.
This set Hamel up for a string of high-selling books, prominent HBR articles, prestigious consulting assignments, and eye watering fees on the conference circuit.
Following the sale of Strategos in 2008, Hamel founded the Management Innovation Exchange. This is an online community dedicated to innovation and disruptive thinking, that very much chimes with Hamel’s approach to strategy as disruptive. He remains influential and sought after and, as a relatively young man, seems likely to continue to influence strategic thinking for a number of years.
Hamel’s Big Ideas
What are the ‘Big Ideas’ that managers need to be aware of? And, in particular, how can we separate out Hamel’s ideas from those of long-term collaborator, CK Prahalad, whom Pocketblog has already covered?
Here, I’d like to focus on the flavour of the ideas that seem more to arise from Hamel’s thinking. But I must emphasise that I have no insight into how the two work together andI am aware I may be misinterpreting, so welcome comments.
The first big idea that Prahalad and Hamel put forward was that of core competencies. Corporations need to stop focusing on what industry thy are in, and start looking at what they can do well, as their source of competitive advantage. Hamel is fond of citing examples like Amazon and Apple, who are in the retail and consumer electronics industries respectively… or were.
Now, Amazon is a dominant player in provision of web servers, cloud storage, and data processing, whilst Apple makes much of its money today as a music vendor and software marketplace provider. It was the asset bases and the skill-sets of their people that allowed each business to grow into new markets and achieve a dominance there.
It seems to me that these examples illustrate Hamel’s particular contribution – he favours taking contrarian lines and looking for the surprising, disruptive directions of thought.
Prahalad and Hamel charted a shift in corporate strategy from the 1960s and the focus on portfolios and selecting winning product sets, to the 1980s and the focus on efficiency, continuous improvement, cost-cutting and re-engineering, and Total Quality Management (TQM) – all as means of tweaking the corporation to ever better incremental performance levels.
In the 200s, the focus needed to shift again, and in 1994, they foresaw this, under pressures of globalisation, technology shifts, changes in customer expectations, deregulation, and new entrants into markets. Corporations would increasingly need to answer long term questions about where they will be in the future. And if they don’t have the answers, then someone would surely displace them.
Companies, Hamel and Prahalad said, should no longer seek to optimise their position within a fixed market, but should rather either change the rules of their industry altogether, or go and find new markets to conquer.
Hamel distinguishes between:
These are the founders of their industries, who built dominance by an audacious and concerted move into a new or emerging space. Henry Ford, whom we covered two weeks ago is a great example.
These are the fast followers – companies that copied successful Rule Makers and also built a strong presence in the same market, largely by taking an established formula, and applying it well. Some would never catch up their rule maker. Others would find substantial improvements or deploy sufficient hunger, to overtake the incumbent leader.
These are businesses that disrupted the rules by which the incumbents play. They do things sufficiently differently to rock the market and change it forever. Some have been driven by technological advances, but others have been equally radical by simply applying new thinking. Virgin Airlines and then EasyJet each disrupt the British Airways near-monopoly n the UK, for example.
Strategy as Revolution
Nowhere is this clearer than in Hamel’s 1996 solo HBR article, ‘Strategy as Revolution‘. It seems to me that this article really set the scene for ten years later when Hamel co-founded the Management Innovation Exchange (MIX). Here, he put forward ten principles to consider, if you want to create a truly innovative strategy. I’ll pick out four:
Distinguish between ritualised, calendar-driven strategic planning from the true practice of challenge and investigation that leads to real strategy.
Harness revolutionary ideas throughout the company, because many of the staunchest defenders of old and comfortable orthodoxies are at the top of the organisation.
Don’t worry about making change. Instead, focus on engagement with the people who can make the change happen.
Embrace surprise: you don’t need to plan the whole route or even be sure of the ultimate destination. The direction is the strategy.
It’s too soon to write a conclusion on Hamel. His focus on disruption has helped many businesses change, but it is not clear whether he is riding the wave, or controlling the wave machine. If you want a constant stream of stimulation and challenge though, it is well worth checking out and even participating in his Management Innovation Exchange.
Linda Hill’s 2011 book, Being the Boss, was rated as one of Wall Street Journal’s 5 books to read in 2011, to build your career. But that work has since been eclipsed by the work Hill has done in collaboration with three colleagues. In this, she looks at how leaders spur innovation. The secret, she finds, is in ‘collective genius’.
Very Short Biography
Linda Hill was born in 1957, and attended Bryn Mawr College, where she earned a BA in Psychology. She then went to University of Chicago, to read for her MA in Educational Psychology, which she followed with a PhD in Behavioural Science.
In 1984, Hill joined the staff of the Harvard Business School, as an assistant professor. She became an associate professor in 1991, and full professor in 1995. Since 1997, she has been Wallace Brett Donham Professor of Business Administration at the Harvard Business School, where she has studied a broad spectrum of management and leadership topics. Her current interests remain centred on leadership, with particular focus on innovation, leading in the 21st century, and the new black business elite of South Africa.
Linda Hill’s Ideas
Becoming a Manager
Hill’s first book was Becoming a Manager (2003). This is a robust guide to taking on a management role, with a strong focus on its challenges within a career context. There is little innovative in it, but it does form a good guide to an important (and under-studied) career point. Hill concludes that a new manager must learn to:
Set the strategy and direction for their team
Align their people around that direction
Motivate and inspire them to achieve their goals
Being the Boss
Being the Boss (2011) is an altogether more substantial contribution, co-written with Kent Lineback. In this, Hill suggest three priorities for leaders:
Managing your network
Managing your team
So far, so standard. What makes this book stand out is its depth,and the way it gives genuinely valuable pointers to help managers and leaders progress on their journey. It is both thoughtful and practical. This is a book that is filled with pragmatic advice, and has inspired a mandatory module in Harvard’s MBA programme.
The research, conducted through a series of interviewers with leaders at highly creative organisations, concludes that the traditional image of a visionary leader driving creativity is a false one. Visionaries rarely lead great innovation. Instead, they tend to be the ones who get in its way.
A constant stream of good innovation needs leaders who are ‘social architects’ that can create a culture of collaboration. This means creating a sense of community, that rests on shared values, a clear purpose, and mutually agreed ways of working together. The diagram below illustrates this and is adapted from the book.
Once the leader has created this shared culture of collaboration, they need to give the groups a chance to discuss, argue, test, experiment and learn from their successes and failures. Crucially, the leader also needs to give ideas long enough to develop, so that evaluation is based on real results, rather than anticipation. In low creativity cultures, leaders select from competing ideas too soon. They reject and lose good ideas that do not seem as likely to thrive, while in their early stages.
Where different ideas are allowed to develop and be tested fully in parallel, decision-making is more robust. The authors identify three leadership abilities, which the leader must also develop within the group:
1. Creative Abrasion
Creating a culture of robust debate and challenge, that will generate the new ideas.
2. Creative Agility
A rapid cycle of test, learn, adjust that values experimentation as the way to optimise.
3. Creative Resolution
A decision-making approach that shuns ‘either-or’ thinking in favour of integrating different and sometimes opposing ideas.
In a fast-moving and complex world, easy solutions will be few and far between. We need a constant supply of new insights into how we can better synthesise subtle and complex solutions, and make wise choices about which to invest in. Many reviewers suggest that every CEO should be reading this book. I just wish it could find its way onto the reading pile of some more senior politicians.
Liz Wiseman is a former senior executive at the Oracle Corporation, where she ran their Oracle University. There, she became interested in leadership development and has, since leaving and setting up her own business, taken up a research-based approach. Her research into why some leaders seem to get the best from the people around them, while others equally shut down contributions, led to the powerful idea of Multipliers and Diminishers, and two best-selling books.
Very short biography
Liz Wiseman was born and grew up in the San Francisco Bay area. She attended Brigham Young University, studying Business Management and getting her bachelors degree in 1986, followed by a master’s degree in Organizational Behaviour, in 1988. From there, she joined Oracle, where she stayed for 17 years, becoming a Vice President with responsibility for leading the Oracle University.
Wiseman left Oracle in 2005, to found her own leadership consulting business. She is currently president of The Wiseman Group (formerly known as Mindshare Learning). She cites CK Prahalad as her career mentor.
Wiseman’s big idea, which she researched with British consultant Greg McKeown, is that some leaders seem to get vastly more from the people around them than others. She calls them Multipliers. She made this observation while at Oracle and then researched just what it is that they do differently from otherwise equally intelligent leaders, who seem to suppress the contributions of others. She calls those Diminishers.
Multipliers are able to access the intelligence of the people around them and somehow grow that intellect, making them feel (and maybe become) smarter still. They ask questions and make challenges in much the same way as Bernard Bass referred to in one of his four dimensions of Transformational Leadership: Intellectual Stimulation. They seem to see more capabilities than other leaders and therefore make bigger asks of people.
By multiplying the intelligence of your people, Multipliers have a disproportionately positive effect on your business. They can harness under-utilised capacity of busy but bored people, by expecting more and giving them the opportunity to deliver it.
Wiseman identifies five characteristics of Multipliers, and six skills that allow those characteristics to blossom.
Multipliers are Talent Magnets
This is almost the definition of a Multiplier. They seek out and attract people with ideas and talent, and draw their genius from them.
Multipliers are Liberators
They create the kinds of environments that free people up to do their best work and contribute their most innovative and critical thinking.
Multipliers are Challengers
They are able to define a challenge or opportunity and set people the responsibility to excel themselves and meet it. This way, they get the very best from their people.
Multipliers are Debate Makers
They can drive sound decision-making by creating rigorous evaluation and thorough debate. They encourage people to apply all their intellect fearlessly by caring more about the quality of discussion, than about personal gain or loss – we all win when we make a good choice together.
Multipliers are Investors
They invest in other people’s development and growth, and allow people to feel ownership for their careers and the results they achieve.
The Six Skills
The six skills that Wiseman teaches are:
Asking questions that spark innovation and intelligence
Creating debate that drives the best decisions
Identifying and utilizing genius in others
Creating space for others to think and contribute
Transferring ownership and accountability for results
The idea behind Rookie Smarts is simple: new people in an organisation bring a freshness and energy with them. They question the absurd and want to change things because , as an outsider, they have no allegiance to the ways of the past.
Long-serving leaders, on the other hand, easily get trapped into a mindset of ‘that’s the way we do things around here’ , and consequently lose their passion for change and drive to innovate.
What Wiseman advocates is that we ignite our curiosity, fire-up our energy, and become Perpetual Rookies. She says that:
‘Learning beats knowing’
and in so doing, she echoes precisely the principle of the Growth Mindset.
Richard Branson went from academic under-performer to being the first serial entrepreneur to create eight $8 billion businesses (and many other successful ventures too). He is an adventurer, a risk taker, and a visionary. Above all, he is a business person who sees business as a means to an end or, in his case,many ends. But despite the galactic scale performance of his business mind, there are many lessons we can learn from him, that apply equally to the day-to-day business and management practices of Pocketblog readers.
Many acres of newsprint (and Branson’s own autobiographies) have documented the life story of one of the world’s favourite entrepreneurs, so here it is in brief.
Richard Branson was born in 1950 in South London, to a comfortable professional middle-class family, which was able to send him to a privileged private school, Stowe. However, Branson was not academically strong, due to dyslexia, despite being evidently highly intelligent, so he left the education system at 16, only to return for a number of honourary degrees in later life.
His first business, so named because he and his staff felt themselves to be business virgins, was a mail order business selling records below store prices, which he set up in 1970. This allowed him to enter the high street in 1972. In the same year, he created Manor Studios where his first recording artist was Mike Oldfield. The Tubular Bells album became (and continues, 30 years later, to be) a massive seller for the new Virgin Records label.
Branson’s achievements span far more than his business ventures, but we’ll leave it to the glossy magazines to cover his record-breaking, kite-surfing, books, island buying and publicity-seeking activities, and simply list a selection from his business ventures.
1973 – Virgin Records record label
1979 – Buys the gay nightclub Heaven1983
1984 – Virgin Atlantic Airways and Virgin cargo
1985 – Virgin Holidays
1987 – Virgin Records to the United States
1987 – The Virgin Group, along with Granada, Anglia and Pearson, founds BSB (British Satellite Broadcasting)
1987 – Virgin Airship & Balloon Company.
1987 – Mates condoms
1988 – Virgin Broadcasting
1991 – Virgin Publishing (Virgin Books)
1993 – Virgin Radio
1994 – Virgin Vodka and Virgin Cola
1995 – Virgin Direct Personal Financial Services
1995 – Virgin Express (a European low cost Airline)
1996 – Virgin Brides (indeed!)
1997 – Virgin Trains
1997 – Virgin Cosmetics
1999 – Virgin Mobile
2000 – Virgin Energy
2000 – Virgin Cars
2004 – Virgin Galactic
2006 – Virgin Fuel, to produce a clean fuel in the future
2007 – Virgin Media
2008 – Virgin Healthcare
2009 – Virgin Money Giving
2010 – Virgin Racing, a Formula One team
2010 – Virgin Gaming, for people to play competitively on popular Video Games
2012 – Virgin Money buys Northern Rock
2012 – Virgin Galactic announces the development of orbital space launch system LauncherOne.
Five Management and Business Lessons from Richard Branson
Lesson 1: Have Fun
It is easy to look at a multi-billionnaire and say ‘of course he has fun; he is rich and can leave other people to run his businesses’. The fact is though, that Branson remains fully engaged with the strategic aspects of his business, and that he prioritises having fun and spending time with his family. There are plenty of comparably wealthy people who do neither. If he can make these choices, so can you.
Lesson 2: Get Things Done
To make these choices, Branson is ruthlessly efficient at making lists and getting things done. He disparages those who write off To Do lists as a waste of time and is a compulsive note-taker and list maker.
Lesson 3: Persevere and Fight Back
Branson’s ventures have often faced opposition from incumbent market leaders and sometimes political figures. Branson has deployed every form of response he can to fight off this contention and see his ventures succeed. His battles with British Airways (on behalf of Virgin Atlantic) and, more recently, with the UK Department of Transport (supporting Virgin Trains) are notable successes.
Lesson 4: Master Public Relations
Brand and public perception are a vital, and maybe central component of Branson’s business strategy. Very few of his ventures have eschewed the Virgin brand. Branson is a charismatic figure who has been adept at using his own personal brand to gain media attention, which of course has assisted in his public battles on behalf of his corporate brands.
Lesson 5: Be an inspirational leader
The central holding business of Virgin is tiny (much like Berkshire Hathaway’s) and there Branson leads, rather than bosses – recently setting highly innovative and permissive HR policies in place, which truly demonstrate exceptional levels of trust in his staff. When Virgin Atlantic won a legal case against British Airways and both he and the company received significant sums in compensation, he distributed this to the staff as a ‘BA Bonus’.
Richard Branson in his Own Words
Here is Richard Branson speaking at TED 2007.