management

Edward Zitron is right about why companies struggle long term

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I spent a lot of last year trying to understand why companies treated the employees they rely on for success so poorly — The Man Who Broke Capitalism; Lights Out; The Idea Factory; AI Snake Oil; Leaders Eat Last; and so on are all part of that journey. At the time I was a bit fixated on Jack Welsh and his long term impact on General Electric — which I would summarize as being overwhelmingly negative. It was a classic example of managing to short term profit metrics, instead of for long term sustainable growth by delighting your customers.

Ultimately this is why I chose to take a break from working for corporate America, as being treated like a replaceable cog in a profit machine wasn’t really working for me.

Then Edward Zitron wrote this blog post which really resonated with me…

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Lights Out

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This book continues the story of General Electric in the period after that covered by The Man Who Broke Capitalism, thus presenting an opportunity to validate if Jack Welch really was the bad guy while also learning more about where Welchism took General Electric in the longer term. This book is very readable, with nice short chapters -- for example it introduces Welch as a character, but does not dwell on his time at General Electric more than is necessary. Immelt's time as CEO got off to a rocky start, with the 911 attacks occurring on just his second day in the job. GE was financially exposed to these events, both as an insurer of some of the destroyed buildings, but also as a major manufacturer of aerospace equipment whose grounding reduced demand. My second day as chairman, a plane I lease, flying with engines I built, crashed into a building I insure, and it was covered with a network I own" Then of course came Enron. While the book asserts that GE's behaviour lacked Enron's criminality, GE was certainly creative and opaque with its accounting and would have to clean up its act under the new stricter post-Enron accounting…

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Drive

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This is a book about motivation, specifically about how our assumptions that biological urges and extrinsic motivation are sufficient to model all human behaviours. It turns out that's not true -- intrinsic motivation plays an important part, and in fact badly applied extrinsic motivators can harm the much more powerful intrinsic motivating factors. (It will be interesting to see what corporations currently cutting bonus payouts experience in terms of overall productivity now that they've removed an extrinsic motivator). Intrinsic motivation is more important for heuristic work where the outcomes aren't algorithmic or clear cut the book argues. It's not as simple as just cranking and handle and creativity comes out the other end. However, that's just what traditional management is -- a series of carrots and sticks to crinkle that handle as fast as possible. Its important to note here that the book repeatedly states that intrinsic motivation only works if the person's baseline needs are already met. That is, you need to be earning enough to pay your bills and so forth before you start valuing how interesting work is. Instead, the book encourages companies to consider things like 20% time, self organizing teams, flexible work hours, and so forth.…

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The Man Who Broke Capitalism

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With Cisco announcing that they no longer need 12% of their staff this calendar year (5% in February, and another 7% in September), I am left wondering what is so terribly wrong with American Capitalism. Interestingly at about the same time someone recommended I read this book, so here we are -- seeking to understand the behavior of our corporate masters once more. This book starts with this quote: To understand a civilization, consider its heroes. Which is telling because its so true. I think it also works for organizations -- if you want to see the values of an organization, don't look at what they say, look at who they promote and idolize. That's really the author's point though, so I shouldn't take too much credit. It's clear from the start that the author doesn't like Jack Welch or his leadership of General Electric and that he thinks Welch's legacy is toxic. Honestly though, he makes a pretty convincing argument that leaves me not being a huge fan either and certainly GE didn't survive the experience of Welch and those he chose to replace him upon retirement. It is asserted that Welch had three main maneuvers in business: downsizing;…

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The Innovator’s Dilemma

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So David at work has been talking about this book quite a lot recently, and that meant I had to read it despite the failure of Debugging to delight me. Interestingly, the book starts by telling the story of the hard disk industry, which aligns well with Chip War's approach of telling the story of the semiconductor industry. Apparently the universe thinks I need to know more tech history! The book asserts that disruptive innovation occurs when incumbent players become too good at serving their current market with improved products or services. While this might seem like the result of rational management, often those products end up over delivering compared to what customers want, and as a result then costing more than customers really want to spend. Disruptors on the other hand often launch with a worse product which doesn't meet the needs of the incumbent's customers, but does address the needs of some previously unserviced market segment. That's great for everyone, until the new player adds sufficient functionality to now be competitive with the incumbent player, but at a lower price point -- that's when life gets sad for the incumbent. An interesting point in the discussion is that the…

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Complexity Arrangements for Sustained Innovation: Lessons From 3M Corporation

This is the second business paper I've read this week while reading along with my son's university studies. The first is discussed here if you're interested. This paper is better written, but more academic in its style. This ironically makes it harder to read, because its grammar style is more complicated and harder to parse. The take aways for me from this paper is that 3M is good at encouraging serendipity and opportune moments that create innovation. This is similar to Google's attempts to build internal peer networks and deliberate lack of structure. In 3M's case its partially expressed as 15% time, which is similar to Google's 20% time. Specifically, "eureka moments" cannot be planned or scheduled, but require prior engagement. chance favors only the prepared mind -- Pasteur 3M has a variety of methods for encouraging peer networks, including technology fairs, "bootlegging" (borrowing idle resources from other teams), innovation grants, and so on. At the same time, 3M tries to keep at least a partial focus on events driving by schedules. The concept of time is important here -- there is a "time to wait" (we are ahead of the market); "a time in between" (15% time); and "a…

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A corporate system for continuous innovation: The case of Google Inc

So, one of my kids is studying some business units at university and was assigned this paper to read. I thought it looked interesting, so I gave it a read as well. While not being particularly well written in terms of style, this is an approachable introduction to the culture and values of Google and how they play into Google’s continued ability to innovate. The paper identifies seven important attributes of the company's culture that promote innovation, as ranked by the interviewed employees: The culture is innovation oriented. They put a lot of effort into selecting individuals who will fit well with the culture at hiring time. Leaders are seen as performing a facilitiation role, not a directive one. The organizational structure is loosely defined. OKRs and aligned performance incentives. A culture of organizational learning through postmortems and building internal social networks. Learning is considered a peer to peer activity that is not heavily structured. External interaction -- especially in the form of aggressive acquisition of skills and technologies in areas Google feels they are struggling in. Additionally, they identify eight habits of a good leader: A good coach. Empoyer your team and don't micro-manage. Express interest in employees' success…

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Goals Gone Wild

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In 2009 Harvard Business School published a draft paper entitled "Goals Gone Wild", and its abstract is quite concerning. For example: "We identify specific side effects associated with goal setting, including a narrow focus that neglects non-goal areas, a rise in unethical behavior, distorted risk preferences, corrosion of organizational culture, and reduced intrinsic motivation." Are we doomed? Is all goal setting harmful? Interestingly, I came across this paper while reading Measure What Matters, which argues the exact opposite point -- that OKRs provide a meaningful way to improve the productivity of an organization. The paper starts by listing a series of examples of goal setting gone wrong: Sears' auto repair in the early 1900s over charging customers to meet hourly billable goals; Enron's sales targets based solely on volume and revenue and not profit; and Ford Motor Company's goal of shipping a car at a specific target price point which resulted in significant safety failures. The paper then provides specific examples of how goals can go wrong: By being too specific and causing other important features of a task to be ignored -- for example shipping on a specific deadline but ignoring testing adequately to achieve that deadline. By being…

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High Output Management

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A reading group of managers at work has been reading this book, except for the last chapter which we were left to read by ourselves. Overall, the book is interesting and very readable. Its a little dated, being all excited with the invention of email and some unfortunate gender pronouns, but if you can get past those minor things there is a lot of wise advice here. I'm not sure I agree with 100% of it, but I do think the vast majority is of interest. A well written book that I'd recommend to new managers.

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Juno nova mid-cycle meetup summary: slots

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If I had to guess what would be a controversial topic from the mid-cycle meetup, it would have to be this slots proposal. I was actually in a Technical Committee meeting when this proposal was first made, but I'm told there were plenty of people in the room keen to give this idea a try. Since the mid-cycle Joe Gordon has written up a more formal proposal, which can be found at https://review.openstack.org/#/c/112733. If you look at the last few Nova releases, core reviewers have been drowning under code reviews, so we need to control the review workload. What is currently happening is that everyone throws up their thing into Gerrit, and then each core tries to identify the important things and review them. There is a list of prioritized blueprints in Launchpad, but it is not used much as a way of determining what to review. The result of this is that there are hundreds of reviews outstanding for Nova (500 when I wrote this post). Many of these will get a review, but it is hard for authors to get two cores to pay attention to a review long enough for it to be approved and merged. If…

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