Doing nothing is the biggest risk. 21st C truism
Nowadays, can we rest
on our proverbial oars? Can we afford to coast, confident that our voyage &
destination are assured? Are we immune to the deadly diseases of our day –
Volatility, Black Swans, and Obsolescence?
Our good luck & curse
is to be ‘born in interesting times’. Doing nothing is our riskiest option. When
the ocean is in furious flux, alertness, manoeuverability and speed are of the
essence. And the clearest expression of these qualities is ambidexterity
– the ability to both protect the core business with Lean/OpEx, and also,
to ignite new Growth using Digital methods.
This is the first of
a series of articles in which I describe the transformation blockers I have experienced. These are the ‘battles’ we have to win
whether we are launching a Lean ‘model line’ or an Innovation ‘showcase’:
- Ignorance
- Fear
- Space
- Scatter
- Guesswork
I'll describe them briefly today and set the stage for a deeper discussion in articles to come.
Ignorance
When I launched our
advisory service in year 2,000 the Toyota Production System was all the rage. TPS
was indeed the ‘machine that changed the world’, and companies around the world
were anxious to absorb & apply its secrets. In a marvelous spirit of
generosity, Toyota shared its methods and opened its factories to the world.
And yet, it took a long time to lift the veil of ignorance. Indeed, it’s estimated that between 50 and
90% of Lean transformations fail to achieve their goals.
Fear
Senior leader
mentorship is a big part of my personal practice these past few decades. I’ve
worked with CEOs, COOs, CFOs, CMOs, CROs and with independent & executive Board
members. With very few exceptions, they are smart, capable and committed to doing
the right thing for their companies, team members and communities. (To be clear, I carefully screen mentees – no
bozos, a-holes, or ‘dark triad’ types.)
Fear is perhaps their
most common shared emotion. They don’t
want to let people down; they don’t want to look bad. They want to leave the
company is better shape than they found it.
Space
Transformation
requires space – physical, temporal, financial, strategic, and cultural space. Such
space requires ‘executive air cover’ against the inevitable ‘corporate
antibodies’ that will shut down a model line or showcase in overt and covert
ways.
Scatter
Scatter means the
inability to pair down one’s activities & focus on the critical few. The Pareto principle is often cited but
rarely practiced consistently. There is something in human nature that likes to
push buttons repeatedly, to see what happens, I suppose. This debilitating
tendency has reached epidemic proportions in our screen-addled worlds.
Guesswork
Guesswork entails jumping
to conclusions in the absence of data. Sometimes the deeper cause is HIPPO
management (decisions based on the highest paid person’s opinion). Other times,
we simply lack the data – very common when we’re trying to ascend the now mythical
‘hockey stick’ curve.
There you have it –
the biggest blockers to ambidexterity that I have experienced. In articles to come, I’ll do a deeper dive on
each one. Hope you join me.
Best wishes,
Pascal Dennis E: pascal.dennis@leansystems.org
Daily Management Walks - a Primer
Ambidexterity-in-practice
AI and Innovation, part 2
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