Protect the Core & Ignite New Growth – Ambidexterity in Practice

The ambidextrous will prosper.

Pascal Dennis, co-author of Harnessing Digital Disruption

I’ve walked two pathways in my career– OpEx/Lean, and the way of Smart Growth (applied Innovation).  Integrating them is my aspiration these past ten years. So, what does such ambidexterity look like in practice?

Some years ago, I wrote a book about planning & execution called Getting the Right Things Done.  GRTD is about protecting your core business by focusing & aligning on a clear aspiration & winning logic. Our winning strategy is typically expressed in terms of core pillars, such as People, Quality, Delivery and Cost. Each pillar’s story is told on one-page A3-sized storyboards.  Each pillar’s A3 storyboard in turn comprises a clear aspiration & winning logic.

Simplicity is a key organizing principle in GRTD – if we cannot tell a clear simple story on one page, we probably do not understand the problem. The cost of complexity is extremely high – doing nothing is often less wasteful than pressing random buttons on the hope something will work.

Love the problem is a second core principle – develop a profound understanding of what we are trying to achieve before attempting countermeasures.  Given our impatient human nature, this is very hard to do.  (‘Don’t just stand there – do something!)  Plan & execute in accord with the scientific method a third core idea. In other words, our winning logic is a hypothesis, which we must test & validate based on data.

Protecting your core business in this way provides the foundation for Smart Growth. For a start, you free up plenty of cash which you can invest in your innovation portfolio. Moreover, the core principles of Protecting the Core are aligned with those of Smart Growth.  If you’ve been practicing kaizen, Growth Hacking (‘Lean experimentation’) will not be entirely foreign. If you’ve learned the physics of Flow in a great Lean company, you can readily apply them in an innovation sprint.

Igniting new Growth entails developing a balanced portfolio of innovation projects that a) align with your overall Aspiration & Winning Logic, and b) are mutually supportive. In other words, by doing project A & B, you are better able to tackle the more challenging C. Balanced means the right combination of better journeys, new journeys & offerings, and new businesses.

Your organization’s ‘mother Obeya’ (Control Tower, Cockpit, Big Room) with look just a little different.  In addition to the Pillar report outs and visuals, you’ll have a section showing the status of your Innovation Portfolio.  The visual system we use most often is a funnel with swim lanes corresponding to the type of innovation. We’ve also had success with race tracks and regatta courses.

Your funnel has to reflect the progress of each innovation (often called a ‘proof of concept’ – POC) toward validating the key tests:

1.     Does it Wow? (Desirability)

2.     Can we make money? (Viability)

3.     Does it work? (Feasibility)

But that’s a topic for another day. If you’re impatient, you can read about it here.

Best wishes,

Pascal Dennis         E: pascal.dennis@leansystems.org

In case you missed earlier blogs... please feel free to have another look….

AI and Innovation, part 2
AI Without Acumen = Garbage at the Speed of Light
Smart Growth (continued) - the Hacker
Smart Growth - the Huslter

Ai & Innovation, part 2

 Pascal Dennis, co-author of Harnessing Digital Disruption

What’s the greatest danger posed by AI? The brutal fallacy that human creativity & achievement are nothing. ‘Look,’ AI tells us, ‘I can create a poem, essay, song, image in thirty seconds!’  Hence the proliferation of AI slop.

AI engines are akin to a smart intern or research assistant. In the hands of a skilled practitioner, AI saves time & effort, freeing us up to get at the crux of the problem or job at hand. Beware using AI as a crutch or a short cut. Learn the fundamentals of your chosen business, discipline or art. Put in the needed reps, cloister yourself with you craft, remote from AI support. Why, you ask? Because practice makes you smarter. And not doing so, asking AI to do the reps for you will surely make you dumber.

That said, AI can be very helpful to the innovator. Let me use the music to illustrate the point. As some of you may know, I am a dedicated composer & musician. (Management & Music are my ‘twin pillars’, and my family is my foundation).

To compose, say, a jazz ballad, you have to understand music theory, and in particular, jazz harmony. And you have to know your chosen instrument(s). Suppose you begin with a basic melody and a I – VII – III – II – V – I structure. How do we innovate?

Well, we can use chord extensions; that is, we can add the 2, 4, 6 or 7 to a given chord to give it the emotion we’re seeking (tension, anticipation, brightness, melancholy…). Then we can make the extension sharp or flat, or we can add multiple extensions, say, a 6 & a 9 on the tonic chord and 6 & flat 7 on the subdominant. Our progression is taking on a personality, an edge, a feeling. Now we can consider modulating to a different key, which is akin to entering a new room in a beautiful house. Or we can modulate to series of keys, which is akin to a series of rooms.

You get the picture. Absent an intuitive understanding of these things, gained by long & patient study, can anybody really innovate - with or without AI? To be sure, you can ask an AI music site to create a song for your spouse about a giraffe & hippo in the style of Willie Nelson, with a solo in the style of Chet Atkins – but is that innovation?

No, it’s AI slop.  (And even worse, it is stealing from Willie & Chet, no?)

And so, each of us must learn their craft under the guidance of a mentor, a sensei – one who has ‘gone before’. AI can help us in the same way as a smart intern or research assistant can help. By saving us time, by reducing hassle, by doing repetitive stuff that frees us up to do the hard working of thinking, experimenting and creating.

Do I use AI to help me write songs?  Short answer – No. I’ve played with AI in the manner I described above.  ‘Here is a chord sequence in the key of F minor. What kind of chord extensions or key modulations are possible?’  Like any smart intern, AI tries to be helpful. ‘Hey boss, did you consider adding a flat 9 to the dominant chord? 

But I already thought about that. It takes our producer & my composition coach, maestro David Logan, to suggest something truly cool like: ‘Try adding a flat 9 and a sharp 9 to the dominant…”

Now we’re talking…

Best wishes,

Pascal Dennis         E: pascal.dennis@leansystems.org

In case you missed earlier blogs... please feel free to have another look….

AI Without Acumen = Garbage at the Speed of Light
Smart Growth (continued) - the Hacker
Smart Growth - the Huslter
The Difference Between Protecting Your Core Business & Igniting New Growth

AI Without Acumen = Garbage at the Speed of Light, part 1

 Pascal Dennis, co-author of Harnessing Digital Disruption

 Enter a dojo, cloister, seminary. Seek out a sensei & practice till your mind & body ache.

Executives seeking growth ask, ‘Can AI help us innovate?’  

OpEx/Lean colleagues ask, ‘Can AI help us with continuous improvement?’

Artists ask, ‘Can AI help us create meaningful works of art?’

Here’s my answer to all three groups: AI can help, but only if you’ve paid your dues, and are a resolute craftsman, seeker, and acolyte. Only if you’ve learned the fundamentals through long & diligent study. Otherwise, you’ll be adding to the AI slop sluicing around the world.

Executives must know their business in their bones. OpEx/Lean professionals must have a deep grasp of the problem they’re trying to solve and of OpEx/Lean fundamentals. Artists must know their craft & their chosen instrument. Sorry folks, there are no shortcuts.

The greatest danger posed by AI might be the brutal fallacy that human creativity & achievement are nothing. ‘Look,’ AI tells us, ‘I can create a poem, essay, song, or image in five seconds!’  Hence the proliferation of AI slop.

Let’s look at process improvement. AI can give us generic improvement ideas such as ‘apply visual management,’ or ‘improve connections,’ or ‘build quality into the process’ (Jidoka). But no AI engine cannot tell us where, how and under what circumstances to apply these measures. Nor can AI tell us what form these measures should take. And no AI engine can a) build a team, b) align the team toward a great aspiration, and c) motivate the team so that they continually try to get better.

AI engines are akin to a smart intern or research assistant. In the hands of a skilled practitioner, AI saves time & effort, freeing us up to get at the crux of the problem or job at hand. Beware using AI as a crutch or a short cut. Learn the fundamentals of your chosen business, discipline, or art. Put in the needed reps, cloister yourself with you craft, remote from AI support. Why, you ask? Because practice makes you smarter. And not doing so – asking AI to do the reps for you – will surely make you dumber. And you’ll create garbage at the speed of light.

Enter a dojo, a cloister, a seminary. Seek out a sensei and practice till your mind & body ache. If you’re slammed into the tatami mat seven times, get up eight times! Practice, practice, practice the core elements of your chosen business, discipline, or art, before you think about AI.

Best wishes,

Pascal Dennis         E: pascal.dennis@leansystems.org

In case you missed earlier blogs... please feel free to have another look….
Smart Growth (continued) - the Hacker
Innovation Fundamentals - Radical Collaboration & the 3H Model
My Hockey Stick Curve, part 1
Smart Growth - the Huslter

#AIDiscipline #CraftOverShortcut #HumanCreativityMatters #LeanAndLearn #PracticeBeforeAI #NoAISlopZone

Smart Growth - the Hustler

 Impactful innovation requires three quite different personalities – the Hipster, Hustler, and Hacker. The Hustler is the often quarterback.

Smart Growth (applied innovation) requires three different personalities, working together & fully caffeinated. In earlier blogs, I described the qualities of the Hipster and Hacker. Now, let’s talk about the Hustler, who is often the quarterback in the 3H model.

Hustlers know how to make money. Business acumen, like Design or Technical acumen, is a type of super-power. Effective hackers share the following qualities:

●      Financial Literacy: They understand financial statements, key metrics (esp. ROI, EBITDA, gross margins), and how business decisions impact profitability & cash flow. They know how to ‘manage a P&L’ and understand the power of OpEx/Lean.

●      Adaptability: They are flexible & able to pivot in response to changing circumstances. For example, a good Hustler will accept that traditional metrics like ROI & EBITDA do not apply in initial stages of an innovation launch. Why? Because they are all zero! And so, the Hustler will accept Innovation Accounting measures to assess traction. Moreover, a good Hustler understands & appreciates the contributions of the Hipster & Hacker.

●      Market Awareness: Hustlers understand their industry, competitors, and customers. They identify opportunities, anticipate challenges, and position their teams & organization for competitive advantage.

●      Strategic Thinking: Capable Hustlers can see the entire chessboard. They understand ambidexterity - the ability to both protect the core business AND ignite new Growth. At the macro level, they develop & execute innovation strategies that align with the company’s aspiration & winning logic. At the micro level, they adapt based on the results of Lean experiments. They understand the distinct phases in the innovation ‘hockey stick,’ and the critical tests of Smart Growth:

○      Does it wow?

○      Can we make money?

○      Does it work?

●      Resilience: Hustlers bounce back from setbacks, view ‘failed’ experiments as learning, and maintain focus despite obstacles.

●      Communication & Emotional Intelligence: Effective hustlers articulate their vision, expectations, and feedback clearly, fostering trust and alignment within their teams. Good Hustlers understand & manage their own emotions and build strong relationships & healthy work environments.

●      Analytical and Critical Thinking Skills: Capable Hustlers make decisions based on data & adapt both the macro & micro approach accordingly.

Such traits help Hustlers to make good decisions, get results, and guide their teams through the uncertainty, complexity & fog of innovation.

Famous Hustlers? Jeff Bezos, Jack Ma, Warren Buffet, Oprah Winfrey, Andrew Carnegie, Debbi Fields, J.W. Marriott, Jamie Dimon. Feel free to add more names.

Hustlers, Hackers & Hipsters working in tandem are an unstoppable creative force. Our challenge as business leaders & innovators is to build healthy 3H teams & address the blockers that hinder them. More on blockers in articles to come.

Best wishes,

Pascal Dennis         E: pascal.dennis@leansystems.org

#SmartGrowth #InnovationTeams #BusinessHustler #StartupSuccess #LeadershipMatters #3HModel #NewProductLaunch

In case you missed our last few blogs... please feel free to have another look….

Smart Growth (continued) - the Hacker
Innovation Fundamentals - Radical Collaboration & the 3H Model
My Hockey Stick Curve, part 1
OpEx/Lean, Innovation and Wakefulness