Managing Fast and Slow

Tortoise and Hare Illustration

People have a complicated relationship with the concept of cause and effect. In spite of the old saying about the insanity of doing the same old thing looking for a different result, we hope against hope that this time it will work. Sometimes we inject unnecessary complexity into what should be very simple tasks, other times we over-simplify looking for shortcuts to success. Greger Wikstrand recently spoke to one aspect of this in his post “Cargo cult innovation, play buzzword bingo to spot it” (part of our ongoing conversion on innovation):

I am not saying that there is no basis of truth in what they say. The problem is that innovation is much more complex than they would have you believe. If you fall for the siren song of cargo cult innovationism, you will have all the effort and all the trouble of real innovation work but you will have none of the benefits.

I ran across an interesting example of this kind of simplistic thought not long ago on Forbes, titled “The Death of Strategy”, by Bill Fischer:

Strategy is dead!

Or, is it tactics?

In a world of never-ending change, it’s either one or the other; we can no longer count on having both. As innovation accelerates its assault on what we formerly referred to as “our planning process,” and as S-curves accordingly collapse, each one on top another, time is compressed. In the rubble of what is left of our strategy structure, we find that what we’ve lost is the orderly and measured progression of time. Tim Brown, of IDEO, recently put it this way at the Global Peter Drucker Forum 2016, in Vienna: “So many things that used to have a beginning, a middle and an end, no longer have a middle or an end.” Which is gone: strategy or tactics? And, does it matter?

Without a proper middle, or end, for any initiative, the distinction between strategy and tactics blurs: tactics become strategy, especially if they are performed in a coherent and consistent fashion. Strategy, in turn, now takes place in the moment, in the form of an agglomeration of a series (or not) of tactics.

The pace of change certainly feels faster than ever before (I’m curious, though, as to when the world has not been one of “never-ending change”). However, that nugget of truth is wrapped in layers of fallacy and a huge misunderstanding of the definitions of “tactics” and “strategy”. “Tactical and Strategic Interdependence”, a commentary from the Clausewitzian viewpoint, contrasts the terms in this manner:

Both strategy and tactics depend on combat, but, and this is their essential difference, they differ in their specific connection to it. Tactics are considered “the formation and conduct of these single combats in themselves” while strategy is “the combination of them with one another, with a view to the ultimate object of the War.”[8] Through the notion of combat we begin to see the differentiation forming between tactics and strategy. Tactics deals with the discrete employment of a single combat, while strategy handles their multiplicity and interdependence. Still we need a rigorous conception. Clausewitz strictly defines “tactics [as] the theory of the use of military forces in combat,” while “Strategy is the theory of the use of combats for the object of the War.”[9] These definitions highlight the difference between the means and ends of tactics and strategy. Tactics considers the permutations of military forces, strategy the combinations of combats, actual and possible.

In other words, tactics are the day to day methods you use to do things. Strategy is how you achieve your long term goals by doing the things you do. Tactics without strategy is a pile of bricks without an idea of what you’re going to build. Strategy without tactics is an idea of what to build without a clue as to how you’d build it.

Fischer is correct that strategy executed is the “…agglomeration of a series (or not) of tactics”, but his contention that it “…now takes place in the moment…” is suspect, predicated as it is on the idea that things suddenly lack “…a proper middle or end…”. I would argue that any notion of a middle or end that was determined in advance rather than retroactively, is an artificial one. Furthermore, the idea that there are no more endings due to the pace of change is more than a little ludicrous. If anything, the faster the pace, the more likely endings become as those who can’t keep up drop out. Best of all is the line “…tactics become strategy, especially if they are performed in a coherent and consistent fashion”. Tactics performed in “…a coherent and consistent fashion” is pretty much the definition of executing a strategy (negating the premise of the article).

Flailing around without direction will not result in innovation, no matter how fast you flail. While change is inevitable, innovation is not. Innovating, making “significant positive change”, is not a matter of doing a lot of things fast and hoping for the best. Breakthroughs may occasionally be “happy accidents”, but even then are generally ones where intentional effort has been expended towards making them likely.

In today’s business environment, organizations must be moving forward just to maintain the status quo, much less innovate. This requires knowing where you are, where you’re headed, and what obstacles you’re likely to face. This assessment of your operating context is known as situational awareness. It’s not simple, because your context isn’t simple. It’s not a recipe, because your context is ever-changing. It’s not a product you can buy nor a project you can finish and be done with. It’s an ongoing, deliberate process of making sense of your context and reacting accordingly.

Situational awareness exists on multiple levels, tactical through strategic. While the pace of change is high, the relative pace between the tactical and strategic is still one of faster and slower. Adjustments to strategic goals may come more frequently, but daily changes in long-term goals would be a red flag. Not having any long-term goals would be another. Very specific, very static long-range plans are probably wasted effort, but having some idea of what you’ll be doing twelve months down the road is a healthy sign.

Situational Awareness – Where does it begin? Where does it end?

Infinity symbol

Situational awareness, according to Wikipedia, is defined as “…the perception of environmental elements and events with respect to time or space, the comprehension of their meaning, and the projection of their status after some variable has changed, such as time, or some other variable, such as a predetermined event”. In other words, it’s having a handle on what currently is and what is about to happen. It’s a concept that is invaluable to a wide range of interests, particularly management/leadership, architectural design, and innovation. It’s a concept that crosses levels, from tactical to strategic. Just as socio-technical systems architectures exist in a fractal space (application to solution to enterprise), so too does the concept of situational awareness. As such, it’s a common theme for this site, particularly over the last year or so.

The OODA (Observe-Orient-Decide-Act) Loop, developed by Air Force Colonel John Boyd, is a framework for decision-making that explicitly incorporates situational awareness:

OODA Loop Diagram

Coupling sense-making with decision-making is critical to achieve a balance of both speed and effectiveness. In my opinion, acting without taking the state of the environment into account is a recipe for disaster. Equally important (likewise, in my opinion), is understanding the dynamic nature of situational awareness. As Boyd’s diagram above shows, it’s not a linear process. Additionally, the very nature of a loop should convey the fact that there’s neither beginning nor end. This is a key concept.

One of the sites that I follow is Slightly East of New, which is run by an associate of Boyd’s and dedicated to his theories. A recent post on that site, “The magic of the OODA loop”, related a paragraph from a sci-fi novel, The Apocalypse Codex, that referred to OODA:

Observe, orient, decide, act: words to live or die by. Right now, Persephone is disoriented — on the run, cut off. It’s time to go on the offensive, work out where she is and what’s going on, then get the hell out of this trap.

It was an interesting post, but nothing noteworthy, until I got to this comment:

I find the phrase, “…on the run, cut off.” very interesting, within the context of “disoriented”. To me, “on the run” mean a decision has been made and acted on, whereas “disorientation” usually means that one can’t make a decision.
Likewise, “cut off” is the position you find yourself in, after all the decisions have been made and, after thinking about it, it is the posture you observe yourself to be in.
In other words, on the run and cut off is not really a disorientation, but a reality.
So, while you may not survive, you have made a decision to run or you are about to make a decision and join the otherside.
I suppose it just depends on where those words show up in the narrative, as to if you made the decision or your competitor made the decision for you.

I may be over-sensitive to the phrasing, but “…decision has been made and acted on…” and “…after all the decisions have been made…” strike me as being too static and too linear. Every action/inaction follows on decision/indecision. The point “…after all the decisions have been made…” is terminal (for the person who has made all the decisions they will make). In my opinion, it is key to bear in mind that the clock is always running and that the reality being processed is already past. Too much attention to the state of what is (or rather, was) takes away from the more important task of getting to a better “to be” state. Additionally, decisions and contexts should be thought of as not just linear, but fractal (e.g. having multiple levels from tactical through strategic) as well.

Loops that have an end are no longer loops. Likewise, we have to be able to strike a balance between just focusing on what’s relevant (too much context/backstory can cause information overload) and the point where we’ve trimmed away necessary context.

Actively thinking about sense-making and decision-making can seem overly academic. The activities are so foundational to nearly everything that they can feel instinctual rather than learned. I suspect that’s a case of “familiarity breeds contempt”. Depending on the application, contempt for developing the best possible situational awareness could be fatal.

[OODA Loop diagram by Patrick Edwin Moran via Wikimedia Commons]

Form Follows Function on SPaMCast 421

SPaMCAST logo

This week’s episode of Tom Cagley’s Software Process and Measurement (SPaMCast) podcast, number 421, features Tom on vanity metrics (“feel good, less useful”), Steve Tendon discussing TameFlow, and a Form Follows Function installment based on my post “Leadership Patterns and Anti-Patterns – The Growler”.

Ever deal with a “crusty” leader who used an “unwelcoming” attitude to filter demands on their attention? Tom and I discuss this leadership pattern (it works, sort of, so you can’t rightly classify it as an anti-pattern) and the very real downsides that make it problematic.

You can find all my SPaMCast episodes using under the SPAMCast Appearances category on this blog. Enjoy!

Learning Organizations: When Wrens Take Down Wolfpacks

A Women's Royal Naval Service plotter at work in the Operations Room at Derby House in Liverpool, the headquarters of the Commander-in-Chief Western Approaches, September 1944.

What does the World War II naval campaign known as the Battle of the Atlantic have to do with learning and innovation?

Quite a lot, as it turns out. Early in the war, Britain found itself in a precarious position. While being an island nation provided defensive advantages, it also came with logistical challenges. Food, armaments, and other vital supplies as well as reinforcements had to come to it by sea. The shipping lanes were heavily threatened, primarily by the German u-boat (submarine) fleet. Needing more than a million tons of imports per week, maintaining the flow of goods was a matter of survival.

Businesses may not have to worry about literal torpedoes severing their lifelines, but they are at risk due to a number of factors. Whether its changing technology or tastes, competitive pressures, or even criminal activity, organizations cannot afford to sit idle. In his post “Heraclitus was wrong about innovation”, Greger Wikstrand talked about the mismatch between the speed of change (high) and rate of innovation (not fast enough). This is a recurrent theme in our ongoing discussion of innovation (we’ve been trading posts on the subject for over a year now).

The British response to the threat involved many facets, but an article I saw yesterday about one response in particular struck a chord. “The Wargaming “Wrens” of the Western Approaches Tactical Unit” told the story of a group of officers and ratings of the Women’s Royal Naval Service (nicknamed “Wrens”) who, under the command of a naval officer, Captain Gilbert Roberts, revolutionized British anti-submarine warfare (ASW). Their mandate was to “…explore and evaluate new tactics and then to pass them on to escort captains in a dedicated ASW course”.

Using simulation (wargaming) to develop and improve tactics was an unorthodox proposition, particularly in the eyes of Admiral Percy Noble, who was responsible for Britain’s shipping lifeline. However, Admiral Noble was capable of appreciating the value of unorthodox methods:

A sceptical Sir Percy Noble arrived with his staff the next day and watched as the team worked through a series of attacks on convoy HG.76. As Roberts described the logic behind their assumptions about the tactics being used by the U-Boats and demonstrated the counter move, one that Wren Officer Laidlaw had mischievously named Raspberry, Sir Percy changed his view of the unit. From now on the WATU would be regular visitors to the Operations Room and all escort officers were expected to attend the course.

Each of the courses looked at ASW and surface attacks on a convoy and the students were encouraged to take part in the wargames that evaluated potential new tactics. Raspbery was soon followed by Strawberry, Goosebery and Pineapple and as the RN went over to the offensive, the tactical priority shifted to hunting and killing U Boats. Roberts continued as Director of WATU but was also appointed as Assistant Chief of Staff Intelligence at Western Approaches Command.

This type of learning culture, such as I described in “Learning to Deal with the Inevitable”, was key to winning the naval war. Clinging to tradition would have led to a fatal inertia.

One aspect of the WATU approach that I find particularly interesting is the use of simulation to limit risk during learning. Experiments involving real ships cost real lives when they don’t pan out. Simulation (assuming sufficient validity of the theoretical underpinnings of the model used) is a technique that can be used to explore more without sending costs through the roof.

Amazon’s ‘Old is New Again’ Innovation

Amazon’s unveiling Monday of its new brick and mortar venture, Amazon Go is, rightly so, generating a lot of interest:

The full strategy, as reported on the Verge is for three types of stores in a range of sizes:

Of the three varieties of stores Amazon is considering opening, the convenience store model is the most concrete. Earlier today, the company took the wraps off Amazon Go, an ambitious cashier-less store in its hometown of Seattle that uses artificial intelligence and sensors to track which items consumers take off shelves. That way, you can simply walk out of the store without having to go through a checkout line. This gives Amazon a critical way to track consumer buying behavior offline.

The other store formats Amazon is considering include a smaller drive-thru variety and a huge, European-style discount chain. The drive-thru prototypes are weeks away from becoming a reality, The Wall Street Journal reports, with two stores under construction in the Seattle area. The larger discount chain model would involve constructing 30,000- to 40,000-square-foot stores that combine instant purchasing with a kind of IKEA model. That way, consumers could order in-store via touchscreens or online and then pick up the finished packages curbside later on. In a statement given to The Verge, an Amazon spokesperson said the company doesn’t comment on rumors or speculation.

While the technology behind the “walk in, grab, and go” convenience store model is cool, what’s even cooler (in my humble opinion) is that the large discount chain model is exactly like what I discussed in “Innovation – What’s Old can be New Again”, back in April. In other words, it’s the rebirth of Best Products, made viable by changes in technology. Not that I’m even remotely suggesting that anyone at Amazon read the post (I’d strongly suspect this has been in the planning stages for far, far longer), but it’s nice to have some confirmation of my ideas. In my opinion, marrying Amazon’s logistics capabilities with digital technology to revolutionize offline shopping is a clear winner.

Greger Wikstrand and I have been discussing the topic of innovation for a little more than a year now. In his last post, “Big bet innovation and other types of innovation”, Greger talked about the difference between making big bets, failing fast, and incremental, continuous innovation. Amazon’s move, particularly with the largest store, I think represents just this type of incremental innovation. Amazon has been experimenting with physical outlets for a while now, starting with bookstores. Moving into groceries and other consumer goods (which is a more complicated segment of retail – books don’t go bad on the shelf!) represents a way to keep pushing the envelope bit by bit.

The hybridization of online and physical retail represents an interesting situation, an innovation toward the middle, if you will. Having grown large in the digital space, Amazon is now continuing its evolution into areas considered the domain of more traditional retailers. It’s interesting that Greger’s article links to a similar case of e-commerce merging with physical presence (in Swedish, but translates well).

It’s been said before, not all change is innovative, but innovation implies change. Intentional change that allows your business to continually optimize its fit to its operating context is truly innovative.

I fought the law (of unintended consequences) and the law won

Sometimes, what seemed to be a really good idea just doesn’t turn out that way in the end.

In my opinion, a lack of a systems approach to problem solving makes that type of outcome much more likely. Simplistic responses to issues that fail to deal with problems holistically can backfire. Such ill-considered solutions not only fail to solve the original problem, but often set up perverse incentives that can lead to new problems.

An article on the Daily WTF last week, “Just the fax, Ma’am”, illustrates this perfectly. In the article, an inflexible and time-consuming database change process (layered on top of the standard change management process) leads to the “reuse” of an existing, but obsolete field in the database. Using a field labeled “Fax” for an entirely different purpose is far from “best practice”, but following the rules would lead to being seen as responsible for delaying a release. This is an example of a moral hazard, such as Tom Cagley discussed in his post “Some Moral Hazards In Software Development”. Where the cost of taking a risk is not borne by the party deciding whether to take it, potential for abuse abounds. This risk becomes particularly likely when the person taking shortcuts can claim a “moral” rationale for doing so (such as “getting it done” for the customer).

None of this is to suggest that change management isn’t a worthy goal. In fact, the worthier the goal, the greater the danger of creating an unintended consequence because it’s so easy to conflate argument over means with disagreement regarding the ends. If you’re not in favor of being strip-searched on arrival and departure from work, that doesn’t mean you’re anti-security. Nonetheless, the danger of that accusation being made will likely resonate for many. When the worthiness of the goal forestalls, or even just hinders, examination of the effectiveness of methods, then that effectiveness is likely to suffer.

Over the course of 2016, I’ve published twenty-two posts, counting this one, with the category Organizations as Systems. The fact that social systems are less deterministic than software systems only reinforces the need for intentional design. When foreseeable abuses are not accounted for, their incidence becomes more likely. Whether the abuse results from personal pettiness, doctrinal disagreements, or even just clumsy design like the change management process described above is irrelevant. In all of those cases, the problem is the same, decreased respect for institutional norms. Studies have found that “…corruption corrupts”:

Gächter has long been interested in honesty and how it manifests around the world. In 2008, he showed that students from 16 cities, from Riyadh to Boston, varied in how likely they were to punish cheaters in their midst, and how likely those cheaters were to then retaliate against their castigators. Both qualities were related to the values of the respective cities. Gächter found that the students were more likely to tolerate free-loaders and retaliate against do-gooders if they came from places whose citizens took a more relaxed view on tax evasion or fare-dodging, or had less trust in their courts and police.

If opinions around corruption and rule of law can affect people’s reactions to dishonesty, Gächter reasoned that they surely affect how honest people are themselves. If celebrities cheat, politicians rig elections, and business leaders engage in nepotism, surely common citizens would feel more justified in cutting corners themselves.

Taking a relaxed attitude toward the design of a social system can result in its constituents taking a relaxed attitude toward those aspects of the system that are inconvenient to them.

What Customer-Centric Looks Like

My last post, “Defense Against the Dark Art of Disruption”, went into some detail about notable failures in customer-experience for 2016. This week, however, I ran across a counter-example (h/t to Tim Worstall) showing that a little social media awareness and a customer-centric culture can make magic:

A baby products company is launching a special run of ‘little blue cups’ for a 13-year-old boy with autism following a global appeal by his father.

Ben Carter, from Devon, will only drink from a blue Tommee Tippee cup, prompting father Marc to put out an appeal on social media after becoming concerned the cup was wearing out.

Ben would refuse drinks that were not in the cup and had been to hospital with severe dehydration.
His father, tweeting as @GrumpyCarer, prompted people across the world to look through their cupboards for identical cups or to spread the #cupforben message. His request was retweeted more than 12,000 times.

Tommee Tippee, based in Northumberland, said it was nearly 20 years since it had manufactured that product, but has now rediscovered the design and found the mould used to make the two-handled originals, stored in a usable condition in China.

It has said it will make a run of 500 cups to ensure ‘that Ben has a lifetime supply and that his family won’t ever have to worry about finding another cup’.

 

While I don’t know what it cost them to find the molds and run a one-off batch of cups, I suspect that the value of the positive global media coverage should substantially offset it. As a father, I know that the gesture was priceless.

Win-win.