You can’t always get what you want…

Lucifer

You can’t always get what you want
But if you try sometimes well you just might find
You get what you need

When it comes to systems, you can’t always get what you want, but you do get what you design (intentionally or not), whether it’s what you need or not.

In other words, the architecture of systems, both social and software, evolve through some combination of intentional design and accidental emergence. Regardless of which end of the continuum the system leans toward, the end result will reflect the decisions made (or not made) in relation to various stimuli. Regarding businesses (a social system), Ruth Malan, in her February 2012 “Trace in Sand” post, put it this way:

I have been talking about agility in terms of evolutionary ecology, but with the explicit recognition that companies, comprised after all of individuals, attempt to speed and alter and intervene and interject and intercede and (I’m looking for the right word here) shape evolutionary processes with intentional actions — concerted, but also emergent from more and less choreographed, actions and intentions. Being bumped along by the unpredictable interactions of others, some from within, but also from “invasive species” from other ecosystems looking for new applications for their adaptable, mutable capability set.

Organizations create and participate in business ecologies. They build up the relationships that stabilize parts of the broader ecosystem, and create conditions for organizational forms to thrive there. They create products, they create the seeds of the next generation of harvest. They produce variants on their family tree, to target and develop niches.

Ruth further notes that while business adapt and improve in some cases, in other case they have “…become too closely adapted to and integrated within an ecosystem that has been replaced or significantly restructured by some landscape reshaping change…”. People generally refer to this phenomenon as disruption and the way they refer to it would seem to imply that it’s something that happens to or is done to a company. The role of the organization in its own difficulties (or demise) isn’t, in my opinion, well understood.

Last Friday, I saw a tweet from Noah Sussman that provides a useful heuristic for predicting the behavior of any large social system:

the actual reason behind the behavior:

It’s not that people are actively working to harm the organization, but that when there is no leadership, where there is no design, where there is no learning, the system ossifies and breaks down. Being perfectly adapted to an ecosystem that no longer exists is indistinguishable from being poorly adapted to the present context. I’m reminded of what Tom Graves stated in “The game of enterprise-architecture”: “things work better when they work together, on purpose”.

Without direction, entropy emerges where coherence is needed.

This is not to say, however, that micro-management is the answer. Too much design/control is as toxic as too little. This is particularly the case when the management system isn’t intentionally designed. Management that is both ad hoc and rigid can cause new problems while trying to solve existing ones. This is illustrated by another tweet from Friday:

The desire to avoid the “…embarrassment of cancellation” led to the decision to risk the lives of a plane load of “…foreign TV and radio journalists and also other foreign notables…”. I suspect that the fiery deaths of those individuals would have been an even bigger embarrassment. The system, however, led to the person who had the decision-making power to take that gamble.

The system works the way you built it, even when you didn’t intend to build it to work that way.

When One System Fails Another

Robinson Crusoe Shipwrecked

Ten days ago, when I wrote the post “Uber and the Cost of a Culture of Corruption”, I said that assuming there will be negative consequences (both legal and financial) from the incidents in the news, then it is in Uber’s best interests to fix the problem that led to them in the first place. The negative consequences are now becoming visible in the form of people abandoning ship.

Over the weekend, Uber’s president, Jeff Jones, resigned with the following statement:

I joined Uber because of its Mission, and the challenge to build global capabilities that would help the company mature and thrive long-term.

It is now clear, however, that the beliefs and approach to leadership that have guided my career are inconsistent with what I saw and experienced at Uber, and I can no longer continue as president of the ride sharing business.

There are thousands of amazing people at the company, and I truly wish everyone well.

Travis Kalanick’s announcement to Uber’s employees, while factually accurate (the decision did come after the announcement of the search for a COO), doesn’t quite convey Jones’ reasons for leaving:

Team,

I wanted to let you know that Jeff Jones has decided to resign from Uber.

Jeff joined Uber in October 2016 from being CMO at retailer Target. In 6 months, he made an important impact on the company—from his focus on being driver obsessed to delivering our first brand reputation study, which will help set our course in the coming months and year.

After we announced our intention to hire a COO, Jeff came to the tough decision that he doesn’t see his future at Uber. It is unfortunate that this was announced through the press but I thought it was important to send all of you an email before providing comment publicly.

Rachel, Pierre and Mac will continue to lead the Global Ops teams, reporting to me until we have signed a COO. Troy Stevenson, who leads CommOps, and Shalin Amin who leads brand design will report to Rachel Holt. Ab Gupta will report to Andrew MacDonald.

Thanks,

Travis

Jones is not the only Uber executive to resign this weekend. Brian McClendon, vice president in charge of Uber’s mapping, is “…leaving to return to his hometown in Kansas”.

These resignations are also not the only recent executive casualties. Ed Baker, vice president of product and growth, had also announced his departure earlier this month amid questions regarding his conduct with other Uber employees. This came after senior vice president of engineering Amit Singhal was asked to resign when it was discovered that he failed to disclose that he was investigated for sexual harassment while at Google.

It’s cliché to talk about people as assets, but for companies like Uber, their talent really does comprise the majority of their value. While the media will take note of high-profile departures like these, it would be a mistake to consider them the entirety of the damage. How many lesser known employees have left or will be leaving as a result of the recent scandals? How much potential talent will pass by opportunities at Uber due to what’s happened? In particular, how much harder will this make Kalanick’s search for a Chief Operating Officer who can turn things around?

If the talent drain is not quickly plugged, what happens to the quality of Uber’s service?

This situation perfectly illustrates the theme of organizations as systems. Uber’s software and business model have done well for it, but the culture created by the lack of leadership and lack of ethics of its management may well sink it. One bad component can bring down a system, whether software or social. The tragedy is that the innocent would be harmed along with the guilty.

Uber and the Cost of a Culture of Corruption

'Personification of the Faculty of Law' from the pedestal of the statue of Emperor Charles IV, Prague, Czech Republic - via Wikimedia Commons

Even before I hit the “Publish” button on Monday’s post, “Regulating Software Development”, I had already started composing this post in my head. In that post I had used the words “corrupt culture” in passing. I needed to expand on that, because I believe that’s what lies at the heart of Uber’s cascading collection of scandals.

Uber’s business model has always displayed a certain flexible attitude towards government regulation. Greyball represented a departure from dancing on the line to barging over it. Caught with their hand in the cookie jar, Uber has now announced “We are expressly prohibiting its use to target action by local regulators going forward”. I doubt this act of contrition on their part will be deemed sufficient.

In this environment, Susan Fowler’s account of her time at Uber becomes less of a “how could they be so stupid” story and more of a foregone conclusion. When, to all appearances, violating the law is part of your business model and you’re building software intended to thwart enforcement of the laws you’re violating, your moral authority is rather thin. In this type of culture, I’d imagine things like unwanted sexual advances and retaliation aren’t seen as a big deal, rather business as usual. Crossing lines, like other activities, becomes easier with practice.

Assuming that there will be negative consequences (both legal and financial), from these incidents, then it is in Uber’s best interests to fix the problem that led to them in the first place. This means radically changing Uber’s culture, otherwise new problems will continue to arise. Uber’s CEO has announced that the company is looking for leadership assistance:

“This morning I told the Uber team that we’re actively looking for a Chief Operating Officer: a peer who can partner with me to write the next chapter in our journey,” Kalanick said in a statement on Tuesday.

It remains to be seen whether this will represent a radical change in leadership or not. Anything less than a radical change will be unlikely to affect the current culture which appears to be a deeply entrenched. Debbie Madden, CEO of Stride, published an open letter to Uber’s Travis Kalanick on Wednesday. In “Dear Travis Kalanick: Here’s What You Must Demand From Uber’s New COO”, she noted that “Uber’s culture is broken and you need help to fix it”. She outlined seven steps to do just that:

Step 1: Change Uber’s core values

Step 2: Kill Greyball

Step 3: Adopt a zero-tolerance harassment policy and fire offenders

Step 4: Hire a strong head of HR and an employment lawyer and educate employees

Step 5: Fire or PIP each manager and HR employee who turned a blind eye

Step 6: Shift focus from individual productivity to team productivity

Step 7: Change your recruiting process

Uber isn’t the only organization in trouble due to a troubled culture. Volkswagen is in the same boat and it isn’t over yet. It’s reported that the pollution hidden by their cheating on emissions testing could contribute to the early death of 1,200 Europeans. It’s a solid bet that there will be more litigation to come.

Uber hasn’t killed anyone as a result of their corporate culture, but with their interest in self-driving vehicles, we should all be rooting for a turn-around in the ethics department. Uber can only exist in the future by eliminating the Uber of the past.

Fear of Failure, Fear and Failure

Capricho 43, Goya's 'The Sleep of Reason Produces Monsters'

Some things seem so logically inconsistent that you just have to check them out.

Such was the title of a post on LinkedIn that I saw the other day: “Innovation In Fear-Based Cultures? Or, why hire lions to be dogs?”. In it, Michael Graber noted that “…top-down organizations have the most trouble innovating.”:

In particular, the fearful mindsets that review, align, and sign off on “decks” to be presented to Vice President-level colleagues often edit out the insights and recommendations that have the power to grow the business in new ways.

These well-trained, obedient keepers of the status quo are rewarded for not taking risks and for not thinking outside of the existing paradigm of the business.

None of this is particularly shocking, a culture of fear is pretty much the antithesis of a learning culture and innovation in the absence of a learning culture is a bit like snow in the desert – not impossible, but certainly remarkable.

Learning involves risk. Whether the method is “move fast and break things” or something more deliberate and considered (such as that outlined in Greger Wikstrand‘s post “Jobs to be done innovation”), there is a risk of failure. Where there is a culture of fear, people will avoid all failure. Even limited risk failure in the context of an acknowledged experiment will be avoided because people won’t trust in the powers that be not to punish the failure. In avoiding this type of failure, learning that leads to innovation is avoided as well. You can still learn from what others have done (or failed to do), but even then there’s the problem of finding someone foolhardy enough to propose an action that’s out of the norm for the organization.

Why would an organization foster this kind of culture?

Seth Godin’s post, “What bureaucracy can’t do for you”, holds the key:

It lets us off the hook in many ways. It creates systems and momentum and eliminates many decisions for its members.

“I’m just doing my job.”

“That’s the way the system works.”

Decisions involve risk, someone could make the wrong one. For that reason, the number of people making decisions should be minimized (not a position I endorse, mind you).

That’s the irony of top-down, bureaucratic organizations – often the culture is by design, intended to eliminate risk. By succeeding in doing so on the mundane level, the organization actually introduces an existential risk, the risk of stagnation. The law of unintended consequences has a very long arm.

This type of culture actually introduces perverse incentives that further threaten the organization’s long-term health. Creativity is a huge risk, you could be wrong. Even if you’re right, you’ve become noticeable. Visibility becomes the same as risk. Likewise, responsibility means appearing on the radar. This not only discourages positive actions, but can easily be a corrupting influence.

Fear isn’t the only thing we have to fear, but sometimes it’s something we really need to be concerned about.


This post is another installment of an ongoing conversation about innovation with Greger Wikstrand.

Form Follows Function on SPaMCast 430

SPaMCAST logo

It’s time for another appearance on Tom Cagley’s Software Process and Measurement (SPaMCast) podcast.

This week’s episode, number 430, features Tom’s essay on product owners, Steve Tendon with more on TameFlow (in this episode, constraints), and a Form Follows Function installment based on my post “Leadership Anti-Patterns – The Thinker” (the third in a series on leadership).

The Thinker is a classic leadership anti-pattern hearkening back to Frederick Taylor. In essence, the leader does the thinking and the peons do the doing. What could go wrong? Tune in to hear Tom and I discuss all the problems this anti-pattern can bring.

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

Form Follows Function on SPaMCast 425

SPaMCAST logo

I’m ringing in 2017 with another appearance on Tom Cagley’s Software Process and Measurement (SPaMCast) podcast.

This week’s episode number 425, features Tom talking about annual tune-up ideas, Steve Tendon with more on TameFlow (re: kanban, flow, and throughput), and a Form Follows Function installment based on my post “Leadership Anti-Patterns – The Great Pretender”.

In my last SPaMCast segment, I discussed the Growler, which had elements of both pattern and anti-pattern. Not so the Great Pretender, it’s clearly an anti-pattern that is as if someone mixed impostor syndrome and the Dunning-Kruger effect together and skimmed off the most detrimental parts of each.

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

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]