Why You May Need A Wicked Strategy

3D Circular maze

 

What do you do if you face a problem so complex that it can only be described as wicked?

Is it possible to confound competitors?

 

How Companies Conquer Complexity and Confound Competitors

John Camilius, author of Wicked Strategies: How Companies Conquer Complexity and Confound Competitors outlines a number of ways that managers can handle the most difficult problems. Camilius is the Donald R. Beall Professor of Strategic Management at the University of Pittsburgh.

 

“We shape our buildings; thereafter they shape us.” -Winston Churchill

 

For those who don’t know your work, what is a wicked problem?

In the early seventies, Horst Rittel and Melvin Webber, two professors of design and urban planning, recognized that there are certain problems that are not amenable to resolution by traditional, accepted problem-solving techniques. They evocatively labeled these problems as “wicked” and identified ten distinguishing characteristics. Ten characteristics are difficult to remember, and over the years, I have whittled them down to just five.  If a problem displays these five criteria, you can be pretty sure you are facing a wicked problem.Wicked Strategies John C. Camillus

The first characteristic is deceptively simple and requires some thought:  Is the problem one that is substantially without precedent, something that you have not encountered before?

Second, are there multiple significant stakeholders with conflicting values and priorities? You need to go beyond the traditional big three stakeholders—employees, customers and shareholders.  Non-government organizations, multiple layers of government, creditors, communities in which you are located, political parties in power and out of power are all becoming more significant and demanding.

Third, are there several causes and are they interactive and tangled?  For instance, the future of social media is driven by a complex brew of technology advancements in hardware and apps, changing demographics, evolving social and cultural mores, government regulations, privacy expectations, geopolitical developments, educational practices, disposable income, and economic and social mobility.

 

“If we don’t change direction soon, we’ll end up where we’re going.” -Irwin Corey

 

Fourth, there is no sure way of knowing you have the right answer. Another way of phrasing this is that there is no stopping rule—you can continue searching indefinitely for a “better” answer.

Fifth, the understanding of what the “problem” is changes depending on the “solution” being considered.  In other words, the problem and the solution are interactive. For instance, entry into a country that does not permit foreign multi-brand retailers might be accomplished by creating a cash-and-carry model for small retailers or by being a minority partner with a local retailer or by entering an entirely new business employing a distinctive competency such as logistics. Each of these responses to the wicked problem of accessing the huge purchasing power of emerging economies’ populations creates a wholly different set of issues.

A note of warning may be in order. In the public policy arena, the wickedness of problems is hard to overlook. Problems such as immigration policy, violence against women, religious fundamentalism, and public education are overtly wicked. In the business world, however, the thing about wicked problems is that though they can show up anywhere, they are likely to be perceived as “tame” problems.

Wicked problems are certainly more common than most managers realize. Not recognizing that they were facing wicked problems, I believe, led to the dissolution of Westinghouse, the demise of Polaroid, and the decline of Kodak, RadioShack and Atari. Though wicked problems can occur anywhere, it is more likely than not that you will encounter wicked problems if you are a public company, operate globally, and are in a technology-driven business.

 

“Every threat to the status quo is an opportunity in disguise.” -Jay Samit

 

3 Megaforces Challenging Business

You talk about 3 megaforces that are challenging business. How do these trends help create wicked problems?

While there are a variety of forces and environmental factors that can create wicked problems, over the years I’ve identified three forces that are widely experienced which, in concert, are a major source of wicked problems. They are: the inevitability of globalization, the imperative of innovation, and the importance of shared value. The first two forces are well understood. Shared value, which has been brought to the attention of the managerial world by Michael Porter, is the notion that social benefit and economic value are synergistic. It also raises the issue of the appropriate sharing of value across diverse stakeholders.

The interactions of these three forces create strategic challenges that combine to create wicked problems. For instance, innovating to meet the needs of unserved, low-income customers across the world results—as the guru of disruptive innovation Clayton Christensen has affirmed—in disruptive technologies that can upend industries. Innovation also creates changes that differentially impact stakeholders, creating the likelihood of conflict between stakeholders as the organization transforms. The extreme complexity and uncertainty embodied in the global economy coupled with the conflicting priorities of multiple stakeholders creates unknowable futures. This roiling cauldron of disruptive technologies, conflicted stakeholders and unknowable futures is what spawns wicked problems.

I like to illustrate the interaction of these forces in a Venn diagram.

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Three Mega-Forces and their Strategic Challenge

These three forces can interact to create wicked problems in any context. Of course, other environmental forces can also breed wicked problems, but I have chosen to focus on these three because they are so ubiquitous and powerful.

I believe there are business contexts or “industries” that will be breeding grounds for wicked problems. Health, software, information technology, fossil fuels, water, automobiles, and public transportation are prime examples. Technological innovation, drastically changing regulations, geopolitical developments, and changing notions of social responsibility make these industries particularly prone to encountering wicked problems that demand that firms develop and deploy wicked strategies. 

 

“The human spirit is to grow strong by conflict.” -William Ellery Channing

 

How to Deal With Uncertainty

Why Leaders Must Develop An Outward Mindset

The Outward Mindset

Develop the Outward Mindset

Your mindset is the key to your success, your happiness, and your ability to perform at exceptional levels. Your mindset is how you look at yourself and the world around you. An internal mindset is one blind to others, what they need, and how to create collective results.

Jim Ferrell, co-founder and Managing Partner of The Arbinger Institute is the author/co-author of multiple bestselling books, including Leadership and Self-Deception and The Anatomy of Peace. His latest book, co-authored with Mitchell Warner, is The Outward Mindset.

 

It’s as eye opening and important as his earlier work.

I recently spoke with Jim about his research on perspective and personal effectiveness. The ideas in this new book can improve performance, spark collaboration, and accelerate innovation.

 

“The secret to teamwork is an outward mindset.” –Steve Young

 

How to Change Lives and Transform Organizations

Would you introduce the concept of “The Outward Mindset”?

With an outward mindset, we see others as people like ourselves, whose goals, objectives, needs, and challenges matter to us. With an inward mindset, on the other hand, we see others as objects whose primary value to us depends on the extent to which we think they can help us with our own goals and objectives.

Our new book, The Outward Mindset, is about the key differences between these two mindsets and how to move to an outward mindset. The real-life stories in the book illustrate the dramatic difference in influence and results that individuals, teams, and organizations see as they shift to more of an outward-mindset orientation. The book details both how to personally make this shift and how to help others—individuals and whole organizations—to make it.

 

“Too many leaders assume that the role of leadership is to control.” –Jim Ferrell

 

Shift to the Outward Mindset

You share some powerful stories of shifting to an outward mindset. Are there “typical” difficulties and struggles in making this shift, especially if you found someone who was way off the scale on the inward side?

The biggest challenge is people linking their own mindset change to a change in others. When people have an inward mindset, they characteristically blame their struggles—and even their own mindsets—on others. They believe that they have to have an inward mindset in order to defend themselves against all the people around them who have an inward mindset. We demonstrate in the book how this belief is mistaken. We show that the most important move—both in organizations and in life generally— is for people to shift to an outward-mindset approach even when others around them persist in inwardness. This is a very powerful move, and the willingness to do it is one of the most important elements of transformational leadership.

As for someone being way off the scale on the inward side, most people are a mix of the two mindsets. Someone who is tyrannically inward in one part of their life, for example, may be quite different in other contexts. This means that people often are much closer to a change to an outward mindset than many people around them may believe.

 

“How much larger your life would be if your self could become smaller in it.” –GK Chesterton

 

The Incredible Results of an Outward Mindset

What results do you see after the shift has occurred?

Wow, it’s hard to know where to begin. At its most basic level, a change to an outward mindset transforms the health and vitality of relationships. It’s easy to see why this would be the case. When we are connected to others in an others-inclusive way—where we see others as people who matter like we ourselves matter—we tend to do much better with others (and they with us!) than when we are self-focused and see others as objects or tools to be used for our own purposes.

As a result of this transformational effect on relationships, one of the interesting things we often find in our work with organizations is that even the non-work relationships of the people we work with dramatically improve. I can’t tell you the number of times people have told us that our work has saved their marriages or healed the rifts in their relationships with their parents, siblings, or children.

For the same basic reason, a shift to an outward mindset in the workplace dramatically improves the abilities of teams, departments, and whole organizations to work productively together. These improvements show up in organizational climate, engagement surveys, customer satisfaction scores, and in the bottom line results of organizations.

Jim Ferrell

How does the outward mindset manifest itself in individual and team goals?

Although people generally aren’t aware of this, most organizational systems, incentives, and goals are inherently inward in nature. They invite people to focus on themselves and their own activities and levels of performance rather on the impact of their activities on others.

As a result, the move to an outward mindset often dramatically changes the objectives and metrics that people and organizations pursue and utilize. You can imagine, for example, how a person’s view of his own job responsibilities would change if he knew that he was responsible not only for certain outputs but also for the impact of those outputs (and the way he went about delivering them) on others.

When individuals and organizations get serious about moving to more of an outward-mindset approach, they start paying attention to and measuring their impact, not just their activities or outputs.

 

“All action results from thought, so it is thoughts that matter.” -Sai Baba

What To Do When Your Team Gets Stuck

When Teams Get Stuck

Why Teams Get Stuck

Jeff DeGraff is known as the Dean of Innovation. He’s a professor at the Ross School of Business at the University of Michigan and he has worked with some of the biggest global corporations ranging from Apple to GE to Coca-Cola.

I have personally called Jeff to help brainstorm issues and help jumpstart creativity. One of the many things I learned from Jeff was that innovation does not happen in the solitude of a eureka moment. It happens more often in teams.

So, what happens when a team gets stuck? I asked the Dean of Innovation to share his thoughts on why teams get stuck and what to do about it.

 

“Innovation is created as a result of constructive conflict.” -Jeff DeGraff

 

3 Common Reasons Teams Get Stuck

Organizations and teams alike get stuck for a wide variety of reasons, but there are three that are most common: 1). They have chosen the wrong people to lead the way 2). They spend too long in the planning cycle, and 3). They miss the key handoffs and get out of sequence.

Let’s take a look at how to resolve these issues:

 

1.They have chosen the wrong people to lead the way. 

Innovation project teams are like baseball teams. You need lots of different players to play different positions at different times. Start by tinkering with your lineup. Move folks around. Trade for better players and don’t be afraid to cut some players. Innovation teams are often led by command and control project leaders who have spent their careers eliminating variation; not creating it. Make the tough decision to move them along. Watch the movie Moneyball a few times, and you will get the point.

How Great Companies Fuel Innovation Through Diversity

Building Diverse Teams

The Power of Diversity

I’m a passionate believer in diverse teams. Throughout my life and career, I have seen the benefits from multiple perspectives examining a problem together. If everyone thinks exactly the same way, with the same background, you end up with a narrow solution. A lack of diversity increases the likelihood of strategic blind spots.

 

“If we cannot now end our differences, at least we can help make the world safe for diversity.” –J.F.K.

 

That’s why I read with great interest David Livermore’s new book, Driven by Difference: How Great Companies Fuel Innovation Through Diversity. David Livermore has written ten books on global leadership and cultural intelligence. He is president of the Cultural Intelligence Center and a visiting scholar at Nanyang Business School in Singapore.

 

“A lack of diversity increases the likelihood of strategic blind spots.” -Skip Prichard

 

The Goal of Diversity is Not Enough

In your book, you argue that diversity, as a goal, is not good enough. Would you elaborate on this?

I applaud any effort to hire a more diverse workforce. But if that’s all you do, you set everyone up for failure. “Different” perspectives, values, and strategies for getting work done easily lead to misunderstanding, frustration, and gridlock. Diversity needs to be managed with a culturally intelligent strategy for how to effectively use the diverse perspectives to drive innovation and improve employee engagement.

 

“The more diverse the team, the less likely participants will offer their input and perspectives.” –David Livermore

 

The Link Between Innovation and Diversity

You say that diversity by itself does not ensure innovation, but it does when combined with high CQ. What is CQ? What’s the link between innovation and diversity? 

Driven by DifferenceCQ, or cultural intelligence, is the capability to work effectively with people from different cultural backgrounds. It’s measured using a CQ Assessment, which predicts how effectively one will work in situations characterized by cultural diversity.

Our research finds that diverse teams comprised of individuals with low CQ underperform homogenous teams with low CQ. However, diverse teams comprised of individuals with high CQ outperform homogenous teams on several measurements including innovation.

Therefore, CQ becomes the moderating link between diversity and innovation. With higher levels of cultural intelligence, team members can effectively retain and use the differences among them that enhance creativity while minimizing the differences that create interference.

 

“Distraction is one of the biggest roadblocks to innovation.” –David Livermore

 

Prevent Diversity Fatigue

What’s diversity fatigue and how do companies prevent it?

Diversity fatigue is how I refer to the growing weariness felt by many staff when they hear they have to go through diversity training. Even individuals from underrepresented groups often place little hope or interest in diversity initiatives in the workplace. Research recently cited in the Harvard Business Review found that diversity programs did little to convince ethnic minorities that companies would treat them any more fairly than companies without the programs.

 

“The culturally intelligent are aware of how cultural differences influence the way team members approach a task.” –David Livermore

 

There are a variety of factors that contribute to diversity fatigue, several of which I explore more fully at the beginning of Driven by Difference. But the key to addressing this is for companies to take a more strategic approach to diversity. They need to address diversity the way they address other business opportunities and challenges—assess the situation, create a strategy, and form metrics for measuring accountability. If profits are slipping, companies don’t plan a “Profits Slipping Awareness Day” and then hope the awareness translates into better returns. It’s all hands on deck with everyone accountable. And then managers and teams need to be equipped with the skills to effectively use their differences to drive innovation.

 

“Smart, empowered teams are the best way to come up with successful products.” –David Livermore

 

In one chapter, you talk about focus and how the more personalities and cultures you have working together, the easier it is to lose focus. What’s the best way to experience the benefits of diverse thinking while also keeping focus?

It comes from clearly defining the goal (a key to retaining focus) while asking your diverse colleagues how they understand the goal. The goal may seem straightforward, such as reducing costs or improving efficiencies. However, the assumptions about how to most effectively reduce cost may be strongly influenced by one’s cultural values and assumptions. Focus comes from not quickly moving beyond the seemingly basic task of clarifying expectations and instead, using a diversity of expectations to more successfully achieve more innovative outcomes.

 

“Diversity: the art of thinking independently together.” –Malcolm Forbes

 

How to Build Trust With Diverse Colleagues

The Secret Weapon That Solves Your Toughest Sales Challenges

Secret Weapon

Dealstorming 

Is it possible to increase innovation in sales and achieve higher growth?

How can diverse perspectives increase your sales results?

Is there a consistent way to increase the likelihood of closing your biggest deals?

Does your organization have a high-potential opportunity?

 

Last year, I was presenting at a conference in Africa. The theme of the conference was based on an African proverb:

 

“If you want to go fast, go alone. If you want to go far, go together.” –African Proverb

 

That night, as I enjoyed a memorable dinner with the unique, powerful sound of an African choir ringing in my ears, I reflected on this proverb. Its wisdom struck me in a new way at a deep level. So many major corporate initiatives are stymied because one person wants to act alone. The motivation to act alone may be rooted in the idea of a hero, or it may be simply because someone wants to demonstrate personal accountability.

Still, going farther requires collaboration.

 

“The best sales-driven companies have developed the habit of conscious collaboration.” –Tim Sanders

 

Debunking Creativity Myths

Recent studies on innovation and creativity have debunked the myth that innovation happens in the eureka moment. I’ve interviewed numerous experts who tell me creativity happens more in teams than alone.

And so, when I read Tim Sander’s new book Dealstorming: The Secret Weapon That Can Solve Your Toughest Sales Challenges, I found myself smiling as I saw these truths eloquently memorialized and backed up with research and experience.

Dealstorming: The Secret Weapon That Can Solve Your Toughest Sales Challenges is a monumental book not only for sales leaders but also for all corporate leaders. Whether saving, reclaiming, or winning new business, the techniques Tim shares are proven and actionable. Every organization wants to improve its results, and this is the best blueprint for achieving higher growth that I’ve seen in years.

But, beyond the dealstorm, the techniques in this book teach collaborative practices. The relationships built in this process do not stop with the sale, but continue, fostering a sense of purpose well beyond the deal.

I’m convinced that the techniques in Dealstorming will help you close more business, build better relationships, and increase your organization’s creativity.

 

“Innovating is not a way of doing things; it’s a mode of thinking.” –Tim Sanders

 

How to Win the Complex Sale 

Many people think that the sales process is impossible to define and one where you just go with your gut. In your new book, Dealstorming: The Secret Weapon That Can Solve Your Toughest Sales Challenges, you reveal that the sales process is just the opposite: a structured, repeatable process any team can use to win the large, complex sale. What experience and research led you to this conclusion?

Over my 30+ year sales career, I’ve noticed that despite the sharpest of perspectives, without a process you get a mess. The Funnel Activity Management System has been in place for decades, where managers focus on key metrics like cold calls or closing ratios in order to produce a predictable level of sales. Or so one might think.

Throughout that process, the rep used his or her gut feeling to determine which product to pitch, how hard to close and when to move on. But today, that system is necessary, but no longer sufficient for landing high quality sales.

Around the turn of the 21st century, I began to develop the sales collaboration process I call Dealstorming. At Yahoo, while leading the ValueLab and then serving as Chief Solutions Officer, I had the opportunity to participate in 40+ strategic selling situations, where theories were tested and then measured in dollars and cents. Over the last decade, I’ve refined this process through my consultancy, where we’ve participated in 60+ dealstorms at a variety of business-to-business companies. The range of experiences has helped me create a scalable process where managers could leverage a few successful Dealstorms to train the Account Executive on how to run their own.

In writing this book, I have interviewed 200+ sales leaders to understand how they’ve approached problem solving at the deal level, and what works in today’s global-social-mobile world. Collectively, all of these experiences have produced a way of innovating at the deal level that will work for small businesses and enterprises alike. Sometimes the ‘storms will be terrific trios and in other cases, an alliance of many.

 

Copyright Tim Sanders. Used by Permission Copyright Tim Sanders. Used by Permission

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Know the 4 Levels of the Sale