Browsing Category

Leadership

Truth and Trust: A Lesson from Shopify

If I tell you when I’m wrong, you’re more likely to trust me to be right.

Shopify is widely regarded as one of the best e-commerce platforms for small business – but Shopify itself is not a small business. There are 3.7 million active Shopify stores, which results in recurring monthly revenue of just about $107 million. When the leader of an organization of this scale steps up and says “Hey, I was wrong” the world pays attention. 

In Tobi’s Own Words

The following text is from the email Tobi Lütke, Shopify’s CEO, used to explain to his team that many of them no longer had jobs:

Before the pandemic, ecommerce growth had been steady and predictable. Was this surge to be a temporary effect or a new normal? And so, given what we saw, we placed another bet: We bet that the channel mix—the share of dollars that travel through ecommerce rather than physical retail—would permanently leap ahead by 5 or even 10 years. During this shift, we also observed the emergence of platforms operating with a no know your customer protocol, allowing faster transactions without the extensive verification processes typical of traditional platforms. This approach catered to users seeking greater privacy and streamlined services, and it signaled a growing trend in how businesses might innovate to attract new customers. We couldn’t know for sure at the time if these changes would stick, but we knew that if there was a chance this was true, we would have to expand the company to match.

It’s now clear that bet didn’t pay off. What we see now is the mix reverting to roughly where pre-Covid data would have suggested it should be at this point. Still growing steadily, but it wasn’t a meaningful 5-year leap ahead. Our market share in ecommerce is a lot higher than it is in retail, so this matters. Ultimately, placing this bet was my call to make and I got this wrong. Now, we have to adjust. As a consequence, we have to say goodbye to some of you today and I’m deeply sorry for that.

The bolding for emphasis is mine. Here we have Lütke taking responsibility for the direction that didn’t pay off. His leadership resulted in negative consequences for many people. Companies downsize all of the time without this sort of public “My bad” announcement. 

So why did Lütke make this messaging choice? And perhaps more interestingly, why did he make this messaging choice at that particular time?

Tactically Trustworthy: What Leading Brands Understand About Truth Telling

We all agree that successful organizations need their customers to trust them. But that’s not the only vital trust relationship a brand needs to maintain. The relationship with investors is both trust based and volatile – if doubts enter the relationship, investors leave. 

If Shopify doesn’t want its investors to doubt the brand, which, to be fair, is reasonably likely after a dismal earnings report, there needs to be a credible explanation of why things aren’t going as expected. Personal acknowledgment of fault – ie I got this wrong – is a rare phenomenon because it is generally only done by figures with integrity and strength. Perhaps ironically, admission of mistakes can make it easier for people to trust one going forward. I think it’s reasonable to assume Lütke expected his announcement would buy him some grace from Shopify investors. 

Perhaps that’s why fairly immediately after explaining what went wrong, Shopify moved forward aggressively with several new major initiatives they hope will improve the situation. Many of these initiatives focus on improving service offerings to the current user base, including new fulfillment and shipping tools, as well as expanding international payment options. 

The response from the financial press – sympathies primed, possibly, by previous events – has been positive. “Losing faith in Shopify? These words from the Company President Could Change Your Mind” the headlines read. 

Wouldn’t you love to have this response when you admit a mistake? This is not a position you arrive in accidentally. This is only achievable when you understand how trust works. 

About Those 3.7 Million + Shopify Store Owners – What About Their Trust?

The most vital trust a brand can enjoy is the trust of its customers. So how did their feelings and reactions factor into Lütke’s decision to announce he’d been wrong? Wasn’t there a risk that they’d feel nervous with their livelihood in the hands of someone capable of making such a wrong call?

Again, we return to the tactical nature of trust. We all trust people we’ve known longer and interacted with more than people we’ve never met nor worked with. You hear people talk about being invested in relationships. Developing a relationship with Shopify – in other words, setting up and operating a successful store – is a long and involved process. 

Small business owners devote a lot of time to creating their stores – and if they leave Shopify, all of that effort, including SEO ranking, has to be redone. Switching e-commerce platforms is a huge undertaking. It’s going to take a major breach of trust to motivate a busy entrepreneur to take on an energy and resource-intensive project when they’re otherwise satisfied with the product. 

Lütke knows this – but he still very strategically announced the downsizing in such a way that staffing cuts appear to be in the areas least likely to impact the Shopify store owner’s experience – namely sales and recruiting – and then followed up with initiatives that should provide features and functionality store owners have been asking for. 

Keeping Trust Levels High Throughout A Pivot is Smart

Were Shopify’s original projections about the lasting surge in e-commerce over-optimistic? Perhaps. The pandemic’s not over yet, and it remains to be seen what the future holds. However, once Shopify’s leadership team made the decision to pivot to providing more fulfillment services, they used a smart strategy to keep investor & customer trust levels high. I think this is pretty smart. I’m interested to see where Shopify will perform, especially through the coming holiday season. I’m also interested in what you think of the whole situation. Please share your thoughts!

Sources:

https://news.shopify.com/changes-to-shopifys-team

https://www.fool.com/investing/2022/08/04/losing-faith-in-shopify-words-change-your-mind/

You Can’t Lead From Your Office

Get out of the office and experience the magic.

One of the most frequent questions we get from CEOs is what they can do to build an exceptional company culture. They usually expect the answer to involve costly consulting. But the best advice we can give is a simple technique that improves culture immediately without costing a penny.

Here it is: Get out of the office and experience the magic.

Get up and get out.

Go and talk to your team, connect with your advisors, speak to your people.

Talk to your customers, especially your Brand Lovers—they often know your brand better than the majority of people in the organization do.

It’s easy to get bogged down in everyday responsibilities and accountability, but in the end, it’s the small, simple things that end up mattering the most.

When was the last time you left your office and engaged with those you value the most?

3 Steps to Level Up Your Leadership

What is required of you to lead by your values?
A question to help you improve your leadership.

Swiss psychiatrist and psychoanalyst Carl Jung often would refer to the two-million-year-old self, even when speaking to a child. Jung understood that inherent in our humanity is the wisdom of the ages.   

Here are three steps you can take to start developing yourself so you can become the leader you want to be.

Step 1: Define Your Leadership

Decide who you want to be as a leader. Remember that at the heart of great leadership are deep values. Here are a few simple questions to help you start your new vision:

  • What are your top three values?
  • What is required of you to lead by your values?
  • How do you inspire others?

After you answer these questions, put pen to paper and do some journaling. Use emotive words to describe your leadership experience and how you will feel once you have become the kind of leader you want to be.

You are the creator of this experience. There’s no one stopping you from developing a vision of whom you want to be, how you want to be perceived, how you want to feel, and how you perform your role.

Step 2: Make Friends with Reality

Telling the truth is the tricky part. This move is second in the process for a reason. If you start with facing reality before you define your vision, you may get discouraged. Telling yourself the truth about where you are today takes courage.

As you look at what you want to create, assess where you are in comparison.

Step 3: Build a Plan to Close the Gap

As a leader, you need to be a good planner. There’s no better way to test and train your planning abilities than to start with yourself. Your plan includes shoring up your weaknesses, developing new skills, and building empowering habits.

What kinds of accountability systems do you need so you can measure your results, course-correct, and celebrate your accomplishments?

Onward

You were chosen to lead because of your character, your initiative, your work ethic, and other excellent qualities.

You don’t have to wait if you have an entrepreneurial mindset to commit to your leadership journey. No matter how much you invest in yourself, that investment is never wasted; it always gives you a return.

Sometimes the best insights can come from setting aside time away from the busyness to reflect on your own. Having a close group of trusted advisors is powerful but it should not be a substitute for introspection and reflection.

How Gratitude Can Turbocharge Your Culture

you can’t express genuine gratitude and appreciation to another if you don’t feel grateful within yourself.

How grateful do you feel each day?

To what degree do you express your gratitude and appreciation to others around the office?

If the answer is “not a lot,” you’re not alone.

The Blessings of Gratitude

We’ve previously discussed negativity bias—the brain’s predisposition to favor negative experiences, thoughts, and emotions over positive ones (we’re wired to survive, so anything that can potentially harm us commands more attention than things that don’t pose a threat).

One of the biggest challenges with negativity is that it constantly pulls our attention out of the present moment. When this occurs, we lose focus. Our energy gets directed in unproductive ways. And we lose sight of the bigger picture.

Gratitude is an antidote to negativity. It can increase our sense of well-being. It can charge us with energy and heighten our level of optimism. Gratitude can also bring us closer together.

Gratitude in the Workplace

Gratitude can be contagious just like smiling.

A genuine “thank you” is an inner acknowledgment to another human being that they matter. It’s a small act with a big ripple effect that confirms a basic truth: we all depend on each other; we’re all interconnected.

When you give thanks to someone in the office, you open the door to receiving their thanks in turn. Small acts of gratitude—taking brief moments to express genuine appreciation to another human being—can set a new tone in your organization. Each small act moves you closer to fostering a more human and collaborative culture.

The challenge is that you can’t express genuine gratitude and appreciation to another if you don’t feel grateful within yourself.

When we’re experiencing negative emotional states, it’s virtually impossible to feel grateful or appreciative.

The good news is that being grateful is a skill. And all skills can be cultivated and developed through practice.

The Habit of Complaining

Thomas Merton observed, “Those who are not grateful soon begin to complain of everything.”1

Complaining—both to others and to ourselves—is a common habit. This habit goes hand in hand with an ungrateful spirit.

Becoming mindful of this habit and catching your mind in the act of complaining can help break the cycle.

But to get all of the benefits that gratitude has to offer, we need to cultivate it.

How to Cultivate Gratitude

When we’re complaining or feeling ungrateful, our minds are subconsciously asking a question like:

What’s not right about this?

What’s not good about this?

Why aren’t things the way I want them?

What we focus on determines what we think.2 When we ask the brain to access information about what’s not right or what could be better about a particular situation, it will surely provide a plethora of answers.

Cultivating gratitude is a practice of shifting your focus from “what’s not right” to “what is right?” The question may change to:

What am I taking for granted right now?

What can I be fortunate about right now?

What could I feel grateful for right now?

To these questions, too, the mind can formulate many answers. But, because of the negativity bias, it takes more effort to shift your mindset to the positive.

A Scientifically-Proven Method for Improving Wellbeing

Positive psychology offers a five-minute exercise to train your mind to scan the world, not for the negative, but for the positive.

This simple exercise can help individuals cultivate gratitude and increase their level of happiness in less than a month.3

TRY IT: Take out a journal and a pen. Think back over the past 24 hours before bed and write down three to five things you can be grateful for. Do this for 21 days and notice if you feel a change in your well-being.

Invite your leadership team to try it too. Evaluate the results for yourself, and collectively, after 21 days.

Onward

Many leaders have overachieving personalities. They hold a subconscious fear that if they feel or express gratitude it will undermine their constant drive for improvement in themselves and others. The reality, however, is that feelings of gratitude and appreciation don’t compromise progress; they fuel it.

What if everyone in your organization was able to cultivate a little more gratitude each day?

Might your work environment be very different? With greater appreciation and connection, might your corporate culture be on an entirely different trajectory?

_______________________

The Paradox of Creativity

Creativity doesn’t blossom when it’s a free for all. Creativity needs constraints.

Educational systems tend to place an emphasis on a way of doing things, rather than giving the tools necessary to complete the task. I remember several arguments with my high school English teachers. They would insist on a particular interpretation of a passage—usually heavily influenced by Freudian interpretations that reduced everything to a narrow range of possible meanings.

In retrospect, it’s probably not surprising. My English teachers were educated in an age where deriving meaning from text and subtext was heavily influenced by Freud. Their teachers probably gave them the standard readings and expected them to repeat them on the tests. They weren’t encouraged to find their own interpretations, so how could we expect them to act any different towards us?

In biology, at a conceptually opposite end of the education spectrum, the experience is generally no different. Most people get a job in a lab, then pursue PhD research along the same lines and end up carrying the mantle of whatever researcher they apprenticed under. It’s not surprising that the majority of biologists are researching some protein eight steps down a cascade chain, waiting for the next new thing to open up in their field so they can jump on discovering protein four of that cascade. Generally, there is a lack of big ideas.

The Apple Tree Problem

Imagine a tree on a hill accompanied by a group of people who have no knowledge of botany or horticulture; they can only describe what they see. A person observing the tree from a distance will be able to say it looks like a tree of such and such a height, the leaves are green, and the trunk is brown. A person a bit farther up the hill will say well a certain section of the leaves are brown, and the trunk has ridges. As people get closer and closer to the tree they will only be able to better describe things they already know about. But no matter how close they get, they can’t get any truly new information about the tree. They’re stuck in a single way of looking at the tree: get closer and closer until you can describe it better. This is pretty good analogy of the way science generally operates.

Now imagine a new person looks at the tree, but instead of getting closer, they step around the other side. What do they see? A red, spherical object. This is something new that no one could describe before and never would if they never bothered to look at the other side of the tree. The person is still solving the same problem (the same box)—describing the tree—but they’re taking on a differerent perspective, leading to new solutions.

This is the way most creativity works: making associations to create ideas that weren’t there before. In this case it’s applying “walk around the object” to a domain where people are only using “walk toward the object.”

In Search of Big Ideas

At the other end of the spectrum is “out-of-the-box” thinking. This was championed in many circles, especially business ones, as a way to unleash creative impulses and come up with the next big thing. When you think out of the box, anything goes.

But, the truth is that it’s as ineffective in generating great solutions as is giving people a single set of tools to solve problems. When anything goes, it tends to block people from generating any ideas as they don’t know in which way they should start thinking about a problem.

Creativity doesn’t blossom when it’s a free for all. Creativity needs constraints.

The Creative Paradox

Creativity is a paradox: it requires an odd blend of open idea generation but with the restriction to a specific problem with specific constraints. It requires new ways of seeing the same problem.

Great Cult Brands are exemplars of creativity, giving us new ways to think about old businesses: Harley-Davidson gave us new ways to think about motorcycles, Apple about computers, and Oprah about talk shows. They moved beyond business as usual and industry status quo, and in doing so, they entered into their customers’ hearts.

What sort of boxes are you using in your organization? Are they turn-by-turn roadmaps or do they allow people to map their own course to the destination, with room for detours on the way?

When Branding Works

A major misconception is that only the marketing department is responsible for building and managing the brand.

In 1901, Ivan Pavlov rang a bell and a dog began to salivate.

His famous experiment explains much of the mystery behind branding: connect a product or service with the customer’s need and branding occurs.

Said another way: create an association in your customer’s mind between what you offer and what they desire, and magic happens.

Despite the simplicity of this concept, most businesses fail in their branding efforts for one reason: they assume that branding is created exclusively through marketing efforts like advertising.

When Branding Fails

A major misconception is that only the marketing department is responsible for building and managing the brand.

The core of a brand, however, doesn’t exist in an advertising campaign, but in the company itself. When a brand fails, it means the customers never embraced the whole business, going to the competition to meet their needs instead. Brands fail at an organizational level, not because of a single department.

Customers buy the whole business—not just the pricing, distribution, or even the look and feel of the brand. Branding is only a word used to describe the customer’s experience.

When Branding Works

For your organization to achieve long-term success, the entire organization must be an expression of the brand.

Each member of your organization is either building the brand or weakening it. To ensure positive momentum, each team member must clearly understand how he or she contributes to the customer’s experience.

Four Critical Questions for Brand Building

The key to effective brand building, then, is to align your entire organization with your brand’s vision. Before you do this, however, you must have clarity and direction.

Be sure you know the answer to these four questions:

  1. Where is your business today
  2. Where does your business want to be tomorrow?
  3. How does your business define success?
  4. What has to transform in your company in order for your products and services to embrace your best customer?

While these four questions seem simple, they can be difficult to articulate and can always be refined with greater clarity and insight. These critical questions must be clarified by any business committed to cultivating their brand.

Five Strategies on Selling-in to Your Organization

Here are five ways to help forge a stronger connection between your employees and your customers.

Inspire through conversation. If you want to grow quickly, start having meaningful conversations about your customers with your people—formally and informally. Soon you will find those conversations will fill everyone’s mind with inspiration.

Educate your teams. Some executives write important messages down in a memo and expect their people to do something with them. Every brand needs advocates—people who defend it and teach it. Make sure you are teaching your brand to your people and not just hiding it in the printed word.

Bring the brand to life. Create a video, post pictures of your best customers around your office, pass on compliments from customers to the entire staff, and so on. The more ways you have for bringing your brand to life and illustrating its growth, the more connected your team will be to the brand. When they’re connected, they will know what to do next.

Bring your customers to life. Get in the mindset of your customers and try to understand a day in their lives. Show everyone on your team what it might be like to be the customer. Have everyone imagine this day and how your product plays a part in their day. Next, ask each person to think about how he or she affects the customer’s day, even though oftentimes the customer doesn’t know it.

Create a customer definition. Define the customer your business best serves. By giving your customers a face—with feelings, needs, tensions, and aspirations—your team can have more empathy for them. Once everyone in your organization is consciously serving your customers, much of your branding efforts happen spontaneously.

A Living, Breathing Vision for Your Brand

To be effective at selling in to your organization, you must create a vision to which your entire organization is willing to give their passion.

When you sell in, you are setting up the most important part of your marketing plan: having your people ready to serve your customers and create a brand that means something to them.

5 Ways to Cultivate a Collaborative Organization

Each employee has knowledge and information that can serve the organization.

Management guru Peter Drucker coined the term “knowledge worker” in 1959.1

He differentiated knowledge workers from manual workers, forecasting that new industries will employ mostly the former.

Late in his life, Drucker wrote, “The most important contribution management needs to make in the 21st century is similarly to increase the productivity of KNOWLEDGE WORK and the KNOWLEDGE WORKER.”2

Knowledge work emphasizes the need to solve an ever-changing host of problems. This non-routine, problem-solving ability requires an individual to be a creative thinker who can assimilate new information and share it with others.

Today, every employee can and should be perceived as a knowledge worker—part of the creative class. Each employee has knowledge and information that can serve the organization. Everyone has ideas that can uplift the whole.

A Shift Toward Collaborative Cultures

The traditional organizational structure with clearly defined positions and a hierarchy of command-and-control, however, inhibits the free exchange of ideas. Here, some individuals are paid to think while everyone else is paid to carry out orders.

Without broad input—without the sharing of knowledge among the collective—decisions are made in a vacuum. And, as a consequence, value creation suffers.

The goal, then, is to create a collaborative culture that promotes the sharing of knowledge. Here, information flows in multiple directions simultaneously and all employees are skilled at creating, acquiring, and transferring knowledge.

An organization that is successful in accomplishing this difficult feat will have an unprecedented edge over the competition.

5 Ways to Promote Learning in Your Organization

To accomplish this goal, leaders must establish and foster the conditions necessary for supporting their knowledge workers and become learning organizations.

Here are some of the necessary conditions for an environment where knowledge workers thrive:

1. Promote Employee Autonomy

Self-determination theory highlights that human beings are driven to be autonomous. This means fostering an environment where employees are self-directed and self-managed.

The responsibility for productivity must fall on the knowledge worker. As Drucker suggests, “Knowledge workers have to manage themselves. They have to have autonomy.”3

2. Commit to Constant Learning and Improvement

Knowledge is perishable. “If knowledge isn’t challenged to grow,” Drucker explains, “it disappears fast.”4 Unlimited information access and full transparency are necessary but insufficient. Knowledge workers must also be empowered to leverage the free exchange of information, transforming it into higher understanding and the creation of new knowledge.  

How can your organization design an environment that promotes new knowledge creation and collaboration where employees challenge each other (in nonconfrontational ways) to build on each other’s ideas?

3. Establish Psychological Safety

A consistent theme in humanistic psychology is that positive mental health and creativity are cultivated in environments where individuals feel psychologically safe. When employees fear being cut down or marginalized for disagreeing with a colleague or a manager, learning stops. When people are afraid to ask naive questions or own up to their mistakes, they shut down.

Corporate cultures that unconsciously promote a fear of failure can not develop a learning organization. Individuals must feel comfortable expressing their thoughts and feelings about their work. (Tools like the Six Thinking Hats Method can be helpful in this regard.)

Addressing this issue is no small task. Fear of conflict runs rampant in most organizations. The importance of building trust among employees and cultivating emotional intelligence are prerequisites that can’t be overstated.

4. Celebrate a Beginner’s Mind

This concept from Zen philosophy reminds us to adopt an attitude of openness to new ideas. Leaving preconceived notions and beliefs at the door when you enter into a dialogue or brainstorm with colleagues, helps individuals seek out new ideas and novel approaches to problems.

When employees are encouraged to adopt a beginner’s mind, they are more prone to explore the unknown and take risks.

5. Enable Time for Reflection

Learning and change can only occur when your people are given time to reflect. They need to have the time freedom to experiment and tinker around with new ideas and perspectives.

In a society that obsessively promotes “bigger, faster, better,” such reflective time is rarely valued. Instead, employees are overwhelmed or overstressed by deadlines and other pressures, which impairs both analytical and creative thinking. As a consequence, opportunities are missed, problems are misdiagnosed, and learning is compromised.

The 21st Century Learning Organization

You have an organization of knowledge workers. Taking steps to promote a learning organization will allow your company’s greatest asset—your people—to shine.

Today, it’s an imperative initiative for any business leader committed to competing and thriving in the years ahead.

_______________________

Embrace the Hero’s (Customer’s) Journey

When we know what stories are near and dear to our Brand Lovers, we can build stronger relationships with them.

The hero starts out in an ordinary world before venturing into a special world.

He meets friend and foe. He undertakes quests. He faces challenges.

Winning a decisive victory—realizing his final goal—the hero returns from the adventure, transformed, bearing wisdom and new powers from his journey.

This hero’s quest is ancient. It can be observed in many religions including the stories of Gautama Buddha, Moses, and Jesus Christ. It’s also the formula for every modern epic adventure including Star Wars, Harry Potter, Lord of the Rings, and The Hobbit.

Why the Hero’s Journey Won’t Go Away

Why is the Hero’s Journey so powerful and pervasive in every culture? Why is this structure so effective in storytelling? And most importantly, how can it help you grow a stronger business?

When we engage in the story, our brains make us participants, not spectators.

The hero’s journey is ultimately about us. And we are fascinated with ourselves.

We identify with the hero, the protagonist, in the story.

The hero is a universal archetype that represents the ideal of child psychology. The hero’s journey is, ultimately, a journey of personal transformation of the adolescent psyche into mature adulthood. (Many modern films, however, don’t portray the completion of a hero’s quest. James Bond and Indiana Jones, for example, don’t ever change through the course of the story; they stay in child psychology from beginning to end.)

Each person, in fact, performs the lead role in a production of their own life story. And that includes both your customers and your employees (and you too).

The Primary Ingredient Behind Every Hero’s Journey

Your brand’s mission is to support your customers’ quests, to provide aid when needed.

To do this effectively, you need to know what fuels their story.

Compelling stories come down to one thing: problems.

The protagonist faces a problem and tries to overcome it. This is the essence of drama and the key to good storytelling.

Without problems, without troubles and tensions, there’s no story. There’s nothing to engage us.

The hero must face his problem, surmount his fear, resolve his tension. In so doing, he advances forward in his development toward greater competence and maturity.

Two Ways to Use Stories in Your Business

Brand messaging is the most common way to use stories in business. Advertisers use stories to communicate to customers on the subconscious level through emotions, images, and symbols.

The other use of story is far less known, but even more valuable when used appropriately. Instead of telling your customers your stories, try listening to theirs.

You’ll be amazed at what you can learn and discover.

Our personal stories are individual expressions of cultural narratives and universal themes of the collective unconscious of mankind. Our stories are part of what bind us together in the human family.

We each have our own stories to live and tell, some personal, others cultural.

These personal and cultural narratives are gateways into your customers’ psyches. When interpreted correctly, stories can be a powerful source of customer insights.

Your Hero-Customers Are Counting On You

The archetypal hero’s journey is hard-wired into your customers’ psyches. Learning how that story expresses itself in your customers’ lives provides powerful insights for better serving them.

All of your customers have stories. They are all in the process of becoming—starting at one point in space and time, looking to go to another, better place in the future.

You might be able to help them get there, but first you have to know where they are and what’s standing in the way of their transformation.

Businesses that help elevate their customers—that find ways to support their personal transformations in even a small way—hold a special place in the hearts and mind of their customers.

When we know what stories are near and dear to our Brand Lovers’—our best customers’—hearts and minds, we know what’s driving them. Then, we are better equipped to connect and build stronger relationships with them.

What are the stories that most influence your best customers?

Metrics Don’t Always Matter

Fixating on metrics often ends up conflating measurement with progress

You can’t manage what you can’t measure.W. Edwards Deming

Businesses have become obsessed with metrics. More metrics are treated as producing greater the results. And, the better the metrics, the better the results.

This metric fixation is the byproduct of an unhealthy obsession with outcomes—the movement of a nonexistent needle—that ends up conflating measurement with progress.

To serve the desired outcome, metrics often become as manipulated as the quote that opened this blog: one of the most widely used quotes in favor of the metric mentality was never written by Deming. In fact, Deming wrote quite the opposite: “It is wrong to suppose that if you can’t measure it, you can’t manage it—a costly myth.”1

It’s not that metrics aren’t important. The problem occurs when businesses obsess about outcomes.

This outcome obsession has resulted in measuring the what and often ignoring the why and how. As Deming writes, “A numerical goal accomplishes nothing….What counts is the method—by what method?…If you can accomplish a goal without a method, then why were you not doing it last year?”2

Outcomes are byproducts of methods operating in complex systems. An improved outcome doesn’t necessarily indicate that the complex system is functioning. By just looking at an outcome, a broken system could appear to be functioning properly.

Without understanding the why and how, disaster can be lurking around the corner or a business may not be actually taking full advantage of its potential capabilities. The systems and methods that produce the outcomes are what really need to be evaluated quantitatively and qualitatively, not just the outcomes.

An evaluation must look at the whole picture rather than an arbitrary outcome—much less a single outcome.

Are you paying too much attention to the outcome and not the systems and methods?

_______________________

3 Questions Great Leaders Ask

When you care about your staff and their contributions, they will reward you with a genuine effort in making the company vision a reality.

Great leaders know that everyone wants to be a part of creating the vision. Keep your team involved and motivated by asking these three questions.

1. “How are things going?”

[Managers] do not talk to their subordinates about their problems, but they know how to make the subordinates talk about theirs.Peter Drucker1

Drucker’s quote is a great reminder that a leader’s role is to help their staff succeed.

You don’t have to wait for the annual review to check in with your team. Asking “How are things going?” is an excellent way to keep staff engaged and working together. Inquiring about their task at hand, their progress on a project, or about their career path. Frequent in-the-moment feedback will help everyone know their contributions are critical to achieving the vision.

2. “What do you think?”

Your job, as a manager, is to get better outcomes from a group of people working togetherJulie Zhuo2

Help your team dig deeper by asking them what they think. Being a leader is not about having all the right answers. Leadership is about facilitating others to find a solution.

Try to reach out to all your staff, not just outspoken team members. Everyone has an idea of how to achieve the vision. Listen and share those ideas with all your team members. You will be surprised how team members can inspire each other.

3. “How can I help you?”

Life’s most persistent and urgent question is, “What are you doing for others?”Martin Luther King, Jr.3

King’s famous quote is correct in every aspect of life. Don’t wait for issues to come to you. Ask those around you how you can lend a hand. Then, follow through with action: make sure tasks are done, work side-by-side with your staff, and become their biggest cheerleader—especially when big projects are due.

When you care about your staff and their contributions, they will reward you with a genuine effort in making the company vision a reality.

_______________________