STATUS QUO & The 20/60/20 Rule: How to Handle Misaligned Employees/Volunteers

by Brian Fielkow, Entrepreneur Magazine, 7/23/18.

… I first heard this concept referenced when I was an executive with Waste Management. Our CEO had been hired to turn the company around after a scandal. Legend has it, he called a leadership meeting and made this statement: “Twenty percent of you know where we are going and are on board with it. Sixty percent of you understand the need for change but are skeptical that we can really do this. My job is to win you over. And 20 percent of you do not agree with our plan and have already made up your minds about it. My commitment is to ensure you a fast and graceful exit.”

From that moment on, I have never forgotten the 20/60/20 rule. I urge you to keep this concept firmly in mind as you go about building your company. Trying to win over 100 percent of your team is a fool’s mission.

… 20/60/20 has no scientific basis. It is to make a point. Whatever the number is — 20 percent, 5 percent, 1 percent — most organizations have some employees who may never fit the culture, and your job as a leader is to either bring them fully on board or weed them out.

Read more at … https://www.entrepreneur.com/article/316461

#StMarksTX  #StLizTX

INNOVATION & Video of Simon Sinek graphing the “diffusion of innovation” & the “tipping point” at TEDxPuget Sound

Commentary by Prof. B.: As an early adopter (13.5%) I sometimes grow impatient with the slowness brought to the diffusion of innovation by the slow pace of the early majority and late majority.  As Sinek has pointed out, you cannot have a movement until you have attained 15-18% market penetration (the so-called “tipping point”) between the early adopters (me) and my colleagues/students (early majority).  Here is Simon Sinek graphing this relationship in a short 10-minute TEDx talk.

Read and watch more at … https://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action and https://startwithwhy.com/

ETHICS & Simon Sinek at TEDxPuget Sound on “How great leaders inspire action”

Commentary by Prof. B.: In my introductory course on leadership we discuss the importance and impact of ethical behavior in leaders.  We look at Alexander Hill’s three aspects of ethics: right action, just action and acting in love.  Hill bases these elements on a biblical and theological foundation.  Simon Sinek, author and futurist, describes these same three aspects of ethics in his TEDx talk on what inspires action in followers.

Read and watch more at … https://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action and https://startwithwhy.com/

Download the rest of the chapter “Becoming a Leader After God’s Own Heart” by Bob Whitesel in The Church Leader’s MBA: What Business School Instructors Wish Pastors Knew About Management, eds. Mark Smith and David Wright here > Ethics_Whitesel_10.09.

TIPPING POINT & We try to force the organization to tip early w/ strategies not proven or vented enough to succeed.

Quote by Bob Whitesel D.Min., Ph.D., 11/26/17 in a response to Jon Hunter in LEAD 600 discussing the tipping point principles of Malcom Gladwell, (2000). The tipping point: How little things can make a big difference. Boston: Little, Brown.

# diffusion of innovation Malcom Gladwell early adopters innovators laggards

STRATEGY & Moving To Blue Ocean Strategy: A Five-Step Process To Make The Shift

by Steve Denning, Forbes Magazine, 7/25/17.

In 2005, Blue Ocean Strategy, Expanded Edition: How to Create Uncontested Market Space and Make the Competition Irrelevant, a book by Professors W. Chan Kim and Rénee Mauborgne, launched a revolution in business strategy. After all, which firm would not to be operating in “uncontested market space,” where “competition was irrelevant”? Instead of struggling to survive in the bloody shark-infested “Red Oceans” of vicious competition, why not move to the “Blue Oceans” where there was little or no competition?

What inspired the authors was not “dividing up markets or the globe,” but rather organizations and individuals that created “new frontiers of opportunity, growth, and jobs,” where success was not about fighting for a bigger slice of an existing, often shrinking pie, but about “creating a larger economic pie for all.” The book was a publishing sensation. It sold more than 4 million copies and has been translated into 44 different languages.

Now, 12 years later, the authors offer an exciting new book that synthesizes their experience in assisting with the implementation of Blue Ocean strategy. The book, Blue Ocean Shift: Beyond Competing – Proven Steps to Inspire Confidence and Seize New Growth, is published this week by Hachette. It includes the experience of organizations large and small, for profit, nonprofit and governments.

In their work since the launch of their 2005 book, the authors have found three key components in successful Blue Ocean shifts:

• Mindset: The authors found that, as in the world of Agile management, Blue Ocean strategy is fundamentally a shift in mindset. It involves “expanding mental horizons and shifting understanding of where opportunity lies.”

• Tools: Successful implementers of Blue Ocean strategy have used practical tools to systematically “translate blue ocean thinking into commercially compelling new offerings.” Sporadic, one-off “Blue Ocean strategy” is one thing: systematically adopting Blue Ocean thinking is another.

• Human-ness: Successful implementers exemplify “a humanistic process, which inspires people’s confidence to own and drive the process to own and drive the process for effective execution.”

… The Five Step Process

The book offers a five-step process for systematically reproducing such strategic triumphs, and shows how a Blue Ocean initiative can be successfully launched in even the most bureaucratic organization that is trapped in a bloody Red Ocean. The five steps are:

1. Choosing the right place to start and constructing the right Blue Ocean team for the initiative.

2. Getting clear about the current state of play

3. Uncovering the hidden pain points that limit the current size of the industry and discovering an ocean of non-customers.

4. Systematically reconstructing market boundaries and developing alternative Blue Ocean opportunities.

5. Selecting the right Blue Ocean move, conducting rapid market tests, finalizing, and launching the shift.

Though this process, the organization is able to move from the limitations of competing within the existing industry (“settlers”) to migrate towards greater value improvement (“migrators”) and eventually towards creating new value for people who are not already customers (the “pioneers” of marketing-creating innovation.)

Professors Kim & Mauborgne (Hachette)

From settlers and migrators to pioneers: Image from from Blue Ocean Shift by Professors Kim & Mauborgne

The Trap Of Mere Product Improvement

In the process, the book shows how to move beyond the trap of merely focusing on making things better for existing customers. Thus, usually product improvement doesn’t lead to large new markets of those who were formerly non-customers. If it does, that is a happy accident, rather than the main goal. To get more consistent success in generating market-creating innovations, an explicit focus onattracting non-customers is needed. This includes (a) soon-to-be non-customers; (b) refusing non-customers and (c) unexplored non-customers.

Professors Kim & Mauborgne (Hachette)

Categories of non-customers: Image from Blue Ocean Shift by Professors Kim & Mauborgne

Read more at … https://www.forbes.com/sites/stevedenning/2017/09/24/moving-to-blue-ocean-strategy-a-five-step-process-to-make-the-shift/#5d7740327f11

non-churchgoers innovation adapters

INNOVATION & Research shows you don’t want to be too slow to adopt it… or too quick!

Commentary by Dr. Whitesel: This article from the Academy of Management points out that when innovations arise it is usually unhealthy to be too slow to adopt innovation … or too quick. Most of the “diffusion of innovationdiscussion has centered around organizations that are too slow to adopt innovation. But this research also points out that “innovators” who move too quickly also often become weak because of the lack of market support for the new idea. So the lesson is: don’t be too slow to adopt innovation… or too quick. A moderate pace of “early adoption” rather than the lauded “innovator stage” may be best.

How Established Firms Respond to Threatening Technologies
by Arnold C. Cooper and Clayton G. Smith
The Executive, Vol. 6, No. 2 (May, 1992), pp. 55-70. Published by: Academy of Management Retrieved from: http://www.jstor.org/stable/4165065

Abstract
Major product innovations that create new industries are considered from the perspective of established firms for whom the innovation poses a substitution threat. Based upon a study of eight young industries and twenty-seven leading “threatened firms,” common patterns of industry development are considered, as are the participation strategies of those companies that decided to enter the new field. The challenges and pitfalls that were often encountered are examined and implications are developed for firms that choose to enter threatening young industries. While there are no assured success formulas, the discussion highlights some of the problems that can be encountered and suggests possibilities for avoiding them. [image1.JPG]

Graph retrieved from http://innovateordie.com.au/2010/05/10/the-secret-to-accelerating-diffusion-of-innovation-the-16-rule-explained/

INNOVATION & Companies that were successful … either launched many innovations early or few innovations late.

Commentary by Dr. Whitesel:  This article points out that when it comes to “diffusion of innovation” that “…companies that were successful … either launched many innovations early or few innovations late.”  Thus companies that launch many innovations (and are not afraid to fail) will have more innovations that survive. These are the “serial innovators” mentioned by XXX.  But the second greatest source of innovation was late movers who carefully studied innovations before they launched them. The lesson is launch many innovation if you can, but if you don’t have that social capital then carefully consider new ideas before you launch them.

by Ronald Klingebiel and John Joseph, Harvard Business Review, 8/11/15.

“…companies that were successful … either launched many innovations early or few innovations late.”

Read more at … https://hbr.org/2015/08/when-first-movers-are-rewarded-and-when-theyre-not

Here is a diffusion of innovation diagram adapted from Gladwell and from http://innovateordie.com.au/2010/05/10/the-secret-to-accelerating-diffusion-of-innovation-the-16-rule-explained/

accelerating-diffusion-of-innovation-maloneys-16-rule