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blog from Seth Godin on Unemployment, Entrepreneurship, and the future of business

My brother sent me this blog article today, from Seth Godin, best-selling author and marketing guru… it provoked me.  What do you think?

Toward zero unemployment

A dozen generations ago, there was no unemployment, largely because there were no real jobs to speak of. Before the industrial revolution, the thought that you’d leave your home and go to an office or a factory was, of course, bizarre.

What happens now that the industrial age is ending? As the final days of the industrial age roll around, we are seeing the core assets of the economy replaced by something new. Actually, it’s something old, something handmade, but this time, on a huge scale.

The industrial age was about scarcity. Everything that built our culture, improved our productivity, and defined our lives involved the chasing of scarce items.

On the other hand, the connection economy, our economy, the economy of the foreseeable future, embraces abundance. No, we don’t have an endless supply of the resources we used to trade and covet. No, we certainly don’t have a surplus of time, either. But we do have an abundance of choice, an abundance of connection, and an abundance of access to knowledge.

We know more people, have access to more resources, and can leverage our skills more quickly and at a higher level than ever before.

This abundance leads to two races. The race to the bottom is the Internet-fueled challenge to lower prices, find cheaper labor, and deliver more for less.

The other race is the race to the top: the opportunity to be the one they can’t live without, to be the linchpin we would miss if he didn’t show up. The race to the top focuses on delivering more for more. It embraces the weird passions of those with the resources to make choices, and it rewards originality, remarkability, and art.

The connection economy continues to gain traction because connections scale, information begets more information, and influence accrues to those who create this abundance. As connections scale, these connections paradoxically make it easier for others to connect as well, because anyone with talent or passion can leverage the networks created by connection to increase her impact. The connection economy doesn’t create jobs where we get picked and then get paid; the connection economy builds opportunities for us to connect, and then demands that we pick ourselves.

Just as the phone network becomes more valuable when more phones are connected (scarcity is the enemy of value in a network), the connection economy becomes more valuable as we scale it.

Friends bring us more friends. A reputation brings us a chance to build a better reputation. Access to information encourages us to seek ever more information. The connections in our life multiply and increase in value. Our stuff, on the other hand,  becomes less valuable over time.

… [this riff is inspired by my new book…]

Successful organizations have realized that they are no longer in the business of coining slogans, running catchy ads, and optimizing their supply chains to cut costs.

And freelancers and soloists have discovered that doing a good job for a fair price is no longer sufficient to guarantee success. Good work is easier to find than ever before.

What matters now:

  • Trust
  • Permission
  • Remarkability
  • Leadership
  • Stories that spread
  • Humanity: connection, compassion, and humility

All six of these are the result of successful work by humans who refuse to follow industrial-age  rules. These assets aren’t generated by external strategies and MBAs and positioning memos. These are the results of internal struggle, of brave decisions without a map and the willingness to allow others to live with dignity.

They are about standing out, not fitting in, about inventing, not duplicating.

TRUST AND PERMISSION: In a marketplace that’s open to just about anyone, the only people we hear are the people we choose to hear. Media is cheap, sure, but attention is filtered, and it’s virtually impossible to be heard unless the consumer gives us the ability to be heard. The more valuable someone’s attention is, the harder it is to earn.

And who gets heard?

Why would someone listen to the prankster or the shyster or the huckster? No, we choose to listen to those we trust. We do business with and donate to those who have earned our attention. We seek out people who tell us stories that resonate, we listen to those stories, and we engage with those people or businesses that delight or reassure or surprise in a positive way.

And all of those behaviors are the acts of people, not machines. We embrace the humanity in those around us, particularly as the rest of the world appears to become less human and more cold. Who will you miss? That is who you are listening to .

REMARKABILITY: The same bias toward humanity and connection exists in the way we choose which ideas we’ll share with our friends and colleagues. No one talks about the boring, the predictable, or the safe. We don’t risk interactions in order to spread the word about something obvious or trite.

The remarkable is almost always new and untested, fresh and risky.

LEADERSHIP: Management is almost diametrically opposed to leadership. Management is about generating yesterday’s results, but a little faster or a little more cheaply. We know how to manage the world—we relentlessly seek to cut costs and to limit variation, while we exalt obedience.

Leadership, though, is a whole other game. Leadership puts the leader on the line. No manual, no rule book, no überleader to point the finger at when things go wrong. If you ask someone for the rule  book on how to lead, you’re secretly wishing to be a manager.

Leaders are vulnerable, not controlling, and they are racing to the top, taking us to a new place, not to the place of cheap, fast, compliant safety.

STORIES THAT SPREAD: The next asset that makes the new economy work is the story that spreads. Before the revolution, in a world of limited choice, shelf space mattered a great deal. You could buy your way onto the store shelf, or you could be the only one on the ballot, or you could use a connection to get your résumé in front of the hiring guy. In a world of abundant choice, though, none of these tactics is effective. The chooser has too many alternatives, there’s too much clutter, and the scarce resources are attention and trust, not shelf space. This situation is tough for many, because attention and trust must be earned, not acquired.

More difficult still is the magic of the story that resonates. After trust is earned and your work is seen, only a fraction of it is magical enough to be worth spreading. Again, this magic is the work of the human artist, not the corporate machine. We’re no longer interested in average stuff for average people.

HUMANITY: We don’t worship industrial the way we used to. We seek out human originality and caring instead. When price and availability are no longer sufficient advantages (because everything is available and the price is no longer news), then what we are drawn to is the vulnerability and transparency that bring us together, that turn the “other” into one of us.

For a long time to come the masses will still clamor for cheap and obvious and reliable. But the people you seek to lead, the people who are helping to define the next thing and the interesting frontier, these people want your humanity, not your discounts.

All of these assets, rolled into one, provide the foundation for the change maker of the future. And that individual (or the team that person leads) has no choice but to build these assets with novelty, with a fresh approach to an old problem, with a human touch that is worth talking about.

I can’t wait until we return to zero percent unemployment, to a time when people with something to contribute (everyone)  pick themselves instead of waiting for a bureaucrat’s permission to do important work.

Fee Ranges for Consulting Services

Let’s reduce some mystery in the consulting industry.

 

Annual revenue from management consulting in the U.S. was over $58B in 2016.

 

Question:  How much should you invest in your team or group?

Answer:  Enough to guarantee that your outcomes are exceeded.  Not a dollar more.

 

Use these Organizational Consulting Activities and Fee Ranges as a guideline.

 

1.  Consulting Day Onsite.   Fee Range $3,000-$10,000.  The primary reason to invest in external consulting is to accelerate desired change behaviors.  The services may include (1) assessments, (2) coaching or consulting, or (3) skills training.  Those services may be for individuals, groups (defined as 2+ people), or organizations.  Be wary of consultants who bill by the hour, because that practice is transactional and inherently unethical.  Be wary of consultants who offer an “in-town reduction,” or who charge additional fees for books, materials, or excessive travel.  Only select external consultants who provide tremendous value, clear contracts, expected outcomes, and then exceed any promises.   We typically provide three choices.   For details click here.

 

2.  Consulting Day Offsite  (research, data analysis, assessment development, etc.)  Fee Range $1,000-$5,000.  The primary reason to invest in such consulting days is to enable an expert to customize evidence-based content for your organization.   Be wary of consultants who charge an excessive fee for research on your project.  Those consultants may not be subject matter experts-  they may be billing you for their self-study.  That practice is both expensive and unethical.  However, it is fair and reasonable for any consultant to provide a summary of value provided for any offsite consulting work such as customization, research, or data analysis.  We always include those expenses in our value-based contracts for services.   Click here for details.

 

3.  Keynote or other brief speech.  Fee Range $2,000- $15,000.  The primary reason to invest in a motivational speaker is to introduce a new topic or to accelerate learning.   For instance, when we speak on “How to Apply Positive Psychology to your organization” the material is customized for your specific learning outcome.   Too many professional speakers (including some distinguished members of the National Speakers Association who endlessly self-promote) are struggling to survive.  (We have met many of them.  In fact, Doug’s brother, Stuart Gray, was featured on the cover of NSA Magazine.)   Only select speakers who can provide video evidence of their relevant expertise.  There is little evidence validating a long term impact from any motivational speaker.  The real value of speaking is to integrate customized learning into your business outcomes.  For recent details on our speaking expertise click here.

 

4.  Half-day workshop.  Fee Range $2,500- $7,500.  There may be a compelling business reason to provide content in a half-day workshop, rather than a full-day workshop.  For instance, when we provide workshops we integrate virtual or digital training into the process, with pre-event assessments, a digital playbook, and post-event impact boosters.  Those are evidence-based aspects of our process; therefore, we provide them at no additional cost for a workshop of any length.  Some consultants will have additional expenses if, for instance, we have 200 attendees instead of 20.  Those are real costs for assessments, customized program materials, group coaching, etc.  Be wary of any leadership program that is “off the shelf.”  There is little evidence to support their value.  And be wary of the assumption that a consultant can “condense a full-day into a half-day.”  That assumption is absurd.  Half-day workshops have different business outcomes from full-day workshops.  For details on each workshop design, contact us here.

 

5.  Full-day workshop.  Fee Range $5,000- $15,000.  Only select proven consultants who provide tremendous value.  Adult learners require meaningful experiential events.  Anything else is a waste of time, money and energy.  Leader development must be customized if you want impact.  Consider these facts:  Your operational investment into your full-day workshop is multi-fold.  The direct costs of the facility ($5,000) plus the direct costs of 20 people away from their desks ($20,000+) plus the real business lost from that day ($20,000+) mean that your investment in that full day workshop for 20 people actually exceeds $45,000.  We strongly recommend that you invest in expert consultants facilitating a complete process of pre-event assessment, customized delivery, and post-event impact boosters tied to business outcomes.  We have delivered hundreds of these programs.  For details contact us today.

 

6.  Executive Retreat, per day.  Fee Range $10,000-$50,000.  Executive leaders have unique demands on time and energy.  They require condensed leadership development experiences.  Those experiences must be remarkable.  We have facilitated executive retreats with private chefs in the mountains, and with professional actors in the city.  The reason to invest in an executive retreat program is to accelerate new learning in short, remarkable periods of time.  The goal is strategic transformation or breakthrough.  The action learning model is designed to foster breakthrough experiences.  Customization for your executive team is critical.  That process requires partnership with external trusted consultants.  That’s why you should call today.    For details, contact us.

 

7.  Systems Implementation  (e.g. talent assessment, organizational culture change, succession planning initiative).  Fee Range $10,000- $50,000.  Organizational leadership may be defined broadly as a series of phased interventions toward desired business outcomes.  That process requires ongoing active leadership from external consultants.  We provide the objective assessments that you require.  Be wary of any consultants who depend on online talent assessments for lower level employees, or those who sell boilerplate programs.  60-80% of change initiatives fail to be adopted.  Contact us for the detailed citations.  Do not waste any time or money.  Your success requires executive sponsorship, valid assessments (often at individual, team and organizational levels), proven process steps with measures for accountability, and specific expertise.  We are the experts.  We typically provide three choices or a phased set of solutions.   For details, contact us.

 

8.  Employee or Customer Surveys.  Fee Range $15,000- $100,000+.   Caution:  the ability to create an online survey does not make one expert in the use of surveys.  The primary reason to invest in any survey is to assess a population and make informed recommendations toward some desired business outcome.    Valid data requires external consultants with a reliable process.  Internal “consultants” or departments may be self-serving, because they are required to justify their importance.  Consequently, their survey findings may not be valid.  External service providers are absolutely essential for an objective assessment of your organizational performance.  The scope of your investment in these external surveys must vary with the scope of your business needs.   Assessments are (1) quantitative, (2) qualitative, or (3) mixed.  We strongly recommend that you hire an external consultant for surveys.  Contact us for details.

 

9.  Strategy Formulation.  Fee Range $50,000- $150,000.  One definition of strategy is a 3-year horizon line of behavior that reinforces the organizational culture.  The process of strategy formulation requires expert facilitators who can assess purpose, mission, values and culture.  External consultants with unrelated expertise may provide the best value to your organization.  For instance, we have worked with attorneys and accountants for 20+ years.  Recently we were hired to work with a mid-sized company of IT providers who required a new way of thinking about strategy.  They were delighted with their new strategy.  Be wary of the consultant who says, “I have no bias.”  We all have biases, and expertise, that will affect any investment in strategy formulation.  Our bias is based on evidence-based research in positive psychology that assumes a growth mindset that groups can flourish.  Our strategy formulation services are always provided in measurable phases with milestones,  so that all parties are delighted.  For details contact us.

 

10.  Organizational or Group Assessment.  Fee Range $20,000- $200,000.  External consultants are the ONLY people capable of providing objective data about your organization.   Internal consultants have an inherent bias that limits their effectiveness.   We partner with your internal leaders to provide the data you need to make informed decisions, reduce cost, or mitigate risk.  For 30+ years we have provided expert organizational and group assessments.  We know that the best talent assessment methodology includes a multi-rater (2+ consultants) multi-method (quantitative and qualitative) design, because the result has high predictive validity and reliability.  However, your group may only need a quantitative assessment.   Assessments are (1) quantitative, (2) qualitative, or (3) mixed.   Our theoretical model focuses on positive psychology, therefore we make recommendations based on your individual and organizational capacity to flourish.  Then we help you implement those recommendations.    Those details are here.

 

What are you waiting for?   Contact us today.

 

Download this list of services and investment levels now:

 

Now you have some numbers.    So what?

 

Contact us today.

 

Or call us at 615.905.1892 or schedule your initial consultation here.

 

Book Review of “Leading with Questions” by Michael Marquardt

The subtitle is “How leaders find the right solutions by knowing what to ask.” (2005)

What would that success look like?

How can we create answers?

Open-ended questions like these are always useful when seeking solutions.  As learning organizations drive toward change, the quality of question-based approaches will define the success of that organization.

Some highlights (in my signed copy) include:

p. 80+ behaviors and mindsets of a judger vs a learner

p.134+ traditional leaders vs coaching leaders behavior and legacies

p. 176+ relevance of action learning

p. 181+ a groundrule for action learning teams

Michael Marquardt does a great job of incorporating examples from interviews, and provides ample lists of questions so that readers can apply this content to their worlds.

He provides a strategic framework, and two tactical models for those who want training.  The Global Institute for Action Learning and the Institute for Inquiring Leadership may be better for practitioners seeking tools.

Based on this book, I have developed a chart that moves from key/opening questions, to other questions, to notes, to action items.

How do you Lead with Questions in your world?

 

 

Book Review of Drive; The Surprising Truth About What Motivates Us (2009) Daniel Pink

Book Review of Drive; The Surprising Truth About What Motivates Us (2009) Daniel Pink

(Daniel Pink has gained momentum from his earlier bestsellers, Free Agent Nation and A Whole New Mind.   He is still on that thread of applying scientific knowledge/research to common application in business, education, community, which leads to sales/a broad readership.)

Drive explains that when thinking about motivating others, there is a gap between “what science knows and what business does.”  I like that phrase because it immediately states the conflict, and opportunity, and focus of the book.

Psychologists, and researchers in organizational development, know what works when motivating others.  For instance, external reinforcements do work to motivate people doing routine tasks that do not require complex thinking.  However, as our knowledge workers evolve from 70% routine work to 70% complex/ heuristic work, we “need an upgrade.”  The carrot and stick approach is limited.  In fact, external reinforcements can lead to unethical behavior, short term decision making, crush innovation or creativity or initiative, and can cloud accountability metrics because of inconsistent practices.

So, what does work?  Self-directed workers require environments where we/they balance three essential elements:  1) Autonomy, the desire to direct our own lives, 2) Mastery, the urge to get better at something that matters, and 3) Purpose, the desire to do something in the service of something larger than ourselves.

I imagined a descriptive model such as three overlapping columns in a 3-D bar graph.  A worker may be high in autonomy (loosely managed or very experienced in one way of doing tasks), yet low in purpose (without vision from managers or lacking career development hope.)  Consequently, no amount of skills training or micro-managing will be an effective motivator, because that person would not care to master a task.  There seems to be a minimal necessary requirement/ threshold for self directed workers to feel autonomy/ mastery/ purpose.

The application of this model is in its infancy.  He cites dozens of examples, such as performance incentives that need to be tied to ROWE, return on work expected, rather than hours at a cubicle.

Pink distinguishes between Type X (external reinforcement for routine tasks) and Type I (internal reward/ satisfaction for doing purposeful work that develops mastery and rewards autonomy.)  He wants us to move from Type X to Type I.  The good news is that Type I behavior can be developed.  Also, Type I behavior leads to stronger performance, greater health and wellness, and higher self efficacy and well being.

1)     Autonomy.   Management needs to foster autonomous workers who have autonomy over time, task, team and technique.  Companies that foster autonomy greatly outperform their competitors.  Examples include 10% innovation time for projects, at Google, IBM, etc.

2)     Mastery.   Results from engagement.  When workers are “in flow” time passes without great challenge.  In fact, mastery has a) a unique mindset that one can improve one’s abilities, b) mastery is painful and requires deliberate practice, and c) mastery is impossible to attain, therefore both frustrating and attractive.

3)     Purpose.    Alongside profit maximization, the baby boomers are defining “Purpose maximization” in the workplace.   Companies are using a) goals to use profits to support a purpose (such a triple win proposals and social investing), b) careful diction/ plural pronouns to emphasize the impact of us/we, and c) new norms and policies that encourage purposeful endeavors (sabbaticals, cross functional action learning sets, collaborative initiatives…)

Pink has an easy style, with enough examples that the pages fly by.

At the end of the book he has clever approaches to engage readers into discussions.  For instance, “Twenty Conversation Starters to Keep You Thinking and Talking” and “The Type I Reading List: Fifteen Essential Books” in an annotated bibliography.  The result is that this book becomes one among other conversations, with other authors and readers and thinkers.  The reader is engaged.  In fact, the structure models self-directed workers by assuming one is autonomous (capable of independent thought), has mastery (desire to improve) and purpose (ability to apply these ideas to one’s own world.)

In short, one of the most important books I can recall reading in many years.

Takeaways:

  1.  Builds upon shift in psychological services from illness toward health.  Extension of positivism.  Huge opportunity for consultants and business leaders.
  2.  Reinforces huge need for coaching that develops unique strengths.  Could be connected to StrengthFinder  assessment
  3.  Complex model that needs a simple application in order to gain momentum in an organization…
  4. When I emailed Daniel Pink, he replied quickly and that impressed me…
On 2.26.12 I just re-read the book for several reasons.
1.  Our daughter is taking AP Psychology and Drive is required reading.  That fact says something about the reach of his book within 2 years.  She is tasked with implementing a capstone project at her independent high school.  I am curious what shea nd her fronds develop.
2.  In the March, 2012  Inc magazine there is a related reference to “The Motivation Matrix” which cites research and a forthcoming book by Noam Wasserman at Harvard, which extends some of Pink’s concepts to explore why entrepreneurs start businesses, and what they (we ) want… very provocative.
Anyone know of any related assessments being used in the field?

 

Recipes for Creating Epiphanies

The holidays are a perfect time for baking and cooking… but an epiphany?

The word “Epiphany” can be both a holiday and a feeling.

Perhaps you know that the Epiphany holiday is celebrated near January 6, as a traditional time for feasts, fruitcakes, Twelfth Night, and the manifestation of Jesus to the Maggi.  In Colorado, people celebrate by catapulting fruitcakes.  In France, people eat the “King Cake” until a child finds the porcelain bean and is declared “King for the Day.”  A baptism connected to sudden surprise.  I love how we mash traditions and beliefs into one holiday.

The feeling of Epiphany  is a sudden realization, that “Eureka!” moment, when we discover something important (such as gravity), or something spiritual (such as God.)  In fact, psychologists study the feeling of epiphany when studying innovation.  Philosophers study supernatural insight.  Mystics study the conditions that support epiphanies.

Hmmm.

Why not celebrate both the holiday and the feeling?

What if we could, somehow, select the ingredients, create a recipe, then bake a fertile climate for epiphanies?  For instance, if we mashed together “preparation” and “inspiration”?  Or “market” and “opportunity”?  Or “buyer” and “seller”?  Or chocolate on top of  peanut butter cookies?

As a coach I help people design their future.  Kind of like helping them create the recipe, so that they can frost the cake.  The coaching process has 3 steps:  1) increasing awareness (of your strengths, a situation…),  2) taking action (with intentional constructive steps toward your personal and professional goals), and 3) driving accountability (determining what works, then doing more of that…”

I wonder if we can create Epiphanies, in a similar way?

Religious leaders and mystics talk about “Thin Places.”  These may be cathedrals (like Winchester) or ancient sites (like Stonehenge) that enable us to feel connected to the supernatural or spiritual.  If you have ever looked through stained glass, or sung in Handel’s Messiah, then you know about Thin Places.

For me, natural wild places are perfect conditions for Epiphanies.  Last week, for instance, I was running along a rocky ridge line in New Hampshire.  Imagine spruce and fir trees.  Ancient granite.  Snow and ice.  A good friend nearby.  Spectacular views of lakes and mountains.  Then imagine the sun setting into crimson lines of endless colors.  In that Thin Place I felt more spiritual than physical.

My epiphany was that, despite advancing age, I always feel stronger after a run.  Connected to something ancient.  Thankful for being alive.

So, here is a short Recipe for Creating Epiphanies:

1. Be physically active every day

2.  Serve others

3.  Do meaningful work

4.  Consider possibilities

5.  Maximize living in the Now

6.  Design the Future

 

And let me know how it goes…

Do you think it is possible to celebrate both the holiday and the feeling of epiphany?

Welcome to this blog, plus some tips

Welcome,

It may be obvious, however, I want to encourage you to:

1.  Scroll over the boxes/categories on the sidebar for key words that interest you.

2.  Enter any word in the search button.  Then follow that post to more posts.

3.  Write a comment.  Your thoughts are more important than mine.

4.  Forward any posts to your friends/colleagues.

5.  Join the RSS feed so that you receive regular blog updates as they are posted.

The purpose of this blog is to share what works.

So, what works for you?