The post Your Employer-Your Wings or an Anchor? appeared first on Doug Reed - Foster Growth.

Thank you to the late Clayton Christensen, PhD for his world renowned insights on innovation and his impact on business. (April 6, 1952-January 23, 2020)

_____________________________________________________

Clayton’s Impact on the World, and Me

Clayton M. Christensen, PhD., was a Professor of Business Administration at the Harvard Business School and a best-selling Author. He was renowned as a intellect who advised many world political and business leaders and who shaped our current view of innovation and its influence. The event was facilitated by Adi Ignatius, Harvard Business Review Editor-in-Chief.

Clayton had a profound impact on the way I advise CEOs and their management teams to develop and execute strategies. In particular, Clayton’s theories are germane to Anticipatory Organizations. I apply his insights to assessing strategies for their short term and long term business impact.

Mis-used Metrics

Clayton spoke about his pillars of innovation and how they impact economic well-being. A key thrust of his discussion was how business leaders across the world have shifted their focus to short term gain. They are now using performance metrics based on speed instead of long term gain.  

I had a chance to speak directly with Clayton at the end of the discussion. Here is my transcript of our conversation. I also provide links to my position papers that were sparked by this encounter.

My Question, Clayton’s Solution

As the Q&A part of the seminar began I raised my hand and was acknowledged. Following earlier instructions, I waited for the microphone to arrive. While I was waiting Clayton looked at me, sitting directly in front of him in the front row.

Clayton smiled and said, “Doug, I hope you not going to ask a hard question”. I gave him a nod and wry smile. “Sorry, it will be….”, I said sarcastically. He smiled again and leaned back in his chair…

“Clayton, I am Doug Reed of FosterGrowth. Earlier in this discussion you identified that business managers are conditioned to think short term, even though the cost of capital is low and companies are hoarding cash. My question is, should interest rates stay long indefinitely, say 10 to 20 years, might the behavior you describe revert back to the healthy long term behaviors you said once existed? Thus, solving the problem.  

[Doug] “I attended a meeting and heard a presentation by Martin Regalia of the U.S. Chamber of Commerce and he felt that there would be continued pressure on the feds to keep rates low because our huge debt is now linked to low rates. The debt would explode to catastrophic levels if rates were allowed to rise.  Thus, I thought that perhaps rates might stay low for a very long time.”   

Clayton’s response: “I had not thought about that.  Give me a moment to consider that.”  Pause.. 

Clayton continued: “It may be that interest rates stay low for a long time, thus making it more obvious that there is low risk is making long term investments. [However], the persons who are running our businesses got there because they are good at making the current metrics work.  Even though they are the wrong metrics, those persons who are conditioned and good at working with them got to their position by following them.” 

[Clayton] “The persons who used to run our businesses and who were good at the long term metrics and achieving Marketing Creating Innovations, are no longer around.  Thus, it may be that the wrong metrics will continue to be followed until new persons take charge of our businesses and they embrace the right metrics. 

The Punch Line

Then came a follow-up question from the web audience:  “If that is true, that it will take future leaders that have the right values, is it not the responsibility of our educational institutions to teach this?”    

[Clayton] “Yes, so perhaps all universities should adopt my class curriculum.”   Laughter….

Resources for You

To learn more on the seminar’s subject, read this article published in the June 2014 Harvard Business Review.  http://hbr.org/2014/06/the-capitalists-dilemma/ar/1

Since that seminar I have promoted Clayton’s views and innovation definitions through dozens of conference presentations, webinars and articles. The following list contains links to those articles.

December 2018 PE Magazine: Leverage Disruptive Technology

Growth and Strategy Development: Danger! Technology Disruption

The post My Conversation with Clayton Christensen on Business Metrics Mis-use appeared first on Doug Reed - Foster Growth.

Why is Disruptive Technology the kind that drives the most growth? Find out why Disruptive Technology and technological change is so hard for industry insiders.

This article was published in PE Magazine in December 2018. To read the full article follow this link.

Thank you to the late Clayton Christensen, PhD for his world renowned insights on innovation and his impact on business. _____________________________________________________

Doug Reed, PE, president of FosterGrowth, is a business consultant and corporate adviser. He is a member of the non-profit Engineering Change Lab-USA. ECL-USA’s mission is to assist the engineering community to control its destiny among technological change. He is the author of the peer reviewed book, Lead A Movement: The Insider’s Guide to Powerful Strategy Execution. Prior to FosterGrowth, Doug spent over 30 years with fast growing AEC firms, much as an owner. He can be reached at dreed@fostergrowth.biz and www.fostergrowth.biz

The post Leverage Disruptive Technology For Career and Business Growth appeared first on Doug Reed - Foster Growth.

Most of all, you want something of value out of your learning investment. Yet, time and again, you experience little or no change. Don’t you find this discouraging?

The problem is that you learned the theory with almost no application of the skills. Workshop role playing is not the same environment as the real world.  So, what you need is an environment where you can learn in the real world. And, I am going to tell you how you can do this.

First, I ask you to consider this true story.

My Brain was Infused with Knowledge

A decade into my very technical engineer career I took a job with a firm led by an entrepreneur who was also a professor. That was not the reason I took the job, but fate was in the making.

I discovered that the entire environment was supportive of learning and trying new ideas. I recall at least six outside consultants who were brought in by those owners. These persons coached me on sales, on employee engagement, on project management, presentation skills, motivating employees, influencing employees, writing, negotiating, contracts, and financial management.

The point is, it was constant. And, I was nurtured and supported to apply those skills in the real world. In only 18 months after joining the firm, I had blasted through the bookings, profit and customer satisfaction requirements to be elected shareholder. And, I was.

Was this expensive for the firm? You bet it was. But how did that compare to stock that doubled in value every three years? It was chump change.

Why Throw Away Time, Money and Potential Gains?

Think about a professional athlete. To perform at a high level, they make use of one or more personal trainers. Imagine if they tried to design their own work-out program?

Why should you? Why not make it easy on yourself and make sure you’re not only learning, but applying the learning as it was intended– for you to be more successful at whatever you seek.

Comprehensive Programs Encourage Long-term, Sustainable Change

A Harvard Business Review Discussion Group member asked, “Is training worth-while?” The comments posted were from 40 persons across the globe and range from academics, business managers, and management consultants. I have two takeaways.

First, for any learning program to be effective you must have a desire to participate and learn. You do that by placing yourself in an environmental where learning is actively encouraged. By doing this, you will begin to see that you CAN improve yourself as a result of learning.  This perspective of yourself in the world is the real impact; the real value.

Second, set your ego aside and seek lessons from those who have proven their talent on the topic. Don’t just learn the material, practice the material. Find someone you can learn from and who will be available to you as you apply the new skills. Rarely will it be as easy as during the lesson. Real-time support is essential to your adaptation of your new skills.

What is it You Seek More of?

Seek out a trainer and coach who knows the business and will make sure you get there. Here is what a project manager, now an owner and Senior Vice President, had to say:

“(Doug’s) largest asset is his ability to blend his knowledge of technical issues with the ‘soft side’ of human interaction and understanding– a skill that eludes many engineers. Doug has been of great assistance to my personal and professional success.“ 

It is All in Your Control

What is it you are not achieving that you seek? What is getting in the way?

Do you and your firm support my hypothesis? You can be your own wings or be a leader who provides the wings. Don’t be the drag.

Click here for the many solution opportunities FosterGrowth provides.

Doug

The post Your Firm is Your Wings or Your Drag appeared first on Doug Reed - Foster Growth.

Lucky for me I had a senior manager who tested me on sales not long after I joined the engineering/architecture industry. Allow me to share with you my story of gratitude to the executive who trusted me. Because of him I had one experience that accelerated my career.

Selling was the Furthest Thing From My Mind

A principal in the A/E firm where I worked decided to break into the drinking water business. I was a 26 years old budding civil engineer and he knew I had “vast” experience in drinking water from my prior firm (3 years and a few projects).  And, there was no one else with experience in that area so he didn’t have any choice.

He started off by taking me to meet with a couple of clients. Next, an RFP landed on my desk. With a lot of coaching, I drafted my first proposal. With a lot of editing, the proposal was submitted.

Keep in mind, my goal was to be a technical engineer with a reputation for being the best designer. I had no interest in project management or sales. But, I did what I was told.

We got invited to an interview and I was nervous. I had taken a public speaking class in college. But, my most advanced talk was how to make a tie-dyed t-shirt.

Since the scope of the project included modeling a water system, I took a stack of printouts to the selection committee interview. I demonstrated how I could enter numbers, and get answers on how to improve their water system (I know I am dating myself. This was a new concept back then).

I can’t imagine the competition did anything different. However, one of the old timers on the board sat examining my resume in the proposal. He had one question for me.

“Did you really graduate from University of Vermont school of engineering?” Why, he did too!

So, we became buddies. And, we won the job. So much for extensive qualifications and experience.

This story repeated several times. We won a water treatment design, we won a water system master plan, and more.  All of a sudden I found myself as one of the people in the firm driving sales. It gave me satisfaction, respect and control over the kind of projects I had.

Everyone Can Race the NASCAR

The reality is that not all people want to drive sales. A broad approach to encourage and provide support, such as training, to every employee who interacts with clients, is a highly effective maneuver.  Every work environment where I experienced this attitude was an environment of enthusiasm and revenue growth. Every work environment where junior staff were constantly hit over the head about being fully billable, was a stagnant environment.

To identify the people to drive sales, first ask. Then, provide training and support. Monitor and make utilization adjustments, even of senior staff. Maintain the firm’s overall utilization balance while unleashing everyone who wants to “drive” revenue growth.

What are your experiences with motivating people to drive sales? Share  them with me by commenting on this blog or shooting me an email so we can collectively learn.

The post Your firm is missing revenue if junior staff isn’t billable appeared first on Doug Reed - Foster Growth.