The concept of an Iron Triangle is that along each side of the triangle is one item that is constrained by the items from the other two sides. In Project Management this is often referred to as a triple constraint. This identifies the fundamental relationships (such as Time, Cost, and Scope in Project Management) without addressing related aspects such as Risk and Quality. It provides a simple understanding of both requirements and tradeoffs.
Yesterday I spoke with Dave Mosby, an impressive person with an equally impressive background. He related Innovation to Fire, noting that in order to create fire you need fuel, oxygen, and heat. He added that they need to be in the right combination to achieve the desired flame. What a brilliant analogy.
Dave stated that for Corporate Innovation to succeed you need the proper balance of Innovation, Capital, and Entrepreneurship. I found this enlightening because his description substituted “entrepreneurship” for “culture” in my existing mental model. While the difference is subtle, I found it to be important.
As noted above, simplified frameworks do not provide a complete understanding. But, they do help understand and plan around the foundational items required for success. Mapping this to past experiences I was able to gain a better understanding of things that did not move forward as desired, and what I could have done differently in order to be more effective.
One idea was to create a fault-tolerant database using Red Hat’s JBoss middleware. We had a Services partner willing to create a working prototype, tune it for performance, document the system requirements and configuration, and package it for easy deployment. They wanted was $10K to cover their costs.
At the time I did not hold a budget of my own so created a purchase request supported by a logical justification. It modeled potential revenue increases for database subscriptions based on the need for a failover installation, as well as growth from potential expanded use cases. This was a slam dunk!
In my mind, this was simple as it was “only $10K,” and I had funded many similar efforts when I had my own company. But that’s the rub. I viewed these efforts as investments in understanding, lessons learned, and growth. Not every investment had a direct payoff, but nearly each one of them had an indirect payoff for my company. It was an entrepreneurial mindset that accepted risk as something required for rewards and success. I now see, many years later, how reframing my proposal as a way to foster innovation and entrepreneurship could have been far more effective.
It is never too late to gain new insights and lessons learned. And, a slightly different perspective on an important topic provided the understanding that should help with positioning projects for success in the future. And this flowed from a discussion with an interesting person who has, “been there, done that” many times.
Thematic Analysis is a powerful qualitative approach used by many consultants. It involves identifying patterns and themes to better understand how and why something happened, which provides the context for other quantitative analysis. It can also be utilized when developing strategies and tactics due to its “cause and effect” nature.
Typical analysis tends to be event-based. Something happened that was unexpected. Some type of triggering or compelling event is sought to either stop something from happening or to make something happen. With enough of the right data, you may be able to identify patterns, which can help predict what will happen next based on past events. This data-based understanding may be simplistic or incomplete, but often it is sufficient.
But, people are creatures of habit. If you can identify and understand those habits, and place them within the context of a specific environment that includes interactions with others, you may be able to identify patterns within the patterns. Those themes can be much better indicators of what may or may not happen than the data itself. They not only become better predictors of things to come but can also help identify more effective strategies and tactics to achieve your goals.
This approach requires that a person view an event (desired or historical) from various perspectives to help understand:
- Things that are accidental but predictable because of human nature.
- Things that are predictable based on other events and interactions.
- Things that are the logical consequence of a series of events and outcomes.
Aside from the practical implications of this approach I find it fascinating relative to AI and Predictive Analysis.
For example, by understanding the recurring themes and triggers you can monitor data and activities proactively. That is actionable intelligence that can be automated and incorporated into a larger system. Machine Learning and Deep Learning can analyze tremendous volumes of data from a variety of sources in realtime.
Combine that with Semantic Analysis, which is challenging due to the complexity of taxonomies and ontologies, and now that system more accurately understand what is really happening in order to make accurate predictions. Add in spatial and temporal data such as IoT, metadata from photographs, etc. and you should have the ability to view something as though you were very high up – providing the ability to “see” what is on the path ahead. It is obviously not that simple, but it is exciting to think about.
From a practical perspective, keeping these thoughts in the back of your mind will help you see details that other people have missed. That makes for better analysis, better strategies, and better execution.
Who wouldn’t want that?
Recently, I was speaking with a person who is part of a team analyzing ways to, “mitigate the risk of exclusive manufacturing in China” while not fully divesting their business interests in a growing and potentially lucrative market. This bifurcation exercise got me thinking about how many other companies are evaluating their supply chain relationships, inventory management, and the predictability of their cost of goods sold.
In the mid-1990s I had done a lot of work with the MK manufacturing software that ran on the Ingres database. Some of the issues were performance-related and fixed by database tuning, some fixed by using average costs instead of a full Bill of Materials (BOM) explosion using dozens of screws in a window, but some were more interesting and also more business-focused.
After NAFTA became law one manufacturer built a facility in Mexico and started having a few basic but important parts manufactured there. When I arrived as a Consultant the main problem they faced was a reject rate of roughly 20% and additional related QA costs. My suggestion was to treat this part (say a single piece of steel like the rotor from a disk brake system) as a component and build-in the cost of both the scrap and the QA. They could then benchmark the costs against other suppliers in an apples-to-apples comparison to determine if they were really saving money. That approach ended up working well for them.
While that approach helped manage costs it did not address the timeliness of orders or lead time required – important aspects of Just-in-Time (JIT) manufacturing. Additionally, it should be possible to estimate shipping costs by taking into account changes in petroleum costs or anticipated changes in demand or capacity.
There are systems that are out there that claim to estimate the cost and availability of commodities based on a variety of global factors and leading indicators. It is tricky, to say the least, and can’t anticipate an event like a pandemic. But, companies that are able to manage their inventory and production risk the best will likely be the ones that succeed in the long run. They will become the most reliable suppliers and have increased profits to invest in the further growth and improvement of their businesses.
The next 2-3 years will be very interesting times due to advances in technology and geopolitical changes. Those companies that embrace change and focus on real transformation will likely emerge as the new leaders in their segments by 2025.
One of the many changes resulting from the COVID-19 pandemic has been a sea change in thoughts and goals around Supply Chain Management (SCM). Existing SCM systems were up-ended in mere months as it has become challenging to procure raw materials to components, manufacturing has shifted to meet new unanticipated needs, and logistics challenges have arisen out of health-related staffing issues, safe working distances, and limited shipping options and availability. In short, things are a mess!
Foundational business changes will require modern approaches to Change Management. Change is not easy – especially at scale, so having ongoing support from the top down and providing incentives to motivate the right behaviors, actions, and outcomes will especially critical to the success of those initiatives. And remember, “What gets measured gets managed,” so focusing on the aspects of business and change that really matter will become a greater focus.
Business Intelligence systems will be especially important for Descriptive Analysis. Machine Learning will likely begin to play a larger role as organizations seek a more comprehensive understanding of patterns and work towards accurate Predictive Analysis. And of course, Artificial Intelligence / Deep Learning / Neural Networks use should accelerate as the need for Prescriptive Analysis grows. Technology will provide many of the insights needed for business leaders to make the best decisions in the shortest amount of time that is both possible and prudent.
This is also the right time to consider upgrading to a modern business ecosystem that is collaborative, agile, and has the ability to quickly and cost-effectively expand and adapt to whatever comes next. Click on this link to see more of the benefits of this type of model.
Whether you like it or not, change is coming. So, why not take a proactive posture to help ensure that this change is good and meets the objectives your company or organization needs.
Changes like this are all-encompassing so it is helpful to begin with the mindset of, “Win together, Lose together.” In general, it helps to have all areas of an organization moving in lockstep towards a common goal but at a critical juncture like this that is no longer an option.
It appears that we may have seen the worst of the COVID-19 pandemic and now I am seeing more and more articles about the “New Normal” and “Next Normal.” Interestingly enough, I have also been seeing a few articles over the past two weeks about this being an opportunity. Once the fear, uncertainty, and doubt (aka “FUD”) began to diminish, people finally began to look for a silver lining.
Fear is a powerful demotivator, which is why I find it interesting that some managers and executives use it as a tool to help achieve their goals. There may be short-term gains, but the long-term effects can be devastating. In times of chaos (real or perceived), one of the best things that a leader can do is be genuine and concerned for the welfare of their team, communicate in an honest and timely manner, and display confidence as a way to help shift emotions from a negative state towards a positive state. Fear holds you and your team back.
What I find interesting is that two months ago I posted about this unfortunate time being an opportunity – something that led to several negative comments at the time. Three weeks ago I posted about changes that would be coming as part of the “New Normal.” I believe that this is simply insight coming into play, which is one reason why Consultants, great Salespeople, and new Executives are often able to add immediate value to an organization.
As an aside, diversity of backgrounds, experiences, knowledge, expertise, and opinions lead to a variety of perspectives – and that fosters creativity. A best practice in team building is to find people whose strengths help cover your weaknesses.
So, perspective and expectations determine where you begin, and not where you will end. The benefit of having a better starting point is that you should be in a much better position to win. The best part is that you can teach yourself to become better at identifying different perspectives. You may find that it is much easier to understand the big picture of whatever problem you are facing with that new skill.
From time-to-time, we are all faced with situations that we know will suck. Avoidance may be an option but usually isn’t the best option. The military has a saying, “Embrace the Suck,” that essentially boils down to “just deal with it.” Focusing on “the gain” (rather than “the suck”), identifying the small wins along the way, and visualizing success is part of the process that I have personally found helpful to maintaining a positive attitude and an open mind. This simple process helps maintain the balance of optimism with realism, and most importantly creates high expectations.
So, what are your thoughts? Do you want to lead or follow? There is nothing wrong with following, especially when you are contributing to the success of the team. Perspective and Expectations are two tools that can help in any role.