Externalities

We’re familiar with the externalities of industrial production and consumption. They’re fairly predictable, and often visible. Even air pollution, the silent killer, is usually visible when it happens, before the poison spreads. It’s a perfect example of a negative externality – something put into the world that everyonepays for, not just the producer or the consumer.

What are the externalities of your project, program or product? What invisible outputs do you have?

  • What does your way of working with users, customers or clients say that your words leave out? How do they see you seeing them? Do they leave feeling smaller, more pressured, less competent – or with a greater belief in their ability to get better and to make a difference? (As you teach that vital knowledge and share those crucial skills, what else are you teaching?)

  • As you manage your team, how do they feel when they leave the office? What do they take home with them? What are your externalities for their families, friends and neighbourhoods?

    • What about your suppliers – the people who serve you as you serve others. What externalities do you have for the people in the photocopy shop, the electrician who comes to the office, or for your cleaners?

  • What about your suppliers – the people who serve you as you serve others. What externalities do you have for the people in the photocopy shop, the electrician who comes to the office, or for your cleaners?

Not polluting – ‘do no evil’ – isn’t nearly enough.

Brian Chesky on culture and hiring well

Our first employee was our first engineer and I think we looked for him for four or five months. I probably looked through thousands of people and I probably interviewed hundreds of people.

Some people ask, why did you take so much time on hiring your first engineer? And here’s how we thought about it: I kind of felt like your first engineer is like bringing in DNA to your company. If we were successful, there were going to be a thousand people just like him or her in the company.

So it wasn’t a matter of getting someone to build the next three features that we needed to ship for our users. There was something much more long term and much more enduring, which was “Do I want to work with a hundred or a thousand more people like this?”

You want diversity of background, age, but you don’t want diversity of values. You want very very homogeneous beliefs or values – that’s the one thing that shouldn’t be diverse.

Brian Chesky, founder of AirBnB – How to Start a Startup 2014

Full video below

Wisdom, for now and later


Eat honey, my child, for it is good;
    honey from the comb is sweet to your taste.
1Know also that wisdom is like honey for you:
    If you find it, there is a future hope for you,
   and your hope will not be cut off.

Proverbs (of Solomon) – Tanakh / Old Testament

I read this the other day, and got to thinking: I could do with a bit more of two types of wisdom.

Wisdom for now

When you sit to dine with a ruler,
    note well what is before you,
and put a knife to your throat
    if you are given to gluttony.
Do not crave his delicacies,
    for that food is deceptive.

Most of the time I think about wisdom as short term: knowing the right (or best) thing to do in a given situation, and being able to do it. Things like judging fairly, or staying calm in a disagreement, knowing when to let something drop or when to fight your point, and how to do it well. And this type of wisdom is really important – there are loads of proverbs about it.

Wisdom for later

Put your outdoor work in order
    and get your fields ready;
   after that, build your house.

Critical path theory, c. 600 BC

But this proverb gets at a different sort of wisdom: the make-good-decisions-when-it’s-not-urgent-to-avoid-difficulty-later sort of wisdom. And proverbs is full of these too. On reflection, maybe they’re the same kind of thing, and only different because the consequences are felt in the short or longer term – easier today or easier tomorrow.

This wisdom for later is about doing the right things daily, about building things for tomorrow, about doing the boring work of maintenance or the hard, slow work of building foundations so that tomorrow will be better. It’s about staying away from the things that will hurt us now, and also about making decisions now that will help us to avoid the risk or temptation of trouble later – about applying the right kind of thin end of the wedge. It’s about investing in important things so that you can enjoy treasures that are all too rare, and things that are necessarily rare, because they’re what you built:

By wisdom a house is built,
    and through understanding it is established;
through knowledge its rooms are filled
    with rare and beautiful treasures.

May your treasures be beautiful and rare, and the honeycomb sweet.

Courtesy and cold fusion

One yardstick of wealth is how much you give away. It’s easy to run out of time and money, but there are no hard limits to your supply of courtesy and consideration.

I’ve had several interactions with courteous, engaged service people this week, and they made a huge difference to a difficult week – I still feel glad about them. Being courteous – assuming the best, being polite, giving respect and space to people before you’re forced to concede ground or fight for it – is a wonderful form of generosity. It makes almost everything better, feels great, and almost always creates more energy than it costs.

It’s cold fusion.

Vision. Positioning. Execution. (4)

Execution

Being able to execute means being able to get the right things done at the right times. Good execution is a combination of:

  • Knowledge – do you know what to do and how to do it? This is a type of vision, but I include here for completeness.
  • Skill – are you able to do it? Skills need to be learned and practiced, and intuition improves with experience.
  • Will – are you committed? Do you make things happen and get stuff done? Skill doesn’t matter if you don’t take action.
  • Performance – how well do you do your part? Do you make the most of what you’ve got?
  • Bringing people with you – who else is involved? Are they ready?
  • Luck – do things go your way?

The Key

Having a strong will – strong enough that you consistently act on it – is the most important of these. Unless you’re committed and determined and actually show up, make things happen and get stuff done – nothing else matters.

Vision. Positioning. Execution. (1)

You see the traffic, approach the road, pause at the kerb, lean forward just as someone passes to get some forward motion, then step into the space between cars.
Or you press the button and wait for the light.

You see a public holiday on the calendar, decide that you want to go away, decide where and who with, then you book, pack, and go.

You see a teammate with the ball and an opposing player moving to tackle. You move into position for a pass – changing course slightly once the ball is in the air – catch it, and run into space.

You see your child growing up and glimpse what they need now and will need in future. You make changes to free up time. You learn new things to share with them. You spend the time, play, talk, teach, give them things they need.

You see a need for a product or service, know that you can make it, start working, gathering resources, building relationships with suppliers and buyers, making it, sharing it with the people it’s for.

You see a glass on the edge of a table and someone gesturing enthusiastically. You move the glass, continue the conversation.

You see someone in need, move closer to find out what’s going on, do what you can to help.

Vision. Positioning. Execution.

Leadership: don’t say it

You may have a very good point.

You may be entirely in the right.

It may be that you’ve understood their (bad) motivation perfectly, that they are wrongheaded, inconsiderate and rude to boot.

It may be that there’s a values-conflict that’s going to take a lot of deep and difficult work to address.

Some of the above is probably true. All of it may be true*… But saying it to them now – saying it how you’d most like to say it, maybe throwing in a few of the things that you’ve been carrying for a while – saying it now, in the heat of the moment, won’t help.

Grit your teeth. Breath deeply. Don’t say it. Instead do the harder work of fixing the deeper issues and slowly, slowly getting the boat moving in the right direction.

 

P.S. Of course, I said it. 

*And of course, it’s just possible that many of them are not true, or that you need kick in the empathy to know how to respond properly

John Gardner on regeneration

Values always decay over time. Societies that keep their values alive do not do so not by escaping the process of decay but by powerful processes of regeneration. There must be perpetual rebuilding. Each generation must rediscover the living elements in its own tradition and adapt them to present realities. To assist in that discovery is one of the tasks of leadership.

Leaders must understand how and why human systems age, and must know how the processes of renewal may be set in motion. The purposes are always the same:

– To renew and interpret values that have been encrusted with hypocrisy, corroded by cynicism or simply abandoned; and to generate new values when needed.

– To liberate energies that have been imprisoned by outmoded procedures and habits of thought.

– To reenergize forgotten goals or to generate new goals appropriate to new circumstances.

– To achieve, through science and other modes of exploration, new understandings leading to new solutions.

– To foster the release of human possibilities, through education and lifelong growth.

John Gardner – On Leadership

Caterina Fake: 5 Cs

If you look at all of the companies that I’ve been involved with and the investments that I’ve made, they are companies that emphasise creativity, communication, connection, collaboration and community.

Caterina Fake – Tim Ferris Show #360

Caterina Fake co-founded Flikr, where they popularised – newsfeeds, tags (which later evolved into hashtags), followers and likes. She played a key role in the development of Etsy, Kickstarter, and a many others besides.

These five Cs are values that she describes as being key to the success of her projects.

What role do they (could they, should they) play in yours, not just for you and your team, but for your partners, donors, customers, clients?

Conflicting values

If you keep butting up against the same problem with a colleague – a problem you think you’ve fixed, but that comes up repeatedly in slightly different variations – it could be a sign of conflicting values.

Values conflicts often seem to arise over:

  • Money (fees, salaries and expenses)
  • Time (working hours, punctuality)
  • Effort and focus (work ethic, productivity, accountability)
  • How we treat people (respect, courtesy)

If it is a values conflict (and it’s worth double checking that it’s not a case of your own poor management), you can be pretty sure that it’s going to keep on appearing until you do some deep work to address it.

These conflicts are tricky to handle because they’re often both emotion-laden and subjective. That is, we’re all pretty sure we’re right, and we’re indignant about being wronged – and our feelings of indignation double when realise how the other side of the argument perceives the things we say and do.

Some questions for working on values conflicts:

  • What’s the history here? How has this problem shown up in the past, and what seems to be the root cause?
  • What shortcoming of yours might they think is the root cause?
  • How is everyone feeling about the issue? How will that affect the way they communicate?
  • Assume for a moment that they have the same values as you do on this. What might make them act this way?
  • What information are you missing (or failing to recognise the importance of) that would help you make better decisions here?
  • What information do they have that might help you?
  • What factors are you assigning importance to that they don’t know about or don’t recognise, and how can you close those gaps?
  • Get advice – think particularly about people who might be able to fill in the missing information, or give perspective on how each party feels and why – and point out to you when you’re being unreasonable?
  • Where does the power lie in this conflict? Does this affect how you should behave?
  • If you’re convinced there is a conflict in values – check that you’ve consistently demonstrated the value in question in your treatment of others. What do you need to change?
  • How can you talk about the value, sharing information and telling stories that weave it more deeply into your organisational culture?
  • How will this affect how you choose new colleagues, suppliers or partners?
  • Where are the lines you’re not prepared to cross?
  • Are there people – respected colleagues, board members – that you can involve in the process in a way that takes the heat out of the situation, or reduces the extent to which you are seen as responsible (or are responsible) for the point of conflict?
  • If (when?) you make a mistake in addressing this, how can you make sure that it’s a mistake on the side of kindness, generosity and trust?