Peter Drucker on improving decision making with feedback analysis

I’ve read and appreciated this suggestion from Peter Drucker enough times that I’m finally going to apply it.

Here’s the idea:

You can learn to identify your strengths by using feedback analysis. This is a simple process in which you write down every one of your key decisions and key actions along with the results that you expect them to achieve. Nine to twelve months later, check the actual results against expectations.

After two to three years of use, you will know your strengths by tracking those decisions and actions where actual results fell in line with or exceeded expectations.

Once you have identified your strengths through feedback analysis, you can use this knowledge to improve performance and results in five ways:

1) Concentrate on your strengths
2) Work on improving strengths. You may need to learn new knowledge or update old.
3) Recognize disabling habits. The worst and most common one is arrogance. Oftentimes poor performance stems from an unwillingness to pursue knowledge outside one’s own narrow specialty.
4) Remedy bad habits and bad manners. All too often, a bad habit such as procrastination or bad manners makes cooperation and teamwork all but impossible.
5) Figure out what you should not do.

Peter Drucker – The Daily Drucker

Seth Godin on listening to feedback

The most important thing to remember now a simple sentence: “It’s not for you.”

So you run an Indian restaurant on 6th Street in New York and you have a $24 spicy vindaloo, if you finish it you get it for free, it’s that spicy.

And someone comes to the restaurant and says, “I hate spicy food,” it’s really obvious what you should do, and it’s not take it off the menu.

It’s saying to that person “Vaselka, Ukrainian food, is two blocks away, nothing in the restaurant is spicy, here’s their phone number, thanks for stopping by.”

“What I sell is not for you.”

Being able to do that is hugely powerful.

So I look at the 100 most loved books ever written, all of them have more one-star reviews on Amazon than any book I’ve ever written – all of them. Because if you’re going to write To Kill A Mockingbird or Harry Potter a lot people are going to read it, and if a lot of people are going to read it, some of them are going to need to say, “It’s not for me.” And the way they do that is by writing a one-star review.
But Harper Lee shouldn’t have read her one-star reviews because it’s not going to make her a better writer tomorrow. All it says is “I don’t like spicy food.”

Seth Godin on The Jordan Harbinger Show Ep 234.

In their hands

Make something people can use.

Put it in their hands.

See what happens.

If they’re eager to pay – attention, time, money – you’re onto something.

Watch them. Listen to them. Tweak it. Make more of it. See what they think.

If they tell their friends – and if their friends tell their friends – then you’ve got it.

What change do you seek in the world? Who are the people you seek to serve?

You’ve got it when they’ve got it.

You’ll know you’ve got it when you meet someone for the first time, and the thing you made is already in their hands.

Feedback (positive)

When I was a kid, my cousin had a tape-recorder just like this one – it had a microphone with a yellow sponge. Putting the microphone in a nearby (empty) pot produced this wonderful echoey noise that grew to a delightful – to my ears – whining whistle.

The whine grew slowly at first, but the louder it got, the faster it grew before maxing out, ending when you took mic back out (you could hold it constant by holding the mic just at the mouth of the pot) or when an irritated parent had had enough.

Here’s a diagram of what’s happening:

(wikipedia)

There a lot of ways this happens in the rest of life too, for good and bad:

  • The virtuous circle of a team doing better work, getting better customers, who ask them to do better work, leading to more opportunities…
  • Technological innovation
  • Investment, reinvestment and compound interest
  • Population growth
  • Environmental destruction
  • Cattle stampedes
  • Bad sleep, leading to bad decisions and more work, leading to worse sleep…

Feedback loops come with a caveat:

Positive feedback tends to cause system instability. When the loop gain is positive and above 1, there will typically be exponential growth, increasing oscillationschaotic behavior or other divergences from equilibrium. System parameters will typically accelerate towards extreme values, which may damage or destroy the system, or may end with the system latched into a new stable state.

Wikipedia

Do it now, and start small

Here’s a great case study in doing it now and starting small from Fast Company founder Alan Webber. It’s about how Muhammad Yunus founded Grameen Bank, and ended up helping millions of families to a more prosperous future. Weber Concludes:

Start small. Do what you can with something you care about so deeply that you simply can’t not do it. Stay focused, close to the ground, rooted in everyday reality. Trust your instincts and your eyes: do what needs doing any way you can, whether the experts agree or not. Put practice ahead of theory and results ahead of conventional wisdom.

Start small. If it works, keep doing it. If it doesn’t work, change what you’re doing until you find something that does work. Start small, start with whatever is close at hand, start with something you care deeply about. But as Muhammad Yunus told the KaosPilots, start.

Alan Webber, Rule #38 from his Rules of Thumb

Read the whole piece at TimFerris.com.

Bootstrapping the non-profit organisation Rule 2: Do it Now

This is the second in a series applying Seth Godin’s rules of bootstrapping (see also here) to building a non-profit organisation.

Rule 2: Do it Now


Do it now. Not later, not next week, NOW. It’s better than later.

In the non-profit world:

Still do it now

Not much to add on this one. A bias to action is critical, and all things being equal, now is far better than later.

This blog is a great illustration – a month and a half ago I committed to shipping a blog post every day for 100 days. I would set the bar low if I had to, as long as I got something done. Every day.  I’m at 60 posts as I write this, and it dawned on me that it would have taken me an entire year to get this far if I’d committed do a post a week.

In Lean Startup terms, doing it now is a key way of increasing your cycle speed. They might be small steps, but you get something done, you can review it, you can do it better next time as you build-measure-learn. See the next post for more on this.

I guess a caveat for the non-profit world is that you need to tread carefully if we’re dealing with vulnerable people.

But do it now doesn’t mean ‘be a bull in a China shop’ – it just means being commited to taking action, to doing the next thing now.

If you know what you need to do next, then it’s easy – do that, or at least do the smallest next part of that that you can.

If you don’t have clarity about what to do next, the next thing to do is to find out. Do some research. Find the name of three papers. Get hold of them. Make notes on one. Email the person who wrote it to thank them. Each one is a tiny push of the boat (or flywheel, if you’re a Jim Collins fan), giving you a little bit more momentum and making it easier tomorrow.

Rule 2 says “I will not go to bed tonight until I have done X.”

Rule 2 of bootstrapping the non-profit

Do it now.

Thanks Seth.

The meat is on the street

John Wimber, founder of the Vineyard movement of churches, wasn’t renowned as a systematic religious teacher.

Apparently people would ask him “John, when are you going to teach us the deep and crucial stuff – where’s the meat?”

And he’d answer: “The meat is on the street.”

That is, “Go out into the world. You will learn the deep truths of faith by doing it.”

Books, podcasts, blogs are very useful in learning to make positive change in the world. Ideas are wonderful tools.

But we learn our most important lessons by doing – by taking action.

The meat is on the street.

Go!

Who pays? (2)

Shifting to a user-pays model had another significant impact on our work – we became more accountable to the people we serve, and the quality of our work went up as a result.

Accountability and Quality

Under our old operational model we received charitable donations and provided our materials and training to partner schools for free. We were accountable to our donors for how we spent their funds. We did our best for our users, but, well, they were getting our service for free. It was infinitely better than nothing, even if there was the odd typo, or the odd part of the curriculum that didn’t really make sense.

When we began asking users to pay (mainly in an effort to allow us to serve more people), an improvement in quality was an unexpected benefit:

“We’ve got to fix those typos – people are paying for this.”

“This curriculum needs to fit together way more tightly, or no-one will buy it.”

Asking your users to pay creates more direct accountability and a tighter feedback loop to your users. The shift from giving to beneficiaries to selling to customers / clients forces you to focus more intently on creating products and services that meet their needs rather than yours or your donors’, and on making something that they think is worth the cost in terms of time, money and attention.

A second score

A tip on learning to take criticism well from Adam Grant’s Worklife podcast:

Every time I get feedback, I rate myself now on how well I took the feedback…

When someone gives you feedback, they’ve already evaluated you. So it helps to remind yourself that the main thing they’re judging now is whether you’re open or defensive…

You don’t always realise when you’re being defensive.

The second score is the score you get for how well you deal with failure, criticism, disaster.

Your first score might not be what you hoped for, but you can always give yourself a second score.

With thanks to Sharky for the recommendo.