Full and hopeful conviction

One of the great nuggets – that I’d otherwise have lost had it not been for the visual notes I took – from the Adaptive Leadership piece in HBR that I talked about yesterday is about how to run experiments in adaptive settings.

Since adaptive challenges have unknown solutions, by definition we must make adaptive leadership decisions with incomplete information.  Even better, often the biggest breakthroughs come from holding two seemingly opposable ideas, goals, even values at the same time and trying to meet two seemingly incompatible needs.

In these adaptive situations, our only choice is to run experiments – to make a decision based on the information we have, with a clear statement of our hypothesis and an articulation of what data we will use to determine if the experiment is working.  (Very Lean Startup-y, in a very different context, which is always nice to see).

The soft underbelly of these situations isn’t WHETHER to run experiments (we have no choice) it’s HOW we run these experiments.

It’s all too tempting to view these tough calls at 51-49 situations, to continue to see all sides of the argument even after you’ve started running the experiment.  This is even more tempting in situations in which you disagreed with a decision – it’s so alluring to talk about the path not taken, to keep on hedging your bets just in case this path doesn’t work out.  Think how smart you’ll look if you have an “I told you so” moment three months from now.

Here’s another way to look at it, from the Adaptive Leadership piece:

Holding incompatible ideas in your head at the same time is a little like deciding to get married. At the moment you decide that this is the person you want to spend the rest of your life with, you have to fully embrace your choice; you have to believe wholeheartedly that it is the right decision. But your practical self also knows that you probably would have fallen in love with someone else under different circumstances. So how can your intended be the only “right” one for you? If you treated the decision to marry this particular person at this particular moment as a 51–49 question rather than a 90–10 question, you would never take the leap. The same paradox applies to adaptive leadership interventions. You have to run the experiment with full and hopeful conviction.

I’m much more of a romantic than that, so the analytical approach to the decision to get married just doesn’t sit right with me.  But that’s another conversation.

What I like is the memorable analogy and the great last sentence: “You have to run the experiment with full and hopeful conviction.”

Not doubt, not worry, not with side conversations about how this will never work or with hesitation or second guessing.

Full and hopeful conviction.

How do I learn?

Back in May I realized that Peter Drucker’s Managing Oneself was a cornerstone piece of writing that I need to reread annually.  Its simplicity of language belies a depth of clarity and analysis about what it takes to understand oneself and, from that strong foundation of self-knowledge, build a successful personal and professional life.  I’m grateful to my friend and colleague Ankur Shah for sending it to me.

While most of the topics Drucker covers about self-knowledge and taking feedback were topics I’d expected to see, I was pretty taken aback by the section titled “How Do I Learn?”  I’d just never given the questions he asks any thought.  An excerpt:

How do I learn? The second thing to know about how one performs is to know how one learns.   Many first-class writers – Winston Churchill is but one example – do poorly in school.  They tend to remember their schooling as pure torture.  Yet few of their classmates remember it the same way.  They may not have enjoyed the school very much, but the worst they suffered was boredom.  The explanation is that writers do not, as a rule, learn by listening and reading.  They learn by writing…

Some people learn by taking copious notes.  Beethoven, for example, left behind an enormous number of sketchbooks, yet he said he never actually looked at them when he composed.  Asked why he kept them, he is reported to have replied, ‘If I don’t write it down immediately, I forget right away.  If I put it into a sketchbook, I never forget it and I never have to look it up again.’  Some people learn by doing.  Others learn by hearing themselves talk…

Am I a reader or a listener? and How do I learn? are the first questions to ask…

I found this perplexing because I honestly had no idea if I was a reader or a listener.  I didn’t find school torture at all, I read like crazy, so it seemed like I had to be a reader.

But the more I sat with that answer the less right it felt.  My best insights come by talking things through with people.  It’s only through hands-on, digging in conversations that things become real to me, that I can imagine how a solution will interact with the real world – what will and won’t work, and what’s holding something back.  I’m a talker/listener.

And then I started to think about all the reading that I do – what do I make of that?  Specifically, I started thinking about how well I recall things.  There are a lot of people in my life who have incredible memories; my wife is one and I know I don’t hold onto information the way she does (wish I did).  As a stark reminder of this, last month, just before I threw out 15 feet worth of 10 year old business school cases, I flipped through a few of the binders and was humbled by how little I recalled of the more than 1,000 cases I’d read. (Existential crisis on the cost of business school left for another day)

If I’m a listener and a talker who loves reading, and if I read to push my thinking, then I have to do something about reading differently.  It occurred to me to make my reading a bit more like blogging, by forcing myself to process information by capturing it and writing it down.  My parameters were to make the notes as visual as possible, to keep it to a page, and to focus on big concepts.

I had my first go at this for another “must read and reread piece” last week – The Theory Behind the Practice: A Brief Introduction to the Adaptive Leadership Framework by Heifitz, Grashow and Linsky.

What I’ve learned so far from this is:

  1. The decision that something I’ve read is worth processing in this way is itself important
  2. The little drawings of people and all the visuals help a lot.  For example the person holding the flag is the “leit,” (source of the word “leadership”) who went out ahead of the army carrying the flag.  He was often killed.  Kind of impossible to forget the heat you take as a leader with that little drawing floating around in my head.
  3. For the way my mind works, all I need the notes for is prompts, so they can be brief.  That is, without the notes a year from now I’d only remember 25% of the big concepts in the piece (e.g. the difference between technical and adaptive leadership will stick either way), but the moment I see high-level prompts in my notes I’m transported back to the full concept.  No need for the notes to provide all of those details

Creating these notes was easy enough to do with a 31 page HBR article.  I suspect for a 250 page book it will take more doing, but I’m going to give it a go, because if I can’t boil it down what are the chance that it will affect my actions for more than a month or so?

What about you?  Do you know how you learn?  Once you’ve figured it out, what do you do differently?

What sets you apart

Not smarts or capacity or competence.

Not pedigree.

Not even accomplishments if they didn’t require putting yourself on the line.

Relentless passion? Courage? Going out on a limb? Refusal to give up? Yeah, now we’re getting somewhere.

It’s virtually impossible to lead if you’re not fully invested. It’s impossible to lead if the (potential) failure wouldn’t be personal. It’s impossible to lead without having something at stake.

What sets you apart is showing that you’ve done something that looks like that.

P.S. This all translates directly into questions to ask – and questions to skip – in interviews.

20 questions every fundraiser must be able to answer

(subtitle: this is why I can’t for the life of me understand how “fundraiser” became synonymous with “not totally integrated with the core work of the organization”)

  1. What are your top three priorities right now?
  2. Where will the organization be in 5 years?
  3. What’s your annual operating budget?  Walk me through it.
  4. What does success look like for the organization?
  5. How will my donation make an impact?
  6. How much do you spend on overhead?
  7. What’s your long-term vision for sustainability?
  8. How much cash do you have on hand?  Is it too much or too little?
  9. What is your organization’s theory of change?
  10. What are your biggest challenges?
  11. How much cumulative funding has your organization raised since inception?
  12. Help me understand social impact and how you measure it?
  13. What else can I do to help you – I want to give more than money?
  14. Who are your competitors and how do you compare to them?
  15. Can I meet your CEO?
  16. How much did you grant/fund last year? How and why did that differ from prior years?
  17. If I support you, I’d like your organization to do ___________ [this project/in this geography/with these partners].  Will you?
  18. How can our organizations work together?
  19. Why are you passionate about this work?
  20. [ADD YOURS HERE]

[UPDATE: thanks to a copy-paste slip-up, two of the items on the list were the same.  So #20 is now blank so you can add your “best question” in the comments section!]

Whence solidarity?

Here’s a simple idea on what to do about taxes for the wealthiest Americans:

For those making more than $1 million — there were 236,883 such households in 2009 — I would raise rates immediately on taxable income in excess of $1 million, including, of course, dividends and capital gains. And for those who make $10 million or more — there were 8,274 in 2009 — I would suggest an additional increase in rate.

Before arguing the merits of this proposal, I should point out something important: it’s not my proposal.  No, this is Warren Buffett’s proposal as detailed in his courageous Op-Ed in yesterday’s NY Times, Stop Coddling the Super-Rich.

Some shocking (to me) tidbits from the Op Ed: Warren Buffett paid 17.4% of his taxable income (about $7M) in federal income tax last year, less than the other 20 people in his office – this because most of his income is in the form of “carried interest” rather than (for a regular working Joe) in payroll taxes.  This is why, even though the aggregate income of the 400 richest Americans has increased more than five-fold in the last 20 years – from $19.6 billion to $90.9 billion (an average of $227 million in annual income!) – the tax rate paid by this group has dropped over this period from 29.2% to 21.5%.

Of course the tempting headline to write is something like: “FEDERAL TAXES PAID BY THE RICHEST AMERICANS HAVE DROPED BY ONE THIRD IN THE LAST TWO DECADES.”

But that’s exactly the approach that’s not going to work – think of the cries of “class warfare” that would result.

In fact the whole narrative around the budget stalemate in Washington is completely stuck, and part of the reason is because we have no shared language to talk about this problem.  Republicans talk about “raising taxes on the rich” and “killing jobs,” while Democrats, at best, talk about the super-rich “paying their fair share” and about “increased revenues.”

I wish there were more talk of solidarity.  A close friend of mine in Tokyo shared that almost no one is turning on their air conditioning in the wake of the Fukishima nuclear plant disaster.  Can we not have the same sense of shared purpose around turning around the U.S. economy – the crisis is real, millions are out of work, people have gone from spending six months looking for a job to, now, more like two years.  (Buffett: “While the poor and middle class fight for us in Afghanistan, and while most Americans struggle to make ends meet, we mega-rich continue to get our extraordinary tax breaks.”)

How long until we turn the budget conversation from one about divvying up a fixed pie to one about collectively solving this problem?  And why is it so hard to talk about the notion that the wealthiest should not, on average, pay a lower percentage of their income in taxes than should middle class Americans?

As Warren Buffett said, “I know well many of the mega-rich and, by and large, they are very decent people. They love America and appreciate the opportunity this country has given them…My friends and I have been coddled long enough by a billionaire-friendly Congress. It’s time for our government to get serious about shared sacrifice.”

No hobbies

People dabble in everything.  Restaurants and bed n’ breakfasts are popular semi-serious pursuits – romantic ideas right up until the moment when you’re mopping the floors or scrubbing pots with ammonia at 2am.  Then, they’re just hard work.

Of course restaurants that don’t work flame out (not 9 out of 10, which is the conventional wisdom, but three out of five in the first five years): if not enough people come through the door to buy dinner – or if you don’t manage your staff right, or purchasing right, or any other number of things – you don’t make ends meet and you’re forced to close up shop.

Nonprofit work is a sometimes hobby too, but without the floor-scrubbing to keep us honest.  So nonprofit service, philanthropy, board service or a part-time CEO role can be something we do a little bit on the side, when it’s easy and convenient (meaning: a little bit well) because, well, doing something is better than doing nothing.

It’s not though.

Doing something poorly and inattentively, especially service work, can be worse than nothing, because we’re making promises we can’t keep to people to whom too many promises have already been broken.  Real lives, real hopes, real dreams walk through our doors every day, and if we don’t treat these dreams with the respect, the seriousness, and the professionalism they deserve, we and they are better off just staying home.

We can do this just a few hours a week, do this as part of something bigger, do this in whatever way works in our lives.  But no hobbies, please.  It’s just too important.

 

The ones we’re waiting for

Yeah, it’s us.

What if you knew that no one else was coming?  What if it’s up to you?  What if all the ideas you’re quietly kicking around are desperately needed by your organization and in the world?

I’ve seen too many amazingly capable people (at all levels – some very senior) spend their energy in side conversations  diagnosing the problem, all the while acting like it is someone else’s job to FIX the problem.

Maybe someone else isn’t coming.

Maybe their train got delayed or they got lost.

Maybe it’s just you.

How would you act now?

Waiting for a white knight who will set the right tone, expect the best, inspire others, make the tough call, lead with clarity of vision AND all the official authority that you might not have (but maybe you do!), that’s still just waiting.  And waiting around or complaining on the sidelines makes you part of the problem.   So does saying that you had a great idea but no one listened.  Having the idea isn’t enough.  You need to persuade people that it’s right.

It’s just us, and time’s a wastin’.

My toothbrush was good enough

My toothbrush was good enough.  In fact, it had been good enough for a while.  I didn’t need the Colgate 360 toothbrush, and I doubt you did either.

Admittedly, it’s an impressive toothbrush.  Look at all the features packed into this baby: a tongue and cheek cleaner, multi-function bristles, polishing cups, a raised cleaning tip to “tackle those hard-to-reach places at the back of your mouth,” and (of course) those handy-dandy “raised rubber grips for better grip, and wide thumb grips for better control.”

I’ve got nothing against good oral hygiene.  Please brush and floss daily, with whatever toothbrush works for you.

My point is that it’s obvious that we are WAY down the curve of declining marginal benefits for innovation on the toothbrush as a product.  Do we need a no-slip handle with gel and little knobby bits?  No. I don’t think toothbrushes were flying across bathrooms across America, causing anger and frustration for millions, and leaving mouths full of unsanitary plaque and gingivitis.

Even if the handy-dandy Colgate 360 is demonstrably better than the straight-handled, one-type-of-bristle toothbrush I got for free from the dentist in the 70s, you’ve gotta believe that we are, today, somewhere near the pinnacle of how much better the manual toothbrush can get.

Yet the world is set up so that it makes good sense to keep on tricking out our toothbrushes.  On the back of the 360, Colgate’s share of the toothbrush market has jumped from 28% to 36% in the last two years.  The better brush is paying off for them, for now.

But what will the next 50 years bring?  How much better can our toothbrushes get?  We’re hitting a wall in terms of improvements here, yet that won’t stop armies of our best and brightest from fighting over toothbrush market share for the next few decades and beyond.

So the question becomes: how do we shift the frameworks and the incentives so that more of our massive ability to innovate gets applied to things that – we can all agree – matter more and are harder to tackle?    Because I for one am betting on the power of innovation, much more than more money, as the greatest lever in accelerating the fight on poverty and social exclusion.  Yes, the rise of social enterprise, the entry of the Gates Foundation on the scene, more progressive philanthropy and the overall improvement in the quality of analysis and thinking in our space are all encouraging, but we’re still getting lapped by the toothbrush-makers, the razor-blade improvers, and the folks rolling out ever-more-clever financial products.

So when I’m asked whether I think the social enterprise space has gotten too “hot” for its own good and whether there are too many people chasing too few jobs, I think nothing of the sort.  My hope is that we’re at the beginning of a generation-long trend in which our best and brightest feel a sense of calling, of responsibility, and of service that will fundamentally transform our labor force, how we live our values, and, ultimately, the societies we build here and around the globe.

A big piece of this will be a shift in incentives, in what we value, and in who we hold up as heroes.  The faster we can make this shift, the better, because I for one am not looking forward to the inevitable wunder-razor that no doubt will dominate supermarket shelves in 2050 (thanks Russell!!):

The list makes no sense without you

Try this: write down everything you currently do in your job.  Make a good, clear list with step-by-step instructions.  Imagine someone’s really going to read and use and follow this document.

Could they do it?  Could they follow all the steps and do what you do?

I hope not.

What you have to offer is so much more than a list.  We don’t need you to accomplish specified tasks that can be boiled down so succinctly.

We need the list to make no sense without you, because you are the one who makes things happen, who anticipates and makes things more joyful and surprising and unexpected for your customers and your co-workers.

We need the list to make no sense without you, because you naturally coach and mentor and advise and counsel people around you.

We need the list to make no sense without you, because even if some of the tasks seem small or less grandiose than you’d like them to be (right now), you do them with such relish, conviction, and quality that it always ends up being more than the sum of its parts.

We need the list to make no sense without you, because you are doing emotional work that has meaning and spirit and soul, and there’s no handbook for that.

The nonprofit chasm

Here’s how a former CEO (for about a decade) of one of a well-known, well-respected U.S. charity started his story about his time there:

“It was a federated structure, so as CEO I raised only 20% of the money.  So of course I had no power and no authority.  Sure, I had it on paper, but really I had nothing.”

So here’s the chasm we have to cross in our sector: the good CEOs obviously get it, they understand that who you take money from is who you are; and they understand the inextricable link between what funds come in (and who brings them in) and power, strategy, and decision-making within the organization.

Yet at the same time there’s general agreement that nonprofit fundraising is still mostly broken, that fundraising jobs are career dead-ends, that fundraising is “overhead” (read: waste, something to be minimized).

Here’s a thought: let’s borrow a page from the corporate playbook.  Let’s take our best, highest-potential up-and-comers and put them through multi-year leadership rotations through ALL major functions in the organization (and no, it doesn’t count if they do 7 program rotations, one for each of your program areas, and then 1 “back office” rotation to cover HR, marketing, and fundraising).  That way no one gets to the top without having been on the front lines.

Oh, we also need a little more rabble-rousing.