Two Standard Deviations

One hundred people who are working separately will never lift a thousand-pound boulder…

The following is an excerpt from my new book, Leadership Starts (and Ends) in Your Head…the rest is detail.

Chapter 4.  Maintain Two Standard Deviations

I had lots of statistics classes in college. We learned a ton of formulas for measuring things like economic order quantity, measuring cycle times, and the differences between mean, median, mode, and midrange. We learned how to calculate the probability of certain outcomes and how various outcomes relate, or don’t relate, to each other. These are all great, and each has its place.

One of my operations management classes (which came after finishing the statistics prerequisites) showed us a nice set of measurements and formulas for determining if something is “in control” or not. Funny thing is, I don’t remember the actual formulas, but I definitely remember the lessons.

If you take a series of measurements of something like cycle time (the time it takes to produce a widget, for example), you can plot these measurements on a graph. By calculating the average (which might actually be the mean, midrange, or mode—I can’t remember), you can then derive the standard deviation. If your cycle-time measurements in this example are all within two standard deviations of the average, then your system is, by definition, “in control.”

I’ve probably botched it in terms of the statistics, and that isn’t the important thing here. The key lesson is that everything you do as a manager should be within two standard deviations. The standard-deviation measurement is a metaphor for your behavior, your reactions to good and bad news, your response to competitive threats, and the way you conduct your life in general. By maintaining two standard deviations, people around you can rely upon that aspect of your character. They need to know, and rely upon knowing, that you will be measured in your response, your feedback, and your approach to business issues.

This means that you won’t be the type of manager who storms around the office, yelling at people when bad news arrives. You’re also not the person who runs around whooping it up and hugging everyone when good news comes your way. When a competitor makes a move that potentially damages your organization, you will exercise restraint in your emotional response.

Does this mean you become a robot? I sometimes say that I am a robot in a work setting, but I am joking when I say it. As a manager, you are by no means a robot. You can be happy, sad, angry, afraid, sick, and tired, or any other range of emotions. But you are the one in control of each of these emotions.

The two-standard-deviations rule provides a lot of leeway in your behavior, both positive and negative. You will become a more subtle and thoughtful operator if you keep two standard deviations in mind as you move through your day and your career.

Those who work with you, report to you, and rely on you will appreciate this two-standard-deviations philosophy. Volatility in a work setting stifles creativity. Who will take the risk of being creative when his or her manager is a powder keg, waiting to blow up at the first sign of a mistake? Creativity breeds innovation but also carries the risk of failure. A failure that no employee will risk if his or her manager’s response to failure is to blow up and start yelling.

Such an environment also stops the flow of honest and accurate information. Employees will adjust the flow of information to a volatile manager in an attempt to yield a positive response. The content of the information becomes secondary. The delivery becomes the primary concern for the employee. This leads to information being skewed, manipulated, or shielded from the unreasonable manager. Without an accurate information flow, decisions and strategies will not be as effective, and may be wrong altogether.

Employees take on the style and demeanor of their managers. Not just their direct managers, but all the way up the chain of management to the top of their organizations. While this adoption isn’t 100 percent, obviously, the adoption is quite evident.

A volatile or out-of-control manager will have an employee base that is similarly volatile. An environment that lacks trust will develop. Trust is the bedrock of any team. Without an environment of trust, the multiplying power of the strong team is eliminated. Without trust, working across organizational boundaries is nearly impossible. The organization becomes a group of disconnected islands, often lobbing shells at each other, instead of focusing on delivering results for the organization.

One hundred people who are working separately will never lift a thousand-pound boulder, but one hundred people working together and trusting each other will be able to lift it. Maintaining two standard deviations in your approach to management will lead to honest and accurate flows of information, promote a trusting environment, and leverage the power of a strong team of employees. Harnessing this power is the key to management success and the success of your organization.

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© 2014 Bob Dailey.  All rights reserved.

 

 

The Smartest Person in the Room…

The smartest person in the room isn’t who you think it is…

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Isn’t who you think it is.

Isn’t the one who spends most of the meeting talking.

Isn’t the one who thinks everyone will benefit from their wisdom and experience.

Isn’t the one worried about their image as a go-getter.

Isn’t the one trying to answer every question.

Isn’t the one who knows everything.

The smartest person knows they don’t have all the answers.

The smartest person knows they don’t have all the right questions.

The smartest person is constantly learning, and always curious.

The smartest person spends most of their time listening.

The smartest person always surrounds themselves with other smart people.

The smartest person never worries about who gets the credit.

The smartest person in the room doesn’t care who the smartest person is.

 

 

Questions of Talent

How much time do you spend thinking about the talent in your organization?

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Talent is the life blood of any organization. This is easily forgotten as organizations try to remain relevant in a world characterized by nanosecond attention spans.

It doesn’t matter what product or service your organization delivers. Having the right talent in the right places at the right time is the key to your organization’s success.

With so much riding on talent, is it a top priority for you? How much time do you spend thinking about the talent in your organization?

How engaged is the talent in your organization? Do they really care about the mission, or are they just going through the motions, collecting a paycheck?

Do you know who’s ready to move up, who’s moving sideways, and who needs to move out?

What are you doing about it?

What about your own talent? Are you prepared to move up? Do you still fit in your role, or your organization?

Who are you developing to be your replacement?

Are you truly engaged in the mission, or just going through the motions?

If you aren’t fully engaged, it’s time to either move on, or re-commit. Life’s too short to live somewhere in between.

 

What would you do if you weren’t afraid?

Fear can motivate. Fear can paralyze. It can save your life. Unfortunately, it can also control your life.

“…let me assert my firm belief that the only thing we have to fear is…fear itself — nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance.” –Franklin Delano Roosevelt (first inauguration address, 1933)

Fear can motivate. Fear can paralyze. It can save your life. Unfortunately, it can also control your life.

Here’s a list of fears to consider:

  • Failure
  • Embarrassment
  • Public Speaking
  • Death (I’m pretty sure a lot of people fear the first three more than death)
  • Not Being Accepted
  • Commitment
  • Flying
  • Disappointment
  • Success
  • Fame
  • Responsibility
  • the Unknown
  • the Dark
  • New Experiences
  • Being Blamed
  • Heights
  • Snakes
  • Spiders
  • Sharks
  • Geese
  • Open Spaces
  • Anywhere but Home
  • Confined Spaces

I know people who have each of these fears. I have some of them, and I’m sure you have some as well.

Fear is generated in our Lizard Brain . That primitive part of our brain that keeps us alive while we’re thinking about other stuff. Our Lizard Brain means well, and only has our best interest in mind. It’s the center of our survival instinct. It will do anything it can to help us avoid the things we fear. Unfortunately, it’s part of our brain that we barely control.

One way to gain control of our fear is to discover, and admit, that it exists. That, and admitting our fears impact the things we choose to do (or not do). It may help to discuss your fears with someone you trust, or to contemplate them on your own. Either way, understanding your fears is the first step toward controlling them.

Consider a ten-year-old, standing in right field. He knows that he’s in that position because he’s the worst player on the team. Fly balls rarely make it to right field in little league games, so he’s safe out there. What happens when the ball flies into right field? What’s the first thing on that ten-year-old’s mind? Probably something like, “Please don’t let me screw this up and drop the ball.” His first thought comes from a place of fear. Did he catch the ball? Did he make the right play once he had the ball? Maybe, but doubtful.

Imagine the same player who knows he’s in right field because he’s the only player who can make the throw all the way to third base. He has a gun for an arm, and he may be the best player on the team. What’s he thinking when the ball flies into right field? “I can’t wait to get that ball so I can make the play.   We are going to stop this rally and win the game!” Fear isn’t part of the equation. Did he catch the ball? Did he make the right play? Probably.

Fear creates completely different experiences for these ten-year-olds. The secret is that this applies at all ages, in nearly everything we do.

How many of your goals are “off limits” because you’re afraid? How many potential goals are eliminated by fear (your Lizard Brain), before you even know about them?

How often is fear your first response? How often do you talk yourself out of something that’s outside your comfort zone? It’s easy to do…avoiding fear is a powerful motivation.

Start small. Choose one thing that scares you and go after it. Embrace the negative energy of fear and turn retreat into advance. Each time you do this, your list of fears will shrink.

What would you do if you weren’t afraid?

Do it today!

 

 

The Bargains We Make

I bargained with Life for a penny…

I came across this classic poem recently:

My Wage

I bargained with Life for a penny,

And Life would pay no more,

However I begged at evening

When I counted my scanty store.

For Life is a just employer,

He gives you what you ask.

But once you have set the wages,

Why, you must bear the task.

I worked for a menial’s hire,

Only to learn dismayed,

That any wage I had asked of Life,

Life would have willingly paid.

–by Jessie Belle Rittenhouse (1869-1948)

My Question for You

What is your bargain with Life?

Are you working for a penny, or something more?

How about your end of the deal?

Are you even keeping score?

If we get out of Life,

Only what we ask,

I say go for the Moon,

And reach for the stars.

But, are you willing to bear the task?

Will This Be On The Test?!?!

I’m told that this is one of the top questions students (and parents) ask of teachers.

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I’m told that this is one of the top questions students (and parents) ask of teachers.

Test questions in school come in many standard forms:  true or false, multiple choice, essay…just to name a few.  Oh yeah, and word problems!  Decipher the riddle, find all the numbers that fit into formulas, and arrive at an answer (hopefully, the correct one).  And, of course, remember to show your work.

We’re taught in school that there is only one correct answer to most questions.  Columbus discovered the New World in 1492, not 1493.  It takes two hydrogens and one oxygen to make water, not two oxygens and one hydrogen.  The student’s job is to learn (memorize?) the correct answers and then “ace” their test by answering all of the questions correctly.

It’s no wonder students ask what will be on their tests.  After all, their grade is in play.  Who wouldn’t want to know what they should study, and what they can ignore?  So much is riding on the outcome.

Tests outside of school aren’t as easy.  The questions don’t come from our teachers.  Variables are often missing, and formulas rarely provide one definitive answer.  They aren’t always fair.  They don’t come with a study guide.  There’s no advice about what should be studied, or ignored.  Real life tests come from our family, friends, customers, co-workers, managers, elected officials, our children’s teachers, strangers, and ourselves…on a daily basis.  A lot more than a grade is in play with most of these tests.

Attention to detail, listening to what is said and unsaid, curiosity, creativity, openness to risk, connecting with others we trust, and a clear sense of right and wrong are the guides we have in answering the real life test questions we face.

What’ll be on your next test?  Everything you’ve experienced in life up to this point, and probably a few things you haven’t seen before.  Here’s hoping you studied well.

 

Test Question:  What’s the connection between this post and the sunrise photo?

Sea Turtles, Conversion Ratios, and Time

The only thing you get to do with your time is…

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I was in Kona last week.  I could write paragraph after paragraph about how awesome the Big Island is.  How the island has nearly every climactic zone on the planet represented.  The stark beauty of its huge lava flows, the serenity of its beaches, the fun I had boogie-boarding for the first time in 30 years.  Maybe in another post…

For me, the most memorable part of our visit was snorkeling with sea turtles.  Their fins are like wings in the water.  Sea turtles don’t just swim.  They soar and glide.    Every movement is graceful.  Effortless.  Each movement has a purpose.  Theirs is a plan that unfolds in slow motion before your eyes.

Did I mention that they’re holding their breath?  In yet another almost effortless motion, they pop their heads above water for about three seconds to take a new gulp of air.  With only three seconds of air, sea turtles can stay underwater a long time…3-4 hours.

Three seconds of air providing hours of underwater time.  How’s that for a conversion ratio?  Consider the value sea turtles extract from such a limited supply of air.

Think about your resources.  What are they?  How much value are you extracting from them?

I submit that time is our most precious resource.  It marches on, relentlessly.  You can’t speed it up, or slow it down…and you can’t buy more of it.

One can’t talk about time without a few quotes on the subject:

“The bad news is time flies. The good news is you’re the pilot.” Michael Altshule

“Time is really the only capital that any human being has, and the only thing he can’t afford to lose.”  Thomas Edison

“Don’t say you don’t have enough time. You have exactly the same number of hours per day that were given to Helen Keller, Pasteur, Michaelangelo, Mother Teresa, Leonardo da Vinci, Thomas Jefferson, and Albert Einstein.”  H. Jackson Brown

The only thing you get to do with your time is choose what you do with it.  Choose wisely, and be sure to spend some of it snorkeling with sea turtles.

Photo Credit:  http://www.wallsave.com

Your Talent Won’t Be Enough

Enough for what?

There are very few truly one-man (or one-woman) shops.  Show me a successful sole proprietor, and I’ll show you someone who leads, and relies upon, a team of talented individuals…whether they realize it or not.

How can this be?  Doesn’t the definition of sole proprietor mean that one person is the sole talent?  Well, sort of, but not quite.

Imagine that you’re an awesome flower arranger.  Your bouquets are exquisite.  Their beauty is unmatched.  You decide to take a risk and open your own flower shop.  Your confidence is high.  After all, your flower arrangements are incredible.  Customers will come from miles around to buy your arrangements.

A few weeks into the process of opening your new shop, you discover that flower shops don’t run on flower arrangements alone.  There are building leases to negotiate, furniture and fixtures to procure, point-of-sale systems to deploy, website interfaces to create (if you’d like to receive orders from some of the national flower delivery services), suppliers to line up, insurance coverage to purchase, merchant account services (if you plan to take credit cards), and payroll systems (for the one or two part-time employees you’ll be hiring, just for starters).

You’ll need to connect your talent with the talents of a wide array of other people, just to open your shop.

It’s the same thing in a larger company.  Your ability to build trusting relationships across your company, and across your industry, will have more to do with your long-term success than individual talent.  Creating a reservoir of trust with talented people, and relying on them, just as you’d rely on yourself, is critical to your success…and theirs.

Your talent, alone, won’t be enough.  Enough for what?  Enough to accomplish whatever your definition of success is.

Defining Semi-Retirement

I’m definitely not retired, although I have let the term, semi-retired, roll around in my head. It seems accurate, for now.

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For the first time in nearly 30 years, I’m living the life of a semi-retired person.  I’m not entirely sure what that means, but it all began about six weeks ago.  That’s when I parted company with my employer after a little over fourteen years of service.  I thoroughly enjoyed my time there.  I think we were great for each other.  I learned a lot, contributed lots of value, helped many people advance in their careers, and enjoyed the fruits of success.

I often counsel people to remember that in any organization, large or small, every day could be your last.  Many probably think I’m being a bit dramatic with this advice.  While not speaking literally (well, maybe I am), the main message is to be prepared for a sudden exit, either by your choice, or the company’s.

My departure was my choice and the process took a few months.  Heeding my own advice, my wife and I were well prepared.  We’ve saved and invested (sometimes wisely) for our entire life, lived simply, and recently wrote our last tuition check (a big milestone in any parent’s life).

My friends congratulated me on my early retirement, but I was quick to push back.

I’m definitely not retired, although I have let the term, semi-retired, roll around in my head.  It seems accurate, for now.  “Semi” opens the door to a world of options, and sets a high bar for what I’ll choose to do in the future.

What’s next?  I’m not sure, and I kinda like it like that.

Remembering to Breathe

Nearly all sports are the same (at least on one level).

Nearly all sports are the same (at least on one level).  It doesn’t matter if that sport is soccer, baseball, golf, archery, skeet shooting, curling, downhill skiing, long distance running, ice skating, motorcycle racing, or competitive yodeling.

They each start with the same fundamentals:

  • Relax and stay loose
  • Calm your mind
  • Visualize success
  • Bend your knees
  • Don’t forget to breathe.

One could make a case that each of these fundamentals are of equal importance, but my money is on the last one.  Consciously remembering to breathe puts us in the right state of mind to remember the other fundamentals.

We each face challenges on a daily basis.  Some are small, and some are huge (at least from our perspective).  Here’s a strategy for tackling each of them:

  • Relax and stay loose
  • Calm your mind
  • Visualize success
  • Bend your knees
  • Remember to breathe!