It Ain’t What You Put Into It That Counts

A foolish focus on the inputs can endanger your strategy, company, and career.

 

Have you ever heard someone say something like,  “I’ve worked 75 hours this week.” (Of course you have.)

Have you ever heard a manager or business leader expound on the dollars spent on something?  “We’ve spent ten million dollars on implementing this effort.”

Have you ever seen an approach to business strategy that focused solely on the available inputs?  “We have two factories, the strategy has to focus on those.”

Worse, have you ever witnessed an approach to strategy that only focused on organization, infrastructure, or edifices?  “Let’s build it and then figure it out.”

I’m betting you’ve seen at least one of these.

And really, what’s wrong with focusing on how much work you’ve done, or the money you’ve spent, or the assets you have in place today, or the capital you could deploy tomorrow? Here’s what:  They are all inputs.

A strategy, whether for wars, countries, companies, or individual careers, is about ends, outcomes, objectives.  A strategy without an objective is a dance.  It can be beautiful, but it is ultimately just a play…kabuki at its finest.

When “being strategic” means focusing on the hours you’ve worked or the dollars you’ve spent, you’ve probably already lost the battle.  Why?

For the professional individual, a focus on how many hours you’ve spent doing your job is frankly just silly.  I have a healthy respect for people who work hard; I really appreciate it.  However, if a person works an 80-hour work week when a smarter person would work only 50 and get the same result, why is the input of 80 hours relevant?  When people start to focus on time, particularly in knowledge work roles (we aren’t talking the factory floor here, folks), the organization will suffer.  It usually signals a transition in the conversation from the “responsibilities” of a role–generate an output that has value–to the “rights” of the individuals–work a reasonable work day.  The conversation for an individual ought to be about the product of the work, not the time spent doing it.

A wise senior leader of a global consultancy I know well once told me, “If you can’t consistently do this job in 60 hours a week, you may not be smart enough for the job in the first place.”  That’s a pretty interesting perspective.  A true pro focuses on the outputs of their work and negotiates the resources to ensure the right output at a reasonable input of their own resources.

For companies and senior leaders, the problem is a little different.  Business strategy is about deploying resources to achieve an objective.  Some senior leaders are exceptionally good at these sorts of things without even thinking about it, but some, frankly, are not.  The ones who are not good at it tend to use strategic planning as a reductionist exercise to meet “non-strategic” objectives–budget numbers, financial incentives, etc.–that in all reality don’t tie to the health of the company as a whole. A focus on inputs at a company level usually comes in the form of binding constraints that aren’t really constraints at all.

Instead of asking the question, “What would it take to win that account from that competitor?”, they say, “How can Ralph from accounting take on this new sales role and try to get some wins?”  When hunting elephants, bring enough gun.

To wit, managers use only the talent and capabilities they have today in thinking about their business strategies.  They focus only on the financial resources they have at this moment to achieve their objectives.  They allow themselves to focus on optimizing their existing pie charts of businesses, assets, resources, talent, etc. vs. thinking about what the future pie can look like.  In other words, they focus on the inputs.

So what?  

For yourself, watch out for a creeping sense of martyrdom about how much you put into your job; instead, focus on what’s coming out of it.  Shift the focus to results attained and only then zoom in on what it would take to sustain them.

For your company?  This is tougher.  First, management teams have to articulate practical business objectives for a strategy to be real.  “Take hill 1221 from the enemy” is a strategic objective; “cover 2500 meters and burn only 5,000 gallons of fuel” is not.  Yet we allow companies to run on goals and metrics (or budgets) that look like the latter, and in some cases, they operate with management not even knowing what hill to take.

All this is to say that it’s healthy to ask yourself whether you are too focused on the inputs of your strategy and not enough on the outputs.  It is not, however, to say that constraints don’t matter; constraints are important, and they should be reflected in any strategy.  To use my analogy above, a strategy that says “Take hill 1221 from the enemy using only a cigarette lighter, five rubber bands, and a Daisy bb gun” is what I would call a good start toward revising your objectives.

On hill 1221, that might get you killed.  In your company, such ignorance of constraints might just get you fired.  It’s the strategist’s job (and we are all strategists at some level) to balance strategic objectives with degree of difficulty and possible resources (not resources on hand…important distinction, that).

A foolish focus on the inputs can endanger your strategy, company, and career.

Now, if you’ve come this far, take a moment to leave a comment.  Hundreds of people read this blog, and your insights matter. 

 

The Alchemy of Apple’s Strategy

Apple created a culture of freedom and playfulness out of a product philosophy of absolute control. It was all about trust.

If I told you about a regime that was run by a notoriously secretive autocrat who locked out all democratic suggestions or changes and brutally suppressed the press, would you link it to the Dalai Lama?

Mohandas Gandhi?

Nelson Mandela?

Jackie Robinson?

No?

I’d have to agree. When your mind turns to suppression, control, and dictatorship, you certainly don’t think of people who represent broken barriers, peace, and freedom.

So how did Apple under Steve Jobs take an approach that was straight out of the totalitarian playbooks and turn it into the most celebrated consumer strategy of all time? How did Apple back up—earn, if you will—its association with the trailblazing freedom fighters above, writ large in its “Think Different” campaign?

Trust.

Trust is what allowed Apple to turn the grayest iron curtain of strategies into the most golden consumer product reputation possible, and trust is what enabled the alchemy of Apple’s strategy. That’s the genius of Apple over the past 20 years.

But Apple is only part of the story here.

The larger story is about why and when control can be exercised over customers (and other followers like employees, vendors, and partners). Control is an expression of power, and power, in the commercial world, is something that is derived from consent. It’s derived through trust.

Consider some of the ways Apple exercises its power:

  • Apple exercises a fanatical commitment to controlling the customer experience – a bit of corporate DNA born directly from the personality of Steve Jobs. Apple tightly controls the product, its customer interface, what peripherals work with its products, and what software runs on its products. It maintains a closed ecosystem.
  • Apple tightly controls messaging, going so far as to sue young bloggers who speculate too correctly about the next product release.
  • Apple is renowned for its aggressive supply chain management, at times driving suppliers out of business through punitive control.
  • Apple uses its massive media appeal to aggressively and maniacally extol the “next great thing” from its own pipeline and subtly denigrate the features its competitors roll out. Who (above a certain age) can forget the “been there, done that” meme from Apple acolytes when Windows 95 launched…?

But this authoritarian behavior comes with a promise: an exceptionally clean (and generally delightful) customer experience. That’s the promise—a distinctive and exceptional experience. And so far, it has been a credible one.

Consumers cede control to Apple and, in return, Apple has delivered on its promises. Like many movements that start small, Apple’s resurgence started with roughly 5% of the PC market – a core group of fanatical followers who had ceded control years ago. Today, an astounding proportion of mobile, music, and computer consumers have bought into the strategy of ceding control and relying on trust.

Apple’s strategy has been one of offering consumers overwhelming simplicity, the message being: Simplicity sets you free. But as we’ve seen, simplicity comes with a tradeoff: a loss of choice.

The Concept

The reality is that Apple has illustrated a very valuable, stable approach to customer engagement and strategy. The degree of control a company seeks to apply to its customers’ experiences successfully relates directly to how much trust the customers have in the company.

I highlight successfully because plenty of companies have tried to control all aspects of customer experience without trust and failed. You can only pursue this strategy for a short while. Companies (and as you know, I relate these concepts to leaders as well in most of my writing) that attempt a high control strategy with low trust must either build trust quickly or stop. Such a strategy is an example of an unstable equilibrium. Customers (and followers) leave you when you are in their kitchen too aggressively and without welcome.

Throwing all this into a matrix (because who doesn’t love a good matrix?) we get something like this:

apple-matrix

These lessons apply to management and leadership as well. As we gain more trust, we can take more control, but when we lose trust, we lose our ability to exert control. The uniqueness of the experience we provide is both a route to building trust with those who matter and a route to highly profitable relationships.

What’s the message for executives thinking about their business, talent, or organizational strategy? Well, it’s pretty simple:  You can be an autocrat, but you’d better have the trust of those around you that that outcome will lift all boats, or else you won’t build anything enduring.

The takeaway: Don’t forget trust.