‘Mythbusters’: Six Steps To Greater Diversity And Superior Results

‘Mythbusters’: Six Steps To Greater Diversity And Superior Results

Most of the time “diversity” is a code word for adding women or minorities to an organization.  But that is only one way to think about diversity, and it really isn’t the most important.  To excel you need diversity in thinking.  And far too often, we try to do just the opposite.

Mythbusters” was a television series that ran 14 seasons across 12 years.  The thesis was to test all kinds of things people felt were facts, from historical claims to urban legends, with sound engineering approaches to see if the beliefs were factually accurate – or if they were myths.  The show’s ability to bust, or prove, these myths made it a great success.

Workplace DiversityThe show was led by 2 engineers who worked together on the tests and props.  Interestingly, these two fellows really didn’t like each other.  Despite knowing each other for 20 years, and working side-by-side for 12, they never once ate a meal together alone, or joined in a social outing.  And very often they disagreed on many aspects of the show.  They often stepped on each others toes, and they butted heads on multiple issues.  Here’s their own words:

“We get on each other’s nerves and everything all the time, but whenever that happens, we say so and we deal with it and move on,” he explained. “There are times that we really dislike dealing with each other, but we make it work.”

The pair honestly believed it is their differences which made the show great.  They challenged each other continuously to determine how to ask the right questions, and perform the right tests, and interpret the results.  It was because they were so different that they were so successful.  Individually each was good.  But together they were great.  It was because they were of different minds that they pushed each other to the highest standards, never had an integrity problem, and achieved remarkable success.

Yet, think about how often we select people for exactly the opposite reason. Think about “knock-out” comments and questions you’ve heard that were used to keep from increasing the diversity:

  • I wouldn’t want to eat lunch with that person, so why would I want to work with them?
  • We find that people with engineering (or chemical, or fine arts, etc.) backgrounds do well here.  Others don’t.
  • We like to hire people from state (or Ivy League, etc) colleges because they fit in best
  • We always hire for industry knowledge.  We don’t want to be a training ground for the basics in how our industry works
  • Results are not as important as how they were obtained – we have to be sure this person fits our culture
  • Directors on our Board need to be able to get along or the Board cannot be effective
  • If you weren’t trained in our industry, how could you be helpful?
  • We often find that the best/top graduates are unable to fit into our culture
  • We don’t need lots of ideas, or challenges. We need people that can execute our direction
  • He gets things done, but he’s too rough around the edges to hire (or promote.)  If he leaves he’ll be someone else’s problem.

In 2011 I wrote in Forbes “Why Steve Jobs Couldn’t Find a Job Today.” The column pointed out that hiring practices are designed for the lowest common denominator, not the best person to do a job.  Personalities like Steve Jobs would be washed out of almost any hiring evaluation because he was too opinionated, and there would be concerns he would cause too much tension between workers, and be too challenging for his superiors.

Simply put, we are biased to hire people that think like us.  It makes us comfortable. Yet, it is a myth that homogeneous groups, or cultures, are the best performing.  It is the melding of diverse ways of thinking, and doing, that leads to the best solutions.  It is the disagreement, the arguing, the contention, the challenging and the uncomfortableness that leads to better performance.  It leads to working better, and smarter, to see if your assumptions, ideas and actions can perform better than your challengers.  And it leads to breakthroughs as challenges force us to think differently when solving problems, and thus developing new combinations and approaches that yield superior returns.

What should we do to hire better, and develop better talent that produces superior results?

  1. Put results and accomplishments ahead of culture or fit.  Those who succeed usually keep succeeding, and we need to build on those skills for everyone to learn how to perform better
  2. Don’t let ego into decisions or discussions.  Too many bad decisions are made because someone finds their assumptions or beliefs challenged, and thus they let “hurt feelings” keep them from listening and considering alternatives.
  3. Set goals, not process.  Tell someone what they need to accomplish, and not how they should do it. If how someone accomplishes their goals offends you, think about your own assumptions rather than attacking the other person.  There can be no creativity if the process is controlled.
  4. Set big goals, and avoid the desire to set a lot of small goals.  When you break down the big goal into sub-goals you effectively kill alternative approaches – approaches that might not apply to these sub-goals.  In other words, make sure the big objective is front and center, then “don’t sweat the small stuff.”
  5. Reward people for thinking differently – and be very careful to not punish them.  It is easy to scoff at an idea that sounds foreign, and in doing so kill new ideas.  Often it’s not what they don’t know that is material, but rather what you don’t know that is most important.
  6. Be blind to gender, skin color, historical ancestry, religion and all other elements of background.  Don’t favor any background, nor disfavor another.  This doesn’t mean white men are the only ones who need to be aware.  It is extremely easy for what we may call any minority to favor that minority.  Assumptions linked to physical attributes and history run deep, and are hard to remove from our bias.  But it is not these historical physical and educational elements that matter, it is how people think that matters – and the results they achieve.

 

 

Resolve to Focus on Goals Rather Than Results in 2015

Resolve to Focus on Goals Rather Than Results in 2015

Results, results, results.  We frequently hear that we should focus on results.

More often than not, focusing on results is a waste of time.  Because it is looking in the rear view mirror, rather than the windshield.

Someone asked me today what I thought of Janet Yellen as head of the Federal Reserve.  I found this hard to answer.  Even though Chairperson Yellen has been in the job since February, her job as lead policy setter has almost no short term ramifications.  It takes quarters – not months – to see the results of those policy decisions.  Even after a year in office, it is very difficult to render an opinion on her performance as Fed leader.  The fantastic 5% growth in the U.S. economy last quarter has much more to do with what happened before she took office – in fact years of policy setting before she took office – than what has happened since she became the top Fed governor.

We often forget what the word “results” means.  It is the outcome of previous decisions.  Results tell us something about decisions that happened in the past. Sometimes, far into the past.  We all can remember companies where looking backward all looked well, right up until the company fell off a cliff.  Circuit City. Brachs Candy. Sun Microsystems.

Further, “results” are impacted dramatically by things outside the control of management, such as:

  • Changes in interest rates (or no changes when they remain low)
  • Changes in oil prices (which have been dramatically lower the last 6 months)
  • Changes in investor expectations and the overall stock market (which has been on a record-setting bull run)
  • Inflation expectations (which remain at historical lows)
  • Expectations about labor rates (which remain low, despite trends toward higher minimum wages)
  • Technology advances (including rapid mobile growth in apps, beacons, payments, etc.)

We too often forget that last quarter’s (or even last year’s) results are due to decisions made months before.  Gloating, or apologizing, about those results has little meaning.  Results, no matter how recent, are meaningless when looking forward.  Decisions made long ago caused those results. “Results” are actually unimportant when investing for the future.

What really matters are the decisions being made today which can cause future results to be wildly different – better or worse. What we need to focus upon are these current decisions and their ability to create future results:

  • What are the goals being set for next year – or better yet for 2020?
  • What are the trends upon which goals are being set? How are future goals aligned to major trends?
  • What are the future expected scenarios, and how are goals being set to align with those scenarios?
  • Who will be the likely future competitors, and how are goals being set make sure we the organization is prepared to  compete with the right companies?

Far too often management will say “we just had great results.  We plan to continue executing on our plans, and investors should expect similar future results.”  But that makes no sense.  The world is a fast changing place.  Past results are absolutely not any indicator of future performance.

Windshield v Rear View Mirror

For 2015, and beyond, investors (and employees, suppliers and communities sponsoring companies) should resolve to hold management far more accountable for its future goals, and the process used to set those goals. Amazon.com maintains a valuation far higher than its historical indicates it should primarily because it is excellent at communicating key trends it watches, future scenarios it expects and how the company plans to compete as it creates those future scenarios.

In the 1981 Burt Reynolds’ movie “Cannonball Run” a character begins a trans-country auto race by ripping the rear view mirror from his car and throwing it out the window.  “What’s behind me is not important” he proudly states.  This should be the 2015 resolution of investors, and all leaders.  Past results are not important. What matters are plans for the future, and future goals.  Only by focusing on those can we succeed in creating growth and better results in the future.