Did you ever notice that people tend to do the same things over and over again:
Listen to the same music; eat in the same restaurants; watch the same TV shows
(and feel an emptiness when the shows are canceled); take the same routes to work...?
As an organization is nothing more than the sum of its people, there is a tendency
for companies, divisions, groups, teams, etc. to perform the same way, day in,
day out. While their may be something to be said for why this is advantageous
if the people are performing what is known in the Toyota Production System parlance
as standardized work, chances are, this repetitive performance is
nothing more than an active effort to maintain yesterdays status quo. That
is, assuming that a company is doing OK, then the managers within the firm figure
that doing what theyve always done will keep them doing OK. A slight snag
in this line of thinking, one that is about the size of the rift in the HMS Titanic,
is that other companies are driven to do something different, so the context is
entirely different today than it was yesterday. These other companies are called
Creation Companies by Tom McGehee in Whoosh: Business in the Fast
Lane; Unleashing the Power of a Creation Company (Perseus Books; 188 pp.; $25.00).
The opposite of Creation Companies are Compliance Companies. (McGehee,
incidentally, is vp of Cap Gemini Ernst & Youngs Accelerated Solutions
Environment in Dallas; velocity is obviously something that is of abiding interest
to him.)
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Why is being a Creation Company important? According to McGehee, Wealth
creation comes from companies that figure out how to do new things more effectively
and efficiently, and form companies that create new business models. And
as the First Law of the auto industry is to make money, thats a pretty
good reason. It should be pointed out, however, that not all Creation Companies
succeed: arguably a whole lot of non-existent dot-coms could have fit the description.
An important point that McGehee stresses is that it isnt enough for an
organization to have people whose job it is to be creative, people
who are in another part of the building or in another building or in another
state or...Rather, it should become part of the day-to-day way of work. (Being
creatures of habit, if people can get in the habit of being creative, then that
certainly is valuable.)
While many people might think that being a problem solver is a
good thingand often consultants figure themselves as problem solvers who
can come in and make everything rightMcGehee is actually not very impressed
by that whole approach. He maintains, A problem-solving mentality keeps
you always looking backward, trying to fix past mistakes, and always looking
inward, when you need to be looking ahead and outside the organization...Solving
problems always leads to diminishing returns, while creating opportunities leads
to increasing returns. Which returns us to that First Law, which is about
increasing returns. Face it: In this industry, the firms that are going to succeed
arent those that are good at fixing things. Step-change improvements,
yes. Grudging incrementalism, no.
McGehee recommends that companies promote conversations. Discussions. Exchanges
between people. Manyif not mostpeople are awfully creative when
it comes to their hobbies (consider the people you know who have rebuilt vintage
cars), to say nothing of being incredibly dedicated (anyone who plays golf certainly
fits into this category). But when they come to work, they turn that off. Those
companies where such behavior is supported so that it is applied to work tasks
will blow by those companies that dont...with a whoosh!
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Of course, there is one not-so-slight problem associated with this. Which is
simply that most people wont get the message about the need to engender
a creation environment. This is because, as Thomas H. Davenport and John C.
Beck point out in The Attention Economy: Understanding the New Currency of Business
(Harvard Business School Press; 272 pp.; $29.95), there are plenty of things
vying for our attention; consequently, they write, More information will
be ignored, and many key business issues will not receive the benefits of concerted
human attention. Voice mail. E-mail. Postal mail. Memos. Brochures. White
papers. Websites. Newspapers. Magazines (yikes!). TV. Radio. Books. On and on,
an endless torrent of information assaults us. The amount of information that
people have access to is tremendous. Consequently, what anyone chooses to pay
attention to is going to be a small fraction of that.
Davenport and Beck argue, The problem for businesspeople lie on both
sides of the attention equation: how to get and hold the attention of consumers,
stockholders, potential employees, and the like, and how to parcel out their
own attention in the face of overwhelming options. People and companies that
do this, succeed. The rest fail. Understanding and managing attention is now
the single most important determinant of business success. While one part
of this is limiting the amount of information that attains attention, the trick
is determining the right information. (Otherwise it is too easy to pay attention
to only the things that one has always noted.)
Although this book might sound as though it would be of primary interest to
people in advertising or marketing, in point of fact, it is valuable to anyone
who needs to communicate with other people, especially in a business setting,
where the aforementioned tsunami of information is a way of life. (Of course,
being aware that your family and friends are similarly deluged is worth keeping
in mind.)
One thing that I need to commend is the format of this book, a format that
I first became aware of the Harvard Business School Press using with Gary Hamels
Leading the Revolution, which was published last year. (If you havent
read that book, get a copyfast. As Hamel warns: Somewhere out there
is a bullet with your companys name on it. He askspointedly,
not rhetoricallyDream, create, explore, invent, pioneer, imagine:
do these words describe what you do? [Ill pause while you ask yourself
that question.] If not, you are already irrelevant, and your organization
is probably becoming so. His solution to relevance? Business concept
innovation, which he defines as the capacity to reconceive existing
business models in ways that create new value for customers, rude surprises
for competitors, and new wealth for investors. Of course, you could ignore
all this and just wait for that bullet...) While business books have long been
characterized by layouts with long stretches of type broken only by various
charts, The Attention Economy has a variety of sidebars, lists, bulletpoints,
footnoted facts, and other visual elements that, well, keep your attention.