“In case of sudden turbulence…”
How long has it been since you were on a plane? At one point I felt more at home at an airport than in my own backyard! However, last week I took my first flight since the lockdown. What I didn’t expect was an “ah-ha” moment about living with risk. Yes, the process of flying felt familiar, but there were plenty of COVID changes: · Masks and hand sanitizer at every turn · Only 10 socially distanced passengers boarding at a time · The flight attendant’s reminder to “remove your COVID mask before putting on your oxygen mask” if we lost altitude. These were layered on top of precautions we somehow now find “normal”:· Security screening for weapons and water bottles· De-icing to protect us from inclement weather· Flotation devices for the “unlikely event of a water landing.” Then, one simple precaution jumped out at me: “Buckle your seat belts in case of sudden turbulence*… *Turbulence: the quality of being turbulent, characterized by conflict, disorder, or confusion; not controlled or calm. The underlying message from the crew was this: “Things might get a little bumpy — but we’re going to be ready.” 2021 has already provided plenty of turbulence : o COVID dynamics continuing to impact operations, resources, and revenues o Cyber-attacks and threats worse than experts had imagined o A myriad of new federal policies that could dramatically change business models. These represent new challenges as well as new windows of opportunity. But what kind of “seat belt” do YOU have in place if things get a little bumpy? In a turbulent environment, decision-making gets more complex. People get concerned and confused about what the changes might mean, and what actions will be required. In my work with CEOs and boards making a change in their strategy, I encourage leaders to openly talk about risk and “what if’s” with employees, supporters, funders, and partners. Whether you’re pivoting because your current strategy isn’t working, or shifting direction to seize a new opportunity — taking a systematic approach to identify and manage risk can actually build confidence, alignment, and accelerate results. A rhythm of talking about risk can serve as a “seat belt” to help you lead through turbulence. Bharat Dave is a former Fortune 500 executive and serial entrepreneur who now mentors executives. When it comes to managing risk, he guides:“If you’re going to spend two days to plan your year, spend at least two hours talking about your risks and how you’d handle them. It can actually give you and your team new energy you didn’t think you had.” Alan Iny, a partner with the Boston Consulting Group, advises leaders to intentionally build what he calls “your uncertainty advantage“: “Leaders need to “become better at detecting signals, more decisive in acting on them, and more proactive in fostering resilience. Rather than seeking to eradicate uncertainty, top-performing organizations create the conditions for living with it successfully.” So how do you start? How about trying this at your next planning session: Talking openly about risk can build a more resilient organization. Instead of getting overly invested in “The Perfect Plan“, you and your team can align and move forward with “The Plan For Now,” taking imperfect action that is: o grounded in your organization’s purpose o clear on the problem to be solved o continually learning what works and what doesn’t o scanning for changes in your landscape o evaluating new options along the way o ready to make decisions and act quickly when needed. Yes, 2021 may continue to be turbulent. But with a systematic approach to living with risk, you too can lead with the calming message: “Things might get a little bumpy — but we’re going to be ready!” Safe travels! –Susan P.S. If you’re a leader of an organization interested in ways to de-risk your strategy, learn more about the Changemakers’ De-Risk System for Impact. It can prompt some good dialogue with your team. And let me know if you’d like to chat about your own situation! Susan Schramm, Founder and Principal, Go to Market Impact LLC +1(847)778-0123 susan.schramm@gotomarketimpact.com
Are you leading with “What If”?
Do you remember that Hewlett Packard ad campaign, “What If?” It showed people — walking their dog on a beach, sitting on a train, in an elevator — asking “What If?” Then they’d have an “ah-ha!” moment, and run off to share their big idea. The message was that they were always thinking about new ways to solve problems, and asking “What If?” to inspire creative thinking. But if you asked your team “What If?” today, you might get an avalanche of concerns: Yes, asking “What If” can inspire — but as we’ve seen this year, uncertainty creates real anxiety, too. If we learned anything from 2020, it’s that every plan we put in place may have to change! How do we apply what we’ve learned this year about uncertainty? How do we execute in 2021 knowing we’re going to have constantly adjust plans as we deal with risks and confront new realities? We double down and lead with “What If?” As you build on what you were able to achieve in 2020 (despite Covid!), and work to make back lost revenue and capitalize on areas of momentum, you can use “What If” to your advantage. Being intentional about establishing a “What If?” rhythm is like building muscles that make you stronger. In working with clients who are launching a new initiative, going after a new market, considering new partnerships or trying to get a stalled program back on track – I’ve found creating a regular “What If?” rhythm can help you and your team optimize risk and deal with uncertainty head on. How does it work? You still lay out goals and objectives, but you’re less attached to the details of how goals get accomplished. You get really good at sensing what you see around you – and naming the risks – and looking for the opportunities and challenges risks represent. And you prepare to take action. Here are three steps to lead a “What If” rhythm and de-risk more confidently: Warning: This will require you to become more transparent about risk than you may have ever been before as a leader. As leaders, we sometimes feel we need to have all the answers (or pretend we do), so we are credible and others will follow. We’re concerned we might look weak if we talk about risk or change our minds. When others bring up risks to our plan, it somehow feels personal. Here’s the good news: We just had a global pandemic that completely surprised and humbled every expert and some of the most successful CEO’s in the world! 2020 taught all of us: Whether it creates negative or positive outcomes, risk isn’t personal. It’s how you and your team anticipate, align and take ACTION to optimize risk that counts. As we close the books on 2020, many are taking a big sigh of relief that this “year of disruption” is over. But could it be you’ll look back and see 2020 was a turning point? Was this the year you got really GOOD at living with risk, and decided to make leading with a rhythm of “What If?” your own competitive advantage? What If?😀 If you are interested ways to de-risk your strategy or initiative, check out the Changemakers De-Risk System for Impact . Hope it prompts your thinking. Susan Schramm, Founder and Principal Go to Market Impact LLC +1(847)778-0123 susan.schramm@gotomarketimpact.com www.gotomarketimpact.com
5 Ways to De-Risk Your Next Big Virtual (or Hybrid) Event
The world suddenly shifted. Your big meeting or event that was always face-to-face (conference /trade show /fundraiser /etc.) now has to be virtual. Or even worse, both virtual and in person. And though you may have stepped in gingerly with a webinar or small virtual meeting during the pandemic- but this one is BIG. All sorts of risks and red flags may be flying through your brain – but there’s good news. A growing community of virtual conveners is here to assure you that: This pandemic-disrupted 2020 has forced a lot of leaders to jump in with both feet to learn new ways to bring people together virtually — whether they asked for it or not! As a consultant to organizations driving new strategies, I’ve been helping leaders this year whose business plans have had to shift suddenly from face-to-face to virtual. Truth is: We are all going through one giant learning curve together… and we need to help each other! This is a new chapter that will dramatically improve the way we connect people — but we don’t have to all make the same mistakes over and over again! I’d like to offer 5 ways to de-risk virtual events. They are drawn from real-world experiences and scars (my own and others). They are also grounded in principals of “The Changemakers’ De-Risk System for Impact ℠” a process my firm uses to help leaders of purpose-led organizations avoid common mistakes when navigating a new direction. Whether you are going 100% virtual or using a “hybrid” approach, you can de-risk by stepping back with your team and asking five questions: #1 Are we clear on WHY? #2 How do we de-risk this END-TO-END? #3 WHO is key to our success, and what is important to THEM? #4 WHAT IF? Do we have a plan for the worst and best case? #5 HOW am I going to lead differently? Here are some specific ideas to provoke your thinking for each question: #1 ARE WE CLEAR ON WHY? Clear goals for this virtual event will help you prioritize and avoid scope creep. You’ll know when to say no, and you’ll recognize when you’re signing up for a virtual high-wire act for no good reason. Ask: o If the goal is BRAND AWARENESS o If the goal is GROWING CUSTOMERS OR MEMBERS o If the goal is BUILDING COMMUNITY o If the goal is REVENUE From professional event companies to neighborhood organizations, 2020 is providing an opportunity for a myriad of experiments in how to monetize virtual events of all sizes. We’re all continuing to learn, but consider: #2 HOW DO WE DE-RISK THIS END-TO-END? # 3 WHO IS KEY TO OUR SUCCESS AND WHAT IS SUCCESS FOR THEM? For many people, attending virtual events is still pretty new. Even people who SAY they’re virtual pros may find themselves facing new tools or platforms or formats to interact that feel a little awkward. To de-risk, you need to make sure everyone feels comfortable. Ask: Consider: Attendees Presenters (Keynotes/Panelists/Performers) Vendors/Sponsors Content Teams and Production Teams Translators # 4 WHAT IF? DO WE HAVE A PLAN B? # 5 HOW AM I GOING TO LEAD DIFFERENTLY? People want to follow leaders who acknowledge the risks ahead, address them as best they can, and continue to move forward. In what ways can you as a leader improve your teams’ ability to take this new direction and make it a success? You see? You CAN de-risk your virtual event and lead others with calm and confidence. Welcome to the growing community of successful virtual conveners — and as you learn, pass it on*! *Special thanks to all the virtual conveners and encouragers who’ve generously shared your learnings with me over the years and especially during 2020. The root word of “virtual” is from Latin — virtus –meaning “excellence, potency, efficacy” – all very appropriate adjectives for this group! If you’d like to talk about your own organization’s new initiative – virtual or otherwise- and learn more about the Changemakers’ De-Risk System for Impact℠, let’s connect! susan.schramm@gotomarketimpact.com or at www.gotomarketimpact.com
Ambulances and Helicopters: Leaders and Boards in a Crisis
The siren wails as the ambulance steers left then right to navigate the complexity of heavy traffic at rush hour. It’s not clear which route is best. The patient is hanging on, but the stress is mounting. In these disruptive times, leaders of nonprofits and associations are frequently the “ambulance drivers” for their own organizations, steering an uncertain path to get those they serve to safety. Though they may feel a bit frazzled behind the scenes, many are navigating well. The most effective leaders are regularly and transparently communicating; checking on staff to ensure they are healthy and focused; figuring out how to adapt to new rules and procedures and daily financial challenges; reaching out to those they serve to make sure they’re okay and feel valued; stepping up quickly to make hard decisions and keep things moving forward. The question is: If leaders are “driving the ambulance” during a crisis, how does the board best add value? The answer according to many nonprofit and association executives? By helping leaders see further down the road. “The board needs to focus on serving as a helpful helicopter above the road”, suggested Fraser Pajak, former CEO of Quest Forum, now part of the Telecommunications Industry Association (TIA). “Boards need to help leaders see ahead and around the corners, and see traffic down the road.“ Research my firm is currently conducting with nonprofit and association executives, in co-operation with the Canadian Nonprofit Academy [1], is surfacing four specific ways board members can help leaders de-risk their future by being able to see further down the road during challenging times. 1. Focus on the Destination The first priority is to re-confirm your mission. Your mission serves as the “North Star” for prioritizing all decisions when changes are required. “Start with confirming the mission is still valid. Then evaluate how that mission can be fulfilled in new ways,” said Michael Hofmann, leadership coach and former CMO of Welthungerhilfe, a German NGO that fights against hunger around the world. “When you need to make changes to how you execute, people will often question whether you are abandoning your mission. The board can help keep the focus on the organization’s purpose as well as on the concrete possibilities to promote it that still exist (or even emerge) during the crisis.” 2. Provide Context for Making Decisions An experienced diverse board can provide leaders with important context: perspective about the changing marketplace, experience with consequences of proposed changes, and future implications of today’s decisions. Listening is key. “Board members help us listen, providing critical feedback about our members’ needs and their changing priorities,” shared Shirley Bloomfield, CEO of NTCA, The Rural Broadband Association. “Two-way transparency between the board, staff and members about challenges you are facing and new options you are considering is important to building trust,” offered Todd Thibodeaux, President and CEO of CompTia, a leading technology association. “This input enables you to listen better and gain ongoing feedback as you test and validate options going forward.” “Leading in a crisis requires putting today’s decisions in context of future impacts. Although we must be responsive, we must do so strategically,” offered Emma Quin, Executive Director of the Toronto-based Textile Museum of Canada. Understanding future impacts means understanding a changing landscape. Many boards get concerned that changes to how the mission is achieved will put the organization at risk. Yet, previous approaches may no longer be relevant or even desired. One example: recent health restrictions on in-person events have disrupted the way non-profits and associations deliver their value and raise funds. Yet, many organizations are starting to realize that their stakeholders actually value virtual options, and are considering a hybrid model of convening (face-to-face along with virtual) going forward. A board with a strategic lens might also encourage leaders to consider new partnering opportunities or even mergers that could improve efficiencies and leverage expertise. This may require courage. “A crisis is a forcing function that gives every leader an opportunity to turn the strategy and business model on its head”, posed Jeannie Diefenderfer, CEO of courageNpurpose and board trustee for Tufts University and Olin College of Engineering. “Every non-profit leader must assess the organization’s reason for existing and have the courage to explore how to deliver value to their clients in a different way. This includes considering combining with other organizations to create an entity that’s more financially stable with a broader set of offerings.” 3. Optimize the Business of the Organization It becomes evident in difficult times that some board members do not fully understand the business model of the organization they serve, especially the revenue model for funding key activities. CEO’s who have demonstrated good fiscal management and built up reserves, despite demands to spend in good times, are the unsung heroes during a crisis. But leaning on reserves is not a viable ongoing business model. A crisis creates an opportunity for the board and the leadership team to step back and evaluate together how the business model may need to be adjusted. “We have to run the business of our association”, shared Susan Medick, CFO of the American Association for Clinical Chemistry. “Adopting a mindset for strategic risk-taking is helpful. We can learn from businesses in other industries who’ve survived when revenues were at risk, and consider innovative new approaches.” The Business Model Canvas [2] can be used as a helpful tool to provide a common vocabulary and a way to think through the impacts of changes you are considering. It is a way to systematically look at each element of the business model and ask: What are the risks? What are the opportunities? 4. Use Your Megaphone One thing most nonprofit and association executives say they appreciate from board members during difficult times: Actively advocating for their organization. Whether by communicating confidence in the staff, reaching out to members to stay engaged and donate, or by donating themselves, board members can add value by visibly demonstrating support. Susan Burke, who leads operations for the Choral Artists of Sarasota emphasized: “Boards can engage in all areas, whether it be fundraising, giving directly, scouting out resources, developing helpful connections and collaboration.
Nonprofit Boards Adding Value During A Crisis
How are you personally adding value during this crisis? For most leaders, the shock stage is starting to subside, and “normal for now” is starting to set in. Most leaders are busy adapting to how to work and deliver value in light of constraints of COVID-19. How Boards Can Help In the middle of the fray, one of the greatest gifts boards can provide the leadership team is moral support: providing calm in the midst of the crisis, making clear you have their backs, and that you believe in them. Susan Miller, CEO of ATIS, an information and communications technology alliance, shared, “There is no playbook for this one. Every week is a new decision. If the board trusts the management of the organization, the board should be supportive of the on-the-ground management – while at the same time being supportive of innovative ways to still try to deliver on the objectives.”[1] For nonprofits and associations, how they navigate the next six months may determine whether the organization survives at all. In fact, the Center for Nonprofit Strategy and Management suggests that perhaps as many as one-quarter of nonprofits – mostly small and midsize- will fail as a consequence of this pandemic.[2] Actionable Insights, Not Random Ideas Formally or informally, organizations are starting to brainstorm new approaches. And as they do, leaders welcome the experience of their board. Dawn McKenna, Executive Director, Children’s Hearing & Speech Centre of British Columbia, shared, “Boards can provide support and expertise: in HR management (regarding layoffs or reduction of hours), financial management (regarding managing cash flow and working with management to determine cost-cutting measures), and providing moral support in managing the organizing during this crisis.” [3] But what is the best way for board members to share their ideas and experience – while not getting in the way? Random suggestions – even if based on valuable experience – may not help as much as you might think. What if there was a way to think through the impact of this crisis together more systematically? More strategically? Boards and leadership teams of mission-led organizations are often comprised of talented people with a great deal of passion for the mission and the value proposition for the people they serve. Yet, I find that they often have less experience and expertise – and candidly, less interest — in the operations of the organization, and how it will be able to work as a viable business entity in the long run. And then a crisis hits. Seeing The Big Picture: Your Nonprofit’s Business Model I believe that right now the business model of an organization can be an extremely helpful framework to help nonprofits think through the implications of this crisis – and determine a path forward. A business model is your story: how you achieve your mission by organizing resources to create and deliver value to those you serve. One way to “see” your business on one page is the Business Model Canvas (BMC). Osterwalder and Pigneur created the BMC[4] to help enthusiastic start-ups think through how to get their “big idea” off the ground. The beauty of the Business Model Canvas (BMC) is that it provides a common vocabulary for boards and leadership teams and staff who tend to work in functional silos even in very small organizations. Starting firmly with your mission, the BMC asks you to consider the different elements of your business model: your different customer segments, and how you serve them with your value proposition; the ways you support customer relationships, your channels (online and face-to-face), revenue sources, key activities, partners, resources and the costs required. Evaluating Risks and Opportunities in Context In light of today’s uncertainty, these business model elements can provide a helpful way to think through the changes you are considering while remaining true to your mission. Systematically look at each element of the business model and ask: · What are the risks? What other parts of the business would need to change to reduce that risk? If revenues are down and we need to reduce costs, do we reduce our value proposition, or narrow the customer segments we serve? How do we keep building customer relationships so they come back after we’ve had to close? · Are there opportunities in this crisis? What would it take to capitalize on them? Can we grow customer segments geographically using online channels? Can we add to our value proposition for members with new offerings online? What investment would be needed in other elements of the business model such as your infrastructure to seize that opportunity? How could we figure out new fee-based revenues or financing to fund the investment? Can we partner to scale quicker? Do Your Homework. Then Share. Board leaders can start by sketching out your ideas in context of the organization’s business model. This can help you formulate your own recommendations before you share them – and help leadership teams learn and readily see the options. Board committees can huddle to think through business model implications together before you share it with the leadership team – all of whom are on overload right now. Context Matters This approach requires a little more of the board than just picking up the phone and saying, “Hey, here’s an idea!” When board members can frame recommendations more holistically, the staff can better understand the implications of your proposal and how it would impact different functions of their team. They can also consider how to create the capacity to execute the idea well. They can more confidently pilot new ideas, and avoid false starts that could hurt credibility and morale. During a crisis, leadership makes a difference. As a board member, you can help by providing support and guiding nonprofit and association leadership teams to think further down the road. But when you contribute your insights and recommendations in context of the business model, you are giving an even greater gift and positioning the organization to thrive over time. If you’d like to discuss how this approach can apply to your own situation, and other ways to de-risk your “new normal”, contact me at susan.schramm@gotomarketimpact.com [1] Part of Research with CEO ‘s and Boards of Nonprofits conducted in April 2020 by Go to Market Impact LLC (www.gotomarketimpact.com) and the Canadian
Managing the Risk of the People Side of Tech: Three Questions
Pulses quicken as headlines roll in: Robotics, drones, self-driving cars, digital health, e-sports, home automation, immersive media, blow-your-mind-fast 5G! At the Consumer Electronics Show in January, over 180,000 tech disruptors, innovators, and business leaders whose industries are being disrupted by tech and the Internet of Things, all show up in Las Vegas to be wowed and pow-wow about the latest innovations in tech. But can we hit the pause button, and talk about something more mundane? Like…people? I work with organizations to accelerate results by getting the go-to-market right. In working on tech-related introductions with innovative leaders from Fortune 500’s and startups to non-profits and municipalities and the military, I’ve learned that we all seem to make one common mistake: We underestimate the time and effort required for the “people side” of tech. Yes, disruptive technologies mean placing big bets and require significant investments. Clarity and aligned roadmaps related to materials and capacities, standards and protocols, interfaces, and platform integration are critical. But time-to-revenue and time-to-profit for new tech introductions have an equally significant dependency on people. Clay Christensen reminds us that 300,000 new consumer products are launched each year and 95% of them fail, many times because we don’t solve the “job to be done” from the customer’s point of view. And researchers.” Joan Schneider and Julie Hall point out, “The biggest problem we’ve encountered is lack of preparation: Companies are so focused on designing and manufacturing new products that they postpone the hard work of getting ready to market them until too late in the game.” But I believe these are only part of the challenge of the people side of tech. Disruptive technologies mean a lot of change — and we consistently underestimate the time and effort required to ready the people who do the work after the big “ta-da”. More than just the marketing team, this means ready-ing the entire community of people that will deliver and sell and support the offer, and need to understand the impact of this disruptive solution from their own vantage point. From the supply chain to finance to contracts to sales channels and partners to customer service and operations to IT and HR, all these people end up as stewards and ambassadors for our shiny new “wonder-tech,” and must deal with lots of questions of their own. They need to gain an understanding of big new concepts, new vocabulary, and new processes. Increasingly it means the need for new roles and building entirely new skills. And when we’re talking about the latest in Artificial Intelligence and robotics and drones and self-automated everything, it means overcoming fears that this exciting new stuff might actually obsolete or replace them! For tech providers moving to Tech-as-a-Service, “this cloud-driven journey will affect every part of the organization”, according to Thomas Lah and JB Wood at Technology Services Industry Association. And while AI is getting more user-friendly, PwC noted in their latest predictions about Artificial Intelligence trends, “Even with basic training, business people may not fully understand different AI algorithms’ parameters and performance levels. They could accidentally apply the wrong algorithms, with unintended results.” There are very real consequences of not planning for the “people side of tech”: · Open headcount for critical skills going unfilled · Errors and uncertainty across the organization when making routine decisions · Delayed and incorrect answers for customers · Uses of the offering that have unexpected ethical or legal consequences. And when this shows up financially, it looks like: · Missed market windows · Missed revenue · Delayed time-to-profit. We can avoid this. We can ask more questions earlier about the people we depend upon as we envision, realize, and bring innovation to market, just as much as we tend to ask about the technologies. We can make sure product definition and new product introduction (NPI) processes incorporate a plan for the people side right from the start, and that product managers see their role as responsible for ensuring needed new skills, roles and processes, and even the ethical governance to ensure a product is used as intended. We can track metrics that address time-to-enablement and skills adoption, just as we do KPI’s related to inventory turns and software defect rates. So, as you kick the tires of all the exciting tech innovations this year, and evaluate how to incorporate them into your business and investment plans and the implications on society, I serve up this challenge: Ask at least three questions about the people side of the tech: 1. What new SKILLS are going to be critical success factors for this to be developed, delivered, adopted, and scaled? 2. What ROLES AND PROCESSES will need to be eliminated, changed, or created across the supply, delivery, and distribution chains, and sales channels – as well as for end-user and customer organizations? 3. What ETHICAL assumptions are we making about how this offering could affect people— and what plans should we put in place to monitor it so it doesn’t go off the rails? You’ll be sure to start some great dialogue, and very possibly accelerate the impact of innovation in your corner of the world! Susan Schramm, Founder and Principal, Go to Market Impact LLC susan.schramm@gotomarketimpact.com 847/778-0123