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Embracing Risk and Failure for Greater Success. MSAE Conference June, 2010. Tom Lehman Lehman Associates Including material and input from Diane James, CAE. Working at the confluence of Strategy, Information, and Technology. Lehman Associates, LLC.
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Embracing Risk and Failure for Greater Success MSAE ConferenceJune, 2010 Tom Lehman Lehman Associates Including material and input from Diane James, CAE
Working at the confluence of Strategy, Information, and Technology
Lehman Associates, LLC • Strategy consulting for technology and marketing • Business process analysis and improvement • Web / Internet Strategy / Social Network Strategy • Member and Industry Research • The Lehman Reports™ series • Serving associations since 1992 • Minneapolis – Washington, DC • Appointed member of the Minnesota State Commission for the Deaf and Hard of Hearing
Innovation - now playing at an association near you
TheSuperheroModel Not for Mere Mortals
The blind faith model no strategy required
The “Just Do It” model You already have everything you need i.e. no new staff or resources
Whatever the model, many associations say … We embrace innovation & new ideasChange is goodExperimentation is goodNo risk, no rewardNo pain, no gainInnovate or DIE JUST DON’T FAIL
Innovation without some failure? We think not. • The only people who don’t make mistakes are those who don’t do anything. • If you don’t occasionally fail, you’re not really trying. • You can’t learn if you don’t fail. • You can’t improve without learning.
Embracing Risk and Failure • Natural by product of trying new ideas • Encourages people to think beyond safe • Accepts that falling short is a natural by-product of setting real goals • More is learned from failure than success • Enables getting rid of programs that don’t work
Keeping a Perspective Failed to get on base two out of three times .326 career batting average
Innovation Scale Transformational Process Improvement Short Term Fixes
Successful, well-managed organizations: • Strive to create processes and values that are resistant to change • Are successful because of inflexible, consistent processes – “well-oiled machine” • Would fail to execute established processes if it allowed experimentation and intuitive flexibility May work against innovation
Associations typically: • Aspire to deliver consistent products, services and value through well-established processes • Are hesitant to assume risks associated with innovation, knowing it would disrupt effectively-managed processes Dilemma becomes relying on stability when stability is bound to be unreliable
"Organizations rarely fail as a result of sudden catastrophe. Rather, they suffer because they have ignored changing expectations.“Paul Pomerantz, CAE, American Society of Plastic Surgeons
Jim Collins: 5 Stages of Decline 1: Hubris Born of Success 2: Undisciplined Pursuit of More 3: Denial of Risk and Peril 4: Grasping for Salvation 5: Capitulation to Irrelevance or Death How The Mighty Fall: And Why Some Companies Never Give In Jim Collins, 2009
What are you trying to accomplish? Transformational /Break Through Innovation • New areas of focus, a direction or approach you’ve not done before, new markets, charting new territory Process Improvement / Incremental Innovation • New ways to improve upon what you do today, process improvement, enhance efficiencies and effectiveness
What are the enablers?What are the barriers?We asked … you Series of interviews with association executives Posting on ASAE LinkedIn groupOnline survey distributed to association executives and managers.
Experiment Meetings One association with which I work has "experiment meetings" where people are paired up so that every pair includes people from different departments who don't normally work together. They are charged with coming up with an idea around a particular topic .. say connecting with members. The best ideas get funding and a trial period. The pair reports back with their measurements and statistics and a completed recommendation about implementation tactics. Donna Dunn, CAE, Executive Director and CEO at Association of YMCA Professionals
How do you think your products and services will change over the next 3-5 years?
How do you think the way you do business will change over the next 3-5 years?
Enablers • Leadership – leads not just says, encourages • Board – forward looking, supportive, engaged, accepts financial and other risk, in this together • Resources – it costs more in the near term even if you save in the long term – takes money and staff • Culture – open to ideas and change, low career risk • Deliberate – having a process to encourage and support new ideas
Barriers • Leadership • Board • Members / Industry • Resources • Silos and turf
Think about your organization • What are your enablers and barriers? • What one thing could increase innovation and experimentation?
In your words: Discouraging Innovation • our board does not encourage change… opposed to innovation • 52 year old association, members like things the way they are (were) • lack of ownership by the board • ED’s lack of trust and respect for staff and fear of the board • Lack of honesty, accountability, transparency. Risk averse culture • decisions are not data driven • group think, lack of innovativeness, complacency • not enough time to consider implications of change • Long approval process … people hold back … gauntlet of approvals • struggle with mustering effort to address day to day pain points • It’s all about mindset, individual accountability and a willingness to listen
In your words: Encouraging Innovation • constant encouragement to find ways to meet members’ unmet needs • young staff is always looking for better ways to work. They love innovation and process improvement. • culture of staff / governance teamwork is very strong • CEO who will embrace change and take risks. Trustworthiness • open-minded senior management, board and industry partners • having the right leaders in the most appropriate positions • governing body that truly governs strategically and respects professional staff • individual leadership • a willingness to listen to new ideas
“Everyone likes change that they initiate”Association executive interview
Action – Managers • Start the conversation • Listen • Encourage disclosure - what has not worked • Set “failure” quotas • Carve out innovation funds
Action - Staff • Interact with colleagues on new ideas and approaches • Look for across functions • Support colleagues who suggest change • Lose silos and turf • Understand need for a business case • Speak up
Thanks … Questions? Thanks Tom Lehman Lehman Associates, LLC Minneapolis – Washington, DC www.ansible.com tlehman@ansible.com 612-343-2100