After absorbing the N’th podcast/video/article of some random guy who used to work in Silicon Valley bragging about disruption and boldness, I couldn’t stand the platitudes anymore. I couldn’t help but be making a checklist on how to recognize a Silicon Valley Clown:

scc.png

I guess you can add to this list.

What really annoys me about this kind of talking are three points:

A. Just because you have worked in the Valley doesn’t prove anything

Remember: Most Start-ups fail and there is not always learning involved. Not seldom, it is just silly. In our days there is a lot of money around that wants to be spent in hope for the next unicorn.

And if you worked for some poster company (Apple, Google, Amazon, Facebook, Tesla, etc.): Congrats, you have been a corporate robot, like so many of us. Does this make you an expert on innovation? I do not think so.

B. Snake oil traders selling to the Hinterland

It’s all Sales. Skim through the table above and look for a pattern: Name dropping, impressive insider wording, the time spent traveling and networking. There is just one job where you can do these things consistently: Sales.

There is nothing wrong with being a Salesperson. The danger is that that kind of persons usually become the trusted advisor to CEO’s, in roles like Chief Digital Officer, Chief Innovation Manager, etc. So you got a Sales guy trying to orchestrate all the aspects of a thing as complex as digitalization AND a resource-rich but fundamentally disoriented CEO listening to him.

Good luck with that!

C. Focussing on the Obvious while remaining Oblivious to Deep Challenges

Everyone knows that digitalization will fundamentally transform businesses. It is just that the term “fundamentally transform” is often interpreted in a very narrow sense -like this:

  • Building up new streams of revenue by investing in start-ups
  • Old Business Models die, new ones that involve more Technology and Data come up
  • All this happens real fast in an uncertain environment, so I better get my organization agile

That’s a consensus view, right? The trouble is, the transformation is much deeper than this.

  • With an ever-accelerating rate of change, the race to build up new start-ups faster than the old business dies is doomed from the start: If maturing start-ups experience the same organizational sclerosis than traditional companies, these “throwaway companies” cost too much investment for a shorter and shorter pay-back period
  • Digital Technology and high rate of changes make every front-line worker to a Knowledge Worker. Hand on Heart: The overwhelming number of companies and managers never did a good job managing knowledge workers
  • All this agile and lean entrepreneurial stuff will not work, without trust, transparency and finally the acceptance of vulnerability of humans. Without that – my dear Cowboy CDO/CEO-  people will never open up. Without open communication, groups of people can never be innovative, and the pace of learning will be dismal

Face the deep challenges… or else

So the deep challenges are

  1. Building companies that last and avoid instititional sclerosis
  2. Learning to see everyone as Knowledge Worker
  3. Step away from the Cowboy Style of Leadership and becoming a Servant Leader

That’s why I believe organizations need to move towards more Self-Management. To rely on the fickle whims of an autocrat, which any manager with the hire and firepower is, is fundamentally not good enough to let people open up and be innovative.

So the hierarchy has got to retreat. It does not need to disappear, it just needs to fade more into the background.  There needs to be more checks and balances on hierarchical power.

Is that the silver bullet, the hierarchy needs to take a back seat? As always, it’s just one element.

But it might just be the one that requires the most time and is the hardest to pull off, as it requires such a broad mind shift in managers and people. A mind shift that goes against the command and control we all learned in school and experience in the business.

On the other hand: Ugh, that’s tough. Maybe you should just continue wasting your time with your Silicon Valley Clown, you (CEO) fanboy.

___

Sources: 

Here are some legacy posts which you might find helpful:

What kind of Organization do modern Companies aspire to be? – how companies like Amazon or Netflix do it

The Startup Way by Eric Ries – Book review – how not to do it

The World’s Leading Hedgefund is Relying on Key Principles of Self-Managed Organizations – how an arch-capitalist is embracing vulnerability

 

 

 

 

 

 

 

Posted by Frank Thun

Management. Systems. Liberation

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