Category Archives: Connections

  • 19
    Mar 23
  • 0

Escalating Return on Attention

Category:Connections,Emotions,Fear,Future,Learning,Opportunity,Paradox,Potential,Workgroups

Last week, I gave a talk at the South By Southwest conference in Austin where I focused on the increasing importance of return on attention. I believe this is becoming more and more central to success, but that business people are viewing this much too narrowly. There’s a significant untapped opportunity waiting to be addressed.

Paying attention to return on attention

Let me begin by saying that most business people are primarily focused on a very different metric to measure progress – return on sales. While I don’t want to dismiss this, I suggest that it’s too limiting for two reasons.

First, it’s inward looking – it focuses on the financial performance of the company. While that’s certainly important, the financial performance of the company is shaped by events and needs outside the company.

Second, by focusing on financial performance, it draws the attention of management to lagging indicators. It tells them how they have been doing. In a rapidly changing world, we need to be looking ahead, focusing on indicators that will help us to anticipate emerging opportunities.

We need to pay more attention to return on attention. In an increasingly competitive world, customers are gaining more power. Where customers choose to allocate their attention among a growing number of options competing for their attention, will determine who succeeds and who becomes increasingly marginalized.

We need to find ways to measure and monitor return on attention. But the challenge is that return on attention can be viewed at many different levels.

Level 1 of return on attention

When I talk with executives about return on attention, I find that they quickly narrow their focus to their own company. For them, return on attention is how much they have had to spend per unit of attention from their customers and promising prospects.

Once again, they understandably fall back to financial metrics and what they have had to “pay” for the attention of their customers. This is still very focused on the company and lagging indicators – how much have they had to pay in the past.

Level 2 of return on attention

We need to expand our horizons. Rather than focusing on the company, let’s shift our attention to the customers and their return on attention – what value are the customers receiving for the attention they are providing to the company? What’s their return on attention?

And, let’s stay focused on value received, rather than the amount of time and effort that customers have to invest in order to receive the value. The temptation here is to narrowly define value as delivering what the customers want and need today.

The challenge is that what customers want and need today may not be what is ultimately most valuable to them. As I’ve written about in The Journey Beyond Fear, people around the world are increasingly driven by the emotion of fear. In this kind of world, the most effective way to draw attention is to address the fears that are consuming customers – feeding the fear, providing them with defenses against perceived threats and helping them to escape from the fearful world around us (dare I mention metaverse?).

Addressing current needs can help to attract attention with less effort but, if the needs are not sustainable, is this the most promising way to increase return on attention for customers over time? Even more importantly, if the needs that customers perceive today are limiting their potential to create value that is more meaningful to them, are businesses serving the true needs of the customers?

Level 3 of return on attention

This takes us to an even more promising level of return on attention. Rather than just focusing on the current needs of the customers, maybe businesses should look ahead and anticipate emerging needs of customers that can create much more value.

Businesses need to expand their horizons even further. They need to not just focus on the return on attention to the customer today, but the return on attention to the customer over time. They need to ask what can help customers to achieve much more impact and value that is meaningful to them than what they are achieving today. What are the unmet needs of customers that customers themselves might not even be able to articulate today, but that could help them overcome their fear and motivate them to provide more and more attention?

While this requires businesses to look ahead, business executives should realize that the timing could not be better. One of the challenges for businesses today is the significant erosion of trust from their customers. While most customers could probably not articulate what is eroding their trust, a key driver is the growing recognition that companies are focused on serving their own short-term needs, rather than understanding and addressing the evolving needs of their customers to achieve more impact that is meaningful  in a more and more challenging world.

Businesses that understand what is driving the erosion of trust and actively seek to increase the return on attention of their customers will find that they will draw and retain the attention of those customers  much more effectively than they have in the past.

Level 4 of return on attention

But that’s not all. There’s an even bigger opportunity that remains to be addressed by both customers and the businesses serving them. In a rapidly changing world with mounting performance pressure, all customers have a need to find ways to continue to increase impact that is meaningful to them.

This creates a need for all customers to learn faster about how they can increase impact in areas that matter to them. In this rapidly changing world, this is not about learning in the form of training programs that share existing knowledge, but instead it’s about creating environments and conditions that can help customers to create entirely new knowledge at an accelerating rate – finding ways to create more and more value with less effort.

This kind of learning doesn’t occur in a training room. It occurs out in the real world as customers take action, assess the impact they are achieving, and reflect on what new actions they can take that will yield even more impact. As customers begin to see the need for this and the value it can provide, they will also begin to see that they can learn much faster and more effectively if they come together in small groups where they share a passion about increasing impact (I call them impact groups and have written about them here).

Customers will significantly increase their return on attention if they can participate in these learning environments because they will create much more value for themselves and for others. Businesses that see this emerging need and act aggressively to provide these learning environments will ultimately draw more and more of the attention of more and more customers and create much more value for themselves as well.

We need to see an intriguing paradox. The same long-term forces that are creating mounting performance pressure and a growing need for impact that is meaningful are also creating exponentially expanding opportunity – we can create far more value far more quickly and with far less resources than would have been imaginable a couple of decades ago. Those customers and businesses who see this exponentially expanding opportunity and actively seek to address it will dramatically increase their return on attention.

There’s an untapped business opportunity that I describe as “the trusted advisor” where businesses focus relentlessly on increasing the impact that their customers can achieve. This business opportunity has exponential potential.

Bottom line

In a more and more challenging world, where fear is becoming the dominant emotion, it is understandable why businesses are pursuing more and more short-term financial metrics for impact. But those metrics are increasingly limiting our ability to create value.

If we are going to unleash the exponentially expanding opportunity that is emerging around us, we need to find metrics that will excite and inspire us, and help us to overcome our fear. We need a deep and nuanced understanding of “return on attention” that is focused on the growing impact that our customers can achieve. This will help both our customers and our businesses to move beyond their fear and succeed in ways that will help all of us to flourish.

  • 26
    Feb 23
  • 0

Evolving Boards Into Springboards

Category:Collaboration,Connections,Emotions,Fear,Future,Leadership,Opportunity,Transformation

In a rapidly changing world, Boards of Directors (or Trustees) can play a significant role in becoming a catalyst for change within large, traditional companies and other institutions. Unfortunately, this role is still an untapped opportunity in most institutions.

What’s the need?

As I’ve written about extensively, we are in the early stages of a Big Shift that will transform our global economy and society. The paradox of the Big Shift is that it creates mounting performance pressure and exponentially expanding opportunities at the same time.

Mounting performance pressure takes many different forms – intensifying competition, accelerating pace of change and extreme, disruptive events. That pressure creates an imperative for change – if we continue to do what we’ve always done, we’ll become increasingly marginalized and ultimately be wiped out.

But the good news is that the same long-term forces are creating exponentially expanding opportunities – we can create far more value with far less resources and far more quickly than ever before. These are not just opportunities – they are imperatives. In the Big Shift world, only those who see and address these exponentially expanding opportunities will navigate successfully through the mounting performance pressure.

Re-imagining the role of boards

Boards today are generally viewed as fiduciaries for shareholders in the institution. Unfortunately, this role is generally defined too narrowly in today’s world. Board members are expected to represent the interests of shareholders as they currently express those interests. The problem is that shareholders are increasingly focused on maximizing short-term returns. “Short-termism” reigns supreme.

If the shareholders truly understood the exponentially expanding opportunities being created by the Big Shift, their interests would shift from maximizing short-term returns to unleashing the exponential returns that can be generated in the Big Shift. So, the challenge for Board members is whether they should continue to pursue the current short-term interests of shareholders or become catalysts to help shareholders (and management) see the much bigger opportunities that could generate far greater returns over time.

Catalysts for change

Boards are uniquely positioned to become catalysts for change in large, traditional institutions. While boards typically include some leaders from within the organization, they also bring together a group of individuals from outside the organization who represent diverse backgrounds. These individuals are uniquely positioned to provide an “outside-in” perspective for the management of the institutions who tend to become consumed by “inside-out” perspectives as they embrace scalable efficiency institutional models.

But to harness the potential of this “outside-in” perspective, board members must be willing and able to become provocateurs, challenging the implicit assumptions held by the internal management of the organization. They must invest time in exploring how the world outside the organization is changing and they are uniquely positioned to do this, given their backgrounds and experience outside the organization. They can not only rely on their own experience – they can also be proactive in inviting more outsiders to engage with them and the leadership of the organization regarding the trends that are re-shaping the environment of the organization.

These perspectives can help to build greater awareness of the large, emerging unmet needs of customers and other stakeholders of the organization (e.g., business partners and suppliers). They can also increase understanding of the potential to mobilize a broader set of resources to address those unmet needs and create much more value, with far less resources, and far more quickly than ever before.

These emerging perspectives can be catalysts for change at two levels. They can engage the internal management of the organization. At the same time, they can engage the external investors who are likely still pursuing narrow, short-term returns.

From provocation to excitement

Board members should never under-estimate the challenge of shifting the perspectives of the internal management or the external investors. To shift these perspectives, board members need to move beyond provocation. They need to frame exciting opportunities for creating much more value and focus on identifying the trends that are making these opportunities more and more feasible. Where possible, they should provide explicit examples of organizations that are already starting to address these opportunities and the impact that they have achieved. If those examples are not yet available, they should focus on identifying some short-term initiatives that the organization can pursue in addressing these opportunities and demonstrate tangible progress with relatively modest effort.

Those who have followed my writing will recognize that I am suggesting that board members should embrace a version of the “zoom out/zoom in” approach that can help to drive change by helping to overcome the fear and skepticism that often makes people resistant to change.

While the primary focus should always be on the exciting opportunities that can overcome fear and skepticism, board members can also be helpful in broadening the perception of risk among management and investors. Most risk management discussions focus on the risks associated with new initiatives. Very rarely is there any discussion of the risks associated with continuing on the current course. In the Big Shift world, continuing on the current course is often the highest risk option of all, yet few leaders or investors understand those risks.

The key is to understand that just focusing on the risk of the current path will only strengthen the fear that will increase resistance to change. If Board members want to become catalysts for change, they need to focus on framing exciting opportunities that can motivate management and investors to abandon their current beliefs and embrace new approaches that can deliver much greater rewards.

Bottom line

Board members are uniquely positioned to become catalysts for change, creating a springboard for the delivery of much greater impact and value in a rapidly changing world. To harness this potential, board members need to leverage their position as outsiders and help both management and investors to see exciting opportunities that are not yet on their radar screen. The key is to help both management and investors move beyond fear and cultivate intense excitement about exponentially expanding opportunities.

By playing this role, board members will become true fiduciaries for investors, helping them to significantly increase the return on their investment, while at the same time helping management to achieve much greater impact.

  • 23
    Dec 22
  • 4

The Present Is a Present

Category:Community,Connections,Growth,Opportunity,Poem,Potential

During this holiday season,

We are showered with gifts.

But gifts are things.

Gifts can distract us

From a present that really matters.

Let’s never forget

That our present

That matters the most

Is the present.

We are so lucky to be in the present.

Without the present,

Nothing matters.

The present has so much to offer.

Yet, we are too often distracted

By what happened in the past

Or what might happen in the future.

We need to spend more time in the present

And savor all that it has to offer us now.

The present can also be shared with others,

Making it much richer for all.

We should also never forget

That the present

Is a time when we can act

And make the present even richer

For us and for others.

If we act with others in the present,

The present can grow

In ways that we never imagined.

The present is a present

That keeps on giving.

Let’s be grateful.

  • 20
    Nov 22
  • 1

The Metapsychology of the Metaverse

Category:Collaboration,Community,Connections,Context,Emotions,Exploration,Fear,Future,Learning,Narratives,Opportunity,Passion,Potential,Uncategorized

The metaverse is consuming conversations about technology these days. But, what is it? And, is it something we should welcome?

What is the metaverse?

I can’t pretend to offer a definitive definition of the metaverse – I certainly haven’t been able to find one. It’s one of my concerns in all this talk about the metaverse – many different definitions seem to be floating around so it’s not clear what we are talking about.

My best guess about what most people mean when they talk about the metaverse is that it is an immersive and persistent three-dimensional virtual realm, shared with many users, that brings together virtually enhanced physical and digital reality. It integrates many different technologies, including augmented reality, the Internet of things, virtual reality, and blockchain. Blockchain provides an opportunity to use cryptocurrencies and NFT’s to create a fully functional virtual economy in the metaverse where you can buy and sell any virtual asset.

The metaverse can have a significant game component, where participants compete to achieve certain goals and win prizes for their efforts. In fact, I would suggest that the video game world is rapidly evolving into the metaverse and may lead the way for other metaverse initiatives. However, the metaverse can be much more than a game.

The term “Metaverse” was first coined by the great science fiction author, Neal Stephenson in his book, Snow Crash, published 30 years ago. If you haven’t read it, I highly recommend it. In this book, Stephenson basically presents the metaverse as a virtual reality-based Internet populated by user-controlled avatars.

So, if this is what the metaverse is, is it good or evil? Well, the answer is – it depends. Like most technology, it’s not good or evil in itself. It all depends on how we use it.

The evil side of the metaverse

In a world that’s increasingly dominated by fear (see my book, The Journey Beyond Fear), there’s a significant risk that the metaverse will evolve in ways that limit our potential as humans, rather than expand it. What do I mean by that?

The metaverse is an artificial world that can provide an escape for those who are finding the real world very scary or limiting. If we’re driven by fear, it can draw us out of the real world and offer us a place to hide. If we’re consumed by boredom, it can provide us with an irresistible opportunity for excitement.

Temporary relief may be OK, but the metaverse can be designed to be addictive. Participants will find themselves spending more and more time in the metaverse, leaving the real world behind. Of course, for many metaverse designers, that’s what they’re seeking – make the metaverse an all-consuming experience.

The good side of the metaverse

While understandable, that misses the real opportunity of the metaverse. The metaverse can become a launchpad for all of us to achieve much more of our potential in the real world, but that will require a very different design of the virtual worlds we’re creating.

It requires a fundamental shift in focus in how to measure success. If the metaverse is designed to be an escape, the measure of success is how much time participants spend in the metaverse. If it’s a launchpad for impact in the real world, the measure of success is how participants are increasing their impact in the real world as a result of participating in the metaverse.

How could the metaverse help participants to increase their impact in the real world? It could begin by embodying the core elements of what I describe as opportunity-based narratives – a really big and inspiring opportunity out in the future and a call to action to address the opportunity. While the metaverse can present the opportunity in the virtual world, it would need to be clear that the opportunity exists in the real world as well, and help to motivate participants to pursue that opportunity there. Similarly, while the metaverse could provide an environment for action to pursue the opportunity in the virtual world, participants would need to understand that the real potential for impact is in the real world.

To help people address these opportunities, the metaverse could provide ways for people who are inspired by these opportunities to come together and discuss approaches that would have the greatest potential for impact in addressing these opportunities. These groups might even become what I call “impact groups.”

But it wouldn’t be just about discussion. In the metaverse, participants would be encouraged to take action. Initially, that action might be in the virtual world of the metaverse where it could be pursued perhaps more quickly and with less risk and more rapid feedback than in the real world. But, once again, participants would need to understand that this is simply a vehicle for learning how to have more impact in pursuing the opportunity in the real world. Designed appropriately, the metaverse could become a powerful learning platform that helps participants to learn faster through action together.

In short, the metaverse could become a vehicle for helping participants to overcome fear and boredom that they may be experiencing in the real world. It could do this by providing participants with the tools and connections that can help them address some very large and inspiring opportunities in the real world. Rather than providing an escape from the real world, the metaverse could motivate participants to return to the real world, excited about the potential to have much greater impact that is meaningful to them. Of course, they would regularly return to the metaverse to connect with more people and find ways to have even greater impact.

Metapsychology

So, why did I include metapsychology in the title of this blog? Of course, one reason was that it blended so well with metaverse. I may be using the term inappropriately, but it struck me that there’s an opportunity to explore the relationship between psychology and the metaverse.

In particular, it highlights the importance of understanding much more deeply how different design approaches to the metaverse could shape or influence the psychology of its participants. It’s also important to explore the relationship between the psychology of participants in the real world and in virtual worlds.

My view of the untapped opportunity is how the metaverse can help more and more people on the journey beyond fear and boredom. It can help to draw out hope and excitement in the real world that will motivate all of us to achieve much more of our potential.

Of course, we need to be careful about manipulation of emotions. From my perspective, manipulation occurs when we create environments or contexts that draw out certain emotions that are not in the best interest of the participants, but serve the interests of those who are creating the environments. In contrast, I am focusing on creating environments that will draw out emotions that we all as human beings have a hunger for – hope and excitement about an opportunity to have more impact in the real world that is meaningful to us and to others.

That’s ultimately where the money is. Many organizations seek to manipulate the emotions of others in order to serve their own interests. That may work in the short-term, but the key to generating long-term revenue and benefit comes from cultivating emotions that help us to achieve more of our potential.

Bottom line.

Like all technology, the metaverse can be used for good or evil. It’s up to us. As an optimist, I see the opportunity for enormous positive impact from the metaverse, but I’m concerned that there are strong incentives for metaverse designers to provide escape vehicles for participants and reduce the potential for positive growth in the real world. Once again, it’s up to us. How can we create more incentives for metaverse designers to provide us with launchpads in addressing very large opportunities in the real world?

  • 05
    Sep 22
  • 0

Shaping Serendipity with Narratives

Category:Collaboration,Community,Connections,Emotions,Fear,Future,Learning,Narratives,Opportunity,Passion,Potential,Serendipity,Trust

I have long challenged our conventional view of serendipity. I believe that those who master the art of serendipity will ultimately achieve much more of their potential and create value that is meaningful to them and others. But it won’t be easy. It will require us to move beyond our comfort zone and embrace new approaches.

Shaping serendipity

Most of us believe that serendipity is something that just happens and that all we can do is be prepared for it when it does happen. I devoted an entire chapter in my book on The Power of Pull to the opportunity that we have to shape serendipity – we can, through our actions, significantly increase the probability of it happening.

What are some examples? If you live in a small village, the likelihood of serendipity is much lower than if you move to a large city. If you’re booked from early morning to late in the evening with meetings with people that you already know, you’re much less likely to run into someone that you didn’t know and who could provide real insight into an issue you are addressing. The choices we make on a daily basis can significantly alter the probability of those unexpected encounters.

I can’t resist tying this to my new book – The Journey Beyond Fear. In that book, I discuss how fear is becoming the dominant emotion among people around the world. If we’re driven by fear, we tend to isolate or hang out with people we already know – we’re very reluctant to meet people we don’t know.

Serendipity matters

So why does this matter? Well, it turns out that serendipity is becoming more and more essential for success. As I’ve discussed in my research on the Big Shift, we live in a world of accelerating change and intensifying competition.

In this Big Shift world, we need to accelerate our learning, especially learning in the form of creating new knowledge, as we confront situations that have never been encountered before. One of the best ways to pursue this form of learning is to seek serendipity – encountering people who can provide unexpected insight into some of the challenges we are confronting.

Narratives as a catalyst for serendipity 

So, how do we do that? There are many ways, as I discussed in my book on The Power of Pull. In this post, I’m going to focus on an approach that I have come to believe is particularly powerful and yet rarely used. It involves the use of narratives which I discuss in more detail in my new book, The Journey Beyond Fear.

Most people view stories and narratives as meaning the same thing. I make an important distinction. For me, stories are self-contained. They have a beginning, a middle and an end – the end, the story is over. And stories are about the story-teller or some people, real or imagined. They’re not about you.

In contrast, for me, narratives are open-ended – there is no resolution yet. There is some kind of big threat or opportunity out in the future. It’s not clear whether it will materialize or not. And the resolution of the narrative hinges on you – it’s a call to action to those who are hearing the narrative. Their choice and actions will help to determine how the narrative plays out.

Opportunity-based narratives can be powerful catalysts for serendipity on two levels. First, they focus on a really, big inspiring opportunity that can help people more beyond fear and cultivate the passion that will take them beyond their comfort zone as they seek to address the opportunity. Second, these narratives have a call to action that motivates people to take action, including seeking out and connecting with others who share their excitement about the opportunity to be addressed. These are often people they have never met before.

Personal narratives

In The Journey Beyond Fear, I explore how narratives can be crafted at multiple levels – personal, institutional, geographical and movements. Let’s start with personal narratives. We all have a personal narrative that is shaping our choices and actions. Unfortunately, more and more of us are consumed by threat-based narratives, viewing the future as very threatening and feeding the emotion of fear. As a result, we often do not have a call to action to others – with fear, we tend to lose trust in others and isolate ourselves.

Imagine what we could accomplish if we found a way to craft an opportunity-based personal narrative – a narrative is shaped by some really big and inspiring opportunity in the future that could help us to achieve much greater impact that is meaningful to us. That opportunity could help us overcome our fear and realize that the opportunity is not just for us – it’s an opportunity that many could share. It would motivate us to spread the word about the opportunity and seek help from others in addressing the opportunity. As word spreads, the likelihood of serendipity increases. People we never knew will seek us out, excited about the ability to come together and pursue a shared opportunity.

Geographical narratives

(I’ll leave institutional narratives and movement narratives for another time.) I believe that geographies – cities, regions and countries – can craft inspiring opportunity-based narratives that will increase serendipity. What’s the evidence for that? Well, cities like Athens, Florence and Vienna have harnessed that potential (see more in The Journey Beyond Fear). For now, let me focus on where I live.

I’ve been in Silicon Valley for many decades and people often ask me how to explain the continued success of Silicon Valley. Others would focus on things like the universities and venture capital firms. I believe the success of Silicon Valley has ultimately been driven by a powerful opportunity-based narrative. At a high level, it focuses on the opportunity to change the world by harnessing the exponential potential of digital technology, but the call to action is that you need to come to Silicon Valley to help address this opportunity. It’s the reason why the majority of successful entrepreneurs in Silicon Valley were not even born in the US, much less Silicon Valley. They were drawn from all over the world by the inspiring opportunity-based narrative.

Once they came here, serendipity was unleashed. These people were continually running into other people at gatherings and on the street that they never knew before. And because they were so passionate about the opportunity that drew them here, they would quickly begin discussing a challenge that they did not yet know how to address and asking for help and advice. Serendipity sizzles in Silicon Valley. And it can sizzle in any geography that inspires people to come together to address a really big opportunity.

Unleashing the power of narratives

Narratives have enormous potential but we only unleash that potential if we craft our narratives in certain ways. As I’ve already indicated, we need to shift from threat-based to opportunity-based narratives that can help all of us to overcome our fears and our tendency to isolate as we lose trust in others. The opportunities need to be really big opportunities that will take some time to achieve and that will require the effort of many people who can share in the opportunity (ideally, the opportunity will become even bigger as more people come together).

We also need to make an effort to spread the word about the opportunity and encourage people to come together to address the opportunity. We need to find ways to reach people that we don’t know. Word of mouth can help, but writing and speaking about the opportunity to large groups of people can be even more helpful in attracting people we don’t know (dare I mention social media as one important avenue?).

Bottom line

In a rapidly changing world, serendipity becomes more and more central to success, given its power to generate new insight that we would have never had on our own. We have the ability to significantly improve the likelihood of serendipity. One powerful (and largely untapped) approach that can help in this quest for serendipity is the crafting of inspiring opportunity-based narratives with a call to action to a broad audience.

If we get this right, we can turn the mounting performance pressure of the Big Shift into exponentially expanding opportunity. We are now able to create far more value with far less resources and far more quickly than ever before. Let’s get started!

  • 27
    Jun 22
  • 0

Connectivity and Decentralization

Category:Collaboration,Connections,Context,Decentralization,Edges,Future,Learning,Opportunity,Paradox,Passion,Potential,Trust,Workgroups

We’re in the early stages of a Big Shift that is transforming our global economy and society. The Big Shift produces many paradoxes, but here’s one that I haven’t written about: it is rapidly creating global connectivity while at the same time generating a growing desire for decentralization. How can we reconcile the two?

I’ve written about the Big Shift for a long time, including here. A key driver of the Big Shift is the ability to connect more quickly and cheaply with anyone or anything around the world. Certainly, this includes our ability to send a message to anyone in the world, but it also includes our ability to monitor in real time physical goods with Internet of Things technology. And it’s not just about communicating and monitoring, but also controlling and directing activities from a distance.

So, with all these connecting capabilities, we might anticipate more and more centralization where activities are controlled and monitored by fewer and fewer large, centralized global entities (e.g., governments and corporations).

Certainly, we are already seeing some of that. But, at the same time, I anticipate that we’re going to see more and more efforts to decentralize our activities – distributing or delegating activities, especially planning and decision-making, away from a central location or group. Why is that?

Accelerating pace of change

Growing connectivity accelerates the pace of change and makes the specific changes more and more challenging to anticipate. In a more rapidly changing and unpredictable world, we need to find ways to respond more quickly to unexpected developments. The conventional approach of tightly specifying business processes in advance from a central location is becoming less and less effective. Those who are in the best position to confront the unanticipated changes quickly are those who are on the front lines, not those who are sitting in some command center, even when supported by more and more powerful computers.

Context matters

Changes don’t occur in isolation. They occur in a specific context that shapes the change and the impact that it will have. Context is complex – it can’t be reduced to numbers or images. Those who are in the best position to “read” context are those who are living in it in the moment. If we want to address change effectively, we need to rely on those who are deeply embedded in the context. Context is becoming more and more important for value creation, as I have written about here.

Learning is an imperative

In a rapidly changing world, learning becomes essential. To be clear, this isn’t about learning in the form of sharing existing knowledge which is the focus of most learning today. Existing knowledge is becoming obsolete at an accelerating rate. The learning we all need to pursue is learning in the form of creating new knowledge and that is best pursued by coming together with others and learning through action, not just conversation.

When I say “coming together with others,” I mean coming together in small groups – I call them “impact groups” – which I have written about extensively, including here and here.  These groups range between 3 to15 participants. They stay small because the need is to build deep, trust-based relationships among the participants so that they can support and challenge each other in a continuing quest to pursue increasing impact in a specific domain.

Passion is the best motivation for learning

Learning in the form of creating new knowledge through action can be very challenging and involves taking a lot of risk. What’s the motivation to do that? Based on my research, the most powerful motivation is a very specific form of passion – the passion of the explorer – which I have written about here and here. People with this kind of passion naturally come together into the impact groups that I mentioned earlier and they seek environments where they can pursue their passion without constraints. They want to be free to take initiatives that have never been done before and to rapidly iterate on those initiatives when they gain insight on how more impact can be achieved.

Customers are gaining more power

Because of all the connectivity globally, customers are becoming more and more powerful and demanding. They have more access to information about more options and the ability to quickly switch from one product or service to another. In this kind of environment, they are less and less willing to settle for mass-market, standardized products and services. Instead, they are seeking products and services tailored to their specific needs and that will evolve rapidly as their needs evolve.

Erosion of trust in large, centralized institutions

Around the world, trust is eroding in all the large, centralized institutions – companies, governments, media, universities, etc. – that are so prominent in our economy and society. There are many reasons for this, but they are driven by a growing realization that these institutions are not addressing our evolving needs and are increasingly unsuited for the rapidly changing world around us.

Tying it all together

Decentralization will be driven by the intersection of many different needs and desires. If I had to summarize, I’d say that the two key forces are our growing need as providers to learn faster and our growing desire as customers to have products and services tailored to our needs. If we’re going to learn faster, we need to come together in small groups, driven by a passion to achieve increasing impact and we need to be able to act more quickly in ways that are tailored to our local context. On the other side, as customers, we are seeking providers we can trust who will address our unique and rapidly evolving needs.

The paradox is that both of these forces are being driven by growing global connectivity. The more connected we become, the faster everything will evolve and the more rapidly we will all need to learn in the form of creating new knowledge. And the more connected we become, the more ability we will have to pick and choose the products and services that meet our specific needs.

What will emerge?

What shape will decentralization take? Of course, that’s hard to predict in detail. But, as someone who enjoys exploring the edge, I am drawn to early indicators of how this decentralization might evolve.

From a corporate (and broader) institutional point of view, I’ve written about the “unbundling of the corporation.” Without going into too much detail, we’re already starting to see fragmentation of businesses in the digital space – everything from software to music and video. That fragmentation is beginning to spill over into physical products like craft beer and chocolate. I believe that’s just the beginning – we’re going to see more and more small, but very profitable, businesses emerging to address small segments of customers.

We’re also starting to see the growth of decentralized, autonomous organizations (DAO’s) that are focusing on decentralizing decision-making within organizations. There’s also a variety of initiatives to organize front-line workers into small pods or workgroups that are given more freedom to take initiative on their own. In China, the Rendanheyi model being championed by Haier with “micro-enterprises” operating within a much large company is beginning to attract more attention from around the world.

Of course, I have to mention blockchain as a major initiative in the technology space that embraces decentralization as a key organizing principle. While there’s been a lot of speculation and “boom/bust” initiatives in the early days of blockchain, blockchain reflects a strong desire for decentralization and is likely to provide a foundation for many initiatives seeking to decentralize Internet activity.

More generally, we’re seeing the spread of initiatives within the “human potential” movement that are organized around small groups of people who share a commitment to achieving more of their potential. Social change movements are increasingly focusing on “bottom up” approaches to change that embrace a cellular structure of small, local groups rather than pursuing a top-down centralized approach to change. In facing the challenges of the pandemic, we’ve seen the growth of mutual aid groups in local neighborhoods and communities.

Admittedly, these are all still early indicators of a trend towards decentralization, but they merit attention because the forces that I described earlier are going to drive significant growth of these kinds of initiatives.

Connectivity and decentralization

To be clear, I’m suggesting that connectivity and decentralization will unfold together. I’m not suggesting that decentralization will lead to increasing isolation of small groups. On the contrary, the proliferation of small groups will become increasingly connected into broader networks that can scale their learning and impact. Decentralization will actually drive a need for greater connectivity in the same way that connectivity is driving a growing need for decentralization. That’s the paradox.

Bottom line

We are in the very early stages of a paradoxical Big Shift. Growing connectivity will foster a growing need for decentralization and decentralization will increase the need for even more connectivity. This will have profound implications for how we organize and create impact in a rapidly changing global economy and society.

Those who are consumed by the connectivity trends are likely to get blindsided as decentralization begins to gain momentum. Decentralization will create enormous opportunities for value creation and will disrupt many of our large, centralized institutions around the world. We need to evolve a profoundly different set of institutions that will embrace the twin gifts of connectivity and decentralization.

  • 23
    May 22
  • 0

Improving Return on Attention in the Idea Business

Category:Connections,Context,Emotions,Learning,Opportunity,Transformation

I recently participated in an interesting discussion with prolific authors who were becoming concerned about the future of books as a way to communicate ideas and as a source of income. It prompted me to return to a theme that has engaged me for quite some time. Everyone focuses on “return on assets” as a key measure of performance in business, but I’ve come to believe that a different form of ROA will become increasingly critical as a performance measure – “return on attention.”

Return on attention

What do I mean by this? I’m talking here about the return that customers receive when they allocate their attention to something. It certainly doesn’t have to be a financial return (even though for some reason we talk about “paying” attention), but it has to be the value they perceive they are receiving when they spend time paying attention to something. I’ve been writing about this for over 15 years, including in these two blog posts here and here from 2015.

Why is this form of ROA becoming increasingly important? It’s one of many outcomes of the Big Shift that is transforming our global economy and society. The Big Shift has many dimensions but one key trend is the expanding array of options that are competing for our attention, which is a limited resource – limited by 24 hours in the day. Because our attention is a limited resource, we as customers are becoming more and more powerful and demanding. It’s becoming more and more challenging to attract and retain the attention of customers given the growing options that are competing for our attention.

The shift in return on attention

How do we choose to allocate our attention in the realm of ideas? We understandably want to earn a return on that attention. Over the past couple of decades, this has taken the form of scalable efficiency. Customers have been seeking faster and cheaper ways to access ideas. The result has been the decline of longer formats like books and lengthy papers that require a significant investment of our time. Instead, we have been drawn to social media where we can quickly access ideas for free. Our approach to increasing return on attention is to reduce the time and money we spend, rather than focusing on maximizing the value we are receiving.

I believe that’s about to change. In a world of mounting performance pressure, the quest for efficiency yields diminishing returns. The faster and cheaper our quest for ideas becomes, the harder it becomes to get that next increment of efficiency improvement. More importantly, we are under increasing pressure to achieve greater impact that is meaningful in our lives.

As a result, I believe we as customers are going to become increasingly focused on the impact that we achieve when we allocate our attention, rather than narrowly focusing on the time spent or the money spent. What are the implications for those of us who are in the “idea business”?

Implications for idea providers

We’re going to need to expand our focus beyond the ideas themselves. In the recent past, we’ve focused on how novel and interesting our ideas are and whether we can present the ideas in an entertaining and engaging way. It’s all about the ideas themselves. And, of course, we’ve become increasingly focused on how much time is required to present the ideas, so that we can attract a bigger audience when we find shorter and more concise ways of presenting our ideas.

As customers focus more on value received from the ideas, those developing and presenting the ideas are going to have to shift their focus as well. Success in the idea business will increasingly hinge on the extent to which we’re able to move beyond simply attracting attention. We’ll need to find ways to help the recipients of our ideas to act on those ideas and to achieve impact that is meaningful to them. Even better, we’ll need to find ways to help the recipients of our ideas to learn from the action they take and the impact they achieve, so that they can achieve increasing impact over time.

So, how can we do this? It starts with explicitly framing some compelling calls to action as part of the presentation of an idea. What should the audience do differently as a result of this idea and what kind of impact could be achieved from that action? It would be even better if we can provide some advice on how to act in ways that will be most likely to yield the impact that is being sought. Of course, there’s also the opportunity to cultivate trainers and coaches who could help the audience to take action that yields greater impact. By clarifying what kind of impact might be achieved as a result of this action, we can help people to focus on assessing how much impact has been achieved and reflecting on how to achieve even more impact, so that they can learn how to achieve even more impact over time.

That’s a powerful way to increase the return on attention of the audience we’re trying to reach. It has the potential to significantly increase the size of the audience we reach as word spreads about the growing impact that’s being achieved. Of course, we want to make this approach as efficient as possible as well, starting with how much time it takes to access and absorb our ideas and extending out into the time and effort required to action, impact and learning. But the key is shifting beyond time spent to focus on impact achieved as the key component of return on attention.

This isn’t just a theoretical perspective from me. I’m living it. Many of you know that I published my 8th book last year – The Journey Beyond Fear. I’m not just stopping with book. My plan is to create a new Center that will offer programs based on the book and help people to take action that can significantly increase impact that is meaningful to them. I want to significantly increase their return on attention. If this sounds interesting, you can see more here.

Early indicators of the shift ahead in return on attention

What are some early indicators of the shift ahead in return on attention? Well, one interesting indicator is the growth of coaching businesses across a broad spectrum of impact, ranging from physical performance improvement to overcoming emotional obstacles. Customers are increasingly seeking help in achieving more impact that is meaningful to them – of course, it starts with ideas, but the focus is on action, impact and learning.

Another indicator is the “Great Resignation” that we’re seeing as the global pandemic continues to unfold. More and more people are realizing that they spend a significant amount of their time and attention at work but that they’re not achieving enough impact that’s meaningful to them. The result is that they’re seeking new work that will offer them a significant increase in their return on attention.

Bottom line

If you’re in the idea business, you need to focus on the return on attention that you’re delivering to the people you are trying to reach. Rather than narrowly focusing on how much time people need to spend in accessing your ideas, expand your focus on how to help your audience achieve greater impact from your ideas through action and learning. In a world of mounting performance pressure, the ideas that can lead to more and more impact that is meaningful to people will be the ideas that prevail. Those are the ideas that will generate the greatest return for the idea providers. In short, if you want to improve your return on assets, find ways to increase the return on attention of the people you are seeking to reach.

  • 09
    May 22
  • 0

From Adaptation to Anticipation

Category:Collaboration,Connections,Emotions,Exploration,Fear,Future,Learning,Strategy

Adapt or die. We’ve all heard this imperative. While there’s some wisdom buried in this imperative, it needs to be drawn out. Most people interpret this imperative in a way that can become deeply dysfunctional and ultimately leads to death. Adapt is not sufficient – we need to first anticipate, then adapt.

Adapting in the Big Shift

What do I mean? Let me start by setting some context. As I’ve written about extensively, we’re in the early stages of a Big Shift that is transforming our global economy and society. The Big Shift has many dimensions to it, but one key dimension is the accelerating pace of change in all aspects of our lives.

When confronted with this accelerating change, we as humans have some natural reactions. The first reaction is to go into denial – we tend to diminish or even dismiss our perception of the changes that are going on around us. We want to believe the world is actually much more stable and that we’ll return to the world we knew and relied on.

As the change accelerates, we begin to flip the switch and go to the other end of the spectrum. Now, we’re consumed by the change we see around us and we begin to see that we need to change ourselves. How do we change? We embrace the need to adapt, but the adaptation we pursue is highly reactive. We react to whatever is happening in the moment and finding ways to change to meet the new needs surfacing around us.

Here’s the problem. As the pace of change accelerates and expands, falling into a purely reactive approach can become overwhelming. There’s so much that’s changing that we end up spreading ourselves way too thinly across so many different fronts that we fail to keep up with the changes consuming us.

The need to anticipate

So, what’s the alternative? Before we adapt, we need to invest the time and effort to anticipate. We need to look ahead and try to determine how the changes around us are likely to evolve. We need to anticipate which changes will lead to new opportunities that are the most meaningful to address.

This certainly won’t be easy, but that’s why it’s important to invest the time and effort to anticipate. I’ve written about the power of a zoom out/zoom in approach to strategy for institutions and I’ve explored the techniques that can help institutions to zoom out on a 10-20 year horizon and anticipate very big emerging opportunities. Over time, I’ve come to realize that this approach to strategy also has significant value for all of us as individuals.

We need to make the effort to look ahead 10-20 years and anticipate what the world might look like then and what really big opportunities are likely to emerge to address unmet needs of others. Consistent with a zoom out/zoom in approach, we need to then focus on the next 6-12 months to identify 2-3 initiatives that we could pursue in the short-term and that could have the greatest impact in accelerating our progress to addressing the really big opportunities that are emerging.

This is where adaptation can now play a much more useful role. Once we have some focus on the changes that really matter, we can avoid being distracted by changes that are temporary or marginal. As we pursue the short-term initiatives, we’ll quickly discover what new approaches can yield the greatest impact in helping us to evolve so that we can address the opportunities that really matter. We’ll adapt much more quickly because we’re committing more time and effort to the changes that really matter, rather than getting consumed by reacting to all the changes erupting around us.

There’s another important advantage to anticipation. In a world that’s rapidly changing and creating mounting performance pressure, we have a natural human tendency to be consumed by fear. While understandable, fear is also a very limiting emotion, as I’ve discussed in my new book, The Journey Beyond Fear. If we’re afraid, we tend to shrink our time horizons, we become much more risk averse, and our trust in others erodes. Fear diminishes our ability to adapt. We just focus on very short-term changes, we become less willing to go outside our comfort zone and we are more reluctant to seek help from others.

In contrast, if we make the effort to anticipate some really meaningful opportunities what will emerge from the changes around us, we’ll begin to draw out the passion of the explorer that will help us to adapt much more effectively and rapidly. Rather than being reluctant to adapt, we’ll be excited about adaptation because it will help us to achieve the impact that is meaningful to us. As a result, we’ll also be driven to ask for help from others so that we can accelerate our progress even more.

The untapped potential of leverage

That leads to another advantage of anticipation – it can help us to leverage our efforts and to learn much more rapidly. If we look ahead and identify a really big opportunity that’s meaningful to us, it’s much more likely to be meaningful to others as well. If we share our excitement about that really big opportunity and ask for help from others, we’re much more likely to draw others who also become excited about the opportunity. We’ll begin to achieve much greater impact as we unleash the network effects that come from joining together to achieve shared objectives.

But the benefit of this kind of leverage is even bigger. If others share our excitement about the really big opportunities ahead, they will also become motivated to adapt. They will be driven to come together with us so that they can learn faster together through action and reflection on the results achieved from their actions. They will be much more motivated to collaborate and take risks that are inevitably encountered when we seek to develop new approaches in a rapidly changing environment. And, no matter how smart and talented any of us are, we’ll learn a lot faster and adapt a lot faster if we come together in small groups with deep trust-based relationships where we are all motivated to learn faster together. I call these groups “impact groups” and I’ve come to believe that they will play a key role in accelerating our adaptation – I explore this in much greater detail in The Journey Beyond Fear.

Adaptation and evolution

But, wait a minute. I can hear some real push back around this notion of anticipation as a foundation for adaptation. Many people are likely to point to the evolution of species on Earth and say that they have evolved and survived based purely on adaptation, without anticipation.

Agreed. But the evolution of species has been driven by the law of large numbers. Each being may seek to adapt, but very few are successful. The good news is that there are generally a lot of beings in a species and most of them will die off to make room for the few lucky beings that pursue the right kind of adaptation. Those lucky beings will proliferate and eventually dominate the species until the next set of changes require further adaptation and then the cycle starts over again.

What I’m seeking is a way for all of us to not just survive, but thrive. I believe that’s a realistic objective if we all move beyond adaptation and focus on anticipation. Of course, this will take some time and we’ll need to cultivate the capability of anticipation. It won’t be easy, but it can be done if we come together and make the effort.

Bottom line

Don’t get consumed by the imperative to adapt. Begin by seeking to anticipate how the world is likely to evolve and the really big opportunities that will emerge in that world, providing us with the ability to have impact that’s much more meaningful to us. Once we begin to see those opportunities, we’ll be able to focus on adaptation that really matters. We’ll also be able to come together with others who excited about these opportunities and find ways to adapt much more rapidly and effectively than if we attempt to adapt in isolation. If we get this right, we won’t just survive, we’ll thrive in ways that are difficult to imagine in a world that is rapidly changing.

  • 07
    Mar 22
  • 2

Embracing Paradox

Category:Connections,Exploration,Growth,Learning,Opportunity,Paradox

We live in a world

Of either/or,

Not both/and.

This is a world

Where reason rules

And does not tolerate

Exceptions to the rules.

But that’s not the world

We really live in.

We’ll never see

The full richness of our world

And we’ll learn a lot less

If we choose not to see

Its complexity and contradiction

And its endless mystery

Hiding beneath the surface.

Paradox can help us to learn

As long as we welcome it

And explore it,

Grateful for its ability

To challenge our deeply held beliefs

And tightly enforced rules.

  • 31
    Jan 22
  • 0

Increase the Power of Your Narratives

Category:Collaboration,Community,Connections,Emotions,Fear,Movements,Narratives,Opportunity,Passion,Small moves

I’ve written a lot about the untapped power of narratives, including in my new book, The Journey Beyond Fear. But, what are the specific elements that contribute to that power? I’ve been participating in the development of quite a few narratives, and it’s led me to focus on four elements that will make or break a narrative.

Stories and narratives

Let me start, though, by reminding everyone what I mean by narrative. Those who have been following me will remember that I make an important distinction between stories and narratives, even though most people view them as the same thing.

For me, stories are self-contained – they have a beginning, a middle and an end. Stories are also about the storyteller or about some other people, real or imagined, but they’re not about the people in the audience.

In contrast, for me, narratives are open-ended. They focus on a big threat or opportunity out in the future, but the threat or opportunity has not yet been achieved. The resolution of the narrative hinges on the people in the audience – it provides a call to action that will ultimately determine the outcome of the narrative.

As I discuss in greater detail in my book, narratives can play a powerful role at multiple levels, starting with us as individuals – we all have a personal narrative. But narratives can also have significant impact at the level of institutions, geographies (cities, regions and countries) and movements. The elements that I’m going to explore below apply to narratives at all these levels.

The four elements of a powerful narrative

As I indicated, narratives can focus on either a significant threat or opportunity in the future. Since I believe we are in great need of more opportunity-based narratives, I’m going to focus here on opportunity- based narratives. Based on my experience and research, the four elements that will determine the power of an opportunity-based narrative are:

  • Framing the opportunity
  • Identifying trends enabling the opportunity
  • Identifying obstacles and challenges that stand in the way of achieving the opportunity
  • Framing the call to action

Framing the opportunity

The foundation of an opportunity-based narrative is of course the opportunity itself. This is ultimately what will motivate people to come together and act for impact. For this reason, it is important to find an opportunity that really inspires and excites the people we are trying to reach – it should not just be something that is “rational” or supported by data. Finding this kind of opportunity requires a deep understanding of the people we are trying to reach so that we find an opportunity that is aligned with their aspirations. Of course, they may not yet be aware of the opportunity, but we should explore whether this opportunity would excite them, once they become aware of it.

Effective narratives focus on a very big opportunity that will require long-term effort by many to achieve. If the opportunity can be quickly achieved by a few people, it will not become the catalyst for large-scale action by a growing number of participants. What we need are narratives that can sustain us and excite us over a long period of time. Of course, that also implies that we should be able to make progress in addressing the opportunity relatively quickly so that we will be encouraged to continue on the journey together.

The opportunity framed by a narrative also needs to be a positive-sum opportunity. This means that the opportunity will expand as the number of participants expands. If an opportunity is fixed in its size and rewards, it will discourage more people from joining and collaborating with each other.

Identifying trends enabling the opportunity

One of the big risks with framing large, long-term opportunities is that it can generate a lot of skepticism, especially from those consumed by fear. For this reason, it’s important to be able to identify some long-term trends that suggest this opportunity is achievable, and not just a fantasy.

But there’s a balance that needs to be maintained. While these trends should reinforce our belief that the opportunity is achievable, they should not be viewed as making the opportunity inevitable. If the opportunity is inevitable, we will tend to become passive. Why would we need to act and take risks if the opportunity is going to emerge anyway?

Identifying obstacles and challenges

That leads to the third element of powerful narratives. Somewhat paradoxically, the strongest narratives are those that identify and assess significant obstacles and challenges that will make the opportunity difficult to achieve. This will underscore that significant effort will be required to address the opportunity identified by the narrative. We can’t just sit back and assume that the opportunity will emerge on its own.

This will also help to prevent early participants from becoming discouraged too quickly. If they’re expecting obstacles and challenges, they’ll be motivated to forge ahead and find ways to overcome the obstacles and challenges.

Framing the call to action

A call to action is a critical pillar of powerful narratives. The people addressed by the narrative need to be clear that the outcome depends on the action they take.

For this to be effective, another balance needs to be struck. The call to action needs to be high level enough that participants can improvise and adapt the action to their specific context, especially as unexpected situations emerge. On the other hand, the call to action needs to be specific enough that it can provide tangible direction to people regarding the kind of action that will be needed to achieve the opportunity.

The call to action also needs to be framed in a way that people can initially make small moves and begin to see progress in addressing the broader opportunity. If people believe that their action will not yield any positive results for decades, they’re much less likely to maintain their excitement on continuing the journey.

This increases the importance of focusing on impact, not just action. Effective narratives have a call to action where the progress can be measured and monitored. The call to action needs to be specific enough that it can help to define metrics that matter. This will help all participants to assess how much progress is being made and to reflect on how to achieve even greater impact. It will also give them encouragement when they can see the progress that is already being made.

Bottom line

Properly framed, opportunity-based narratives can be very powerful. At their most basic level, they excite people about coming together and acting to achieve a really inspiring and meaningful opportunity. It’s ultimately about moving people beyond fear to hope and excitement.

As with most things in life, it’s ultimately about balance. We must believe that the opportunity is achievable, but also that it will not materialize without concerted action because of roadblocks and challenges that stand in the way. We need to be able to take small steps, especially at the outset, but we also need to see how those small moves can set big things in motion.

NEW BOOK

(if you've read the book, click here)

My new book, The Journey Beyond Fear, starts with the observation that fear is becoming the dominant emotion for people around the world. While understandable, fear is also very limiting.

LEARN MORE
BUY NOW

The book explores a variety of approaches we can pursue to cultivate emotions of hope and excitement that will help us to move forward despite fear and achieve more of our potential. You can order the book at Amazon.

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