“ This is a fine example of thinking, communication, and design. I’m sure many people will want to keep it and display it. It’s a joy to behold.” Marty Neumeier Bestselling Author of Zag, The Brand Gap and The Designful Company
mikenatalizio.com
com mpl exity
the art of leading in a complex world mikenatalizio
foreword Life is complex. The brain is programmed to respond to 3 billion pieces of information per second. That’s how much complexity we can handle day in, day out. From the day we are born to the day we die, we spend every second of it in a sea of complexity. We spend every second of our lives fighting The Complexity War. And what Mike and his team over at HNI have done is turn that into a new kind of business. Going BEYOND their conventional insurance industry background and creating a service that helps clients more effectively fight The Complexity War, that more effectively helps them to manage the ever-increasing complexities of running a business? That is a game changer. This is, in short, what the insurance business will become eventually. Mike and HNI are pioneers. Exciting times, indeed – I wish them all well. Godspeed!
Hugh MacLeod
Cartoonist and Best Selling Author of Ignore Everybody and Evil Plans
We live in the greatest time in human history. In the past 25 years, the world has been upended. Everything is different, newer, quicker, and better. Most of all, it’s more complex. And the complexity is mounting faster and faster, day after day. In this amazing world full of opportunity, there are some who thrive. But far more become trapped in the complexity and spend too much of their time doing mediocre work. They fail to tune out the noise and seize the opportunity to make something that matters.
Leadership makes or breaks an organization.
This manifesto is about reversing course and bringing simplicity back into the game. As CEO of HNI and an advisor to many clients, I’ve had an
[ an introduction ]
inside look at the boardrooms of more than one hundred organizations. My observations have led me to create a list of 10 eternal truths that leaders either ignore or fail to recognize—all of which stop them from leading. This is my list. It is comprised of 10 short, but potent, vignettes. Feel free to scratch the ones you don’t agree with and add some of your own. Then use them as conversation starters [ game changers ] to help unravel the complexity in your world.
My company, HNI, is a non-traditional insurance brokerage and business advisory firm. In an industry laden with complexity, we set out to stake a claim and build our brand around what actually matters to our clients: growing their company, reducing costs, and strengthening their culture. We help our clients “Change the Game” by helping simplify the complexities within their business.
1 FIGHTING THE COMPLEXITY WAR IS A LOSING BATTLE.
Business is complex. Leadership is suffering. Complexity will never go away—that’s okay. Driven by the new economy of perpetual change, our business landscape will only grow more complex. As new products proliferate in our market and the sheer number of opportunities and business risks circle above us like vultures, we need to make more decisions faster than ever before. Unfortunately, most of our businesses aren’t keeping pace. Our tried and true strategies fail to create momentum outside of our mahogany paneled offices and our employees buy approximately none of what we tell them.
Q: So why can’t our people execute on what, to us, is a powerful, gripping, and straightforward idea? A: Complexity. Snugly nestled between our seductive vision and the quest to increase shareholder value, the Complexity War single-handedly paralyzes organizational progress. We can no longer fight this war using traditional ways of thinking. We must change the way we approach it. Business today is the art of simplifying the complex—and that’s a battle worth fighting.
Si m p li fy o r p er ish .
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blue sky time
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is where the magic happens.
Leaders often succumb to complexity at the expense of their Blue Sky Time. I found my office to be a major blocker to Blue Sky Time. It was too big and it was cluttered. So, after much deliberation, I got rid of my office this year. I just don’t have one anymore. I gave up my “prime real estate” to our head of sales. Now I carry just a few things with me when I work [only what fits in my booq briefcase]. Every day, I pick a place to work from. Sometimes it’s an open, collaborative space around HNI. Sometimes it’s Starbucks. If it’s a great day, I’ll be working with a client in a workshop. The lack of clutter and better use of technology keeps my mind open and allows me to be more productive.
Blue Sky Time is when you take the time to just be, reflect, and focus. This is where big ideas and breakthroughs are born. This is where the magic happens. But how much time do we have to actually slow down and think? When you have a free half hour in your day, do you sit and let your head drift to the Big Blue Sky? Or, instead, do you hit refresh on your email every five minutes—or better yet, call a meeting? It’s easier to focus on a piece of the puzzle than how it all fits together. To work in a business rather than on it. You desperately need more Blue Sky Time to fulfill your most important responsibility: thinking. Or you could just continue to scrape by, if that’s what inspires you. The focus on what needs to change occurs in the Blue Sky [ and nowhere else ].
It’s natural to try and “fix” a problem with a quick start idea that only exacerbates the problem you’re trying to solve. I’ve caught myself and others falling into this trap. Before launching your idea, take a breath and ask, does this get at the problem itself? Or is it ass backwards? As I began this project, I felt this vignette could fill an entire book on it’s own. Could be a fun sequel of examples...
The world has changed. Driven by the invasion of Web 2.0, our traditional business models have been turned upside down. Forget about what you learned in business school and what your mentors taught you. This type of thinking is actually driving customers away and disengaging employees. Most of us who want to drive growth start by looking at company performance. If it’s lagging, we re-articulate our company’s plan of action. We set new goals and metrics, thinking this will motivate our people to execute better. When that doesn’t work, we head back to the drawing board to rethink strategy. This is a recipe for failure. Performance is a lagging indicator of a deeper problem. Real growth has to start with a strong culture—one with identity. Culture eats strategy for breakfast. The company identity should be the driving force behind strategy, determining which avenues to pursue and which to ignore. The strategy that centers on culture is unstoppable; and, in this environment, performance takes care of itself.
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MOST STRATEGIES ARE
SSA
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d i e c k w
ONLY [ real ] PROBLEMS ARE
PROBLEMS
Leaders are constantly called on to solve problems. Ninety-nine percent of the time, these problems miss the point. Many leaders focus on the symptoms, rather than the root cause—the Wicked Problem. If you hack away at the
symptoms of a Wicked Problem, fresh problems will constantly be flaring up. And putting out fires is the exact opposite of implementing new ideas. More of one equals less of the other. You have to attack the Wicked Problems themselves in order to leave a lasting effect.
Wicked Problems are the kind that keep us up at night and that sneak into our thoughts when we’re supposed to be done
with work. Wicked Problems are the type you can’t just write a check for and make go away. Sometimes they can’t even be
Complexity is a wicked problem.
completely solved. If you’re serious about attacking your Wicked Problems, you can start by changing behaviors. Maybe
Culture is a wicked problem.
it’s you, maybe it’s someone else, but it likely needs to be both. Every business has a Wicked Problem. Most have several.
Change is a wicked problem.
Failure to separate Wicked Problems from the Wicked Symptoms will keep your business from realizing its potential.
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The time and money excuse [ is a ] trap.
The Time and Money Excuse is a little phrase our brains repeat to us to excuse us from facing the real issues. “Yeah, but we just don’t have the time or the budget...” Cut the crap. The Time and Money Excuse is a pathetic reason for embracing the status quo. We use time and money as reasons for playing it safe—but those are just excuses. Excuses that limit us in our quest for value creation. [ Reality check: we’re not getting any more time or money by doing more of the same old things. ]
So where is all the time and money going? For one, I know email literally consumes our work days. We’re getting hundreds of emails a day —and emails are not work. I play a little game at conferences I attend. I ask fellow attendees what they’re going to do in between breaks; inevitably, they will say “I’m gonna get some work done.” Then after the break, I’ll ask them how it went? The answer, after they pat themselves on the back, is: “Great, I got through all my emails.”
2 3 strateg y x 2
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= {emotional}
rational THE WORLD IS TOO
ROI
$
fear
If people were completely rational, you could calmly explain your ideas or strategies to them and they would click every time. But no one is totally rational or objective in business, although we’ve been trained to prioritize numbers and hard facts. Making an emotional connection with the people we’re trying to reach is equally [ no, more ] important. We use our intuition as the main driver in the decision making process. This how we see the whole picture and this is what enables us to ultimately pull the trigger. People ask “what’s the ROI?” when what they really want are numbers to substantiate their gut feeling. The corporate crutch for certainty stifles innovation and creative problem solving. Find a way to intoxicate a person’s heart. Rationalization will smack your
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Balance the creative tension between the hear t and mind.
strategy down every time if you don’t address the emotional side of the equation.
7
YOU WILL NEVER ELIMINATE THE
Everyone is afraid of failure. Anyone that denies this is lying to themselves. Part of the reason we don’t try to create something new is because we fear nothing is there. Maybe deep down we’re not creative. Or innovative. Or different. So we subconsciously choose to keep ourselves occupied within the complexity and fly under the radar. We all want differentiators, until it’s time to start acting differently. What if they don’t like it? What if they laugh? Overcoming this fear is the first step. No one else can quiet that little voice in your head. The resistance will always exist. You need to learn how to ignore it.
C on d ition y our brain t o ig n or e the fear of fail ur e.
FEAR of
YOU HAVE TO LOSE M SO E CONTROL. 8
There’s a new management style afoot. It’s one that I have taken seriously and continue to move myself and my company towards. It goes by many names, but it always involves an internal social transformation. One that uses tools to help unleash new ideas and human potential. [Although the tools can’t drive transformation—that part’s up to you.] Like any transformation, turning around a culture doesn’t happen overnight.
Command and control is the style of most organizations. Top-down decisions are less complex to make. Strategy is decided by the chief exec and the others fall into place. This style is dying. Yet most companies are still trying to get better within this model—a model that no longer works. Retooling the hand-me down concepts that our predecessors used won’t attract the talent you’re seeking. Today’s workforce has a magnetic attraction towards a workplace that listens, empowers, and appreciates their work. If we don’t give this to them, they’ll leave [ or become cube squatters that don’t contribute any real value ]. Your people have something to
say, it’s just a matter of being willing to listen. Give them the forum to say it. Catalyze a future of transparency, accountability, and speed.
Pu sh d e cision s d ownwar d t o gain buy - in an d impr ove pe r for m an ce.
Admittedly, I used to be one of those guys that needed the fully loaded, brand-laced PowerPoint for every presentation. [ Besides, if I didn’t have my logo on every slide they may forget who they’re talking to]. Having given that up, I use an iPad to take notes, draw diagrams, and use the content to spark more meaningful communications. Kinda like a digital napkin. I find this has a unique ability to bring simplicity into complex conversations.
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IT TAKES GUTS TO
have fun. Above all, find your joy. It doesn’t have to be sexy or flashy. My passion is in solving my clients’ puzzles in their quest to grow—whether the problem comes from managing their risk, building their brand, or developing their strategy. It’s like a game for me. And I’d play it for free. Just because you enjoy something doesn’t mean that it will be easy. It won’t. But you should feel it in your gut that your work is a gift to the world. Develop a playful approach to your work. Introduce fun. Don’t just do things differently, but do different things. Ban PowerPoint from your presentations and use drawings or pictures to sell your big idea [ no one will miss the 12 bullet-point slides ].
The ger m of inspiration comes from having fun.
10 It takes more than insight. Insight is the knowledge you use to drive decisions. Incite gets others to act. Your vision may be born from insight, but it’s dead without incite. Anyone can have an idea, big deal. What matters is making it happen. Don’t hoard your vision until you have established the details of the details. Playing it safe is risky business—so hold your breath and dive right in. Perfection is unattainable. You’ll never know everything, and you’ll never be guaranteed success. To create something beautiful, something that really matters, your idea needs to ripple through every level of your organization, inciting and inspiring your team to make a radical change. If you don’t incite change, who will? As a leader, you have to be the spark. Take action. Now. Make something happen. Go, unravel the complexity.
“Simple can be harder than complex: You have to work hard to get your thinking clean to make it simple. But it’s worth it in the end because once you get there, you can move mountains.” [ BusinessWeek, May 25, 1998 ] Steve Jobs CEO Apple Computer