UNRAVELED the art of leading in a complex world

commplexitythe art of leading in a complex world

mikenatalizio

mikenatalizio.com

Marty NeumeierBestselling Author of Zag, The Brand Gap and The Designful Company

“ 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.”

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 MacLeodCartoonist and Best Selling Author of Ignore Everybody and Evil Plans

f o r e w o r d

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.

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

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.

Leadership makes or breaks an organization.

[ an introduction ]

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.

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Simpl i f y or per i sh .

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.

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is where the magic happens.

Leaders often succumb to complexity at the expense of their Blue Sky Time.

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 ].

Blue Sky Time i s when you take the t ime to ju s t be , re f l e c t , and focus .

blue sky timeI 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.

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ASS BACKWARD.

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.

MOST STRATEGIES ARE

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...

wicked[ real ]ONLY PROBLEMS ARE

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

completely solved. If you’re serious about attacking your Wicked Problems, you can start by changing behaviors. Maybe

it’s you, maybe it’s someone else, but it likely needs to be both. Every business has a Wicked Problem. Most have several.

Failure to separate Wicked Problems from the Wicked Symptoms will keep your business from realizing its potential.

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PROBLEMS

Complexity is a wicked problem.

Culture is a wicked problem.

Change is a wicked problem.

[ Reality check: we’re not getting any more time or money by doing more of the same old things. ]

The time andmoney 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.

5

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.”

rational6

THE WORLD IS TOO

= {emotional}

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

strategy down every time if you don’t address the emotional side of the equation.fear 2

strategy x 2

ROI

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$ Balance the c reat ive t ens ion be tween the hear t and mind.

FEARFAILURE

ofYOU WILL NEVER ELIMINATE THE

7Everyone 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.

Condit ion your brain to ignore the fear of fa i lure .

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.CONTROL.SO ELOSYOU HAVE TO8

E

Push deci s ion s downward to gain buy- in and improve per formance .

M

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.

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 ].

9 IT TAKES GUTS TO have fun.

The germ o f in sp irat ion comes f rom having fun.

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.

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.

10

than insight.

It takes more

Steve JobsCEO Apple Computer

“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 ]

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UNRAVELED the art of leading in a complex world