Discipline makes Daring possible.

Questions

Questions

People are asking big questions about accountancy.

Both from a technology perspective, as in this paper from Deloitte, and from a more existential perspective, exemplified by Professor Richard Murphy and the Corporate Accountability Network.

Big changes create great opportunities to re-think our models of the world as consumers and as producers.

Where do you think accountancy should go?   What should accountants do?  For whom?  What do we want from accountants?   Most importantly, what could we want?  What should we want?

Big questions, now is a good time to ask them.

Decisions

Decisions

One of the easiest ways to overcomplicate a process that is designed to be run by humans is to spell out every possible decision.

That’s not to say decision trees like the one above aren’t useful in helping people to think through options or scenarios, they are.  But often it’s impossible to pre-identify every possible scenario – especially where other living things are involved – and the attempt to include everything we can imagine in a process simply slows down its execution.

For the most part, simple, black & white, truly binary decisions can be automated.

For everything else we want people to think before they act.   In which case the best instruction starts with “Use your judgement and experience, together with your knowledge of our purpose and values”.

 

Why do I need process if I have good people? Detachment

Why do I need process if I have good people? Detachment

Why do I need process if I have good people?

As Japanese businesses know well, process embodies the ‘thing’ a group of people are working on – whether that’s a play, a car, a building or a service.

This allows a certain level of separation between ‘what I am trying to achieve’ and ‘who I am’, which makes it much easier for everyone involved to discuss and agree improvements, because it’s ‘the thing’ that’s being judged, not ‘me’.

Free from the fear of personal criticism, your good people can eagerly look for ways to make things better.

Why do I need process if I have good people? Responsibility

Why do I need process if I have good people? Responsibility

Why do I need process if I have good people?

Having a process to follow while they learn, gives people confidence that they are doing the right thing.

Once people are confident that they know what they are doing, they don’t wait to be made accountable – they take responsibility.

With the confidence of a process behind them, your good people can pretty much manage themselves.

 

Persuasion

Persuasion

All marketing is designed to invoke action.

The difference between persuasion and manipulation is who really benefits.

Bananarama

Bananarama

“It’s not what you do, it’s the way that you do it.  That’s what gets results.”

I disagree.

“The way we do things round here” clearly reflects the culture of an organisation or institution.   So does “What we do around here”  – the things an organisation or institution chooses to do, and the things it decides to leave out.

So what really gets results is to be clear about the promises that are being made, and intentionally design the ‘what’ to deliver on that in a way that embodies the ‘way’.

Not to be a straightjacket or monorail, just so it isn’t only in the heads of the people who happen to be around right now.

Thanks to Radio 4’s Thought for the Day for inspiring this one.

Spoiled

Spoiled

We bought a new sofa on Saturday.  We visited the Soho showroom and spent a good hour or so trying various models out, measuring them, discussing how we would get them into the room, and then ordered one.

We were helped by a very pleasant assistant who took us through creating an account so we could track our order, then placing the order for the sofa we wanted.   All this was done via a large tablet – so essentially, we could have been anywhere – except that we got to print a postcard of our sofa, so we could look at it while we waited the 14 weeks for delivery.

All good.   We left the showroom and went off to have a celebratory pint and a proper sit-down in the pub across the road.

That’s when they spoiled it.

The first thing I saw when I looked at my phone was an email from the sofa company, triggered by creating the account: “£10 off your first purchase with this code.”, followed by another email “Thank you for your order.”

Now, I am very happy with the sofa I’ve ordered, I liked the showroom experience, and found every person we spoke to extremely helpful.  And £10 is no big deal given the price of the sofa.

But still I felt cheated.  Because the way ordering worked in the showroom meant I couldn’t see that discount offer until it was too late.   Better then, not to have made it, or to have applied it automatically.

As the money being poured into emotional AI shows, companies are very aware that humans are feeling beings, who can easily shift and be shifted between emotions.

It would be a pity for all that money to be thrown into making promises, not at keeping them.

 

Connection

Connection

‘Stuff’ is just a poor substitute for what people really want – autonomy, mastery, agency, purpose and above all connection.

With that in mind, the questions any business, new or established should be asking are these:

“What do the people I serve want to become?”

and

“How can I help them get there together?”

not,

“How can I play that to get them to buy my stuff”.

Autopoiesis. How self-organising systems evolve.

Autopoiesis. How self-organising systems evolve.

Last weekend I spent a day going through my old London Business School notes before throwing them out to make room.   Its 21 years since I did my Sloan Fellowship, so this stuff is bound to be out of date.

Still, I skim-read quite a bit of it – lecture notes, my coursework, case studies – along the way, and I was struck by how much of it still resonated, especially an extract from ‘Leadership and The New Science’ by Margaret Wheatley, entitled “Change, Stability, and Renewal: The Paradoxes of Self-Organising Systems

According to Ms Wheatley, that’s not at all surprising.   One of the characteristics of a self-organising system (e.g. a human being) is that “as it changes, it does so by referring to itself [autopoietically]; whatever future form it takes will be consistent with its already established identity”,  “when the environment demands a new response, there is a reference point for change.”

For a business that reference point is it’s Promise of Value.   The more clearly and explicitly that is spelt out, and built into the way a business works, the more resilient that business will be – not because it won’t change, but because changes will always be adopted in a way that is consistent with that Promise.

As long as the system is self-organising, that is.    More on that tomorrow.

 

Accumulations

Accumulations

The driving force of capitalism is, unsurprisingly, the accumulation of capital.

Other things are accumulated along the way – some good (knowledge, skills, lives enhanced), some bad (waste, pollution, obesity, lives diminished, extinctions).

We’ve got really good at measuring the capital pile, but as individual businesses, we rarely look at the others.   As a result we underestimate our impact on the world.

Time to account for more than profit.