Contributing to the cyber security conversation

 Business, Canada, IT Security, politics  Comments Off on Contributing to the cyber security conversation
Oct 162016

My firm, Institute X, responded and provided a paper to the Canadian Government’s Consultation on Cyber Security. It’s a considered white paper that assumes government should do what it’s supposed to do (public safety and security; and support Canadian industry). We suggest that an “unreasonably” high standard for cyber security and directed support toward the Canadian cyber security industry (e.g., national security-protected procurement) will benefit Canada on multiple fronts.

Download it here: institute-x-cyber-security-consultation-submission-oct-2016.


 Uncategorized  Comments Off on Intrapreneurshit
Jul 132016

Like long forgotten songs on a K-Tel compilation, Intrapreneurship, the notion that employees of large organizations can hustle and scramble like entrepreneurs to create innovation and radical growth, is back! Of course, its day in the 1980s sun was a failure. But today’s promise is the success of Silicon Valley’s disrupting wunderkind.

Should intrapreneurship actually catch on, again… it will fail. Again. Smart executives of targeted enterprises and government departments ought to remember why it failed before and take a pass this time. The flawed assumption is that entrepreneurs thrive in any environment. Except, everything that makes entrepreneurship admirable is suffocated in the low oxygen atmosphere of the large organization.

The entrepreneurship allure is palpable: a dream of agility, disruption, and outsized growth leading to dominion over new and even undiscovered frontiers. With unicorns on every horizon, it’s hard to ignore. But for large organizations, it’s a mirage that will squander resources and frustrate everyone.

The larger the organization, the more its strength weighs upon it. It can no more be an entrepreneurial entity than the growth business is a colossus bestriding the world. The pitch to turn an eighteen wheeler into a Tesla is ridiculous and counter-productive.

Large organizations need not ogle enviously at the upstart entrepreneurial organizations rapid, often false growth that captures market and media attention. Appreciate your own qualities. Large organizations are mostly slow and steady. They have to be. Oscillating around opportunistic pivots would rend the behemoth from seam to seam. A material mistake by a small business constantly changing anyway is bad but recoverable. A material mistake for a large organization could prove mortal (without government intervention). Demands of governance and responsibility befitting its stature command the organization to be circumspect. One role of large organization is to stabilize tempestuous seas.

Sounds banal compared to the romantic entrepreneur. But, this gummy stateliness belies vast virtue. Large organizations have the power to change markets and industries. That they may choose not to because they’re comfortable has nothing to do with intrapreneuring. The taxi industry did not have to actively ignore its suzerain being upended while focusing on rigging regulation. Moreover, a start-up did not succeed in digitizing music nor create the consumer smart phone industry. Apple did. Ultimately, large organizations control innovation and disruptive change.

Your favourite innovation guru will have written that when industries heave with revolution, some venture-backed entrepreneur has used a technology or method to disrupt a cozy environment. But even where that is the case, it’s because the large incumbents were sleeping. As often as not, industries are turned inside out because competitive, large organizations acquire or introduce changes to the competitive environment and evolve the marketplace. In effect, they reinvent themselves and their worlds.

This has little to do with being entrepreneurial. It has everything to do with being observant, smart, and courageous. These mark the entrepreneurial character but are not exclusive to it. Most organizations require innovation of some sort, not all need the peculiar and destabilizing qualities of the entrepreneur.

This intrapreneurship fad is but a means to a desirable end: innovation, which in turn leads to growth (and maybe reinvention). A large organization does not have to weaken its chances pretending to be something it is not and cannot be. Of course, large organizations should do things to remain vital and purposeful. But they should play to strengths.

Large organizations should get and be strong at anticipating changes to their world as has Royal Dutch Shell. They should strive to innovate. That will necessarily keep them apprised of near and distant (technology) innovations around them. Large organizations have the resources to do something better than be entrepreneurs: they can buy entrepreneurs—at the right time.

Large organizations have been known to get fat and lazy, ferreting out challengers, buying them, and burying their technologies to maintain control of their worlds. The world no longer allows that. Enterprises need to tack: don’t buy the start-up or growth company to shelve it; buy it to grow it and, maybe later, internalize it. I say maybe because the choice could be to shape the smaller organization to benefit from and provide benefits to the large organization. This is a different skill, but one a large organization could more probably create.

Many enterprise organizations would be better off creating a farm system of minor investments and expertise at observing real entrepreneurial action. Supporting and keeping them alive, all the while creating the internal conditions to ingest entrepreneurial output and do what enterprise organizations do best: serve scale.

Large organizations have to be stable, not ossified. An aircraft carrier is no PT boat. It is built for stability in even the roughest waters. To be the indispensible centre of many critical operations, ths largest of naval vessels must be stable. Necessarily, it doesn’t move nimbly. It would be absurd to expect it to operate like a frigate. But even with the responsibility to provide a dependable platform, the aircraft carrier and its personnel are always prepared and vigilant for stormy seas or competitive attack from the sky or under the waves—from other navies or even pirate flotillas.

Think about that. Maybe the idea of a carrier group fleet would serve large organizations well in structuring themselves to do battle in their own corporate oceans.

Innovation Nation? More like Pontificate State

 Business, Canada  Comments Off on Innovation Nation? More like Pontificate State
Jul 132016

Innovation will not get better in Canada. Sorry Minister Bains, we will not become “Innovation Nation” because we are not a start-up nation. Not that being a start-up nation is necessary. But without start-ups, innovation has to come from the enterprise level. In Canada, it will not, except from a few egoless businesses still run by the originator that ignore and avoid “professional” managers/consultants in important leadership roles.

Sadly, the rest of enterprise size organizations will not be helpful though essential. It will not be for a want of desire and intensity. It will not be for want of noise. It’s because the biggest fraud and disservice the media and management gurus have perpetrated on gullible MBA-class and younger business executives weaned on two rounds of Internet unicorns, is to make it seem like innovation is easy and immediately accessible to those that want it.

Enterprises can put attention and resources to the challenge. And yet it doesn’t happen. So, what’s wrong? Obviously, it must be misguided tax (incentives) and industrial policy. No, there is a brain drain. No, it has to be inadequate support and early-stage financing. That’s not right. There’s a scaling capability shortfall. Or we need an entrepreneurial startup culture. Or maybe, everybody’s just not wishing hard enough.

Certainly, based on prevailing problem identification and solutions, it couldn’t be because real, noticeable innovation is hard, infrequent, and more demoralizing than cold call door-to-door sales. More than that, it’s not simple. In fact, innovation is typically complicated and complex (and if you don’t know the difference, perhaps that’s part of the issue…). None of which sits well with enterprise executives of the sort described.

We appear to have been convinced that everything at every stage should be simple. And some things are—at some well-trod, detail-defying level of description. Innovations, by definition, are not that. Even when, under the adoring glow of market success, the essence of the innovation is ridiculously over-simplified (think Über or iPod or Amazon) for broad consumption, the true measure of non-simplicity is easily scratched out of the polished surface.

Simple is fine. So long as you, behind the wheel of your car understand start (with biometric voice command), engage (GPS-enabled destination command), and let the car do its thing, you’re good. We’ve described simply the innovation of the self-driving automobile. Of course, it’s absurd. Such a “simple” innovation is unattainable without somebody—the business people purveying it perhaps—knowing the much less than simple (creative) thinking just beneath this placid surface.

Yet too many executives—with an unrelenting commitment to the latest whack-a-doodle pronouncements on professional management technique—have no real clue about innovation. If they did, they would know that asking for product concepts, business plans, and so on for innovations to be simple during that period between fanciful conception and practical realization is neither helpful nor valuable.

Focus not on the first part, but the last three words of what’s called Einstein’s Razor: “Everything should be made as simple as possible, but no simpler.”

There is skill and art in communicating the essence of innovation to different audiences at the appropriate level of complexity. Overwhelmingly that is where the thinking and difficult work falls into the “simplest possible description” trap never again to get back to the necessary level of difficulty that innovation demands. Too many of these professional managers are educationally and temperamentally unprepared to root in the not-simple, not-easy, muck of innovation from which the eventual simple story will eventually emerge.

An innovative idea starts with a simple proposition. But, if achieving it were that simple and straight-forward, it would be done already. That simple proposition, whether a business model innovation or technology development, meets the challenge created by the very recombination or change that makes the simple idea so appealing. Through a lot of trial and error, failure and heartbreak, a Eureka moment may happen. It is viable! Only then can the whole endeavor be once again regressed to an easy-to-consume PowerPoint graphic or 20-second elevator pitch or advertisement or what-have-you.

Those who haven’t or don’t work on innovations regularly have no idea. Until more enterprise (senior) leadership owns and understands (or grudgingly tolerates if not gets mucky themselves) the messy complexity of the process, and accepts that nothing gets simple without being very complex first, innovation will not be a strong suit of Canadian business. Our go-to move will remain able administration.

It doesn’t have to be this way. And it doesn’t have to be the future. Leaders, especially those phalanxes senior professional managers need to learn to love wallowing in the guts of their businesses—especially if their business is innovation.

Innovation Fads, Fashions, and Trends

 Uncategorized  Comments Off on Innovation Fads, Fashions, and Trends
Sep 142014

So much ink; so much paper! So many pixels! So many task forces! Thank God for the bottomless pit to mine for answers to Canadian innovation challenges. The proposals are as many as there are lobbies and hobbies. And every one of them has merit. But every one of them is doomed by narrowness and inadequacy. That’s because, as the girl said to the boy: “It’s complicated.”

The focus of well-meant public musings and counsel tends toward specific, actionable, and obvious drivers of the problem. The result? There ought to be more public and private investment at every stage; better training and skills; government intervention; coordinated geographic clusters; stronger commercialization; more creativity and risk taking; a focus on entrepeneurs; or a focus on enterprises. And on and on.

Less considered, probably because they make crystal clear causal arguments cloudy at best, are the softer facets of the ecosystem. There are one or more steps removed from the direct “this-then-that” connection between action and outcome. Also, innovation tends to be diagnosed discretely from other economic and social challenges, such as productivity decay. This is the result of a schooled reductionism that segregates systemic problems into constituent parts as if complex problems can always be solved in pieces and work when reassembled. But that’s not how complex systems work.

Setting aside my cynicism about the motives of those voicing positions, each contribution adds valuably to the discussion. But that discussion remains isolated, technocratic, and mired in detail. Consider only the example of innovation and productivity as a holistic pair.

Everyone who has sat through an executive discussion of new revenue contrasted with reduced cost knows that the latter goes straight to the bottom line. CFOs fall all over the second option. And yet, productivity is in decline in Canada. Why? Among the reasons is a “waste not, want not” ethic that would make a Puritan blush. There is also the discount sticker given to Canadian businesses by our chronically weak dollar. Let’s not forget government subsidization/protection. All of this cuffs the market’s invisible hand that might otherwise force competitive price drops, in turn demanding greater productivity—perhaps through innovation?

Weak demand for productivity innovation weakens the drive toward technologies, processes, and business models that address these challenges. Only among a few exceptions, such as mining, are businesses innovating—or investing in innovation—for productivity gain. In other cases, such as oil & gas, their cups have spilleth over so much that being unproductive is inconsequential.

That leaves the glory of consumer-directed innovations. Consumers want cool technological toys that may (the jury is still out) make them more productive. It’s true—or at least it’s said, which is the same thing apparently—that mobile devices make business people more productive. It’s also true that many consumers are also business people. But is WhatsApp or FaceBook or the iPod creating productive commercial capacity? The argument for “yes” is dubious at best.

Consumers reward these innovations though, or the successful ones anyway, explicitly with revenue or use; less explicitly through the idolatry of consumer products and the business people associated with them. Investors reward such innovations with easier and more valuable rounds of financing, and grand payoffs at Initial Public Offering. This all despite many of the longest-lived and profitable technology businesses, such as Microsoft and Oracle and Salesforce and SAP, innovating around commercial/management productivity. But they’re not Facebook or LinkedIn are they?

Defocus consumer innovation! Blackberry (RIM) lost its edge and lead not primarily because of threats in the consumer space but because it chased that space and forgot that its lead and advantage was due to its impact on industrial productivity. Also consider that while it’s true Henry Ford made the automobile a mass consumption product, his enduring legacy is the conveyor belt: the productivity innovation that allowed for the consumer delight.

So what’s the point? Simply this: all of those many answers to the innovation problem could be instrumental elements of a successful change to Canada’s innovation trajectory. Maybe… in some combination… or in some sequence…. But merely refocusing toward innovations that genuinely address how to make Canada’s businesses more productive, first at the edges then at the core, would set the stage for solving multiple economic challenges, including productivity and innovation, and fabricating a virtuous cycle updraft to raise all parts of the economy.

I use “F-Words”

 Uncategorized  Comments Off on I use “F-Words”
Sep 122014

I use “f-words” in mixed company. Well-bred professional, management, and executive types recoil in disgust. One might think that they would be inured to f-words. But they seem to hold themselves above all that.

Of course, the most troubling f-word is not the one on the tip of your tongue now. This one sounds “eff” but starts “ph.” Try saying philosophy in the company of busy career people; just be prepared for rolled eyes and that piteous expression that says you just don’t get it.

Those blank faces better “get it” soon themselves. Our privacy and maybe even democracy could depend on it. After all, not every tectonic shift is as blatant as the revelations of Edward Snowdon or as arrogantly, publicly contemptuous as the Fair Elections Act. Pay attention to the every day stuff!

Today’s transactional immediacy of business and government work is not an historical novelty. There was no time when these practical people were more inclined to think deeply about what they were doing. What may be different now is the measure of disdain for anyone who challenges business or government plans and actions more deeply than what the pervasive “value proposition” pap answers.

If we refrain from contemplations of epistemology and such, and stick to ethics and the sunnier(!) side of existential questions, philosophy is about purpose. That has to be clarifying for professionals, and is about as close as most organizations get to schwerpunkt (a typically consonant-ridden German word that means concentration point or main effort).

When I say philosophy in this company, I often mean, “What do you believe?” Not as in, “We believe the world wants a device that will allow them to…” That’s actually, “We think…” Rather, as in, “We believe that people need to remain connected to other people; we believe our purpose is to provide devices that…” Despite reading and abiding by directives such as Start With Why (Sinek, 2011), this kind of descent to expose the core assumptions of “Why” is one nobody really wants to take.

So why is that kind of philosophical pondering held in such disregard?

First, it’s hard. It requires rigorous thought, due consideration, and alternative points of view. None of which is acceptable in an environment of HiPPO (Highest Paid Person’s Opinion) rules or unconsidered braying of partisan vitriol.

Second, it’s still hard. It demands a sense of right and wrong. That then presumes you might stand for something, ideally something that can be argued rationally from some principles. Rampant specialization and narrow awareness does not lend itself to this capacity.

Third, it’s unnecessary. After all, whether its Mill, Burke, Rousseau, or Jefferson, there are philosophies a plenty to choose from and no need to waste time on such things now.

Fourth, well… it’s hard. Given the preference for action—any action!—to indicate ability, quality, and value, taking time to muse over that action gets indicted as regressive to say the least.

It’s true that some fundamental underpinnings of philosophy are timeless—give or take a millennium, otherwise we wouldn’t still look to Plato. But other philosophy is more set in a time and place—give or take a millennium or continent, so it needs to be refreshed from time to time.

Given the rate society is evolving in technology’s wake, we need to take a little time to continually consider whether our core values remain operative in practice. At the very least, we should give a modicum of respect and an ear to those who do it professionally, casually, or within the confines of their daily toil.

The problem with not thinking about these things and, worse, discouraging those who will, is that these things are affected by rapid innovation and change anyway.

The seemingly outrageous privacy invasions by governments is not the product of a sea change in method. It was a steady dripping of unconsidered change that allowed the method to metastasize into what it’s become: something odious. And, it all took root in so many innocuous “consumer benefits.”

The outrageous bill that is to be the Unfair Elections Act (2014) is only possible because over time we have largely become so blasé about hyper-partisan drivel and the corruption of governance by politics that many people see nothing especially egregious about the bill’s content. And so it now threatens a foundation of our society. That represents six years’ effort on the part of Canada’s New Government.

So let’s all throw around the f-word until it’s so common that everyone does it. We’ll all be better for it.

Foretelling decline by observing focus and attention

 Canada, politics, society, stupidity  Comments Off on Foretelling decline by observing focus and attention
Aug 212014

The National Post headline says, Canada’s language watchdog probing John Baird’s Twitter account over lack of French posts. Sadly, the headline says it all. There is, of course, a story that challenges the requirements for a “public” account to be in both official language. That is, as opposed to a “personal” account. Implicit, of course, is the recognition that Twitter has a growing and overwhelming institutional side equivalent to broadcast media. After all, that’s what the parallel would be.

That challenges the entire notion of Twitter, a question or dark secret that ought to come out into the open: Twitter has been co-opted by the corporatists (as is everything eventually). All you Libertarian technologists take note.

In any case, isn’t this situation (i.e., a federal government minister, elected in a riding in the nation’s capital, who ought to be communicating with constituents in both official languages as appropriate for this circumstance) something that “the market” should address. And here, of course, “the market” is the electorate which can determine whether he is offside or not. Do we really need a public office to tilt at this windmill?