Book Review: The Culture Code

33517060The Culture Code, by Daniel Coyle, is an amazingly interesting book about fostering successful cultures at work. It’s not about artificial ways to increase morale, but about encouraging a sense of belonging, and fostering an environment where everyone can do their best work, and continually improve the workplace. What strikes me the most about the book is how interesting, and applicable (and new) the stories are.

I have to say that the quality of this book not only makes it 5 stars, but puts on my rare favorites shelf. The quality is doubly-amazing when contrasted to the author’s prior book The Talent Code, where there wasn’t enough practical advice, and the stories were downright boring.

I’d like to share 2 broader stories, and then list out snippets of themes and stores to remember where to find them later when I need them.

After Toy Story, Ed Catmull realized that most companies that achieve success don’t maintain it. He realized that preventing a decline was the next problem to solve. All movies are bad at the start. Frozen and Big Hero 6 were disasters.

Building purpose in a creative group is not about a generating a moment of breakthrough, but building systems that can churn through lots of ideas in order to unearth the right choices. He focuses less on the ideas, than on people. To give them tools and support to locate paths, make hard choices, and navigate the process together.

You need to value the team, not the idea. “Give a good idea to a mediocre team, and they’ll find a way to screw it up. Give a mediocre idea to a good team, and they’ll find a way to make it better. The goal should be to get the right team together, get them moving in the right direction, and get them to see where they’re making mistakes, and where they’re succeeding.”

When Pixar was bought by Disney, and the Pixar execs were put in charge of Disney animation, there was no turnover. “We put in some new systems, they learned new ways of interacting, and they changed their behavior. And now they are a completely different group of people when they work together.”

They made people accountable for their own ideas, and put people in functional groups rather than role-basest building layout.

Danny Meyers restaurants use catch phrases that act as heuristics that provide guidance by creating “if-then” scenarios in a vivid, memorable way. Mostly applicable to his restaurants, but you can see how it identifies the priority in a memorable way. It ties in with the book’s theme of creating a culture of belonging, and a sense of purpose. I just liked the statements.

  • If someone is rude, make a charitable assumption.
  • You can’t prevent all mistakes, but you can solve problems graciously.
  • If it ain’t broke, fix it.
  • The road to success is paved with mistakes well handled.
  • We are all paid to solve problems. Make sure to choose fun people to solve problems with.
  • There is glory in making a mistake.
  • Stone after stone to form a bridge.
  • If you’re not growing anywhere, you’re not going anywhere.
  • No shortcuts.
  • Work hard. Be nice
  • Don’t eat the marshmallow.
  • Do the right thing when no one is watching.
  • Read the guest
  • Write a great final chapter
  • Turning up the home dial
  • Loving problems
  • Finding the yes
  • Collecting the dots, and connecting the dots
  • Creating raves
  • One size fits one
  • Making the charitable assumption
  • Put us out of business with your generosity
  • To get a hug you have to give a hug
  • The excellence reflex

 

Stories and studies:

  • Belonging
    • 3 belonging cues: Are we connected? Do we share a future? Are we safe?
    • The Wipro call center found that by training employees to belong with a motivational presentation made them 200% more likely to stay at the job.
  • Expectations + Confidence
    • There’s a magic phrase that a study found encouraged significantly more effort and improvement in students: “I’m giving you this feedback because I have very high expectations and I know that you can reach them.”
    • Popovich, coach of the San Antonio Spurs built a culture of excellence and winning.
    • Regarding a restaurant who trained an employee, but was on his own the first night: “Here’s how we’re going to know if things go well–if you ask for help ten times today. And if you ask for help no times today then I think we know how things are going to have gone.”
    • Let people know that they are important for the teams success.
  • Discipline
    • Highlight the small behaviors that lead to the outcomes not the outcomes themselves. For example in a hockey game it’s highlighting the person who got back to defense real fast to steal the puck that led to the goal not the person got the assist or scored the goal.
  • Purpose
    • Johnson and Johnson took their credo statement very seriously, not because management said so, but because they had it bottoms-up reviewed periodically to reaffirm it with employees. Then, when they had a Tylenol cyanide poisoning scare, they looked at the credo to know what to do, and came out stronger, despite predictions that the brand would be ruined.
    • You have priorities. If you want to grow you’d better name them. And you’d better name the behaviors that support those priorities. (Colleagues, guests, community, suppliers) “How we treat each other is everything.”
  • Structure
    • Close proximity and workspace increases the amount of communication and interaction dramatically. Which is highly correlated with success in the project.
    • 10 person tables at lunch increased productivity because of increased collaboration.
    • The government created a contest where they wanted groups to form that would find red balloons launched secretly around the world. A team at MIT won after implementing multi-level-marketing incentive scheme, where you would get an award for finding one, and a smaller award for being in the chain that invited the person to the group.
  • Psychological Safety
    • Vulnerability sparks cooperation and trust. Most people think vulnerability would come after you trust someone but actually trust is formed after you see people in their vulnerability
    • Seal Team 6 fostered a culture of bottoms-up problem solving that allowed them to have success in the raid on Osama bin Laden
  • Management
    • Leaders empower those closest to the problem.
    • Empowering teams:
      1. What do you like most about your job?
      2. What do you like least?
      3. What would you change if you were captain.
      4. Anybody have any ideas?
    • Soliciting management feedback:
      1. What is something I do that you’d like me to keep doing?
      2. What is something that I don’t do frequently enough that you’d like me to do more?
      3. What can I do to make you more effective?
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Book Review: Influence

Influence: The Psychology of Persuasion by Robert Cialdini

This is the 2nd of 2 books on Influence that I read, and they were both really good in their own ways. Influencer: The Power to Change Anything was focused on how to achieve influence, and this more based on science, and why it works, and the tools of influence. For example it explains about how reciprocation is at the core of what makes humans social animals. Understanding that when you help someone, you’re likely to get helped.

Many human behaviors tend to be automatic responses to given stimuli. The book outlines the following tools of influence. I’m presenting them neutrally, despite some being obviously shady.
1. Comparison. You can make prices seem higher or lower with anchors.
2. Reciprocation. Make someone feel like they owe you. Bring someone a snack, and they’ll buy raffle tickets from you later.
2b. Reciprocation Concession. If someone turns down a big request, they’re more likely to say yes to a simpler request later.
3. Commitment tricks. Have the person write down or verbally commit. Get them to think of themselves as a caring person in advance of the request. Get a commitment with an enticing offer, then change the offer. (Bait and switch).
4. Social proof. When shy preschoolers were shown a video of young people overcoming shyness their social abilities dramatically improved. Highly publicized suicides dramatically increased both suicides, and “accidental deaths,” aka hidden suicides.
5. Scarcity. When people were asked to rate how good a cookie was, they rated it better when they were almost gone, than when the plate was full. (They got the last one!)

Extrinsic motivations are less motivating than intrinsic ones. A group of children who were told “Don’t play with that object or I’ll have to punish you,” were more likely to misbehave later, vs a more simple “It’s wrong to play with that object.”

I looked up the Robert O’Connor study of the preschoolers hoping to find the video, but I never found it. If there’s a magic video that improves social abilities, why doesn’t everyone have it?!

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Book Review: The Power of Moments

The Power of Moments is a great book that explores why certain experiences have an outsized impact on us, and how to create more of them. Moments such as the following, that should be made exceptional.
• First day of work.
• Promotions. (When becoming a manager, should shadow an existing manager.)
• School “signing day”, for announcing what college students will attend.
• School Projects: High school students used English and History time to prepare a Trial of Humanity, in a real court room.
• Don’t worry about the potholes. (Low priority bugs?) Fill the pits, and build peaks.

The following are my notes from the book.
Reliability, dependability, and competence meet customer expectations. To exceed expectations and create a memorable experience you need the element of pleasant surprise.

There’s a chapter called “Trip over the Truth”
1. Clear insight
2. Compressed in time
3. Discovered by the audience itself
Examples include realizing you’re a jerk boss, and getting Bangladesh people to realize that open defecation is unhealthy. Best to convince people that the problem is real before your solution is raised. Realizing the problem is what sparks the sudden insight.

University of Virginia created a course design institute where they helped professors design their courses. They helped professors discover what their long term goals were for the course, and realized that their syllabus was bogged down in details that weren’t trying to meet their goals.

Mentors push mentees to stretch. Wise criticism is “I’m giving you these comments because I have very high expectations and I know you can reach them. So try this new challenge, and if you fail, I’ll help you recover.”

Multiply milestones
Identifying them:
1. What’s inherently motivating?
2. What would be worth celebrating (short term success)
3. What’s a hidden accomplishment that is worth surfacing and celebrating?

Connection
For a group to bond, take on a demanding task that’s deeply meaningful.
Consider asking about purpose and passion in interviews. Purpose is more important than passion.

Deepen Ties: when a school did parent home visits, the school turned around because they saw that the teachers cared.
Our relationships are stronger when we perceive that our partners are responsive to us.
Understanding: My partner knows how I see myself and what is important to me.
Validation: My partner respects who I am and what I want.
Caring: My partner takes active and supportive steps in helping me meet my needs.

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Book Review: Smarter Faster Better

Smarter Faster Better: The secrets to being productive in life and business by Charles Duhigg

This is an interesting book, full of great stories and good ideas. I’m not sure that I learned any important ways to boost my productivity but it helped me to think about what paths have led others to success.

The Marines teach that leadership is learned through effort. Once you take control of a situation you want to do it again. During hard times, ask yourself “why” to link difficult small tasks to the greater goal. Motivation becomes easier when we transform a chore into a choice.

Commitment at work. The secret to Lean Manufacturing success is employees who care and are experts in their areas and are encouraged to improve things. A survey of Silicon Valley startups found that the commitment style of culture was most reliably successful and ended up with the best average metrics. Find committed employees to the culture and mission.

A great story about creating the Disney movie Frozen demonstrats how to connect to your own creativity.
1. Be sensitive to your own experiences. What can you relate to?
2. Panic and stress create conditions to help us see something new.
3. Be careful to not fall in love with what you’ve already done. Find ways to look at it from a new angle or get a new leadership in place that will ask the right questions.

 

 

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Book Review: Misbehaving

misbehavingRichard Thaler is known as the father of behavioral economics, and he did his work at the same time as Daniel Kahneman, who gained fame for his work on the same topic as a psychologist. Prior to his papers, economists tended to think that people always acted rationally. Economists would never predict that people would be happy when the bowl of almonds that people were munching right before dinner was taken away, so that their appetite wouldn’t be spoiled. Economists thought that people always acted rationally. Thaler came up with point after point where he realized that that wasn’t true. This book is a story about how he came to realize how irrational we are, and how he slowly proved it, to the chagrin of leading economists of the day.

Note for example how most people respond to extra costs when using a credit card. Paying more is thought of as a surcharge, which is rather disliked. But if it’s a cash discount you’re giving up (with the same effect), then you think of it as just a small opportunity cost for the convenience. Rationally they’re identical, but psychologically, they’re different.

As Thaler tried to convince economists of his ideas, he hit lots of roadblocks. They were used to papers published with real world, or laboratory results, and he had been experimenting with simple survey data. Critics said that in the real world, people wouldn’t make mistakes.

He discovered the endowment effect, which is where you value something more greatly because you have it. You might never buy a $100 bottle of wine, but if one you bought went up in value, you’d never sell it…

He found an irrationality called the transactional utility effect. Utility is defined as the benefit you get out of a transaction. If you buy a watch for $20, it’s because you expect to get more value out of it than other uses of $20. Maybe you’d get $50 of value, but luckily it only costs $20. Transactional utility, is when you get value out of the transaction itself, rather than the item obtained, such as being excited about finding some jeans at 50% off. Transactional utility is negative when you’re getting gouged, and positive when you find a great sale.

He found that people are risk seeking when it comes to losses (we want to avoid sure losses) and risk averse when it comes to gains (we would rather have money in hand, than a chance for more). The “breakeven effect” is where you take extra risk to claw back losses. “House money effect” is where you are more risk seeking when you’ve recently been gifted or won some money.

The “status quo effect” is where you need to be convinced to change your current situation. Personally, I think that’s a good one, because you could imagine the extra transactions people would make if any time they like a house or whatever marginally better, they would just change? Seems applicable to employment and social memberships as well.

He wrote Anomalies for the Journal of Economic Perspectives, which also carried a brain teaser column, which is interesting.

He tells stories about professors who got caught up on analyzing office size square footage in a new building instead of other niceties. And NFL teams who overwhelmingly favor high draft picks and the current year over the next year despite plenty of evidence to the contrary.

Other stories are about how Palm and Shell stock both had episodes where the same stock was effectively trading at vastly different prices.

When trying to convince people to respond to mailings, the phrase “most people pay and you are one of the few delinquent” was the most helpful in getting responses.

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Book Review: The Case Against Sugar

The Case Against Sugar by Gary TaubesThe Case Against Sugar – by Gary Taubes

This is the 3rd Gary Taubes book that I’ve read about pretty much the exact same thing: Don’t eat carbs! I personally liked Good Calories, Bad Calories more than Why We Get Fat: And What to Do About It, but they were both pretty good. I’m imagining that if you haven’t read any, that this would be the one to read. The evidence against sugar exists, is routinely ignored, but it’s still pretty much as weak as all the rest of our nutrition science. It’s amazing they can’t make strong recommendations about anything.
The book goes into the history of how people used to think that sugar was healthy, and just as people were realizing it was likely linked to diabetes, the sugar industry started lobbying, and all of a sudden fat becomes the cause of all our problems.
Did you know they did 2 large studies to prove fat was bad for you, and the study could not? Yet no one gave up on the hypothesis. They just continued pushing a low-fat diet, and assuming their studies were just imperfect. The public and media presumably demanded answers, and so scientists guessed.
Well according to Taubes, sugar is more associated with diabetes, cancer, obesity, and heart disease than saturated fat. We still need more research on it though.
Our sugar intake has gone from 20 lbs per year to 100 lbs per year over the last 100 years, and yet it’s not the prime suspect for all of our modern diseases. Well I’m sure trying to eat less now.

Taubes’ writing was a little tedious and there were many facts that just don’t lend themselves to an audiobook. I probably would have skimmed a few sections if I were reading. The narrative could have been made a little clearer, and I would have liked to learn more about what’s happening in the area now. Honestly, I’m not sure why he wrote this given his other books. He nearly could have just retitled his other book. It is a better title…

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Book Review: Leaders Eat Last

Leaders Eat Last: Why Some Teams Pull Together and Others Don’t by Simon Sinek

leaders-eat-last-coverI didn’t really enjoy this book about leadership by Sinek. I get the feeling that he wants to rid the world of bad leaders, but doesn’t know how to do it other than sharing anecdotes of good and bad leadership and hoping you’ll choose wisely.

Some key points that I got out of the book:

Work-life balance is as much about safety and security (and comfort I would say) in the workplace as about the hours that you spend there.
Human beings are wired to want to help people.
Leadership is not about being right all the time. It is a responsibility that hinges almost entirely on character. All we need are leaders who give us a good reason to commit ourselves to each other.
Zen Buddhist saying: “How you do anything is how you do everything.”

The very valuable thing I got out of the book was the example letter of what Bank of America should have said when they revoked a terrible fee policy after customer backlash. The actual letter announcing the change was terrible, and his was actually quite refreshing. BofA acted like they didn’t do anything wrong, and the customers just couldn’t see how great the new fees were. You may as well own up to your mistakes. You might just gain trust instead of losing it.

I felt like there was a anti-big-business tone to the book that was rather annoying because there was no suggestion about how to overcome the issues inherent in large bureaucracies, business or governmental.

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Book Review: Habit

This great book about habits really got me thinking about how much of life is spent on auto-pilot. From our morning routine, to driving, to playing our favorite sport, we actually have to think relatively little about a lot of things. And so as I teach my kids, or coach a baseball team, it’s easy to see how overwhelming it can be for them, when it can be so thoughtless for me.

Duhigg starts by covering advertising and how important it is to find a cue to get people to want to use your product. He called it the secret to advertising. He tells about Febreeze, and how they thought it would be so easy to sell the odor eliminator to people who needed it. But it nearly failed. There was no cue, since they were accustomed to the smells. Then they realized they could sell it to people who didn’t necessarily need it, but wanted a fresh scent when they finished cleaning. They added scents, and it became the thing people did, and the smell people craved when they finished cleaning.

Similarly, Pepsodent succeeded as the first popular toothpaste by adding mint, and getting people to crave the minty breath feeling.

The aluminum company, Alcoa, created a keystone habit around safety in their plants, and ingrained it in their culture. Their plant managers were required to report safety violations within 24 hours so that others could learn from their mistakes. Having such a visible requirement made it easy to later identify those who didn’t buy into the culture, and who were later fired. The 2 interesting side effects around safety were that executives were in more regular communication with each other, and workers were empowered to make suggestions, which they saw implemented, including in areas other than safety. Alcoa preformed exceptionally after making this transition.

There were also some tips about how to sell a new habit, by wrapping it in something that is already familiar. Selling liver by using it in a food already eaten–meatloaf. Making targeted ads (pregnancy) feel less creepy, by throwing in other random ads. Put new songs in between hits to make them popular.

There was a discussion of the civil rights movements for Blacks. Movements don’t emerge because everyone suddenly decides to face the same direction at once. They rely on social patterns that begin as the habits of friendship, and grow through habits of communities, and are sustained by new habits that change the participant’s sense of self. Rosa Parks had social connections to Martin Luther King Jr, who was able to influence the community.

There are certain triggers for habits: location, time, emotional state, people, preceding action. When wanting to change a bad habit, ask yourself, What reward are you craving?

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Book Review: Shoe Dog

Shoe Dog: A Memoir by the Creator of Nike

Image result for shoe dog book

This was one of the most interesting and enjoyable company biographies I’ve ever read. I listened to it with kids in the car, and it was even engaging and interesting for them. Thanks for keeping it clean Phil! Phil Knight founder of Nike covers its beginnings, which started as a tiny importer of Japanese shoes, as globalization was just starting to catch on. It grew by the seat of its pants through years of struggle and pain, to become the household name that it is today. Phil’s determination to push ahead and believe in the company through all the trials is so inspiring.

Like books, sports give people a sense of having lived other lives, of taking part in other people’s victories. And defeats. When sports are at their best, the spirit of the fan merges with the spirit of the athlete.

I struggled to give it 5 stars, because the last half is only 4 stars, but the first half is perhaps among the best writing I’ve read, and that along makes it worth the read.

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Book Review: The Hard Thing About Hard Things

The Hard Thing About Hard Things: Building a business when there are no easy answers by Ben Horowitz

This is a good book about the hard things about starting your own business. It covers strategy, logistics, buyouts, management, and is useful for entrepreneurs and executives in general.

The main theme of the book, if there is one, is how hard it is to build a company. He felt like his business was in war-time basically all the time. It was like jumping from one disaster to another. He also emphasized that there were no rules for being a CEO. No on was born to be CEO. Everyone makes it up as they go along. It’s a pretty refreshing take for an executive. The following are some interesting takeaways from the book.

Hire for strengths rather than lack of weaknesses. This parallels the themes of Buckingham’s management books I’ve been reading. Still have a few more reviews to write there. I’m totally into the strengths-based management and interviewing though.

Trust is crucial. If I trust you completely, then I need no explanation of your actions. Otherwise you end up spending time explaining yourself and doubting.

Training. Start training employees immediately on the fundamentals of your business, including architecture. Consider a weeklong camp. One of the side benefits is that it dramatically improves your company culture. Management training is the next most important training, which includes how to write a performance review, how often to do one-on-one meetings and what to do in them.

Metrics. Ensure that the metrics you track focus on the real goal and not some secondary nice-to-have goal. Otherwise, you’ll end up with an unintended consequence of sacrificing the primary for the secondary. For example, if you track predictability, you may sacrifice overall sales to achieve predictability.

Ambition. Management needs to have ambition for their product, or company mission, not for their careers. Otherwise the focus is in the wrong place.

Building a culture is about how you do things. The door desks at Amazon are a clear statement to employees that Amazon is a frugal company—moreso than any values statement. Facebook’s motto is move fast and break things to ensure that innovation is prioritized. Square emphasizes beautiful design in their products, and also their office space, so you wouldn’t find door desks there.

The book is full of interesting stories, and vague principles like these to think about at your company. Interesting, but not must-read, unless you’re an executive who needs reassurance that you’re not the only one who feels like your nearly drowning.

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