Strategic Partnership with Linkage

Press Release…

Stephen M. Shapiro Joins Linkage in Elite Partnership

Business Consultant to Bring Methodology on Innovative Culture to Linkage’s Clients

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Goals Are Stupid

NOTE: This article is on the American Express OPEN Forum with the title “How to Make Goal-Setting Work for You.”  But the title I really wanted was “Goals Are Stupid.”  I’ll let you decide if they are or not.

We are a society obsessed with goals. Nearly everyone sets them. In fact, we just finished the most popular goal-setting day of the year: New Year’s Eve. This is when we establish our annual objectives, called resolutions.

Even though goal-setting is in vogue, is it good for us? Maybe, but not necessarily.

After studying goals for nearly 10 years, I have seen that for many, this ritual can lead to both failure and disappointment. Why? Goal-gurus often use words like “achievement,” “success” and “potential.” They position these concepts in a way that sounds appealing. “Get a better job.” “Make more money.” “Find the perfect partner.” Although our culture has placed a high value on success, money, status and fame, none of these are what we really want. I believe the ultimate goal for human beings is “happiness.”

So, what is it that makes people happy?

A few years ago, I commissioned a statistically valid study that uncovered some startling figures:

• 58 percent of people admit to willingly sacrificing their happiness today in the belief that when they achieve their goals they will be happier. This means that over half of all goal-setters believe that happiness only exists in the future when they achieve their goals.

• Sadly, according to the same study, 92 percent of people fail to achieve their annual goal—their New Year’s resolution. And it appears that this failure rate applies to all goal-setting.

But what about the 8 percent who achieved their goals? Clearly they must be happy with the results. But surprisingly, 41 percent of those who achieved their goals found that the accomplishment did little to improve their happiness. In fact, they were left disillusioned, dissatisfied and worse afterwards. Why? Many realized they inadvertently set the “wrong” goal. What’s the response? Set yet another goal, and allow the vicious cycle to continue.

If you do the math, this means that only about 5 percent of goal-setters both achieve their goals and are happy as a result. And many of those “successful” 5 percent become acclimated to the fruits of their labor and the happiness wears off. The more money you make, the more money you want. The bigger your house, the more space you desire. The more successes you obtain, the more success you want.

This acclimation perspective is supported by Daniel Gilbert, author of Stumbling on Happiness, in an interview in the January/February 2012 Harvard Business Review. He says:

“A recent study showed that very few experiences affect us for more than three months. When good things happen, we celebrate for a while and then sober up. When bad things happen, we weep and whine for a while and then pick ourselves up and get on with it.”

He contends that happiness is not linked to achievement. In fact, he provides striking examples of people who had experienced “horrible” circumstances yet were ultimately happier in the long run. Apparently, we are good at finding the “silver lining.” On a lighter note, he quotes Pete Best, the drummer in the Beatles who was replaced by Ringo Starr before the band became big. He is now a session drummer and said, “I am happier than I would have been with the Beatles.”

Achievement does not necessarily drive happiness—nor does having “more” or “less.” To be clear, I am not advocating that people sit idly while eating bonbons and watching Jerry Springer. A life like this is neither juicy nor exciting and will most likely lead to hedonistic tendencies and a feeling of being lost. You still need to have something pulling you forward; something that gets you energized.

So here is what I am suggesting…

Read my four counterintuitive tips for goal-setting and the #1 fallacy of goal-setting on the American Express OPEN Forum

If you enjoyed this article, please press the “like” button on the American Express OPEN Forum website and spread the love.  Also, please leave comments there.

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How Candy Makers Helped Develop the iMac

I love it when companies are able to find solutions to problems in non-traditional places.

I was recently at a conference where someone said that Apple was having difficulty making the clear, colored plastic that adorns the iMac. None of the plastic manufacturers could find a solution that could make the product hard and durable enough.

Where did they look for solutions?

Candy manufacturers.  They can make hard and clear delights in a lot of different colors…just like the iMac.

When you are stuck and can’t solve a problem, look somewhere else.

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Lessons of Pawn Stars

Yes, you read that correctly.  PAWN Stars.

This reality television show on The History Channel chronicles a pawn shop outside of Las Vegas.  I enjoy the show because of the history associated with the pieces that are brought in for sale.  In addition to rifles from the revolutionary war and antique political documents, people bring in some unusual items like old videos games, dilapidated cars, and various novelty items.

After watching the show a bit, I gathered four practical lessons that Rick Harrison, the owner, uses when purchasing items:

1. Liking/wanting an item does not make it a good purchase; it must make money
2. Just because something is rare does not make it valuable
3. Look at the size and analyze if something else could make more money in the same space
4. Speed of sale is critical; consider the buyer’s market.  In down times, luxury items sell slower

These are also good lessons for any innovator.  Here are the innovation corollaries to the Pawn Star buying principles:

1. Do not get enamored with your ideas.  Just because something “feels” good does not make it a good investment.  Innovators often get “attached” to their creations and then blindly push forward.  Knowing which ideas will create money is critical.  Knowing which ideas to kill is a powerful skill.
2. Just because it is different does not make it valuable.  Recognize that novelty does not translate to value.  If you don’t have any buyers and it does not serve a specific need, you should not invest in it.  This is not a game of “innovation for innovation’s sake.” Too many companies say they want to innovate, but don’t really know why or how.
3. Not all innovations are created equal.  What solutions can create exponential value?  What are the leverage points in your market?  What products or services could transform your industry?  Although you don’t want to only “swing for the fences” (that is, don’t solely focus on game changers; incremental innovation is also critical), make sure you invest your resources wisely with a balanced portfolio and a good risk/return profile.
4. Above all, consider the buyer.  This is innovation 101.  The market must tell you where to invest.  In today’s economic condition, solving a pain is more important than providing an abstract benefit. In other words, be the aspirin for your customers’ pains.

Insights can be gathered from anywhere. Today I looked to a pawn shop. In the past, I was inspired by an expired bottle of mayo. Where else have you discovered new ways of thinking?  Innovation is everywhere.

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One Small Step for Your Business, One Giant Leap for Success

Quite a few books and studies recently have touted the power of incremental change. Small actions can have a huge impact on long-term business growth.

The appropriate degree of change needed for innovating within organizations is, in general, a 45-degree change, consistent but not too radical. That tends to be more effective than a 5-degree change (purely incremental) or a 90-degree change (radical).

Feeling good about it

People feel good when they accomplish something, even if it is small.

If you increase motivation, you improve overall performance and creativity, according to Teresa Amabile, Harvard Business School professor. In The Progress Principle, she makes a compelling case for why small successes contribute to motivation.

Small changes implemented over a long period of time compound their value and are the keys to long-term success, according to Darren Hardy, the publisher of Success Magazine. His book, The Compound Effect illustrates his perspective.

A good example of the compound effect is a slow and steady approach to weight loss, which has more sustainable results. Instead of trying to lose weight quickly through restrictive diets, become aware of the foods you put in your mouth. This awareness helps you make small adjustments, which have a significant impact in the long term.

We’ve all heard about compounding when you’re investing in retirement accounts. Start early, even if you invest small quantities, to take advantage of compounding.

Getting it done

An old study compared Japanese cost-reduction programs to similar ones in the United States. Japanese companies on average had 300 times more suggestions per employee, yet the average value associated with each idea was only 1/50 that of the U.S. companies. However, in the end, the Japanese companies saved 20 times more per employee than the U.S. companies.

This report indicates why so many idea-driven innovation initiatives fail. Instead of asking for small, incremental changes that we can implement quickly with little or no funding, most U.S. efforts ask for larger changes that require time and investment. The Japanese companies had a rate of adoption and implementation almost three times higher, with an eight times higher participation rate.

Making small changes to great effect

Making small changes is a good habit for companies and individuals to adopt. I developed a very simple technique called “3-cubed 30.”

In a nutshell, three times a week, implement three activities to help your business grow. Each of these should take less than 30 minutes. The investment per week is a maximum of 4.5 hours, yet the benefits can be huge. In reality, it will only take about two hours most weeks to complete all nine tasks.

Here’s what this looks like in my business…

Read the rest of this article on the American Express OPEN Forum

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