Sunday, August 18, 2019

Everything I know about the IT business is from Godzilla Against Mechagodzilla

Which movie is this? There’s a few, so it’s important to disambiguate!

Not to be confused with (which I can only recommend to the fevered or otherwise hallucinating) or even (pretty fun, but not a sufficient scaffold for understanding one’s career). To be fair, would probably also work for this exercise. Let’s get started!

When problems become apparent enough to need resolution, they’re often all-consuming.

Your old plans for resolution are for your old problems, and might not work any more.

Someone or something is going to take a fall. New attempts to fix this culture are laudable and I hope they succeed.

A new solution is much more likely than fixes to the old solution.

People struggle to put rationality ahead of emotions. This fellow blames people instead of technology for past failures.

New solution projects always have surprises and grow to cost more than anyone expects.

They also still go into the field untested against outside context problems...

... and bad things can happen when testing in production.

Metrics data is fine, but user interfaces should always put the bottom line up front.

Give an analyst an alert, and they’ll want all the data.

Someone always ends up taking one for the team.

Stated differently, if everyone only performs to the stated requirements then the project won’t be successful.

Inelegant solutions need a lot of power.

Partial success is better than complete failure.

Analysts will grow fond of their tools, even if the ultimate outcome was only partially successful.

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Friday, August 2, 2019

Enterprise Business Metrics

So you’ve launched a product... Is the product selling? How’s ASP (Average Sales Price) after discounting? Deal size? Cost of sales? Are there measurable predictors for losses? Are there ways to accelerate or increase the wins? If your license is per term instead of perpetual, is your product getting renewed?

And if your product is one of many...  are your wins correlated with the wins for other products? What would happen if they were bundled? Does your product cannibalize something else the company sells? How would you know? Do ELAs hurt or help your product’s adoption?

Companies ask these questions because they need to manage the business. Tautology, right? So let’s be blunt: you can’t get investment or spend investment without some way to predict how you’re doing, and you can’t decide if you’re going to continue an investment if you can’t see how that investment is performing. As a product leader, your paycheck is coming more or less directly from that investment and these questions have a ring of immediacy to them.

And if your product is a consumer-facing direct sales widget, you may be facing some mysteries (aren’t we all), but the numbers are probably relatively clear. Unless it’s sold through retail partners. Enterprise software sales though... when your product starts at “new car” and can cost up to “Central Park penthouse”, measuring performance starts getting strangely difficult.

Enterprise software is sold to customers who don’t always want to be clear about how much they are willing to pay or when they are willing to pull the trigger. At the very least, this means that the deal data is unclear and may change for reasons that don’t involve your product.

Enterprise software is sold by sales people, and sales people are maximizing their compensation plan and pipeline. At the very least, this means that entering the data you want into Salesforce is pretty low on their priority list. At the extreme, it can mean a variety of bad behaviors, particularly if the sales person is not actually competent. They might have good reasons for sandbagging deals or inflating pipeline, or they might have heard it was a good idea somewhere and misunderstood the reasons... but all sorts of craziness can happen in an enterprise sales team.

Setting aside the truly bizarre behavior of a failing team, sales leadership might try a bunch of mechanisms to deal with the normal lack of clarity. Favorites include:
* Dedicated people who force the deal to make sense. They might be called something like “sales operations” or “deal desk” or “contract specialists”, or the function might be overloaded onto an inside sales team. The resulting organization is simply fatter than before, because there’s still customers and salespeople with their own motivations and context in between the data and the organization.
* Punitive policies: the deal won’t be booked or the sales person won’t be paid if all the reporting isn’t done in a correct and timely fashion. This is an amusing game of chicken because the company willing to a) not sell product or b) risk a lawsuit over a principle of report quality has got their priorities seriously backward. Actually going through with such a threat is a great way to lose customers and sales people, which really reduces your sales numbers.
* Rewarding policies: the sales person will get a toy or points toward the yearly club or public recognition for doing their reporting in a correct and timely fashion. Again, simply amusing, because this data is not worth an incentive large enough to motivate a sales person worth hiring. A good sales person in enterprise software makes very large amounts of money. You can play on their sense of camaraderie and you can ask them to be diligent, but those factors are present without the incentive. In order to incent, the prize has to mean something in relation to their compensation, and that number is not small. Furthermore, the sales person’s job is to make the customer’s organization complete the purchase, and the incentive has no impact at all on the customer. Is it supposed to make the sales person work harder? Then why isn’t it simply paid to them as part of their total compensation? Are they supposed to give the incentive to the customer’s purchasing department? Sorry, that’s illegal bribery.

Given the ineffectiveness of these interventions, why do companies pursue them? Any generalization will miss a lot of examples, but I am fond of two explanations: the manager who is more comfortable with spreadsheets than conversations, and the manager who isn’t sure what to do, so they do something that they understand.

So we return to thinking about what the deal data is worth... there’s a quote popularly attributed to Charles Babbage, “Errors using inadequate data are much less than those using no data at all.” If the data in Salesforce can be considered directionally correct but untrustworthy in detail, it is still useful for the purposes listed above. You can manage with it. You’re working with a string and a rock instead of a titanium yardstick and a laser level, but a lot of buildings have been erected like this. Improving the quality of your sales measurement tools is worth very little when compared with double-checking their results: talking about specific deals with sales people and customers can be remarkably illuminating.

Working with a Coach

Executive coaching and mentorship is an interesting part of modern business, and sometimes people are not prepared for taking advantage of it. Here are some notes on the purpose and value.

So you’re working with a coach to get better at execution... what are you going to say?

As a potential mentee, start with outside boundaries, the Overton window. A corporate coach is not a therapist; the need is to find performance problems and optimize teamwork. More Dave Righetti, less Sigmund Freud. You may uncover reasons to work with a therapist, because leadership work involves you as a person far more than individual contributor work does. Your emotional resources are going to be used when you lead, inspire, console, and support others. The coach is not the person to help with personal maintenance, but they might be able to show you what you need. Fixing those problems is work to do elsewhere.

Within what you’re willing to discuss, locate the secrets. Why don’t you want that opinion known? Is the reason rational and explainable to an outside coach? Is that reason a you problem or an organization problem?
Ideally you’re not trying to discuss anything that your team couldn’t already know, and the question is how to be more effective in communicating your thinking, persuading others to agree, or accepting that your opinion didn’t prevail and the team is going elsewhere. If the situation doesn’t look like that, there’s something to fix. Is it you, or is it the organization? Is it reconcilable, or will it end in parting ways? Might as well focus on figuring that out before you bother with unpacking whatever secret has led to this realization.

Now, back to the coach. This person fits into one of three boxes: A mentor who is helping you for charity and their own growth, a coach that your organization paid for, or a coach that you paid for.

Mentors may or may not be encouraged by the organization, and there may or may not be a formal mentorship program; in my opinion those parameters only affect the degree to which the mentor is actually willing and able to help. A mentor who is able to see problems and help you fix them is helpful, regardless of what structure the organization provides or does not provide. Notably, a mentor’s time is limited and you need to aim for efficiency. If you don’t have a specific and achievable improvement goal in mind, you’re not getting mentorship, you’re having coffee with a coworker.

The existence of an organization-paid coach may open some questions: why is this person assigned to me? Are they being hired for others as well, or am I singled out? You may feel like you’re being prepared, for greatness or for unemployment. It’s best to assume this is a positive investment on the organization’s part in order to make you (and potentially others) a better leader. There is little to be gained from indulging in paranoia. However, it is fair to note that a person hired by the organization has loyalty to the organization as well as to you. You should think, and communicate with the coach, about what information you are willing to share. Again, time is limited, but you probably don’t know what the budget is; it’s best to get what you need fast.

A coach that you pay opens a different kind of risk: they are potentially seeing the organization through your eyes alone. Even if they’re able to attend your meetings as your guest, they are always getting a filtered experience. Ideally the fact that you’re paying will help you focus, but that’s not always the case; you should plan for a fixed number of sessions up front and clearly state your immediate and achievable goal.

A good coach will see small and large blockers, and they’ll sound trivially obvious. You may even already know you have these issues. “Discussing the problem and constraints first is good for engineers, but bad for executives; start with your proposal instead of how you got there.” “Don’t cross your arms and look away when you’re asked a question, you look defensive.” It’s not helpful to discuss the existence of the blocker; move on to their recommendation, and sincerely try that recommendation at least three times so you’ll know if it was the right thing.

Bad outcomes can occur in mentorship and coaching, but by far the more common result is an ineffectual series of meetings. If the mentor is unable to provide helpful advice, or if the mentee is unable to act on the provided advice, or if the actual problem is outside of the mentee’s control, then coaching is really only relevant to a future situation where the mentee is hopefully able to use what they learn.