Organizational Habituation

There’s a bit of a habit bandwagon on the move at the moment, with a rash of books, software apps, and so forth all helping us to understand the Trigger->Action->Reward structure of habitual behaviours, and how to use that understanding to build our own positive habits. In Verilab’s client work, and beyond that to other SMEs with whom I work, however, I’ve noticed what appears to be, in the group environment and even overall organization, a strong analog of habits in the individual person. I dislike gratuitous creation of neologisms, so I’ve looked for a phrase to denote this phenomenon, but haven’t been able to find one. So I’m naming it now. I’m calling it “Organizational Habituation”.

To explain further, first observe that probably the prime reason for the popularity of the habit books, and many others on personal development in general, is that many of us desire behavioural change but that such change is simply hard. Creating a positive habit such as taking regular exercise is difficult, as is stopping an unwholesome one like eating too much, and the typical solutions to those things — the statement “so just take regular exercise and eat less” — is both correct but next to useless as practical advice[1]. The fundamental reason most overweight people have that problem is not that they eat too much but that some part of them wants to eat too much. It’s as if there are actually two persons inside the one individual body, one saying “resist” and the other dangling images of BBQ ribs in front of the eyes (and nose…). And of course that notion of the divided self is ancient and venerable. A recent treatment of it by Jonathan Haidt, in his “The Happiness Hypothesis”, in which he pictures the two selves as an elephant and rider, is superb. The key point here is that it’s possible for an individual to be intellectually aware of the benefits of performing behaviour B and not performing behaviour C, and yet in practice do precisely the opposite. The age-old battle between our higher and lower brains continues, and the amygdala often wins. Habituation is a method whereby we can make that battle go more often in our (overall) favour.

My observation is that that gap, between knowing what is the right course of action and then actually taking it, seems to occur not just with individuals but at an organizational level too. In software development, for example, certain processes and standards have been developed over the years. Now although some do constitute fairly useless overhead, many represent serious distilled wisdom and are a pretty sure path to better product development. However, even in the case of the latter, it seems it’s not enough for an organization to “know” that behaviour B is correct. For example, it’s not enough to know that certain behaviours in code configuration management — committing changes regularly, working on the appropriate branch — are wise. In our experience in Verilab, and that’s covering many hundreds of large and complex projects across a wide range of clients, project styles, and application domains, many if not most clients already know what is the “right” behaviour, but only a subset do it regularly.  Project planning is another area subject to this organization “divided self” effect. Few if any groups would say that planning your chip development or the highly complex verification sub-project was anything other than essential. But the number who actually plan effectively and, more to the point, persist in effective planning and management discipline throughout the project, are far fewer.

And a telling observation is what happens if these issues are raised with a client. In the same way that if you ask me, “Do you really think eating that extra slice of cheesecake is wise?”, I’ll hang my head, frown, and sigh a pouting begrudging “No” as I put down my fork, cheesecake piece uneaten, so too will the typical chip lead hang his head and sigh if asked about their team’s lack of good practices in their chip flow. And the thing is, he and his team already know about those practices, just as I know that eating too much cheesecake is not good practice. The problem is not that we don’t know. We act “badly” despite knowing otherwise. That’s why we sigh! Over the years of personal fighting with cheesecakes, and watching my clients fighting with complexity in chip design, I’ve concluded that neither of us are bad people. Neither of us are stupid. Our problem is our failure to deal with the fact that both as individuals and, it seems, as teams, we are divided selves. In each case there is a higher brain that knows the right behaviour, but there is also a lower brain that has its own ideas, is stubbornly immune to the higher brain’s reasoning, and is extremely powerful. Whatever the solution is, it’s going to have to deal with that fundamental nature. The higher brain merely yelling at the lower is no more effective than an elephant rider yelling at his ride when the big animal has spotted some nearby food.

So, the answer? You’ll get no such silver bullets, lies, or marketing bullshit from me here. For now, this remains simply one of many pieces of what are effectively field research that my Verilab teams and I do as we help clients across the planet, understanding these challenges common to almost everyone, seeing patterns emerge, and hunting for solutions. We also link back to academia, especially groups working on the psychology of learning and performance, and on programming mastery in particular, to ensure we’re feeding our thought processes from the theoretical and scholarly side too. So no easy answers, but here are three thoughts or pointers.

First, let’s keep in mind exactly what we’re looking for here in building a habit. A key characteristic is that it’s a behaviour where it has become more normal for us to do it than not to. It may even become uncomfortable not to do the habituated action. At the extreme end of habituation — addiction — the discomfort of not obtaining the drug or cigarette can be so intense as to drive the individual into what is clearly self-destructive behaviour. But further down the scale, and more positively perhaps, we have regular runners who report feeling “antsy” if they don’t get out for their morning 3 miles. An example we can almost all relate to is the use of seatbelts in a car (hat tip to my friend Tony Chen for that example). That feeling of unease one gets when driving off having forgotten to fasten one’s car seatbelt is a sign that seatbelting has become habituated for you. And a good thing too! So you will know you are building an organizational habit when your “organization” starts getting grumpy when the action in question doesn’t get done. What is the organizational equivalent of grumpiness in an individual? I’m not sure, but I suspect it has something to do with where even junior people are allowed, expected to and regularly do raise red flags. If when, on a late Friday afternoon, with traffic heavy outside, and everyone anxious to get home, Joe Newbie pipes up “Hang on, we didn’t check in and kick off the weekend regression” and the response from everyone else is (a non-ironic) “Darn! Thank goodness you spotted that Joe!”, then you may be heading in the right direction.

Second, related to the above, Atul Gawande reports on significant developments in this area in hospital medicine. In fact it was Atul’s books that first alerted me to the idea that organizational habituation may be a thing worthy of a name. I strongly recommend first his “The Checklist Manifesto”, and then his broader “Better”. I suggest that order only because despite me saying there are no easy answers, Gawande’s checklisting may come close to that. In particular, checklisting has proven useful to empower nurses and junior medical staff to challenge the authority of hitherto unapproachable surgeons, to the betterment of performance all around. A particularly interesting point he makes is the usefulness of “positive deviance” (PD) when trying to transform groups of people. The phrase, not coined but probably given wider exposure by Gawande, refers to groups of people, within a larger group, who perform in some way at odds with the main group but in a way that is beneficial. An important aspect of such groups in terms of organizational habituation is that they can act as fruitful “seed points” from which to spread the beneficial behaviour. As consultants, we see this at work where it’s clearly much easier to help a small group already embracing a new behaviour to spread their wisdom throughout a client, as opposed to us arriving on parachutes to tell everyone to Stop What You’re Doing And Listen To The Consultants! Even purely within a firm, I suspect a key tactic is for management to figure out ways to be able to hear of such PD behaviour, and to develop at least a tolerance for it. That goes, however, to deeper cultural issues than I can cover here.

Finally, a negative pointer if you will. Almost every business talk I’ve been to about improving some aspect of a firm talks about the “what to do” where the target is one of the common areas of business operations — finance, HR, innovation, and so on. Having been working now for over 25 years, almost half of which as a CEO, I don’t think I’m being immodest to say that the chances of someone telling me something in those areas that I haven’t heard before is not high. Despite that, I remain far from the perfect CEO. In other words, just as with the overweight cheesecake eater, the problem for the beleaguered, battle-worn CEO is not that her firm doesn’t do X, it’s that her firm doesn’t yet “want” to do X. A part of the solution is, I propose, the organizational equivalent of habituation. The solution to getting a firm to do X is rarely, even if wrapped up in cheesy fighter pilot analogies[2], merely to tell them that they should do X.

*** ADDED 2014-04-11 13:50***

Funny how despite hunting around prior to writing something you find nothing, and only afterwards get some leads. Where “organizational habituation” picks up very little on Google, “organizational habits” does. Here’s the transcript of a 2012 podcast interview with Charles Duhigg, author of the well-known The Power of Habit: Why We Do What We Do in Life and Business.” He speaks about habits at the personal and organizational level. Still no silver bullet answers mind, but at least the problem is being recognized. (Although in that case, why do so many business speakers appear to ignore it?)

[1] I have two simple test for diet books in a store. First, I pick up the book and look at the cover. If it shows a picture of someone so ripped and chiseled they clearly have never been overweight in their life, I return the book to the shelf. Weight control lives in the mind, not in the body, and unless a person has fought and won their own mind battles I very much doubt they understand and can help my problem. If it passes that first test, I then split the book around 3/4 of the way to the end and open it. If I find recipes, I return the book to the shelf. My thinking — backed now by experience — is that the recipes are designed to be in the range of 1250 to 1750 calories per day, being the typical range people need to consume to lose weight. In other words, no matter what the front 75% of the book has said, in fact it amounts overall to yet another “all you have to do is consume fewer calories than you emit”, and that phrase fails in its first “all you have to do”. There is nothing “all“, “merely” or “simply” about behaviour change.
[2] That is a link. It is absolutely not a recommendation.

The Entrepreneur’s Creed

Numbers and numerical analysis aren’t my favourite part of running a business, but they’re not far off it. I wrote the following as a reminder, advice to a young entrepreneur if you will, of the importance of getting to know your numbers. Based, of course, on Major General William H. Rupertus’s famous lines.

The Entrepreneur’s Creed

These are my numbers. There are many like them, but these are mine.
My numbers are among my best friends. They are part of my life.
I must master them as I must master my life.

My numbers, without me, are useless. Without my numbers, I am useless.
I must keep my numbers true. I must use them to turn confusion into clarity, and complexity into simplicity.
I must overcome complexity before it overcomes me.

My numbers and I know that what counts in business is not the calls we make, nor the noise and smoke of our marketing.
We know that it is the value delivered to customers that counts. We will deliver value.

My numbers are human, even as I, because they are part of my life. Thus, I will learn them as a soul-mate.
I will learn their weaknesses, their strengths, their parts, their deeper levels, their ratios, their essence.
I will keep my numbers precise and ready, even as I am ready and diligent. We will become part of each other.
My numbers and I are the defenders of my team and my company.
We are the masters of our field. We are the heart of success.

On Genius, and Sitting Still

Continuing with the theme of the need for sustained focus in achieving mastery, Freeman Dyson’s recent review[1] of Ray Monk’s new biography of Oppenheimer contains an interesting and somewhat sad snippet about the influential Los Alamos lab leader’s relative achievements in science versus bomb-making administration:

The real tragedy of Oppenheimer’s life was not the loss of his security clearance but his failure to be a great scientist. For forty years he put his heart and soul into thinking about deep scientific problems. With the single exception of the collapse of massive stars at the end of their lives, he did not solve any of these problems. Why did he not succeed in scientific research as brilliantly as he succeeded in soldiering and administration? I believe the main reason why he failed was a lack of Sitzfleisch. Sitzfleisch is a German word with no equivalent in English. The literal translation is “Sitflesh.” It means the ability to sit still and work quietly. He could never sit still long enough to do a difficult calculation. His calculations were always done hastily and often full of mistakes. In a letter to my parents quoted by Monk, I described Oppenheimer as I saw him in seminars:

He is moving around nervously all the time, never stops smoking, and I believe that his impatience is largely beyond his control.

If Dyson is right in his interpretation of Monk, it seems to suggest that an Oppenheimer today would receive a diagnosis of Attention Deficit Disorder. Of course, few would argue that Oppenheimer was anything other than a brilliant, effective, and important contributor, so did his lack of Sitzfleisch actually constitute a problem? Perhaps he succeeded in soldiering and administration to the extent Dyson acknowledges not in spite of but because of the very haste that hurt his mathematics. Perhaps a more focused scientist would have produced more physics but, crucially for the war, less fission. But Dyson’s point is, I think, one of tragedy: a great mind that could have been greater; depth that could have been deeper. Judging by the review’s closing comments, it sounds like Oppenheimer may have agreed:

Late in Oppenheimer’s life, when he was sick and depressed, his wife Kitty came to me with a cry for help. She implored me to collaborate with Robert in a piece of technical scientific work. She said he was no longer doing science and he needed a collaborator to get him started. I agreed with Kitty’s diagnosis, but I had to tell her that it was too late. I told her that I would like to sit quietly with Robert and hold his hand. His days as a scientist were over. It was too late to cure his anguish with equations.

[1] Dyson, F. (2013, August 15). Oppenheimer: The Shape of Genius. [Review of the book Robert Oppenheimer: A Life Inside the Center, by Ray Monk]. The New York Review of Books, p. 19.

How High Rate Professional Services Can Save Your Clients Money

How much does effectiveness cost? For example, how much per hour should one pay for a good accountant, or lawyer. My field is programming and engineering, so I’m going to talk in those terms. But it applies to almost all billable hour professionals.

So, we know that at very low costs, you may get someone who is just utterly useless for your purposes. They may not be fundamentally broken — perhaps they’re a basically smart but inexperienced graduate; we all were once — but while they’re at that early stage of learning they are barely worth the paper with which you have to regularly wipe their runny noses. However, the good thing is they improve quickly from those tenderfoot days. So start spending more, to buy more experience, and you get a little bit of improvement. Spend yet more and the increase gets even bigger. Something like this:

Now it doesn’t really matter what parameter we’re using for “contribution”. It’s just some overall measure of “rate of effective output”. I say “effective” because we all know that something as crude as, for example, “lines of code” is rarely, on its own, a useful measure in software. But despite the difficulty in putting a precise number on it, effectiveness is a real thing, it varies from person to person, and, all else being equal, it increases with time served.

The next thing to notice though is that while effectiveness versus hourly rate is superlinear at low hourly rates, the effect eventually slows. Effectiveness versus rate can even become sublinear at higher rates. Like this:

The curve shown is a sigmoid. It has the general form:
y = 1/(1 – e-x)
Now I’m not claiming that cost/performance of engineers exactly matches that function, but it is roughly in line with experience. For any given problem, while it’s possible to spend too little per hour on a programmer, it’s also possible to spend too much. If all you want is some mid-range Perl to drive a website, you probably don’t want a complete beginner no matter how cheap, but nor do you need Larry Wall, nor Larry’s hourly rate. But notice that “for any given problem” qualifier. That brings us to the third point about effectiveness and rate. Exactly where on the actual hourly cost and actual hourly contribution axes our curve sits depends on the kind of programming or engineering (or legal or accounting) problem at hand. So really we have a family of such curves, each one representing a given level of difficulty of work. It could look a bit like this:
Now this is where it starts to get interesting. The key point in all this is seen when we look not at the cost per hour of the programmer, but at the total cost for the whole project. Except for situations of troubled cash flow, the hourly rate is not important. It is total cost that matters. And even if cash flow is an issue, forcing the project to use cheaper-by-the-hour resources, it is still useful to know to what extent that choice inflates the final total cost.
The graph below shows just this. It is the reciprocal of the sigmoid, with the hourly rate axes based on real rates and the Y axis, showing normalized total cost. The actual numbers are irrelevant; what is key is the shapes of those curves.
The crucial point to notice is that the low point on each curve does not correspond to the lowest hourly rate. Because of the underlying “S curve” of the sigmoid, showing increasing “returns” at the low end of hourly rate, and diminishing returns at the high end, there is a sweet spot of hourly rate. Go above that, and you are over-engineering your labor and spending too much. But go below it and just as surely you are going to spend more than you need to.
The trick then — and this should be a central part of the discovery process in selling technical professional services — is to delve deep enough into the project to decide on two simple things:
  1. How tough is the proposed work? This lets the client and you, together, identify which of the family of “Optimal Hourly Rate” curves applies to their project
  2. Does your your firm have resources to offer at the low point on the chosen curve?

If in investigating those you find that the optimal resource is at a cost far below where you operate, you — remember, this is “Professional” services — should be telling your client that you are not the right solution. On the other hand, if you do decide that you are in the sweet spot and they still insist on going to someone cheaper then, provided you have built sufficient rapport in your relationship with your client, you are only doing them a service to try to explain (tactfully) that if they do they will most likely end up spending more overall.

One final point. Notice the asymmetry in the final curves. Total cost increases more quickly as you go down in rate, away from the sweet spot, than it does when you go up in rate away from it. So buying cheap can be more damaging than buying expensive. But in fact, buying cheap is worse even than that. One of the biggest dangers for a project is being late to the market. Even if it still makes it in time for some profit, the damage from missing the core of the market window can be devastating. Labor that is too cheap not only costs more, but it takes a lot longer in time to complete the job. So if you have to err, it makes sense to err on the higher side of rate and capability, than on the cheapside.

[A version of this post appeared in an earlier blog]

Let’s Talk About Me!

Digging around some old emails I came across an interview I did a few years ago for Hi-Tech Scotland Magazine (now defunct apparently — hope it wasn’t my interview that killed them!) Thought I’d post it here, with a few editorial updates where needed. It’s in the typical question and answer format.

HTS: Describe your current role.

TK: I’m the overall manager of Verilab. For the UK parent, that’s the Managing Director. For our German subsidiary, Verilab GmbH, I’m the awesome-sounding Geschäftsführer. And I’m CEO for the US subsidiary, Verilab Inc. In fact though, all three company entities form one team and I run that from Austin, TX. [Ed: we now also have Canadian teams in Ottawa and Montreal, under the fourth in the group, Verilab Canada Inc.] In theory, the most important part of my role is really, at the risk of sounding pompous, “Keeper of the Vision”. My team work on very tough technical problems across Europe and the US, in projects that are often rapidly approaching key market windows and so are short on time and high on pressure. My job is, in the midst of all that stramash[1],  to keep in all our minds what we formed Verilab for – to be the “McKinsey of VLSI engineering”.

In practice though, I do what all small-firm CEOs do – anything and everything that needs done. Because we’re a services firm, we bump into lots of government rules and regulations. I deal with those. I plan and monitor financial performance. I am constantly building and developing the operational infrastructure – HR, Engineering, IT, and so on – to allow us to continue to grow. And so on. It’s busy!

HTS: When did you first become interested in technology as a career?

TK: Well, when I was three, I’m told I was hauled off a chair while trying to “fix” the Christmas tree lights with a screwdriver. And in primary five [Ed: US 4th grade] I announced that my ideal career was “Quantum Mechanic”. Basically, I’ve always been interested in technology. I did hover between pure science and engineering for a while, and still harbour a secret desire to do physics. But as soon as I discovered microelectronics, I was so fascinated by those wee black packages on green circuit boards, I decided that’s what I’d be working on.

HTS: Broadly speaking, from your own perspective, what sorts of technologies are likely to prove important over the next 10 years?

TK: Anything to do with communication – hardware and software. Every time I fly, I’m frustrated that I can’t use my cellphone or connect to the internet. That’s going to change. [Ed: Done!] I now have GPS in my cars, but it’s annoying that they aren’t linked to something like Google maps, or updated in real time. That’s going to change. [Ed: Done!] My company has people at clients from California, through Texas, to Edinburgh, and on to Dresden. Despite all the current technology, I still can’t get easy-to-setup, high def video conferencing with my teams, from wherever each person is. That’s going to change too. [Ed: Still not done :-( Come on video people: I have pain, I have budget, I am the decision-maker. Give me a call!] I believe that the difference between what I knew as IT as a kid (the build-it-yourself ZX-81), and what I see today, is just a small fraction of the difference between what the kids of today are seeing and what they will see in thirty years. Even the next ten is going to be awesome. And a huge part of that difference will be not from increased computation per se, but from increased communication.

HTS: Was it always your ambition to work overseas?

TK: Overseas in general? Not really. But I’ve always been a fan specifically of the USA and always wanted to spend some time there. Before moving, I really bought the message of their Lockean philosophy of respect for life and liberty and private property (the “pursuit of happiness” bit always struck me as a bit superfluous when you have the others, but that may just be my inner Scot speaking). And I also believed that precisely because of that philosophy, they were a much more productive nation in business than most of the rest of the world. Now that I have direct experience of the differences between Europe and the US, I think I can confirm that US folks are indeed often more productive in general [Ed: they certainly take fewer vacation days]. But, unfortunately, I’ve realized that on the philosophy of freedom side of things, there is a bit of a gap between the ideal of their Constitution and what’s happening day to day. Sometimes I try to remind them of that :-)

HTS: Has being Scottish ever been an advantage (or disadvantage) to you elsewhere in the world?

TK: It’s been both. In general, being Scottish – or, more precisely, having a Scottish accent – is a big plus. People often go all sentimental when they hear my accent and say something like “Ye know, ah’m from Sco’lan’ too. Ye ken?” Which typically means, their great-great-great-granny came from Dumbarton via Ellis Island. Also, Scotland is one of those places that everyone would just love to visit. So being a native Scot carries a lot of kudos.

The downside though is, as a thoroughbred Scot, having been born and brought up just outside Paisley, I think I carry some of what Carol Craig described in “The Scots’ Crisis of Confidence”. There’s something about having lived and breathed the cauld rainy air for 40 some years, and having absorbed a culture that sees any display of wealth as ostentatious, that runs deep in a person and is hard to shake. Even today, having grown Verilab to an elite international consultancy of increasingly high reputation, there’s still sometimes a wee voice inside that can say, “Here you, don’t get too big heided”.

HTS: Do you have any remaining ambitions?

TK: To really understand Wittgenstein’s Tractatus Logico-Philosophicus.

[1] stramash [strəˈmæʃ] Scot

an uproar; tumult; brawl

Are Engineers Creative?

Are we creative, we engineers and programmers? I think fewer of us are than we think, but more of us need to be than are (although it’s not essential that we all are).

It’s probably useful to define creativity, because it could be argued that engineers — people who “engineer” things — are creative by definition. I don’t think so. Creativity is the ability to make something, change something, or do something that creates positive surprise in one’s peers. It goes above and beyond just “the new”. It must elicit, from those who appreciate and understand your field, an appreciative “Huh!?”

Now it’s arguable I’m describing mere Regular Creativity, the kind that pretty much all of us could achieve if we wanted to. I accept that there may be a High Creativity, such as that of van Gogh, which is, by it’s nature, so surprising that even the peers of a High Creative (pun not entirely unintended) will not recognize the merits of the new work until long after its birth. But if you genuinely feel you may be a legend as yet unrecognized in your own lifetime, I haven’t much in the way of advice for you. I’ll just wish you well, and offer only the observation that the reason many of those who live their lives unrecognized as legends is simply that they aren’t.

To the rest of us, we need to understand that there’s a difference between copying and creating, and to accept that for many if not most of us what we do is the former. It’s tempting to think that because every day we sit down in front of our editors and produce code that no one else has written, that we are creating. But really, where did that code come from? Sure, we don’t copy it word for word, line by line, or even function by function. But it didn’t really come from us. Legally, we — or more likely the corporation that employs us — can stake a claim to ownership, but that’s not the kind of novelty we need if we want to call ourselves creative. The law doesn’t get to decide if we are are or aren’t. Other creatives do. And they do it by kudos — by a fist bumping, high fiving, noddingly approving “Kewl!”  If that’s missing, then so are we with respect to our creative mark.

Of course, creativity doesn’t have to be entirely new. Most creation is the combining, or building onto of prior art. That’s one of the major downsides of the tough “intellectual property” system we see arising all around us, where such combining and building upon is heavily restricted. But where it’s possible, there’s no shame in taking (while acknowledging) the work of several others, and then combining in a new way that produces new value. As I say, it may not be the higher form of creativity; it’s partly in an attempt to cultivate that higher form that schools such as SCAD spend the first year or so tearing down new students’ preconceived ideas about what constitutes art. Only once they have unlearned to colour within one set of lines are the developing creatives able to see that there needn’t be any lines, or to ask “What is a line anyway?” But even modestly, quietly, and incrementally; we can still create. It doesn’t have to rock the entire world. Besides, modest, quiet, and incremental changes may in themselves be part of the path to the creative heights.

But why is this important? Because if we, we engineers and programmers, want to create — to produce the “Huh!?” — there are things we can and should do to make it happen. For a start, we can learn from those who more commonly receive the name “creatives”: artists, writers, composers; also, designers beyond our regular “chip design” sense — those who close their eyes, open them, and then create artefacts that can, if we are careful, enhance lives. Read about them, learn from them and see that, ultimately, we and they are the same people. At our heart, we build because we love to build, the best of us code because they are poets. Whether it’s sunflowers in an old pot, or charges crossing a precisely constructed semiconductor junction, we first envisage, then mould a world.