Tag: Strategic Thinking

Introducing SCAN; How to Spot the Hidden Complexities that Keep Us Stuck

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When you’re stuck, you need insights and options. Insights help you see your situation in new ways. Options help you restore confidence and momentum.

The Metal Detector versus the Vacuum Cleaner

We never get complete data about the world around us. Even though our senses constantly interact with information about the world, we can only pay attention to a fraction of the available data. At this moment, clothing, a chair, the floor, perhaps a device you’re holding all create sensations. Until this sentence redirected your attention, it’s unlikely you noticed the sensory data available to your skin.

We imagine that we move through the world like a vacuum cleaner picking up all the information in our path. In reality, we operate more like a metal detector. We are programmed to notice some things, and we sweep past a lot of other things that just don’t register. Some of the things we don’t notice might become the source of the insights and options we need.

SCAN

Remember that moment in the original Matrix movie when Keanu Reeves sees the Matrix? Reeve’s character Neo learns to perceive his world as cascading ribbons of glowing binary code. The true complexities of the matrix are revealed. Neo gets transcendently kissed, pummels Agent Smith with one hand behind his back, and rocks a pair of iconic sunglasses. Using the SCAN tool is less dramatic. On the plus side, you don’t have to be ‘The One’ to take advantage of disregarded or overlooked information.

SCAN stands for: Structures, Context, Assumptions, and Needs

  • Structures are the systems, processes, norms, and routines that define the environment in which we operate. Meeting norms and incentive systems are examples of structures.
  • Context describes the environmental factors outside the boundaries of our daily activities and responsibilities. New technologies and governmental regulations are examples of context.
  • Assumptions are the underlying beliefs of the individuals who want to make a change. Unspoken beliefs that our solution must be cost-neutral or that we can’t alter the manufacturing process are examples of assumptions.
  • Needs represent the underlying desires and motivations of people who might play an influential role in changing things for the better. A desire on the part of new-hires to have more autonomy at work or a growing preference among customers to do business with socially responsible organizations are examples of needs.

In the image below you see the four elements of SCAN represented as quadrants along two dimensions. Structures and Context provide information about the environment in which we operate. Assumptions and Needs provide information about the mindsets and motivations of people connected to our situation.

The two SCAN columns differentiate between elements that we can influence and elements that we can’t influence but may potentially influence us. We have the ability to change our structures and our assumptions. On the other hand, context and needs are beyond our control.

For example, our context now includes greater political and media attention on issues of racial justice. Heightened needs for fairness and equity have become a priority. The external influence of context and needs are bumping up against longstanding organizational assumptions about who deserves power and authority. Many organizations are beginning to reimagine their hiring, performance management, and promotions structures.

SCAN can help you avoid being blindsided by external forces that disrupt the status quo. When leaders and their teams routinely SCAN for insights and options, they notice opportunities sooner and become more adaptable to change.

SCAN can help you avoid being blindsided by external forces that disrupt the status quo. When leaders and their teams routinely SCAN for insights and options, they notice opportunities sooner and become more adaptable to change.

The other important thing to notice about the horizontal axis is that the things we can influence (Structures and Assumptions) are precisely the things that maintain stability. It’s more comfortable to preserve the status quo and operate according to our habits and routines. Stability makes it easier to scale up. Stability makes it easier to orient and train new-hires. When we maintain assumptions and structures, we can make improvements through efficiency and productivity. But, as the world continues to become more complex, uncertain, and turbulent, stability creates dysfunction by keeping things the same when what’s needed is change.

The things we can’t influence (Context and Needs) are precisely the things that create opportunity. Options and possibilities emerge from changes in society, technology, regulations, scientific discoveries, and generational priorities. We can look to what’s changing in society and the marketplace for a new way forward. At the same time, the pursuit of opportunities creates instability that can feel risky or threatening.

Let’s have a look at how the SCAN tool might help us think differently about a common challenge facing today’s organizational leaders.

Using SCAN to Improve Online Team Meetings

Keep in mind that conducting a SCAN does not give you an answer. Revealing hidden complexities is about widening the search area to increase the odds of discovering insights and options.

Suppose like a lot of leaders these days, you’re struggling to keep your distributed team engaged during virtual team meetings. You’ve made a few attempts at switching up the meeting processes, but things haven’t improved. You can tell that people are bored or distracted. You suspect that they are multi-tasking, or perhaps sending private, unhelpful chat comments to one another.

Insights and options will continue to be elusive unless you’re willing to think through the hidden complexities. It’s likely that some unexamined habits carried over from the weekly face-to-face update meetings need to change (Structure). There are probably new software applications and ways of working being introduced that you haven’t explored (Context). Perhaps some deeply held beliefs about meetings need to be challenged (Assumptions). Finally, investigating with empathy what really matters to people might help you figure out whether or not team meetings serve those who attend (Needs). The image below captures questions worth discussing with the team related to each dimension of SCAN.

How Do We Get Started? versus Where Do We Go?

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Consider your immediate reaction to two different ways of describing the activity of setting direction:

  • Defining a strategy
  • Choosing a way forward

If each of the above activities defined the purpose of two different meetings, which one would you rather attend?

To me, defining a strategy raises the stakes; it suggests that we seek an answer. Choosing a way forward acknowledges that there are many ways to go and our task is to pick one. A way forward can be abandoned in favor of another path without much fuss. An abandoned strategy feels like a failure.

As someone who has studied strategic thinking and facilitated my share of strategic planning exercises with organizational leaders, I want to go public with a recent heretical conclusion I’ve come to: Strategies are worthless.

To be clear, I’m not saying that formulating a strategy is a waste of time. Thinking together with other stakeholders whether on behalf of defining a strategy or as an exercise in taking stock helps build commitment and ownership. The mistake is presuming that the product describing the group’s conclusions matters as much or more than the process of reaching the conclusion. As Dwight D. Eisenhower famously said, “In preparing for battle I have always found that plans are useless, but planning is indispensable.”

Strategies in my experience suffer from a mythology that the daily activities of managers must conform to a set of strategic do’s and don’ts as if strategies were commandments rather than choices. At best, strategies inform investments of time and money. However, once the investment decisions have been made the organizational system and the marketplace react. Suddenly, the assumptions under which we defined our strategy no longer pertain. You can plan your next few moves in a game of Chess, but if your opponent responds in an unpredictable way, your strategy becomes useless. In today’s business environment unpredictable conditions are the only thing we can be sure of.

Essentially, strategies are marketing statements that most often put a positive spin on what you are already doing. Organizations don’t pause like an army before a battle waiting for a plan of attack. Everyday choices are being made that lead to outcomes that hopefully lead to better options. Your best bet is to develop a strategic question that will orient and focus the activities of the organization. A question that will inform what leaders pay attention to when making decisions and assessing outcomes.

Organizations and teams need a shared set of working hypotheses from which to choose a way forward; they don’t need (and almost never defer to) a strategy. Finding a way forward depends on asking thought-provoking questions before you get stuck. Here are four questions based on the Unstuck Minds Compass that can be applied in the flow of work rather than at some fictional starting point.

What is changing?

To ask, “What is changing?” is to zoom out and conduct Contextual Inquiry. In traditional strategic thinking terms, investigating what is changing is similar to conducting an environmental scan. Contextual Inquiry focuses the environmental scan on emerging trends and potential disruptions. By asking about contextual changes, we force ourselves to evaluate our assumptions. An adaptive organization does not wait for the strategy offsite to consider whether an emerging technology makes its product obsolete.

What do we take with us and what do we leave behind?

In light of what you discover about what is changing, use Critical Inquiry to zoom in and assess what will continue to work and what can be suspended. Consider what aspects of the current situation people find satisfying. Now consider the subset of the satisfying activities that contribute to your future customers’ future needs. Let go of the rest. 

Whose needs should we organize around?

In conjunction with Critical Inquiry, use Collaborative Inquiry to clearly define who benefits from what your organization produces and specifically how they benefit. Given what is changing, who are your future customers, clients or communities and what will be different about their needs in the future?

What question will define our path forward?

Note what is changing and compare it to what you’re currently doing and for whom. Now use Creative Inquiry to find the question that will reorient the organization’s attention.

By the way, if members of your organization, your board or your investors still insist on a clear statement of your strategy, you can always do what most organizations do. Retrospectively review what has worked so far and declare that you will do more of it and even better.