We spend a great deal of time and resources seeking balance in every aspect of life and work by spontaneously enlisting ourselves in impossible missions that are exhausting and demotivating.
In this note, which talks about strategy perhaps much better than other technical pieces I have written, I invite you to take an unusual and fascinating perspective where you find that the very lack of balance is what defines progress.
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In perpetual motion
In 1770 a Swiss watchmaker, Abraham-Louis Perrelet, added an oscillating half-moon to the mechanism of his pocket watch, thus inventing the first automatic mechanism in the history of watchmaking. A 15-minute walk was enough for a full recharge.
Have you ever seen the elegant movement of this element? That swings effortlessly from one half of the clock to the other? Its oscillation winds the mainspring that gives energy to move the gears that, in turn, move the hands.
If this small oscillating weight were in balance, thewhole clock would be useless.
It is a beautiful metaphor that should make us think about how important it is to design our life and work to evade balance and remain constantly in motion.
Let’s regain the charge.
Too little to see the effects
Patience to see the effects materialize is all in the strategy. you have to train yourself to think in terms of months, years or decades instead of just days or weeks to achieve your goals sustainably.
But starting slowly, one small step at a time, is an excuse we accept for not being brave enough to shake things up. No engine starts without a spark.
Intended, extreme, revolutionary efforts for short periods of time will help you appreciate results so motivating that they will give you the charge to keep doing it for long periods of time.
Unbalance completely on the other side. Without fear of falling. Vertigo is an invitation to make unique choices that could lead to success that pays you back even with interest, or failure so spectacular that you cannot ignore it.
What is certain is that you have never seen anyone wish to end a game in a tie. There is no concept of a balanced victory. While losing will not be particularly painful, whenever you have a doubt, the temptation to back out may be too tempting to resist.
Working on your goals with a safety net makes you lazy and less likely to face challenges with more energy than anyone else would invest. Try this approach:
- Identify a few things to focus on
- Push on these areas so hard that no one will be able to reach you
- become so strong that you can sustain these efforts, effortlessly, longer than anyone else.
In private life
Work and life balance
I don’t think there is a true work-life balance. Work is an integral part of life itself. Life should be designed to accept work as an inseparable component, not as an activity that takes away valuable time.
The dangerous balance. The fear of losing security and the need to meet commitments already made forces us to think that there is only one way to manage leisure time and work obligations. We feel unbalanced on the professional front when in reality we are in a precarious balance between being content with the existing and taking risks for change.
How to lose balance. Anyone imagines a different life: with renewed timing, places, and habits. Would you be willing to create a prototype of this new life-professional harmonization, if only for a few weeks, and find out if the world stops or if a different reconciliation is possible?
Career and personal development
Many want to have a successful career, but at the same time they want to devote time and resources to their personal development, such as learning new skills, pursuing interests or spiritual growth. A solid employer value proposition and a great employee experience can help attract and retain talent.
The dangerous balance. The concept of a career has changed a lot in recent years, but one thing is still constant: If you stay with the company long enough, without doing too much damage, sooner or later a promotion will come. But what is the cost of boredom? And which one has modeled its interests on attending training programs useful to your function and not to your spirit?
Low employee engagement and employee satisfaction can undermine employee productivity and well-being.
How to lose balance. For some, security is too valuable an asset to put at risk. But let’s be honest, agile working, smart working and telecommuting allows everyone to experiment with alternative paths in incongnito mode, as long as they don’t come out too much, and that very thing can sometimes bring frustration.
I don’t want to incite anyone to do double work on the sly or to quit their jobs to follow their passions in a mindlessly optimistic way.
But it is increasingly common for innovation in the company to come from the most jaded employees. Zoom was born out of Cisco’s CTO being asked to stop being distracted by a $9 product. Just to name a famous one. So instead of fighting this innate entrepreneurial ability, why not support it and integrate it into everyday work.
I think a very smart thing for companies could be to have outing-professional programs with even ways to support these initiatives if they are useful to the core business and the employee themselves. Those who produce more value should be rewarded accordingly, thereby enhancing the company’s reputation as an employer.
For you. If you were offered the chance, would you be willing to work harder to try a new path within the company?
For corporate decision makers. Would you be willing to discover, protect and support the innovation that is already there?
Mind and body
If I only have 45 min free: better to train the mind or the body?
The dangerous balance. We try to balance a jog, or a yoga class every now and then with a few pages of a book because this balance gives meaning and dignity to our efforts and makes us look neither like just pumped-up, toned-up fools nor like those out-of-shape geeks.
The result is that we never finish that book. And the belly remains there.
How to lose balance. Prove to yourself that you can achieve a goal by a date that is close to your heart.
Getting in shape for a vacation or special event.
Or finish reading those ebooks you downloaded, or commit to applying to your business the concepts in a book that can help you work better (who said MAKE PROGRESS with OKRs?).
Could you make room in your schedule and balance your time on this short transformative effort?
In the company
Growth and profitability
Companies must balance investment for future growth (e.g., R&D, expansion, marketing) with the need to generate short-term profits to sustain operations and satisfy shareholders.
The dangerous balance. Focusing only on what brings liquidity in the short term without having strategy management systems in place to identify signs that could anticipate a crisis such as new competitors, changes in commodity prices, algorithms, or regulations.
Balance is there until it is gone.
How to lose balance. Devote time and budget to doing exploiting and exploring. These are two key strategies that companies can adopt to achieve success and remain competitive in the marketplace.
Exploitation (Exploiting). Exploitation focuses on optimizing and improving the company’s existing activities and products. This approach aims to maximize the efficiency and profitability of current operations by making the most of the skills, resources and knowledge already acquired by the company.
Examples of exploitation:
- Improve the quality of existing products
- Reduce production costs
- Optimize business processes
- Expand presence in current markets
- Strengthening the company’s core competencies
Exploitation is important because it allows the company to capitalize on its current resources and skills, generating profits and maintaining a stable position in the market.
Exploring (Exploring). Exploration, on the other hand, focuses on finding new opportunities, innovative ideas and untapped markets. This approach encourages the company to step out of its comfort zone and experiment with new strategic directions, products or technologies.
Examples of exploration:
- Develop new products or services
- Enter new markets or market segments
- Adopt new technologies or innovative processes
- Forming partnerships or acquiring other companies
- Investing in research and development activities
Exploration is crucial because it enables the company to stay ahead of the curve, anticipate market trends and create new sources of value for customers. However, it also involves greater risks and uncertainties than exploitation.
A company’s long-term success depends on the synergy between exploitation and exploration. Focusing solely on exploitation can lead to stagnation and a lack of innovation, while over-exploration can waste resources and undermine short-term profitability.
But if historically the company has done only one or the other then it is time to go all-in, briefly, one way or the other and rebalance investments by momentarily unbalancing efforts to create momentum.
Innovation and business as usual
One of the biggest mistakes in strategy management is to mix these two aspects into one big corporate meatloaf. This is how they are different.
Different mindsets and approaches. Innovation requires a mindset that is exploratory, open to risk and future-oriented. It requires thinking unconventionally, challenging the status quo and embracing uncertainty. On the other hand, business as usual focuses on efficiency, predictability, and constant improvement of existing operations, that is, what works.
Resource allocation. Innovation requires significant investment in time, money and human resources. These investments can be risky and do not guarantee an immediate return. Business as usual, on the other hand, aims to optimize the use of resources to maximize short-term profits. It is the place with the highest return on investment.
Risk management. Innovation involves a high level of risk and uncertainty. Many innovative ideas may not be successful or take years to commercialize. Business as usual, on the other hand, operates in a more predictable environment and aims to minimize risk. Teams cannot have the same rules in one or the other environment.
Culture and incentives. Innovation requires a corporate culture that encourages creativity, experimentation and acceptance of failure. Business as usual, on the other hand, rewards efficiency and error reduction. These are also important aspects to consider when hiring.
Timelines and metrics of success. Innovation requires a long-term perspective and different success metrics, such as adopting new technologies or creating new markets. Business as usual focuses on short-term metrics, such as quarterly profits or current market share.
The dangerous balance. In business, there is a risk of viewing time spent on innovation as a reward or a diversion, rather than as an activity critical to the long-term success of the organization. You reach the balance of investing enough already…
Innovation may be perceived as a more “fun” or “creative” activity than routine activities. This can lead to viewing it as a kind of reward or entertainment for employees, rather than as a strategic and crucial activity for the future of the company.
If innovation is not integrated into the company’s overall strategy and not supported by leadership, it can be seen as a marginal activity or even a distraction from the main priorities.
The lack of clear metrics and goals for innovation may contribute to this perception. If there are no specific performance indicators to measure the success of innovation activities, it can be difficult to justify the investment and time devoted to these activities.
How to lose balance. Work in sprints that lead to intense focus on achieving a particular result. Select a challenge, and identify a budget and a team that can accomplish a specific mission and most importantly, that can tell others about the accomplishment.
Marathon runners also prepare for race day by training in acceleration.
Control and delegation
According to Andy Grove, in his book “High Output Management,” the level of delegation and control to be applied depends strictly on the talents and abilities of the people involved. This concept is fundamental to maximizing an organization’s performance and success.
Grove points out that talented, competent and motivated people require less direct control and can be delegated more autonomy. These people have demonstrated that they have the knowledge, skills and determination to make effective decisions and complete assigned tasks. Granting them more freedom of action and responsibility makes them more productive and engaged.
On the other hand, people who are less experienced or have limited abilities need more control and supervision. In these cases, it is important to provide closer guidance, set clear goals, and closely monitor their work. Tighter supervision not only ensures that the work is done correctly, but also that these people can learn and improve their skills over time.
Grove emphasizes that the level of delegation and control is not static, but must be adjusted continuously according to circumstances and individual performance. As people gain experience and demonstrate their abilities, they can be delegated more responsibilities and enjoy greater autonomy. Similarly, if an individual’s performance declines, it may be necessary to temporarily increase the level of control and supervision.
This flexible and adaptive approach to delegation and control allows the best use of each individual’s talents and abilities, maximizing the overall performance of the organization. At the same time, it ensures that less experienced people receive the guidance and support they need to develop their skills and become more autonomous over time.
The dangerous balance. If a management, top-down, command-and-control style has always worked, why change it? When companies reach an apparent equilibrium, the opportunity to evolve is also reduced.
There is a risk of becoming rigid and resistant to change. Lack of flexibility and adaptability can lead to missed opportunities and falling behind more agile and innovative competitors. Maintaining an outdated management style may create an illusion of stability, but it actually undermines the company’s ability to evolve and remain relevant in the long run.
How to lose balance. Try borrowing a key concept from OKRs: “centralized decision-making and decentralized execution.”
Centralized control ensures that strategic decisions and key priorities are aligned with the overall vision and goals of the organization. Having a central control point makes it possible to maintain a consistent direction and avoid fragmentation or dispersion of resources. Although too much control can lead to crippling bureaucracy and a lack of flexibility and agility, an ingredient that should be dosed sparingly.
Decentralized delegation enables different business units and teams to make decisions and act independently within their areas of responsibility. This promotes empowerment, responsibility and the ability to respond quickly to local challenges and opportunities. At the same time, excessive delegation can lead to a lack of coordination and decisions that conflict with the overall goals of the organization.
The concept of “centralized decision-making and decentralized execution” aims to combine the advantages of both approaches. Strategic decisions and key priorities are made centrally, ensuring a consistent vision and alignment with overall goals. However, the execution of these decisions is delegated to local teams and business units, which have the flexibility and autonomy to adapt strategies to their specific circumstances and contexts.
In this way, a balance is created between control and delegation, taking advantage of the strengths of both approaches. Centralized control ensures consistent direction, while decentralized delegation promotes agility, empowerment, and the ability to respond quickly to local challenges.
Could you identify a single number, the North Star Metric, to measure strategy and build a proxy system, based on numbers, in just 90 minutes? Find out how here.
