Jeff DeGraff - Competing Values Framework Profile - Blue (Part 2)

Summary

In this engaging talk, Jeff DeGraff explores the distinct characteristics and cultural nuances of the 'Blue' profile within the Competing Values Framework. DeGraff, renowned as the 'Dean of Innovation,' dives into the aggressive and performance-focused nature of those operating within this framework. He humorously details how 'Blue' individuals and firms emphasize shareholder value, quick decision-making, and high competition, often likened to pirates on a conquest. Through various anecdotes, DeGraff sheds light on the challenges and advantages of such an approach, highlighting the tension between short-term success and long-term sustainability, ultimately advocating for constructive conflict to drive hybrid solutions.

Highlights

• Jeff describes the 'Blue' ethos as centered around power, competition, and quick results. 🌟
• The notion of 'Blue' meetings depicts them as fast and intense, with decisions made swiftly. 💨
• 'Blue' organizations often operate like pirates, focusing on growth through acquisition. 🏴‍☠️
• Short-term performance is prioritized, sometimes at the expense of long-term sustainability. 🕒
• DeGraff emphasizes the importance of constructive conflict to blend fast-paced action with sustainable growth. 🔄

Key Takeaways

• The 'Blue' mindset is highly competitive and focused on achieving high-level goals quickly. 🔥
• 'Blues' are driven by power, often likened to pirates, conquering for growth and dominance. 💪
• Operating with a focus on short-term gains can lead to high turnover and sustainability issues. 🌪️
• Constructive conflict can create hybrid solutions, balancing the fast-paced 'Blue' approach with sustainable practices. 🤝
• Reputation and personal branding are crucial in the 'Blue' culture, often highlighted as a key success metric. 🌟

Overview

Jeff DeGraff takes us on a wild ride through the 'Blue' profile of the Competing Values Framework, offering a comedic yet insightful exploration of this result-driven culture. With an emphasis on performance and shareholder value, 'Blues' are the high-stakes players in the corporate world, where quick decisions and aggressive strategies reign supreme. DeGraff uses colorful anecdotes to paint a picture of these hard-hitting meetings, where everyone vies for supremacy.

These 'Blue' organizations, DeGraff explains, are akin to corporate pirates, with a voracious appetite for acquisitions and growth. However, while they are vastly successful in short-term objectives, there lies a critical challenge - sustainability. Their relentless pursuit often leads to turnover and burnout, making the 'Blue' world both fascinating and tumultuous.

DeGraff concludes by advocating for the balance that comes from constructive conflict. While the 'Blue' framework thrives in a world of fast-paced decisions and immediate results, incorporating sustainable and long-term practices can create hybrid models. By doing so, organizations can reap the benefits of both speed and stability, a reconciliation of opposites that leads to true innovation.

Chapters

• 00:00 - 00:30: Introduction and Focus on Performance The chapter titled 'Introduction and Focus on Performance' emphasizes the importance of focusing on performance and goals. It highlights the need for competitiveness and the creation of shareholder value. The text encourages readers to evaluate their stance and progress in their performance journeys.
• 00:30 - 02:00: Delivering Results and Shareholder Value This chapter focuses on the importance of delivering results and providing shareholder value. It discusses the emphasis on meeting performance and goals, making decisive decisions, emphasizing competition, and the importance of a rapid response in decision-making to achieve objectives effectively.
• 02:00 - 03:00: Accomplishing Goals and Blue Meetings The chapter delves into the theme of accomplishing goals. The importance of targeting weaknesses while reinforcing strengths is emphasized, as illustrated by the metaphor of dealing with persistent challenges ('killing the weak' and 'spraying for them'). Furthermore, the chapter introduces the concept of 'Blue Meetings', which are described in a mysterious yet intriguing manner. These meetings are pointedly different from 'Yellow meetings', implying a significant contrast in approach or content. Despite this, the details of what specifically occurs in these Blue Meetings remain elusive or intentionally understated, contributing to an air of focus and perhaps exclusivity.
• 03:00 - 04:00: Short Meetings and Power Dynamics This chapter delves into the chaotic nature of short meetings and how power dynamics play out in such rapid interactions. The scene is described vividly with imagery of noise and confusion, likening the meeting to a 'drive-by shooting' due to its overwhelming and hasty nature. Participants are depicted as unruly, almost in a grotesque manner, emphasizing the erratic environment. In the span of just 10 minutes, significant decisions are made, resources are reallocated, and personnel changes occur, illustrating the intense speed and impact of these meetings. The chapter captures the frenzied atmosphere where PowerPoint slides are ubiquitous, yet coherent communication is scarce. It highlights the pressure and stress associated with decision-making under such condensed timeframes, as exemplified by someone traveling from the West Coast for just a 10-minute meeting.
• 04:00 - 05:00: The Importance of Score and Personal Brand The chapter discusses the inherent nature of competition and power dynamics, likening it to animals, like fighting fish and dogs, instinctively fighting to establish dominance. This analogy extends to humans, indicating that power struggles are a fundamental part of interactions, where the need to establish 'who is more powerful' is crucial. The exchange of power and dominance is portrayed as a face-to-face contest where the metaphorical 'big dog' must devour and prove superiority in order to lead.
• 05:00 - 06:00: Metrics and Business Strategies This chapter explores how metrics and business strategies play a crucial role in organizational dynamics. It highlights the competitive nature of businesses where data-driven decisions and performance metrics become pivotal. The emphasis is on the 'score,' with companies constantly comparing top-performing entities versus the lower ones. It points out how businesses often prioritize numerical outcomes over traditional hierarchies, focusing instead on performance data to guide decisions. The importance of personal stakes or interests alongside data-driven assessments within a corporate environment is also discussed.
• 06:00 - 07:00: Growth and Aggressive Tactics In this chapter titled 'Growth and Aggressive Tactics', the focus is on the reputation and background of a character who boasts impressive academic credentials, including an MBA from Michigan, a PhD from Harvard, and postdoctoral work at Cambridge. Despite their high achievements and brand-oriented mindset, there's an underlying sense of disconnection from family, as the character admits to not being home for eight years. The chapter highlights the dichotomy between professional success and personal sacrifice, suggesting a critique of aggressive growth tactics and brand obsession.
• 07:00 - 08:00: Firing Practices and Business Roles The chapter focuses on the 'Firing Practices and Business Roles,' examining the tools, methods, and processes implemented within a firm. Metrics play a significant role, particularly the tracking of key performance indicators (KPIs) through dashboards. The speaker notes a focus on major metrics like rate of return, cash on hand, and market position, emphasized with an anecdote from General Electric.
• 08:00 - 10:00: Blue Firms and Industry Examples The chapter discusses the concept of 'Blue Firms' and provides industry examples. It notes that these firms are characterized by their focus on high-level goals and teamwork. The imagery used is vivid, comparing the leaders of such firms to fierce, 'bare knuckle' fighters who are relentless and formidable, implying a culture of toughness and resilience. The mention of small teams with dynamic names like 'Go team,' 'Win team,' and 'Strike Force' emphasizes their lean and agile approach in meeting organizational objectives. The passage suggests a competitive and action-oriented environment within these firms.
• 10:00 - 12:00: Fast Movement and Innovation The chapter describes a SWAT team led by individuals with fearsome nicknames like Chainsaw, Hitman, and Great White. The narrative compares them to gangsters, emphasizing their aggressive approach both in corporate and competitive scenarios. They may engage in verbal or physical intimidation to enforce their processes. The chapter humorously likens them to seagulls: swooping down swiftly, making a mess, and then leaving just as quickly. This analogy underscores their rapid intervention and exit strategies that inevitably lead them to claim victory in their objectives.
• 12:00 - 13:00: Sustainability Challenges This chapter, titled 'Sustainability Challenges', focuses on the aggressive tactics often employed in corporate growth strategies, particularly through acquisitions. These strategies are referred to as 'inorganic growth', positioning them as key engines for company expansion. The language used in these acquisitions, such as 'strike price' and 'kill zone', underscores the cutthroat and ruthless nature of these business maneuvers, likening them to taking over a 'weaker' entity as if 'beating someone up and stealing their lunch money'. This metaphor highlights the competitive and sometimes morally questionable approaches companies may adopt to achieve rapid growth.
• 13:00 - 15:00: Tensions in Business Approaches The chapter titled 'Tensions in Business Approaches' discusses the aggressive nature of capitalist business strategies. It highlights how acquisitions are executed simply because they are possible, emphasizing a 'might makes right' approach where the strong prey on the weak. This reflects a critical view of capitalism's ruthlessness, akin to piracy. The chapter also criticizes the preference for short-term gains, reliance on dashboards, and apparent arbitrary practices like firing employees without substantial reasons—illustrating a harsh and sometimes nonsensical business environment.
• 15:00 - 16:00: Constructive Conflict in Policy Making The chapter titled 'Constructive Conflict in Policy Making' discusses the role of 'Blues' in organizational settings, particularly in finance-related positions like CFOs and controllers. 'Blues' are described as individuals who prioritize efficiency and business objectives over emotions. They approach conflicts and decisions in a non-emotional, business-centric manner, focusing on productivity and the bottom line, often leading to decisions like firing employees based on business needs rather than personal feelings.

Jeff DeGraff - Competing Values Framework Profile - Blue (Part 2) Transcription

• 00:00 - 00:30 watch this Yow Blues It's All About You Now what you got guys focusing on performance and goalss emphasizing competi building shareholder value look at the way standing
• 00:30 - 01:00 you know you're G delivering results deling delivering shareholder value focusing on performance and goals taking shot from objectiv I like this and the ve popping alarmingly being a decisive decision emping competitiv emphasizing short time to watch making decisions quickly focusing
• 01:00 - 01:30 go accomplishing goals killing the weak Fe strong BL oh you know you've seen them we spray for them but they keep repopulating you been the blue meeting oh I dare say you have you ever been to Blue meeting what goes on in the blue meeting nothing nothing oh it's very focused to a yellow it's nothing I forgot I'm doing yellows what goes on in blue is poite
• 01:30 - 02:00 pounding oh pounding yelling screaming biting hitting right look at them they're borish they're a ghoulish group of people is it a long meeting or a short meeting it's really short it's like a drive by shooting PowerPoint slides everywhere because they can't speak in complete sentence B's on the floor people have been reassigned resources have been reallocated decisions have been taken all in 10 minutes had to fly from the West Coast with a 10minute power meeting
• 02:00 - 02:30 because they're blues it all has to happen face to face right dogs were made for the gripping right all the Shakespeare oh they're oh they fight what are they fighting over they have to fight they're like SES fighting fish what are they fighting over power power it's all about power isn't it it is it's all about who's more I'm more step aside let the big dog eat I'm more powerful than you weekly how do they decide he becomes the most powerful the leader they fight it out they fight f it out
• 02:30 - 03:00 and they don't really physically fight while sometimes they do we watch this group carefully how do they fight it out data oh they love the big score score whatever the score is they always compare the score top 10 bottom 10 yeah you know that group top 10 top 10 bottom 10 take look top 10 bottom 10 right there that's top 10 bottom 10 it to it ain't the Hit Parade either right and they decided based on who's got better numbers they don't care about stinking hierarchy but there's one other thing that care about which is their personal
• 03:00 - 03:30 brand the reputation you ever have't her talk it's probably why you're here I went to Michigan for my MBA oh yeah yeah Harvard for my PhD oh yeah Cambridge for my post oh yeah I am pure thought light and energy and I'm living on the eighth floor and I have 15 trillion fre FL miles I been home for eight years how do you remember what my family looks like you are seriously messed up it's all about brand oh get clue
• 03:30 - 04:00 these are mach's children right here don't get yourself pit pulls on two legs now what tools methods and processes do they inflict upon the firm and they will inflict them oh metric they're all do they they track all the small metrics or just the big ones just the big ones dashboard of all the big stuff I just came from General Electric last night rate of return cash on hand and Market position what else what if you don't hit
• 04:00 - 04:30 them they will leave your your stinking carcass outside the city gates for the Wolves to devour you a fate you somehow deserve right these are these are bare knuckle guys you don't want to get a night fight with these guys right so it's all about high level goals what else do they they love teams you ever seen those small teams spitty small teams they have names like they have names like like go teams and win team and Strike Force yeah yeah tiger team tiger sharp
• 04:30 - 05:00 team and yeah SWAT Team all real nice stuff right they're run by guys named chainsaw and Hitman and great white yeah they sound like gangsters s yeah they'll rough you up in the courtner and they and they get a couple Mackenzie guys to beat you up if you want to talk about the numbers and they fly in like seagulls and they squawk and they eat all your bread and they crap all over you and they fly away Victory Is Ours the quarter is one yeah it's these guys now one other thing that they love
• 05:00 - 05:30 so in addition to the high level goals and the dashboards and the short teams they love to grow the company this is one of the great growth engines of the company and it's what we call inorganic growth what is the fastest way to grow beat somebody up and steal their lunch money that's how you grow and think about the language of Acquisitions strike price kill zone right these are not nice people they looking for now you are weak I now going to take you over
• 05:30 - 06:00 Yar prepare to be boarded and why did you acquire us because we could right that's how it's supposed to work capitalism is supposed to be the strong eating the weak right that's how they are so they love acquisition hello Pirates they love short-term teams they love dashboards why do they fire people other than it's early in the week and we're just about to go to lunch let's fire some people playing round the golf what the hell why they really fire people for breathing yeah for breathing
• 06:00 - 06:30 for breathing in efficiently for breathing inefficiently not producing for not getting the numbers and a blue will say business's business a blue will say You're Fired want to have a drink later no you're miserable freaking fired me to a blue just business right not emotional where do we find Blues where do we see them CFOs CFOs controllers pardon controllers controllers treasury all that stuff Finance
• 06:30 - 07:00 where else we find the blues operations good Ys brand managers anything that rolls up to the street right we're going to find Blues there we're going to find Blues in some parts of the marketing strategy organization that has Target numbers we're going to find Blues what are blue firms the blue firms are the darling of all the exchanges the Dax you know footsie who are the blues who are the big Blues g g g 300,000 people but a different 300,000 people than last year
• 07:00 - 07:30 the Romans are coming right Microsoft you know these to call the product release cycle the death march talk about Politically Incorrect right the death the Trail of Tears what did it mean it meant that you were going to release the product on time and why do we write about Bill Gates how many earnings targets did he ever Miss none that's right now look at him now yes what are they saying about Palmer he's Miss five he's weak like
• 07:30 - 08:00 Heart of Darkness somebody must go up River and take care of that the herd must be thin right the bloodline must stay strong they're blues how about financial services firms do you really seriously believe that we didn't know the market was going to T they did a lot of work at the Federal Reserve you think we didn't know what's the real question then why didn't stop do they stop take a good look at them do they stop they don't even know where the
• 08:00 - 08:30 break is you know oh there's a turn here what are they mad about now we're screwed around too long we got to go fast again right to B get all the Regulators off we want to go you just drove over the cliff no so we're going to find those in places even places like PNG that talk about being yellow firms are still blue firms we look at these kind of firms now what B why happen why happen they're so aggressive I
• 08:30 - 09:00 have what do we get for they get things done what kind of things do they get done money they get money whatever you call money Revenue great return even whatever you want to call Money these are the money hops they smell money really well and they get money when now so you read those new age books The Power of Now their new age book is the power of now damn it now now right so they're really fast they get money are they fast they slow with they're the fastest short-term group here are their
• 09:00 - 09:30 approaches breakthrough or incremental breakr breakthrough yeah that's what they think between us girls they have a little size Distortion challenge you you're not that breakthrough Blues you're just real fast guys you're not breakthrough at all right you're kind of moderate what's the dark side of the Blues what's the dark side overall picture overall picture a lot of Road Pizza they miss a lot of turns what else to aggressive
• 09:30 - 10:00 morale yeah they're not sustainable the Delta is very high on these FMS they're the least sustainable group in the room now the challenge of Blues when they go to the negative Zone can be demonstrated by when Hank pson who used to be secretary treasur Rand Goldman used to have a sign in his desk to said if you don't come to work on Saturday don't bother showing up on Sunday take a good look these are the sweat shop guys right here does anybody feel the tension between
• 10:00 - 10:30 short-term performance and long-term development at their work who are the first people these guys fir in a down economy look at you guys right who are the last guys you hire back when it picks up these guys down here it's all about the moving the money guns and lawyers because these guys it's not about your personality these guys want npvs now High npvs what happens when you take people out and train them for three months what happens to your to your npvs this quarter destroy them you're destroying
• 10:30 - 11:00 their form of value what happens when you try and develop a competency in a person you try and do it in two weeks or two days or whatever you can't do it they're destroying your form of value so this is not hypothetical AA Fairy stuff this is displacement this is what you seek is the opposite of what they seek these tensions are the wars that go on and they're not just internal this is Microsoft who ate all the tuna in it end of the ocean until Linux showed up with a post capitalist model we CAU commi
• 11:00 - 11:30 wear oh the commies have shown up we're all going to get better software for everyone and you guys don't know how to defend because you you've never seen the opposition just making sense this is nation states somebody goes to China and they go you know the problem with China is everything done through relationships duh you know a 4,000 year old culture hey get used to it man this is the way it goes so this is not just internal these are configurations and how people compete they compete by being
• 11:30 - 12:00 collaborators or they compete by being competitors but this is the issue of how fast we need to move do we need to Mo fast in the short term yes do we need to do do we need to be sustainable in the long term and here's the tradeoff it's like a best friend how long do it take to develop a best friend a long time but once they're your best friend what happens at transactional time it goes down so in the end they're faster but in the beginning you're much faster 35 following this that's the tradeoff so
• 12:00 - 12:30 the first issue is the tension around how much time let's turn now is it is the tension good or bad it's good because what's it do produces hybrids it's not just about balance it's constructive conflict now if I may draw an analogy for you and I'm not trying to be radical here look at healthare the healthcare Bill what did you have in the healthcare bill you had one group that said nothing will change what the other group say Everything Will Change what' you get you got a bill
• 12:30 - 13:00 didn't make any sense right if you put the two together and you lock them in a room you put the 12 people that represent each point of view you might have got a bill that made sense the bill doesn't make sense not because of constructive conflict the bill doesn't make sense because you inh haveit is this making sense to you had you made them have constructive conflict you would have gotten something out of the bill that made sense to more constituencies that's kind of what we're talking about how do you constructively not negatively not destructively constructively engage little opposition