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To Manage Change Effectively, Transfer All Learning to Behavior

Successfully Lead in Change Management

Managing change effectively starts with determining what knowledge, skills, and attitudes are needed to achieve the desired behavior and results. Leaders must know the concepts, principles, and techniques required for managing change.

Managing has a two-fold meaning: (1) to decide on the changes to be made and (2) to get the acceptance of those involved in the change. Training professionals can control the learning content. However, changing behavior is under the control of the line managers whose people are trained. Therefore, these concepts, principles, and techniques are important to trainers and managers alike.

10 “Managing Change” Concepts

  • Everyone is resistant to change. Yes, everyone resists or resents change, but not all the time. It gets down to a simple fact: “How will it affect me?” The main reason why people resist or resent a change is that it will affect them in a negative way. For example, when in 1973, Sears’ management decided to build the tallest building in the world in Chicago and have all Sears’s employees in the area move there, not everyone was happy. Some people resisted the change because of the additional cost of travel, parking expenses, commute time, fear of heights, the lack of space, or the separation from friends. However, many welcomed the change because they would be in town for eating and shopping; be in the tallest building; look out over the city; and have better working conditions.
  • People will not always accept changes decided on by “experts.” It makes no difference whether or not “experts” made the decision or the boss made it. Many years ago, industrial engineering consultants (experts) were hired by manufacturing organizations to make decisions on reducing costs. In most cases, some people (10 percent) lost their jobs. The attitudes and feelings of those who lost their jobs as well as the other employees were so strong that cost reductions rarely occurred because of the negative attitudes and lower productivity of their friends. Seldom will “experts” or “facts” have the desired result because the feelings and attitudes of those affected are so strong.
  • 'Managing Change (Pocket Mentor)' by Harvard Business School Press (ISBN 1422129691)If you want people to accept or welcome a change, give them a feeling of “ownership.” When I taught decision-making, I used statements to describe the four choices a manager has when making a decision: 1) make a decision without any input from subordinates; 2) ask subordinates for suggestions and consider them before you decide; 3) facilitate a problem-solving meeting to reach consensus; and 4) empower your subordinates to make the decision. In deciding on the best approach for making the decision, consider two factors: quality and acceptance. Regarding quality, which approach will reach the best decision? There is no assurance that one approach will come to a better decision. However, the more involvement (ownership), the greater the acceptance.
  • People who do not understand the reason for a change will sometimes resent or resist it. For example, my pension benefits at the University of Wisconsin were changed so I could retire at age 62 without losing any benefits. I do not know why the state made the change, but I benefited from it and did not resent it. Any change that will benefit employees will be welcome, whether or not they understand the reasons for it.
  • Empathy is one of the most important concepts in managing change. Empathy is putting yourself in the shoes of others and seeing things from their point of view. Training professionals must determine the needs of the learners so that the program will be practical. Whether using E-learning or classroom approaches, they must communicate so that the learners will understand. In addition, managers must know how to help them apply what they learn.
  • Persons who have no control over the people affected by a change can have some effect on their acceptance. A training manager once told me, “Don, I have no control over the learners when they leave the classroom, so it is up to their managers to see that change in behavior occurs.” This person was right in saying “I have no control” but wrong in saying it is strictly up to the managers. Trainers will have to use “influence” instead of “control” to see that change in behavior occurs.
  • Managers should encourage and accept suggestions from all employees. What can they lose? In addition, they might gain new practical ideas as well as build relationships with the person suggesting the change. Yet few managers welcome ideas and accept suggestions from other managers because there is little if any difference between a “suggestion” and a “criticism,” no matter how tactfully the suggestion is offered. To receivers, a suggestion says: either “you are doing something you should quit doing” or “do something you aren’t doing.” Someone came up with an interesting and “practical” idea for improvement in performance. Instead of using the typical performance appraisal approach where only the manager appraises the performance and offers suggestions on how to improve, the “360-degree” approach was introduced to include appraisals and improvement suggestion from managers, peers, and subordinates. If managers do not even accept suggestions from peers, imagine how many managers will resent suggestions from subordinates. Organizations that use the 360-degree approach have trouble convincing managers that their people are trying to help them.
  • 'Managing Change in Organizations: A Practice Guide' by Project Management Institute (ISBN 1628250151)If changes are going to be resisted, managers should move slowly in order to gain acceptance. Time can often change resistance to acceptance if the change is introduced gradually. Often people resist change out of fear of failure. You might decide to train the ones who want the new opportunity and terminate or transfer those who do not want to change. Alternatively, you might decide that you do not have to make the change immediately. Time, patience, and training eventually move most employees from the present state to the desired one. The question is “what is the hurry?” When you introduce change gradually, you increase acceptance, especially when you also encourage and help people adjust to the change.
  • Effective communication is an important requirement for managing change effectively. This includes upward as well as downward communication. Managers must listen even if they are being criticized, which in many cases was meant to be a helpful suggestion. Instructors must be effective communicators by gaining and keeping the attention of the learner, using vocabulary that the learner understands, and listening to the questions and comments of the learners.
  • Managers and training professionals need to work together for the transfer to take place from “learning” to “behavior.” An important principle has to do with the “climate” that the learner encounters when returning to the job. If the manager is “preventive” and operates on the attitude that “I am the boss and you will do it my way regardless of what you have learned,” no change in behavior will take place. Not only will learners be discouraged from changing, they will also be upset by all the wasted time. The ideal climate is where the manager encourages learning and its application on the job. The training professional must influence managers by informing them of the learning objectives and involving them in the training process.

The Three Keys to Change Management are Empathy, Communication and Participation

The aforementioned 10 concepts, principles, and techniques are necessary for managing change effectively. Managers must encourage people to apply what they learn and to transfer learning to behavior. Training professionals must be sure that the curriculum will meet the needs of the learners. The training programs must be effective using competent instructors. They must use empathy to understand the climate established by the managers. Then, they must work with managers to help them establish an encouraging climate so that the learning will be transferred to behavior change and results will follow.

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Reflect on Why You Lead

Reflect on Why You Lead - Personal Leadership Journey

My Personal Leadership Journey

For the past 30 years, I have worked in business, primarily in energy, but here I share a few aspects of my personal leadership journey over the past six years and how that journey has changed my outlook on life.

You are leaders with your own roles and responsibilities. Your journey will be unique; however, I believe that we share many concerns in common. At times leadership can feel overwhelming. There are so many practical issues-how to communicate, coach, and develop strategy. But there are other, more fundamental questions-like “why lead?” or “why continue leading?” or “Am I doing the right thing?” or “How do I find meaning, purpose, and joy in my leadership?” These are the questions we all have to answer for ourselves.

'The Leadership Journey' by Gary Burnison (ISBN 1119234859) Leadership can be very rewarding-personally, professionally, and financially-but it can also be very challenging. Nothing is ever quite right. There are many setbacks and sacrifices. We often get caught up in the struggle without reflecting on the greater meaning of our journey.

Even after becoming a successful entrepreneur, I wrestled with “why?” questions. In fact, they seemed even more pressing. When you don’t have to work anymore, you can get very honest with yourself. The questions are still there-no matter how far along the leadership path you go. But the further you go, the better the answers have to get. Beyond words that sound right, the answers have to be deeply meaningful to sustain you.

I set many business goals, and am proud of what I helped to create. I experienced much satisfaction from our achievements. But “more of the same” didn’t seem like enough. I was seeking more important insights. Our lives and businesses are very complex. But I came to feel that the real answers should be simple. Truth, I believe, is simple, and the messages of great leaders are simple and clear.

Four Leadership Lessons

One catalyst in this process was my attendance at the Global Institute of Leadership Development conference five years ago. Warren Bennis was a cohost, and I was impressed with his wonderful example of leadership and inspired by his ideas. The theme that had the greatest impact on me was “find your leadership voice and passion.” His message spoke to me. I asked myself, “Have I really done that?” It seemed to require using more parts of myself. The more aligned we are with our unique abilities and talents, the better everything seems to work. And fully expressing ourselves suggests values and beliefs-even spiritual qualities.

At that time, another story line developed that became the source of many new insights that helped change my life and my leadership. It started with plans for the new Millennium in 1999.1 initially had a fun idea to charter a yacht in the Caribbean, but it became something much more meaningful. My family planned to contribute to the building of a 150-bed hospital in southern India. Over the last six years, this has led to involvement in building a school, a seva hall to feed the poor, and a spiritual park to nourish peoples’ souls-among other projects. Despite all the project activity, visiting this area of India is very rejuvenating for me. In fact, a one-week trip around the world to India is more restful for me than a week in Hawaii.

Through my experience in India, I learned four leadership lessons:

Lesson 1 in Purposeful Leadership: Joy

'The Twelve Absolutes of Leadership' by Gary Burnison (ISBN 0071787127) As the locals, as well as people from around the world, came to help us with our projects in India, they worked long and hard, but with joy and passion. Now, I’m familiar with “24/7” work from the investment banking world; however, these people also seemed to find meaning and joy. Their mode of operating seemed to be not only a more enlightened way to live, and pointed to a more effective form of leadership.

Happiness is good, but it’s fleeting. It may be the feeling you get from buying a new car, or house, or getting a new job or promotion. The feeling lasts for awhile, and then passes. You then need a new acquisition or achievement. It’s externally bound.

Joy is deeper, fuller, more sustaining. It’s a feeling you would have about your children, something special you did for someone, or something you received. It’s a feeling you can always revisit with joy. It’s internally connected.

How do you move from happiness to joy, and how can you create more joy in your life regularly? Joy isn’t something you can buy (a thing), or something you can do for yourself. You can’t create joy for yourself directly-it is only through others. You can’t operate in that joyful realm in a sustained way until you get outside yourself, because it’s not about you. Churchill said, “You make a living by what you earn, but you make a life by what you give.” Serving others is what great leaders do.

In his book The Spirit of Leadership, Bob Sptizer describes four levels of happiness: physical gratification, ego gratification, service to others, and service to others in pursuit of a greater cause. The last two are in the realm of joy, as they take you from selfish to selfless, from conditional to unconditional.

Lesson 2 in Purposeful Leadership: Enough

Early in my career, I set some ambitious goals for myself, including financial ones. People suggested that once I achieved these goals, I would keep moving the goal posts. I didn’t believe them then, but they were right. What I achieved went far beyond my expectations, but I still found myself reframing my goals.

This isn’t necessarily a bad thing, except for one aspect. It wasn’t making me any happier; in fact, it started to take a toll on my life-stress, pressure, obligations. When is enough, enough? There is no absolute point. Deciding is difficult. We are naturally attracted to more. Most people think if they reach their next destination or goal, they will finally have enough. But once they arrive, they inevitably discover another level of desire.

“More of the same” will not help us attain what we ultimately seek. In fact, “more” implies we’re incomplete. We think that we’ll finally arrive when we achieve the next goal. Of course, the horizon moves out. After a certain level, it’s a choice. “That’s it – I have enough right now.” When you reach that point, something remarkable happens because it’s no longer just about you. It’s a transformational awareness. It moves you from your own self-interest to otherinterest, from conditional to unconditional, and from happiness to joy.

So what about work? What about those goals that are so motivating? They are still there, but they take on more importance-because now they’re for a greater purpose.

I continue as Co-Chairman at ARC Financial Corporation, but I contribute all the growth in value to others. It’s turned my work into something with more purpose-and it’s more sustaining. How you share your talents and gifts will be unique. But I can attest that when you start operating on this basis, more incredible things happen to you and for you than ever could have happened when your own needs were paramount. That’s the paradox of opening yourself to joy.

Lesson 3 in Purposeful Leadership: Wealth

This is an interesting topic for someone like me who has devoted much of his career to finance, investment, and wealth. I could talk all day about maximizing shareholder value or about making investments in energy markets. Instead I want to talk about wealth in a different way and offer a new perspective.

Wealth is generally thought of as assets, and if you were truly wealthy then you would think that your financial wealth would provide “enough.” But if you ask many people with wealth, you find that they generally have both a need and a plan for more.

In India, we see a lot of poverty and hardship, but we also see a lot of joy. What we all need to realize is that real wealth is in the heart, and it is experienced when you have peace and joy-that is when you finally have “enough.”

As I struggled to integrate my future business life with my philanthropy, I asked Linkage founder Phil Harkins to work with me-on the condition that he come to India. He was skeptical, but he joined our family there in 2004. We talked about the challenges facing leaders. One morning, he said he had been up all night writing the outline for a book. “We need to explore some key insights here that could be important to leaders,” he said. “But there’s one condition-you need to help me write it.”

A major part of the book involved interviewing 25 successful leaders to understand how they answered those questions. What qualities, intentions and aspirations did they have that made them so successful? To what extent did those insights from India about wealth and joy play out? That brings me to my fourth lesson.

Lesson 4 in Purposeful Leadership: Unconditional Leadership

What draws us to leadership will not sustain us. For us to grow and evolve so must our leadership. If we are aligned with our purpose and what we find meaningful, then our leadership is more successful and sustainable.

Each leader in our study found meaning and created more impact through an orientation towards serving others. Here are two representative quotes: “Personal reasons will only take you so far” and “In building a company, ultimately you are serving others.” Another said “Leadership will challenge you in ways you couldn’t imagine.”

'Unlocking Potential' by Michael Simpson (ISBN 1477824006) Warren Bennis describes the process of becoming a leader as much the same as the process of becoming an integrated human being. Leaders evolve through both failures and successes to their mature style. What is that style in its ultimate form? One important aspect if that style is moving from leading for oneself, to leading with others, to leading for others. This last stage, unconditional leadership, is the soul of leadership.

When I visited an orphanage with over 100 children in India last year with my family, the experience evoked many emotions and much anxiety. These children have so little. When we arrived, the kids came out to greet us, and our anxiety disappeared as we were swept up in the experience of being with them. We brought ice cream and cookies, but the kids wouldn’t eat any until we had some of their treat for us first. They performed songs and dances, and they embraced us. Even though they had so little, they still had joy and laughter and shared it with us. My children saw abundance in a whole new way-a way that did not relate to the material world but to the heart. Despite their hardships, we felt that abundance and love, which is more meaningful and joyful.

Reflect on Why You Lead

You can make a difference. If you want to change the world, first you have to change yourself. If you change – yourself, if you change your heart, it will change the world.

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How to Create a Culture of Appreciation

How to Create a Culture of Appreciation

Through Appreciation, Your Human Resources Will Increase in Value and Worth

Most of us think we appreciate our employees. We say “good job” for work well done, we give out Employee of the Month awards, and we honor our top producers. Yet, two out of three workers say they didn’t receive a single word of praise or simple recognition in the past year. Well, you think, “That’s the other guy—I appreciate, I’m grateful.” Yet, the number one reason people leave jobs is lack of appreciation—not low pay, not too many hours, or too few benefits. People quit first because they don’t feel appreciated!

'Making Feedback Work' by Elaine Holland (ISBN 1496103041) How much does turnover cost you? How much do you spend in recruiting, hiring, and training new hires? How much time-productivity is lost in the process? In addition, what about absenteeism and lack of motivation and enthusiasm? Because those who aren’t quitting, but who feel unappreciated, are coming to work less often, with less zeal and less commitment. And who incurs the cost? You. Your business. Your company.

And the cost is considerable. Appreciation has a real and measurable impact on your bottom line. Studies reveal that the degree to which people feel their company recognizes employee excellence results in dramatic differences to the company’s bottom line. Businesses effectively valuing their employees enjoy triple the returns on equity, returns on assets, and higher operating margins.

And that’s just when employee excellence is appreciated. What do you think can happen—what does happen—when you have an entire culture of appreciation? When an obsession with value, with the worth of people and situations, becomes your way of doing business?

Companies such as Southwest Airlines and See’s Candies have embraced the appreciation approach. The result? Southwest Airlines is making money while its competitors are filing for bankruptcy. See’s Candies has tremendous customer loyalty, longevity, and profitability in an industry fraught with competition. When I interviewed the leaders of these companies, I discovered that they have a culture of appreciation.

Value Your Employees and Attract Value from Them

Value Your Employees and Attract Value from Them

Appreciation is not just another word for gratitude. Appreciation is about recognizing and caring about the value of things. This is the way the word appreciation is used in the marketplace: we say that land appreciates, gold appreciates, art appreciates,—and they all increase in value and in worth. When you are genuinely concerned with the value and worth of your people, and decide to make valuing your number-one priority, the value of your business skyrockets.

'1501 Ways to Reward Employees' by Bob Nelson (ISBN 0761168788) The reason appreciation works so spectacularly is scientific: Appreciation is an energy that attracts like energy. Therefore, by valuing your employees, you attract value from them. Like attracts like. It’s not just a catchy phrase—it’s a scientific reality you can use to your direct benefit.

How? It all starts with you—whether you’re the owner, department head, manager, or supervisor—what you think and what you feel affects every person involved with your company. You set the tone, you set the pace, and you determine what is going to matter and what isn’t. You have enormous impact.

If you see your products and services as having tremendous value, those you manage will appreciate them in the same way. If you see the people who work for you as having tremendous value, those people will want to step up to the plate for you. Your business cannot help but prosper. It’s scientific. Like attracts like.

Five Ways to Appreciate Your Employees

Five Ways to Appreciate Your Employees … Your Human Resources

Here are five ways you can appreciate beyond Employee of the Month:

  • Adopt an appreciative focus. Appreciation is an active, purposeful search for the value or worth of whatever or whomever you meets. Many times, your focus is on everything that’s going wrong as you come to work: all the problems that you must somehow solve or delegate to be solved. In the process, you ignore, and most emphatically fail to value, everything that’s going right. Look at your business with new eyes. Search for what you can appreciate and find of value in every person, every moment of the day. Ask your managers to report what’s working right, where the greatest progress is being made, who’s going the extra mile. Take time to acknowledge the positive reports from your managers, ask for more details, and be enthusiastic about what they have to say.
  • Problem-solve with appreciation. When problems inevitably arise, ask employees what they think might resolve the issue. When valued this way, most workers will try to produce good solutions, especially since they often know the workings of their particular job or department better than anyone does. By using this approach, you are acknowledging your employees’ value before usurping it with yours. Of course, others will not always solve problems for you, but by valuing your workers’ ability to do so, you increase the chances that they will. In addition, by acknowledging their value, you increase the possibility that employees will become proactive and eagerly seek solutions to future problems. When you see value in people, you free them to be more creative, more innovative, and more valuable to your business. In addition, when employees are part of the solution-making process, they own the solution and are therefore more willing to do what it takes to see it through.
  • 'The 5 Languages of Appreciation in the Workplace' by Gary Chapman and Paul White (ISBN 080246176X) Catch employees in the act of doing something right. So often, we focus on only catching employees doing something wrong. In truth, catching people doing something right, something of value, is far more beneficial to your business. Make a habit of walking around the business spontaneously. Using the appreciation reports gleaned from your department heads, let workers know that you appreciate a specific aspect of their effort. Tell them how their “good act” was noticed and what it means to you and to the company. Know enough about what workers are doing in different departments so you can make meaningful comments about their contributions. Specific comments are much more appreciated. Saying “You’re doing a great job” isn’t as meaningful as saying, “The specs you wrote up on Project X really made a difference to our customer.”Ask employees what they’re working on now. Engage them in conversation about their work. Wanting to know their thoughts lets employees know that what they think and say is valuable. Look workers in the eye, use their name, and be genuinely interested in their comments.
  • Create a culture of appreciation. Collect stories of work done well. Make heroes of the men and women who work for and with you. We are all starved for recognition, for genuine applauding of our talents and skills. The success of TV reality shows is predicated on our need to be valued and to be seen as valuable. We want to be appreciated for who we are and want the opportunity to be winners. Celebrate the value of those who deserve, regardless of position or department. Celebrate workers’ good acts outside of work as well. By fostering a culture that acknowledges good acts within your community, your company will reap the benefits. Discourage negative talk and gossip about anyone or anything. Don’t indulge in “the economy is terrible,” “stockholders are a nuisance,” or “meetings are a waste of time” conversations. Don’t trash or bash others.
  • Lead by example. Appreciation is not a fad or technique. It is a paradigm shift, a new approach. It is even more critical today when employees often have a variety of career choices and move on when they feel unappreciated. If you want to see the tremendous advantage an appreciative approach can make, infuse your business with appreciative thoughts and practices.

It all starts with you. From you, appreciation can spread to the great benefit of your performance, productivity, and profitability.

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How Dell Created a Great Place to Work

How Dell Created a Great Place to Work

Dell has been known for its productivity; however, behind productivity are people, and Dell is learning what it means to be a great company and a great place to work.

Dell has been a results-driven company for a long time—almost to the exclusion of everything else! In many ways, that has accounted for Dell’s success. One thing I discovered is that when your stock is going up 300 percent a year, no one pays much attention to issues like “effective management” or “creating career tracks for your people.” People willingly work very hard for long periods because the payoff is so huge.

Dell’s crisis of conscience came in 2001 when, for the first time, Dell had to lay people off. In late 2001, Dell went through a self-discovery process where Dell started to ask, “If we aren’t going to be a company where you can come in and be rich by noon tomorrow, what are we? What do we aspire to? What kind of company do we want to be?” Dell’s president, Kevin Rollins, and CEO Michael Dell began a dialogue about what it really means to be a great company and a great place to work.

Creating a Winning Culture at Dell

In the end, Dell came up with what probably looks to outsiders like a beliefs-and-values statement. Dell called it “The Soul of Dell.” It is a statement of Dell’s aspirations as a company. There are five aspects: the Dell team, customers, direct relationships, global citizenship, and winning. Dell shared early drafts of the documents with all of Dell’s vice presidents, and had some great dialogue about what Dell leaders and employees together aspired to become.

The biggest gap was between where Dell were and where Dell wanted to be with the Dell team. So leaders and employees started to talk about what it would mean to be a winning culture. Leaders soon realized that they would have to broaden the definition of what they cared about, beyond financial results. They continue to care very much about what they accomplish, but also how they accomplish it. After focusing more on performance for 15 years, when they came out with a beliefs-and-values statement Dell’s employees were a bit skeptical. In the first year, Dell had a series of programs, town-hall meetings, brown-bag sessions, and other discussions to talk about what Dell aspired to do—all of which were met with great enthusiasm and great skepticism at the same time. The enthusiasm was driven by the view that Dell needed to do more to become a great place to work over time. The skepticism was driven by a concern about whether or not Dell believed and were committed to what it’s leaders were saying.

Dell's Improvements to Management Quality and Organizational Culture

Dell’s Improvements to Management Quality and Organizational Culture

Last year, Dell’s leaders put some teeth in Dell’s effort to improve the quality of management and improve the culture. We decided to administer Dell’s employee opinion survey, “Tell Dell,” twice a year, and they asked every vice president, director, and manager to get 20 percent better results than the year before. We wanted to send a signal: The results are important, but how you get results is also important. At first people said, “That’s nice, but will they really pay attention?” The major change they made was to identify metrics, based on responses by employees, that measured how well Dell’s managers managed and how well leaders led. In short, they decided employees would vote on whether or not they had made any progress.

The results were interesting. First, they got 90 percent participation worldwide, which is amazing itself, and over 90 percent the second time they did it. When they first did the survey, they didn’t show much progress from earlier years, which was to be expected. But Michael and Kevin talk about it every time they get together as a senior management team. They direct the senior team to share the results, in front of their peers. And they discuss their own scores. That’s what caught people’s attention. Slowly but surely, we’re getting better—as are Dell’s managers throughout the company.

There are about 30 statements on the survey, and they use five of them as core metrics for measurements: My manager is effective at managing people. My manager gives effective feedback. If you had an opportunity to work some place other than Dell, would you take it? I feel like I can be successful and retain my individuality at Dell. My manager helps me manage my work/life balance.

When they did the second survey, it was fun. We did get 20 percent better! I think they were all surprised at how much progress they had made. What was even more amazing is mat this happened across the board—they got better everywhere.

This has been a very positive experience for everyone. Dell’s leaders are reminded that if they put Dell’s minds to it, they can get better at a lot of things—even things that seem intangible. For Dell’s employees, it has been positive because it has driven far more conversations about issues between managers and their people. We’re using simple metrics to measure change, but are broadening Dell’s definition of what it means to be a great company.

Dell's Leadership Development

Dell’s Leadership Development

For three years they have had a company-wide leadership program. It’s one-day long, and all leader-led (they never use consultants). Each year, they focus on a different facet of leadership at Dell. Each year, they advance what it means to be an effective leader at Dell. And every year it starts with Michael and Kevin. They devote one day to teach Dell’s strategy committee—Dell’s senior-most decision-making group—about what it means to be a good leader. Then each of us repeats that leadership training with Dell’s direct reports, and on down the company. We all share Dell’s expectations with Dell’s teams about leadership. It is a powerful change mechanism—to stand in front of your team and discuss what you expect them to do differently, and then have them tell you what you need to do to improve.

'Direct from Dell' by Michael Dell (ISBN 0060845724) First, it’s powerful that Dell’s chairman and president are willing to spend a day to talk about this because it is a very revealing process. They talk about things that they did well and poorly. It’s powerful to stand in front of your own team and lead a discussion about leadership. Personally, I feel very exposed during those conversations. I know that they know what the leadership issues are with me, and so I have to fess up and say, “Well, here’s what I think I need to work on.”

We have also used 360 assessments more with Dell’s VPs and directors. We have put together a consistent worldwide management-development curriculum that defines expectations as well as builds skills. We also have short tutorial workshops for anyone who scores below 50 percent on any of the five items.

So, where do they go from here? We will do the survey again this year, and this time everyone will be expected to get at least 50 percent favorable responses on each question. If you’ve got an approval rate of higher than 75 percent, we’ll ask you to stay at that level; it’s hard to ask those people to get a 20 percent improvement when they are already doing so well.

Dell’s European team, in addition to doing what we’ve done, asked their entire management team, “If you were going to teach one lesson in leadership to the people on the Dell Europe team, what would that be?” Then they were asked to develop a 45-minute approach to teach that lesson. Every time they meet with a new group or visit a new country, they take an hour and teach their lesson in leadership. It puts Dell’s leaders up in front of Dell’s employees more consistently.

Almost every culture change has a back-to-basics emphasis because people tend to lose their focus on the business. We came at this from an opposite position. Dell’s business continues to do very well. Two years ago, they set a goal to double the size of the company in five years—and we’re already ahead of pace to do that. So, I’m proud to say that for a company on top of its game, they still want to be better—not just on Dell’s business results, but also in the way they manage Dell’s people.

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How to Address the Struggle for Self-Realization in Your Organization

At the dawn of the new millennium, two powerful factions are arrayed against each other. Each faction advocates an extensive list of reforms.

  1. those influenced to support the principle of equality of condition and to extend their progressive program of reforms
  2. those equally determined to reinstate equality of opportunity as the reigning principle.

Now, we need to tackle such concerns as the struggle for self-realization, the desire to find a deep-seated meaning in life than the endless accumulation of consumer durables and the pursuit of pleasure, education not only for careers but for spiritual values, methods of bankrolling an early and rewarding retirement, and increasing the quality time available for family activities.

The changing nature and distribution of work and leisure and changes in the structure of consumer demand are creating overabundance in some areas (such as the excessive consumption of calories and fat) and severe shortages in others (such as health services at all ages).

How to Address the Struggle for Self-Realization in Your Organization

To accomplish self-realization, we need to understand life’s opportunities and sense which ones are most attractive to us at each stage, and the requisite educational, material, and spiritual resources to pursue these opportunities. Currently fair access to spiritual resources is as much a benchmark as access to material resources was in the past.

  • Spiritual resources include a sense of purpose, a sense of opportunity, a sense of community, a strong family ethic, a strong work ethic, and high self-esteem.
  • Developments in physiology have contributed to the growth of the elderly population, giving rise to the problem of in, intergenerational equity—the assurance that one generation will not suffer a lop-sided share of the burden of financing a lifetime of self-realization.
  • Also pressing is the need to develop arrangements that permit prime-aged workers greater flexibility so that they can attend to their own and their family’s spiritual needs.
  • Lifelong learning is another new equity issue. It involves offering opportunities not only to upgrade skills to earn a living but also to extend knowledge in the arts and humanities.

For women, self-realization requires an end to glass ceilings and the creation of conditions that make careers and families fully compatible.

The new agenda is shaped by changes in structure that have reversed the trend toward economic concentration and the separation of work and home.

Today, 60 percent of our discretionary time is spent doing what we like (volwork). The abundance of leisure time promotes the search for a deeper understanding of the meaning of life.

Why this deep desire for volwork? Why do so many people want to forgo earnwork, which would allow them to buy more food, clothing, housing, and other goods? The answer turns partly on the extraordinary technological changes.

Food, housing, clothing, and other consumer durables have become so inexpensive in real terms that the totality of material consumption requires far fewer hours of labor today.

Indeed, we are approaching saturation in the consumption not only of necessities but also of goods that were in the recent past thought to be luxuries. The era of the household accumulation of consumer durables, which sparked the growth of manufacturing industries, is largely over. Most future purchases of consumer durables will be by those replacing items or establishing new households.

Quality of Life and Self-Realization

Today, ordinary people wish to use their liberated time to buy those amenities of life that only the rich could afford in abundance a century ago. These amenities broaden the mind, enrich the soul, and relieve the monotony of earnwork. They include travel, athletics, the performing arts, education, and shared time with family. The principal cost of these activities is often measured, not by cash outlays, but outlays of time.

Soon, the issue of life’s meaning, and other matters of self-realization, will take up the bulk of discretionary time.

'Rising Strong' by Brene Brown (ISBN 081298580X) New flexible work modes—such as a regular part-time work, blocks of work interrupted by blocks of released time, job sharing, flextime, telecommuting, hoteling, compressed work, early retirement, and postretirement earnwork arrangements—are desired by men and women who want a life that is not overwhelmed by earnwork. They do not measure success by income or position. They are content with a simpler lifestyle that places greater emphasis on family life, shared relationships, spiritual growth, religious faith, and good health.

Today, many corporations view alternative working arrangements as part of an inventory of personnel policies that increase corporate productivity and reduce absenteeism, labor turnover, and the cost of office space.

Today ordinary people must decide: What it the nature of the good life? Our world may be materially richer and contain fewer environmental risks, but its spiritual struggles are more complex.

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Four Mistakes That Cause Most Failures in Organizational Change

Change Leadership: Many Start but Few Finish Well

No organization is invulnerable to change. To cope with new technological, competitive, and demographic forces, leaders often try to adjust the way they do business—evaluate few of these efforts meet the goals. Few companies successfully transform themselves.

Here are four mistakes that cause most failures in organizational change:

  1. Mistake #1: Writing a memo instead of lighting a fire. Most leaders mismanage the first step—establishing a sense of urgency. Too often leaders launch their initiatives by calling a meeting or circulating a report, then expect people to rally to the cause. It doesn’t happen that way. To increase urgency, gather a key group of people for a day. Identify 25 factors that contribute to complacency and then devise ways to counter each factor. Develop an action plan to implement your ideas. Your chances of creating a sense of urgency and building impetus improve inestimably.
  2. Mistake #2: Talking too much and saying too little. Most leaders under-communicate their change vision by a factor of 10. Moreover, the efforts they make to convey their message in speeches and memos are not convincing. An effective change vision must embrace not just new strategies and structures but also new, aligned behaviors. Leading by example means spending more time with customers, cutting wasteful spending at the top, or pulling the plug on a pet project that don’t match up. People watch their bosses meticulously. It doesn’t take much inconsistent behavior to fuel cynicism and frustration.
  3. 'Change Leader Learning to Do What Matters Most' by Michael Fullan (ISBN 0470582138)Mistake #3: Declaring victory before the war is over. When a project is completed or an initial goal met, it is tempting to pat on the back all involved and proclaim the advent of a new era. While it is important to celebrate results, kidding yourself or others about the difficulty and duration of transformation can be catastrophic. Once you see encouraging results in a difficult scheme, you still have a long way to go. Talking about “wrapping this thing up in a few months” is nonsense. If you settle for too little too soon, you will probably lose it all. Celebrating incremental improvements is a great way to mark progress and maintain commitment—but note how much work is still to come.
  4. Mistake #4: Looking for villains in all the wrong places. The opinion that large organizations are filled with recalcitrant middle managers who resist all change is unfair and untrue. Often it’s the middle level that brings issues to the attention of senior executives. In fact, the biggest obstacles to change are often those who work just below the CEO—vice presidents, directors, and general managers, who have the most to lose in a change. You need to build a guiding coalition that represents all employees. People often hear the CEO cheerleading a change and promising exciting new opportunities. Most people want to believe that; too often their managers give them reasons not to.
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Excellence in Leadership Execution

Excellence in Leadership Execution

Just as the most dangerous part of a jet flight is going from cruise altitude to landing, making the transition from a lofty vision and innovative strategy to ground-level implementation requires great focus and flawless execution.

Having perspective and strategy is important; however, when we examine business plans that miss the mark, we find that the problem is rarely with the vision or strategy but rather with implementation and execution.

For 30 years, we have worked with senior executive teams on implementing sound strategies. We find that four key elements must be in place:

Operational Excellence for Execution

  1. Assessing and developing the knowledge and competency of the senior leaders. Assess the strengths and competencies of the senior management team and identify potential gaps that could impact implementation. You can learn what gaps in skills or knowledge exist through formal assessments conducted by an experienced third party to encourage candor and objectivity. In other instances, knowledge gaps become apparent through multiple interactions. Leaders must know their strengths and shortcomings and address the gaps, either by recruiting new members or developing the requisite skills or knowledge.
  2. 'Purpose Meets Execution' by Louis Efron (ISBN 1138049093) The senior leadership team must be fully aligned with the intent and direction of the strategic initiative. Although candor and cooperation among senior leaders are crucial, functional heads often pursue their own objectives to the detriment of the strategic initiative. The implementation of key initiatives requires the full alignment and shared accountability of senior leaders. A lack of cooperation is readily apparent. Passive-aggressive behavior in staff meetings, a “not invented here” attitude when presented with new ideas, or a reluctance to embrace change indicate something is amiss. Unless senior leaders embrace the strategic objective and commit to its implementation, the odds for success are low.
  3. The culture must support the initiative and adhere to the essential values set. Certain values are so vital that we refer to them as the Essential Values Set. Culture is largely determined by the values shared by its members. This Essential Values Set is a universal set of principles that govern how the organization defines acceptable behavior. The presence of the Essential Values Set explains why some companies excel in executing strategic initiatives.
  4. The reward and recognition system must be aligned with the outcomes of the strategy. The cash compensation plan, along with other rewards, needs to be aligned with the cross-functional goals of the strategic initiative. Leaders should be rewarded for accomplishments in their areas of responsibility and for their support of cross-organizational initiatives. How aligned is your rewards and recognition process with the strategic initiative?

High-performance Teams are Characterized by Six Healthy Values

  • Performance value. This “make it happen” value focuses on setting challenging expectations and achieving results with accountability. With a healthy performance value, people seek innovative ways to overcome obstacles, encourage teamwork, and accept prudent risk-taking. Without a healthy performance value, people engage in finger-pointing, passive-aggressive behavior, and blame-avoidance.
  • Collaborative value. Collaboration is built upon principles of trust, sharing, open and direct communication, and a belief in the positive intent of team members. Collaboration promotes teamwork, mutual support, and decisions made for the greater good.
  • 'Execution Getting Things Done' by Larry Bossidy (ISBN 0609610570) Change value. The successful execution of key initiatives requires innovation, openness, and positive support for new ideas. Leaders operating from a healthy change mindset act as coaches, as opposed to judges or critics of new ideas. They encourage innovation, risk, and growth, as opposed to dismissing new ideas or diverse points of view. They refuse to allow a rigid bureaucracy or current processes to kill innovatio .
  • Customer value. The customers’ experience is a barometer of overall health. This value can also be defined as how well the organization focuses on a greater purpose-something beyond itself. The best leaders are focused on better serving internal and external customers. Positive and productive initiatives are framed in the context of a customer-value perspective.
  • Integrity value. Integrity refers to the consistency between the senior leadership’s words and their actions. Integrity is crucial for effective strategy execution. Integrity goes beyond simple compliance. At its core, integrity goes to consistency between word and deed to walking the talk.
  • Health value. Senior leadership teams that execute well share a healthy climate characterized by openness, trust, mutual respect, optimism, and hopefulness. This health value enables leaders to generate positive energy, assume the best motives and intentions in others, be more present and listen to one another for different points of view.

These six values position senior leaders as positive role models. If there is mistrust, internal competition, or negative assumptions of motives among senior leaders, the implementation of the strategy will be impaired.

Case Study: Execution Excellence Framework

The new CEO of a cellular telephone company and his executive team grappled with many challenges—one being to determine a strategy for competing in markets dominated by better-financed competitors. The senior leaders concluded that excellence in customer service was the key. They believed that if they could endear themselves to their customers, they could reduce the erosion of their customer base and free up resources to attract new customers. Reducing turnover by improving its service could result in $400 million in additional annual profits.

Here’s how this firm used the Four Elements of Execution to achieve this goal.

  1. Assessing and developing the knowledge mid competency of the senior leaders. They assessed the strengths and capabilities of staff to ensure that those charged with leading the initiative had the requisite skills. Their analysis revealed some gaps in knowledge that would be difficult to develop internally. So, they recruited several new executives with these capabilities.
  2. 'The Art of Execution' by Lee Freeman-Shor (ISBN 085719495X) Senior feeders must be fully aligned with the intent mid direction of the strategic initiative. The success of the initiative hinged on everyone becoming committed to improved customer service. Knowing that employees would be looking to them, senior managers resolved their differences behind closed doors. While dissent and alternative points of view were welcomed in staff meetings, a unified front was required after the meetings.
  3. The culture must support the initiative and live the essential values. Presenting a positive and unified front reinforced the desire to better serve the customer. Although the leaders came from different business units, they put aside their individual needs and collaborated to identify innovative methods for serving the customer. Their ability to coach others and maintain focus on the customer’s experience contributed to the success. Senior leaders held each other accountable to “walk the talk.” They faced many setbacks and obstacles but maintained a healthy climate with an optimistic view of the future and cast a positive shadow.
  4. The reward and recognition system must be aligned with outcomes of the strategy. Senior leaders realigned their executive compensation reward and recognition system to support the collaborative measures necessary to implement the strategic plan.

Improve Your Execution

After two years, the company moved from 7th place to 1st in the JD Powers ranking of Cellular Customer Service and Loyalty. Customer turnover levels were 67 percent lower than national competitors. This resulted in hundreds of millions of dollars in additional profits.

The behaviors of leaders cast long shadows and dictate success in implementing major initiatives. Senior leaders must embrace and model the four key elements of superior execution.

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Organizational Subcultures

It is important to recognize that even an organization’s unified culture is not entirely homogenous; subcultures subsist and each division or unit in the organization sees things from a somewhat diverse standpoint.

'Administrative Behavior' by Herbert Simon (ISBN 0684835827) DeWitt Dearborn and his colleague, the Nobel Prize winner Herbert Simon, had executives from a single company read a case study that was to be discussed as part of a training program. Before the discussion began, they asked the executives to write down what they each saw as the primary problem facing the organization described in the case. As you may expect, the head of marketing saw the problem as a marketing problem, the head of finance saw it as a finance problem, and the head of production saw it as a production problem, and so on.

That is, the different heads of the different divisions in the company tended to perceive the world in a way that was congruent with their own division’s function, and in terms of the culture that their division had developed. This is not to say that they did not share parts of each other’s culture, but they did have views exclusive to their own parts of the organization.

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How to Value the Roles of Leader and Manager

I find it valuable to cut through complexity and distill core insights that are generalizable—they apply to all across a range of situations; transformative—they elevate performance from good to great; and actionable—they guide action.

By identifying the core insights of the roles of manager and leader, you can find the one thing that will leverage everything. We often try to define a role in so much detail that we end up with 15 or 20 competencies. The inference is “you need all of these to be a great salesperson or manager.” People are overwhelmed by the expectation.

You will get more out of yourself if you discover your strengths and capitalize on them. And yet most people still believe that the secret to success lies in fixing flaws. Only 17 percent of people spend most of their time on tasks that play to their strengths.

Managers often get short shrift: Leaders are strategic; managers are just tactical. Leaders transform people; managers just administer things. The perception of the manager is just this low-life waiting for an opportunity to lead. This isn’t true. The roles of manager and leader are different, but both are important.

Role of Manager

The role of a manager is to turn one person’s talents into performance. If you hire great talent and let them run, they will be productive because that’s what talented people do. The manager’s role is to speed up the reaction between the talent of a person and the goals of the company. The manager is the catalyst for performance. The one thing that great managers do is to discover what is unique about each person and capitalize on it—to identify the unique talents in each person and then leverage those talents, treating each person differently based on personality and motivations. They pick up on the differences in people and then put those differences to work.

'Principles: Life and Work' by Ray Dalio (ISBN 1501124021) Rather than try to remedy people’s shortcomings, they focus on maximizing their talents. Their chief responsibility is to turn a person’s talent into performance. Managers influence how long the person stays and how effectively the person performs. Knowing that each person has unique talents and motivations, they seek to understand and leverage this uniqueness. They build their teams to maximize the unique talents and contributions of each person on the team. They treat each person differently based on that person’s talents and motivations. Great managers may standardize the outcomes, but individualize how each person goes about achieving those outcomes. Average managers play checkers; great managers play chess. In checkers all pieces move in the same way; in chess, each piece moves differently. Great managers know the differences in each piece and coordinate the team to take advantage of the individual strengths.

Most managers focus on a person’s weaknesses and address shortcomings. In contrast, great managers grow the person’s greatest strengths. Developing a person’s greatest talent is how to achieve breakthrough performance. Great managers don’t ignore shortcomings, but they work around the shortcomings by changing people’s jobs, allowing them to spend more time where their talent fits best, or pairing one employee with another who has complementary talents.

Great management is not about changing people. Great managers take people as they are and then release their talents. They don’t see people merely as a means to an end; they see people as the end. They are motivated by identifying people’s talents and then developing them. They spend most of their time with individuals, trying to pick out their strengths and then leveraging those strengths. They get the best return from their investment in people by challenging them around their strengths. A strength is something that strengthens you, something that resonates with you, something that you enjoy doing. A weakness is any activity that weakens you. When you are doing it, time seems to go slowly. And when you are done, you feel drained and frustrated. A good manager always looks for what strengthens a person.

Managers also need to know what triggers those strengths in people and their style of learning. How do you trip those strengths? Bill Parcells, former coach of the New York Giants, was asked after winning the Superbowl in 1991 how he had such a great season even though he played two quarterbacks. He said, “You have to know how to trip each one’s triggers.” One quarterback liked to be shouted at. He loved the emotional intensity. The other quarterback would shut down in the same situation. Some people like praise in public and other people want a quiet word in the office, where you tell them how much they mean to you. Some people want you to check-in with them daily other people don’t. Figure out what switch needs to be flipped to get the most out of a person.

People learn in their own style. Good managers notice how each person learns and helps the person learn and adapt. Some people learn by analyzing and they like time to prepare. They like the role-playing, they read the books, they go to classes and they love it. The doers learn by jumping into it. Different people learn different ways.

Role of Leader

As a leader, you need innate optimism, a belief that things could get better, and the ego to believe that you can make that future come true. Many leaders struggle—not because their egos are too big, but because their ethics are too small. The best leaders all have a driving need to be at the helm and move people into the future.

Leadership is about rallying people to a better future. Great leaders get us to feel that the future is possible and better than where we are now. They rally people to help make dreams come true. They turn people’s legitimate anxiety about the future into confidence. They find what is universal or shared among members of a group and capitalize on it. Through their words, images, stories, and actions, they tap into things that all of us share and are unremittingly clear. You don’t need to be passionate, consistent, strategic, or creative, but you do need to be clear and precise.

'Find Your VOICE as a Leader' by Paul N Larsen (ISBN 1943164711) Great leaders are optimists who rally people to a better future. They turn anxiety or fear of the future into confidence by providing clarity around who we serve, what our core strengths are, how we keep score, and what actions we can take immediately. Great leaders do not necessarily have the right answers to these questions—in many cases there are no “right answers”—but they provide answers that are clear, specific, and vivid. Their followers know exactly who they serve, how they will win, how to keep score to know if they are winning, and what they can go do today.

Great leaders are not unrealistic; in fact, they are grounded in reality. However, they believe that things can be better in the future than they are today. They create a vision of this future and rally others to support it. Leaders turn legitimate anxiety over the unknown future into confidence through clarity.

Clarity is the answer to anxiety. Effective leaders are clear. Great leaders think about excellence and reflect on what causes success. They pick their heroes with care. When they give awards and praise others in public, they send important signals about who should be viewed as heroes by others. Great leaders explain why these individuals were selected—who they served, how they scored, and what actions they took. In doing so, they embed these behaviors in the organization. They practice their words, phrases, and stories and communicate in ways that resonate with others. They practice the words that they use to help others see the better future that they imagine. Martin Luther King, Jr.’s famous “I Have a Dream” speech used phrases and images that King had carefully honed over years of practice.

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What is Organizational Culture?

What is Organizational Culture?

Organizational culture is the essence of what is important to the organization. For itself, it stipulates and proscribes undertakings, and it defines the “dos and don’ts” that oversee the behavior of its members.

An organization’s culture serves at least seven important functions:

  • Specifies what is of principal importance to the organization, the standards against which its successes and failures should be gaged.
  • Determines how the organization’s resources are to be used, and to what ends.
  • Establishes what the organization and its members can expect from each other.
  • Makes some methods of controlling behavior within the organization legitimate and makes others illegitimate—specifically, it defines where power lies within the organization and how it is to be used.
  • Selects the behaviors in which members should or should not engage and prescribes how these are to be rewarded and punished.
  • Sets the tone for how members should treat each other and how they should treat nonmembers: competitively, collaboratively, honestly, distantly, or hostilely.
  • Instructs organizational members about how to handle the external environment: aggressively, exploitatively, responsibly, or proactively.
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