Monday, September 28, 2009

The Union of Evolution and Strategy - Part #1

THEME: Fall 2009 From Vision to Action Executive Roundtable Report

FOCUS: The Union of Evolution and Strategy - Part #1


Monday morning: September 28, 2009


Dear friends,


This past week a marvelous group of people gathered together for the Fall 2009 From Vision to Action Executive Roundtable. It was a great time as we explored a diverse set of topics and engaged in many healthy and thought-provoking strategic dialogues. To include the rest of you who could not come, I have decided to spend the rest of the fall summarizing what we explored.


First off, the recommended reading for the Fall ‘09 Roundtable was the following: Collins, Jim. How the Mighty Fall: And Why Some Companies Never Give In, Harper Collins, 2009. This is a great resource for building common perspective and understanding. It continues the research Collins presented in both Built To Last and Good to Great. It is particularly important to read or reread it this fall as many companies have the potential to make the wrong decisions and thus enter into a spiral of decline.


With this book as a framework to our time together, I began the Fall ‘09 Roundtable exploring four key principles based on the research and writings of Richard T. Pascale, Mark Millemann and Linda Gioja in their book, Surfing The Edge of Chaos: The Laws of Nature and the New Laws of Business, Three Rivers Press, 2000.


Before I introduced the first principle, I explained that many organizational change patterns come from a social engineering background. From this perspective, many leaders assume that they are the head of the organization, and the organization is the body. They assume that in order to be successful all intelligence is centralized near the top of the organization. Next, many organizations and their leaders follow the premise of predictable change, namely that the implementation plans are scripted by a single senior executive or the senior team on the assumption of a reasonable degree of predictability and control during the time span of the change effort. Finally, many leaders follow the assumption of cascading intention, namely that once a course of action is determined, initiative flows from the top down. When a program is defined, it is communicated and rolled out through the ranks. Often, this includes a veneer of participation to engender buy-in.


As I pointed out, these assumptions work fairly well when the solution is known in advance and an established repertoire exists to implement it. However, given the current social and economical environment, these assumptions are, for the most part, obsolete. Therefore, one must ask the following question: What does it takes to be a successful leader and a successful company in this time of constant turmoil and ambiguity?


“Two imperatives govern survival in many industries today,” writes Richard Tanner Pascale in the spring of 2001. “The first requires agility in the face of high level of strategic ambiguity. The second is a shift in culture and capability from slow, deliberate organizations to forms that behave like living organisms, fostering entrepreneurial initiatives, consolidating learning and moving rapidly to exploit winning positions in the marketplace.” As he continues to explain, “Over many millions of years, nature has devised strategies for coping with prolonged periods of gradual change and occasional cataclysms in which only the most agile survive.”


The first principle we explored at the Fall Roundtable was the following: “Equilibrium is a precursor to death.” Pascale explains it this way: “When a living system is in a state of equilibrium, it is less responsive to changes occurring around it. This places it a maximum risk.” This principle comes from an obscure but important law of cybernetics called The Law of Requisite Variety. FYI: cybernetics is the science of communication and control theory that is concerned especially with the comparative study of automatic control systems as in the nervous system and brain and mechanical-electrical communication systems. The Law of Requisite Variety states that the survival of any organism depends on its capacity to cultivate (not just tolerate) variety in its internal structure. As he explains, “Failure to do so leads to inability to cope successfully with variety when it is introduced from outside.”


A wonderful example of this is a fish in a bowl. Here, it can swim, breed, and obtain food with minimal effort. There are no predators, but at the exact same time the fish is very sensitive to the slightest disturbances. On the other hand, fish in the sea work harder to sustain themselves. They have to evade many threats and can cope with more variations. Therefore, they are more robust when faced with change.


Now, equilibrium is a precursor of disaster must be assessed in the context of scale and time. In a small scale and a short time period, equilibrium is desirable. However, in a large scale, and long time period, equilibrium is hazardous because the environment is always changing. Furthermore, prolonged equilibrium dulls an organizations “to arouse itself appropriately in the face of danger.”


Therefore, one must ask the following question: “Why don’t all living systems spiral into the thrall of equilibrium and die?” The answer lies in two countervailing forces of nature, namely the threat of death, the eternal Darwinian struggle for survival, and the promise of sex, the recombination that introduces genetic diversity


According to Darwin, species do not evolve of their own accord. They change because of forces, indeed threats, imposed on them from the environment. This is caused by “selection pressures.” These selective pressures increase during periods of radical upheaval. Thus, when challenged to adapt too far from their origin and are unable to do so, a species will disappear. Sometimes, a species can do an “ecological upgrade” via having the ability to mutate and survive. The result is that they can fit better into the new environment.


The other solution is to these challenges is the promise of sex. Sex is nature’s second defense against stagnation. If being homogeneous creates vulnerability, then through sex there is the possibility of structural recombination which maximizes diversity. The classic business example of this element is when we routinely bring in outside people to work for the company. This “fresh blood” brings in a problem, too. We forget that external DNA challenges the existing social order. Often, the result is that the corporate body will identify the “foreign influences” and seek to neutralize them. In nature, these are called “equilibrium enforcers.” There are many of them out there right now.


This week, reflect on the principle that “equilibrium is a precursor to death”, and discuss this concept with your team.


Have a great week,


Geery


Geery Howe, M.A.
Consultant, Executive Coach, Trainer in
Leadership, Strategic Planning and Organizational Change

Morning Star Associates
319 - 643 - 2257

Monday, September 21, 2009

People management

THEME: Transformation in the Midst of 2009

FOCUS: People management


Monday morning: September 21, 2009


Dear friends,


Performance management and managing talent are the new buzz words for the fall. They are hot topics in every corner office in the country. While the best companies began working on this back in ‘05 - ‘07, if not before, every one else has hopped on this band wagon now and started to focus on these issues. I routinely get calls from current and perspective clients where the major problem is the lack of a performance management system. But, if the best companies were working on this nearly 4-5 years ago, what are they doing now?


As I wrote in last week’s Monday Thoughts, the best are building community. In particular, they are attempting to build and maintain healthy social relationships and networks. Still, when I reflect, visit and dig into what exactly the senior executives are doing, I discover that they also are returning to some important but not necessarily flashy or best seller level work, namely redefining or rebuilding clarity about mission and purpose.


We live in a world which has been shaken, if not stirred, during the last 12 months. People have been in denial about our interconnectedness and have been moving at rocket speed for so long that the recession over the last 12 months has really shaken up their perception of themselves and their world. As a result, some people are feeling overwhelmed and depressed. Others are numb from it all. Some are keeping themselves busy in order to maintain their denial. Finally, those who are still employed after all of the layoffs and restructurings, are attempting to stay under the radar screen. They are survivors and they are swamped by doing all of the work of others plus their own piles.


The big question many are asking this month is simple and complex: “Why?” In a fragmented world where hope is lost and struggles abound, many people are questioning their own self-worth and the worth of the work they are doing.


Here is where performance management needs a sound foundation because having a workable system will not make a difference unless there is a clear reason for why we do what we do. In successful companies, clarity of mission or purpose is the bedrock of everything else, especially people management. It creates focus and clarity. When combined with a well designed set of core values, it can help people not only know what to do and how to do it, but also why we do what we do.


Recently, I was visiting with a new manager at a company I have worked with for many years. I asked him what he had learned after 6 months. He said to me that the mission and core values are talked about at every meeting. “They are not words on the wall around here,” he explained. “They are really used to make decisions.” I smiled because I find this happens in all of the best organizations. It also is the critical difference to making performance management work so well. When a matrix for decision making is in place, then a performance management systems works so much better than if it is just a system for setting goals and checking on goals.


This week, go back and review how you are creating clarity about the mission of your organization. Also, continue to talk about mission and core values as you build or rebuild your organization’s performance management system.


Enjoy your week,


Geery


Geery Howe, M.A.
Consultant, Executive Coach, Trainer in
Leadership, Strategic Planning and Organizational Change

Morning Star Associates
319 - 643 - 2257

Monday, September 14, 2009

Stakeholder Engagement

THEME: Transformation in the Midst of 2009

FOCUS: Stakeholder Engagement


Monday morning: September 14, 2009


Dear friends,


For years, I have sat in meetings, listening to executives talk about the importance of connecting with external stakeholders. I have also listened to them discuss how to connect better with employees. In each meeting, the desire to have a deeper relationship is genuine, and the recognition that making a connection of this nature is important. But, often the end result is bogus events or very lame initiatives.


Henry Mintzberg, the John Cleghorn Professor of Management Studies at McGill University in Montreal, writes a wonderful article in the July-August 2009 issue of the Harvard Business Review called “Rebuilding Companies as Communities.” As he explains, “Beneath the current economic crisis lies another crisis of far greater proportions: the depreciation in companies of community - people’s sense of belonging to and caring for something larger than themselves. Decades of short-term management, in the United States especially, have inflated the importance of CEOs and reduced others in the corporation to fungible commodities - human resources to be ‘downsized’ at the drop of a share price. The result: mindless reckless behavior that has brought the global economy to its knees.”


Mintzberg notes that the critical element to building or rebuilding community is with middle managers. He believes they are the ones “who see the connections between operations and strategy” and “can be instrumental in rebuilding a sense of community in businesses.” He also is a strong proponent of building trust in the work place and the development of a “robust, compelling” culture.


When I reflect on the successful companies that I have worked with during the last 12 months, it has become exceptionally clear to me that they are focusing now on midlevel managers. The best were doing this work before the recession and it is very clear that they will continue to do this work after the recession. In particular, they are expanding the knowledge and skill sets of their midlevel managers in the following manner.


First, they are routinely entering into strategic level dialogues with them. Starting in small groups, they are visiting about what the company is doing and why. They explore the trends that are transforming the organization and the ones that are emerging. This is not a once in a blue moon exercise but a regular process that is done, when possible depending on the size of the company, in a face to face manner. It is an investment that yields very sound results over time.


Second, rather than thinking that the CEO and the senior managers have all of the answers, the best companies are engaging their midlevel managers and front line people in proactive problem solving. This level of tactical and strategic level reflection and action generates trust on many different levels and as well as expands perspective.


Third, they are dealing with their problem people and problematic systems. Remember Kevin Cashman’s insight: “Leaders get what they exhibit and tolerate.” From my perspective, the same is true with companies. If they do not deal with their toxic people, they will not see the rise of a purpose filled community and a new and more healthy level of interaction between all stakeholders.


Finally, they have the courage to continue their own learning. The phrase “lifelong learning” is not an abstract concept in the best companies this fall. They understand that reflection and learning generate clarity and perspective. They also create the bonds that unite people when the learning is done together.


This week, step back from the work of the moment and ask yourself how you are creating community in the workplace. If we want to create a greater level of engagement, we, ultimately, have to build a work place where caring for each other and the quality of the work we do is paramount to success.


Have a great week,


Geery


Geery Howe, M.A.
Consultant, Executive Coach, Trainer in
Leadership, Strategic Planning and Organizational Change

Morning Star Associates
319 - 643 - 2257

Tuesday, September 8, 2009

Customer Service

THEME: Transformation in the Midst of 2009

FOCUS: Customer Service


Tuesday morning: September 8, 2009


Dear friends,


As we approach the one year anniversary of this current recession, some organizations are still lost and struggling. Like deer in the proverbial headlights, they are close to panic. Fear abounds and clarity is lacking.


Other companies are beginning to see some light at the end of the tunnel and praying it is not the arrival of another train. They are entering this fall with a touch of hope and optimism. For them, flat is the new up and they are delighted to still be in existence.


As all of this is taking place, I am invariably curious about the companies who are doing well in spite of all that has happened. These organizations and their exceptional leadership teams are focused, and on track to meet their short and long term goals. They understand what is happening and yet remain dedicated to being successful. As John Roederer and David Christensen reminded me when I spoke last week to all of the teachers and staff at the

Mount Pleasant Community School District, their motto is simple: “high expectations, no excuses.” I like this statement because it is so direct and clear.


When I look at the successful, high expectations and no excuses companies and organizations at this time period, I note that their success revolves around the quality of their customer service. Now for decades we have known that quality customer service is a key factor in organizational success. And there have been endless seminars, consultations, workshops and books printed to prove or sell this point. But I believe there is a difference that is critical to the current success that some companies are experiencing.


The best companies now have moved beyond providing good customer service and are instead partnering with customers and their social networks. While this may seem like I am playing with words, I believe there is a profound difference between providing good customer service and partnering with a customer. In the former, the focus is on what we offer and what we do. We think up what is best and they follow us. The customer is the recipient of our efforts and actions. In the later, the focus is on how we mutually create the right solutions given their challenges or problems. Rather than assume that all intelligence is centralized with the provider, a partnership is a based on respect and understanding. In a partnership, we co-create the solution and then co-create the implementation. Through partnership, we generate more sustainable and less transactional solutions and interactions.


This week, step back from the piles of paperwork, meetings and e-mail. Reflect on what partnering with consumers and customers plus their social networks would look like in your circle of influence.


Have a fantastic week,


Geery


Geery Howe, M.A.
Consultant, Executive Coach, Trainer in
Leadership, Strategic Planning and Organizational Change

Morning Star Associates
319 - 643 - 2257