What Is The Connection Between Excellence, Culture And Strategy? - Part #3

During the last six to nine months, many senior executives have wanted to visit with me about the subject of operational excellence. All of them know they need it and many wonder what it actually means and how to improve it. 

Whenever this subject surfaces, I think back to Tom Peter’s definition of operational excellence which defines it as a workplace philosophy where problem solving, teamwork and leadership result in on-going improvements or continuous improvements in the organization.

Many executives focus on this subject now because they want their operations to be more efficient or effective. Strategically this idea is translating into a high degree of centralization and standardization within large companies.

Not too long ago, I was asked by a CEO to sit down with each of his direct reports and to ask them the following question: What is operational excellence? And how can we get better at it? 

Later, I presented a summary of all of these one to one meetings to the senior team. What we discovered as a group is that everyone was all over the map about what it meant and how to get better at it. There was no common ground.

After listening to the entire summary and the in-depth dialogue on the subject, the CEO spoke. “First, I don’t think we can get better at this until we all hold a common definition of the term, operational excellence. But more important, I don’t think we can improve operations without having a high degree of customer intimacy. For operations to get better, we need to know our customers’ needs better. It is not efficiency for efficiency’s sake. It is efficiency and effective at the operational level so we can better serve the customer. To take the customer out of the equation is not going to make us better. It could actually make us misaligned with what they currently need and what they might need in the future.”

It was a “blinding flash of the obvious”, using an old Tom Peters phrase, for all of us in the room. Customer intimacy, in its most basic terms, means having the capacity to offer highly tailored or personalized products and services to meet customer needs which yield long-term loyalty, organic growth and increased profits. Furthermore, when culture, strategy and operational excellence are all connected to customer intimacy then the organization can be successful both strategically and operationally. 

So what can a leader do to connect all four of these concepts together?

First, they should read and discuss the following article with their team: “The Hard Truth About Innovative Cultures” by Gary P. Pisano. January-February 2019 issue of the Harvard Business Review. Once they have done this, they can have a tolerance for failure but no tolerance what so ever for incompetence

As all of us know and the above article supports, some days things do not go as planned, and good ideas don’t work. Think Apple’s MobileMe, Google Glass, and the Amazon Fire Phone. The best organizations tolerate failure but do not tolerate incompetence. They recruit the best, and they train them. Then, they set high performance standards for their people, creating a culture that simultaneously values learning from failure and outstanding performance. 

A good start is for senior leadership to articulate clearly the difference between productive and unproductive failures. For example, productive failures yield valuable information relative to cost. From these, we celebrate the learning, not failure. When we do the above, we build a culture of competence. This only happens when there are clearly articulated standards of performance.

Second, leaders need to have a willingness to experiment within highly disciplined and defined parameters. The minute you embrace experimentation, you must be comfortable with uncertainty and ambiguity. They come with the territory. Organizations that experiment, select those experiments based on their potential learning value. As always, there is data and there are feelings. Still, the best leaders know that there are decisions to be made, too.

This week, schedule time to read the above article. Then, on your own define what operational excellence means to you and what customer intimacy means to you. Once you have done this, then define, in your own words, what the difference is between a productive and an unproductive failure. This level of work is hard and very important. It will help you and later your team be very prepared for the future.

Geery Howe, M.A. Consultant, Executive Coach, Trainer in Leadership, Strategic Planning and Organizational Change Morning Star Associates 319 - 643 - 2257

What Is The Connection Between Excellence, Culture And Strategy? - Part #2

It is time we talk about strategy again. I like how Ken Blanchard and Michael O’Connor wrote in their book, Managing By Values (Berrett-Koehler, 1997) that leaders must think like CEOs. For them, these initials stand for the following groups: customers, employees, owners/stockholders (in the non-non-profit world, think funders) and other stakeholders. When we hold this more global perspective, we remember that strategy is not a singular thing but really the sum of the following three concepts:

- it is an extensively premeditated, carefully built, long term plan designed to achieve a particular goal.

- it needs to be adaptable by nature due to unforeseen variables rather than presenting a rigid set of instructions or tactics which has the potential to create organizational vulnerability.

- it serves an important function in promoting ongoing evolutionary success.

In short, strategy is an adaptable and evolutionary plan.

Now as we grasp this perspective, we also must understand the difference between the following two concepts:

- individual competencies refer to a specific person’s knowledge and skills required to fulfill specific role requirements.  

- organizational capabilities are collective abilities of the firm required to execute the business strategy.  

We need to hold this perspective because if we want to build and execute an organization’s strategy then sometimes we work at the competency level and other times we work at the capabilities level. Occasionally, we work at both at the same time. Recently, I have noticed that we need to improve the individual competencies level of this work, not just the organizational capabilities.

Furthermore, there are two two stages and two unique choices within the world of strategy. At the strategy formation or planning level, the determination of strategic intent, including such aspects as an organization’s mission, vision, and goals is very important. Sometimes, this planning work is highly planned, i.e. well defined and determined through a preset and well-structured process. Other times, the planning is more emergent, i.e. unfolding and evolving through a dynamic and less structured process especially during complex times. Aaron Olson and B. Keith Simerson. in their book, Leading With Strategic Thinking: Four Ways Effective Leaders Gain Insight, Drive Change, and Get Results (Wiley, 2015) note this depth of clarity about these elements makes a big different in the quality of the plan and within the culture of the organization.

However, as I think about these important choices, I remember what John Doerr wrote in his book, Measure What Matters: How Google, Bono, and Gates Foundation Rock the World with OKRs (Portfolio, 2018). As they explain, “Ideas are easy. Execution is everything.” And I agree 100%!

In summary, strategy only matters if it leads to purposeful action. So the big question this week is the following: Does your organization’s culture support purposeful action that allows the strategy to move from the paper document into key behaviors at all levels of the organization?

Geery Howe, M.A. Consultant, Executive Coach, Trainer in Leadership, Strategic Planning and Organizational Change Morning Star Associates 319 - 643 - 2257

What Is The Connection Between Excellence, Culture And Strategy? - Part #1

I have enjoyed a lot of wonderful breakfast, lunches and dinners with many different people over the last six months. These times together include some deep listening and very good sharing. Our visits have been interesting and insightful. Now is the time for me to share what I have learned with all of you.

We were at a really good burger place a couple of months ago. The food was good and the conversation was lively when I asked the following question: “What are your expectations of your direct reports?”

He paused in between bites and said, “Good question. My expectations for my direct reports are to drive performance metrics, and to keep me informed of what I should know.”

I thought for a moment and then said, “Metrics are an outcome. They are the result of people making the right choices. The challenge for someone in a leadership position is to recognize that behavior problems almost always precedes quantitative results, according to Patrick Lencioni in his book, The Advantage: Why Organizational Health Trumps Everything Else in Business (Jossey-Bass, 2012). Furthermore, behavioral problems occur long before any decrease in measurable results is apparent.

So, what is the culture or behaviors that would produce those desired results?What is the mindset where everyone makes the right choices?”

You could just see the wheels turning inside his head as he explored the question. After a couple of moments, he responded, “I want everyone focused, doing the right things at the right time and for the right reasons.”

“Good answer,” I commented. “Now, let’s talk about that ….”

Our challenge as leaders is to recognize that organizational culture reflects a set of behavioral norms. Sometimes we agree to them, and sometimes we are not aware of them. For us here today, we need to remember that about 80% of the staff report to a front line supervisor, and about 80% of the staff work side by side with a small group of co-workers. For these particular staff, their front line supervisor and their co-workers, not you as a senior leader, are their world. For them, these relationships are “the company culture”

I believe there are four levels of organizational culture. The first is interpersonal culture which reflects peer to peer relationships. The second is operational culture which reflects the health of the employee to supervisor relationship. The third is strategic culture which reflects the relationship between the supervisor and the senior team. The fourth level is organizational culture which is the sum of all the relationships, i.e. the company as a whole.

What I have learned over the last six months is that we need to focus on improving the interpersonal culture level and the operational culture level. When people think and act clearly at these two levels, then people do the right things for the right reasons at the right time.

This week, reflect on what you are and are not doing to improve interpersonal and operational culture. It is time more people are making better choices and creating better outcomes.

Geery Howe, M.A. Consultant, Executive Coach, Trainer in Leadership, Strategic Planning and Organizational Change Morning Star Associates 319 - 643 - 2257

Maintain Your Perspective About Work

Recently, I was talking with a client about a huge three year project. It involved solving many complex and complicated problems. In order to be both strategically and operationally successful, there would need to be changes made in key systems, structure, people and culture.

Some people involved in this project were eager to charge forward and make it all happen at once. Others, upon learning of it, would be very upset, consider it a waste of time and money, and resist every step of the way. And last but not least, there would be some who could care less about any of it. They just want to go to work, do their job, get paid and then get on with others things.

After this client explained to me the scope and the scale of the project, she asked me a question, “What do I need to remember as we begin this three year journey that I might not be thinking about right now?”

I reflected for a moment or two, and then said, “For now, just two things.

There is a Japanese term for this kind of work. It is called a 10,000 aspirin job. There are going to be a lot of headaches, unforeseen situations and numerous complexities. Some days will just be challenging, difficult and hard.

Nevertheless, there are two things that will make a difference in the short and the long run. First, build a very good team and a very good team environment. The amount of change you are trying to create is not done by individual effort. It will only be accomplished by team work and team clarity.

Second, remember the following insight shared with me many years ago: It’s only work if you want to be some place else. Even when times are tough and people are experiencing some headaches, the bond and strength of the relationships within your team will hold you and the team together. When people are part of a strong team that is making progress and making a difference, then they will not want to be some place else. They will stick to it and work to get through it.

In short, maintain your perspective about the upcoming three years of work. And when you get worn along the way, give me a call and we can visit some more.”

She smiled and thanked me. 

Every day as leaders, we need to create a work environment where no one wants to be some place else. 

Geery Howe, M.A. Consultant, Executive Coach, Trainer in Leadership, Strategic Planning and Organizational Change Morning Star Associates 319 - 643 - 2257

Make a Commitment to Personal Improvement

Since early January, I have been writing about lessons learned from mentors of mine over the course of my career. Today is the final one I want to share with all of you.

We were drinking coffee together and discussing the subject of retirement.

“Once I choose to retire,” I said to one of the older members of my Kitchen Table Cabinet, “I am just not sure what I am going to do with myself. For the last 30+ years, I have been running my own business, traveling, teaching consulting and coaching a wide diversity of people. I have been going, going, going and then some. As I pass the line of 65, I don’t have a clue of what a life of not working full time will be like. What are your thoughts on this subject?”

He paused, smiled and said, “You will really struggle during the early stages of retirement. The pace and scope of all you have been doing has defined your life and work on so many levels. You think that once you retire, you will just move on to the next level of doing. A matter of fact most of your career to this point has been all about doing. Doing this. Doing that. But in the end, it’s just more doing. It will be hard for you at first.

The problem is how you frame up the next step. You think about 65 as a line. Before 65, you work. After 65, you do more but different work. 

As for me, I don’t frame things up in that way. I have watched a lot of men and women retire. Most do not handle it very well but those who do, choose to move from the question ‘What will I do once I am retired?’ to a different and more interesting question, namely ‘What do I want to learn?’. In my opinion, that is the better question and the better way to frame up retirement.

So, Geery, after 65, what do you want to learn? When you retire, you will have more time to pursue this interest. Therefore, now is the time to start exploring.”

I sat there in that coffee shop not too long ago and realized I had been handed an important bit of wisdom.  While I have not found the full answer to the question, I am definitely exploring various options.

This week, I challenge you to ask yourself the question: What do I want to learn? And then, make a commitment to personal improvement. It will be good for you, your family and many others within your circle of influence.

Geery Howe, M.A. Consultant, Executive Coach, Trainer in Leadership, Strategic Planning and Organizational Change Morning Star Associates 319 - 643 - 2257

Know When It Is Time To Leave

Over the course of my career, I have visited with people in a wide diversity of office spaces. Some of them have been the size of a match box and others have been so big you could play a basketball game inside it and still have room for a couple of bleachers.  Some have been opulent and others have been quite humble. What ever the style of the office space, the focus for me has always been the person.

A couple of decades ago, I sat down to visit with the COO of a very large company who had just announced his retirement. During our time together, we talked about the nexus of culture and strategy. We explored how key systems needed to be upgraded as the expectations of the customers changed. We even discussed how the structure of the company may be the problem for why the company was not growing at a robust clip.

Just before we wrapped up our time together, I asked him one more question, “How did you know it was time to retire?”

He reflected for a couple of moments and then replied, “I knew it was time for me to retire and for someone else to sit in this chair when I realized that the things outside the window of this office were starting to interest me more that what was happening inside this office. I knew then that I did not want to give my team and this company anything less than 100% effort. 

So, I talked with my wife and decided to retire. The people who I work with deserve my best every day. If I am giving less than this and am more interested in what is happening outside this office, be that grandchildren, travel, golf or just wanting to sit with a a good cup of coffee and read the paper in the morning, then I needed to move on.

We are a good organization. There are many qualified and well trained people who can do this job. I am not worried. We have done good things on my watch and we have made a difference. It is now time for someone else to step up and rise to the challenges before us.”

We shook hands and each of went on to our next meeting. And right then and there, I realized I had been given an important truth. I have carried it for many years. One day, it will be time for me to retire and to let others carry the torch moving forward.

This week, be mindful of your life journey. If it is time for you to move on, then do it with grace and clarity. There is a big world out there waiting to be explored.

Geery Howe, M.A. Consultant, Executive Coach, Trainer in Leadership, Strategic Planning and Organizational Change Morning Star Associates 319 - 643 - 2257

Take The Steps Two At A Time

Having a home office since 1986 has had its joys and its challenges. For many years, my office was in an upstairs bedroom. My first computer was the one I had used when I was teaching, an old Apple 2C. The monitor sat on a cinder block so it was at the correct eye height and the whole thing sat on a picnic table my wife gave me for my birthday. I had a two drawer filing cabinet and on top of it was my college electric type writer for addressing envelopes and labels. 

For a while we had a single phone line into the house. It was our home line and our business line. My wife or I answered the phone. This worked for a bit but when our children’s friends started to call and talk for over an hour, we realized that we needed two lines into the house. Then, soon after that, we needed another phone line into the house for the newly arrived fax machine.

Slowly, the business grew and slowly we added new things to my upstairs office like a bigger desk and more filing cabinets. When I got a new computer with a real word processing program in it, I thought I had finally made it to the big leagues.

One day, a dear friend and mentor of mine came over for a visit. Sitting around kitchen table together, we visited about my work and his approaching retirement. After listening to all I was doing, especially the multiple days of travel and teaching, he paused and said to me the following:

“You have a lot going on, Geery. This thing you have created has potential and lots of growth written all over it. I could see you doing this for a very long time.

But I want you to remember something. When you go to work in the morning, I bet you take those steps to your office two at a time. You are excited and you are pumped to meet the challenges of each day.

When the day comes that you are not taking those steps two at a time, then sit down and rethink what you are doing. This work will evolve over time. Just make sure you continue, over the course of your entire career, to live and work in such a way that you take the steps two at time.”

This week, I challenge you to create a life where you want to take the steps two at a time. Being fully engaged and eager to make a difference is a great way to live and to work.  

Geery Howe, M.A. Consultant, Executive Coach, Trainer in Leadership, Strategic Planning and Organizational Change Morning Star Associates 319 - 643 - 2257