Three diagrams that synthesize the issues and causes of the current transformations
We need to better identify the transition taking us from an industrial to a post-industrial society if we want to make effective use of the tools that can help us better manage the new complexity.
Here are one hundred events which define the turbulent period we have experienced from 1980 to 2009. In this 30-year period we have watched the societal rupture that we are currently living through develop from a range of causative factors. The list of events is accompanied by a list of one hundred researchers and authors who are the witnesses to these events and whom we have cited in this document.
We can better understand the changes we are seeing and feeling if we analyze the activities through three filters : a technological dimension, an economic dimension and a societal dimension.
The status-update era is changing the annual performance review.
Peter and Maria Hoey With many younger workers used to instant feedback-from text messages to Facebook and Twitter updates-annual reviews seem too few and far between. So companies are adopting quarterly, weekly or even daily feedback sessions.
Not surprisingly, Facebook Inc. exemplifies the trend. The social network's 2,000 employees are encouraged to solicit and give small nuggets of feedback regularly, after meetings, presentations and projects. "You don't have to schedule time with someone. It's a 45-second conversation-'How did that go? What could be done better?" says Lori Goler, the Palo Alto, Calif., social-networking company's vice president of human resources. More formal reviews happen twice a year.
For most companies, employee reviews are still an annual rite of passage. Some 51% of companies conduct formal performance reviews annually, while 41% of firms do semi-annual appraisals, according to a 2011 survey of 500 companies by the Corporate Executive Board Co., a research and advisory firm.
And increasing frequency may not make much of a difference if the performance appraisals are ineffective to begin with, say some. One academic review of more than 600 employee-feedback studies found that two-thirds of appraisals had zero or even negative effects on employee performance after the feedback was given. "Why is doing something stupid more often better than doing something stupid once a year?" asks Samuel A. Culbert, a professor at the Anderson School of Management at the University of California, Los Angeles and the co-author of the book "Get Rid of the Performance Review!"
Some firms have found that the traditional once-a-year review is so flooded with information-appraising past performance, setting future goals, discussing pay-that workers have trouble absorbing it all, and inst
Leading Outside the Lines: How to Mobilize the (In)Formal Organization, Energize Your Team, and Get Better Results, by Jon R. Katzenbach, a senior partner at Booz & Company, which publishes strategy+business, and Zia Khan, vice president for strategy and evaluation at the Rockefeller Foundation. They take a much more fine-grained approach to managing that is based on finding the right combination of the "logic of the formal" and the "magic of the informal."
In the three-part book, the authors focus on how individual managers can use informal connections and conversations to enhance the formal incentives and structures of a company - and, in the process, motivate individual performance and mobilize organizational change. Managers who can draw on both the formal and the informal as required have a high "organizational quotient" (OQ). This is a combination of intelligence quotient (IQ) and emotional intelligence (EQ) that balances disciplined and spontaneous actions, and rational and emotional thinking, depending on the demands of the situation.
The objective is consilience, which literally means a jumping together of the formal and the informal, a creative integration of "both...and" that harks back to Mary Parker Follett, the early-20th-century pioneer of organizational theory. This is the first of several evocative metaphors that the authors use to describe one of the most desirable but elusive phenomena in organizational life - those times when decisions, actions, and emotions jibe with strategic intent, when dynamic routines are constantly being improved upon, when employees are proud of their company, and when the company as well as the members of its ecosystem (partners, suppliers, and customers) all succeed.
Katzenbach and Khan stress that a managerial focus on the informal is not just a matter of being nice. People work and perform much better when they are treated with care and respect as individuals. The c
In chaotic times, an executive's instinct may be to strive for greater efficiency by tightening control. But the truth is that relinquishing authority and giving employees considerable autonomy can boost innovation and success at knowledge firms, even during crises. Our research provides hard evidence that leaders who give in to the urge to clamp down can end up doing their companies a serious disservice.
Although business thinkers have long proposed that companies can engage workers and stimulate innovation by abdicating control-establishing nonhierarchical teams that focus on various issues and allowing those teams to make most of the company's decisions-guidance on implementing such a policy is lacking. So is evidence of its consequences. Indeed, companies that actually practice abdication of control are rare. Two of them, however, compellingly demonstrate that if it's implemented properly, this counterintuitive idea can dramatically improve results.
Listen up, budding Masters of the Universe about to start boot-camp week at business school (and sign away $100,000 over two years). For all the wonderful instruction at places like Harvard, Wharton and my alma mater, the Stern School of Business at NYU, remember that making money involves so much more than columns in a spreadsheet and the ever shifting assumptions behind them. Keep in mind:
1. If it ain't broke, still fix it. One of the hardest decisions business owners have to make is turning their backs on cash when it's flowing. But that's exactly what you must have the courage to do at times to protect your franchise.
Article Controls
EMAIL PRINT REPRINT NEWSLETTER COMMENTS SHARE 2. Unless you end up at Goldman Sachs, forget what you learned about finance. "In a 12-year finance career with large respected companies," says one of my former classmates, who is finance chief for the unit of a large manufacturing firm, "I can count on two hands the number of IRR [internal rate of return], DCF [discounted cash flow] and NPV [net present value] analyses I have completed." He adds: "A career in corporate finance is nothing like what is taught in school. The job is largely to be the conscience of the business--expecting and demanding explanation for decisions and [being] well versed in most topics."
3. Take your financial models with a boulder of salt. "Too often people in business rely upon a model demonstrating projections out 15 to 30 years," says another biz-school mate, now a health care consultant. Really? In school we worked in more modest 3- to 5-year increments, with an understanding that anything beyond that was magical thinking. "Believe it or not," he went on, "I have seen some done out that far for deals [acquisitions] and often for public-private partnerships."
4. Overpromise and try to deliver. Underpromising and overdelivering may work on conference calls with Wall Stree
It's time to think about what companies really are, and to design with that in mind. Companies are not so much machines as complex, dynamic, growing systems. As they get larger, acquiring smaller companies, entering into joint ventures and partnerships, and expanding overseas, they become "systems of systems" that rival nation-states in scale and reach.
So what happens if we rethink the modern company, if we stop thinking of it as a machine and start thinking of it as a complex, growing system? What happens if we think of it less like a machine and more like an organism? Or even better, what if we compared the company with other large, complex human systems, like, for example, the city?
Keeping an organization performing is a constant battle. Every organization is trying to overcome its inertia, to gain momentum, and to become more productive. This battle with inertia means there is constant change-change that people often resist, deny, and frequently become angry about.Ultimately, everyone in the organization wants higher performance. This occurs at its highest levels in spite of resistance to change when people are clear what their team or personal goals are; understand the business outcome that their team or personal goals contribute to; and ensure that each task they do supports these goals. One way to raise the performance of an organization is to help all individuals become more efficient and effective in their daily tasks.
Historically, leaders have tried to develop this effectiveness and efficiency in their people by using two approaches:
A command-and-control approach: Controllers lead their people as if they are herding sheep. Their mind-set is to train their people well enough to be able to control them. It works, but it costs a lot of time and energy.
A knowledge-based approach: It is often assumed that if people have more information, they will be able to do things better based on that information. This is the organizational equivalent of reading a book on golf and expecting to be able to play at the level of a professional. More often than not, it is not a lack of knowledge that blocks performance, but a lack of consistent, accurate implementation of the knowledge that people already have that blocks individuals, teams, and organizations from performing at their best. People in organizations are rarely stupid, but they often suffer interference that blocks their performance.
As we enter the 21st century, the role of "alpha persons" is very much in question. No doubt traditional leadership (and traditionally minded books on how to lead) will continue. But the following seem the best predictions as to how the concept of leadership will develop:
Leadership is for everyone. No doubt some people are better flutists than others, but almost everyone can learn to play the flute. In the modern organization, everyone is a team member and every one is a project manager. So everyone needs to learn and to exhibit leadership.
Leadership involves learning. The leader is one who uncovers new knowledge and knows how to share it with others. More than ever before, knowledge is truly power. More than ever before, leadership will be shown by spreading learning.
Serendipity is defined as the ability to make fortunate discoveries accidentally. There's so much of modern life that makes it preferable to the vaunted good old days - better hygiene products and power steering leap to mind - but in these disposable days of now and the future, the concept of serendipity is endangered. Think about the library.
Furthermore, we've found that contrary to what many CEOs assume, leadership is not really about delegating tasks and monitoring results; it is about imbuing the entire workforce with a sense of responsibility for the business. This applies mainly to knowledge organizations, but even production-oriented companies can benefit from having employees who feel more empowered and engaged.
If abdication of authority is to yield value for the corporation, however, individuals must be self-motivated. CSC Germany does this by allowing employees to work on the one of five topics that best utilizes their talents and excites their interest. This involves joining a topic community, such as the one focusing on strategy and innovation. Issues are discussed in these groups until all participants come to an agreement, and leadership within the groups shifts frequently, settling on individuals who have the most competence in the areas of focus and are accepted by others as leaders.
We call such practices "mutualism." It involves measuring workers not against revenue or other numerical goals, which we have observed to be ineffective as motivational tools, but against qualitative values such as trust, responsibility, and innovation. And it implies that leaders don't dictate vision or strategy; instead, they enable employees to create a common vision through, for example, off-sites for discussion of strategic issues and regular feedback and education. Hitting numerical goals has been the natural outcome.
Relaxation of control can benefit any knowledge company, but particularly in certain circumstances: when the organization begins to miss opportunities because it can't understand or respond to market demands; when work is impaired because employees feel excessively pressured and harbor dissatisfaction; and when crises imperil the business. Then mutualism is the best way to unleash the power of employees' creativity.
We call such practices "mutualism." It involves measuring workers not against revenue or other numerical goals, which we have observed to be ineffective as motivational tools, but against qualitative values such as trust, responsibility, and innovation. And it implies that leaders don't dictate vision or strategy; instead, they enable employees to create a common vision through, for example, off-sites for discussion of strategic issues and regular feedback and education. Hitting numerical goals has been the natural outcome.
Today's myriad interconnected social networks - Facebook, LinkedIn, Twitter etc - mean that most people are already connected in a collaborative way to others beyond their traditional domain. It's a question of how to leverage that in the office. In their HBR article, Ibarra and Hansen suggest four pillars:
1. Play global connector. "The first piece is really how you yourself build a network that allows you to add value collaboratively because you can connect," says Ibarra. "If you are stuck in your function, in your group, in your business unit, in your country, how can you see what's going on out there? How can you see the array of opportunities that could be passing you by?"
2. Engage talent at the periphery. "How do you think about the talent that you are bringing to the table?" Ibarra asks. "Everybody espouses the value of diversity, but saying it and doing it are very different things. We see very clearly that leaders who engage talent from the periphery - and that periphery could be geographical or generational or gender diversity - are going to be much better placed to collaborate."
3. Collaborate at the top first. "A lot of times, collaborations get mired in politics, or groups have great ideas that don't get accepted because the top is divided politically into turf wars," points out Ibarra. "You cannot encourage collaboration on the front line and then not collaborate with each other as a top team."
4. Show a strong hand. "Collaboration doesn't mean consensus on everything," says Ibarra. At some point, the discussion has to end and someone has to make a decision. "You need to understand as a leader when you step back, and then when you do come back in make sure people know who's got the right to make the final decision."
Buy-In
Saving Your Good Idea from Being Shot Down-by John Kotter and Lorne Whitehead
So, you believe in a good idea. You're convinced it is needed badly, and needed now. But, you can't make it happen on your own. You need support in order to implement it and make things better. You or your allies present the plan. You present it well. Then, along with thoughtful issues being raised, come the confounding questions, inane comments, and verbal bullets-either directly at you or, even worse, behind your back. It matters not that the idea is needed, insightful, innovative, and logical. It matters not if the issues involved are extremely important to a business, an individual, or even a nation. The proposal is still shot down, or accepted but without sufficient support to achieve all of its true benefits, or slowly dies a sad death. What do you do?
This is not a book about persuasion and communication in general, or even about all the useful methods people use to create buy-in. Instead, here we offer a single method that can be unusually powerful in building strong support for a good idea, a method that is rarely used or used well, and that does not require blinding rhetorical skills or charismatic magic. We have seen that this method of walking into the fray, showing respect for all, and using simple, clear, and common sense responses, can not only keep good ideas from getting shot down, but can actually turn attacks to your advantage in capturing busy peoples' attention, helping them grasp an idea, and ultimately building strong buy-in.
I had intended writing a series of blog posts in the run up to the pilot launch of The Smart Work Company's social learning platform in September. Turmoil in global financial markets, with the downgrading of the US credit rating and simultaneous shenanigans in the Euro zone, gives focus to the topics I want to explore. The series, Smart Working in Turbulent Times, will include themes that I have talked about before in previous blog posts in a random way. My hope is that this series will pull topics together to create a rationale for smart working, to explore what it is, to make the case for why now (urgently) and to show how smart working practices can be enabled, drawing on researching new ways of working over a fifteen year period and years of practical experience of helping senior executives make the transition to new ways of working. Themes Off the top of my head, the themes will include: What? Context: turbulent times past and present - there are lessons How organisations work (and don't) - relationship dynamics, power, culture, conflict, alliances, psychological needs, performance environments etc Smart principles underpinning design for: Viability (including emotional and psychological well-being) Adaptability Autonomy Integration Collaboration Wirearchy Distributed diversity Collective intelligence Social skills Thinking skills Leadership skills Learning skills Performance environments, including: Cultural and social environment Online place Physical space Whole system of leadership How? All this research and good practice that others have found effective in specific contexts and at specific times cannot be be copied or rolled out. What to do? Draw out principles and interpret for your own situation Create hypotheses about what is happening or what you want to happen What might work? What might enable or prev
Even though most large corporations have a training and development function they are always somewhere on the periphery. For employees, managers and executives alike, training and development is looked on as a nice to have luxury and not as an essential tool of business strategy execution. The general belief is that it helps individuals get better, not the organization as a whole.
In the American and many other Western cultural contexts, individuals are supposed to develop themselves and take responsibility for their own career advancement. The firm has little responsibility to develop employees, relying on the competitive nature of employment and learned self-sufficiency to provide any needed skills. Individual employees as well as managers operate under the belief system that those who take the initiative to learn will and should get promoted. However, reality is often very different with personal prejudices and organizational politics dictating more promotions than merit.
The large innovative move from an established company, or the disruptive startup that become a billion dollar company at the founders first attempt, is the exception. There is no silver bullet, a single thing they did and which we can replicate.
Most of us need to play a longer game if we want to see success. Each time we roll the dice we need to ensure that the odds move a little further into our favour by:
being frugal with our resources
moving to a position where we have a better chance of success
make the most of the opportunities that are presented to us
learning from our previous mistakes
This is post 1 in a series about preparing for the future of work and learning.
When you jump into a heated pool or get into a warm lake in the middle of a hot day- this usually feels nice, right? What about when you jump into an unheated pool or a cold lake? Is it usually a gets your attention, even if you knew the water was cold.
When you think about the future of work, did it ever make you feel like you were jumping into cold water? If not, you probably haven't considered what this means for you. It's a big change.
Most of us are experiencing the changing workplace environment at some level while others are fully immersed.
In order to build your skills or the skills of others for work of the future, you need to understand how the future of work is changing.
Here are 19 Resources to help to gain a better understanding of this change.
We need to better identify the transition taking us from an industrial to a post-industrial society if we want to make effective use of the tools that can help us better manage the new complexity.
Here are one hundred events which define the turbulent period we have experienced from 1980 to 2009. In this 30-year period we have watched the societal rupture that we are currently living through develop from a range of causative factors. The list of events is accompanied by a list of one hundred researchers and authors who are the witnesses to these events and whom we have cited in this document.
We can better understand the changes we are seeing and feeling if we analyze the activities through three filters : a technological dimension, an economic dimension and a societal dimension.