Change or Die

November 10, 2008 By Leave a Comment

Perhaps it is human nature, but we tend to eschew change either in our personal habits or in business settings until we are faced with mortality.

In organizations, most significant change occurs during times of crisis when the threat of extinction sufficiently motivates individuals and groups to consider changing long-standing ways of doing things.   The crisis brings into stark focus the fact that it is easier and less costly to accept or embrace change than it is to suddenly become extinct.  Unfortunately, by the time this clarity is achieved at the top leadership levels, it is often too late.

As difficult as it is to follow the news everyday, we are living and working through a period of time when the extinction of firms and industries is taking place in front of us, like some business simulation game gone horribly wrong.  The game unfolds like this: focus only on short-term results, add in a measure of personal greed, consistently make the wrong decisions and act shocked as the results spiral out of control to the final act….a low probability of success, last ditch effort gambit (or bailout).

For some, the distance from the top of the Mount Olympus to the graveyards and swamps below is fast and furious.  The suddenness and rapidity of the fall is shocking, but perhaps easier to digest than those firms that have systematically planned their own demise step-by-step as they move from Masters of the Universe to what will soon be footnotes in our history books and business texts.

As in life, there are no guarantees of survival…there is no prescriptive formula that says “if you do X then you survive and prosper,” but there are methods to improve your odds.

How to Improve Your Odds of Survival

  • Senior leaders must embrace the fact that survival and prosperity occur only at the pleasure of customers.  Instead of giving lip service to the importance of customers, you need to develop systems to constantly seek out, understand and translate into actions the Voice of the Customer.  This is remarkably difficult to do in practice and requires for many an impossible shift in culture and values.  Nonetheless, you must change or die.
  • Senior leaders must embrace the fact that without motivated, dedicated employees they have nothing.  There can be no doubt that satisfied, engaged, respected, informed employees are essential for survival and success.  Why then are our systems and our managers and leaders so often at odds with what it takes to create an environment where employees will gladly give their best.   The poor leadership habits that are vestiges of another era must change or you will die.
  • Call it total quality, performance excellence or whatever you want, but you must embed the notion of high performance and all that it takes to achieve it into the DNA of your organization’s culture.  Success can breed success or it can give birth to complacency.  An unyielding focus from the firm’s leaders on creating a high performance culture is required.  This means that the fire-fighting mentality must stop, clear performance/quality priorities  established and the systems developed to allow these to succeed and for people to learn in the process.  You must change to create a learning organization or you will die.

The Bottom-Line for Now:

Change or die.  It’s that simple.

Filed Under: Crisis Leadership, Leadership, Leading Change Tagged With: , , , , , , , , ,

Does Your Dashboard of Performance Measurements Include a Warning Light?

November 7, 2008 By Leave a Comment

Count me as one of the last idealists.  Or perhaps the last of the naïve idealists.  In a world filled with Quality Management Systems and Performance Measurement techniques backed by legions of people trained to implement and sustain quality performance, it seems reasonable to me that organizations are capable of not only keep themselves from imploding, but that they are armed to the teeth with tools to ensure prosperity beyond the wildest dreams of  Dr. Deming.

As an aside, Dr. Deming once famously indicated that it was his hope that his legacy was to keep U.S. companies from committing suicide.  Perhaps it is good that he is not here to see the firms elbowing each other out of the way in an attempt to get to the front of the line on the edge of the cliff.

  • The U.S. auto companies are almost finished carrying out their joint suicide pact in a world where the rules for success as an automobile company are on display for everyone to see.
  • Motorola, an icon of U.S. electronics has systematically destroyed itself by flailing and flailing in the mobile device (read: cellphone) world, and stands a reasonable chance of failing to survive without drastic action.   (See my earlier post on the Dollar Bill Auction to get a feeling for Motorola’s problems.)  The fact that Motorola is a Baldrige winner, one of the founding fathers of Six Sigma and an organization staffed with brilliant engineers, yet it cannot seem to engineer success is both puzzling and frustrating.
  • Earlier this week, Boeing indicated that they would again delay the launch of its now several years late and much hyped 787 Dreamliner.  The article indicated that the latest problem had to do with quality issues related to a new type of fastener required for the high tech and lightweight materials being used in the plane.  The advance sale of 900 of these puppies at $178 million a piece and the expected 20% fuel consumption savings has customers hopping mad over this latest in a series of seemingly endless project management and supply chain problems.
  • Financial services, banking, investment banking.  Ugh.  These icons of risk management succeeding in maximizing risk beyond their wildest expectations.

How does this happen in a world filled with balanced scorecards and legions of certified quality professionals constantly measuring, monitoring and striving to improve performance?  I suspect that my own answer is that while we have ample tools available for our use in building, the one tool that we haven’t yet mastered is staring back at us in the mirror.

In discussions and lectures with the up and coming generation of leaders, there is widespread cynicism over the intentions and the capabilities of many of their firm’s senior leaders.  There is little faith expressed that their leaders understand their firm’s key drivers and little confidence that the leaders are taking actions and measuring performance based on anything other than preconceived notions of what they think is right.  Fewer organizations than you might think are doing anything to engender employee satisfaction…which is ironic given the mountains of data that indicate that employee satisfaction flows through to customer satisfaction and strong financial performance.

This current generation of senior leaders is failing, and the very imbalanced scorecard is visible all around us.  The business cycle is one thing, but our problems go way beyond the business cycle to our preconceived notions of how to lead, how to run businesses, how to fuel innovation and how to create an environment where talent and calculated risk-taking are carefully cultivated.

Many organizations are hives of activity with no vector and the output is chaotic. Firms and top leaders need to quit guessing and start using the tools available to identify key business drivers and to measure and monitor the efforts and outcomes of focusing on those drivers.

The Bottom-Line for Now:

There’s nothing like a good old-fashioned crisis to engender creativity.  Well, we have one.  In spite of the difficulties, it’s a great opportunity for organizations and leaders to quit paying lip-service to cliché’s like customer-satisfaction, performance excellence and quality.  It’s a big world with a growing population and while the forecast is stormy now, the seas will eventually calm and the sun will shine.  It will be interesting to see who has the courage and fortitude to do the things necessary to make it through the storm.  Even money that we find a whole new generation of leaders in the process.

Filed Under: Crisis Leadership, Leadership, Leading Change, Surviving Lousy Leaders Tagged With: , , , , , , , , , , , , , , ,

Does Your City Government Treat You Like a Customer?

October 31, 2008 By Leave a Comment

This is my pre-election post on government, and I promise to stay focused on performance and not politics.  There’s enough hot air being expended by the candidates and pundits and I don’t need to add to the global warming.  However, it does seem like a good time for all of us to evaluate the return we are getting from government and frankly, ask for more.  And by more, I don’t mean more money or even government. I mean quality, performance, results, and yes, even a bit of good old-fashioned customer treatment.

A great example of government delivering on its responsibilities for its customers…yes, I said customers, is 2007 Malcolm Baldrige Award Winner, Coral Springs, Florida.  The city of Coral Springs won a Baldrige Award for Performance Excellence, a feat that is remarkable for even the best of businesses.

A little bit of background on this post.  I am working with a talented group of MBA students at DePaul University in Chicago studying the Baldrige program as a framework for performance excellence.  We are looking at the practices and results of great companies in all sectors of the economy,  and the idea of performance excellence in government seemed like a fitting pre-election topic.  As a group, we struggled to recall if and when we had ever felt like “customers” much less “satisfied customers” in our dealings with our community governments.

As an aside, most people mistakenly associate Baldrige with just quality, when in fact it is one of the most comprehensive programs in the world in challenging and guiding organizations to become great at creating value for stakeholders.  Of course, quality in all facets is at the center of this high performance formula.  Coral Springs is the only municipal government to win this award to-date, and offers some powerful lessons for all of our communities as we head to the polls to elect our leaders next week.

A few noteworthy points:

  • Coral Springs truly views its citizens and businesses as customers and designs all of its services to maximize customer satisfaction.  From Saturday hours to their “City Hall in the Mall” facility that provides added convenience for people going about their normal business.
  • The city is a model of strategic planning effectiveness, engaging stakeholders in the development of a strategic plan and importantly, the development and execution of this plan around clearly defined goals and objectives.
  • Continuous improvement is inherent in this community’s emphasis on measurement and control of critical processes.  From customer satisfaction to employee and volunteer satisfaction, to focusing on measuring, monitoring and improving around the processes that create value for citizens and businesses, Coral Springs runs like you would expect the most quality conscious business to run.
  • The results are clear and visible for all to see in the form of ongoing reporting of key performance indicators to remarkable achievements in delivering what the customers deemed important in a high-performance community.  From schools to traffic to safety, the community appears to have achieved results that most communities will envy.

The Bottom-Line for Now:

If you are intrigued and want more tangible information on what a city government looks like when it clearly identifies its customers and holds itself accountable to creating value for those customers, take a look at the Baldrige Video at the city’s website. Do yourself a favor and watch the long-form of the video, preferably before you head off to the polls to elect or re-elect your city officials.  Better yet, send these officials a link and ask them if they understand who their customers are and what you expect.  Perhaps if we all hold our officials accountable, we might just get a reasonable return for our investment.  About now, any form of positive return would be good.

Filed Under: Uncategorized Tagged With: , , , , , , , , , ,

Surviving and Prospering Under a Weak Leader

October 21, 2008 By Leave a Comment

It’s not secret that complaining about the boss is part of the culture of many teams and organizations.  The person in charge is an easy target and a certain amount of healthy griping about the boss may be cathartic for his or her subordinates.  It creates a common bond on teams where any form of bonding can help strengthen relationships and possibly performance.

When working with clients in consulting environments or working with teams in workshops, I tend to tune out background boss chatter until the tone and content of the conversation crosses what I call the Performance Line. This line is crossed when it becomes clear to me that the performance of an individual or a team is being held hostage by a weak leader.

In my recent post, Weak Leadership at the Top Derails the Pursuit of Performance Excellence, I characterize the problem as follows: Instead of overwhelming their associates with strict orders in pursuit of rigid targets, they (weak leaders) default on their responsibility to set direction in a poorly constructed attempt to create an environment of empowerment. The results of this approach include endless discussions without resultant actions and massive frustration of well-intended personnel that want to move projects and ideas forward.

If you are working for someone that resembles this description, it can be a truly debilitating experience, especially if your nature is to drive and to innovate and experiment in pursuit of success.  Working for a weak leader can make you feel like you are running the Boston Marathon with your feet permanently encased in concrete.

I’ve worked with teams to identify ideas to help people break out of the concrete shoes created by a weak leader.  Here are some of the suggestions that they’ve come up with as they’ve talked through this dilemma.  Perhaps one or more of these will work for you.

Five Non-confrontational Suggestions for Coping and Even Prospering Under a Well-Meaning but Weak Leader

1. Make the leader the hero.  Not all weak leaders are bad people, and sometimes a dose of self-confidence is just what the doctor ordered.  Talk with this individual, paint a picture of how things will be different when the initiative in question is successful.  Show that you and your team have done a good job isolating and planning for the risks, and tie the expected outcomes back to organizational objectives or in the case of nonprofits, organizational missions.

2.  Build Coalitions Across Your Peer Group.  A weak leader tends to create a vacuum of decision-making.  This vacuum can be filled by the leader’s subordinates aligned around the common need for action.  This is not a confrontational coalition, but rather a working coalition that moves things forward in spite of the leader.

3.  Recognize the Psychology of the Weak Leader and Use Judo on It.  The weak leader syndrome is frequently a function of a lack of self-confidence, fear of having to say no to a subordinate and upsetting them, and perhaps fear of team mistakes shining directly on the leader.  This same person has a need to succeed, a desire to be liked and wants to feel that he or she has a voice in the direction.  Leverage this leader as you would a counselor.  Ask for help in framing solutions (even if it has already been framed), and make the leader very genuinely feel like an advisor and coach.  Make it comfortable for him or her to give feedback, and encourage this at every opportunity.  Involve the leader in brainstorming or in status reviews and do an extraordinary job of highlighting progress and or problems and how they are being handled.

4.  Coach the Leader. In spite of the lofty position, top leaders are often hungry for feedback and interested in receiving coaching from people that they trust.  Create opportunities for discussions that are not all about you.  If the leader provides an opening (many will), ask a few open ended questions about how things are going, what it’s like to deal with the Board etc., and shut up and let him or her talk.  It is amazing how lonely it can be at the top, and this act of listening can do a great deal of good in gaining the trust of a leader.

5.  Learn to Understand the Priorities of the Leader. Applying several of the approaches above will help you understand the leader’s individual priorities (personal and professional).  This knowledge is priceless if you and your peers use it to help the leader meet his or her targets.

The Bottom-Line for Now

Learning to manage your team leader takes time and requires extraordinary care and handling.  Being indecisive and failing to set direction are big shortcomings for a leader, but leaders that carry these attributes are all too common. You and your peers can either let the water-cooler complaints dominate the daily agenda or you can do something about it.  Teams and individuals that have leveraged some or all of the suggestions above have reported some nice successes.  No complete cures, but some nice successes and sustained progress in the right direction.  When your feet are cast in concrete, progress of any kind is good.

Filed Under: Decision-Making, Leadership, Leading Change, Surviving Lousy Leaders Tagged With: , , , , , , , ,

Weak Leadership at the Top Derails The Pursuit of Performance Excellence

October 20, 2008 By 2 Comments

While some top executives err on the side of asserting a dictatorial style of leadership that poisons the working environment and stifles independent action, in my experience, many more struggle with just the opposite.  Instead of overwhelming their associates with strict orders in pursuit of rigid targets, they default on their responsibility to set direction in a poorly constructed attempt to create an environment of empowerment. The results of this approach include endless discussions without resultant actions and massive frustration of well-intended personnel that want to move projects and ideas forward.

This laissez-faire top leadership style is particularly problematic when teams are facing vexing problems: a new strategy vector, the need to change imposed by external forces or a new operating initiative (e.g. a quality program).  At the point in time where resolve is required to step off the cliff in pursuit of the new initiative, this leader steps back and waits for the group to agree to jump. And waits, and waits, and then waits some more, while the group endlessly debates what it means to jump.  Committees are born, research initiatives established, and political agendas developed and asserted.  And still, the top leader waits, fearful that asserting authority will undermine the independent thinking and free spirited structure of the team.  What a disaster.

Don’t misinterpret my tone as an indictment of empowerment and the need for self-directed work teams at the senior level. I believe that the best performing teams have a wide berth when it comes to identifying problems and developing and implementing solutions.  However, this type of effective team culture comes as a result of a conscious decision to empower.  Inherent in this conscious decision is the understanding of all parties that there is accountability for making progress and for ultimately improving the organization.  This is very different from the form of leadership where the lack of a decision and lack of responsibility for action is the permanent outcome.

I cannot speak with certainty about why some top leaders suffer from a chronically weak leadership and decision-making style, however, I suspect that it has a lot to do with a concern for upsetting people and a general discomfort with giving feedback.  Top leaders are most definitely not immune from the same challenges that everyone else faces when it comes to conducting tough discussions with others. Top leaders want to be liked, they want to be respected and they want their direct reports to feel good about what they are doing, where they are working and who they are working for.   All of these provide good reasons for not upsetting the apple-cart in the mind of the top leader.

The Bottom-Line for Now:

There are no magical cures for the top leader that lacks the resolve to assert direction, require action or give feedback to under-performing teams or individuals.  Coaching can help if the individual recognizes his or her shortcomings and truly wants to change.  And while some top executives are willing to go down this path, too many are beyond the point where they think that they need to improve.  After all, they are in charge.

Next: How to survive if you work for a weak leader.

Filed Under: Decision-Making, Leadership, Leading Change, Surviving Lousy Leaders Tagged With: , , , , , , , , ,
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