Gary Hamel offers a post well worth reading on “Why Success Often Sows the Seeds of Failure,” in his Management 2.0 blog at the Wall Street Journal. He takes some tough and well-earned shots at the narrow-minded thinking of executives that foments the eventual demise of formerly good organizations.
In my opinion, the habits and traps that bedevil formerly successful companies also exist in those less-than successful organizations. Regardless of starting point, the tendencies and habits of ineffective executive leadership are not hard to see. In theory, they shouldn’t be hard to call out and change. However, we don’t. Why not?
A few of Hamel’s observations:
Hamel: “Years of continuous improvement produce an ultra-efficient business system—one that’s highly optimized, and also highly inflexible. Successful businesses are usually good at doing one thing, and one thing only. Over-specialization kills adaptability.”
Art’s Comment: Motorola (Cellular) is my poster child for this one. This early adopter and advocate of Six Sigma become great at providing playgrounds for legions of engineers to create a smorgasbord of products that no one wanted or wants. Processes were golden, but no one had a clue about the customer or what competitors were doing.
They hit a low when the new CEO brought in to turn-around the Cell division (success doubtful) gave a phone to his wife and after trying to use it she gave it back, indicating (paraphrase) “If I have to use a manual to figure out how to use the phone it is too complicated.”
Hamel: “Long-tenured executives develop a deep base of industry experience and find it hard to question cherished beliefs. In successful companies, managers usually have a fine-grained view of “how the industry works,” and tend to discount data that would challenge their assumptions. Over time, mental models become hard-wired.”
Art’s Comment: I’ll pick on the hiring authorities for this one. Many boards and management teams demand that hires walk in the door with such precise level of industry and sometimes technology knowledge, that they guarantee Hamel’s hard wiring. Entire industry trade talent over time and ensure that the same bad-old ideas and ingrained biases of the industry remain in place, stifling creativity.
Hamel: “Caretaker executives who’ve never been entrepreneurs and have never built something out of nothing are prone to view success as an entitlement, rather than the result of innovation, gut-wrenching decisions and perseverance. Isolated from the bleeding edge of change by subservient minions, they start believing their own speeches.”
Art’s Comment: Wow! That’s a lot to take in in one sentence. Amen to the need for executives to be faced with the challenges to build and innovate and to feel the pressure of Hamel’s self-described gut-wrenching decisions. Nothing like a good dose of real-world accountability to knock some hubris out of the leader.
It seems like the auto companies, especially GM, missed this memo.
Why Can’t We Tell the Emperor About the Lack of Clothes?
It’s easy and fun to pick on the people in charge. They are big, easy targets with plenty of faults to single out. The bad habits, poor attitudes and ego issues that Hamel points out are painfully easy for all of us to see. Yet time and again we allow ourselves to be blinded and made deaf and mute by the light and actions coming out of the executive suite.
Perhaps part of the cure for what ails us is for people to screw up the courage to talk about problems and pursue actions to fix them. Maybe the revolution doesn’t start in the executive suite
My friend and a sage leadership advisor, Wally Bock, writes frequently at his Three Star Leadership blog about the power and importance of the Supervisory-class of leaders—those front-line leaders and the import that they play to a firm’s success. Maybe we need to retool top leadership by modeling the right behaviors from the bottom of the pyramid.
A few of these “Right Behaviors” include:
- Frank discussions about what’s working and what’s not
- Environments where challenging the status quo is appreciated and encouraged
- Hiring practices that don’t involve cloning and that do allow for creativity in bringing on-board unique skill sets and talents.
- Development practices that include “Charan’s” apprentice model so that upcoming leaders can face the gut wrenching decisions and grow in the process.
Last and not least: making it a core value and behavior inside a firm to cry “Foul” when the leaders up above pontificate while walking sans clothing through the business day.
What’s to stop us from starting to get this right?
Great post, Art and thanks for the shout-out. I think there’s another important point to make. In most situations, telling the emperor that he has no clothes is dangerous. Every organization needs truth-tellers, but they’re rarely the people who enjoy the most success. It’s dangerous work.
Change from the bottom up is a romantic notion, but usually it requires an emperor who will say, “It seems chilly. Is it possible I don’t have any clothes on?” and who is willing to protect and reward those who tell the truth.
Wally, thanks for chiming in and always glad to point people to your great blog!
You are right…being a truth-teller is not for people that are afraid to play with fire. I’ll happily and naively stick by my perspective that some of the best organizational changes can and do start below the C-suite. Ultimately however, you are right and the people in charge have to see the change as a good thing.
Last and not least, revolution is not easy. Someone has to fire the shot and there will be casualties. Many of them in real life, sadly, are the field officers. -Art
I agree, Art, that change can and often does start below the C-Suite. As I re-read my comment, I realize that the wording there indicates otherwise. When change starts below the C-Suite it often starts quietly, with a leader below the C-suite willing to change the way things are done. The results of that are often the catalyst for change. The results the “revolutionary” group gets are what causes the Emperor to question his dress.
Art and Wally
You both might be interested in an HBR article from their July-August 2009 edition (received it yesterday). Henry Mintzberg wrote how middle managers are potentially the source of the revolution in “Rebuilding Companies as Communities. Here’s the link to the purchased pdf: http://harvardbusiness.org/search/Henry+Mintzberg/608001+4294967220/
It’s an excellent article. You can also find relevant content at CoachingOurselves.com, dedicated to manager learning through peer group conversations.
Best
Dan
In successful companies, the managers usually have a fine-grained view of industry environment and how it works and also have the idea about the care taker executives whether they are capable of making gut wrenching decisions. The four right behaviors that you have mentioned should be followed by all of the employees from the bottom line to develop the company into a successful one. Awesome comments on Hamel’s thoughts. Nice topic to read and learn a lot.