Monday, December 27, 2010

Favorite Quotes

Most people love quotes and I am one of them.  Here are some of my favorites.

"We don't see things as they are, we see them as we are."  Anais Nin 

“The only true wisdom is in knowing you know nothing.”  Socrates

“When the rate of change outside a company exceeds the rate of change inside, the end is in sight.” Jack Welch, Former Chairman and CEO, General Electric

"Only those who dare to fail greatly can ever achieve greatly." Robert F. Kennedy
“Never doubt that a small, group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has.”  Margaret Mead

The secret of getting ahead is getting started. The secret of getting started is breaking your complex overwhelming tasks into small manageable tasks, and then starting on the first one. Mark Twain

“We are what we think.  All that we are arises with our thought.  With our thoughts, we make our world.”  The Buddha

"Why not go out on a limb? That's where the fruit is. "  Will Rogers

“The truth will set you free, but first it will piss you off.” Gloria Steinman

“The first rule of holes: When you are in one…..stop digging!”  Molly Ivins, Columnist

If we're not a little uncomfortable every day, we're not growing. All the good stuff is outside our comfort zone.”  Jack Canfield

Barrier Busting-Stuffed Shirts

Get Rid of Stuffed Shirts! 

In my previous post, I talked about organizational barriers. Here is a personal experience that illustrates how one Senior Manager quickly erected them.

I was hired to bring the accounting functions of two large healthcare organizations together.  “Merger babies” was the unofficial title for new employees hired during this time. My assignment was clear: merge departments, implement new information systems and bring together the best of both organizations’ processes. "How fun!", I thought. This is the type of work that gets me juiced up. My immediate boss understood the effort involved, and I knew she would support me in making any necessary changes. Perfect job for me, I thought.

Six months later the management structure was reorganized. Looking at the Departmental Management that included two Vice Presidents, six Directors and numerous Managers and Supervisors, I broadly categorized them. "Change Agents" are driven by the need to be candid and to make difficult decisions. They are willing to put their jobs on the line in order to sleep at night. Patience is someone else’s virtue, not theirs. "Stuffed Shirts" are the opposite of "Change Agents". They are driven by the fear of losing their jobs. They are politically savvy and will make decisions that benefit their status, regardless of the impact on their organization. It soon became clear that I would be the lone "Change Agent" in the new structure. Maybe this wouldn’t be so much fun after all.

Now I had a new boss. I couldn’t stand him. I couldn’t look at him. I couldn’t be in the same room with him. He was insecure. He had to control everything. I reacted by fighting his control efforts with every ounce of energy that I had. (Not a smart approach by me, and that will be a subject of a separate blog!) Needless to say, my job just became exponentially more difficult and frustrating. The barriers from this "Stuffed Shirt" immediately became apparent.

Barrier: Cliques in Management:
One morning, Mr. Stuffed Shirt summons me to his office. “I understand that Ann called you yesterday and you didn’t return her call.”, he said.

“Yes”, I said, “She called at 4:00 and I was in meetings until 5:00.  It is now 8:30 and I will return all my calls as soon as this meeting is over.” Then came the first of my many reprimands.

“You don’t understand how it works around here. Ann is one of those people whom you call back immediately.”, said Mr. Stuffed Shirt ("SS"). 

“Oh, I didn't know. Would you give me a list of those people?” I asked, stunned.  Remarkably, he never gave me the list. I guess I was supposed to know. 

I watched reactions and quickly surmised who was on the list. The people on it, merely had to ask, and they immediately received preferential treatment.  It never did become clear to me how these people were white-listed.  Mr. SS did make clear, though, that I was not one of them.  This job is no longer any fun.

Next, I wanted to do bigger things, clean up the chart of accounts.  That wasn’t going to be easy.  Mr. SS wanted to approve every single change.  A new form was created, and I had to wait days to make even a title change.

During another summons to Mr. SS’s office, he said, “I hear you talked to Dr. Stuffed Shirt yesterday and that you said………..”

“Yes, I did talk to him.   I don’t remember my exact words.  You have the gist of our conversation.”  I learned that somehow he knew that whenever I spoke to anyone on the white list, he knew about the conversation.  Now, I understand that those on the white list watch each other’s backs.

Barrier:  Fear of Rocking the Boat
Next, I wanted to do something daring: clean up the books! This required meetings with Mr. SS and his SS boss, Mr. Sr. VP, to persuade the upper echelons that a change was needed.  In the end, I was told not to make the changes and to leave the old accounting, even if it wasn’t consistent with accounting regulations. The current methodology allowed the white list to spend educational funds beyond their budgeted amount, and the Sr. VP was not willing to confront the top management.

Soon after my failed attempted of changing accounting practices, the merged organization started a system wide initiative to consolidate processes and hired a big name, mega-bucks consulting firm to help.  One of its first steps was the first of many management consolidations. Mr. SS’s position was eliminated. Could this be Karma? Things are looking up.

I was one of 30 Change Agents(from the entire organization), selected to lead a re-engineering team. After a year of development, the plans from the various teams were implemented or “operationalized.”   Since our departments were able to operate without us while we redesigning systems, 90% of the team leaders, including me, were let go!!

Needless to say, the culture of the organization was affected for years.  The widespread elimination of Change Agents reinforced the power of the management cliques (most of whom survived and prospered in the consolidation) and sent a strong message that change was not really welcome, even if the top executives said so.

If you suffer under a Stuffed Shirt, I see two choices.  First, the obvious one: find another job.  Or, choose to wait it out and make sure you have a way to manage your frustration and stress.

If you lead an organization or department, don’t hire Stuffed Shirts. Learn how to interview using behavioral questions so that they show their true colors as early as possible.  

In his Harvard Business Review article, "Level 5 Leadership: The Triumph of Humility and Fierce Resolve," Jim Collins states:

"Level 5” refers to the highest level in a hierarchy of executive capabilities that we identified during our research. Leaders at the other four levels in the hierarchy can produce high degrees of success but not enough to elevate companies from mediocrity to sustained excellence.  And while Level 5 leadership is not the only requirement for transforming a good company into a great one—other factors include getting the right people on the bus (and the wrong people off the bus) and creating a culture of discipline—our research shows it to be essential. Good-to-great transformations don’t happen without Level 5 leaders at the helm. They just don’t.
My preliminary hypothesis is that there are two categories of people: those who don’t have the Level 5 seed within them and those who do. The first category consists of people who could never in a million years bring themselves to subjugate their own needs to the greater ambition of something larger and more lasting than themselves. For those people, work will always be first and foremost about what they get—the fame, fortune, power, adulation, and so on. Work will never be about what they build, create, and contribute.


Stuffed Shirts destroy companies. Don't let them destroy yours!

Barrier Busting-Organizational Walls

Webster’s Dictionary defines a barrier as “something immaterial that impedes or separates.”  Barriers are so easy to build in an organization. In his book, “The Looming Tower”, Lawrence Wright describes a mind blowing example (pgs. 387-389):

“The Justice Department promulgated a new policy in 1995 designed to regulate the exchange of information between agents and criminal prosecutors, but not among the agents themselves. FBI headquarters misinterpreted the policy, turning it into a straitjacket for its own investigators.  They were sternly warned that sharing intelligence information with criminal investigators could mean the end of an agent’s career.  A secret court in Washington, created by the 1978 Foreign Intelligent Surveillance Act, became the arbiter of what information could be shared-“thrown over the Wall,” ...  Bureaucratic confusion and inertia allowed the policy to gradually choke off the flow of essential information to the I-49 counterterrorism squad.

The CIA eagerly institutionalized the barrier that separated it from the bureau… “Millions of dollars and thousands of hours of labor were consumed replicating information that the U.S. government already had but refused to share. 

The agents on the I-49 (FBI) were so used to being denied access to intelligence that they bought a CD of a Pink Floyd song, “Another Brick in the Wall.”  Whenever they received the same formulation about “sensitive sources and methods”, they would hold up the phone to the CD player and push Play.”

Extreme example?  I don’t think so.  I have lived similar examples and bet the same thing is happening in your organization. Here are some signs or organizational barriers, their potential causes and suggested fixes:

Symptom
Possible Cause
Suggested Fix
You wonder why it takes so long to get things done.

Too many approvals in process.
Streamline processes and eliminate everything except what enhances your competitive advantage or provides a basic check and balance.

The use of blind copies in e-mails.

Fear of repercussion and risk taking. People feel the need to CYA or blame. 

Provide guidelines on risk taking.

Fire the blamers.

High performers are leaving
Ego maniac or control freak is running rampant.
Replace the ego maniacs and control freaks with self aware, emotionally intelligent people.

Lack of intense conversation.
Fear of conflict.
Praise and reward those who disagree.


Ask your employees where the barriers are.  I bet they will tell you.  After they do, act on it.  Explain the reason for the perceived barrier or eliminate it and make sure you eliminate more than you explain away.

What barriers have you experienced?  What would have eliminated it?

Barrier Busting-Self Mastery

Self-Mastery-Busting the Personality Barrier

We’ve all experienced the leader who knows everything.  The successful, unaware individual who has not experienced failure and has had no reason to let go of past ideas and change his behavior.  As a result, his frame of mind shuts down learning and listening, prevents new insights and leads to righteous, impatient and defensive behavior.  Some of my most important lessons have come from working for this type of leader. Leaders like this prevent companies from growing.

What’s the opposite of this leader?  Someone who is on a personal mastery journey.

Peter Senge, describes personal mastery as, “..not something you possess. It is a process. It is a lifelong discipline. People with a high level of personal mastery are acutely aware of their ignorance, their incompetence, their growth areas. And they are deeply self-confident. Paradoxical? Only for those who do not see the ‘journey is the reward’.

Where do you start? First, be aware of what is driving your behavior. 

David Daniels, MD and author of “The Essential Enneagram”, states the following about what drives behavior:

“Your awareness of three laws of behavior can help you better understand why you think, act and feel the way that you do..”  

Law 1: Wherever your pattern of attention and energy go, your behavior follows.

Law 2: To change your behavior requires self-observation of your pattern of attention and energy.

Law 3: Although self-observation becomes easier with practice, it never becomes habitual. Self-observation requires continuing practice

There are many ways to deepen self-observation and Daniels recommends this 4 step process:

1.     Have an awareness practice, such as meditation or yoga, to increase your receptivity and develop a grounded presence.
2.     Open your heart to accept what is happening now, including negative feelings and sensations. You only can work from where you are. Everyone is in a different place in his or her journey.
3.     When you notice a feeling or sensation, gently inquire in order to discover, discern and consciously choose how you want to act.  By choosing a different path of action, we help build new neural pathways and develop a new habit.
4.     Commit to your process.  Practice this for 1-2 minutes a couple of times every days.

To be a really effective leader, you must be effective as an individual. You need to master the art of self-mastery and be able to consciously choose your thoughts and behavior in any situation to get what you want. I challenge you to start now and schedule a couple of times every day to observe yourself.

Barriers are so easy to build in organization.  All of us bring our habitual barriers, aka personality, to work.  If you haven’t noticed yet, you will soon.  I believe change starts with the individual.  Unlike the Dilbert cartoon where he says, “Change is good, you go first”, real change must start with the leader.  Anything less is blasphemy.

Focus-Develop Your People

Listening and Conflict

Unless you plan on living forever (I have a member who does), someday you will exit your company. Your company’s value will be significantly impacted by how well the company runs without you as the CEO.

Do you understand that your company must change as fast as the rest of the world to just maintain your current competitive position?  Want to beat your competition?  Then you have to change faster than they do. And, that is dependent upon how well you develop your executive team and how well your executive leadership develops their people.

“How shall I train my supervisors and managers?” asked a member.

“How well do your employees listen?  How effective is conflict in your organization?” I ask. 

“Not very.”

“Start with those two.” I recommend.

Daniel Goleman and his work with emotional and social intelligence and Mark Goulston in his book “Just Listen” describe neurons that act as mirrors.  These cells allow us to create another’s experience in our mind.  Each time we feel empathy for others, it creates a need in us to be mirrored back; to have other’s demonstrate empathy toward our feelings.  To adeptly mirror, we must first listen. I’m not talking about the type of listening that most people do.  I’m talking about empathic listening: listening with all of our senses.  If you want to see some specific examples, I recommend reading Stephen Covey’s Seek First to Understand chapter in his book, “The Seven Habits of Highly Effective People.” 

Let’s talk about the “C” word.  The lack of conflict can lead to disastrous results, such as in the case study of the Challenger. The Abilene Paradox is a video, where a group of people collectively decide to take a trip for ice cream. The paradox is that, as individuals, no one wanted to go. If one person would have said what he was really thinking, the group would have made a different decision.  I have seen and experienced where lack of conflict resulted in some stupid and costly decisions.  I guarantee the same thing happens in your organization.

You go first.  Learn how to really listen.  Learn how to engage in productive conflict.  See what happens in your business and personal life.  Then role model and teach all your employees.

Focus-Can Do/WIll Do Model

Can Do/ Will Do Model

My members often struggle with how to help their people develop and grow.  Occasionally, they find themselves trying to change things about a particular employee that simply can’t be changed. 

Mark G. Gardner, CEO and Founder of Avatar, is a member of CE 372 and has developed a model to better understand the primary characteristics that ensure a person is a good fit for the job.  It describes six qualities, three that determine if an employee can do the job and three that drive the employee’s willingness to fully engage in the job, or will do.

CanDo Attributes:

Knowledge
Knowledge, such as management strategies and accounting standards, is what your employees need to know to effectively perform their jobs.  Knowledge is learned through educational experiences where concepts, principles and mental processes are taught.

Skills
Skills, such as how to use a computer program and how to conduct an employee performance appraisal are the physical manifestations of work performance.  Skills are acquired through training and practice and can be observed. 

Abilities
Abilities are the mental and physical traits determined by an individual's genetic makeup and include height, strength, coordination, visual acuity and to some degree, intelligence.  Some jobs require certain abilities. For example, a job unloading trucks for 10 hours, requires physical stamina and enough strength to lift 50 pounds.  Abilities can’t be learned. 


Will Do Attributes:

These attributes drive the employee’s willingness to fully engage.

Values
Values are the principles and beliefs upon which a person bases all decisions.  Values are learned at a very early age and change very slowly once a person has reached adulthood. Some commonly understood values include honesty, integrity and a good work ethic.  You can’t change a dishonest employee into an honest one by putting them through a “training program.”

Motivations
Motivations are activities and rewards to which an employee is naturally attracted.  For example, not everyone would like to be a research scientist, nor does everyone want to be a plumber.  Both occupations exist and there are people who are willing to, and who even enjoy, spending their lives in each of them. 

Personality
Personality is the general disposition of a person and is the foundation of how the person is likely to react to situational demands or interact with other people. Personality is usually defined in terms of traits, of which there are more than 100, such as dominance, compliance, attention to detail and extroversion, that can be measured through specialized assessments.

How to Apply the Can Do/Will Do Model:

Performance improvement, both individual and group, begins with an understanding of which characteristics a person needs in order to be successful in a particular role.

Your recruitment and selection efforts should focus on finding applicants who already have the best-fit qualities for the characteristics that you can’t change: Abilities, Values, Motivations and Personality.  And, your education, training and development processes should remain focused on improving knowledge and skills.

Understanding the Can Do / Will Do Model and applying it to each key occupational role, helps you establish the most effective strategies for achieving improved job performance. 

You can learn more about this at www.avatarms.com.

Focus-Design Your Organization

One of my members recently said that it is easier to start a new organization than it is to change one. Pretend that you are starting over. You are the architect. Design your organization.

1.    What is strategic focus of your company?  Three are described in the book, “The Discipline of Market Leaders” by Michael Treacy and Fred Wiersema. Traecy and Wisera call these value disciplines, product leadership, operational excellence and customer intimacy.  Operational excellence focuses on providing customers with reliable products or services at competitive prices, delivered with minimal difficulty or inconvenience. Product leadership focuses on providing products that continually redefine the state of the art. Customer intimacy focuses on selling the customer a total solution, not just a product or service. Michael Porter, a famous Harvard professor and author, uses two main frameworks; cost and differentiation.  Another famous consulting company uses 6 driving forces.

I’ve seen my members argue over the definitions and how it may or may not make sense for their companies.  The exact definition is not important. What is important is for you to have a crystal clear idea of what your company is offering and how that impacts the design of your company.  If these framework models are useful to help you, then use them.  If not, then modify them. Keep clarifying until you have such a vivid picture that you can describe it to anyone.

2.    How will you deliver the above value to the market?  Culture. To be most effective, you must design it too.

Start with values.  What top 5 (See Cheryl’s rule of 5 below) behaviors do you want to instill?    They must be consistent with how you go to market.  For example, Apple is a product leadership company where design expertise is valued more than customer relationships.  Steve Jobs doesn’t care if his customers are cranky. He doesn’t ask customers for their opinions.  They do no market research. He cares that Apple’s products meet his standards.  They know how to design and build world changing products.  Long hours and near impossible standards for product development drive the culture.  And, the culture is almost perfectly designed and aligned with Apple’s product leadership framework.

WalMart is another example.  Their mission is to provide products at a price that the everyday folks can afford.  They mandate efficiency from their internal processes and outside suppliers.  Standardization is the name of their game which leaves little room for flexibility. 

Most cultures I see just happen.  They are an accumulation of the past; past employees, past fears, past failures, old policies, old technology, which adds up to; that’s just the way we do things here.

3.    What type of leadership does the culture need?  How easy or difficult is it for you to adapt your leadership to your designed culture?  Be honest.  If your personality isn’t congruent, then find someone who has a leadership style consistent with the culture to help lead. 

Performance is negatively influenced if your strategic framework, culture and leadership are out of alignment. Intentionally design them to work together.

Implied in my definition of focus is clarity.  After your design is complete, I want you to paint me a picture with your words.  A picture so clear, that I feel it, explain it and understand it as well as you do.

Cheryl’s Rule of 5
More than 5 of anything is same as having 75; too much.  Too much is as confusing as nothing. Whether it is goals or values, narrow it down to 5.

The Two Vital Functions of A CEO

Over my 30 year career, I have worked for or with a couple hundred of CEOs and Senior Executives.  Of all the important responsibilities of a CEO’s job, two stand out as vital: Focus and Barrier Busting.

The speed of change, 24/7 connectivity and an unlimited supply of information available in the palm of our hands is like a firehouse of demands gushing straight at our face.  I listen to my members talk about the constant meetings, the volume of email and the unrealistic expectations from all parties in their lives.  The discipline of focus and clarity has never been so important and so difficult to execute.  Unless, the CEO has it, the rest of the organization never will.

One of my members, recently acquired, was talking about the new owners building walls in the organization that no one will acknowledge.  This is a great example of a self imposed barrier. Because speed is like breathing in this global economy and because the CEO holds THE position of power within the organization, only he can bust the big barriers that impede execution and employee engagement.

I will explore these functions in future posts.