Archive for the ‘3 Strategic - Thinking’ Category

Napoleon’s Glance

Strategically it sometimes pays to step back from daily routine and read or experience something different… but not necessarily too different – the busman’s holiday they call it – as when you work for a charity, gaining pleasure and learning from doing more of what you do at work. Reading for pleasure, I stumbled on a book by William Duggan, associate professor of management at Columbia Business School, an expert on strategic thinking and author of three books in the field – The Art of What Works (2001), Napoleon’s Glance (2004)Napoleon's Glance and Strategic Intuition (2007). The gist: Napoleon and other amazing leaders followed   a route to highly effective strategy that is very, very different from what is normally thought of as strategic planning or strategic thinking.

The principles apply directly to HR strategy. Oddly, just recently, one of the many HR/Learning & Development blogs out there published “Four tips for Effective Leadership,” namely: Be counterintuitive, live comfortably in gray areas, learn by doing and exercise soft skills – exactly what Duggan points to with his great strategists. Strategy isn’t arrived at by ‘planning’ in the sense of laying out exact steps and stages with time lines and benchmarks. Napoleon and the others ‘put their teams in motion,’ ‘looked for small battles they could win decisively,’ ’stuck to the course with firm resolution,’ and learned to evolve strategies as they went rather than work them out in detail beforehand.

Reading these, I realized that, yes, most successes I ran into along the way evolved ‘in the midst of action’ (a phrase I also recognized from a Zen master talking about finding your way calmly ‘in the midst of action’). Does this apply to HR? My former company got into elearning early and heavily, with great results, because we were asked to look at ‘expert systems’ that the CEO saw at a conference (a different computer technology) and we jumped to use the budget and just get going, without being in the least sure where we were headed, but seeing some possibilities in using technical systems to leverage more people learning more things.

If we’d waited for our IT process that called for developing a technical plan in detail, with projected costs three to five years out, we’d never have gotten off the ground. Yet planning is valuable. In the words of Eisenhower, the top allied General of WWII, “Plans are nothing, planning is everything.” The difference, in other words, is active versus passive. Get going, planning as you go, through the unexpected twists and uncertainties – don’t wait for “a plan” designed to resolve something you think may happen – it won’t.

Bad times a good teacher?

People continue to be fascinated by how anyone can manage in the economic downturn. I used to see this as ‘topic of the day’ – faddish and something we all would work through as ‘normal business.’ Not one, but two former bosses used to say, ‘in business there’s no such thing as bad news or good news – just news.’ We have to expect bumps in the road and some will be big ones. Anyone who operates without any preparation for that is courting trouble.

But it’s been pointed out to me in a recent consulting assignment that some people of my, ahem, advanced age are just lucky to have been ‘lucky’ to have been through tough times before. We can take it as business as usual to a degree while younger managers are genuinely shocked and more financially hurt (so this young exec insisted), especially if they`re young enough to have avoided tight times either having come of age since 1991 or having missed being hit in that somewhat milder climate.

Apparently even a lot of my age group missed those earlier setbacks because audiences of all ages continue to be flummoxed by today`s crunch and thatVeritySeries0911 continues despite possibly premature rumors of an upturn. My friends at Verity International once again assembled an interesting panel of experts (recording is here) to comment – Citibank being one that certainly got caught more than some, and Ford being one that was far more prepared than many. Yet no one is untouched. Add to the panel a devil`s advocate talk show host who claims we should all get off our duffs and make hay while the rest are lagging and a European consulting executive who`s seen a wider perspective and you have a competent mix… one might believe. Or do you have just a bunch of individual views from where each of them sits. Is there a common thread?

The fact is that downturns always benefit someone. Sometimes it’s the lucky – people who happen to have just sold major assets before the crash and have cash to buy up lagging operations that will help them boost their business when thing improve. Sometimes it’s the sensible – people who have watched their budgets all along and don’t have to lay off masses of people. There’s no doubt that 15 years of rising markets encourages people to take risks they shouldn’t. It’s understandable that in good times many fear being left behind if they don’t take those risks… but we all need to keep an eye out for bad weather and what we can offload when ship starts to sink.

Of course the talk show host was in his glory since bad news makes for good media interest and lambasting ‘laziness’ is easy when everyone’s already down in the dumps. Are North Americans lazy compared to others? Not if you note the ever-increasing stress levels and work hours we put in. But perhaps we’re not putting them in the right places as the world changes and we no longer rule on technology and scientific advances as we once did.

Are we letting our kids get lazy? Maybe, but again, as soon as they hit their 20s they mostly develop lots of reasons to work hard. Certainly we’ve encouraged a sense of entitlement. The same young exec who berated me for being a fat-cat boomer with money socked away to burn noted that young guys like him (about 25) have reason to be afraid they might lose the house, the two fancy cars, the cottage, the boat, the clubs and all that other ‘must-have’ stuff they have a right to go after (on credit). Apparently the banks, in selling everyone on credit only too successfully, drank that kool-aid themselves and have taken their customers down with them.

Unfortunately I know all too many boomers who are caught in the same mess and are finding it difficult to dig out. But having said that I also have acquaintances who have faced and overcome bankruptcies or near-bankruptcies in the past and know that belt-tightening, while not fun, does work. My heart goes out to those stuck right now, but it’s hard to know who’s on a right or wrong track. Major layoffs demoralize staff and hurt future retention and results, but failing to lay off can drag down results, share prices, and pension investments. Finding a balance and working hard is the inevitable result either way. Perhaps that’s something we need bad times to teach periodically as so many don’t seem to learn any other way. It’s the psychology of infallibility for sure that creates such cataclysmic cycles. Can we learn to smooth out our human nature and stay balanced better in future over the long haul? It was an interesting question that none of the panelists quite addressed directly.

Two books worth reading

I finally broke down and made the effort to read both of Obama’s books. He’s a truly remarkable writer for a start. and they certainly appear to show his own hand despite the undoubtedly large number of ‘fact checkers’ and ‘assistant editors’ he may have had specifically with the second one. Whatever your political beliefs it’s hard to ignore the value of reasoned debate and a clear point of view expressed in a readable way. The views fit mine, as they do for mostObamaAudacityofHope Canadians,  but I was also pleasantly surprised at the depth of discussion and breadth of ideas they bring together.

The language and style are very engaging, although I’m a reader at heart, so they may not suit everyone. For a leader who exudes all five of the core leadership principles I promote, there is none better. I’m glad I’ve lived to see a truly logical, sane individual in what many consider the most powerful office in the world. I have to express surprise that a political system as much criticized as the US has been able at last to put someone of his mental caliber in the role. As Churchill observed, ‘democracy is the worst political system except for all the others.’ Sometimes it really seems to work visibly.

It’s just a shame that so many of the most vocal individuals we elect are not up to this level. Of course, the even greater shame is that the efforts and abilities of just one person are likely to be mostly thwarted by the rest, though I believe the effort still pays off in the long term by establishing ideas that won’t ever go away and someday will see action. I’m a great believer that we don’t give politicians enough credit for the good struggles they attempt and the tremendous efforts and goodwill most of them bring. Unfortunately getting consensus on consistent directions is notoriously difficult at best among so many varied interests and opinions. and often it seems like two steps back to one forward. Nevertheless our humanly flawed leaders have produced some great societies for us to live in.ObamaDreamsFromFather

Regardless of whether specific policies never get passed in the welter of competing interests, I think Obama has already given the world a gift – a logical,  well-argued set of objectives that will undoubtedly be quoted far and wide for years, perhaps centuries, to come. And his very human struggle to come to terms with his own life and place in the world are.

A friend forwarded a really interesting New York Times Op Ed link (In Praise of Dullness) with the comment the author may or may not be making similar points to my last post. In fact, it could be taken either way because the author talks about several opposing things as if they were somehow one.

Author, David Brooks, cites interesting research showing that CEOs of today’s successful companies lack people skills, extraversion, openness and social agreeableness in study after study. that what distinguishes most is emotional stability and conscientiousnessDavid Brooks NYT OpEd (these are ‘the Big Five’ that psychologists generally agree define personalities). He suggests charisma isn’t valuable, as Jim Collins showed in Good to Great, but in doing so he mixes apples and oranges.

First, it confirms my assertion that many of today’s large organization CEOs lack the skills they will need to lead with utmost effectiveness especially in the coming years of a new type of worker. That’s what Collins is getting at, too. He found only a handful of big company CEOs had taken their companies from Good to Great and kept them there. However, Collins’ findings reinforce that you need openness and sociability (though perhaps not extraversion) to reach the most successful CEO level – to lead effective teams. Quiet team-builders emerged as his preferred model and I agree.

What the other research confirms is what Collins also found – that most sizable company CEOs today are OK, but not superstars. It’s not their lack of charisma (Collins’ winners didn’t have it either), but more importantly lack of ability to build teams. Most are detail-oriented drivers who keep everyone’s nose to the grindstone where more open, creative solutions would be better. The grindstone approach keeps things going and creates incremental improvement, but doesn’t help things take off. Brooks notes that, but equates Collins’ top leaders with the grinders, which isn’t accurate.

All in all, as we struggle to get clarity about how top leaders should actually look, we find few companies yet understand it well enough to make the best choices. And that may be due to the fact that we have years of grinders lingering at the top choosing people like themselves. These are ’safe’ candidates, without a lot of personality actually, unlike the major characters that bring together all the right skills like Kelleher of Southwest Airlines, Walton of Wal-mart, Welch of GE and other highly individual, but interesting styles.

Just because the bulk of OK companies today are run by ‘grinders’ (if I can call them that somewhat unfairly because most bring something more than that, just not enough more), that doesn’t mean this is what companies SHOULD look for. There is a better model. Collins got it right. We need to figure out how to develop it and then we need to start hiring for those qualities.

History has lessons to show us about HR

Richard McLaughlin writing on the new Plexus community “Organizational Consultants Network quotes the venerable Marv Weisbord, expert on Organization Behavior, author of Productive Workplaces Revisited and that led me via search to the original Productive Workplaces on Amazon.

Reading their link to the “First Pages” of the older book is really worthwhile to make instantly clear the history of effective HR and OD and how early lessons apply directly today, ultimately explaining how smart financial leaders led us into the current mess.

Conclusion? McLaughlin quotes Weisbord. .from 1987! “The world is changing too fast for experts, and old-fashioned “problem-solving” no longer works. For the past forty years productive workplaces on several continents have been evolving another way entirely of thinking and acting. First, they have been moving away from problem-solving toward whole-systems improvement as the secret for solving great handfuls of problems at once. Second, they have been moving away from getting experts to fix systems toward having experts join everybody else in learning how to make improvements.”

Doesn’t that sound like social networking and The Wisdom of Crowds over command-and-control leadership? You bet! So why haven’t we arrived yet at the point where everyone understands this? I suppose double-entry bookkeeping wasn’t thoroughly accepted by 100% of business for its first hundred years either, though now you wouldn’t start into serious business management without such basic accounting.

McLaughlin goes on to link another excellent article by NYT’s Nicholas Kristof, illustrating how well-functioning groups should be able to out-do experts and ties it directly to today’s disasters. When will we finally learn these lessons and concentrate on leading in new ways?

PS: I love one of Kristof’s references to Berkeley’s Philip Tetlock (author of the 2005 book, Expert Political Judgment – which could have been subtitled ‘yeah, right’). Tetlock, he notes, uses the description “hedgehog” in a negative way. For me that illustrates balancing Jim Collins’ use of it in Good to Great to describe the positive need for focus, which in turn illustrates again the need for balance rather than too much of any one element of effective leadership. And in many cases balance only is achievable by including more people in the process of leadership.

Let’s Smack Ourselves Again

Sigh. I posted the link to Dr. Beatty’s recent condemnation of HR (my earlier post) on HRM Today without much comment to see what would come in. Nevin Adams essentially summarizes Kris Dunn’s post on the Workforce Management Human Capitalist blog. Both feel if HR simply does a good job, those who really matter see and appreciate their contributions. I wish I could believe that, but I’ve seen a ton of HR people doing great jobs these last few years and still find even people close to them don’t see it, as evidenced by Kenneth J. Nessing’s reply on HRM Today.

Kenneth is an HR systems guy who says he totally agrees with Beatty that “HR fails to understand the real link between productivity and people.” Here’s someone who, like Beatty, presumably works with HR people in large organizations blandly continuing the stereotype and broad-brushing ‘all’ HR.

My point? If HR doesn’t start to stand up and correct these mistaken, but all-day-every-day, comments we will truly be the failures so many already take for granted. It’s because of such standard assumptions that HR has such an uphill battle for budget, resources, great people and ‘a seat at the table.’ It’s fine that some individuals have spectacularly overcome these, but we’re doing a disservice to other professionals in our field if we don’t speak up whenever and wherever this myth is propagated.

Alternatives to Hating HR (1)

A ping-back on my recent post introduced me to John Sumser’s very interesting blog, specifically linking more comments about Dick Beatty’s diatribe against “HR.” I believe in the value of debate so I’m happy to link both good and bad opinions out there. Jon is certainly more constructive and he’s rounded up a number who are as well. However, it’s still not enough for me.

There are currently two opinions commonly published about HR. First, that most people in it are useless, especially at understanding, justifying their cost/value or contributing to results in their organizations. Second, the growing alternative view, like much of what Jon collected, that while most HR people are useless, it’s neither entirely their fault nor true of all since some actually reach the level of valuable, measured proof of strategic contribution.

I argue there’s a third view that we should hear a lot more about. that HR is making a valuable contribution almost everywhere, but only to the extent they’re allowed, assisted and supported by the rest of the team. (Try running your organization without any.) Consider that HR is largely doing what it is told and empowered to do by more senior organization leaders who control what HR is paid (typically less than most functions), who’s appointed (qualified. or not), what it’s entitled to do (mostly essential administrative stuff with a smattering of more strategic items ‘if there’s time’) and who listens when HR has something to contribute.

Instead of solving these problems, most people seem content to stand back and blame HR for not ‘proving its value’ as if there isn’t already a mountain of scientific evidence showing that the impact of doing HR well is enormous (Pfeffer’s work offers great examples). We should be talking about how to focus what we know can be done to fit our specific organizations not blaming the guys in the middle who are striving to do what they can with the resources they’re given. Pile on is not constructive.

I’ll expand later, but for now let’s make one thing clear. Try appointing a junior accountant as CFO and then encouraging your managers to ignore what she or he ’suggests’ if they feel they have a better idea. Of course things would come crashing down in less than a fiscal year. CFO dictates aren’t ’suggestions’ and are invariably backed up by CEOs and armies of accounting staff policing the rules daily. But with HR issues, people are so adaptable they put up with and take orders from blatantly bad leaders as well as good, the former being tolerated for years, often encouraged and even promoted because they ‘get the numbers.’ Embarassed Employee

Most people continue to produce as faithfully as they can at least for a while till something better comes along and they cover poor performance of those around and above them up to a point. Financial lapses aren’t so self-repairing. Let me say for the record, if HR had similar rule-enforcing support bad managers wouldn’t be tolerated, let alone promoted. That would certainly make measurement of HR practices a lot easier, too, by enabling a much more consistent application of HR strategies than the hit or miss hodgepodge we normally see.

Now HR could never and should never strive to operate via pure enforcement. Human situations are simply too varied. By its nature HR has to work through other leaders in the organization and ideally help develop them to be the best possible. Nevertheless, clear HR values guidelines would help insist that leaders act with good will, positive reinforcement and other basic effective leadership practices. Needless to say perhaps, HR can’t be the body enforcing those values. As Archimedes said, “Give me a lever long enough and a place to stand and I’ll move the world.” Let’s help HR with the tools and measures instead of suggesting they ought to make them all up by themselves. Help make HR part of the team or spend the rest of your declining performance time questioning why they can’t perform.

A Revival of “Why We Hate HR”

This objectionable view of HR was pointed out by a widely-read consultant/speaker colleague, Jan van der Hoop a day or so ago. Frankly I would have expected a different approach from Rutgers University’s Richard Beatty. Talk about RichardBeattypandering to your audience’s prejudices instead of trying to educate or solve  the problem.. Even allowing for editorial liberties with the message, inadvertent or otherwise, this speech is unacceptable.

I’ll ignore the obvious confusion of the terms ‘employee satisfaction,’ which we pretty much all know by now doesn’t relate directly to performance and ‘engagement,’ which does. I’ll even ignore the fact that he contradicts himself in several statements, some on this very issue.

However, if this was actually said as quoted, Beatty is making a ridiculous generalization: "HR wants to treat most employees the same way, and they spend considerable time trying to defend or fix poor performers, taking on the St. Bernard role," he said. "Low turnover isn’t necessarily a good thing. Think about where you might want to disinvest." Well, Dr. Beatty, there isn’t any “HR” in this sense. There are a whole lot of individuals with varying ranges of skills and opinions. And in case you haven’t looked, there are tons of HR practitioners out there who do not fit this stereotype.

I’m first to agree that HR departments need to invest more and bring in more people to work as HR staff who can develop better analytics and metrics. I certainly support rotating a percentage of other executives through the HR function both to learn and bring in new ideas and approaches – not a bad idea for most functions. To suggest that HR isn’t making an effort at the transition to a modern understanding of what’s required of it is just patently missing what’s happening in the field. Maybe it isn’t happening fast enough, but not for lack of discussion or attention from HR. Insults aren’t likely to help as any good coach knows and practices. Apparently your program doesn’t follow the path of ‘find what’s right and encourage more of it.’ I realize that doesn’t make for as good press coverage, but really..

Maybe this is a speech you hope will be a further wake-up call to HR. or maybe, as another of my colleagues suggested, it’s an “Ann Coulter-type attempt” to garner attention by being insultingly outrageous. Whichever, one has to ask, isn’t it remarkable that someone who’s been training HR leaders for years finds they are so entirely hopeless? Whose fault would that be really – your students. or their professor?

Anyway, I’m pleased you answered my email suggesting we could debate with a response of basically ‘bring it on.’ But I also note you haven’t responded to my request for more details, including what you actually said. If I’ve misconstrued, please feel free to enlighten me. While waiting I’ve read several more polite responses suggesting you must have a point somewhere, that where there’s smoke there’s fire. I’m not so accepting. If professionals in the field, in particular, continue to bad-mouth it in such a blanket, unthinking way, how can we ever expect to raise HR to the status it deserves? I’m not sure an unbalanced attack deserves any less in return.

The essence of the blog mentioned in my last post is the question of whether, in these cut-back oriented times, we’re going to forget about nurturing and growing  ‘talent’ in organizations and go back to the days when all the counted was the number of ’staff’ or ‘headcount’ – the cost. The Lucy Kellerman article she refers to is the case in point.

Wow, what a series of mistaken assumptions. First, even companies that have cut back in major ways are simultaneously talking about talent shortages. With the need to keep pace through constant innovation so high and growing, they are feeling the need to reduce ’staff’ (meaning, as they see it, widgets who fill assembly-line-like roles) and at the same time seek out and hire more creative, leadership-oriented self-starters who can move things forward. They face the prospect of having to do with fewer ‘headcount’ for two reasons – both tighter economics and shortage of such ‘talent.’ In that case, the ‘talent’ they do entice to join or stay had better be truly valuable and outstanding.

Kellerman’s assumption that there will be less spent on trying to find, recruit and motivate those we formerly thought of as ’staff’ in favor of greater emphasis on rewarding senior executives is ridiculous to put it bluntly. What got us here? And what are we angry about? High senior executive comp programs paying out for poor judgment, lack of insight and lack of listening to up and coming ‘talent’ in their organizations. To put power into the hands of a few executives totally focused on financial performance would reproduce exactly what went wrong – a focus on short term economics to the exclusion of building companies with excellent people throughout who all contribute and give the organization hope of surviving the inevitable departures of a few senior people.

Is it       dollars     or  workers     …or both?

EVA or Economic Value Added schemes have tended to justify growing senior executive bonuses out of proportion to overall viability of their organizations – the very things that got us here. They’re not evil by themselves, but in the hands of senior executives who design their payouts for their own benefit, they are fatal. And Emotional Quotient (EQ), better thought of as ‘people skills’ are what has been lacking.

The current economic crisis may make us think about dollar signs everywhere for the moment, but it shouldn’t blind us to the fact that ignoring people and what they think – customers, the public and, yes, staff, too – has been the hallmark of those companies who fail far more than their ignorance of numerical calculations. If they’ve failed the grade on the numbers it’s not because they were spending all their time on people issues. It’s because they forgot that numbers have to make sense to and benefit human beings not just executives. So forget building your hopes around pure ‘bean-counters’ holed up in ivory towers gilded with senior executive privilege. This is exactly the time when we need leaders with a wide, balanced understanding of ALL the issues they face.

The Zen of Leadership and HR

Sometimes it pays to take some time off. In the Internet blogging world, that’s easy to do. All you need to do is lose focus a bit and ‘zip’ you’ve let the weeks go by without a post.

I’m not sure that’s a bad thing. We’re so overloaded that just skimming the regular newsletters, ads and emails from sites I’ve joined takes more time than I care to think about. Sometimes taking a break allows for a re-orientation of your thinking. That’s why Google encourages their people do take a day a week or so to spend on their own projects exclusively.

In the last few weeks, I’ve developed some new insights (new for me at least) into leadership and HR and what’s really happening with them. First I realize that I’m intrigued to continue working in the area because it poses Zen-like paradoxes – so simple, yet so frustratingly difficult to coach people in. I was getting down about this without stopping to define what it really was. The fact is this is the intrigue and the frustration simultaneously – the two aren’t separable. It’s reassuring to know that leadership and HR are developing on their own without depending solely on me to show the changes and the benefits. But that, too, can be frustrating. We never want to be left behind or bypassed. Ego!

I realized also that one way to think about HR is as Human Relations instead of Human Resources. I’ve always avoided that terminology, thinking it was really a mistake people were making, like the difference between ‘moot’ and ‘mute,’ which are often confused. Now I’m coming to believe that if we called what we do in organizations ‘human relations’ or ‘human relations management practices’ we’d actually get ourselves closer to being understood. I’m going to explore this in further posts.

In the mean time I’ve gone back to reading (and now writing) in these areas withCompForceBlog renewed energy to pursue them from a Zen-paradox point of view that I’d lost touch with. This link will be one I’ll pursue and comment on, mentioned in  Workforce Management today, now that I’m back scanning again: it’s at Compensation Force.

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