22 Jul
At least Canada ranked number five, beaten out by the US, Japan, Germany and Sweden. When four highly respected profs from Harvard, Stanford and London School of Economics collaborate on a major survey and conclude American managers are best, we sit up and notice. If they are the best, but repeated studies, occasionally by these same schools, show only 20% of US managers have the right skills to maximize effectiveness, the world has some great opportunities to do better, though the latter article stimulated controversy without shedding much light.
The good news is that most ways the data are sliced show it’s a matter of degree between countries, government versus private sector, family run, large companies, etc. In all areas managers are distributed over what look to be normal curves that overlap. So in any given group there are at least some great
managers, doing as well or almost as well as the vast majority in the ‘best’ groups. So some of the 20% get into whatever management situation you care to name and no single country or type of company can claim to have much more that this share of excellent managers in its stable.
The profs conclude that three things cause their findings. First the US has more competition among open markets for managers (anyone can buy the best) so individuals strive to improve and so win the big salaries. Second the US values education of its ‘human capital’ such that a higher percentage get solid schooling for longer. This is interesting given we tend to focus on how many engineers are produced by our major competitors like China, for instance, but percentage-wise for education overall the story seems different. This could be related to Richard Florida’s debated findings that vibrant, creative cities require more kinds of educated, artistic people than just engineers. Let’s hope we can keep our edge.
Finally the third advantage they cite for the US is the ability to hire and fire essentially at will – meaning poor performance or poor fit will eventually catch up and sink those individuals so they can be replaced with potentially better suited managers. Certainly 1 and 3 would go some distance to explaining the systematic issues behind the poorer performance they show in government versus business and in family owned versus other companies.
It would be great to see historical data showing how fast other countries and sectors might be catching up, but again the major observation needs to be that there is lots of room for groups that want to get ahead to do so. That 20% estimate for effective leaders is the most enlightening figure in all of management education and leadership development. It ought to be a really easy target to beat, yet all the potential financial rewards, all the willingness to fire poor performers, the development of more effective talent management and the drive to educate more people more widely hasn’t yet taken us to new heights as far as we can see.
23 Apr
A title mentioning the Dilbert management style caught my eye recently. shared by Karl Moore on Mintzberg’s Coaching Ourselves blog. What a convoluted way some items have of catching our attention. At first I was outraged by blogger Steve Denning’s analysis of Bob Sutton’s work. If this sounds like name dropping, it is. Everyone’s getting in on act of critiquing what’s wrong with management and this only accelerates the confusion around the metaphorical, yet too real financial meltdown and the latest actual reactor meltdowns in Japan – stunning examples of bad management. Are commentators starting to stumble over each other so much we aren’t listening to each other’s key points and the proof?
We all know something’s wrong with management the way we’ve been doing it. and yet the tools we’d been using were great for getting us out of the industrial revolution into scientific management and through the amazing economic and technical progress that got us to computers, the Internet, incessant world-travel and fabulous education for vast numbers of people. The pace of learning and change has been frantic and appears not to be slowing in the least, as well it might not given how many of us are contributing. It’s a double-edged sword. Our prolific contributions are making it harder to pick out effective strategies, even though the sheer volume seems to focus now in one single direction. ![]()
With Steve Denning’s piece we’re faced with a puzzle. There are so many brilliant minds competing to dump their ideas on the Internet and into seminars and conferences on every imaginable subject, where can we find anyone stepping back and making sense of the whole thing. Boards and executives undoubtedly are paying attention to advice for better management, but the cacophony of comment and criticism has to be deafening and confusing.
It turns out, when I dug further into Denning’s work, that he’s a recognized advanced thinker in these areas, yet his premise that Sutton’s work is worthless is inane. Stanford’s Sutton is author of “The No Asshole Rule,” which I’ve mentioned positively before, and more recently “Good Boss, Bad Boss” and he went on to have the most popular blog post last year on HBR blogs – 12 Things Good Bosses Believe. Denning mistakenly trashes Sutton’s premise that managers should care about employees.
This alone is worth taking time to debunk because the tsunami of opinion is running totally in favor of Sutton’s view, not Denning’s. The fact a major management guru can bash this is news indeed. but it also shows the limits of individuals attempting to deal logically with the full subject of what needs to change in managing organizations.
Denning argues Sutton is pandering to an ineffective philosophy when he claims we ought to value employees and treat them decently, that this is a Dilbert approach where middle managers ‘do nothing but try to get by’ and mollify employees. This seems like a truly weird argument to me on all counts. I appreciate that creative minds make mistakes on the way to new insights, but Denning’s main point seems ridiculous as a standalone. The only thing that counts he insists is that every manager and employee strive to “delight the customer” and moving our focus off that to worry about employees is foolish.
Right off the top, why does this have to be a standalone objective? Why either/or? Have we not progressed past the simple view that we can focus on only one thing at a time? Why can’t we help delight customers by treating employees as we want them to treat customers – a truism that Sears Roebuck demonstrated as a measurable example of success some 20 years ago.
Pretty much everyone can surely relate. One personal example – on vacation visits to Florida my spouse absolutely insists on shopping at Publix over its main competitor there, Winn Dixie, and I agree. When you look at the stores, I’d guess Winn Dixie’s are a bit more modern and widely stocked where we go, aiming to ‘delight’ customers with product, but what distinguishes Publix is tough to copy or buy – they truly seem to treat staff decently, who in turn treat each other and customers like real individual people, from the managers to the checkout staff to the mentally challenged baggers they often employ. The difference is palpable and it more than makes up for lacking new, glitzy or massive stores. We just flat out feel better in their stores. They delight us.
What even a single example illustrates is that you can do both, that’s it’s not either/or. So where have we failed with Denning to get this very basic idea across? Why is there such a divide between effective, decent HR strategy and line-management thinking that even a guru misses it entirely? It’s surely not rocket science to suggest that customers are more likely to be ‘delighted’ shopping with happy, friendly people serving than with sour, grumpy workers who are treated badly by managers.
28 Feb
Just when you think it’s all bad news, a writer comes along with a fundamentally optimistic view. That’s certainly true of a new book, The Rational Optimist, by Matt Ridley. In fact, it’s so optimistic, you are bound to find something unbelievable about it, but it makes you question the prevailing pessimism and perhaps rightly so. He even argues we don’t have a global warming crisis and that we can overcome our energy shortages, though he’s slightly less optimistic about water shortages.
What he argues basically is what I’ve been harping on – that we can solve pretty much any of the
problems facing us with ingenuity if we build our capacity to innovate in all our organizations. He makes his arguments in context of a very interesting survey of history in which he insists the urge to trade, to do business with each other, leads to each of us specializing in some skill set we can get exceptionally good at. therefore producing far more than if each of us tried to produce all the things we individually need. By becoming specialized we can ‘over-produce’ beyond what we each need and thus trade the surpluses among ourselves so we all have more of everything. It’s fascinating to view the history of the world in this light (and I have to agree generally with his conclusions).
Overall it’s a great, positive message for those who choose to work in commercial endeavors. Of course, not surprisingly my copy was a gift from a Canadian mutual fund company, Vertex One, that stands to gain if we believe the future is literally worth investing in. Good marketing (the second year in a row they’ve chosen a book that is definitely worth not only reading, but thinking about). On a cautionary note, this isn’t a fund recommendation, but for disclosure, it is one I hold a small stake in. It definitely promotes the concept that business can have a significant role in saving the world, perhaps not a surprise from a West coast company.
Of course, we can never be sure of the future, but Ridley’s makes a good point that throughout our spectacular rise to technological superiority of today, there have always been pessimists predicting we would run out of the ability to improve things. Every generation has predicted we’d run out of food, etc., but so far we haven’t. so far.
What we can’t disagree with is his conclusion that we better continue to innovate at a rapid pace or we most certainly will be faced with problems the globe can’t overcome. Innovation has become the prime strategic imperative and we know that a unique sort of leadership and human resources environment is required to support that. In one sense, we’ve set ourselves on a treadmill and have to keep it going at least until we find population numbers decreasing significantly (hopefully not due to catastrophe). His view of ‘evolution’ is most interesting, too, arguing we’re the only species to have ‘evolved’ through social re-structuring, education and development. It’s a powerful conclusion, but just how true or how much we can count on this continuing remains to be seen.
Suffice it to say, I enjoyed the new insights and would recommend this for many college curricula.
23 Jan
In the last post I commented on conclusions from the book Kluge by Gary Marcus, about the odd ways human beings think due to the history of how our brains evolved. The word kluge describes a haphazard assembly of ‘stuff’ that is put together the way is it because it works, it solves some immediate problem and then further developments tend to institutionalize the earlier, odd, less than fully logical set up.
We needed instant emotional reactions to help us deal with predators and other dangers in our early evolution, but later needed more logical thinking to get beyond that stage. Nevertheless, while instant emotional ‘conclusions’ don’t help as much as logic in today’s world, the latter has never developed enough to fully balance or overcome emotion. So often we make decisions based on emotion and rationalize them afterward rather than logic first even when that would be better. ![]()
Marcus makes a solid case that our thinking tends to be biased consistently to see things as we want to see them and to be overly optimistic at times about our own powers of observation and thinking in ways that facilitate conclusions we hope for. We think we’re worth more or otherwise over-estimate our contributions when we’re actually fairly average, for instance, so everyone, including CEOs who more or less have the power to leverage better rewards for themselves, routinely expect larger than average pay increases even in tough economic times when they’re laying off others to save money.
A recent study of executives showed they know managers are generally better at technical skills than people skills like dealing with conflict, coaching and developing others, which consistently rank lowest for the very large majority of executives. People skills are where emotions get in the way of logic. So one might think that’s good news – they see the problem, which is usually the first step to improving. But you’d be wrong. It’s not that they realize THEY are short of people skills themselves! Executives see that OTHER managers are weak, but Korn Ferry’s extensive studies estimate 82% of executives need to improve in people skills. Since they don’t know this, only 15% actually said they felt these were areas where THEY needed help. While they could correctly identify such needs in general (probably areas they think others need to improve at), they were woefully off on where they themselves fit.
So what does Marcus recommend we do with this sort of information? First, make it widely known. Help people see these sorts of limitations apply so widely we ought to assume some apply to ourselves at least to some extent and work on doing something about it. In other words, reflect. Pay attention to research and knowledge that’s developing in the field of human thinking and behavior and take into account that your own decisions and habits may need to become more logical and careful. Pay attention to whether you’re about to make a decision that others will recognize as illogical. Get others’ input, work as teams, but not just with senior members, add diversity of thought and viewpoints. And, for Boards of Directors, do all you can to ensure individuals aren’t deciding their own pay and perks or granting their top teams compensation that will inevitably put upward pressure on their own.
Pay is just one easy example of where these flaws become highly visible. Early, well-known research shows everyone would like 20% more money, but that pay increases, no matter how good, become taken for granted in a year or so and 20% more again becomes the new objective. This is just as true if you make $2 million a year as $20,000. For instance, it’s also been shown that when CEOs order studies of the best place to relocate head offices, they almost inevitably concluded it should be closer to wherever the CEO lives. More research shows more pay doesn’t equate to more long run happiness above a fairly moderate pay level. How many other corporate decisions are being made the same way, based on how one or two people FEEL? And, of course, it isn’t just CEOs deciding in their own favor, but all of us tending to. They just happen to be somewhat more visible. Are we smart enough to find ways to balance these all too human pressures?
11 Jan
Just when you think you’ll have time to write, life intervenes it seems. In the next while I’ll concentrate on interesting tidbits. In the online HR MBA class I assist with this article justifying introverts in business got some good discussion and seemed to reassure people they had a chance to get ahead.
It correctly notes about 40% of leaders in business (and elsewhere) are actually introverts. That shouldn’t be such a surprise, but it usually is. Being quiet, thoughtful and liking ‘alone time’ has never stopped actors, singers, speakers and leaders in other supposedly ‘extraverted’ endeavors from excelling. It’s not as clearly understood as other ‘obvious’ leadership traits that we are normally trained to think of, but introversion can contribute a lot. We need balance, and who better to understand how to balance the demands for being out in public with thoughtfulness than people who can see both.
In a presentation I have coming up for a senior university class on leadership, I thought I should show some photos of myself as a kid so these younger students could related to the gray-haired, bespectacled guy in front of them – someone who was a super shy, introverted kid who ultimately was able to learn to succeed as an executive and speaker. To me the transformation has always seemed almost unbelievable. I dragged out some old shots and was surprised to find I didn’t look as scrawny and geeky as I thought and I could actually see the progress, in increments, from that kid to the full fledged executive I ultimately became.
The kid……….. the union leader……… the graying executive.
So I thought I’d go find a photo of someone somewhat ‘geeky’ looking like what I had in my mind when I thought of myself in those teenage years. What turned up was a photo I will show the class with the comment, “As a kid I was convinced no one who looked the following guy, like how I thought I was, could ever be a leader, let alone someone who could make real contributions.” Nobody ever told me leaders could be like this unless they more or less walked on water. I think the message here is, when you see yourself as weak and introverted, it almost doesn’t matter what you look like – you’ve put limits on yourself that no one else is seeing. Thankfully I had experiences that slowly, but surely helped me develop a different style of behavior, yet I continued to see myself as the shy kid I was once. Here’s that photo:
I wish.!
23 Nov
Wow. This is the next “Good to Great” – and only 7 years after that, not 20 as Collins’ book was after “In Search of Excellence.” Mintzberg once and for all establishes that management and leadership are immensely complex and have to be learned in the heat of practicing them, not from books or traditional courses.
It’s one thing to say this to people and quite another to assemble a massive review, in very short, but dense form, proving it in the words and findings of a century of researchers.
I wrote the rest of this post to a friend, another keen observer, David Creelman of Creelman Research, who brought it to my attention. I realize this is actually a review:
Just finished Managing and have some thoughts it seems good to put down here. It’s an impressive assembly of far-reaching thinking. I think it will probably frustrate and confuse a lot of readers, which is too bad, but possibly an inevitable step in recognizing what really works. The management/leadership complex is just that – very, very complex without any clear single answers, very situational and requiring unique fit or adaptability to succeed at. I agree with the general premise, but would word it a bit differently. I would say not have said we are wrong to hold up leaders as worthy of examination and sometimes praise, but we are wrong to deify the idea of leader and leadership (and wrong to talk about it as a set of things that can be learned by the usual rote learning we get in schools). However, I believe that leaders do make a difference if they operate as Mintzberg outlines – constantly learning and reflecting and by trial and error efforts to improve things. I’m sure he would agree and wonder a bit why he didn’t make that more clear.
As I see it, organizations solidify the ossified structures they form in hopes of sustaining themselves as the original driving leader(s) move on. Theoretically the structure that worked should be able to adapt with new people coming into the slots and changing them to fit changing circumstances, but we haven’t paid nearly enough attention to that concept. We treat the structure almost as sacred once it’s in place (despite the tendency to constantly ‘re-organize’ to solve every problem, which really amounts to re-arranging the deck chairs – it doesn’t really change much – the power hierarchy is too attractive to those rising in it). To some extent the organization structure does ensure some continuity, but for how long if it doesn’t evolve?
It’s easy for those appointed to assume that they somehow inherit the stature of those who built the organization in the first place, not realizing it wasn’t a one-person show, but a cooperative effort that may be seen from outside to be one person. The fact that some initial leaders are strong-man types who create by force and maintain power by force leads to confusion as well. When we know that 90% plus of leaders believe they’re in the smartest 10%, it’s easy to see why they are so willing to try to impose their vision as Mintzberg points out is so common among those newly promoted. At that moment you’re at the peak of confidence in your infallibility; it’s just been proven, so why not impose it? Then it’s hard to back down and reveal your uncertainty as things begin not to work. You may not even realize it isn’t working and just apply more force to drive things the way you ‘see they will work if only everyone cooperates (with your vision).’
We need to help people see that maintaining and developing existing organizations is no less challenging, but very different from the initiating, entrepreneurial phase, that a different type of leader, adept with equally difficult, but different challenges, is needed – one who needs to manage and lead in a very different way, with more visible involvement of others typically, building a truly learning organization, which has to start with a learning leader.
17 Aug
Or are leaders bad all on their own? Among recent blog posts one asked whether employees are setting bosses up for failure by expecting perfection on every issue. Can bosses actually succeed? Why does it seem so many are vilified? What can be done about it? It does sometimes seem as if bosses can never please employees. How much is up to the employee?
These are powerful, important questions that we’re finally beginning to see asked and answered more often. I like this practical answer at Chief Learning Officer magazine online. But it’s important to understand the role employees play and what anyone can do about it.
This came to mind again with a phone call from a colleague wanting to know what makes a good leader and venting about two hours they’d just spent listening to a manager gripe about their CEO in a small company. “The boss is selfish, lazy, uninterested in anyone’s ideas for improvements,” went the complaint, “My great talents aren’t being used; I’m only staying for the money.” Sound familiar? We’re told about half of all employees or more feel this way much of the time.
In varying degrees we hear this everywhere. I’ve quoted Bob Eichinger of Lominger/Korn Ferry before – that only about 18% of managers have the key people skills for leading and developing others, that these skills fall in the lowest 20% of skills among most managers. Yet, to answer my friend’s question about what leadership is, people skills ARE leadership, so the scarcity of them indicates exactly how scarce effective leadership is in organizations. If we could raise that just 10% or 15% across the board, results would skyrocket.
Once a company grows beyond about 25 to 50 employees in size, employees can no longer be simply extensions of the leaders abilities. Until then a really hardworking boss can probably get around and tell each employee exactly what to do and how every day. Above that size the futility of that should be obvious. Employees have to be empowered and entrusted to take initiative and do things the boss hasn’t specifically ordered or blessed, so the leader’s role becomes encouraging, stimulating creativity, coordinating and supporting initiative where it makes sense – a very different job than controlling every activity day by day.
We shouldn’t be vilifying weak leaders as much as asking ourselves how best to improve their skills and help them transition from command and control styles to coaching and developing. Companies, even many of the biggest and best funded, some of whom spend millions on leadership training, are doing a lousy job of this in the main. How else to account for the finding that 82% of leaders lack the most critical skills for their roles. Hopefully the blizzard of articles and books on what it takes to get results with people will start to make a dent in that gap.
More on this in future posts.
27 Jul
As you may have noticed, I took considerable time off posting to contemplate a number of things.
First my interest in studying happiness led me to attend the First World Congress of the International Positive Psychology Association based around the first MA course set up Marty Seligman of Penn State, whose book, Learned Optimism, I always highly recommend). The inexpensive, well-attended (1500) conference was great and all the ‘who’s who’ of Positive Psych presented – Diener, Haidt, Fredrickson (many of whom I’ve mentioned in posts previously) and many others, some known, others not so much. An amazing amount of research has been done in 10 years of the concept’s short life and a number of countries have actually absorbed the general principles as a way of measuring the success of government policy. After all, what is the purpose of government if not to create the environment for happier lives. Perhaps this is even a concept business might look at. We know for a fact that happier employees are more productive. More on this as we go forward.
Second, I spent considerable time thinking about why I don’t post more. And concluded, not totally surprisingly, that I only feel like doing so when I think I have something of value to say. What a novel concept. Of course, it’s very personal since, like most sites now, there is some unknown, potentially large number of people who MAY be reading some of this, but typically a lot fewer than 1% comment, so you have no real measure. Perhaps there are thousands of people out there just dying to hear everything that pops into my head. Somehow I pretty much doubt that. If so, I apologize, but you’re always welcome to let me know.
In the mean time, I will stick to my new timetable – whenever something is significant in my opinion. I’m not in this to pump out posts every day or attract business or a huge following, but to see if ideas can evolve into useful forward movement. With so many blogs and discussion groups desperate for readers, attention and significance, I’m happy not to compete every day. It will either add up to value in the long run or it won’t. Over time the Internet needs better ways to help people locate material of true interest to them. Maybe then the right people will find what they need here. In the mean time I’ll keep at it. occasionally.
Third, this coincided with some thinking about ‘full retirement’ whatever that might look like. I concluded that for me it probably looks like what I’m doing – bits of this and that – work, volunteering, travel, etc., all melded together. My idea of great travel was going to the conference, for instance. And I’m blessed with a spouse who is happy to tour those towns on her own and then guide me to the best parts we can share together.
My main conclusion was I should stop soul-searching about all of it – the ‘worry’ was a drag and I enjoy the stuff I do. While I don’t market, the work coming in is just fine. I like to be engaged and hopefully always will be, but not at the expense of a strenuous sales effort. Again, either people are interested or they’re not. Wouldn’t it be great if the world could work this way for everyone. It’s great that people write about what they and others are doing and keep us aware of new products and services. We all want to hear about things we think might improve our lot, but. do we really want the hard-driving sales ‘attack’ that so many businesses feel they must keep up?
22 May
Of the “Big Five” personality traits, the two David Brooks (my last post) culled from research that are more common among big company CEOs should be no surprise. For workers in general the most important has always been known – Conscientiousness. That is about following through, doing what you said you would, delivering the result. There’s an overtone of dogged persistence, true, but lots of people stick to their word without seeming to have fixate on detail or being ‘grinders.’
The second trait he pulled out is Emotional Stability. Is it any wonder a big company CEO might need the skills or temperament to tolerate rocky surroundings and keep on trucking? You can’t get to the top without being severely buffeted by conflicting demands, crazy work expectations and dramatically challenging personalities around you. To forge ahead Conscientiously in that environment takes Emotional Stability, for sure. We hope in personal life to have it a bit smoother, but for many it isn’t too different.
The fact these traits are possessed by pretty much every big company exec – and needed in most of what we ourselves do – stick-to-it-iveness and the emotional balance to persist long enough to get results – should be no surprise. So they’re ‘common’ to everyone. But that’s not to say these are their only traits nor that having them makes them ‘dull’ as Brooks argues. The top notch people I mentioned are or were highly unique personalities that we’d describe as anything, but dull.
The problem is exactly that these two are not ‘enough’ to get the very best results. Beyond sticking to it and staying the course, we need to be creative, able to work well in teams and energetic enough to care to, whatever the origin of that energy – belief, faith, commitment to a great goal, faith in people, whatever. These other three can all come from very different sources, hence the uniqueness of personality and style we see. When we look deeper we see that the first two traits can come from very different sources, too, not just gritting our teeth discipline.
Viva variety. Yet we see the five core needs for success are pretty much the same five in every endeavor, for every person. HOW they achieve them can be unique, but not whether they work. These are the five skill areas I work to help people discover and develop – ones that turn up in every book on success and which anyone can build for themselves if they simply keep focused and keep adding to steadily, conscientiously. throughout our entire lives: it isn’t over till it’s over. unless you flat out give up.
8 Feb
Just when you might be depressed by the thought that work pressure only goes up, up, up and things only get worse, recent reports note the opposite only a few months ago in mutually confirming studies.
While it remains to be seen whether the current economic crisis will reverse this again, it’s reassuring to know things can improve. In the UK concerns about work stress seemed to be reaching an all time high when I spoke to their national HR group a couple of years ago. Recently the same group noted cautiously that work hours are falling and that this seems to indicate that individuals are exerting more control.
At the same time, Queen’s University’s Industrial Relations Centre highlights an international study of nearly 10,000 executives from the Journal of Applied Psychology (2008, Vol 93, #4, pp.789-805) showing some male and
female managers achieve better work-life balance and, moreover, those who do actually have higher career advancement potential.
Interestingly, an HBR book published last May, Total Leadership, by Stewart Friedman, founding Director of Wharton’s Leadership Program, reinforces this, arguing convincingly that leaders can only improve their work performance by simultaneously improving in four areas of life – work, community, family and self. The subtitle: “Be a better leader; have a better life!” Balance!! Need I say it again?
Human Capital Institute