Archive for the ‘Business/Strategy’ Category

Every so often a new idea comes along that you know will have huge impact – like email or Google – simple, yet startlingly powerful. Can you see the implications beyond the basics?

One area that’s particularly challenging to train or develop, but extremely important in 21st Century leadership is how to help people improve at managing emotional content.

EI or EQ (emotional intelligence or quotient) has proven to be a key missing ingredient for a lot of otherwise promising managers and has never been more necessary than in dealing with today’s more capable workforce and knowledgeable customers. Only by engaging them fully and not turning them off can we unleash the creativity and innovation needed to keep up and keep ahead.

Now, from New Brunswick, a small start-up called Lymbix, has turned a budding idea into a practical application that just might help. but only if enough senior managers take it seriously and ‘walk the talk.’ ToneCheck site

It’s an add-in for Outlook email called ToneCheck (first version actually free for now at www.tonecheck.com). Like Spell Check, but for emotional content, it can review your email just before sending to see if it is likely to be misunderstood or cause offense. Simple to use, it highlights any section that sounds angry or fits  other emotional descriptors so you can edit if you want to be sure you’re getting across not just your idea, but the tone you’re trying for.

According to Lymbix Founder and CEO, Matt Eldridge, “We want to help organizations precisely determine tone in any text-based communication. Email  and text messaging services simply don’t allow us to gauge body language and verbal queues, leaving us with just text. With the growth of business email, it is becoming more critical to get the tone of your message right because you often don’t get a second chance with a customer of an employee.” (And can’t we all just think of times when we wish we’d taken a second look before hitting ‘Send?’)

This was developed partly in response to academic research studies that show 50% of emails are misunderstood by providing a practical way to review your hasty typing to make sure it will get your message across effectively. Though it takes just seconds to use, the key will be establishing that it’s needed. Unfortunately many of those who need it most will undoubtedly be last to click the check button.

The good news is senior executives (and HR) have an opportunity to make it clear they’re using it themselves and expect others to as well. People do what the boss does and what the culture expects especially if it takes only moments. The better news is if we can get even a few of our less effective managers to improve at this (and this tool is a learning guide that is private, easy to use and causes them to think in emotional terms they may never have bothered much about before) we all benefit.

We already see developments in robotic devices that assess emotions in people, that read faces, tones and body language and report or respond appropriately to others’ emotional states. Look for this area to evolve considerably in the next decade or two.

Not only for email, but there’s a huge potential spin-off benefit here. As people work privately to correct their shortfalls via email edits, they inevitably will learn to think before speaking as well before as snapping off emails. Imagine if a lot of ‘foot in mouth’ went away as a result of a handy tool people can practice with on their own as opposed to anyone preaching to them about the need to ‘be more sensitive.’ No one is comfortable on either side of an EQ conversation. Here’s a way to automate learning that’s increasingly important for our organizations to master for future success.

The key question is whether you and your teams will be ahead of this curve or less effective than those who are. This budding Canadian success story so far has one workable tool and more planned. Who better to help the world learn to be more tuned to human effectiveness than Canada – but just handing it to staff won’t ensure it’s used. It will requires clear knowledge that it is being used and is expected right to the highest levels. Isn’t that worth the saving in upset customers and disengaged staff? Just imagine 50% of emails today are causing problems. and what do we spend more time doing?

Diversity Powers Innovation

While moderating a panel presentation on Diversity last week, some points really struck home above and beyond some of the issues usually raised. First and foremost, “diversity powers innovation” is becoming clearer and clearer as time moves on. And innovation is the greatest need businesses have going into the an unpredictable future in which dozens of competitors are innovating at a furious pace using the massive amount of information generated by all of us on the Internet to get ideas and ‘how to’ information they can copy.

The most diverse teams come up with the widest range of ideas and offer the wide range of skills needed to implement them. But they are a challenge to manage, so better leadership is required.workers

What’s clear as well is that a single leader at the top of an organization or function makes an enormous difference. Only when the CEO (or function leader) puts an issue on his or her agenda, talks about it personally and follows its progress, does anything happen. This should be obvious, but like so many “obvious” facts, it is overlooked in a vast number of organizations.

The problem is you can’t talk about and monitor everything at once. You can’t make everything a priority. That confuses people, wears them out and makes them change priorities frequently as each item comes to the fore, so ultimately nothing is actually a priority except keeping your head above water – another “obvious” fact that is constantly ignored.

So what should a leader do? Again it sounds easy, but isn’t – pick the top three or four things and use them to drive results. Diversity today has to be among them because of the need for innovation, let alone that our employees, customers and other stakeholders are now more diverse and will work for, shop with and invest in only those they believe are on the right path (the latter being the good and sufficient reasons normally cited by diversity experts). Of all of these, it is the over-riding need for innovation that will ultimately drive the point home, but that hasn’t struck many organizations yet.

I’ll offer two examples that popped up on my screen recently. First is Antonio Perez talking specifically about how he learned the value of diversity and used it to resurrect Eastman Kodak, a company most of us thought was doomed for lack of it’s recognition that film was a fading commodity: http://bit.ly/9VbSkB and second, Clay Shirky, the media guru, talking about why newspapers have been even slower to recognize and find solutions for their dilemmas with the Internet eating their lunch (or more specifically their subscribers): http://bit.ly/18tDhy.

The more hidden point all this makes is that executives, human as they are themselves, tend to overlook basic human reasons why things are important. We see that diversity is valuable and can contribute, but we set up a ‘program’ for it and expect that will suffice. It won’t because our employees need reminders that matter from a boss that really cares about the issue and about them. We hesitate to make a ‘touchy feely’ item like diversity one of the top three objectives because we can’t quite overcome the feeling that today’s sales or marketing initiatives are more important. The fact is those will get done. done better than any one of us could do alone. if, but only if, we have a diverse and capable team around us. Get the right people in place and keep them motivated, that comes first. Is it something you can see in operation in your organization?

Long Term Challenges in HR

I suspect we often have trouble with messaging in HR because some key long term strategy issues appear trivial to many people. For instance, pursuing wider interests than just sales and profit not only takes one’s mind off day-to-day stress and so improves performance, but helps you notice how things work similarly in different contexts. Personal struggles can shed light on leadership challenges.

Here’s an example. A problem in HR is so many of our efforts only pay off in a big way if they’re consistently applied over time. Yet we work in organizations where leaders dream of quick solutions and want to hop from program to program in hopes some new phenomenon will instantly solve immediate problems. Can you deliver both?

I ran into an interesting piece in the online Gallup Journal (http://bit.ly/9WZXTE) about creating personal well-being (a sometime topic I follow). It makes the point strongly that many personal solutions we pursue – for example, losing weight by eating right – actually align for value in the short term, too – eating sensibly keeps you awake and energized through afternoons where you’d be tired and sleepy if you eat the wrong lunch .and long term you lose weight. We knowimage these things more or less, but we seldom push them to logical conclusion. For some reason even though we know both long and short term effects are positive and therefore aligned, we still gravitate to old, comforting habits rather than fully developing new, better ones even though we also know the new ones would become comfortable and comforting in time if we simply persist. Managers have the same problem building better management habits.

Take something like getting managers to recognize employees good work every day. Establishing a positive recognition culture has tremendous impact on results long term, but it also gets great reactions and increases motivation right away employee by employee. We tend to take both these for granted. Many managers hear the message, but still fall back immediately into their comfortable habits of command and control with no recognition. Why praise someone who’s merely done what you asked (likely not even as well as you could have)? If instead you’re asking them to think up better solutions, some of their work will genuinely surprise and please you and it becomes easy to say ‘great idea.’

Buried in these seemingly minor, hard to grasp human foibles are keys to vastly better outcomes for everyone. There doesn’t seem to be a magic pill to overcome habit inertia. At present the only help we seem able to offer is explanations. They seem to make more sense when I see how they work so similarly in personal and work situations. Will such information help line managers change their style? Will it help me eat protein as a late night snack instead of chips? Can that sort of insight help my clients to see the value of asking for ideas and praising them instead of their usual ’safe’ style of telling staff what to do day by day?

Is there a way to make such small insights help more with implementing long term HR strategies better? How can we make that leap?

Interesting Leadership Blog

Having just returned from the think-tank-like HR|People & Strategy 2010 conference in San Diego, some follow up searching led to a blog I hadn’t found previously that has some very interesting analyses of current trends in management. It’s well researched, including some references to ideas and individuals who were presented at the conference.

It’s a UK organization called Four Groups and the article that particularly caughtFour Groups & blog my eye is this one. Issues like portability of talent, the futility of individual bonuses and other myths surrounding top talent are not only topical in the HR field, but apply to any organization that wants to maximize performance. This piece also contains a link to an interview with Dr. Karen Stephenson, the only speaker at the San Diego conference to get a standing ovation from the human resource professionals present.

Dr. Stephenson spoke from years of research about the current trend toward emphasizing trust within organizations. These are all timely, of course, in light of how much trust and confidence have been lost by the public in business generally, and these are highly related to my theme of ‘fix the jerks’ that emphasizes how poor leadership destroys value in organizations of all shapes and sizes.

What also comes out of this is how wide spread the move to more detailed understanding of HR is and how much there is to study.

One advantage of reading a lot of HR blogs and news in a short time is that items fall together and suggest new ideas. The Canadian HR Reporter piece about HR in Vietnam and Cambodia (“Growing HR in Vietnam, Cambodia,” March 8, 2010), got me re-reading last year’s piece about HR in China (“Business of people behind Great Wall,” Canadian HR Reporter, May 4, 2009).CHRR Great strides are being made in all three countries, but some toss-away comments stand out most.

The author’s observation that there is “universal appreciation that a happy workforce is a productive workforce” reminded me that this is the origin of a major debate about how to define engagement versus commitment versus “employee satisfaction.” The latter, presumably, is closest to “happiness” and doesn’t correlate with productivity as well as the others, according to a number of observers.

Are we just splitting hairs or is this a key point to make with senior executives, especially those who equate these factors and are particularly skeptical of being sold plans designed to “make employees happy.”

Happiness may well be, and usually is no doubt, a long term byproduct of both engagement and productivity, but likely can’t be purely the purpose. On the other side of the coin, this is the reverse of the truism that money shouldn’t be made the primary object of business either, but is more often a byproduct of good service and filling customer needs. You can make money or make employees happy short term but, to sustain results, you need engagement, productivity and good service consistently for both. Focusing solely on outcomes – whether money or happiness – tends to overlook the core human issues that really engage and satisfy employees and drive results over the long haul.

I was even more interested to note the comment (about China) that they have a problem getting senior HR people engaged in their HR association as is the case in Canada (and in the United States) – another “engagement” issue, this time in-house so to speak. The Strategic Capability Network and the Human Resource Planning Society specifically target and do well at attracting senior HR people versus main-stream, certification-granting associations. Perhaps it’s just that there’s a place for both or perhaps a desire for exclusive focus on senior issues or smaller groups (since both these fit) for senior execs. But even within these focused groups, the number of senior executives turning out is still very small as a percentage of the total.

Is it that we in HR feel we have human resources all figured out and so want to attend meetings with a broader range of functions and function heads or do those other areas seem more important to learn more about? We now know effective HR can make a far bigger difference to organization results than finance or technology, in part because there are so few companies that do it well and knowledge of how to do it well is not as widespread. So rather than us engaging in their territory, perhaps we have another engagement issue of pulling these other function heads into our association meetings along with us. Somewhat like an insightful comment on my last blog post - that engagement has to go two-ways. As much as we want employees to engage in key issues, we need senior execs to engage with the key issues that stand to really drive results: HR issues. That’s something we – and they – still have more to learn about.

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.

How Fast Can a Behemoth Change Culture?

Giant GM is struggling to change, that much is certain. But recent reports confuse the reader about what’s really going on. Take Workforce Week for October 7 and October 19. In various ways, from the headlines to content, both articles suggest that new CEO (Fritz Henderson), named March 30 to replace the former old-style executive (Rick Wagoner), has ‘done’ the work needed to change the culture.

Depending on how you read these, the messages are puzzling. The long term HR head is replaced with a former operations executive. Layers of management have been laid off to streamline things and shake up the physical bureaucracy, but whether this shakes the bureaucratic habits of thinking and behavior that inevitably form the anchors of culture remains to be seen. HR is dropped from some key operating senior teams, but is tagged as an ‘enabler’ of the change process. Enabling from the outside?

There are suggestions that the new CEO sees the culture change as ‘done’ (or more likely sees it as having been given a momentum-driving start through his bankruptcy restructuring, which appears to have been sold to managers as ‘a gift’). There are other hints he understands it must be a continuing process. I’mSwitchpoints skeptical of calling precipitous down-sizing a gift. For sure you can try to make lemonade from such lemons and if you look at the CN restructuring (in Les Dakens excellent new book, Switchpoints) that preceded the sort of culture change GM is talking about, you can see it is possible to make necessity work more for you than against you, but it’s still a wrenching process with some uncertainty as to what it produces.

You can also see with the CN example that it took 10 years in various stages to evolve something like the full impact on culture that GM almost certainly needs. Yes, you can make early gains, but if you assume that’s all, you will certainly fall short of what’s possible and perhaps even create a situation where culture falls back toward what it used to be. Habits take time and repetition to change.

It’s very hard to tell from reports such as this whether the people managing the new structure really understand that it takes years of stable and continuing reinforcement of consistent practices to actually change culture. Are reporters putting their interpretations on things – that change is ‘done’ or that it is ‘in progress?’ We won’t know for some time, but the reporting is worrisome.

Blogging and more blogging

Looks like I will be doing more blogging for my own site as several organizations I work with are pressing for more blog postings from all their contributors and it seems like once you’re in the process, you just naturally see more things to comment on. Hopefully the quality doesn’t go down with volume.

Several recent developments suggest blogging is far from dying, despite those who still see it as a passing fad or as being replaced by twitter. BNet has startedbnet up with a massive volume of email alerts you can sign up for, pointing to blogs   and information from Harvard B-School and many other business sources – a true aggregator of business/management information. Is it over-kill?

Although none of us is sure we need all the stuff, it’s amazing how interesting the headlines can be. One case in point for me was yesterdays alert pointing to a blog by former HBS President Rosabeth Moss Kanter – the Top 10 Ways to Find Joy at Work – something many of us could use more of. One of the most useful things on top blogs is the comment section.

A similar approach is being taken by Fast Company with it’s formerly occasional newsletters. It will be interesting to see if daily, yes daily, newsletters will turn people off or attract more readers. Every site is looking for the magic formula. At least when it arrives every day I feel free to ditch it if I’m too busy, knowing that I’m only hours away from my next fix. Interestingly I often click because of the subject line, but find other article of more interest when I get there.

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.

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