Old school culture change of blood and guts doesn’t work anymore.

I started helping organizations change their culture strategically in the mid-1990s.  I recently pulled out a handbook from that era written by Price Pritchett and Ron Pound, a leading Dallas based consulting firm at the time.  This 1993 handbook was called “High Velocity Culture Change.”   Here are some quotes that reflect the mindset of an era where org change centered on a blood and guts approach!

“Watching a corporate culture change is like walking through a war zone.  You see misery. Wreckage. Trauma.” pg. 22

“Morale craters. Attitudes sour. Trust evaporates quicker than an early morning fog.  Stress levels hit all-time highs.” pg. 32

“The right kinds of moves are guaranteed to cause stiff opposition.  Your popularity rating will go into free fall.” pg 38

“Give your best people the big jobs. As for the others…reassign them. Fire them. Or neutralize them somehow. Remember that money is power. The more you make your adversaries dependent on you for funding their financial needs, the more you gain control.” pg. 38

“Setting out to change the culture is like taking on an army of secret police.  You know the enemy is everywhere, ready to crack down on the people who don’t conform. Cold-blooded and forever watchful, culture cannot tolerate the unconventional.” pg 40

“The are various reasons for a high-velocity approach to culture change. There are no valid arguments for going slowly.” pg 44

Whew.  Is your heart pounding and blood pressure through the roof?  The latter statement really knocks me over since going slowly upfront is the secret to rapid culture change in my experience i.e. “Leadership by the inch is a cinch!”

While there is no question that culture strongly resists change, the old school blood and guts approach damages trust so badly it can never be rebuilt.  Indeed, the backlash from that era has been so great that many corporate leaders today are afraid to address culture change at all!  That is foolish too, because strategic growth frequently needs the culture to change (but not always).

The Near-Far Culture Shift method outlined in “Who’s The Driver Anyway?” is one approach that changes org culture without the pain and turmoil of the bad, old days.  It works because employees are taught to recognize the existing culture as it is happening.  They learn a common language for collaboratively shifting who gets to decide.  This is the key to success because org culture is controlled by who gets to decide. When people agree upfront to change how decisions get made, then the culture itself changes naturally and builds trust along the way.  The effect is exponential -small at first, large later on.

Fewer and fewer organizations can use old-school command and control to force change on their staff.  Employee legal rights are stronger, severance costs are higher and turnover risk is greater.  Leaders themselves don’t want the high stress and reputational damage.  Social media has changed that aspect of leadership in a major way.

The Near-Far method provides a logical, clear method to strategically “decide” what is the right culture, including one that is far more flexible and adaptive.  It is simple to understand, collaborative to implement and real in its impact.

To learn more, purchase the book or go to our website.

Hey Mr CEO, what is your Culture Strategy?

If culture eats strategy for breakfast, as Peter Drucker suggests, then it only makes sense to have a culture strategy.  After all, what good is a brilliant plan that moves like molasses when it hits middle and lower levels in the organization? Not only does it spell business shortfalls, it can spell career damage and personal stress in a major way.

Up until now, culture has been hard to define.  Not any more.  Using just two words, Near and Far, CEOs can “decide” what kind of culture they need in order to be successful.  A fast-growing, entrepreneurial company typically needs to add process and structure to deal with growth.  The culture needs to shift more “Near.”  A slow-growing organization typically needs to adapt to change in order to revitalize itself.  The culture needs to move more “Far.”

A Near culture is one where decision-making is interdependent.  People who get things done need to receive advice, approval or instruction from others before proceeding.  A Far culture is independent in nature.  People can make their own decisions while keeping others informed, or asking for assistance only if needed.  While Near and Far can vary by task, in reality, companies have a Near-Far cultural comfort zone.   Existing staff are typically loath to see it change.  Comfort zone means low-risk zone.  Few people are eager to put themselves at high risk.  With 7 levels based on the metaphor of a driver:passenger relationship, Near-Far is precise yet easy to grasp.

A culture shift is exactly what is needed in order for strategic change to take root.  Historically, culture change was led by a few fearless leaders.  Today, that’s not enough.  Leaders need the entire team to make the shift and the more they do so together, the greater the likelihood for success.

The benefit of the Near-Far Culture Shift method is that it makes both the current culture AND the needed new culture visible. How? By focusing on the very visible reality of “who gets to decide.”   This makes the risks known and the downside accepted by top management as the price of moving forward!  That is crucial because most senior leaders are themselves engrained in the old culture and need to consciously shift towards more Near or more Far.  The Near-Far culture shift method does this with remarkable ease and precision because it is stunningly visible moment to moment.  For more information, go to www.whosthedriveranyway.com.

p.s.  Who’s The Driver Anyway? is now available as an e-book on Kindle for non-Canada Amazon account holders.  Go to  http://www.amazon.com/dp/B0051WJINC  to view and purchase on-line.

Org culture fiercely resists change, including this Catholic Church example

“Culture eats strategy for breakfast,” quoth the famed management guru, Peter Drucker.  Indeed, many a leader has laid out brilliant strategic plans, only to see them wash up on the rocky shores of an org culture that stubbornly would not embrace those plans.

A recent example of this has emerged in the Roman Catholic Church in Australia.  Pope Benedict relieved a long serving bishop of his duties last month.  “Fired” would be the corporate term.  According to this and other articles in the National Catholic Register, Bishop William Morris began introducing measures in the 1990s that could be described as shifting the local church culture towards a more collaborative style of decision-making.

Bishop Morris wanted to give people more of a voice. This was apparently welcomed by many but not all.  A small group formed and accused him of “giving people a vote.”  It appears this was a spin and not actually true.  He also raised the possibility of including female priests to address the shortage of clergy.  This latter point of view was what ultimately got him fired.  However, in the beginning, it was his inclusive approach that riled those who protested his actions to the Vatican. In the end, they won the day and the existing culture has prevailed.

Leaders need to have an intentional plan for shifting their org culture.  That plan needs to begin with understanding the current culture.  Would you renovate a house without first understanding how the current house is structured and functioning?  Never.  Yet leaders often launch new strategic initiatives with nary a thought about the cultural obstacles and leverage points they need in order to be successful.

Culture is invisible to those who are in it.  Like a fish in water, people are generally unaware of it until someone disturbs the status quo.  That person is most likely to be vilified.  The reasons are as well-known as they are obvious – usually related to fear and self-interest – but not always.

One easy way to label and understand your org culture is found in the terms Near and Far.  A Near culture controls the behavior of others.  A Far culture gives people a high level of independence.  Both have strengths and both have weaknesses.  One thing is for sure, both cannot co-exist.

What is “collaborative decision-making?”

When you say ‘collaborate’, the thought that comes to mind is holding hands and making a decision with which everyone agrees.  That mindset is fraught with peril.

To collaborate effectively, leaders need to understand that your team needs to agree on who gets to decide, not on who is making the right decision.  I call this the “Decision Before The Decision.”  Using The 7 Performance Drivers shared authority scale, every team member learns to decide who should decide.  If you collaborate on that key question upfront, then final decisions are easy.  This leads to rapid implementation without resistance.

Democracy has worked this way for over two hundred years. We agree that whoever gets 51% of the vote, gets to make 100% of the decisions.  We may not like it, but we accept it.  That is the key to collaborative decision-making that is high-functioning.

The problem many leaders have is how to justify who gets to decide.  The notion that “I’m the boss,” no longer cuts it with today’s workforce.  Leaders need to re-think who gets to decide in light of fast-changing technologies and young workers who enter the workforce EXPECTING to have a say in key decisions.

This topic is thoroughly explored and answered in my upcoming book, “WHO’S THE DRIVER ANYWAY? Making the Shift to a Collaborative Team Culture”   Stay tuned.

John

The Flexible Leader: When to Shift Power & Authority

You’re a middle manager…a supervisor, manager, or director.  Something is happening (or not happpening) that isn’t working for you.  You KNOW that if you don’t do something, trouble will arrive. The work will be late or done wrong.  The business will be harmed and your career won’t be helped!  What do you do?  You shift power or authority.

Shifting power & authority is the leadership solution to any performance problem. Power means your personal power. The stand you take. The position you give in on.  Authority means structural power.  The formal authority you give or take on a given job or task responsibility.  Delegate.  Takeover.  Empower.  Disempower.  You decide and you get others to agree.

You need to be flexible about power & authority in order to get the result you want.  This is the main obstacle for many leaders – their inability to be flexible.  Some leaders want to be in control, preferring to be hands on and often unnecessarily so.  Some leaders don’t want to be in control, preferring to hand off the work and let their people sink or swim. 

  A manager asked his supervisor if she could get her staff to complete a clean-up job in 4 hrs. The normal time needed was 8 hours.  So she agreed to do it. Four hours later, it was obvious it wasn’t going to happen. The supervisor unilaterally called in her staff and said, “STOP!” She recognized that the people were suffering and the task was impossible.   She showed a very wise use of her power to get a result that was achievable and sensible.

When a leader learns to be flexible, he or she learns how to shift their use of power & authority to fit the people situation AND the business goal. To learn more, go to www.flexibleleader.com

The Toughest Role at McMaster University

One of the toughest part of being a mid-level manager is creating a more pro-active culture below you.  On Thursday, May 6th, you can take an Executive Education course with me to learn how, at McMaster University’s DeGroote School of Business in Hamilton. It’s called The Toughest Role: How Effective Mid-Level Managers and Owners Get Better Results Through Others .  Click to register.

Here’s one reason why middle management is tough.  If you give your staff too much latitude, things go off the rails and you are held accountable. Yet, if you give staff too little latitude, they become compliant – following orders and not adding extra value to organizational performance.

The 7 Performance Drivers solves that. It pinpoints 7 levels of shared decision-making power between boss and subordinate so both people can frankly discuss and comfortably agree on what’s right for them. It works formally in major job duties and it works informally on day-to-day issues where you need to be on the same page.  The best part is that you don’t have to be the bad guy to get people in gear!  It’s a safe way to communicate frankly and respectfully.

The reason The 7PDs is so effective is that it is two-way. Either the leader OR the subordinate can initiate changes that are needed. This is leadership communication and pro-activity at its root source – decision-making power!

Check out this short YouTube video presentation to learn more. http://www.youtube.com/performanceshiftTV

The Toughest Role: Four Secrets of Effective Middle Managers and Owners

The TOUGHEST ROLE webinar takes place at 12:05pm EST for 55 minutes. CLICK FOR DETAILS and TO REGISTER for Wed Feb 10, 2010

This webinar is for middle managers and mid-sized business owners who oversee eight or more people, looking for practical solutions that work.

“A nicely constructed and well-delivered webinar…You offered lots of real, meaty content, and I wouldn’t mind attending again next time.” Mid-sized Business Owner

“Good session, really well presented!” Senior Consultant

“Dealt with real issues that I face on a daily basis. Very helpful!” Mid-sized Mfg owner

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Register today and learn about these four secrets of effective mid-level managers and business owners in just 55 minutes:

Secret #1. Delegate work smarter – How to avoid the number one mistake of most mid-level managers

Secret #2. Improve work quality – How to raise the bar without raising hell

Secret #3. Get the results you expect – How to get people to hold themselves accountable…and love it!

Secret #4. Get commitment and cooperation – How to resolve difficult people issues. …this is worth the 55 minutes by itself, and the fee is $0. REGISTER TODAY

How Effective Middle Managers Get People onto the Same Page

Sue the middle manager was waiting expectantly for a report to be completed.  At the appointed time, her subordinate knocked on her door.  “My report will be delayed,” he said. “Bob asked me to work on getting him information for his board meeting so I had to set it aside.”

Sue sighed. Bob was her boss, the general manager.  He was known to step in without warning.  “Okay, when do you think you’ll be able to get it to me?”  Sue asked.  “By Friday,” came the response.

Friday, she thought with exasperation. That leaves me working on the weekend if I want to get my presentation done in time for Tuesday’s management meeting.  I just wish Bob would talk to me first, before he goes changing the priorities of my people!

Such is life for the middle manager – the toughest role in management…. read the article DOWNLOAD

The Truth About Middle Managers

It seems this topic is getting hot.  MIT professor Paul Osterman has a book entitled “The Truth About Middle Managers.”  Read more about it via this Harvard Business summary:

http://tinyurl.com/ych4t9c

Get resistant people onto the same page

When you are a middle manager or leader of a smaller three to four level company, getting people onto the same page is a constant challenge.  Learn how to solve that problem by changing how you give and take decision-making authority… http://tinyurl.com/yhhpjfm