Follow my leader

 change leadership What is leadership about? The very word implies movement. Leadership involves helping other people to find the way from A to B, so all leadership is change leadership of some kind. If we are sticking to A, the people may need managing, but there is not much leading involved. You don’t need a leader if you are not going anywhere. How many times have you heard people say “if its not broken, why fix it?” Probably you have said it yourself at times. Or “I don’t want to upset the apple cart”? No-one likes change – everyone is more comfortable with the status quo. The trouble is, stability is an illusion, at least in the longer term. Everything grows - or it declines. The organisation that does not change positively is doomed eventually to change negatively. Change is the whole point of leadership. The joke says “How many psychologists does it take to change a light bulb? One, but it has to want to change!” The job of the leader is to have the vision of where to go to, and then to get people to the point where they want to, or at least accept the need for, change.

What a scorcher

joining things up There is a rather impressive new office building going up in the City of London at the moment. Colloquially referred to as the Walkie Talkie building (London likes its building nicknames), instead of the usual flat walls, its walls are gently curved, giving it a very sculptural quality. And like many modern office blocks, it is covered with floor to ceiling glass. It will look amazing when it is completed. However, people living, working, or even just passing nearby are feeling amazed for all the wrong reasons. It seems that the architects didn't join things up - they forgot to take account of – or underestimated – the effects of the laws of optics. Think of a reflecting telescope. It works because the concave mirror in the telescope focuses the light from the stars that falls on it. What have the architects put on the front of the Walkie Talkie building? In effect, a gigantic concave mirror. And like all such mirrors it focuses the light – in this case particularly the sunlight - falling on it. On a hot summers’ day, the temperature in a nearby street has risen enough to blister paint and melt plastic. Now it’s called the Walkie Scorchie.

Joining things up

It’s a great idea to reflect sunlight so that your offices don’t overheat, but it is not OK to give someone else your sunlight problem instead. Frequently an internal focus on solving our own problems can blind us to the difficulty that our solution may export to someone else. However expert each of us is in the areas we know about, we may blunder into basic problems outside those areas. In this interconnected world, it is wise to think carefully about any possible external effects; otherwise an embarrassing oversight can quickly become a PR disaster. Joining things up so that such things do not happen is far from easy, and needs a commitment to cross-silo working that few organisations seem to recognise. Busy managers may not have time – and frequently have no incentive – to consider wider impacts. Making it happen requires explicitly recognising the need and creating processes in response.  

Which end of natural selection are you on? Evolution and strategic change

[caption id="" align="alignright" width="300"]evolution Tyrannosaurus rex, Palais de la Découverte, Paris (Photo credit: Wikipedia)[/caption] Evolution is the natural process by which all forms of life adapt to changes in their environment. It is a very slow process, in which many small changes gradually accumulate. It is unplanned and undirected: who knows how the environment may change in the future, and so what adaptations would put us ahead of the game? Successful changes are not necessarily the best possible choices, merely the best of those that were tested. Different individuals start from different places, and so the adaptations which seem to work will vary.  Consequently, over time, divergence will occur until different species result, even though each species can be traced back to a common ancestor. But evolution is brutal too: not all species will make it. Some find they have gone down an evolutionary dead end, and some that change is simply too fast for them to adapt to. Sometimes organisational change can be like this. I once worked for a public-sector organisation which was privatised, so that it had to change from being ‘mission-led’ to being profit-led. Management set out a vision for what it wanted the organisation to become – essentially a similar, unitary, organisation but in the private sector – but was unable to make the radical changes necessary to deliver it fast enough. Evolution carried on regardless as the primary need to survive forced short-term decisions which deviated from the vision. Without a unifying mission as a common guide, different parts of the organisation evolved in different ways to adapt to their own local environments. Fragmentation followed, with a variety of different destinies for the parts, and a few divisions falling by the wayside. Despite starting down their preferred route of unitary privatisation, the eventual destination was exactly what the original managers had been determined to avoid. What is the lesson? Ideally of course it should be possible to set out a strategic objective, and then to deliver the changes needed to get there. But if the change required is too great, or the barriers mean change is brought about too slowly, the short-term decisions of evolution may shape the future without regard to management intentions. That does not necessarily make the outcome worse in the greater scheme of things: after all, evolution is about survival of the fittest. But natural selection is an overwhelming force, and if short-term decisions are threatening to de-rail management’s strategic plan, it may be wise to take another look at the plan, and to try to work with evolution rather than against it.

Disasters and how you can (try to) avoid them

[caption id="" align="alignright" width="300"]disasters View of Chernobyl taken from roof of building in Pripyat Ukraine. Photo Taken by Jason Minshull, then digitally zoomed. (Photo credit: Wikipedia)[/caption] Have you noticed how often it happens that when things go wrong, they don’t just go wrong, they go horribly wrong? From the truly horrendous disasters like Chernobyl and Fukushima to the merely painful like a company going bust, once things have started to go bad, the interventions people make often exacerbate the situation. Why is that? When things start to go wrong, there can be a number of immediate reactions, depending on the circumstances. One is to hide your head in the sands, and pretend that there is nothing wrong. That is almost guaranteed to make things worse! More common is the fire hose approach:  do something drastic with the intention of stopping the immediate threat, which may deal with the underlying causes (although it may also exacerbate them), but certainly soaks everything, whatever the consequences. Following the analogy, the fire hose is good at putting out some sorts of fires, but inadvisable on oil or electrical fires! In between is the timid approach – not wanting to do any more damage than can be avoided, the attempted cure finishes up being too little and too late. How difficult it is to get the balance right!

Fast disasters …

It is understandable that in a crisis people react by tackling the obvious problems. If your house is on fire, stopping the flames obviously seems more important than avoiding ruining the furniture.  When the situation is relatively simple, that approach works. The problem comes when the situation is more complex. In a crisis, you act instinctively, and you do not usually have time to think through the consequences of your actions. Almost by definition, complexity will bring unforeseen consequences. How many organisations have no more complexity than they need? What to do about this? There are two possible approaches. You can minimise the risk of unforeseen consequences in a crisis by keeping the organisation as simple as possible. Or you can practice crisis management through exercises and so attempt to learn what adverse consequences might occur and how to avoid them. Or you can do both, of course. Clearly though, both of these have a cost which needs to be incurred when there is no crisis in sight.

… and slow disasters

Slow disasters pose different and much more difficult problems. The fire-hose approach is much less likely; head-in-the-sands and timidity more so. It all starts with ability to acknowledge the problem in the first place. The organisation’s leaders may not believe that what they are seeing are signs of a problem. Even if they do think there is a problem, they may not want to admit this. They or people they are connected to may have vested interests; they may be unwilling to admit failure, or believe that admitting problems will damage confidence and make them worse; they may believe that other issues are more urgent. Perhaps the most common situation is that leaders recognise the problem, but simply underestimate what is needed to fix it. Most managers are optimists at heart, and in deciding what – often painful - actions are required, optimism bias will tend to creep in to minimise the pain. These can be very difficult decisions:  for example, no manager wants to make any more staff redundant than they absolutely have to. However, if the ‘cure’ is insufficient, the problem remains, and will have to be treated again – with the ‘patient’ now in a weaker condition than previously. Underestimating can be fatal: death by a thousand cuts is a phrase I have heard repeated too often, and the consequences for staff can be worse than being bold at the outset. In summary then, perhaps the message in both cases is the same: optimism rarely provides salvation; taking what feels like unnecessary pain early may do.

Light the blue touch-paper, and stand well back! 5 tips for avoiding e-mail fireworks

e-mail Fireworks How often have you found yourself having a conversation, and it gradually dawning on you that the person you are talking to thinks the conversation is about something quite different to what you thought? It happens to us all from time to time, and normally it causes at worst mild embarrassment as one of you says, ‘hang on a minute, I thought we were talking about  x’ and the other looks bemused. Sometimes though, miscommunication can cause real problems.

E-mail Fireworks

Perhaps the most common place for miscommunication to cause problems in the working world is in e-mails. Maybe the relationship is a bit sticky already, or perhaps the subject is emotive. You write an e-mail, for example telling someone what you are going to do. Writing the message down gives you a chance to choose the words carefully so that they can’t be misinterpreted, right? Wrong! Within a few microseconds of pressing the ”send” button, you notice that your computer has started to smoke from the heat in the reply that has just clanged into your inbox. You read it – how could they have misunderstood your intentions so wildly? They must be spoiling for a fight! Your emotion finds its way into your reply, and the exchange just escalates. E-mail fireworks are never productive. Why are e-mails so fraught? Mainly, they are too easy. We dash them off with little thought. For straightforward factual messages that is not a problem. The trouble comes when the exchange has some (often unexpected) emotional content. Although they seem like a way of keeping the emotion out and so appear to be an easy option, humans are emotional creatures: we don’t often do purely rational. Be especially careful when you are worried about the reaction, and it feels safer to keep your distance. By omitting the emotional context of the message, which we detect mostly from body language and tone of voice, we take away the very cues which would help the recipient to know whether we meant to be provocative or were just not choosing our words very well. Poorly-chosen words in the context of a friendly tone and an open expression will usually only prompt clarification, but without these, people usually assume the worst. Here are five tips for minimising the risk of e-mail fireworks, and getting things back on track if necessary:
  • If you think the message might have some emotional content, don’t rely on e-mail if you can possibly avoid it. Start the exchange face-to-face, or at least with a phone call, so that there is an emotional context. Only once the tone has been set should you follow it up with an email.
  • If you didn’t think the message was emotional, but the response appears to be – or even just indicates misunderstanding - never send an email reply. Pick up the phone straight away to clarify, or go and see them if you can.
  • If you have to send an email which you know may be emotive, save a draft overnight before sending it, and re-read it in the morning. You have a better chance then of seeing how someone else might mis-interpret your words, and stopping it before it is too late. I rarely find I change nothing the next day!
  • For really sensitive messages which you have to put in writing, ask someone else to check your words before you send them.
  • If an exchange has gone emotional, apologise face to face – even if you don’t think you have anything to apologise for.

Have you looked in the mirror recently?

[caption id="" align="alignright" width="300"]Information Inertia Wing mirror VW Fox (Photo credit: Wikipedia)[/caption] Last week I had to drive my daughter to France to start a year of study at a French University. As you can imagine, the (small) car was packed to the roof with all the things she needed, or at least believed she needed, and which could not possibly get there any other way. Result – the rear view mirror only gave me a view of some pillows, which was not a lot of help. However, I very quickly adjusted to relying entirely on the wing mirrors, and felt reasonably safe even though I was driving on the ‘wrong’ side of the road. The strange thing was that on the return journey, having unloaded in Nantes, I continued in the same way. It was only chance that I glanced in the direction of the main mirror, and realised that it was (of course) no longer obstructed. Information inertia!

Information inertia

Businesses need to rely more on looking forwards than looking back (as do drivers!) but the lesson for me was how easy it is to continue to rely on the kind of information which we have become used to, even when better information becomes available – and even when you really should know it is there. Of course it is comforting to have the same monthly report format that you have always had. You know exactly what information will be there, and where to find it. There is always a cost-benefit question around extra information, and it certainly needs to earn its keep. Nonetheless, it is a good idea to ask yourselves regularly whether there is any new information which should be added.

Join the Queue!

[caption id="" align="alignright" width="300"]simple system Queueing for the Proms 2008 on the south steps of the Royal Albert Hall (Photo credit: Wikipedia)[/caption]   I’m sitting on the steps outside the Royal Albert Hall in London. Fortunately today it isn’t raining, but even if it was, I needn’t worry. These days the Proms have an excellent system for managing the queue – rather like the ones on the deli counters in supermarkets. When you arrive, you are given a numbered ticket, which guarantees your place in the queue. Once you have your ticket, you can wander off for a coffee or a snack, or take shelter if it rains, knowing that everyone will be admitted in the order they joined the queue regardless. It is not particularly sophisticated – but it is a simple system, and it works. Simplicity is hard-fought-for: it does not happen by accident. Once a complex process or system is in place, changing it to remove unnecessary complexity is hard, just as all change is. Even stopping a simple system getting more complicated needs constant vigilance: otherwise, it is likely to gather exceptions and special cases, as well as extra checks that seem important, but which have a cost which is frequently overlooked. Just as nature dictates that the disorder of the Universe (or a teenager’s bedroom) increases with time, and that this can only be reversed by the input of work, so it is with organisations. Why does it matter? Because a simple system is inherently more efficient and less error-prone. Have you tried to explain your organisation’s processes to a new joiner? If so, how easy do you find it to explain the judgements required if the process has branches (if this, then that, but if not, then the other), and how quickly do people learn to make them properly? Good governance depends on people following the rules. Complexity makes it more likely that people will make mistakes, and also makes it harder to spot when people deliberately try to get round rules. For an extreme example of what happens with complexity, think about tax codes: with complex rules and many special cases, expert advisers earn a good living, which must be at the expense of either the tax-payer or the tax-collector or both. While that is good for the experts, does that not make its complexity bad for the rest of us?

Be prepared!

interview A few years ago I needed to hire an assistant. I’d fixed an interview, and everything was organised. It was five minutes before the time the candidate was due, and I was just collecting my papers and my thoughts. At that moment, the din of the fire alarm started up. There is – of course – nothing that you can do. Down the concrete back stairs, and out round the back of the building to the assembly point, into the London drizzle without a coat, while I imagined my interviewee arriving at the front. I had left all my papers on my desk in the dry, and had no other record of his contact details, so I had no way to suggest an alternative plan. A little while later, my mobile rang. Having arrived and been barred from entry, he had managed to track down my mobile number himself, and we were able to arrange to carry on with the interview while we dried out in a local coffee shop. Needless to say, his resourcefulness impressed me and he got the job. Despite the unhelpful circumstances of the interview, he was one of my best hires ever. Life has a habit of not going the way we plan it. Unexpected circumstances can often be turned to our advantage though, if we grasp them rather than trying to stick to the plan, and often the results are better than you could possibly have expected.

8 reasons to review your governance

[caption id="" align="alignright" width="300"]review your governance English: Corporate Governance (Photo credit: Wikipedia)[/caption] All organisations have to find an appropriate balance between central control and local freedom to act. Governance provides the framework and checks and balances within which this is established and managed. It ensures that the process by which decisions are made is appropriately managed. It allows them to be seen to have been taken in the best interests of the shareholders, taking account of all the demands on the organisation, the risks, and the information available at the time.

Review your governance

If several of the following statements are true of your organisation, it may well be a good idea to review your governance arrangements.
  • The governance structure (meetings and delegations) does not constitute a simple hierarchy underneath the Board, with clear parent-child relationships and information cascaded up and down the hierarchy
All authority derives from the Board (or equivalent), and no-one has any authority (including the authority to sub-delegate) unless given it explicitly or implicitly by the Board. Consequently all delegations and sub-delegations should form a tree structure with the Board at the top. Any structure which does not follow this rule will create confusion about where authority lies. Decisions and issues for escalation, and reports of lesser decisions taken, should flow up the tree. Policies, strategies, decisions made, etc, should flow down. This is not to say that the structure has to be complicated or bureaucratic – every organisation has to find the balance that is right for it.
  • The governance structure is not clearly documented (e.g. including a consistent set of Terms of Reference), communicated and understood
The governance structure exists to serve the organisation. It can only do this if people in the organisation understand it. Clear documentation that resolves any apparent ambiguities is an essential starting point, but this then needs effective communication.
  • People do not have clear written instructions as to the limits of the authority that they have been given, or these are ignored
This is part of the essential documentation of the structure. Without a clear statement of what they should decide for themselves and what they must refer elsewhere for decision, unhelpful deviations from intentions (in both directions) will occur. In one case senior time is wasted, in the other unintended risks may be taken. Naturally the limits specified need to be appropriate. Compliance must be monitored and enforced.
  • Committees are allowed to approve their own Terms of Reference and/or memberships
In order to ensure that the governance structure retains its integrity, any ‘parent’ body making delegations must retain control of the terms of the delegation. Approving ToRs and committee memberships are the primary ways it can do this. A committee approving its  own ToRs is like someone signing off their own expenses.
  • Governance meetings happen irregularly, or with papers which are poor quality or issued late
Unless meetings are irregular because they are only arranged when needed, irregularity makes it very difficult for those requiring decisions from the meeting to plan. That in turn leads to papers which are of poor quality or late, and so to delayed or riskier decisions.
  • Senior staff are allowed to ignore the rules which apply to others
Governance, like the law, only works properly if everyone plays by the rules. If the CEO believes it matters, he or she will be willing to set a good example by sticking to the rules themselves, and will expect other people to do the same. If the CEO does not think it matters, and is not willing to do this, it will be very hard to make other people do so.
  • Decisions are often taken late because of papers missing submission dates, inadequate information, wrong attendance, submission to the wrong meeting, unexpected need for escalation, etc
There are many reasons why a decision may be reached later than it was really needed. Sometimes the request may have been made to a meeting which did not have authority for that decision, perhaps because the value was too high, or because the decision was out of scope. Sometimes a critical expert is absent from the meeting. Sometimes the supporting paper does not contain, and the presenter is unable to supply, information the committee regards as essential. Mostly, however, these come down to poor planning, often driven by poor understanding.
  • There is a feeling that the governance process is too bureaucratic
If the system has been well-designed, this should be a rare complaint. Most commonly, it occurs for one of two reasons: levels of delegation have been set lower than the people concerned are comfortable with, or there is a reluctance to engage with the hard thinking required to make cases concisely but effectively. If significant, it probably indicates a mismatch - in either direction - in maturity between the staff concerned and the governance arrangements. Contact Ottery Consulting if you would like some independent help with to review  your governance arrangements.

If it isn’t broken, why fix it?

innovation Let's face it, if innovation isn’t change, what is? So in thinking about why change is difficult, and how to overcome the challenges, thinking about how to make innovation successful may help. A frequent characteristic of innovations is that the needs they address, or could address, are not recognised. History is littered with examples, from Marshal Foch’s view that aeroplanes were of no military value to Thomas Watson’s famous assessment that there might be a global market for at most 5 computers. Most people have heard the saying “build a better mousetrap, and the world will beat a path to your door”. Innovations still fail, though, because the world didn’t know it needed a better mousetrap, and so it wasn’t listening. Before you can even start to persuade people to adopt your innovation, you may have to help them to recognise that they have a problem it can address. Change initiatives are no different. I was recently helping an organisation plan a major change. I believed that the change would have consequences for other aspects of the operations, and that these consequences needed to be planned for too. Although I made several attempts to explain this to the CEO, I failed to convince her. Needless to say no such planning was done, and so I shall not be surprised if there are later problems requiring emergency solutions. A pity, but you can’t win ‘em all! How do change initiatives start? One or a few people have an idea about how to do things differently. Sometimes there may be a widely-recognised problem, but even then it may be a big step to create the link to the proposed solution. Often most people – even management – have not yet recognised that there is a problem, and before they will consider any change, they need to be persuaded that the need is real. Change initiators are often the people who are able to see what will trip up the organisation before others can, but that means that they also have the challenge of helping others to see what they see. Think of the lookout on a boat – their vantage point means they can see rocks ahead before anyone else, but before they can get the boat to change course they have to be believed. The power of the human mind to cling on to existing beliefs, for example that the rocks are miles away, is very strong. So change management starts with taking the time to educate people about the problem that needs to be addressed. Until they believe that there is a problem – that there are rocks ahead – trying to persuade them to accept the change required to address it is likely to be wasted breath. If you need help seeing the rocks, or persuading people they are real, do get in touch.