
Walking the Talk
That experience prompted me to re-read Carolyn Taylor’s “Walking the Talk”, an excellent introduction to corporate culture. Here was an organisation that has a clearly-defined culture, and knows how to maintain it by walking the talk. Sadly, in my experience most leaders are better at the talking than the walking, and in any case most organisations don’t really know what culture they want (if they think about it at all). That’s a lot of value to be losing.
Keep your promises
A more honest approach would be to offer two categories of delivery at two different prices: a cheaper service, where you know you will have to collect, and a more expensive one where the attempt to deliver will be made. That way you could price the risk realistically. But providing the cheaper service when the customer has paid for the more expensive one is just wrong. In most industries, you would not get away with it. I have no doubt that they are all under a lot of competitive pressure. Probably local managers have concluded that it is necessary to do this to meet the tough performance targets which result. If so, that betrays both a cavalier approach, and a lack of joined-up thinking. If you don’t give your customers what they pay for, sooner or later they stop being customers.
Last week I attended the inaugural meeting of the Change Management Institute’s Thought Leadership Panel. Getting a group of senior practitioners together is always interesting. I’m sure that if we hadn’t all had other things to do the conversation could have gone on a long time!
I have been thinking some more about two related questions which we didn’t have time to explore very far. What makes a change manager? And why do so many senior leaders struggle to ‘get’ how change management works?
Perhaps the best starting point for thinking about what makes a change manager is to look at people who are change managers and consider how they got there. The first thing that is clear is that they come from a wide variety of different backgrounds. Indeed, many change managers have done a wide variety of different things in their careers. That was certainly true of those present last week. All of that suggests that there is no standard model. A good change leader probably takes advantage of having a wide variety of experience and examples to draw on - stories to tell, if you will. Where those experiences come from is less important.
Then there is a tension between two different kinds of approach. Change managers have to be project managers to get things done. But change is not like most projects: there is a limit to how far you can push the pace (and still have the change stick) because that depends on changing the mindsets of people affected. Thumping the table or throwing money at it hardly ever speeds that up. Successful change managers moderate the push for quick results with a sensitivity to how those people are reacting. Not all project managers can do that.
So I think you need three main ingredients for a successful change leader:
- The analytical and planning skills to manage projects;
- The people skills to listen and to influence and manage accordingly;
- Enough varied experiences to draw on to be able to tell helpful stories from similar situations.
Senior managers and change
Why do many senior managers struggle to understand the change process? They may well have the same basic skills, but the blending is usually more focused on results than on process. That is not surprising; their jobs depend on delivering results. A pure ‘results’ focus may be OK to run a stable operation. Problems are likely to arise when change is required if the process component is too limited. Delivering change successfully usually depends on the senior managers as well as the change manager understanding that difference.
Innovation
That set me thinking about how innovation happens. This was not a complicated idea; anyone could have tried it. But no one else did. So what does innovation need? I think there are usually two ingredients. The first is some kind of investment. Often that is financial, but (as in this case) it may just be time and emotional energy. Investment means that you have to put something in, but that success is uncertain and although you may be rewarded well, you may also get nothing back. So the innovator must be willing to take that risk. The second is some relevant knowledge. I had done something similar before, so I knew an easy way to reach my target audience. That knowledge reduced both my investment of time and the risk of failure I saw. I might have been willing to try anyway, but this made it more likely that I would. Certainly I was more likely to try than people without that knowledge. All of us prioritise what we will spend our time on, largely based on our perception of the risk-reward balances of our options. Making innovation happen is usually not about brilliant ideas; it is far more about simply taking the risk to put a simple idea into practice. There is little you can do to change someone’s appetite for risk. If you want to encourage innovation, then, try to find ways to reduce the risk that they see.
What makes tough decisions?
So what makes a decision tough? Often it is when there are two potentially conflicting drivers for the decision which can’t be measured against each other. Most commonly, it is when my rational, analytical side is pulling me one way – and my emotional, intuitive side is pulling another. Weighing up the pros and cons of different choices is relatively easy when it can be an analytical exercise, but that depends on comparing apples with apples. When two choices are evenly balanced on that basis, your choice will make little difference, so there is no point agonising about it. The problem comes when the rational comparison gives one answer, but intuitively you feel it is wrong. Comparing a rational conclusion with an emotional one is like comparing apples and roses – there is simply no basis for the comparison. When they are in conflict, you must decide (without recourse to analysis or feeling!) whether to back the rational conclusion or the intuitive one. A simple example is selecting candidates for roles. Sometimes a candidate appears to tick all the boxes convincingly, but intuition gives a different answer. On the rare occasions when I have over-ridden my intuition, it has usually turned out to be a mistake. Based on experience, then, I know that I should normally go with intuition, however hard that feels. We are all different though. Perhaps everyone has to find out from their mistakes how to make their own tough decisions. What we should not do is confuse how hard it is to make a decision with how important it is.
In the old days, efficiency (doing things right) ruled. You made money by having more efficient processes than competitors, so your margin was higher on the same price. Scale was rewarded, because it brought efficiency, encouraging huge companies and standardised products. Flexibility was your enemy.
Now, technology has changed everything. Just because it is possible, effectiveness (doing the right thing) will rule. The customer will always be right, whatever they want. Can you imagine people now accepting Henry Ford’s statement that people could have any colour they wanted, so long as it was black? Scale and efficiency is not the only thing that matters any more – in this new world, value comes from responsiveness. Success requires using connections, building a community with customers and suppliers, and being creative.
In the days when efficiency led, market domination was the objective, because that was what allowed you to hold onto your “most efficient producer” badge. In the new world, domination is not the only determinant of success. Your company needs to be like a lumberjack on a log flume – constantly moving to stay on top despite the logs rolling, and needing the agility that comes most easily to small companies to do so.
Use consultants and interims for ideas and flexibility
This model lends itself readily to the de-centralised organisation, using consultants, interims, and other forms of flexible working to provide the skills needed when they are needed. To do this well, the organisation needs to be networked and connected; old-style hierarchies, linear processes and so on inhibit the flexibility required. In this post-Brexit-vote world, where no-one quite knows where we are going or what it will mean, that flexibility to adapt rapidly as the shape of the future emerges will be even more important. Winning will depend on having a culture which embraces flexibility and adapts to change. Darwin had a phrase for it: survival of the fittest. The species that survived were the ones with most variability. Work flexibly; bring in and try out new ideas; find better ways to succeed. Voting to be dinosaurs can’t change the laws of nature.