AVOID THE EMPLOYEE ENGAGEMENT TRAP


EMPLOYEE ENG

Engaged employees work harder, produce more, lead happier and more fulfilled lives, and create better societies. They thrive at work, at home, and in life. Lucky for your employees, you’re sophisticated enough to grasp this, and evolved enough to want to create it for them.

Actually, that may not be so lucky for them, or for you. Your perspective on employee engagement creates a trap, and it’s one into which many of your fellow illuminati are falling. Ironically, it’s caused primarily by your increased attention to engagement relative to your less evolved peers.

Those lesser managers just don’t care if their employees are engaged or not. Some of them don’t even know it! They stumble through their management careers under the misconception that if the employees aren’t happy, it’s the employees’ problem. Employees can quit if they want to, and be replaced. The unenlightened have no grasp of the hard and soft costs of disengagement.

They’re wrong, of course, and that’s how the trap is set: If what they’re doing is wrong, the opposite of what they’re doing must be right. So if not knowing or caring whether your employees are engaged is wrong, then taking full responsibility for your employees’ engagement must be right.

They stumble through their management careers under the misconception that if the employees aren’t happy, it’s the employees’ problem. 

And so, in proper highly-evolved form, you take ownership. You ask employees, in person and via survey, whether they’re engaged and joyful at work. On its face, it’s a reasonable line of questioning: “How well are we doing at keeping you engaged, and how can we do better?”

The trap slams shut. You’ve just notified you’re employees that it’s your job to keep them happy. They respond with a list of demands. They can’t be happy until they’re given higher salary, greater responsibility, a more impressive title, a view, and a bean bag chair. But there are only so many raises to go around, so many projects to do and titles to have, and so many square feet in which to pile the bean bags. So you find yourself negotiating: Give Penny the promotion, Tammy the Title, and William the window. And have HR announce that bean bags pose a trip hazard.

Suddenly, nobody’s happy. You’ve failed at employee engagement, because you can’t give them what they want.

But where did it all go wrong? Was it overly demanding employees, scarce salary budgets, or draconian job title guidelines?

The trap slams shut. You’ve just notified you’re employees that it’s your job to keep them happy.

Sorry, but it was you. No matter how well-meaning you are, “I’ll make you happy” is a recipe for disaster, at work and in teen romance. When you try to take responsibility for another person’s happiness, you create a dysfunctional, dependent relationship.

Avoid the trap. Attend to engagement without promising happiness. Build an environment that allows people to grow without putting yourself in the role of Santa Claus. Tell employees it’s up to them to find their own engagement, and up to you to encourage and support them in doing so. Be honest about what needs to get done for your team to succeed, and the fact that it won’t all be fun. And teach employees to troubleshoot their own engagement issues. Help them to work toward what they most enjoy even as they perform their jobs well today.

As your employees improve at their current jobs, they’ll have more options and directions in which to grow. As they learn to troubleshoot engagement problems and recognize what they enjoy, they’ll move into work that engages them at a higher level. Over time, the entire system will evolve toward greater employee engagement, and attract even more talent. In the process, it will thrive.

No matter how well-meaning you are, “I’ll make you happy” is a recipe for disaster, at work and in teen romance.

That’s engagement done right. It’s exciting, it’s positive, it attracts and retains great employees, and it builds community through productivity. And, it’s better than a giant pile of bean bag chairs.

ENGAGEMENT 1

Curated by Trevor Lee

http://www.ep-i.net

@trevorblee

Advertisements

Leadership Presence


Increasing your Leadership Presence involves complex, interrelated factors.

  1. Identify and clarify your vision of the future, not only for yourself but for those you lead, or want to lead. Document your vision (in writing!) and then communicate it in a way that inspires people to follow it.

  2. Consider how you appear to others. Start with your appearance, but give more than a passing glance at your inner self and soul (or whatever you call that intangible part of you that projects your values.) Do something to improve at least one of the above, every day.

  3. Get some practice in leaving decisions to other people, especially to those who really want to contribute in the way that decision-making requires. (This sounds easier than it is. People who want to lead generally like to be in control.)

Leadership Presence is a path, not a destination.

LEADERSHIP PRES 1

Curated by Trevor Lee
tblee@ep-i.net
http://www.ep-i.net
@trevorblee

 

To Motivate Your Employees …


It’s not always easy to get the most from your employees.

If you’re struggling to inspire the people on your team, look to your past.

Think about your own experience and what motivated you when you were in the lower levels of a company.

Who was the best boss you ever had?

What did that person do to make you want to perform at your best?

Reflect on what made your boss’s motivational strategies so effective for you.

What specifically did they do to earn your trust and admiration?

Now think about how you can apply those lessons to your own team. Which motivational tools will work for them?

Be fearless in examining your own behavior and curious about how your employees respond to you. Re-purpose your favorite boss’s techniques and make them your own.

Adapted from “Motivating People Starts with Having the Right Attitude,” by Monique Valcour

MOTIVATE 1

Curated by Trevor Lee

@trevorblee

http://www.ep-i.net

http://www.ceo-worldwide.com

Balance Your E.I. Skills


Having emotional intelligence, often referred to as EI, is an important part of being a stronger, more effective leader.

But too many people assume that it’s all about being sweet and chipper. Sure, some EI competencies are related to sociability, sensitivity, and likeability, but others are connected to leadership skills like achievement, influence, and conflict management.

The key is to have a balance.

If you’re strong in some of the softer, emotional skills, then focus on honing skills like giving unpleasant feedback. For example, rather than using your EI to smooth over interactions with a co-worker who is overbearing and abrasive, work on bringing up the issue to your colleague directly, drawing on conflict management to give direct feedback and on emotional self-control to keep your reactivity at bay.

Adapted from “Emotional Intelligence Has 12 Elements. Which Do You Need to Work On?”
by Daniel Goleman and Richard E. Boyatzis

EI 3

Trevor Lee

tblee@ceo-worldwide.com

http://www.ceo-worldwide.com

@trevorblee

Earn Trust by Showing Trust


Most people do their best work when they know their manager trusts them. If they worry that you think they’re lazy, incapable of directing their behavior, or lack integrity, they’re unlikely to take feedback or coaching from you.

So go out of your way to gain your employees’ trust by demonstrating positive assumptions about them.

Give challenging assignments, with the clear and confident belief that your expectations will be met.

And don’t hide information, or assume people will mishandle it. Instead, promote transparency.

Try adding a “through the grapevine” agenda item to meetings as a fun, informal way for people to share company information they’ve heard, so you can either confirm or debunk the rumor. When managers demonstrate positive assumptions, employees respond in kind.

Adapted from “If Employees Don’t Trust You, It’s Up to You to Fix It,”
by Sue Bingham

TRUST 4

Trevor Lee

tblee@ceo-worldwide.com

http://www.ceo-worldwide.com

@trevorblee

Challenging Organisations and Society


Management Plasticity:

Neuronal Networking as the Organizing Principle for Enterprise Architecture to Unfold Human Potential and Creativity

A guest article by FRANZ RÖÖSLI, MICHAEL SONNTAG and DOUG KIRKPATRICK 

 creative-2

Abstract

The human brain exhibits a series of unique and highly desirable characteristics. It has the ability to grow rapidly during development, to learn, adapt and self-heal after injuries. lt is capable of making new discoveries and connecting seemingly disparate thoughts. At the core of these characteristics lies the brain’s ability to self-organize and form new connections, which is described by the term ‘neuroplasticity’. In an age where adaptability, creativity, and connectedness are key success factors for organizations, a new understanding of organizations as living systems maybe called for. In this article, we want to introduce the concept of management plasticity that challenges the underlying beliefs that shape traditional organizational structures. In our case study on the highly successful tomato processing company Morning Star, we illustrate how the principles and practice of management plasticity, like neuroplasticity, allow for development and connectivity, learning and memory, creativity and leadership as well as innovation.

  1. 1. Hitting the Wall with Mechanistic Organizational Structures and Styles

The business environment has changed dramatically over the past few decades as modern economies have transitioned from the industrial age to the digital age, in which innovation and creativity have become critical success factors. Tue new and highly dynamic environment has brought an array of challenges and it seems that the old organizational structures were not suited to meet the new demands.

In this environment, restructuring has come to be seen as a panacea, with the underlying belief that if only the right organizational chart could be drawn up, businesses would once again be operating efficiently. This goal has proved to be elusive. The effort has been focused on what the organization would look like, but the way people work has not really changed. Even worse, employee morale, trust and engagement have been suffering, as numerous studies have shown.1

In our view at the core of the problem lies a linear-mechanistic understanding of organizations as machines with its deeply and therefore predominantly unconsciously underlying assumption of predictability and control. Hierarchical organizational charts are indicative of a business philosophy from a bygone era, in which maximizing machine productivity was paramount. Einstein once said: “We can’t solve problems by using the same kind of thinking we used when we created them” and we assume that the numerous counterproductive attempts at reorganization will continue or even intensify if the underlying beliefs that shape organizational structures remain unchanged.

  1. A New Understanding: lntroducing Management Plasticity

To be successful in the new era, there is evidence that companies need a culture allowing employees to develop their human potential. This calls for a new understanding of organizations as living systems that operate in a mode of sense and respond, which is radically different from prediction and control for machines.2 What are the characteristics of a contemporary organizational structure and what principles could it follow?

1 See for example (LRN Corporation, 2012), (Towers Watson, 2014). 2 See (Laloux, 2014).

Looking at how Nature manages to cope with the dynamics and complexity of our environment we can try to build a new understanding. Modern neurobiology and affective neuroscience helps us to understand how the human brain’s ‘architecture’, through evolution, is conceived to cope actively with the complexity of the outside world in the most effective and impactful way. In fact in science the human brain is considered to be not only the most complex, but also the most adaptable living system that we know in the universe. lt is inherently built for learning.3 Our brain is organized as an immense, dynamic network based on self-organizing principles. lt is capable of changing either parts of its function or even its whole organizational state within milliseconds. In neuroscience this is called ‘neuroplasticity. lt is the ability to change functions coherently and quickly with a minimum of energy invested and without having to re-build or ‘re-structure’ the organic substrate.4

Besides high adaptability, self-organizing network structures have further portant advantages:

  • They are receptive to learning.

  • They work superbly even when the information is incomplete.

  • Being redundant, they are robust in case of partial failure of the system.

But how is neuroplasticity linked to the capacity to sustainably unfold human potential and creativity?

Research shows that unfolding human potential and creativity depends on our ability to mobilize intrinsic motivation.5 From neurobiology we know that these desired features will exclusively emerge when individuals and teams are able to act autonomously.6

  1. See (Fuchs, 2009).

  2. See (Haken & Schiepek. 2006). 5 See (Pink, 2010). 6 See (Panksepp & Biven, 2012).

On the other hand, not being able to act autonomously and to protect our integrity actively in the case of potential threat is a key cause of fear and chronic stress. In a state of chronic stress, as we all know, our overall health is impaired but also our cognitive capacity, e.g. our ability to think clearly and to create new understanding and connections is reduced dramatically – we are no longer able to find new solutions. But also our ability to connect socially, the precondition to ask for help, is dramatically impaired. Tue neuroplasticity of our brain declines severely. Even worse: under stress we ‘regress’. We often return to our old strategies of action, exactly those ‘proven’ strategies which have caused the existing rigidity and inability to act. Tue negative process is intensified. Stress and the energy invested to survive and ‘keep control’ increases while the energy reserves are ‘burned out: This is the case on an individual as well as on the organizational level.

Conversely, if a person has the organizational not only personal capability to act freely, in a self-organizing manner, the brain is stimulated and the energy level will increase. In this positively stimulated state, clear and flexible thinking is enabled and new thought patterns and innovative approaches arise. The eagerness to connect socially, which is the precondition for creativity, and the ability and willingness to act in a goal-oriented manner will rise. The brain’s neuroplasticity is boosted.

As we have seen, the traditional management approach with its rigid, command-and-control structures, division of labor into functional silos and underlying human nature assumptions attempts to ‘manage’ and control the individual and to minimize his or her ability to act autonomously. Thereby it creates exactly the opposite conditions to those that would be .necessary to unfold human potential and creativity. Having understood these basic principles, we have to conclude, that if an organization wants to meet the new economic conditions by enabling the unfolding of its human potential and creativity, it will have to build organizational structures enabling freedom to act within good relationships. Tue resulting organic, plastic structure is a dynamic network of self-organizing individuals and teams.7

Setting the organizational parameters correctly will facilitate neuroplasticity, problem solving and constructive actions, the preconditions to survive in the dynamic and changing circumstances of today’s economy.

Therefore we define management plasticity as the ability of organizational management to engage the energy and potential of each member to collaboratively, creatively and effectively learn from and adapt to dynamic internal or external changes, opportunities or threats.

  1. Morning Star as a Prototype

    1. lntroduction

California entrepreneur Chris Rufer formed Tue Morning Star Packing Company to process tomatoes near the small town of Los Banos, California. In the spring of 1990, a tiny farmhouse on the outskirts of town became a beehive of round-the-clock activity. The tiny farm kitchen became a conference room, where an endless parade of job applicants, bankers, regulators, vendors, and contractors met together in nonstop organizational meetings.

Chris and his team focused with intensity on getting the new factory up and running. A successful startup would declare an entirely new level of industry competition. Most of Morning Star’s new employees (including Doug Kirkpatrick, a co-author of this article) had left secure jobs to join the team. If the venture failed, there would be short-term personal disruption, but most of them would be able to find new employment. For Chris, however, everything was at risk.

7 See (Sonntag, 2012).

In a March 1990 organizational meeting with the founder (attended by co-author Kirkpatrick), Morning Star adopted two core principles: first, people should not use force or coercion against other people, and second, people should honor the commitments they make to others.

The first loads of tomatoes arrived at Morning Star’s first new state-of-the-art facility in mid-July of 1990 and kicked off a successful processing season, producing over ninety million pounds of bulk tomato paste for the world market. Morning Star is now the largest tomato processor in the world, with over $700 million in annual sales, its products consumed by virtually everyone in North America and millions more around the world.

While Morning Star owes much of its success to an innovative low-cost production strategy, much of its success is also traceable to its unique organizational philosophy of self-management, which is core for an organizational modus operandi of sense and respond. As a successful self-managed organization, it is a case study in management plasticity.

    1. Organizational Design and Philosophy

Morning Star exhibits zero hierarchy. There are no human bosses; the only boss is the mission. The operating philosophy is total self-management. Morning Star employees consider themselves professional colleagues.

Since command authority does not exist in the company, there is no unilateral authority to fire. Colleagues acquire or culminate the services of others by invoking written Colleague Principles. No one has a title, which reinforces Morning Star’s self-management philosophy. Everyone has an equal voice regarding decisions that affect them.

While lacking formal structure, there are resources available to help colleagues synchronize their activities with others. Each colleague executes a Colleague Letter of Understanding (also known as a CLOU). The CLOU is a dynamic, transparent, negotiated accountability agreement between colleagues declaring each individuars personal commercial mission, process stewardships, and performance measures.

Morning Star’s success takes place in a complex and demanding business environment. Morning Star colleagues continuously navigate complex disciplines that include cell biology, plant genetics, microbiology, food chemistry, thermodynamics, meteorology, global currency exchange and many others. The Colleague Letter of Understanding is a key navigational and communication tool that enables management plasticity by creating networks of individuals based on the resource requirements and urgency of diverse problems and opportunities.

  1. Interpretation of Morning Star’s Management Plasticity

There is as much need for leadership in a self-managed organization as in a hierarchical one; self-managed leadership is just dynamic rather than static- it completely depends on the issue and the individuals. Leadership in such an ecosystem can rotate and evolve naturally, depending on the circumstances. No particular leadership style is required, and many leadership styles can work well. Morning Star’s expression of self-managed leadership fits our definition of management plasticity. lt also proved to be a key enabler of Morning Star factory construction. A small band of self-managed colleagues in 1990 (about 24 during the construction phase) were able to oversee the construction of a new, state-of-the-art, $27 million dollar factory in a period of just a few months. This project and others could not have been completed on time with traditional, command-and-control hierarchies. Paradoxically, the very simplicity of the two simple foundational principles adopted in 1990 facilitated the management plasticity driving Morning Star’s growth. People had no choice but to manage with adaptability, agility and flexibility. There were simply no traditional management systems available to do it otherwise.

With the advent of successful new organizational models like that of Morning Star, it is worth asking the question: how do the properties of neuroplasticity inform the emerging theory and practice of management plasticity?

Morning Star’s organizational network resembles a spider web of connectivity. All associations between members are voluntary, and digitally recorded in the CLOU. When these connections are rendered in a diagram, they resemble a neural network. If one were to make a time-lapse movie of such a diagram, it would dynamically change shape and size as individuals enter and leave the ecosystem or voluntarily renegotiate their relationships and commitments. Morning Star’s actual organigraph is depicted above, built from a digital rendering of CLOU data.

One benefit of management plasticity is that organizations become more resilient and are able to adapt with flexibility to dynamic change. Threats and opportunities cause Morning Star’s human network connectivity to change rapidly in response, much like a human brain; it is all about a constant flow of sense and respond. Clusters of connections form and dissipate in response to organizational needs. Tue rapidity of this formation and dissipation is often startling – attempting to concoct or reorganize teams in a traditional hierarchical model would be glacially slow in contrast. Co-author Kirkpatrick has personally engaged with multiple temporary hot teams formed to address issues like spiking insurance costs and capital project management.

Self-managed organizations have also demonstrated, like human neural systems, the ability to regenerate themselves and self-heal.8 When an individual leaves the Morning Star ecosystem, roles and responsibilities are quickly relocated by self-managing peers, without direction or control. If the individual exiting the system possessed a unique talent or skill that cannot be quickly replicated by others, colleagues engage a recruitment and selection process to fill any gaps.

Morning Star’s member colleagues experience no structural barriers to communication with anyone in the organization. Learning is an ‘always-on’ activity, as members in similar and dissimilar functions and locations seek information from each other that will improve their own performances, and those of their peers. Members of individual business units that cross multiple factories (for example, Steam Generation) come together at least annually to formally share learnings and experiences. These formal meetings augment continuous informal communications that drive superior performance and innovation.

Creativity is another natural benefit of neuroplasticity. The virtuous cycle of absorbing new and outwardly unrelated ideas, and connecting them in unexpected ways, is the essence of human creativity. Does management plasticity provide similar benefits to organizations?

For decades, the tomato processing industry used energy-hungry elevators to carry loads of tomatoes uphill into flumes for processing in factories. Morning Star’s founder, Chris Rufer, observed that unloading trucks on top of a hill would allow gravity to carry tomatoes into the factory without the use of elevators. Today, the concept of an unloading hill is an industry standard. Similarly, he observed that evaporating water from tomatoes to produce concentrate required the use of large, inefficient cooling towers to cool water for reuse. He replaced the cooling towers with large ponds, and let the water cool down naturally through evaporation. In each case, creatively integrating natural methods of movement (gravity) and temperature change (evaporation) with industrial processes proved to be disruptive to an entire industry. In these examples, neuroplasticity and management plasticity worked together: neuroplasticity catalyzed new connections and creativity in the mind of the innovator, while management plasticity drove implementation.

When everyone is a manager, as in the case of Morning Star’s self-managed ecosystem, the benefits of management plasticity are widely distributed. In one recent example (2014), a mechanic identified an innovation in material management: the handling and usage of chemicals. The innovation, which generated a compelling return on investment, depended on the creativity of one individual with an ability to foresee improved process outcomes. The flexiblity of a self-managed environment, endowed with management plasticity, allowed that individual to creatively envision a desired future state, personally communicate the benefits to peers, re-design the process, create buy-in, and successfully implement the change.

8 See also (LRN Corporation, 2012).

  1. How to Start a Journey Toward Management Plasticity

How can enterprises that have been built on traditional command and control management structures and tools take steps toward greater management plasticity, i.e. enterprises that have not been built from scratch in a self-managed manner like Morning Star? In the natural sciences, experiments are fundamental to progress and success. In contrast, in the business world, experiments will often face bitter opposition, as they are perceived as carrying uncontrollable risks with possible undesired outcomes. Yet experiments can pay off precisely because of their very nature of accepting unpredictability and failure and therefore fostering learning and adaptation in contrast to traditional projects within the outdated predict-and-control fashion of traditional management.9 Examples of possible managerial experiments toward management plasticity are10:

  • Voluntary participation in meetings of all kinds·

  • Voluntary participation in projects or experiments

  • Access to all information for all employees

  • Time and space for the employees to develop their creativity

  • Abolition of formal talks on target agreements and incentives (also financial)

  • ·Abolition of job descriptions

  • Abolition of traditional budgeting and budget targets

Such kinds of experiments support management plasticity and the opportunities to live up to one’s full potential as lived by the Morning Star Company. This is in line with the call for management plasticity, which sees neuronal interconnectedness as a metaphor for a new organizational understanding.

  1. Conclusions

Building an organizational structure based on self-organizing, dynamic networks releases trapped human potential and leads to creativity, as well as to a whole field of other positive and critical features in today ‘s complex and fast changing world, as we have seen in the Morning Star case. These include adaptability, resilience, ability to innovate and self-healing capacity.

In the end, to really unfold human potential and creativity, we argue that courageous leaders will be needed everywhere in organizations to transform the traditional management mode of predict and control into a new mode of sense and respond that we have defined by the term management plasticity in this article.

  1. See (Hamel & Zanini, 2014).

  2. See detailed examples in (Kirkpatrick, 2011) and (Hope, Bunce, & Röösli, 2011).

creative-2

ABOUT THE AWESOME AUTHORS

Franz RÖÖSLI, PhD, is a professor at the University of Applied Sciences Zurich (ZHAW), management trainer and Director of the Beyond Budgeting Round Table (BBRT), an international, membership-based practitioner and research community. He had worked in different companies in leadership positions including member of the executive team before he started an academic career. His research and consulting interests are organizational behavior, leadership and management innovation. He co-authored the book “The Leader ‘s Dilemma”. Contact: franz.roeoesli@zhaw.ch
Doug KIRKPATRICK is the author of Beyond Empowerment: The Age of the Self-Managed Organization. He is a former financial controller for The Morning Star Company and a participant in the adoption of its unique self-management philosophy. He is an organizational change consultant, TEDx and keynote speaker, executive coach, writer, educator and SPHR. Contact: doug@redshift:3.org
Michael SONNTAG is a medical doctor, Bioenergetic Analyst (trained by Alexander Lowen) and management consultant. He is specialized in teaching and creating the conditions needed to enable, enhance and govern deep transformational and self-healing processes, both on an individual and an organizational level. Contact: m.sonntag@sonntag-consulting. ch

Curated by Trevor Lee

http://www.ep-i.net

http://www.ceo-worldwide.com

@trevorblee

 

References

Fuchs, T. (2009). Das Gehirn ein Beziehungsorgan. Eine phänomenologisch-ökologische Konzeption. Stuttgart: Kohlhammer.

Haken, H., & Schiepek, G. (2006). Synergetik in der Psychotherapie Selbstorganisation verstehen und gestalten. Göttingen; Hogrefe.

Hamel, G., & Zanini, M. (2014). Build a change platform, not a changeprogram. Retrieved November 12, 2014, from McKinsey Insights & Publications:http://www.mckinsey.com/ insights/organization/build_a_change_platform_not_a_change_program

Hope, J., Bunce, P., & Röösli, F. (2011). The leader’s dilemma how to build an empowered and adaptive organization without losing control. Chichester: John Wiley & Sons.

Kirkpatrick, D. (2011). Beyond empowerment the age of the self-managed organization.

Sacramento: Morning Star Seif-Management Institute.

Laloux, F. (2014). Reinventing organizations a guide to creating organizations inspired by the next stage of human consciousness. Brussels:Nelson Parker.

LRN Corporation. (2012). 1he HOW report new metrics for a new reality: rethinking the source of resiliency, innovation and growth. Retrieved März 9, 2014. Archiviert mit WebCite ais http://’\\’W\V.webcitation.org/6NwNkhUsk, from http://www.lrn.com/howmetrics/ data/LRNHowReport2012.pdf

Panksepp, J., & Biven, L. (2012). The archaeology of mind neuroevolutionary origins of human emotions. New York: W. W. Norton.

Pink, D. H. (2010). 1he surprising truth about what motivates us. Edinburgh: Canongate.

Sonntag, M. (2012). Jenseits von Managed Care -Wie aus unserem Gesundheitswesen ein modernes und wertgenerierendes System entstehen könnte. Schweizerische Ärztezeitung, 93, pp. 729-730.

Towers Watson. (2014). Towers Watson Global Workforce Study 2014. Retrieved November 12, 2014, from http://www.towerswatson.com/en/lnsights/IC-Types/Survey-Research­ Results/2014/08/the-2014-global-workforce-study

No more Command and Control. Please!


growth-1

In order to power growth you should aim for an adaptive and empowered organization, that:

  • Responds rapidly to threats and opportunities.

  • Adaptive organizations operate with speed and simplicity by giving managers the scope to act immediately and decisively within clear values and strategic boundaries. Making strategy an open, continuous and adaptive process is the key. It enables the firm to react to emerging threats and opportunities as they arise rather than being constrained by a fixed and outdated plan.

  • Attracts and keeps the best people.

  • It is no coincidence that Adaptive Organizations such as Google, Handelsbanken and W.L. Gore regularly appear in the lists of “best companies to work for”. The reasons are obvious. From the employee perspective, talented people want to learn and develop; they value time to think, reflect and try new ideas; they want decision-making responsibility and they want a friendly, collegiate culture. From the employer perspective, they want people who have the right attitude, have ideas and can add value, want to participate in decision-making, are good team players and have the talent to become leaders at any level.

  • Enables and encourages continuous innovation.

  • Innovation is about thinking and acting differently whether it is about strategies, business models, processes, or management practices. In adaptive organizations, people work within an open and self-questioning environment. Clear governance principles set the right climate and builds the mutual trust needed to share knowledge and best practices. This is also encouraged by the move away from individual rewards based on budgets and toward team rewards based on business unit or group performance.

  • Drives operational excellence.

  • Adaptive organizations have lower costs. Not only do they connect the work that people do with customer needs, but they also align products, processes, projects, and structures with their strategy. Operating managers also challenge resources used rather than seeing them as ‘entitlements’. Just asking the question, “Does it add value to the customer?” is often sufficient to ensure that unnecessary work is eliminated.

  • Leads to loyal and profitable customers.

  • Adaptive organizations know how customers want to conduct business with them. Key issues are whether customers just want the lowest-cost transaction, added-value services, or customized solutions. Under this “outside-in” approach, firms know how to satisfy customers’ needs profitably. This means not only knowing their needs, but also their net profitability.

  • Support good governance and ethical behaviour.

  • Adaptive organizations are held together by strong values and inviolate principles. However, it is not a soft option. It exposes nonperformers. It challenges people all the time. You cannot just agree on a number. You have to show people that you can actually achieve real performance improvements, and must always be prepared to be judged against others with similar problems and opportunities.

  • Leads to sustained value creation.

  • Leaders in Adaptive organizations focus their attention (either explicitly or implicitly) on creating wealth over the longer term. In particular, they focus on setting high performance expectations and stretching people’s ambitions. Those companies that operate this way tend to beat the competition not just this quarter or this year but year after year.

Clearly adapting in these ways the organisation that will emerge will replace the 20th century industrial age command and control management model that is no longer ‘fit for purpose’.

A viable alternative* that will provide a sustainable basis for high performance.

*BBRT.ORG will assist you on this journey as it has done alongside so many leading organisations (see website)

Trevor Lee

tblee@ceo-worldwide.com

http://www.ceo-worldwide.com

@trevorblee