What Way Of Being Creates Access To Effectiveness In The Exercise Of Change Leadership?

Looking back, I see that I have been involved in drama of organisational change since the days I did corporate recovery work as a part of Price Waterhouse’s Corporate Recovery division.  That must have been around 1990/91 – some 20+ years ago.  What is it that I have ‘learned’ about this domain: the domain of leading-facilitating organisational change?

After 20+ years, I find myself totally clear on the following: almost every Top and Middle I have come across, in just about every type of organisation, in just about every type of industry, sucks at leading-enabling-facilitating organisational change.  I found myself face to face with this truth, in a recent organisational context, where I find myself acting as  an outside advisor on a Customer project.

If you find yourself in this ‘place’ and are content with this then stop reading and go do something useful with your life.  On the other hand, if you find yourself in that ‘place’ and looking for an access to being effective in the exercise of change leadership then I invite you to listen – really listen and grapple with these words of wisdom:

Position is everything. Everything changes, even when the circumstances remain identical, when you shift your position. Try it sometime with someone who is your adversary. Shift your position. Be that person and the adversary disappears.

Shift positions with whatever barrier you are facing … in your life. Be the barrier, and it is no longer there. It is only there because we pull back, separate ourselves from it. The more we pull back, the bigger and more overwhelming it gets, and the angrier or the more frightened we become. If we really look at the anger that makes us crazy or the fear that stops us cold, we see that it develops step by step from our thought process. And starting point of that thought process is separation ……

When you really acknowledge that it is nothing but yourself, when you realise this fact, you cannot live your life in the old way. You’ve suddenly taken responsibility for it. Before, the problem was outside – your bad luck, what other did to you, the circumstances you could do nothing about… When you realise that the cause is you, you empower yourself. You suddenly become a ten thousand-foot-high buddha……. Nothing is outside of you.

– John Daido Loori, The Great Way, Best Buddhist Writing 2008

Just about every one of us (as a human being) sucks at relationship, at experience design, at calling forth engagement, at change, and at the exercise of leadership due to the neglect of this radical truth. Some of us are not aware of this. Many who us, who are aware of this truth, choose not to give life to this truth in our way of being (showing up and travelling) in life.

Is it then any surprise that just about every organisation sucks at cultivating relationships with customer, at designing-generating appropriate customer experiences, at calling forth the best of their people popularly labelled employee engagement, and the exercise of change leadership?

What hope is their for an organisation to make a shift to a customer-centric way of being-in-the-world and doing business with customers, when the Tops and Middles are not even effective in the exercise of change leadership in the context of designing-implementing a CRM system?

Mazism 2: It Comes Down To People And Relationships!

This conversation follows on from an earlier conversation: Mazism 1: There Is Always A Price, It Is Always Paid.  

What lies at the source of organisational effectiveness? Is is strategic planning in the guise of strategy?  Is it process standardisation / reengineering in its many disguises?  Is it restructuring the business, offshoring and outsourcing?  Is it about embracing and making good use of the latest information technology?  Is it about embracing the latest management fashion: customer-centricity, customer experience, digital business?  Is it leadership? Or organisational learning?

After 25+ years spent engaged in the challenge of improving organisational effectiveness and business performance, I am clear that the access to organisational effectiveness and superior performance does not lie in any of these domains. Why?  Because they do not get to the heart of the matter: of what is actually so about organisational life and the game of business.  What is so?

I am clear that organisational effectiveness (team, function, business unit, corporate) comes down to the people and their relationships with one another.  By ‘relationships’ I mean the communicating-relating that has occurred and is occurring between people.  If the job of ‘leaders’ is to cultivate organisational effectiveness then it occurs to me that leadership involves-requires a focus on people and relationships. I invite you to read-consider the following passage (bolding is my work):

The lone warrior myth of leadership is a sure route to heroic suicide. Though you may feel alone at times with either creative ideas  or the burden of final decision-making authority, psychological attachments to operating solo will get you into trouble. You need partners. Nobody is smart enough or fast enough to engage alone with the political complexity of an organisation or community when it is facing and reacting to an adaptive challenge. 

Relating to people is central to leading and staying alive. If are you are not naturally a political person, then find partners who have that ability to be intensely conscious  of the importance of relationships in getting challenging work done. Let them help you develop allies. Then, beyond developing your base of support, let them help you relate to your opposition, those people who feel that they have the most to lose with your initiative. You need to stay close to them to know what they are thinking and feeling, and to demonstrate that you are aware of their difficulty. Moreover, your efforts to gain trust must extend beyond your allies and opposition, to those folks who are uncommitted. You will have to find appropriate ways to own your piece of the mess and acknowledge the risks and losses people may have to sustain. Sometimes you can demonstrate your awareness by modelling the risk or the loss itself…..

Ronald A. Heifetz and Marty Linksy, Leadership On The Line

Time after time I have witnessed promising ‘strategies’ and plans come to nothing during the implementation phase because those leading change have been blind to the importance of people and relationships – during the strategy development phase, the implementation phase, and/or the post implementation phase.  

I say look at any effective organisation (team department, business unit, corporate, society) and you will find healthy communicating-relating occurring between the people who collectively constitute that organisation. And healthy communicating-relating occurring between members of that organisation and the people who they interact with in the broader environment in which that organisation organises and executes its work.

I continue to be amazed that some Tops and Middles want to work on improving customer relationships and the Customer Experience. Why? Because they and their organisations have little appreciation-consideration-feeling for the quality of communicating-relating that is occurring in the organisation. And no lived experience nor appreciation of the the Employee Experience: whether on the front line or the back office.

 

Change/Leadership: The Wisest Words Spoken On Creating Change?

“The only way we really create change is to enter any situation with the humility to listen and to recognize the world as it is, and then the audacity to dream what it could be, to have the patience to start and let the work teach you, to be willing to lead when you need to lead, and to listen. To have a sense of generosity and empathy ….. If there’s one value that is immutable, it’s integrity or respect, for others and for yourself.

The best change that comes to the world is when all parties are seeing each other as equal, and all parties have the opportunity to be transformed.” 

  •  Jacqueline Novogratz

Six Guidelines for Strategy Execution and Transformational Change

Take a look at just about any significant change initiative in customer service, CRM, marketing effectiveness, digital transformation, customer experience etc and you will find that the top barriers to successful implementation are do with lack of commitment from the Tops and ‘resistance to change’ from people within the organisation.

In the last post I shared David Maister’s assertion that our performance (individual, group, organisation) often does not improve because we are not willing to do what it takes over the time frame that it takes. Today, I share with you David’s insight into what it really takes to execute strategy, effect organisational change – which always involves personal change as well as organisational change.

This is a long post and I suggest that you read it only if you have an avid interest in strategy execution and/or transformational change. Or if you are wondering why it is that so few organisations have made the shift to being great with customers. And what it will take to make that shift.

Is the transition to customer-centric business like curing a fat smoker or helping an alcoholic recover?

It occurs to me that many organisations are addicted. What are they addicted to? I say they are addicted to a number of factors: a dominant ideology usually manifested in the business model; ‘bad profits’ – profits made at the expense of customers; a fixed way of being including policies, practices, and processes; the short-term fix etc.

In his book, Strategy And The Fat Smoker, David Maister says:

If all business improvement is like curing a fat smoker or helping an alcoholic recover, then what actually motivates people and organisations to change?

We all know the main thing that works: a major crisis! If revenues drop off sharply, it’s amazing how quickly businesses can act to deal with known inefficiencies and bad habits they could have tackled years ago.

… when the first heart attack comes, it’s amazing how many people suddenly find the self-discipline to start living right.

Does David Maister have any guidelines for us on how to effect personal-organisational change without waiting for that ‘heart attack’ to show up and force us to change? He does.

Six guidelines for strategy execution and transformational change

1. Get that it is about a permanent change in lifestyle

In my last post I mentioned that I worked for an organisation that carried out a quarterly NPS rain dance. Everyone went through the motions to get it out of the way quickly and get back to business as usual. To take it seriously, to do what was really necessary at levels-functions of the organisation showed up as being too much effort, too disruptive.

Here’s what David Maister says:

A major source of failure in implementing sensible business strategies is that we underestimate how much effort is truly required to bring about significant improvement.

Individuals and organisations frequently fail to incorporate the new activities into their daily lives. Strategic actions are viewed as special, separate events rather than regular business activities. In other words, there’s real life, and then there’s the diet.

It is about routines , not special events. 

My experience since 1999, working on helping organisations shift towards a customer-centric way of doing business, including smarter marketing-selling-service, resonates with David’s words. The customer centric orientation has to be weaved into the very fabric of the organisation through it daily practices  – routines – such that these practices become so taken for granted that they become invisible.

2. You must change the scorecards

There is a world of difference between playing a game where one has no skin in the game. And playing a game where one has something that really matters (like one’s reputation or wellbeing) is at stake in the game.  Let’s listen to David Maister:

If strategy is to be lived and achieved, it must be publicly tracked, measured and monitored.

We all forgive ourselves too easily. We all find it quite easy to live with guilt. Even a high level of guilt doesn’t always change people. However, embarrassment, even in small doses, can be far more effective.

3. Leadership: get serious or get out of the way

One of my biggest issues with the whole customer bandwagon and business advice in general is that it panders to the Tops and Middles. That is to say the hidden assumption (which serves the interest of those seeking to sell to the Tops and Middles) is that Tops and Middles are perfect – do not need to change their way of showing up in the organisation. And the only obstacles to strategy execution, organisational change, and customer-centricity, are the  Bottoms.  What does David Maister say given that he has had lots of experience working with the Tops:

Organisations often rush to figure out how the troops need to change in order to live the new standards. However, this is not the first task.

If an organisation’s leaders want their people to believe that a new strategy is being followed, they must establish credibility by proving that they are prepared to change themselves: how they act, measure, and reward. 

David Maister goes on to say that he can share countless examples of “failure to do this”.  And gives a great  example of the instructions he received from senior management prior to running training for managers in the company:

“Please don’t raise the topic of how we ourselves manage these middle managers. We’re not ready to discuss the terrible job we do at that. Keep their attention on what they could do better. We want them to change first.”

4. Principles are more effective than tactics

One of my biggest issues with the whole Customer (service, CRM, VoC, customer experience, loyalty etc) conversation is that it shows up for me as just tactics.  That is to say that under all the hype and ideology of customer-centricity and employee engagement there lies a selfish concern with interests of the enterprise: the realm of expediency not principle.  What light does David Maister shed on this?

.. successful implementation of a strategy requires both sustained commitment over time and broad participation across the whole organisation. Strategies in business, like diets and alcohol recovery, are implemented much more effectively when the ideas are presented as matters of principle, not just as matters of expediency. 

If strategic rules are justified only in terms of outcomes … the diet will always be seen as a punishment on the way to an uncertain and possibly unattainable reward…

If … diet achieves the force of moral principle (“Treating clients and employees with respect is the right thing to do”), the odds are significantly higher that successful implementation will be achieved.  

Managers who get things done are people who are viewed as having an ideology. Their people believe that they believe in something …. buy-in and excellent implementation result from a sense of not wanting to let people down.

5. People must volunteer

Looking into and beyond the whole field of change management and what do you see? I see that it exists to deal with ‘resistance to change’. How successful is the change management industry when it comes to dealing with ‘resistance to change’? I say that it’s effectiveness is questionable. What advice does David Maister have for us?

To achieve any goal, you must really want the goal.

A self-improvement program is successful and sustainable only when the individual chooses to to it for himself … The motivations must be intrinsic, because the essence of successful strategic change is not technique, but will …….. you can call it determination. 

.. the single biggest barrier to making change is the feeling that “it’s OK so far.” People don’t disagree that the future state of being a nonsmoker would be beneficial, but they resist when they are told that they have to do it.

One of the leader’s roles is to act as a coach, drawing people’s attention to imperfections in the status quo .… asking whether things could actually be better, and questioning whether the desired change is both achievable and desirable…..

6. People must get on or off the bus

If “people must volunteer” showed up as being naive and idealistic for you then this guideline is likely to speak to your concern. David has keen sense of the pragmatic:

Every individual can, and must make a personal choice. But then the organisation must decide how to respond to those individual choices. For an organisation, strategy cannot be what “most of us, most of the time” do.

As all married people who diet know, it’s hard enough to stay the course and resist temptation when you are both attempting to do the right thing. It’s well nigh impossible if those around you continue to indulge and tempt you with food, alcohol etc.

we cannot force others to do what we want. We can … protect those who have chosen to participate; doing so may require ridding the firm of those who refuse to come on board.

People have a desperate need for the mutual support …. that comes from joining in a common cause. The need to help each other through the tough times … instead of being part of a forgiving culture that keeps discouraging extra effort (“Oh, that’s OK, you can skip exercise today. You deserve a break.”).

Final words of advice on managing the process of change

It occurs to me that too many Tops and Bottoms live in the world of McDonald’s. They decide that they want to improve customer service, focus on the customer experience, build stronger relationships, generate growth through effective use of digital technologies etc – and they want it NOW!

Here’s David Maister’s sage advice based on lived, first hand, experience of making-sustaining transformational change:

Like alcoholic recovery, it is a process that requires you first to make a lifetime commitment, and then you take it one day at a time.

The key is to manage with a philosophy of “It’s OK to stumble; it’s only a sin if you don’t get back on the program.” The primary goal of the beginning stage of a change program is to get people to believe that it is doable and that all we are asking is that they try.  This means early successes.

All that wise leader …. talk about is the next step. And they enthusiastically celebrate each small accomplishment. They focus on requiring improvement, not on requiring excellence

Managing a weight loss program means you stop talking about the ultimate goal….. if someone says to me: “Let’s focus on losing one pound in a week, David. Do you think you can do that? That doesn’t sound impossible, does it?”

Good trainers know that life-changing improvements can and does fail by rushing to either of two extremes. The first extreme establishes overtly ambitious or time-consuming improvement goals, leading to frustration and abandonment of the program. The other extreme fails to establish any pressure to improve, allowing people to pretend they plan to get on the plan, but not just today.

How Well Are You Positioned to Make The Shift to Being a “Customer Company”? Answer these 10 Questions to Find Out

It takes something to run a marathon.  It takes something to orient your organisation around the customer.  It takes something to be a “Customer Company”.  And it takes a lot more than technology or changing some processes here an there.

What does it takes to be a “Customer Company”?  It takes passion.  It takes steadfast commitment. This passion and commitment has to reside in the hearts of your senior management (“Tops”). And this passion and commitment has to be visible and experienced throughout your organisation.

Why does it take this level of passion and commitment from your Tops?  Because an authentic shift toward customer-centricity requires changes at multiple levels: priorities, policies, practices, processes, people, and platforms. This kind and scale of change only occurs when there is genuine passion, commitment and leadership from the people at the very top of your organisation.

How can you work out if the Tops in your organisation have this kind of passion and commitment to creating a “Customer Company”?  There are dreams. There are intentions. There are fine sounding words. And then there is how people show up in the world: their being and their doing. Which is my way of saying that you should pay attention to how people show up in the world, not what they say.  With that in mind, I propose that you ask yourself the following questions:

1. Do the Tops know how many customers we have gained over the last month, how many we have lost, and the impact on our business?

2. How much time and effort did the Tops expend last month serving our existing customers – in the stores, in the call-centres etc?

3. What actions have the Tops taken, over the last month, to walk in the shoes of our customers? Have they bought one of our products? Have they attempted to assemble-use our product? Have they called customer services to return a product? Have they read our marketing literature etc?

4. When was the last time the Tops called our customers to thank them and learn what enticed them to choose us over our competitors?

5. When was the last time the Tops rang up customers who have chosen to stop doing business with us to find out what caused them to leave us?  And what it will take to win them back?

6. When was the last time that the Tops met with a cross-section of our frontline people, individually and/or collectively, to get access to their experience and their thoughts on what is and is not working for them, for our customers? Is this type of meeting a regular event or a one-off?

7. Have the Tops ever been undercover to experience the reality of being on the frontline?

8. Do the Tops know how many of our frontline employees have left us, why, and the impact of this turnover on our customers, and our business?

9. How much time do the Tops devote per week, per month, per quarter on discussing what they have learned/experienced by talking with our customers, and our frontline employees?

10. What changes are the Tops making in terms of priorities, policies, practices, processes, people and platforms?