This is the slowest pace of change for the rest of your life.

This is the slowest pace of change for the rest of your life. ~Greg Dickason from CoreLogic

Greg Dickason wrote both an attention-grabbing and accurate headline. Global Risks 2018 (an annual report published by the World Economic Forum) stated that the pace of technological and social change is “testing the absorptive capacities of institutions, communities, and individuals.”

Like it or not, our “absorptive capacities” will be tested for the rest of our lives, as well as the lives of our organizations. I discovered an HBR article back from 1997 entitled Changing the Way We Change by Richard Pascale, Mark Millemann, and Linda Gioja. While the article was written 20+ years ago, I believe their conclusions about the vital signs of organizational health to withstand change (i.e., absorptive capacities) still hold true today.

Here are four vital signs to test your organization’s “absorptive capacity,” your ability to thrive in the midst of change, with some of my added commentary.

Power. Authors Pascale, Millemann and Gioja ask “Do employees really believe that they can affect organizational performance? Do they believe they have the power to make things happen?” This seems obvious, after all, if employees don’t believe that their efforts can make a difference in the bigger picture then quite frankly, why should they change what they are doing, how they are doing it, or their attitude towards it? Yet, I see this first vital sign frequently overlooked.

Identity. Pascale, et al, ask “Do individual employees identify narrowly with their profession (i.e., engineers), their working team, their functional unit, or do they identify with the organization as a whole?” That dreaded word: silos. Too many silos throughout an organization make it much more difficult to shift gears, head in a new direction, or introduce any kind of change. The more employees can identify with the organization as whole, the greater the organization’s overall health and adaptability.

Conflict. How is conflict handled? Are conflicts avoided, swept under the rug? Or, is conflict confronted and resolved? Is there a shared understanding for the process of how conflict is handled? Healthy conflict is a good thing. It’s a necessity to effectively manage change.

Learning. The idea of organizational learning has been around for decades, yet I still find leaders who equate organizational learning with having a tuition reimbursement program. Organizational learning is how the organization deals with new ideas, how those ideas are tested, when things don’t work as expected how the organization responds?

This is the slowest pace of change for the rest of your life. How is your organization using power, identity, conflict, and learning, to more effectively maneuver through the changes that will most certainly “test your absorptive capacities”?

The single most powerful weapon in a leader’s arsenal…

Stories constitute the single most powerful weapon in a leader’s arsenal. ~Dr. Howard Gardner

A leader presents the business case for the organization’s move in a new direction. It’s filled with data and sound logic. Then they ask the people in the organization to join in the move toward the new direction, after all, it’s only logical. Instead of resounding applause, the leader is met with skepticism, challenging questions, uncertainty, and apprehension. Sound familiar?

The leader failed to recognize what organizational theorist Chris Argyris coined as the Ladder of Inference. Imagine a ladder…at the bottom of the ladder is all the observable data (all that logic the leader presented in his business case); one rung up is the data I select; then next the stories I tell myself based on my selected data; followed by my assumptions inferred from my stories; which leads me to my conclusions, next come my beliefs based on my conclusions; and finally, the action I take based on my beliefs. Author M. J. Ryan says, “The higher up the ladder you are, the more rigid is your thinking—and the more unsafe you are because you are farthest away from the facts.”

A quote I use frequently in organizational consulting is “every gap in communication is filled with imagination.” It describes the dangerous assumption made by too many leaders. Once they’ve laid out a logical course, they stop. They believe that everyone else in the organization will select the same data, tell themselves the same stories and make the same assumptions, draw similar conclusions, form beliefs that align with theirs and then take action just as they [the leader] had envisioned.

As Argyris’ model highlights, the actions we take are a far cry from the observable data. What’s a leader to do?

I believe that leaders need to carefully climb up with ladder with their people.

First, don’t overwhelm them with data, select the data that is most meaningful. Then, tell them a story. Provide a narrative they can reference throughout the change process. Tell them what assumptions you are making within your narrative/story, how you’ve drawn your conclusions, what you believe, and then finally what action the organization will take. Far too many leaders jump up the ladder from observable data/facts to taking action and assume that everyone in the organization is both comfortable and capable of making the same leap into the future.

Change is hard. Travel the change journey along with your people. Begin by telling a story.

People don’t resist change. They resist being changed!

People don’t resist change. They resist being changed! ~Peter Senge

Author John P. Kotter begins Leading Change with this statement: “The single most important message in this book is very simple. People change what they do less because they are given analysis that shifts their thinking than because they are shown a truth that influences their feelings.”

To get us all on the same page, the definition of change management is “The discipline that guides how we prepare, equip, and support individuals to successfully adopt change in order to drive organizational success and outcomes (Prosci.com).” In my own words, change management is about helping people emotionally and psychologically adopt change. Or, recognizing that we change more because of how we feel, not as much because of what we think.

A year ago, I spent a day observing a leadership team of a global organization go through change management training. The day was filled with models like the change reaction curve (our emotional response to change), detailed processes how to influence change of both individual and collective behavior, and all the various roles necessary to influence change. Closing out the day with how to create metaphors to communicate a truth to influence how others feel about change.

(Sigh!) After all of that focus on how to help people feel their way through change, there were still leaders in this group at the end of the day saying, “I think we need to talk more about the ‘business case’ (analysis) for implementing change.” Argh! Really?! At least that’s what I was thinking in the back of the room.

When faced with a decision, how we feel about something many times (if not most of the time) determines our final choice. Think about the last time you made a big decision (bought a home, moved to a new city, quit your job, etc.). When you made that final decision, did you say to yourself, or to someone else, “this just feels like the right choice”? The data and analysis will frequently narrow the choices, but at the end of the day, we choose to change, or not, by how we feel about it.

I believe that leaders are frequently promoted because they are skilled at making analytical decisions. But, those decisions can’t be effectively implemented if others aren’t following. And others will follow, or not, based upon how they feel about what’s being proposed. The process to garner support and followers (AKA: change management) is quite different from the process to make the analytical, strategic, or technical changes (AKA: project management). If you want to bring people with you, they have to feel it.

Is your organization currently going through a change? What are you showing them to influence their feelings about the change?  “It is not the strongest or the most intelligent who will survive but those who can best manage change.” ~Charles Darwin

 

3 Critical Steps to Get the Most Out of Your SWOT Analysis

Strategy is about making choices, trade-offs; it’s about deliberately choosing to be different. ~Michael Porter

A SWOT (strengths, weaknesses, opportunities, threats) analysis is only the beginning of identifying a strategy. I see too many organizations conduct a SWOT and stop there; not knowing how to turn that analysis into a strategy. This is what I believe should be the outcome of a SWOT.

First, here’s my working definition of creating strategy. Creating strategy = identifying a few strengths and/or unique attributes that can be intentionally leveraged to your advantage toward solving an external problem or felt need, while recognizing and mitigating risk.

Second, my definitions of SWOT.

(a) STRENGTHS: includes not only what you do really well, but also what is unique about your organization and/or what you do. (b) WEAKNESSES: what you do not do well. (I’d stay away from using language like “what’s not working” because that implies it needs to be fixed. Not all weaknesses need to be fixed.)  (c) OPPORTUNITIES: this list should include all things external to your organization that could provide direction for what you choose to do and how you do it—technological changes, changing competitive landscape, regulations, innovations, cultural shifts, demographic swings, etc. (d) THREATS: this list is similar to opportunities but focuses on anything external that could have a significant negative impact on what you choose to do.

If you’ve kept each one of those four lists in its appropriate lane, you can now identify a strategy.

Step 1: Look at your lists of STRENGTHS and OPPORTUNITIES side by side. Using my definition of strategy, what specific strengths and/or unique attributes can you intentionally leverage to your advantage toward anything you’ve put on the opportunities list? This could mean that your strategy doesn’t focus on what you consider your #1 strength. If there’s not a viable opportunity (external problem or felt need) for you to intentionally leverage that strength, then that doesn’t align with the definition of strategy. You might discover that the strength you would have put third or fourth on your list if you were to rank order them, could be intentionally leveraged toward solving one of the opportunities you identified.

The best strategy comes from first pairing your strengths with the opportunities where you can have the greatest likelihood for success.

Step 2: Next, look at your list of THREATS. Are there any threats that would create too great of a risk to pursue what you identified in Step 1? Any threats that would essentially veto that strategy? Are there initiatives you could implement to help mitigate some of that risk?

Step 3: Lastly, look at your list of WEAKNESSES. What weaknesses, if any, do you need to address in order to ensure that you can accomplish the strategy you’ve identified? Notice that spending time fixing weaknesses is the last thing you would do to create a strategy, and is the last priority in determining what strategy to pursue. That’s why it may not be a prudent use of resources to fix weaknesses that have little or no impact on your strategy.

It’s your turn. What’s your strategy?

 

 

Six Attributes of a “Frog in a Kettle” Leader

Absentee leadership rarely comes up in today’s leadership or business literature, but research shows that it is the most common form of incompetent leadership. ~Scott Gregory

Scott Gregory describes a scenario I’ve witnessed on more than one occasion. A leader who always provides feedback that consists of “You’re doing a great job.” However, you know it’s not true and you’re not meeting their expectations. What is really needed is more support and better (i.e., real) feedback.

Hence, the title of the article authored by Gregory is The Most Common Type of Incompetent Leader. Gregory explains that because these “absentee leaders don’t actively make trouble, their negative impact on organizations can be difficult to detect…When it is detected, it often is considered a low-priority problem.” After all, it’s not embezzlement or harassment or something unethical, it’s not anything that would typically fall under the purview of a whistleblower policy, so it’s categorized as differing leadership styles. Gregory refers to these absentee leaders as “silent organization killers.”

It reminds me of a frog in a kettle. I’ve never tried to prove or disprove this scientific fact. But as I’ve read, if you put a frog in a kettle of water and gradually heat the kettle, the frog won’t sense the change and will eventually boil to death without trying to escape the hot water. However, if you were to put a frog in a kettle of boiling water it would immediately jump out to safety.

The damage of an absentee leader is much like that of a frog in a kettle. The damage that is being done happens slowly. Until, it’s too late and recovery is next to impossible.

How to recognize an absentee/”Frog in a Kettle” leader?

  • They enjoy the privileges and perks of leadership
  • They avoid meaningful involvement with their team
  • They don’t do anything (good or bad) to attract attention
  • They don’t provide constructive criticism
  • They don’t recognize employee achievements
  • They don’t provide clear direction

While leaders and managers who are on the top of the employee complaint list need to be addressed, so too do the absentee leaders. Letting them slide because they tend to fly under the radar is like putting a frog in a kettle and gradually turning up the heat. Eventually, the water is going to boil and you won’t be able to recover from the consequences.

If you are a leader, it’s prudent to reflect frequently about your own leadership. What’s the last specific meaningful involvement you had with your team? When was the last time you provided constructive criticism? When was the last time you recognized employee achievements? Has your effort not to micromanage actually morphed into a lack of clear direction? Are you enjoying the privileges and perks of leadership just a tad too much (that special parking spot, your healthy expense account, the club membership, etc.)?

Absentee leaders – the most common type of incompetent leader – like a frog in a kettle.