Relationship Sabotage

Trust is a reciprocal commodity in the future of work. Trust powers collaboration and facilitates exchange in networks. Trust is also reciprocal. Make sure your levels of trust of others are not sabotaging your relationships.

Part of any decision to trust another is an assessment of how they treat us. Trust is reciprocal. We can make finely tuned assessments on how much trust others put in us by simply examining how we interact, how well their goals are aligned to ours and how much reciprocity of trust we experience.

If you start from the assumption that your employees and customers are incipient criminals, it will show itself in your policies and processes. The levels of security and inconvenience that result will be a constant reminder to customers and employees that you don’t trust them.  Even if your levels of protection are in line with your industry peers, you will still bear the consequences of that action in the way your customers and your employees interact with you. Transactions will be more costly, loyalty will be lower and complaints & errors will be harder to resolve because you won’t have the benefit of trust to fall back on.

Are your levels of trust set for the real risks and opportunities in your relationships? Make sure you are not penalising everyone for one individual’s error. Remember if you distrust employees that will flow on to customers and if you distrust customers you employees will experience the consequences. Your customer and employee experience are one experience.

Too many organisations with persistent challenges in lifting engagement or customer advocacy continue to sabotage their key relationship. Make sure you are different. Trust a little more.

Confusion is the absence of Design

Yesterday I had to deal with an unnecessarily confusing customer experience.  All I wanted to do was pay for my parking.  It was a great reminder that in the absence of design you generate confusion.

Here are some observations on what happens when you forget to design:

  • The insides of this parking machine would fit in a shoebox, but it’s a big machine.  That means that it is actually very hard to keep all the machine in sight at one time. When the interface is confusing, having to scan the whole thing repeatedly to find your next step is hard work.
  • The screen draws your attention but it is not where the action happens. In fact the screen, tells you little of interest and mostly distracts from where the action happens.
  • Every function has a light or a sign which adds to the confusion. The signs look like later additions to improve the usability but the signage is neither consistent nor supports the process the machine requires users to follow.  The range of different coloured lights is distracting.
  • The blue P lit up is prominent, but purely decorative. 
  • The red laser light top left is for museum membership card discounts, a second process step for a small proportion of users, but it is by far the brightest light.
  • The slot for inserting a ticket to pay, the first process step, is a solid yellow light at bottom left. This is the last place anyone looks, especially when the screen shows the slot and you assume that the image shown must be near the screen.
  • The screen is below normal eye height. As there is no shade on the screen, the lights above make it unreadable unless you crouch.  This matters if you want to know what you need to pay or want a receipt and need to push a button below the screen to confirm your request.
  • The paypass reader doesn’t work though it appears to all intents that it does with a shining light. After several failed attempts, I realised that I needed to insert my card.

The odd functional arrangement and the lights create a sense that four separate divisions of Skidata all said ‘we want a bright flashing light and a sign. We want to be prominent’. Politics and engineering determined where the various bits went on the machine rather than any designed order of a customer experience.

For a simple process this is an unnecessarily confusing customer experience. That says to me Skidata and those who installed the machine weren’t designing a customer experience, they just installed a parking payment machine.

Value creation in networks

The old way industrial of creating value is well understood and commonly implemented. Develop a unique proposition with a discrete market. Create a simple linear process to deliver the proposition by turning inputs into outputs with value creation at each carefully delineated step. Maximise control at the choke points in the process to maximise returns. Manage efficiency and throughput of the process to minimise waste. Reduce risk. As easy as that sounds we have spent over 200 years perfecting the process and still have much to learn.

We know far less about creating value in the massively scaled digital networks that we face today. Mostly we know what doesn’t work. Failure is accelerating. A focus on efficiency will kill a company competing with disruptive competitors. Networks specialise in routing around control points. Parallel disaggregated processes disrupt the linear, particularly if relentlessly focused on key opportunities to create value. Transparency across the process and rapid exchange of information changes the organisation-customer-employers-supplier- community dynamic in radical ways.

Value creation in networks to date has defaulted to the nearest analogies of the industrial model. Build a platform with a unique global scale that you can control. Strip the value creating process back to customer acquisition and platform development. Control advertising revenues ( or less commonly enterprise sales) as the principal form of monetisation. Experiment and acquire relentlessly. Be transparent internally and leverage networked models of organisation internally, but behave like industrial peers to the external market, except for carefully structured communities of co-creation and innovation.

The latest clues in the Cluetrain Manifesto are a reminder that this model is not guaranteed. At the same time, the lessons of the last Dotcom bust documented in Seely-Brown and Duguid’s ‘The Social Life of Information’ are a reminder that we have not yet reached our disaggregated and disinter mediated ‘markets are conversations’ utopia.

What is clear is that we need new ways of working. We will build new practices using our new global networks and relationships to exchange what works and to discard what does not. The key to success will be effectiveness. Effective organisations will mobilise their potential, connections and capabilities to pursue the ever-changing network opportunities, to learn together with their customers and community to realise a meaningful purpose. Embracing the new network economy and networked ways of working is fundamental for any organisation seeking to make this shift. Any organisation that takes this leap is on the path to becoming a Responsive Organisation.

Value has never been created around a board table. That is where value and the resources to create value have historically been acquired or allocated, often poorly. Value has never been created by data alone. People transform the data into hypotheses, insight, decisions and actions. Value has always been created by that action in networks, even if those networks are the crippled relationships of hierarchy. Those are network of people, not data. The organisations that reap the potential will be led by Network Navigators who can help their organisations through the journey.

The network must do the work to create value led by Network Navigators. As Esko Kilpi put it ‘the time for reductionism as a sense making mechanism is over’. The way forward will emerge through practice, interaction and learning in the network. We will need Network Navigators to help us to work on the whole system.

Harold Jarche reminds us ‘the work is learning and learning is the work’. We have entirely new systems and practices of organisations to develop, to test and to share. Like our efforts to date we will begin with fixes and variants to the systems we have. Over time we will make more new sense of the future of work. We will need to learn to trust and enable people to leverage their networks and experiment. Then we have the journey of change advocacy to spread the successful practices. The widespread use of enterprise social networks is just one such step and even it has not addressed the potential of adoption, let alone value.

The fun of value creation in networks has only just begun. Our job is to make that fun a very human and purposeful experience.

Leadership in Transformation

A common topic of debate in the Responsive Organization movement is whether an organization can become responsive or it must be born that way.

Undoubtedly many of the leading case studies of future of work organizations are organizations created or rebirthed from near death by charismatic founders. Some use this as evidence that the elements of a responsive organization must be present from the beginning. In a previous post, I pointed out that we cannot rely on transparency alone to make change occur for us. The power structures in a traditional organisation will prevent most radical change.

I am unambiguously in the optimist camp. I am not alone and the company in the optimist camp inspires me. I have seen organizations change enough to not recognise their former selves. Change to more responsive ways of working is possible. The question is how.

What gets in the way

Chris Argyris’ classic article Teaching Smart People to Learn is a rich source of observations of what gets in the way of a Responsive Organization transformation.  In particular, Argyris notes that:

… There seems to be a universal human tendency to design one’s actions consistently according to four basic values:

1. To remain in unilateral control;

2. To maximize “winning” and minimize “losing”;

3. To suppress negative feelings; and

4. To be as “rational” as possible—by which people mean defining clear objectives and evaluating their behavior in terms of whether or not they have achieved them.

The purpose of all these values is to avoid embarrassment or threat, feeling vulnerable or incompetent. In this respect, the master program that most people use is profoundly defensive. Defensive reasoning encourages individuals to keep private the premises, inferences, and conclusions that shape their behavior and to avoid testing them in a truly independent, objective fashion.

These hidden values in most organisation get in the way of the transparency-led transformation that many hope to see. The Responsive Organization poses a threat to control, a threat of losing and negative feelings. Importantly the delegation of authority in a Responsive Organization may cause people anxiety as to objectives and rationale for action.

The role of leadership is to act as a counterbalance these natural human values and shift the behaviours to that of a Responsive Organization. We need to create rationales for action more powerful than embarrassment. We need to create community to generate trust, support and connection. We need to enable learning through conflict and experimentation. 

Purpose:

Leaders must create a strong rationale for the transformation. In cases of crisis, startup or near death of organizations, this rationale can often be imposed by a charismatic individual. The external circumstances enable a threat based narrative to bind people together in a defensive rationale for change.

However, most organizations are successful to their own terms. As Argyris notes, we want to feel successful even if our results don’t pass external muster.  

Leaders need to leverage two elements to create a strong rationale for change in this context:  

  • The Purpose of the organization: a purpose is the ultimate rationale for why people come together in an endeavour. It defines the common impact the group of people wish to have on the world.  As a higher agenda, it is the perfect rationale for change for even the most successful organisations.  Purpose is a mastery quest. Very few organizations have the capability to completely fulfil their purpose. They can however strive to better realise it.
  • External orientation: No closed system will find a rationale for change. External orientation is where organizations find the challenges and opportunities that define the purpose into specific improvement opportunities. Leaders need to relentlessly focus the organization on its customers and community to see transparently the challenges and opportunities that exist for change. Well defined external impacts in this community will be what can drive the autonomy of teams in the organization.  Using customer and community data in line with Purpose, also enables change agents to overcome embarrassment-based resistance in the organization.

Community:

Individuals will need support to take on the risks of a Responsive Organization. The role of leaders is to create the sense of community that will support an individual through that change. At the heart of that community will be engagement with others and a growing sense of mutual trust.  Leaders set the tone for any community. They must also work hard to reinforce these key community behaviours

  • Engagement: Engagement begins with transparency and connection. I cannot truly care about the others in my community until I know who they are and understand their purposes, concerns and circumstances. Leaders need to create the conditions to enable people to be more social, to connect, to solve and to share their work challenges together.
  • Trust: Engagement will build trust as it builds understanding. Transparency will reinforce trust. However, leaders need to take on the role of fostering responsibility and accountability as engines of growing trust in the organization.  When people see that individuals and teams are accountable for driving change then they will have greater trust in the change agenda.

Learning:

This post is deliberately not titled like a listicle e.g. ’The 3 or 6 things to transform an organisation’. Even a basic familiarity with change highlights that formulas will work only up to a point. Leadership needs to be adaptive to enable any system to change in a sustainable way.

To be true to their purpose and stakeholders, to leverage the potential of their community, each organization will take an unique path through change.  The role of leaders is facilitate the individual and organizational learning required:

  • Experimentation: creating a culture of rapid iteration to address challenges and opportunities will accelerate the cycle of learning in the organization. Leaders must help this experimentation culture to overcome the resistance identified by Argyris and also to spread and have a wider influence in the organization. Lessons learned must become new truths which will take a sense-making role for leaders in the wider organization and mean leaders must champion new ways of working when they arise, whatever the personal costs.
  • Conflict: The biggest reason that organizational transformations fail is an unwillingness of the leadership of the organisation to allow uncertainty and conflict. Conflict will happen. The uncertainty associated with conflict is inevitable. Efforts to suppress this will either undermine transparency, the rationale for change, engagement or learning. Failure to embrace conflict takes many names: politeness, bureaucracy, politics, corporate speak, history, culture, etc. Failure to embrace conflict is an unwillingness to learn and improve. There will always be resistance when change comes and it must be addressed. Leaders need to create and sustain the right kinds of constructive conflict – driven by purpose, based in facts from an external orientation & experimentation, mediated through an engaged community. 

Change is Coming. Lead.

I have seen the potential of purpose, external orientation, engagement, trust experimentation and conflict to drive change. Supported by leadership these are the elements of each organization’s transformation. These elements are critical to a Responsive Organization.

Throughout this post I have referred to leaders and leadership. This need not be hierarchical leadership. Clearly it helps if leadership and power are aligned in an organization in reinforcing the need for change. However, the changes described above are not capable of being implemented by top-down edicts. These changes must come as individuals and groups discover their power and are influenced as a result, This kind of leadership relies on influence and can begin bottom up or even from the middle management so often scorned in organizations.

Change is possible. Change is coming. Smart people can learn. Your people and your organisation can better realise their potential and their purpose. A Responsive Organization transformation will occur if you are prepared to lead the change.

Lead.

One minute video on How to Build a Responsive Organization

The Slides used in this video are available here: http://www.slideshare.net/simon_g_terry/building-the-responsive-organization

Credits:

Hacked from The Responsive Organization slideshare: http://www.slideshare.net/responsiveorg/the-responsive-organisation-a-framework-for-changing-how-your-organisation-works

Book: http://pixabay.com/en/open-book-page-pages-books-163975/

Music: B-roll by Kevin Macleod http://incompetech.com/music/royalty-free/

A one-minute video on The Responsive Organisation. We need to lead the changes in the future of work to make our organisations more responsive to customers and community and to realise human potential.

The video is hacked from The Responsive Org slide deck. Why don’t you hack your own?  

Additional credits:

Dinosaur: http://pixabay.com/en/dinosaur-allosaurus-skeleton-bone-60588/

S&P 500 Charthttp://www.technologyreview.com/view/519226/technology-is-wiping-out-companies-faster-than-ever/

Supermarket aisle: http://commons.wikimedia.org/wiki/File:Supermercato_vuoto.jpg

No Frills Cumbia – Kevin Macleod: http://incompetech.com/music/royalty-free/

From Safety to Safer: Middle Management’s Dangerous Transition

image

Safety is a common conversation, explicitly or implicitly, in the halls of middle management. Change agents among the ranks of middle managers experience conversations about the need for safety and the dangers of change on a daily basis. Safety is the focus because there are many for whom safety means the preservation of status, roles and resources. We need to move from safety to making our organisations safer for a world of rapid networked change.

The Wrong Kind of Safety

Ask enough middle managers and you will find that there are definitions of safety which involve elements of the following:

  • Ownership: a clearly defined area of responsibility and resources that can be controlled tightly
  • Knowledge is Power: a set of skills, capabilities or knowledge that is closely guarded and relatively unique in the organisation
  • Hierarchical Power: relationships of dependence with management above dependent on the department’s functional expertise and the team below dependent on sponsorship of their careers in the domain
  • Comfortable Accountabilities: Accountabilities should be designed with reference to achievable measures, preferably internal measures related to the discipline.
  • Limited Stakeholders: A few internal stakeholders often from similar functions with similar ideas and ideally few customer or community stakeholders who may introduce different perspectives and diverse issues. 
  • Few Dependencies: Trusting others reduces control and introduces risks, so collaboration and cooperation are avoided by controlling as much of processes and projects as possible 
  • Limited Transparency:  With utmost politeness, share little and participate little in the concerns of the rest of the organisation to preserve the comfort of your domain.
  • Stability: Ensure there is minimum change in business environment, even if this includes refusing to acknowledge market changes.
  • Minimum Risk: Avoid any change that offers risk. Why jeopardise an environment under close control?

The core of these definitions of safety is the idea that the threats to middle managers are internal. The biggest threats comes from other managers or senior management. The external world is not a cause for concern. Safety comes from building an walled fortress within the organisation and focusing internally.

Unsafe at any Speed

In the rapid change of our current business environment, the greatest risk to middle management is not internal. The need for change, the pace of change and its impacts are being driven in the networks around the organisation. Middle management has much more to fear from changing consumer and social behaviour, disruptive technologies and networked ways of working. 

The classic middle management definition of safety makes nobody safer. By turning inward, by resisting accountabilities, stretch and change, these managers guarantee that their organisations are exposed to much more wrenching changes than need be the case. Each of these elements of safety stand in the way of an open, agile and responsive organisation. When middle managers choose to act as barriers to change, the forces of change risk sweeping whole layers and organisations of managers away.

By focusing on a misguided view of individual safety, these managers make the organisation more unsafe as a collective.

Leaders who do not challenge a culture of safety in their organisation are putting their whole organisation at risk. Leaders need to be working to make the organisation more responsive. The safer organisation adapts.

From Safety to Safer

Leaders, change agents and forward thinking middle managers need to disrupt this misguided culture of safety in organisations. The conversation must not be about safety but how to make the organisation safer through adaption. This disruption must involve conflict with traditional views. However, that disruption will help the organisation adapt to a safer culture that opens the organisation up to its internal and external networks.

Here are some simple steps that any leader in an organisation can take to drive a responsive culture:

  • Push for external accountabilities: Raise the bar on performance. Measure customer outcomes. Consider end-to-end process performance to cut across siloed walls. Look externally for measures of success (and not just in the same industry).
  • Bring in external stakeholders: If customers, community, employees and other partners are not stakeholders in the organisations decisions then gather their perspectives and bring them into discussions across the organisation.  There is enormous power in real external views of the organisation, its purposes and performance.
  • Network the organisation: Focus on increasing the flow of information and knowledge within the organisation. Demonstrate the value of collaboration and cooperation in greater efficiency, innovation and engagement in the way work is done. Foster diverse perspectives on the way forward. Most importantly of all delegate outcomes and enable people to make change to adapt without reference to the hierarchy.
  • Experiment: The new definition of safety needs to be a well-run experiment to improve performance. The absence of well-run experiments is a sign of major concern. If you are not testing the way forward in changing times, then you are taking big risks.

You don’t need to be CEO to drive these changes to make a more responsive organisation. (Undoubtedly, it helps). You will need to effectively manage your role & influence in the organisation. However, effective change agents and middle managers can begin to ask the questions and start new conversations leveraging external perspectives. Most importantly of all they can build a network of others frustrated by the culture of safety and work together for change.

From Safety to Safer: Middle Management’s Dangerous Transition

image

Safety is a common conversation, explicitly or implicitly, in the halls of middle management. Change agents among the ranks of middle managers experience conversations about the need for safety and the dangers of change on a daily basis. Safety is the focus because there are many for whom safety means the preservation of status, roles and resources. We need to move from safety to making our organisations safer for a world of rapid networked change.

The Wrong Kind of Safety

Ask enough middle managers and you will find that there are definitions of safety which involve elements of the following:

  • Ownership: a clearly defined area of responsibility and resources that can be controlled tightly
  • Knowledge is Power: a set of skills, capabilities or knowledge that is closely guarded and relatively unique in the organisation
  • Hierarchical Power: relationships of dependence with management above dependent on the department’s functional expertise and the team below dependent on sponsorship of their careers in the domain
  • Comfortable Accountabilities: Accountabilities should be designed with reference to achievable measures, preferably internal measures related to the discipline.
  • Limited Stakeholders: A few internal stakeholders often from similar functions with similar ideas and ideally few customer or community stakeholders who may introduce different perspectives and diverse issues. 
  • Few Dependencies: Trusting others reduces control and introduces risks, so collaboration and cooperation are avoided by controlling as much of processes and projects as possible 
  • Limited Transparency:  With utmost politeness, share little and participate little in the concerns of the rest of the organisation to preserve the comfort of your domain.
  • Stability: Ensure there is minimum change in business environment, even if this includes refusing to acknowledge market changes.
  • Minimum Risk: Avoid any change that offers risk. Why jeopardise an environment under close control?

The core of these definitions of safety is the idea that the threats to middle managers are internal. The biggest threats comes from other managers or senior management. The external world is not a cause for concern. Safety comes from building an walled fortress within the organisation and focusing internally.

Unsafe at any Speed

In the rapid change of our current business environment, the greatest risk to middle management is not internal. The need for change, the pace of change and its impacts are being driven in the networks around the organisation. Middle management has much more to fear from changing consumer and social behaviour, disruptive technologies and networked ways of working. 

The classic middle management definition of safety makes nobody safer. By turning inward, by resisting accountabilities, stretch and change, these managers guarantee that their organisations are exposed to much more wrenching changes than need be the case. Each of these elements of safety stand in the way of an open, agile and responsive organisation. When middle managers choose to act as barriers to change, the forces of change risk sweeping whole layers and organisations of managers away.

By focusing on a misguided view of individual safety, these managers make the organisation more unsafe as a collective.

Leaders who do not challenge a culture of safety in their organisation are putting their whole organisation at risk. Leaders need to be working to make the organisation more responsive. The safer organisation adapts.

From Safety to Safer

Leaders, change agents and forward thinking middle managers need to disrupt this misguided culture of safety in organisations. The conversation must not be about safety but how to make the organisation safer through adaption. This disruption must involve conflict with traditional views. However, that disruption will help the organisation adapt to a safer culture that opens the organisation up to its internal and external networks.

Here are some simple steps that any leader in an organisation can take to drive a responsive culture:

  • Push for external accountabilities: Raise the bar on performance. Measure customer outcomes. Consider end-to-end process performance to cut across siloed walls. Look externally for measures of success (and not just in the same industry).
  • Bring in external stakeholders: If customers, community, employees and other partners are not stakeholders in the organisations decisions then gather their perspectives and bring them into discussions across the organisation.  There is enormous power in real external views of the organisation, its purposes and performance.
  • Network the organisation: Focus on increasing the flow of information and knowledge within the organisation. Demonstrate the value of collaboration and cooperation in greater efficiency, innovation and engagement in the way work is done. Foster diverse perspectives on the way forward. Most importantly of all delegate outcomes and enable people to make change to adapt without reference to the hierarchy.
  • Experiment: The new definition of safety needs to be a well-run experiment to improve performance. The absence of well-run experiments is a sign of major concern. If you are not testing the way forward in changing times, then you are taking big risks.

You don’t need to be CEO to drive these changes to make a more responsive organisation. (Undoubtedly, it helps). You will need to effectively manage your role & influence in the organisation. However, effective change agents and middle managers can begin to ask the questions and start new conversations leveraging external perspectives. Most importantly of all they can build a network of others frustrated by the culture of safety and work together for change.

What Interests My Community Fascinates Me

Living and working in a hierarchy can shape your attention to the world. We all need to be fascinated less by power inside our organisations. We need to be fascinated more by customers and the community outside the organisation.

A common piece of advice in large organisations is expressed this way:

‘What interests my boss, fascinates me.’

The advice highlights that your boss often has a major role in perceptions of your performance and career opportunities. The suggestion is that the path of success is to be ever more conscientious on what matters to your boss. Managing their interests will deliver rewards from their greater hierarchical power.

Except that is terrible advice in almost all circumstances:

  • your boss does not determine real value: value is determined by the network of customers and the community
  • your boss does not determine change: change is driven by collaboration across silos internally and decisions of customers and community externally
  • unless you are great at working aloud, your boss rarely has your better context of what is going on in your role and lacks your networks 
  • many bosses are reactive worrying about the last big issue or the last thing their boss mentioned
  • many bosses are fickle changing their mind on what matters -some even in your performance appraisal
  • the most enduring factor in your performance and careers is the outcomes you deliver not to what or to whom you paid attention. 
  • ‘But you told us to…’ never saves anyone

Being fascinated by every whim of your boss might build a great relationship between you two. (Warning: It might be counterproductive too) However, it will not drive real business performance.

So next time someone asks you to worry about what your boss thinks, don’t. Look outside the organisation in your networks to find what matters. Make your mantra:

‘What interests my customers and community, fascinates me’

Your boss is just one voice in your network and probably the least valuable one.

Your Organisation. Your Movement.

One of the busiest posts on this blog is How to Start a Change Movement. People are increasingly recognising and preparing to adjust to the increasing pace of change in the world.

However, there is a bigger issue that is also surfaces when we reflect on the need for people to collaborate to bring about change:

Our organisations only exist to drive change.

Organisations exist to fulfil a purpose, to make a difference, to better meet a need, to help customers and communities and to make more from less. These are all change.

There is no successful product or service that does not deliver change for the customer. The bigger the changes created for customers and the community the more likely the organisation will succeed.

We can lose the change focus of our organisations in the complexity of our goals, processes, structures, budgets and day-to-day challenges. We can assume that doing our job, doing the same things and surviving to the weekend is the point of the organisation.

Every organisation must be a change movement. We need to use the elements of great change movements to make our organisations more responsive. Without continuously creating some better form of change for its customers and community, an organisation quickly loses its reason to exist.

Next time someone suggests that an organisation doesn’t need to change, ask them to reflect on what it is that the organisation does in the world.