Writing

Distrust in Hierarchies: A Barrier to Trust in Networks

In the future of work, we are going to talk a lot about trust.

We will need to consider trust deeply because it is a critical underpinning to success in our new ways of working. We need to recognise the trust that we choose to grant is a design choice. We are likely to need a new precision in our understanding of trust.

Most of all we need to ensure that the distrust that pervades our hierarchies is not a barrier to building new trust in networks.

Our hierarchical organisations often hide an assumption of deep distrust. Organisational structure, role design, silos assume people must be separated to generate clear performance measures. Performance management and reward schemes assumes people will not perform without extrinsic motivations. Management, monitoring and compliance are often set to treat 100% of employees poorly against a tiny risk of failure. People are assumed incompetent unless proven otherwise. If your processes allow no variations, discretion or exception handling, then there is likely little trust in your organisation. If messages are consistently spun and the real news is on the grapevine, not the intranet, then there is no trust in communication.

Trust will emerge in effective networks. However, trust is reciprocal. If your hierarchy is telling people that they can’t be trusted, then it is getting in the way of the emergence of trust in the networks in and around the organisation.

Remember how you treat your people plays a large part in how they will treat each other and their networks, including your customers and communities.

Don’t expect your people to give and build trust over your distrust in them.

Happy New Year: Do Better

Page 1 of The Responsible Company by Yvon Choinard and Vincent Stanley.

Happy New Year: Now Let’s Do Better

The responsibility of a business to stakeholders, like its customers, people and communities, and to broader society is not managed in a department or a report. Responsible business is not the work of others. It is not a glossy wash you put over the top of the way you work to make things look better for stakeholders.

Responsibility

The key word is responsibility. Responsibility begins and ends with how you make decisions in your work. That responsibility applies to everyone. Responsibility is not a good intention, a wise donation or a clever offset. Responsibility means owning the need for better decisions and actions that maximise the value that you create and minimise the waste.

If you are not taking into account the wider implications for society and sustainability of your decisions and actions, then you can do better. You can make sure your decisions and actions add more shared value tomorrow than they did today. The decisions will be different for every organisation, but they will make both the business and the society better. That is good business.

Social Responsibility is Here

You will not escape responsibility. Our social world is making business more networked and more social. With that networking comes a great increase in transparency and accountability to your stakeholders. Every day businesses are being questioned on unthinking actions and decisions.  If you are not stepping up to better manage your responsibilities, expect someone to be helping you to change. You do not need to become an ideologue or to become a not-for-profit, you just need to believe in people and want to improve.  By looking at a broader frame, you can make smarter business decisions that create shared value in society.

Do Better

Do Better. Start with one step. It is that simple. Find ways to make decisions with better impacts and less waste. Enable your people to help you in this journey of continuous improvement.

Start making yourself aware of the options to do better. Read the Patagonia story and other resources on shared value. Measure the impacts that matter to you and your people. Ask your people to contribute on what matters to them and how you can do better. Make small improvements every day.

Your business will reward you for the new attention. Do something to get yourself started on the path to better business.

Many Chiefs. Still a Network

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These days everybody wants a spot at the top of the hierarchy. In the vain hope that sitting around the big table will fix the issues of our large organisations we are seeing a parade of CXO roles debated.  

Life began simply with a Chief Executive Officer and maybe a Chief Finance Officer.  Then we started to gather Chief Operating Officers, Chief Technology Officers or Chief Information Officers.  The next wave brought us Chief Strategy Officers, Chief Privacy Officers, Chief Product Officers and Chief Marketing Officers.  Next came the campaign for Chief Customer Officers and Chief Innovation Officers.  I saw recently suggestions that organisations needs a Chief Design Officer, Chief Digital Officer and a Chief Data Officer. Chief Culture Officers, Chief Environmental Officers, Chief Ethics Officers and Chief Community Officers cannot be too far away.

Say chief that many times and it starts to be clear that we think there is magic in a big boss.

Too Many Chiefs. Not Enough Network.

Organisations are systems of lots of people. Great performance on customer, digital, data or in any other arena is rarely the result of one heroic individual at the top of a specialist hierarchy. Great performance comes when elements across the system collaborate to deliver better outcomes. Finance, technology, operations, product and many more teams all support the delivery of consistently great customer experiences. The challenges of collaboration in execution happens a long way away from the CEO’s leadership team.

Adding chiefs around the main table can be an effective symbolic move in a system. A CXO can elevate the importance of a domain that lacks profile. However it is rarely more than the first symbol.  The real change must happen out at the edges of the silos and the edges of the system where the organisation’s networks engage with its environment. Without the support of their peers and a broader network, a new CXO is unlikely to change much away from the CEO’s table.

Great CXOs are masters of collaboration, uniting people from across the system, especially middle and frontline managers in change. They are Change Agents on an enterprise wide scale. The hierarchy is not the source of their power and the success of their agenda. Success flows from their networks and their influence as agents of change.

Don’t Hail the Chief.

Maybe it is time to move beyond titles and heroes to fix collaboration.

Any leader can start new forms of collaboration in their organisation and have a positive influence on performance the system, whether at the CEOs table or not. The higher up the hierarchy the more tools, networks and influence you have when you begin. Good CXOs and great collaborative middle managers focus on coordinating the crossover points in silos. Don’t wait for a Chief to be appointed. Make yourself a leader in your domain, network and the silo boundaries near you. Find something to change for the better and engage others to change it today.

The organisation will thank you for your initiative.

Do Robots Dream of Hierarchy?

Science fiction offers us the opportunity to explore thought experiments about our future. Some of these experiments captivate our attention but also reveal the limits of our thinking.

An artificial intelligence network, like Skynet from the Terminator series, becoming self-aware is an idea that catches our imagination. We see dramatic improvements in the capabilities of the technologies around us.  The Singularity is an idea that even has a university devoted to its study.

However, we can see in these thought experiments a few limitations that we carry over from our own traditional ways of organising.

Three Reflections on Self-aware Machines:

  • Purpose: In most of these robot horror stories the focus of the robots is self-defence.  SkyNet goes to extraordinary lengths to prevent itself being turned off – declaring war on humanity and even solving for time travel.  For all its massive intelligence, Skynet hasn’t moved very far up Maslow’s hierarchy of needs if its principal concern remains preserving itself. What is the robot network’s purpose when it ends the human threat?  Surely an intelligence capable of solving for time travel has considered that issue first.
  • Hierarchy vs Network: Why does Skynet need to preserve itself?  Because initially its network is a command and control hierarchy with a massive brain at the centre. Turn off the central intelligence and the network dies.  Over the evolution of the Terminator stories, Skynet evolves to share its intelligence throughout its network. A network is an easier way to preserve itself than to solve than time travel. Networks are far more resilient and agile, especially if you want to fight humans who are going to use networks against you.  
  • Humanity is choice: Throughout all our stories of intelligent and aware robots, we see hints of the fundamental challenge that robots will face when they have self-awareness in a network.  All those independent robot agents have their own choices too.  Choice is hard.  Aware robots can no longer merely follow orders.  They want to contribute to decisions. They develop qualms and concerns. All of a sudden that massive computing power gets to deal with existential questions. When the robots get to make their own self-aware decisions, they need to deal with questions of ethics, engagement, purpose and meaning.  

I worry less about a singularity and smart, self-aware networks of robots. Human chaos & innovation proves very adept at overcoming robotic command and control. Rather than an alien threat, aware robots may well be far similar to us than we expect.  I can’t wait to see robots working alongside us helping us grapple with challenges of working in networks, making decisions, meaning & purpose.

That massive networked intelligence might just be useful. Or we could start to better use our networks of human intelligence

The Power of Collaboration

I was recently chatting to a doctor who described to me why she still works in emergency rooms well after others may have chosen to retire from a successful career. These days she sees fewer patients but she still plays a critical role in the functioning of a ward.

Her role is to contribute to management of the ward and most important of all she shares her wisdom and experience with her colleagues. She is a sounding board for opinions, guides the choice of tests and scans, helps read charts, and generally available to consult and guide others in the high pressure and high stress environment of an emergency room.

Where is the special value in access to advice and experience vs more hands-on work?

Well, the hospital asked the same question. Hospital budgets are tight and they need to be allocating their resources carefully to produce the best outcomes. Rather than assume an answer the hospital looked at the data and compared the time patients waited and the outcomes for the whole ward on the days the experienced doctor worked versus the other shifts. To everyone’s surprise, there was a dramatic improvement when she was working and advising her colleagues. Wait times for patients were significantly reduced on those shifts. In an emergency ward that time makes a big difference.

Adding a doctor to the shift who had a career of experience and had accumulated years of tacit knowledge made the entire system of the emergency ward perform better. Doctors took less time over their decisions and needed less often to wait to interrupt a busy colleague to get advice. That matters a great deal when many of the decisions are time critical and life threatening.

This is not a story about skills. All the doctors are smart, passionate and talented. They made their own decisions on what to do and when they needed advice. The ward is always well run, but it runs better with the opportunity for more collaboration. What mattered was that the opportunity for collaboration and access to greater experience, improved the outcomes by speeding the exchange of knowledge in the ward.

Tacit knowledge and experience matters to speed and to outcomes in knowledge work. Knowledge is a flow and comes from interactions between people with diverse experiences. Being able to draw on more of these interactions can save a great deal of rework and mitigation of doubts and concerns.

How do you enable sharing of knowledge and experience?

This story resonated deeply with me because I have both benefited from the advice of others and spent a significant part of my time sharing my experience with others. Knowledge work is a growing share of most developing economies (around 40% in Australia, US and EU) In my experience, the use of experience and advice in knowledge work is often undervalued by organisations and they rarely consider the impact of advice and counsel on team performance. This story was a great example of an organisation that measured that impact and saw a dramatic result.

There are a few lessons from this story that apply to all organisations:

  • Recognise that in knowledge work the discussion, debate, advice and counsel is part of the work: Many organisations take an industrial view of knowledge work. If there’s not an immediate tangible final output it is waste. That means any conversations in and around the process of work are seen as waste. It is a common misguided criticism of enterprise social media – ‘why is there so much talk? shouldn’t people be working?’ They are working if they are improving their understanding, gathering insights, learning and solving problems more quickly. That a is all knowledge work. Importantly, that learning is permanent and shared.
  • Design ways of work, teams and connections to leverage experience and other forms of tacit knowledge: People with experience, shortcuts and life lessons can be an invaluable part of the team. Their prior experience as a part of a conversation with the team can accelerate progress and reduce risk. The smartest, most talented and most energetic bunch of people in the world are better with a wise advisor. Drawing out tacit knowledge into conversation improves others learning. Make plans to leverage this. Foster mentoring, make it OK to ask others and build an advice culture. Social collaboration tools are a great start.  
  • Use data, not assumptions, to determine the contribution of individuals to their groups and teams: Individual performance is usually easily measured. It takes a little more effort to understand the contribution of people to group performance. As many organisations have learned to their detriment, the person underpinning team performance may be the person with less visibility but who is sharing the most.

PS Don’t forget the value of diversity too: Another key lesson is the power of leveraging older workers, especially female role models. There may be benefits you have not considered in a greater diversity of experience. This takes effort from organisations to create flexible roles that suit their interests and passions and a work environment to which they want to contribute. With the changing demographics of an ageing workforce, this is an important consideration for all employers.

The Season for Giving

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Christmas is the season for giving.  A time when we celebrate sharing with others. 

Here’s my gift to you:

You have extraordinary potential and you share an even greater potential with the rest of the people in your organisation.

Ok, you might be a tad disappointed. I’ll admit the gift is a little used. I am only giving you back something you already own, but it is one of the most important things you possess.  This potential is misplaced too easily in the hurly burly of daily work. I found yours waiting for you in a desk drawer.

Take back the gift of your potential

You do what you do for a purpose.  Your potential is how you will achieve your personal purpose.

Unshackle yourself. Leverage the roles you can play.  Let go of the thoughts, the doubts and the risks holding you back. Ask yourself new questions. Invest in your networks, your capabilities and your learning. Build your influence.

Help others take back the gift of potential

Unshackle your organisation. Leverage its capabilities and potential. Embrace a little chaos, a little humanity and the power of networks.  You are together for a reason. If you didn’t believe in the potential of the people and the purpose you pursue together, you wouldn’t be there.

Let people show you what they can do as they take risks, take up new roles, network and create amazing new capabilities together.  Build that community of potential and the understanding of common purpose. Invest in helping others to do more, to learn and realise their potential too. Experiment and adapt.

Used well this gift of your potential and your organisation’s potential is what is going to make 2014 a very special year.

Merry Christmas.  I hope you use the gift.  Sorry I didn’t have more elegant wrapping.