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Culture Change

June 22nd, 2005

In prepping for a presentation I am supposed to give next year, I started thinking about my approach to consulting within large orgs, culture, and manager behavior. So far:

Much has been written corporate cultures and how to change them. There are theories about structural factors (flat or vertical? team-based or individually driven?), and leadership (heroic or quiet, analytical or inspirational), to name just two. And yet, there are always plenty of examples of organizations which attempt to model themselves on these concepts and whose cultures bear no resemblance to what the model proposes.

This is because the culture of an organization is almost exclusively a function of the behaviors of the employees and stakeholders in that organization. These models do create one of many potential pre-requisites for a successful culture, but then they fail. Why? Because they do not change a significant enough percentage of the behaviors in the organization. Most practitioners would agree that even with the best corporate/organizational roll-out of “a new and innovative change program”, if no one changes their day to day behaviors, the “program” will fail (and reduce the chances that the next one will succeed.) Conversely, your employees and stakeholders will know - and perhaps more importantly say out loud - that the culture has changed when people change their behaviors.

This makes the goal of the change agent obvious. THE ONLY WAY to change an organization’s culture is by changing the behaviors of the employees in the organization.

Therefore, managers need a toolbox of skills and activities that will specifically change the behaviors of their teams, whether those “managers are executive leaders, middle managers, or first line supervisors.

More soon…

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Culture Two

June 22nd, 2005

Despite manifold examples of failed corporate culture change efforts, there is an example I learned years ago that resonates with me.

In the 70’s, the US Army was having a terribly difficult time with race relations in Germany. We had forces stationed there, and there were many black soldiers, and significant black-white tensions. While I don’ t know what the experts would/did say regarding the reasons, the fact is, there were many incidents of assault and some homicides relating to race among soldiers. The Army was QUITE concerned, obviously - this was the Cold War, and our forces in Germany played a crucial role in helping Europe feel that Soviet bloc tanks weren’t going to come racing through the Fulda Gap and conquer Europe.

The Army did all sorts of training, helping soldiers learn about each other, and to build bridges, and to address soldiers’ root cause feelings of bigotry and hatred and ignorance. LOTS of classes, awareness sessions, sensitivity work. Lots of Organizational Effectiveness specialists working with unit commanders, trying to communicate a different way of thinking about soldiers who were “different” than they were.

It failed miserably. Race relations did not improve appreciably. Assaults, altercations, homicides, etc. all continued. No decline.

You can argue that they didn’t do it right, that if they had done the training “better”, things would have changed. I won’t disagree, but would say that what they tried is notoriously hard, witness modern diversity training you have attended.

Leaving that debate aside, the Army knew what it had tried HAD NOT worked. So, (I believe the impetus for this was a new commander), they changed their approach. Essentially, the Army said, “we’ve tried to change the way you think. We’ve tried the hearts and minds thing. It is not working. We’re going to try something different.”

The Army said, “we may not be able to change what you’re thinking, but we sure know EXACTLY how to change your behavior.” The command in Germany instituted DRACONIAN (relative to previous standards) punishments for ANYTHING even REMOTELY related to poor race relations. Inter-rascial fights were punished SEVERELY. Verbal abuse based on race was punished with loss of rank and courts martial, though no other speech was punished so harshly. Race-related punishments were publicized and repeatedly communicated.

The message was simple: regardless of how you think, we can’t see or change that. We can, however, change waht you do. And we have made it so painful to do these things that you’ll think twice about it.

And almost overnight, the behaviors - which many had seen as the symptom to begin with, stopped.

This story is an example of my beliefs about organizational change. Feel free to knock yourself out trying to change people’s minds. About the only person who has a better than even chance of doing that is someone’s boss, and even then it takes noteworthy communication (persuasion) skills. My recommendation is to not bother with their hearts and minds.

Change their behavior. PERIOD.

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Peter Drucker Died a Week Ago

November 19th, 2005

I’m starting my blog on management and leadership now for two reasons.

First, my partner Mike Auzenne believes this will be a great way for us to capture my voluminous thoughts on leadership and management. Mike and I share a common passion for the practice of leadership in organizations and in the world.

We’re both West Pointers, so we come by our interest genuinely. We’ve seen a lot of leadership - some of it good, much of it venial - and some of it so brilliant and inspirational that we learned from it even though we were too young to reproduce it ourselves.

With Manager Tools attracting thousands of daily downloads while only being a couple of months old, Mike believes - and I agree - that it is good stewardship to provide additional ways for our community to interact about leadership. He also thinks that lots of readers will like what I have to say - no, what he said was that they will like reading what I have to say. Well, at least he’s half right.

The second reason is that Peter Drucker died a week ago. If you didn’t know Drucker, and have been surprised by the caliber of people mourning his passing, I hope you have taken a moment to read the encomiums, and I pray that you have either bought, or committed to buying, one of his books.

Peter Drucker was the most brilliant and insightful thinker and writer on management in the history of mankind.

I have two searing recollections of Drucker, though neither are personal in nature - I regret never having met him. The first was reading the primary insight in The Effective Executive (the finest managment book of all time). Drucker says that the most precious resource an executive must husband is his or her own time. He recommended keeping a log, and determining what one’s priorities really are.

I believe this may be the single most powerful guidance ever written about the practice of management. I can attest to it being a dazzling light of truth and revelation for hundreds of executives I have coached. Confronted with the evidence, many confident, self-assured leaders have broken down and admitted to being scared that everyone would someday discover that they didn’t know what they were doing.

I have been reading recently that some management theorists do not believe Drucker could ever have made tenure because he did not approach his study with the rigor necessary in today’s academy. This is preposterous enough to cause apoplexy. The insight about an executive’s time could not have been learned with all the analytics in the world. Those who would have denied him tenure prove thereby that they aren’t smart enough to have figure it out for themselves.

When I read this slur, I was reminded of a lovely anecdote told about Einstein. He and his wife were visiting Mt. Wilson observatory, and Mrs. Einstein asked about the purpose of a particularly complex piece of equipment. The guide told her that it was used to determine the shape of the universe. “Oh,” replied Mrs. Einstein, “my husband uses the back of an old envelope to work that out.”

Analytics work well to determine weighting criteria for algorithmic analysis of supply chain queuing problems. If they’re giving out tenure for that, as opposed to the timeless insight of identifying every executive’s most precious resource and showing how it can be mastered… I hope they feel secure in their sinecure.

The second time Drucker stunned me was when he wrote, “…it is the recipient who communicates. The so-called communicator, the person who emits the communication, does not communicate. He utters.”

Understanding those 21 words will immediately make you a better “communicator”by a quantum factor. In some future blog post, I will talk about those words’ ramifications in marketing.

To be clear, the reason I cite Drucker is simply homage. Nothing I write will ever approach his caliber. But I commit to you that when I am in my office, his picture hanging on my wall will remind me that I should reach for the stars - because even if I don’t get one, I won’t end up with a handful of mud, either. (Thanks, Mr. Burnett)

So, Mike Auzenne and Peter Drucker are the proximate causes of this effort. I consider them in the same class of people - they make me burn to be my best, everyday.

Mark Horstman
18 November
Fredericksburg, TX

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Server Problems!

January 11th, 2006

We’ve had some problems today with the website and wanted to give everyone a quick update …

Unfortunately, we’ve experienced some outages today as a result of server loads. Good news is that we’re getting a lot of traffic on the site; bad news is that it’s overloading the server. :-(

Bottom line, time to upgrade the servers again (3rd time!). Over the next couple of days, we’ll be migrating to our own dedicated server … so please be patient with us while we get this upgrade accomplished!

We’ve been told by our hosting provider that now that we’ve committed to upgrading (and spending more money with them), they’ll keep the website up while the migration is taking place. My fingers are crossed!

regards,
Mike

P.S. During the migration, until your DNS server gets updated with the new IP address, you may be looking at the OLD server. This should clear up within 48 hours or so.

If you’re seeing THIS, you’re looking at the NEW server … and all is good!

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Back in Business (I think!)

January 14th, 2006

As far as I can tell, everything is back up and running correctly. However, over the past 48 hours, it is possible that one or both of the following could have occurred:

  • You either registered or tried to retrieve your userid/password (you lost it and asked that it be resent) and then you didn’t get it sent to you. This harkens back to issues we had a few months ago. :-( The fix from months ago wasn’t applied to the new server until yesterday afternoon, but all should be well now.
  • You sent us an email and we didn’t get it. There was a short period of time during the transition where there may have had email issues. Now, we’re generally pretty good at returning emails, so if you sent us one within the last day or two and don’t get a response within 48 hours, please be kind and resend it.

So, all that aside, the transition went fairly well. As far as I can tell from the server logs, we haven’t lost any posts or comments. However, at this point, it is clear that there are at least a couple of listeners who haven’t had the new IP address propagated to them yet and are therefore looking at the old server. Let’s hope that gets corrected soon.

Also, thanks for the support and patience while we worked this all out. As a matter of fact, several folks offered to help with the cost of the server upgrade … and one kind listener even suggested that the community would look kindly upon putting some sort of “tip jar” on the website to help collect funds to defray the costs of hosting/etc. That touched us greatly … thank you! However, this is a labor of love. There are certainly aspects of what we do that are “revenue driven” and we may discuss those now and then, but the Manager Tools podcast is our opportunity to give back to the community in some small way. But, thank you very much for the great gesture!

Please let me know if you run into any issues with our podcasts or the site … I’ll be right on top of it!

best regards,
Mike

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iTunes Problems Resolved

January 28th, 2006

I received feedback from two listeners, Ward and Kevin, that they were having issues subscribing to Manager Tools via iTunes. After some research, it turns out that indeed iTunes version 6.0.2 has a problem accepting what should be valid XML in the RSS feed. Apple is working on fixing the problem, but in the meantime, I’ve modified our feed to work properly with iTunes 6.0.2.

So, if you’ve tried recently to subscribe via iTunes and were unable, please give it another try!

Ward and Kevin, thanks for taking the time to bring this to our attention!

best regards,
Mike

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Find Specific Shows Faster

February 4th, 2006

As we’ve grown our library of shows a bit, we’ve frequently been asked “Have you done a show on [pick your favorite topic]?” I must admit, finding shows on the site is not the most user-friendly task.

Although not a complete solution, to ease the burden a bit we’ve added an Archive Index page (located on the sidebar under the heading “Archives”). Let us know whether this helps at all.

Mike

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Developing Leaders is Simple

February 14th, 2006

Recently I was asked by a university leadership professor about training corporate leaders the way the military trains its leaders. Specifically, he wanted a review of books that might help him with how the military does it. As I was reviewing the books, I realized the extent to which I took my own training - particularly about delegation - for granted.

I’ve excerpted my note to him here, and am happy to hear comments.

**
Perhaps the most important thing I can say about leadership “training” in the military is that it is NOT what people in corporations think of when they think of leadership training. When a corporate or academic person thinks leadership training (at least in the U. S.), in my experience, they are thinking of a combination of classroom, reading, discussion, off-sites, 3-day facilitated sessions, and perhaps external/individual coaching.

When the military talks about leadership training, they just mean leadership.

What I mean by this is that the military has discovered that one thousand hours of leadership training are worth about 15 minutes of actual leading. Being given true responsibility for people, budgets, projects, missions, lives, and being asked to do one’s best and learn from success and failure is the best way to develop leaders. The military trains leaders by giving them real responsibility at the lowest levels (by pushing decision making down the chain of command as far as possible), and allowing junior leaders -soldiers, sergeants, young officers - to take action and learn as they do. The military does this not IN SPITE OF the chance that soldiers might die because of a mistake, but BECAUSE they might die, and they need their leaders to learn more quickly than in any other endeavor. A leadership professor might say this is “frequent, early feedback.” A corporal would say to that, “yeah, whatever. But I want my lieutenant to know what the hell he’s doing, and it doesn’t seem to me that they teach that in school.”

I spend a lot of time dealing with this when clients find out that I am a Military Academy graduate. Several have even said, “Make my folks into a bunch of West Pointers!” I invariably say “the way to start is to stop taking them places and ‘teaching’ them things, and start giving them real work that has consequences . Give them feedback and coaching until they are blue in the face . Make them work on hard things and big projects - things their bosses are working on now. Let the bosses pick their heads up off the day to day, and let that ripple up the chain so that senior leaders aren’t proofreading advertising copy.” This is how the military “trains” leaders.

I had four reminders of the important differences between the military way and the corporate way recently.

First, there have been a couple of articles recently touting Jack Welch’s new book, Winning. Some people like Jack, some don’t. I’m a fan. Many of his detractors have drawn erroneous conclusions from his A/B/C ranking of people, but that’s a whole separate discussion. In his latest book, he lays out a very simple, 3 step way to look at strategy: (1) Get a big ‘aha’ about your business - a way to get competitive advantage; (2) Put the right people in the right jobs; (3) Seek out best practices and implement them intelligently.

Another way he describes this is: Pick a general direction and implement like hell. Everything I know - my entire experience in the military and business - says this is true. I’m a consultant, and Jack’s comments about consultants are ALSO true: “the way these experts talk about strategy - as if it were some kind of high-brain scientific methodology - feels really off to me.”

Okay, keep Jack’s thoughts in your head as I go to the second reminder- a companion article in Fortune entitled, “Get me a CEO from GE!” The article suggests that many companies would love to tap the GE talent pool for senior leadership. And they do: 5 of the Dow 30 companies are run by ex-GEers. This particular article suggests that “the GE playbook may not travel well”, because of the 34 transplants running major companies, 17 out-performed the S&P 500, and 17 under-performed it. But while true - the GE playbook will NOT travel well to certain places - the companies still want GE TALENT.

And why? Crotonville is to be lauded, the article says (rightly in my opinion): “But at least as important was GE’s early decision to create dozens of autonomous units and rotate managers among them. If you were the old IBM or Ford or GM or Exxon, you didn’t run a true profit and loss until you were way up in your career. At GE you have all these farm leagues where you can test people.”

One final point: “if there is a GE playbook, it is this: ‘An absolute belief that great people build great companies,’ Welch says.”

So. Arguably the most successful (long term) company in America is an engine of leaders, and its most recent leader says it’s all about “picking” a direction, getting the RIGHT PEOPLE onboard, and implementing (which is a decidedly prosaic, people-driven activity).

Third reminder. In the same Fortune, Wal-Mart was profiled. The article talked about, of all things, the famous Saturday morning meeting. The largest company in the world, and recently the most admired, believes the single most important thing it does outside of serving customers millions of times a day is a 3 hour meeting held every Saturday morning in Bentonville. This is a meeting of regular people, talking about selling regular stuff to regular people. It is not training, it is not strategy, it is not HR, it is not “futuring”, or a focus group. It is a store operations meeting, because what Wal-Mart does is operate stores. It’s former STORE MANAGERS (promoted to run more stores) who are listened to intently at these meetings. It’s the stores - small autonomous units where leaders are leading, growing, trying, failing, succeeding and sharing - that Wal-Mart believes is the key to its success. These meetings are NOT training, though people do learn things. They are learning by doing.

And lastly, 60 Minutes recently did a segment on West Point, and how its young graduates are going to Iraq… and succeeding, and teaching the Army about how to win wars like the one in Iraq. (Ironically, one USMA grad described urban warfare in Iraq as ‘combat in a Wal-Mart’). Rest assured, these young men and women did NOT know what they were getting into, though West Point training is very good. Training is not doing. The piece made quite a fuss about how the young leaders were adapting, and sharing ideas, and learning what they needed to unlearn.

Those military leaders in Iraq are leading reservist soldiers who may come back to the states and go to work at Wal-Mart or GE. They are learning to lead the same way Wal-Mart and GE want their leaders to: by leading, by running a department, by running a project, by being responsible for men, materiel, ammunition, prisoners, results. NOT by going to class, not by reading, not by going off-site.

The biggest company in America, the most successful long-term company in the US, and the stunning winner of the early Iraq war all do leadership training the same way: by allowing their people to lead.

This is not a coincidence.

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May I save you $5,000? And some embarrassment?

February 16th, 2006

When Peter Drucker died last year, I was saddened that I had never had the privilege of meeting him. Whenever I read his works, I was stunned by their simplicity and power. It seemed to me that he could cram more insight into a well-written sentence than even John D. MacDonald. I had always hoped to sit down with him for even just 15 minutes, to ask him 2-3-4 questions. Perhaps the highest praise I could give him is that I would have taken a week off to simply come up with the best 2-3-4 I could. That’s how precious that time would have been to me - to make THAT 15 minutes valuable, I would have taken a week.

In part I fantasized about taking this week to prepare as a way of paying homage to him. If you’ve read The Effective Executive, you know why. Drucker’s first insight in the greatest management book ever written is that the most precious resource an executive has is TIME. The effective executive knows where she spends her time, and that her time is spent on the RIGHT THINGS.

Which brings me to saving you and your company a lot of money.

Whenever I’m engaged by an executive to coach them, one of my first (if not THE first) actions is to request their schedule for the previous 3-6 weeks. I want an answer to a question I don’t want them to hear me asking: what is it that you DO? How do you spend your time? Because what you DO really IS what your priorities ARE.

Let me say that again, differently. Your “priorities” are what you DO. The inferential proof of what’s important to you is how you spend your time. Your BEHAVIOR is the pigment on your life’s strategic canvas.

I usually set the calendar aside, and then in our first meeting, I ask them one or more of these questions: “What are your priorities? What do you consider most important in your role? What do you see as the primary responsibility of your role?”

Shortly after I’ve spent my first day with an executive, I review their answers to my questions. Then, I compare their answers with their schedules.

90% of the time they don’t match.

When I review with my clients what they said their priorities were, versus what their calendars proved they actually were, the primary emotion, once we fight through disbelief and dissembling, is embarrassment. The smart ones get something powerful from this: the disparity between what they know their jobs to be and what they spend their time doing is the primary source of their dissatisfaction in their role.

How does this insight save you and your firm $5,000?

Because you don’t need to hire me to show you. Do it yourself, today. Put a half hour on your calendar some time today. (Oh, you’re not that busy). In the first 5 minutes, set up Outlook (or whatever) to begin printing your daily calendar for the past 6 workweeks. If you have a light enough daily schedule that it will all show, print your calendar in weekly view - it’ll go faster. We’re not measuring busy-ness here.

In the next 10 minutes, write down your answers to the questions I asked above. Take only 10 (uninterrupted) minutes. It’s unlikely you’re going to come up with better stuff after 10 minutes. I’ve asked this question 500 times, and that’s how long it’s taken. Don’t think back over your calendar and ‘infer’ your priorities from what you’ve been doing…that’s cheating. If you want to look at your job description, fine. If you want to look at your metrics, fine. Whatever. Just write down what you think your priorities are.

In the last 15 minutes, compare your calendar with your “priorities.” One rule I DO apply to this exercise is that unscheduled time does NOT get credited to ANY of your stated priorities. If you’re someone who says that you only schedule times for meetings, or things that require other people, you probably don’t like this rule. I’m sorry about that. But like I said, I’ve done this several hundred times, and I’ve watched people just like you work. If your time is unscheduled, you are SPECTACULARLY ineffective and inefficient. (It’s because you don’t treat time as your most precious resource, so you squander it.)

If that last point gets under your skin, I’m both sorry and a little glad. It’s not the embarrassment many of my clients feel, but hopefully, it will energize you to take control of your time. You can buy Drucker (link below) to learn more.

In half an hour (plus the time it took to read this post), you’ve learned one of the most powerful lessons my clients pay me $5,000 for.

Let me know how things go when you start behaving around your stated priorities.

It’s a privilege to serve you,

Mark

Manager Tools link to Peter Drucker’s the Effective Executive

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Amazon the Phoenix

February 20th, 2006

This weekend I killed Amazon, and then I got smarter, and it rose like a Phoenix, and it looked a LOT more profitable a couple of years from now.

I thought I’d share my thoughts about Amazon because I want to take frequent opportunities to encourage our Manager Tools community members to read. If you need help, go to our book list (which we are updating with comments shortly). Heck, even fiction. Read Tom Wolfe, or John D. MacDonald, or JK Rowling, or Carl Hiassen.

Or, Drucker.

Okay, long story. I was readying several books for mailing to the winners of our recent “Boss Communications” question. As I was doing that, and musing on the INCREDIBLE value of The World is Flat, I came across an article about Sony’s new (book) Reader. I’m thinking: BIG FLATTENER of the future.

There are several reviews which seem to suggest that we are past the Newton stage - this version might work. Their earlier version shared other Sony products’ issues with “overly” tight copyright protections, and apparently died.

But the product they are set to introduce has been getting a lot of good press. They might have it just right. Basically, it can hold thousands of books, and apparently the electronics are such that it’s fairly easy to use - read: easy to read from.

If you’re a professional, you should be reading constantly. Maybe you don’t have the problem of toting new hardbacks on planes (try Tom Wolfe or Tom Clancy or Jonathan Strange and Mr. Norrell), but still! Books today, compared to the miniaturization of my phone and address book and laptop and boom-box… They remind me of the original laptops, with the appellation “luggables.”

So, a digital reader, with all the books on it I’m reading… wow. I do love my bookshelves, but can come up with other decorating ideas.

Now, here’s where I got stupid and then slightly smarter. I thought to myself, WOW. Think about it. We’re going to be able to buy books digitally. No more shipping costs. No more value in the Amazon model! Amazon is in trouble! (Sony will be selling from their own site).

I panicked a bit. You’re probably thinking, but wait, not everybody can afford north of $300 for a reader… and you’re right. But I would have submitted at that moment this weekend that this device would be the beginning of the end, if not the end, of Amazon.

All of you smart reader/listeners have already figured this out, of course. People are still going to go to Amazon for books… but NOW, Amazon’s costs just went WAAAAAAY down! Suddenly, Fawkes flies, and Amazon sells off warehouse space it doesn’t need, and it’s as if the “new” economy, the digital one, ends up going through a shake out just like the “old” economy did with the leaning out of supply chains. Because I am happy to pay $20+ for a book, in whatever form. If they can still do that, and the marginal cost of producing a second one is ZERO… WOW.

No, they probably won’t be able to charge what they charge now. There may be a race to the bottom. But costs will have gotten there first.

Digital books are coming. That, to me, is both a flattener, and a RESULT of flattening.

There’s so much more to this (travelling with laptops replaced by reader and smartphone with email)… I’ll recur to this theme soon.

Mark

(Yes, mine will be one of them. “The Effective Manager” is the working title. And yes, I AM working on it.)

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