Friday, December 29, 2017

Paul's Update Special 12/29




According to a 2014 Gallup poll, companies, 82 percent of the time, appoint the wrong person to a management or leadership position. That's a staggering number. Here are seven characteristics that companies should look for in future managers. If those people don't have them, then don't promote them.

1. Great communications skills
Not only do leaders need to communicate often, they also need to communicate clearly and simply. When managers can show teams how they will be successful, they'll have more confidence in their managers' abilities to help them achieve the goal. 

2. Great coaching skills
More often than not, it's the people with the greatest technical skills who get the promotion. But teams cannot rely only on their leader's productivity level to be successful. Leaders have to be able to share their expertise and coach their teams to come up to their level of competence. 

3. Great nurturing skills
Leaders need to be able to develop their teams. Not only does this improve team performance, it also increases retention rates, as a lack of opportunity to grow is a top reason staff leave. 

4. Great networking ability
Leadership is all about influence, and one of the biggest sources of influence comes from networking. Having a great network confirms that a potential manager has good communication skills, and shows that he or she understands the value of collaboration and cooperation. 

5. Great empathy skills
Having great empathy allows you to put yourself in the position of someone else. This ability helps you build much stronger connections with your team, and fosters trust. 

6. Great team player
Loners rarely make good leaders. So, identify those people who are good team players, work well with others and understand the benefits of great teamwork. Not only will they work better with their teams but also build teams that work well together and elevate the overall results.

7. Great humility
All managers and leaders need to have confidence in their own ability; but when that confidence boils over into arrogance, problems can occur. 

When you interview leadership candidates, ask questions that will give you clues as to whether the individuals exhibit these seven competencies. Technical skills are important, but it's the soft skills that will determine how well a person will do in a leadership or management role. Get that right, and you'll have a chance of being one among that golden 18 percent of leaders skilled at appointing the right people to leadership roles.




Michigan’s rate of residential moves between counties within a state is ninth in the nation. That’s quite a contrast to Michigan’s rate of moves between states, which is 46th nationwide.

At a time when economists have noted that a decline in mobility creates a mismatch between available work and available workers, Michigan’s intra-state migrations could reduce those problems.

Thousands move every year between Wayne, Oakland and Macomb counties in southeast Michigan, and thousands more move in and out of Ottawa and Kent counties, the leaders of the West Michigan economy that is booming.
The intra-state moves help rearrange the labor market in a state that lost over 820,000 people to other parts of the country from 2001 through 2016, when the manufacturing sector collapsed and Michigan was the only state to lose population between 2000 and 2010.

It’s better for people if they can easily move from one area to another. They are better positioned to weather quick turns in the economy. But more frequent moves can hurt communities, taking away human capital that’s not guaranteed to return.

“If you are interested in the welfare of the individual, you want people to be able to move relatively easily, however if you are interested in the welfare of the place, then you would prefer that people don't move as easily and quickly,” said Don Grimes, a University of Michigan economist who creates an annual forecast of the state’s economy.

For many rural parts of the state that are rapidly aging and losing population, the loss of people reverberates for those who remain: the tax base is lowered and there are fewer people to support the economy, the schools, the community.
People move for a number of reasons besides jobs: They often move to attend college – some of the highest migration counties are where the state’s largest universities are – and often when they retire.

But one of the biggest drivers is still a career opportunity. And in West Michigan, those still have some magnetic appeal: Kent and Ottawa counties are growing in population, much of it driven by net positive migration from within the state.

Again, that’s good news – for workers, companies and the region’s housing. Also for advocates like Hello West Michigan’s Cindy Brown. It also helps explain why the region’s jobless rate hovers just over 3 percent – success begets success.

“We are not seeing a problem getting people to West Michigan,” Brown said.


Friday, December 22, 2017

Paul's Update Special 12/22




In the book Leading Organizations, McKinsey senior partners Scott Keller and Mary Meaney address the ten most basic issues facing leaders: attracting and retaining talent, developing the talent you have, managing performance, creating leadership teams, making decisions, reorganizing to capture value quickly, reducing overhead costs for the long term, making culture a competitive advantage, leading transformational change, and transitioning to new leadership roles. This article, drawn from the book’s opening chapter, speaks to the first of these topics: attracting and retaining talent.

Why is talent important? Superior talent is up to eight times more productive.
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Suppose your business strategy involves cross-functional initiatives that would take three years to complete. If you took 20 percent of the average talent working on the project and replaced it with great talent, how soon would you achieve the desired impact? If these people were 400 percent more productive, it would take less than two years; if they were 800 percent more productive, it would take less than one. If a competitor used 20 percent more great talent in similar efforts, it would beat you to market even if it started a year or two later.

Great talent is scarce: Almost one-third of senior leaders cite finding talent as their most significant management challenge.
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A McKinsey Global Institute study8 suggests that employers in Europe and North America will require 16 million to 18 million more college-educated workers in 2020 than are going to be available. Companies may not be able to fill one in ten roles they need, much less fill them with top talent. 

Most companies don’t get it right:  A whopping 82 percent of companies don’t believe they recruit highly talented people. 
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Talent matters, because its high value and scarcity—and the difficulty of replacing it—create huge opportunities when companies get things right. Let’s now turn to how they can do that.

What are the big ideas?
Focus on the 5 percent who deliver 95 percent of the value. In a world of constrained resources, companies should focus their efforts on the few critical areas where the best people have the biggest impact. Start with roles, not processes (which create generic solutions that don’t meaningfully improve results) or specific people (who might help you in particular situations but don’t build institutional muscle).

Make your offer magnetic—and deliver
Leaders know the term “employee value proposition,” or EVP: what employees get for what they give. “Gives” come in many flavors—time, effort, experience, ideas. “Gets” include tangible rewards, the experience of working in a company, the way its leadership helps employees, and the substance of the work. If your EVP is truly stronger than the competition’s, you will attract and retain the best talent.
Technology will be the game changer
When the National Bureau of Economic Research looked into this, it pitted humans against computers for more than 300,000 hires in high-turnover jobs at 15 companies. Human experience, instinct, and judgment were soundly defeated: people picked by computers stayed far longer and performed just as well or better. Although people analytics is a field still in its infancy, it’s gaining speed. In 2016, only 8 percent of companies reported that they were fully capable of using predictive modeling, but that was up from 4 percent in 2015.22 Leaders who don’t implement concrete plans to leverage technology in the war for talent will quickly fall behind.

How do I make it happen?

1. Aspire
The team first determined the talent requirements for the organization’s five-year plan. Two roles were especially important: general managers and data-analytics specialists. The team then coupled this demand view of talent with a supply view and identified the gaps. Senior leaders gave the team a mandate for bold action.

2. Assess
With the priorities established, the team took a deep dive into the current mess. What did recruits in each target segment care about? How did the institution compare with their other options? Why were people in key roles departing? Which current approaches were and weren’t working? Using interview techniques to get behind superficial answers, the team gathered qualitative data. Quantitative data were generated by predictive analytics algorithms that determine patterns and an analysis of how general managers spent their time.

The organization’s value proposition for generalists—the promise of interesting work, on-the-job development, and an attractive, flexible career path—turned out to be on target. However, the reality didn’t live up to it. The team found that specialist candidates wanted a different value proposition: deeper technical development, opportunities for special projects, a more relaxed and informal environment, and freedom from administrative tasks.
3. Architect
The working team recommended two discrete career paths, for generalists and specialists. The role of general managers would be adjusted to let them play more of a coaching (rather than a coordination) role. For data analysts, the team proposed more relaxed, informal recruitment events on school campuses and a stronger referral program. 
4. Act
The leader and top team led from the front—for example, by personally attending the newly overhauled top-talent development programs—to communicate the importance of making the target EVP real and vibrant. She quickly became known for asking two questions in every performance dialogue: “what are your top five to seven priorities?” and “who are your top five to seven most talented leaders?” People learned that there should be a match between the answers. 
5. Advance
The results appeared quickly: employee engagement shot up and attrition declined, especially among the most recent hires. Acceptance rates started improving, and employees became a powerful recruiting source.
Eighteen months later, after rising nearly 40 spots in the public sector’s Best Place to Work ranking, the organization found it easier to access talent, especially data scientists. Attrition dropped to historic lows, particularly in critical general-management and specialist roles. As a final sign of success, instead of trumpeting the organization’s downward spiral, headlines announced the bold new agenda and leadership.


On Friday, Facebook publicly released its internal policy on harassment.

In a post authored by COO Sheryl Sandberg and VP of people Lori Goler, the two execs wrote that they were publicizing their policies and processes, "not because we think we have all the answers, but because we believe that the more companies are open about their policies, the more we can all learn from one another."

On its website, Facebook lists tips for making the most of anti-harassment training, information about how the company conducts internal investigations, and examples of workplace harassment like "derogatory or insensitive jokes, pranks, or comments," "slurs or epithets," and "unwelcome sexual advances or invitations."

The policy states, "'I was joking' or 'I didn't mean it that way' are not defenses to allegations of harassment. Nor is being under the influence of alcohol or other substances."

Employees can report incidents via HR, the company's employment law team, or a whistleblower hotline, while managers must report violations and suspected violations "and will be subject to discipline for failing to timely report."

Once a complaint has been filed, investigators from the company's people team reach out to employees via email to schedule meetings. Two members of the team meet with employees called upon over the course of the investigation — one investigator takes notes, and one asks questions. The results of the investigations include termination, education, counseling, warnings, and no action.
In their statement, Sandberg and Goler added that it's crucial for companies to be transparent about their policies going forward: "We don't have everything worked out at Facebook on these issues, but we will never stop striving to make sure we have a safe and respectful working environment for all our people."

Friday, December 15, 2017

Paul's Update Special 12/15




As someone who develops programming to foster more inclusive workplaces, the biggest challenge I face is tailoring conversations about diversity and inclusion to everybody in the room. So I created this chart to give leaders a framework for how to best utilize each one of these archetypes to advance diversity and inclusion (D&I) goals.

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         (courtesy of Amber Madison)

Here’s who those four archetypes are, and how your company can approach each one.

THE CHAMPION
Who: The experts in the space–corporate heads of diversity and inclusion, D&I consultants, HR and People Ops folks, and allies who are informed and outspoken about these issues.

How to utilize them: These people are going to be your best soldiers, the ones you can mobilize to reach your diversity and inclusion goals. But they’re not always getting credit for this work. We know that diverse and inclusive companies make more money–so are you rewarding the fact that these employees are volunteering their time to help you build a more profitable business? And just as important, are there systems in place to incentivize them to continue to do this work?
THE NEWBIE
Who: Well-intentioned yet uninformed, these people might include your CEO who drops a tone-deaf remark at an all-hands meeting, your caring but dopey manager, Ashton Kutcher, and all those who are waking up to issues of systemic injustice but aren’t yet “woke” 

How to respond to them: It’s easy to get upset when people say ignorant things, but it’s important to remember that we’re all still learning. Everyone has said the wrong thing at some point or another, so we can all have some empathy for what it feels like to mess up. Furthermore, when people witness someone who’s misinformed but well-intentioned get roasted for mistakenly saying something offensive, it can create a widespread fear of being judged harshly for screwing up. And that can make people avoid engaging in real conversations about these topics at all. Of course, problematic thoughts and ideas need to be corrected, but doing so with kindness and empathy encourages everyone to stay involved.

THE BYSTANDER
Who: In all likelihood half of your company, these are the people who feel indifferent to diversity and inclusion issues. Maybe they’re “too busy” to think about these things, or they wonder, “What does this have to do with me?”

How to win them over: This group is our untapped market–our “undecided voters”–and our biggest opportunity to deepen support for D&I interventions. These are people who haven’t spent much time thinking about these issues, and likely haven’t had to be confronted with them. To turn bystanders into allies, you need to make a compelling case for why they should care. Listen to their concerns if they have them, respond thoughtfully to misguided thinking, and engage in a dialogue about these issues. 

THE BIGOT
Who: Those who identify with the views expressed in last summer’s infamous “Google memo,” and Reddit or Twitter users who feel emboldened to be outspoken sexists, racists, homophobes, and so on.

How to leverage their opposition: If we want to win this battle for equality, then like any good team we need to study our opposition. Even if we never change the minds of many people in this category, understanding why they feel what they feel will help us better target our efforts to those who are undecided. Whatever extreme viewpoints opponents may have, those indifferent to these issues likely have shades of the same ones. By gaining insight into our opposition’s motivations and thought processes, we can frame our messages for the broadest possible appeal.

Our culture has filled us with offensive, problematic, and misguided ideas about gender, race, sexuality–you name it. Everyone is at a different place with how deeply they believe these ideas (consciously or otherwise), and how much time they’ve spent challenging them. Rather than just knowing how to preach to the choir, the better we can meet people where they are, and escort them on their journey forward, the more impact we’ll make in the long run.




Hard as it is for organizations to innovate, large ones as diverse as Alcoa, the Discovery Group, and NASA’s Ames Research Center are actually doing so. What can other companies learn from their approaches and attributes? That question formed the core of a multiyear study comprising in-depth interviews, workshops, and surveys of more than 2,500 executives in over 300 companies, including both performance leaders and laggards, in a broad set of industries and countries. What we found were a set of eight essential attributes that are present, either in part or in full, at every big company that’s a high performer in product, process, or business-model innovation.

Aspire

President John F. Kennedy’s bold aspiration, in 1962, to “go to the moon in this decade” motivated a nation to unprecedented levels of innovation. A far-reaching vision can be a compelling catalyst, provided it’s realistic enough to stimulate action today.

But in a corporate setting, as many CEOs have discovered, even the most inspiring words often are insufficient, no matter how many times they are repeated. It helps to combine high-level aspirations with estimates of the value that innovation should generate to meet financial-growth objectives. Quantifying an “innovation target for growth,” and making it an explicit part of future strategic plans, helps solidify the importance of and accountability for innovation. The target itself must be large enough to force managers to include innovation investments in their business plans. If they can make their numbers using other, less risky tactics, our experience suggests that they will.

Establishing a quantitative innovation aspiration is not enough, however. The target value needs to be apportioned to relevant business “owners” and cascaded down to their organizations in the form of performance targets and timelines. Anything less risks encouraging inaction or the belief that innovation is someone else’s job.
Choose

Fresh, creative insights are invaluable, but in our experience many companies run into difficulty less from a scarcity of new ideas than from the struggle to determine which ideas to support and scale. 

Innovation is inherently risky, to be sure, and getting the most from a portfolio of innovation initiatives is more about managing risk than eliminating it. Since no one knows exactly where valuable innovations will emerge, and searching everywhere is impractical, executives must create some boundary conditions for the opportunity spaces they want to explore. 

Once the opportunities are defined, companies need transparency into what people are working on and a governance process that constantly assesses not only the expected value, timing, and risk of the initiatives in the portfolio but also its overall composition. There’s no single mix that’s universally right. 

Discover

Innovation also requires actionable and differentiated insights—the kind that excite customers and bring new categories and markets into being. How do companies develop them? Genius is always an appealing approach, if you have or can get it. Fortunately, innovation yields to other approaches besides exceptional creativity.

The rest of us can look for insights by methodically and systematically scrutinizing three areas: a valuable problem to solve, a technology that enables a solution, and a business model that generates money from it. Discovery is iterative, and the active use of prototypes can help companies continue to learn as they develop, test, validate, and refine their innovations. Moreover, we firmly believe that without a fully developed innovation system encompassing the other elements described in this article, large organizations probably won’t innovate successfully, no matter how effective their insight-generation process.
Evolve

Business-model innovations—which change the economics of the value chain, diversify profit streams, and/or modify delivery models—have always been a vital part of a strong innovation portfolio. As smartphones and mobile apps threaten to upend oldline industries, business-model innovation has become all the more urgent: established companies must reinvent their businesses before technology-driven upstarts do. Why, then, do most innovation systems so squarely emphasize new products? The reason, of course, is that most big companies are reluctant to risk tampering with their core business model until it’s visibly under threat. At that point, they can only hope it’s not too late.

Leading companies combat this troubling tendency in a number of ways. They up their game in market intelligence, the better to separate signal from noise. They establish funding vehicles for new businesses that don’t fit into the current structure. They constantly reevaluate their position in the value chain, carefully considering business models that might deliver value to priority groups of new customers. They sponsor pilot projects and experiments away from the core business to help combat narrow conceptions of what they are and do. And they stress-test newly emerging value propositions and operating models against countermoves by competitors.
Accelerate

A surprising number of impressive innovations from companies were actually the fruit of their mavericks, who succeeded in bypassing their early-approval processes. Clearly, there’s a balance to be maintained: bureaucracy must be held in check, yet the rush to market should not undermine the cross-functional collaboration, continuous learning cycles, and clear decision pathways that help enable innovation.

To end up with the innovation initially envisioned, it’s necessary to knock down the barriers that stand between a great idea and the end user. Companies need a well-connected manager to take charge of a project and be responsible for the budget, time to market, and key specifications—a person who can say yes rather than no. In addition, the project team needs to be cross-functional in reality, not just on paper. This means locating its members in a single place and ensuring that they give the project a significant amount of their time (at least half) to support a culture that puts the innovation project’s success above the success of each function. Cross-functional collaboration can help ensure end-user involvement throughout the development process.
Scale

Some ideas, such as luxury goods and many smartphone apps, are destined for niche markets. Others, like social networks, work at global scale. Explicitly considering the appropriate magnitude and reach of a given idea is important to ensuring that the right resources and risks are involved in pursuing it.
Resources and capabilities must be marshaled to make sure a new product or service can be delivered quickly at the desired volume and quality. Manufacturing facilities, suppliers, distributors, and others must be prepared to execute a rapid and full rollout.

Extend

In the space of only a few years, companies in nearly every sector have conceded that innovation requires external collaborators. Flows of talent and knowledge increasingly transcend company and geographic boundaries. Successful innovators achieve significant multiples for every dollar invested in innovation by accessing the skills and talents of others.
High-performing innovators work hard to develop the ecosystems that help deliver these benefits. Indeed, they strive to become partners of choice, increasing the likelihood that the best ideas and people will come their way. That requires a systematic approach. First, these companies find out which partners they are already working with; surprisingly few companies know this. Then they decide which networks—say, four or five of them—they ideally need to support their innovation strategies. This step helps them to narrow and focus their collaboration efforts and to manage the flow of possibilities from outside the company. Strong innovators also regularly review their networks, extending and pruning them as appropriate and using sophisticated incentives and contractual structures to motivate high-performing business partners. Becoming a true partner of choice is, among other things, about clarifying what a partnership can offer the junior member: brand, reach, or access, perhaps. It is also about behavior. Partners of choice are fair and transparent in their dealings.

Moreover, companies that make the most of external networks have a good idea of what’s most useful at which stages of the innovation process. In general, they cast a relatively wide net in the early going. But as they come closer to commercializing a new product or service, they become narrower and more specific in their sourcing, since by then the new offering’s design is relatively set.
Mobilize

How do leading companies stimulate, encourage, support, and reward innovative behavior and thinking among the right groups of people? The best companies find ways to embed innovation into the fibers of their culture, from the core to the periphery.

They start back where we began: with aspirations that forge tight connections among innovation, strategy, and performance. When a company sets financial targets for innovation and defines market spaces, minds become far more focused. As those aspirations come to life through individual projects across the company, innovation leaders clarify responsibilities using the appropriate incentives and rewards.
Internal collaboration and experimentation can take years to establish, particularly in large, mature companies with strong cultures and ways of working that, in other respects, may have served them well. Some companies set up “innovation garages” where small groups can work on important projects unconstrained by the normal working environment while building new ways of working that can be scaled up and absorbed into the larger organization. 

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Big companies do not easily reinvent themselves as leading innovators. Too many fixed routines and cultural factors can get in the way. For those that do make the attempt, innovation excellence is often built in a multiyear effort that touches most, if not all, parts of the organization. Our experience and research suggest that any company looking to make this journey will maximize its probability of success by closely studying and appropriately assimilating the leading practices of high-performing innovators. Taken together, these form an essential operating system for innovation within a company’s organizational structure and culture.

Friday, December 8, 2017

Paul's Update Special 12/8




Peak-performance cultures maintain a sense of urgency. Urgency is when your people believe not only that something specific needs to be accomplished, but also that that specific something must be accomplished within a specific time frame or significant negative consequences will result.

All other things being equal, the leaders of these companies have mastered the art of establishing and maintaining this sense of urgency. People in organizations where there is a palpable and appropriate sense of urgency tend to:
  • assume a "whatever it takes" attitude;
  • do what is needed versus what is wanted;
  • ignore distractions;
  • be intolerant of wasting time and non-value-added activity;
  • get to the point;
  • resist gossip; and
  • work quickly.
When you as a leader establish and maintain an appropriate sense of urgency, people stop fretting over the trivial -- they don't make small issues big issues. They tend to use what they have in innovative ways. They have a bias toward action, are intolerant of planning loops, and tend to keep the main thing the main thing -- whatever that is. Most of all, they shift from a reactionary response to proactive planning and morale goes up.

Leaders of these peak performance companies are constantly sensing the degree of urgency in themselves and their key personnel.

They manage the level of urgency by making sure key personnel are aligned on 1) a deep and truthful assessment of the current operating environment of the company and/or project, 2) the specific intended outcomes, and 3) the fewest, most important things that must be accomplished to close the gap between "a" and "b."

Key personnel have a deep and clear shared understanding of the consequences and implications of failing to achieve the desired state in the time frame that has been identified. The more real and personal these consequences feel to the people, at both an emotional and financial level, the deeper the feeling of urgency will be.
Here are the questions I would ask to determine my organization's sense of urgency:
  1. How would you describe the current operating environment of this company? What are its specific constraints to growth and its primary levers of growth? What parts of the company are in most need of enhanced performance? What is happening in your operating environment that requires careful monitoring?
  2. What specifically are you and your teammates trying to do in the marketplace? What is your current intention regarding customers? What are you trying to build or accomplish and by when? What is your vision for the company?
  3. What are the fewest, most critical initiatives that are being implemented, and do you have any concerns about how they are going? Are they the right ones? Are the right people working them? What is making it hard to accomplish them on time? Are roles clear?
  4. What is really at stake, for the company and for you personally, should you and your team fail to achieve these initiatives?  
To what degree would each person have well thought out answers to these critical questions? To what degree would the answers be aligned with their peers? Where are the areas of deepest shared alignment?

Where do their answers vary the most? Answers that vary considerably are NOT good.

Ask yourself, "What would I have to do to get myself and my people into deep alignment around truthful and well thought our answers to these questions?" Do that.

Their deep alignment around these focusing questions is your source of both creative tension and urgency. And ensuring appropriate relative tension and urgency is a fundamental responsibility of leadership. 




Who doesn't love pizza?

That's the question Dan Ariely implies in his upcoming book Payoff: The Hidden Logic That Shapes Our Motivations. In the book, Ariely, a behavioral economist, recounts a week-long experiment in which employees working at a semiconductor factory were promised one of three things if they were able to assemble a certain number of chips per day:
  • A cash bonus of approximately $30
  • A voucher for a free pizza
  • A complimentary text message of "Well done!" from the boss
A fourth group, serving as the control, received nothing.
Interestingly, a number of major outlets have reported on this study, correctly pointing out that pizza was the top motivator on day one--increasing productivity by 6.7 percent over the control group. This is somewhat surprising considering the cash only motivated a 4.9 percent increase...and actually resulted in a 6.5 percent drop in productivity for the week overall.

But what caught my attention was what turned out to be the biggest motivator of the week:

It was the compliment.
When you commend and praise members of your team, you satisfy a basic human craving and provide motivation as a byproduct--as was highlighted in Ariely's experiment.

And just think: If the promise of a simple text message from the boss can increase productivity, can you imagine what real, sincere and authentic praise would do?
To be clear, I never encourage flattery--or praise that you don't really mean.

But everyone deserves praise for something; as a leader, it's your job to figure out what. To look for the good, to see the potential, and to bring out the best in them.

Your employees will value that a heckuva lot more than pizza.

I guarantee it.




For every company wrestling with evolutions in its strategy, success depends as much on matching the operating model to those evolutions as it does on the soundness of the strategy itself. An “operating model” — how a company organizes and manages its resources to achieve its strategic ambitions — is the bridge between strategy and execution. The idea that organizational structure follows strategy is not new — business historian Alfred Chandler laid this out in 1962 in his book Strategy & Structure. But exactly how do today’s companies create or update an operating model to match adaptations or wholesale changes in strategy?

We believe redesigning your operating model must start with a blueprint based on a few basic principles. First among them: Agree on what really matters to deliver your strategy. Agreeing up front on the capabilities that truly matter turns what can be a very subjective and emotionally charged discussion among your leadership team into a fact-based dialogue.

Across industries and countries, effective principles share three characteristics.
  • First, they’re grounded in facts in order to bring that needed objectivity. Principles informed by a fact-based strategy encourage impartiality, highlighting gaps, and forcing difficult choices.
  • Second, they’re specific enough to help senior management make trade-offs. 
  • Third, effective principles stay brief. The best sets of principles fit on one page.
Once the blueprint is developed, we find that the best CEOs focus not only on the capabilities that matter, but on the individuals and teams that matter. For individuals, they make sure that difference-making talent is in mission critical positions. They make sure that the most important battles are entrusted to agile, cross-functional teams with real authority and support. 

Finally, we urge companies not to lose sight of an essential goal of good organizational design: constructive conflict. The CEOs we know who have built effective operating models have a real intuition about designing creative conflict into their operating models, as well as the means for efficiently and effectively resolving that conflict. The result is often inspired outcomes for their customers, employees and other stakeholders. 

If your company’s operating model can’t deliver on your strategy, or needs to be upgraded to match the evolution of that strategy, start the redesign with your leadership team not by digging into the details, but by pulling up and agreeing on a few basic principles. Clarity and simplicity are the watchwords here.




If you’re anything like me—a class A overachiever—you’ve probably been advised more than once to slow down. Relax, take a breath, just enjoy your latest success for a bit before worrying about the next one.

Organizational psychologist Adam Grant, the bestselling author and Wharton professor, has a short-term fix for overachievers. “After I finished writing Originals, a friend asked me how I was planning to celebrate my second book. It hadn’t even occurred to me: I was already mapping out the third one,” he writes.

Once aware of his behavior, Grant attempted various slow-down strategies. The one that stuck was what he refers to as the time machine. “I turned the dial back five years,” he explains. “If I had known then that I would write a second book, would I have been happy? No, I would’ve been delirious.”

This mental time-travel, Grant promises, allows you to view your achievements in the context of past expectations. “And for a few minutes, before you’re jolted back to the present, you’ll feel contented. Maybe even proud.”

The trick works because it takes you out of what Stanford University psychologist Carol Dweck would call a fixed mindset, which assumes that things like character, intelligence, and creative ability are static—and that any success we have is an affirmation of those traits, while failure is a denial of them. With a growth mindset, on the other hand, you believe that traits like intelligence and creativity can be cultivated through experience, regardless of whether the learning comes from a success or a failure.


Friday, December 1, 2017

Paul's Update Special 12/1




The top workplace trends for 2018 include:
  • 1. Leaders encourage more human interaction.
    Companies will continue to promote their workspaces and design them to facilitate interpersonal relationships between employees. In our research, in partnership with Randstad, we found that Gen Z's and millennials choose in-person conversations over using technology and prefer corporate offices over telecommuting. While technology can make us more efficient, and feel highly connected to one another, it will never replace face-to-face conversations. Leaders who encourage personal connections will have more committed, satisfied and productive workers. 

    2. The next wave of learning credentials.
    One of the most disrupted industries is education, with more third parties offering courses, credentials and certifications than ever before. More employers will be accepting different types of credentials as they seek to build diverse talent pools and expand their reach. Younger generations are starting to resist the traditional degree due to the ever increasing cost of tuition, which grew by nine percent from last year for four-year public schools. As companies continue to accept non-traditional credentials, students will be able to avoid debt and study at their own convenience, without fear of unemployment.

    3. Companies focus on upskilling and retraining current workers.
    While the political discussion is focused on bringing manufacturing jobs back to America, and the news media continues to publish articles on how automation will eliminate jobs, we should really be focused on the growing skills gap. We not only lack the right set of skills, but the ones we currently have are becoming less relevant over time. Employers will be investing more money into their training and development programs in 2018 in order to fill their skills gaps and reach their full capacity. IBM found that 84% of employees at the best performing organizations are receiving the training they need compared to only 16% at the worst performing ones. When teams are appropriately trained, companies save an average of $70,000 annually and receive a 10% increase in productivity. As Generation Z enters the workplace, they face an even greater skills gap, where 65% of the jobs they will need to fill don't even exist yet.

    4. Artificial intelligence becomes embedded in the workplace.
    The topic with the biggest buzz in HR circles is AI because there is both excitement and fear around the topic as it relates to how we do our jobs. Almost every new device and service will contain AI in the next few years. Companies are using chatbots as personal assistants, for on-demand customer support, to mine data, streamline business processes, recover product information and to answer employee questions. As more employees see the efficiency benefits of chatbots, and AI, they will be adopted at a more rapid pace.

    5. Financial and mental wellness get prioritized.
    With 78% of Americans living paycheck to paycheck and student loan debt at over $1.4 trillion, workers are struggling and it's affecting their health. Workers are stressed out, burned out and it's affecting not only their productivity but their satisfaction on the job. Northwestern Mutual reports that more than a quarter of millennials say financial stress affects their job performance and made them feel physically ill and depressed. Nearly half of employees have financial concerns, causing them to lose an average of six productive work days annually. Now HR is taking on the role of mental health counselors, helping support employees who have all sorts of mental health issues like depression, anxiety, bipolar and ADHD. While many of these disorders are hidden, 84% of employees have experienced physical, psychological or behavioral symptoms of poor mental health.
  • 6. Employee burnout causes more turnover.
    Employees are burned out from working longer hours with no additional compensation, while companies are posting record profits. In a study, in partnership with Kronos, we found that almost half of HR leaders say employee burnout is responsibility for up to half of their annual workforce turnover. They believe burnout is caused by unfair compensation, an unreasonable workload and too much after-hours work. In order to prevent employee burnout, companies are focused on creating wellness and flexibility programs that allow them to take time off and stay healthy.

    7. Workforce decisions sway consumer behavior.
    For years, HR and talent leaders have desired a seat at the table, influencing the CEOs agenda. Now, with the advent of big data and new research by my firm and others, they can finally draw the connection between a positive employee and candidate experience and actually revenue. Aside from candidate behavior, when firms don't invest in their hiring and training programs, they lose out on top talent, which ends up costing money and productivity.

    8. Companies take diversity more seriously.
    While the subject of diversity has become the topic of conversation for years, it has almost reaching a tipping point, where companies are investing money in improving the composition of their workforce. More companies are creating employee resource groups to support all types of diversity, including gender, ethnicity and age. They feel like these support groups will help promote the positive aspects of having a heterogeneous employee base.

    9. The deregulation of labor laws.
    Under the current administration, more labor laws are being deregulated, which is costing companies money, and impacting their ability to promote diversity and protect worker rights. These deregulations will both cost companies money, and save money, at the same time - but most are really bad for workers.

    10. The aging workforce.
    The workforce is continuing to age, with baby boomers living longer than previous generations and retiring later. About three in every four Americans plan to work past retirement age and almost two-thirds said they will continue to work part-time. As baby boomers maintain their leadership positions, it will be harder for younger workers to rise up in their organizations and could lead to higher turnover, stress and frustration.



To be un-disruptable today requires much more than steering companies through singular (if monumental) events—it demands leaders navigate constant turbulence, continuously adjusting their actions accordingly. Today’s CEOs seem required to maintain constant pressure to transform their organizations by cultivating a high-tolerance, if not a passion, for ambiguity—and to infuse others with the same mindset. In a volatile world, today’s leaders need flexibility, agility, and a willingness to extend their organization’s capabilities into new and, sometimes, unexpected areas to keep ahead of relentless competition.

To better understand this shifting CEO role—and to uncover the qualities and skills leaders need to meet the demands of their positions in the future—we interviewed the CEOs of 24 massive, complex, global organizations in industries spanning banking, pharma, technology, natural resources, food processing, health-care delivery, retail, and manufacturing. Our mission was to attempt to answer this question: What does it take to be un-disruptable today, and what will be demanded of CEOs and their organizations to avoid disruption tomorrow?

What emerged were 20 factors identified as important to cultivating resilience to disruption, and five characteristics that were particularly significant. The five characteristics are:
  • EMBRACE AMBIDEXTERITY
    Yogi Berra once famously declared: “If you come to a fork in the road, take it.” Deciding to pursue more than one path—focusing simultaneously on the present as well as on the riskier future—may not seem particularly radical.2 Yet the CEOs we interviewed saw a different breed of ambidexterity: an urgent, continuous need to relentlessly and simultaneously execute both exploitation and experimentation.
  • CULTIVATE EMOTIONAL FORTITUDE
    CEOs need to display—and cultivate within their companies—an ability to use fear of the rapidly changing landscape to fuel more productive outcomes, and accept failure is a risk when placing big bets. We call this emotional fortitude: the need for leaders to combine a sober assessment of potential risks and roadblocks with the fearlessness to pursue lofty visions.
  • ENCOURAGE A BEGINNER’S MIND-SET
    The Zen Buddhism concept of Shoshin means “beginner’s mind.” In the words of Shunryu Suzuki, “In the beginner’s mind there are many possibilities, but in the expert’s there are few.” This captures one challenge CEOs consistently raised: seeing the world from the perspective of someone who does not know much about it.
  • MASTER DISRUPTIVE JUJITSU
    Striving to become masters of disruptive jujitsu is precisely how CEOs aspire to handle disruption: recognizing threatening disruptions, breaking them into their components, selecting those components that can strengthen their organization, and then finding a way to “hijack” these disruptive elements for their own competitive advantage.
  • BECOME ULTIMATE END-USER ETHNOGRAPHER
    It’s no secret that companies need to focus on their customers. But CEOs in our interviews spoke of a desire to better understand not only customer needs and attitudes, but to gain insight into experience of the ultimate end-user, becoming their most trusted champions by discovering their most subtle habits, desires, and subconscious concerns.
The five attributes we identified lay the groundwork for a new or more nuanced leadership model. Rather than five isolated factors, we increasingly see these characteristics as an organized whole, far more than the sum of their parts. 


Finally, who would have ever expected strawberry pickers to be replaced by robots. But here they are.