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25 August 2009 • 7:00 am

The Case of the Undermined Change Program – Part II

In Part I of this case, I recounted the history of an engagement I had several years ago with a particularly challenging client, WorldCo, a division of a large U.S. corporation. We met Reggie, the head of the WorldCo division, Karen, his head of strategy, and Linda, Karen’s deputy (all names and some details have been changed). Please read Part I now if you haven’t done so already.

As I requested, Linda accompanied me to each of the interviews, and was able to provide valuable context and insight into what was revealed. Some members of Reggie’s leadership team were enthusiastic, and well informed about the intent of the program, but at least a couple of them had no idea what was going on, and seemed especially impatient with our use of an hour of their time for the interview. All knew of the upcoming full-day kick-off and strategy map workshop, but some were clearly skeptical. Linda wasn’t surprised. She told me that Reggie rarely met with his team as a whole, and that each of those managers was operating fairly autonomously. There were also some mild rivalries among those team members. Reggie was seen by Linda and others as having a “hands-off” leadership style.  

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24 August 2009 • 7:00 am

The Case of the Undermined Change Program – Part I

Current events in the U.S. have reminded me of a rather challenging client I had several years ago. Although all of the names and some of the details here have been changed to protect the identity of the client organization and individuals involved, it is very much a real experience, and sadly, not all that unusual in the annals of balanced scorecard programs.

Our firm was approached by Karen, the energetic and charismatic head of strategy for WorldCo, a major division of a large U.S. corporation whose name would be instantly recognizable to anyone reading this case. Her mission was to implement balanced scorecard in WorldCo as the basis for a strategic management system, and as a tool to drive an overarching strategic change program. She had proposed the idea and earned the blessing of the division head Reggie, an executive who appeared every so often in favorable interviews about leadership in business periodicals.

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6 August 2009 • 7:00 am

How to Get Beyond Leadership Buy-in

It almost goes without saying that an organizational change initiative without proper levels of leadership support is doomed to fail. Perhaps the project will be paid lip service, but it will ultimately either be ignored into oblivion or cut short of its potential with one drop of the axe.

Not only do organizational leaders have the power to make or break your project on their own, but it is impossible to bypass them to change the organization below. Individuals experiencing change will look to those in power for confirmation that they are committed to the new way of doing things. It is under intense scrutiny that leaders are watched to see if their actions match their intentions. If not, the change initiative will be dismissed as “flavor of the month” and not taken seriously.

Amid all this doom and gloom, there is a bright side. You don’t have to settle for the level of leadership support you currently have. As fellow human beings, leaders are capable of being informed and influenced.

Take the following steps to determine how to best garner the support of the most influential people in your organization. more

30 July 2009 • 7:00 am

Hunkering Down, or Seizing the Day?

Newborn gazelle hunkering down for safety, Serengeti, Tanzania

Newborn gazelle hunkering down for safety, Serengeti, Tanzania (© Erika Bloom)

Reading blogs, scanning headlines, and staying in touch with old friends, it seems to me that right now there is a lot of hunkering down going on. Hunkering down, like dodging bullets and any port in the storm are vivid metaphors for the actions of people when there is danger about. During a global recession, individuals naturally think about protecting themselves and their families from the risk of unemployment, investment failure, and other threatening stuff.

Organizational behavior is a ‘soft’ science that begins with the premise that organizations exhibit collective behaviors. This too is natural. Fish and birds move in unison. Bees, ants, and other insects live in highly-ordered societies that act in concert. Wolves hunt in packs. Evolutionary biologists explain these behaviors as adaptations not just for the survival of the group, but the survival of the species.

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28 July 2009 • 7:00 am

Infallibility

Everyone makes mistakes – we often say that ‘to err is human, to forgive divine.’ And despite occasional assertions to the contrary, our leaders are in fact human. So our leaders have made mistakes, and will continue to do so for the foreseeable future.

The consequences of our leaders’ mistakes are usually greater than the mistakes of those led; through their decisions and actions, leaders cause many others to do things. This is the definition of leadership. In meritocracies, individuals rise to leadership roles because they are viewed as capable and skillful, and are therefore expected to make good decisions for the organizations they lead. But we also say that ‘mistakes will happen.’

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20 July 2009 • 7:00 am

Where are the Lunar Lessons?

Of course, today marks the 40th anniversary of the landing of the first manned spacecraft on the moon. Newspapers are filled with retrospectives, and commentators bemoan the subsequent loss of momentum for continued manned exploration of space. In the clutter of hyperbolic coverage of the accomplishment and my own recollections of the era, I’ve been struggling to find some deeper meaning to share here.

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18 July 2009 • 8:27 am

Walter Cronkite and the Erosion of Trust

walter_cronkiteReading the obituaries and fond remembrances of Walter Cronkite, who died yesterday at the age of 92, I am struck by the simplicity and power of the label “the most trusted man in America” that was his – exclusively. Cronkite was, of course, the anchor of the CBS Evening News on American television from 1962 until 1981, an era when there was no internet, no cable TV, and far fewer sources of news. In contrast to the newspapers that delivered yesterday’s news in depth,  television journalism was about immediacy – it was today’s news – and about brevity. Cronkite’s 30 minute newscast format (which had been expanded from 15 minutes shortly after Cronkite became anchor) required less detail and more thoughtful editing than any newspaper story. 

Cronkite’s passing gives us pause for reflection; on his remarkable career, on the evolution of news and information sharing during our lifetimes, and the increasing irrelevance of network television news. Like many of my generation, I especially remember Cronkite for his role in two of the moments that defined 1960s America – his genuine emotion in November 1963 when he told us that President Kennedy was dead, and his boyish excitement at the triumph of the success of the Apollo moon landing, exactly 40 years ago this week.

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8 June 2009 • 11:36 am

The Motivating Power of Measurement

Practitioners and fans of the balanced scorecard concept understand that measurement has the power to motivate behavior. The great challenge in driving change in any organization isn’t just to change the culture, but to change the behavior of individuals and groups inside the organization. Performance measurement doesn’t just tell us how well we’re doing at achieving a desired outcome, the very process of measurement and communication of measure results actually changes behavior.

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5 June 2009 • 8:03 pm

Economist: GM was ‘Disastrously Inflexible’

I want to share with you the opening lines of the lead story in tomorrow’s Economist. With no punches pulled, the issue’s cover story disects the decline and bankruptcy of GM, once the most powerful corporation in the world. The tale of GM is a sad but effective illustration of the deadly combination of long-term avoidance of change and institutionalized support of the status quo, in this case by the U.S. goverment. The article is a very worthwhile read for those engaged in strategic planning. Your comments are welcome below.

The decline and fall of General Motors

Detroitosaurus wrecks

The lessons for America and the car industry from the biggest industrial collapse ever

The demise of GM had been expected for so long that when it finally died there was barely a whimper. Wall Street was unmoved. Congress did not draw breath. America shrugged. Yet the indifference with which the news was received should not obscure its importance. A company which once sold half the cars in America, employed in its various guises as many people as the combined populations of Nevada and Delaware and was regarded as a model for managers all over the world has just gone under; and its collapse holds important lessons about management, about government and about the future of the car industry.

GM’s architect, Alfred Sloan, never had Henry Ford’s entrepreneurial or technical genius, but he had organisation. He designed his company around the needs of his customers (“a car for every purse and purpose”). The divisional structure he created in the 1920s, with professional managers reporting to a head office through strict financial monitoring, was adopted by other titans of American business, such as GE, Dupont and IBM before the model spread across the rich world.

Although this model was brilliantly designed for domination, when the environment changed it proved disastrously inflexible…

29 May 2009 • 11:35 am

Military Ship Sinks off Florida Coast

Today’s offering is a departure from the sometimes dry prose of change and strategy offered here. A story that began over sixty years ago culminated on Wednesday in the very wet Atlantic Ocean about six miles off of Key West, Florida. A story of remarkable tenacity.

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