How to develop a winning organisation today! (An inspiring talk)

“The real battle is not against competitors. The real battle is against ourselves. Against our bureaucracy, against our complicatedness” – Yves Morieux

Sometimes you come across a talk that really resonates.

I have read a few books, essays and articles on organizational behavior and have explored the issue of Team Development and Team Engagement here and here.

Yves Morieux

Yves Morieux

Yves Morieux’s speech was remarkable in the way that he consolidates ideas and concepts and comes up with a new approach that focuses both on Organizational Performance whilst at the same time achieving Employee Satisfaction.

Yves Morieux gave this speech at the popular TED talks’ forum and posited that the two pillars of Management i.e.

i) the hard approach of structures, processes, systems etc and

ii) the soft approach of interpersonal relationships, feelings, traits etc,

which are the mainstream ways we use to engage our employees and succeed as organizations, are obsolete.

 

He then provided a different way to look at a winning organization focusing on what he called the SMART SIMPLICITY system. He contends that, based on this system, winning organizations can be built in today’s hyper-competitive world.

The system’s main focus is to remove complexity using six basic rules.

These are:

1) Understand what your people do.

2) Reinforce Integrators

3) Increase Total Quantity of Power

4) Extend the Shadow of the Future.

5) Increase Reciprocity and

6) Reward Those who Cooperate.

The examples used during the talk and the overall concept is well thought out.

Hope you enjoy the talk:

 

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Image courtesy of http://www.ted.com

 

What is your Excalibur? Power Sources in organisational settings – an enhanced model!

“One of the things about powerful people is they have the ability to make it look easy” Ice-T

Which are the sources of power in an organisation setting? 

Are the previous studies’ outcomes regarding organisational sources of power still relevant? Will these be still relevant in the 21st century setting? 

Do the current organisational goals allow the same thinking about power to flourish or is there additional sources that we need to consider as more relevant in this age?

This article will argue that, as I have mentioned here and here, the skill-set of a good “questioner” i.e. someone that has a well-developed inquisitive mind, is the additional source of power that needs to be added to the existing lists. Let’s have a look why.

Excalibur

BRIEF HISTORY IN THE RECENT RESEARCH OF SOURCES OF POWER

1959: French and Raven’s Sources of Power:

In 1959, John French and Bertram Raven (American Sociologists) published an article called “The Bases of Power”. This is regarded as the basis for classifying power in organizations.

They identified five sources of power, namely: coercive, referent, legitimate, expert and reward power. These were defined as follows (reference from Paul Merchant’s article “5 Sources of Power in Organisations“):

 

1. “Coercive Power is derived from a person’s ability to influence others via threats, punishments or sanctions.

 

2. Referent power is derived from the interpersonal relationships that a person cultivates with other people in the organization.

 

3. Legitimate power is also known as positional power. It’s derived from the position a person holds in an organization’s hierarchy.

 

4. Expert power is derived from possessing knowledge or expertise in a particular area.

 

5. Reward power arises from the ability of a person to influence the allocation of incentives in an organization”.


1982: Hersley and Blanchard’s addition to the model

French and Raven’s model was expanded in 1982 by Hershey and Blanchard’s publication titled “Management of Organizational Behavior”.

In it, Hershey and Blanchard added two more sources of power namely:

6. Connection power which is derived from the ability to connect people and also from the width and breadth of one’s network (within and outside the organisation)

7. Information Power which derives from been able to gather, process and turn relevant data into information and knowledge. This source may or may not coincide with the Legitimate or Expert power source. The internet has flattened the information field and so, expertise and/or position may not be the only indicators for up to date and relevant / useful information nowadays.

 

SUMMARY OF POWER SOURCES

We can summarise and possibly simplify this list in the below broader categories i.e. Power because of:

i) Position (Coercive, Legitimate, Rewards, Referent),

ii) Relationships (Connection, Referent)

iii) Information (Expert, Information).


TODAY AND TOMORROW

We currently see that the 21st century brings along a different type of complexity. In the most dynamic and fast changing landscape we have ever experienced the skill sets for breaking down and working through complex issues based on critical thinking and good logical skills become more and more in demand.

The Customer base is becoming increasingly astute, as there are many more tools enabling it to compare and find out a highly customised solution.  This is the new norm.

Moreover, social media allows for information to spread rapidly throughout the world. It has been mentioned that, through social media, it now can take less than 20 minutes for an event to spread globally.

As I have discussed here, our ability to combine knowledge and invent solutions to the new challenges encountered can be a very strong differentiator in the marketplace.

“Thinking outside the square” becomes a skill heavily sought after.

Learning how to deal with new issues and organising your analysis, plans and actions towards effectively breaking down a situation and seeking solutions thus, becomes a critical skill.

Just think, when was it last that you had faced a “new” challenge, a more complex situation that you had not encountered before? Who did you seek advice from?

It is possible that you weren’t necessarily looking for a person with the power source described above but for someone who could guide your thinking through the maze of the problem’s elements and potential solutions towards effective mind mapping.

I firmly believe that this is a new source of power that is slowly evolving and establishing itself as a key for the future. We can call it “Effective Questioner” Power.

Organisations by default have positional power figures. The more successful organisations also have relational and informational-experts that deliver results.

How many though have implanted the critical thinking skill-set as a requirement in their Human Resources strategy? I believe that the successful ones of the future will.

Finally, the above plethora of power sources means that we now have more ways to differentiate and add value in an organisation. Like King Arthur who by searching and finding the Excalibur embraced a unique Power and privilege to rule, you now have to consider and reflect on your source of Power and answer the question:

What is your Excalibur?

OTHER RESOURCES 

Previous blog posts on critical thinking, logic and innovation.

  1. 8 must know question types for Effective Leaders (link here)
  2. Innovation: SCAMPER- A Practical Guide
  3. Top Tips – Avoiding Common Negotiation Pitfalls (link here)- First published in TheSource e-news
  4. 6 Additional Pitfalls to Avoid during a Negotiation – Cognitive Biases (link here)
  5. The Future of Learning – Are you part of the Learning Revolution? (link here)
  6. How to Conquer tomorrow? (link here)
  7. Conscious Communication – A paradigm for the 21st Century! (link here)
  8. In pursuit of Best Practice – Intrapreneurship (link here). First published in www.procurious.com
  9. The Leader’s Role is Setting and Keeping the Tune (link here) – Two inspirational Videos included.
  10. How to develop a winning organisation today! An inspiring talk (link here)
  11. “All Models Are Wrong, But Some of Them Are Useful” (link here) – First published in Procurement and Supply Australasia


 

 

 

The New Holy Grail – In Pursuit of Customer Success

“The problem with average is that other people are better at being average than you are”. Seth Godin

As discussed previously here and here, the future of successful businesses seems to rely more and more on the organisations’ reinventing themselves and aligning their value propositions to customized customer solutions.

Even for products of little monetary value the opportunity for customization is sometimes mind boggling e.g. think of how many options one has for buying a pair of jeans or a box of cereal.

It has now become apparent that “Customer Satisfaction” is merely the beginning, the new average, what MAY allow you to begin the interaction with the customer but, very unlikely what would win you the deal. As Seth Godin very eloquently explains with his maxim above, “other people are better at being average than you are”. So, if Customer Satisfaction is no more the right target to built a successful business on, what is?

It is becoming apparent that the future of successful business will be all about pursuing Customer Success.

Screen Shot 2015-04-11 at 9.04.08 pm THE PURSUIT OF CUSTOMER SUCCESS AS THE NEW HOLY GRAIL

I first came across this idea i.e. the trend of shifting away from targeting Customer Satisfaction towards pursuing Customer Success, in the much acclaimed and highly recommended classic book from Tom PetersRe -Imagine”. In the book, Peters views Customer Success as the necessary target of what he calls the Experience Economy.

Paraphrasing from the book:

Peters reflects on Four Different Generations (evolving as of the 1940s).

  1. 1940: The Raw-Materials economy: e.g. grandma spends about a buck to buy flour, sugar, and other raw materials. Using those raw materials, Grandma produces a birthday cake ($1)
  2. 1955: The Goods economy: e.g. Mom goes down to the local supermarket, spends a couple of bucks, and makes the cake from a packaged industrial good. Betty Crocker cake mix ($2)
  3. 1970 – The Service Economy: e.g. Bakeries are available to ordinary folks, not just the rich and super-rich. Mom heads to the bakery at birthday time and shells out $10 for a professionally baked cake ($10)
  4. 1990: The experience economy: e.g. Dad is in charge of the kid’s birthday now. And the kid lays down the law: “I am having a party, Dad. It’s going to be at XYZ venue and I’m bringing my pals.” Dad obliges and forks our a C-note for the experience. ($100)

For these four Generations the organisational measures and targets vary widely.

More specifically,

  1. In the Raw-Materials economy: The measure is the effective tangible output i.e. the Raw Quantity  (A very practical measure)
  2. In the Goods economy: this is the era of e.g. Six Sigma, process design.
  3. The Service economy: is the one where Customer Satisfaction is prevalent.
  4. The Experience economy: though moves forward to target Customer Success.

Just to make the notions of service and experience a bit clearer, think the notion of service as a transaction.

Experience though, goes further to be holistic, encompassing, transforming and emotional.

Lou Gerstner, the CEO of IBM in the 1990s, who is responsible for the complete culture change of the company declared:

“You’re headed for commodity hell if you don’t have services” Lou Gerstner

Paraphrasing Gerstner, I feel that his advice can now be updated as follows:

“You’re headed for commodity/service hell if you cannot offer memorable, emotional experiences capable of moving people enough to become your brand’s evangelists”.

Do you see this shift in your industry?

How can you translate the Pursuit of Customer Success in your business?

 

George Vrakas

 

 

Photo Courtesy of Eddi Van W.

In pursuit of Best Practice – Intrapreneurship

This article first appeared on Procurious.com as a guest blog contribution. You can find the original blog post here.

 

At its simplest, Best Practice means we are doing our job better than others. …that might translate to closing deals faster, achieving consistently good negotiated results, establishing terms and change processes that support high-performance relationships or realizing results that regularly exceed expectations. So we want to be better, faster, contributing greater value, making fewer mistakes” Notes on “What do we mean by Best Practice” by IACCM

As already elaborated here, an essential aspect for becoming successful in the future, is Creativity.

The term, Creativity, most probably conjures up images of successful Entrepreneurs that have a vision and the courage to pursue their dreams.

Outstanding Entrepreneurship is a well-defined quality behind every successful organisation.

Entrepreneurs like Richard Branson are followed and their ideas celebrated in the public domain.

However, it would most likely be better for an organisation to not only try to maintain its competitive edge on the ideas of one or even a handful of forward thinking individuals, but also find ways to tamper into the creativity and ideas of every one of its employees.

Hence, organisations should also look into the promotion and support of Intrapreneusrship.

Read on if you want to find out more about this idea, as well as, get to learn about one way to harvest the concept of Intrapreneurship as a means to pursue Best Practice within your own organisation.

Outside the box

Intrapreneurship

Jeroen de Jong and Sander Wennekers explored the concept here.According to them:

“Intrapreneurship refers to employee initiatives in organizations to undertake something new, without being asked to do so.”

There are a few companies that actively promote intrapreneurial behaviour e.g. Google  allows its employees to spend up to 20% of their time to pursue projects of their choice.3M and Intel appear to have programs towards similar promotions (see here).

However, intrapreneurship is not only about the pursuit of new products and revenue streams.

Intrapreneurship contains an element of innovation. Innovation refers to the production and implementation of useful ideas, including the adaptation of products or processes from outside an organization. As Antoncic and Hisrich highlights (here)

“Intrapreneurship is about “emergent behavioural intentions and behaviours that are related to departures from the customary ways of doing business in existing organizations”

In other terms Intrapreneurship is about the pursuit of Best Practice.

In parallel, it is also important to note that the support of the practice of Intrapreneurship also helps maintain engaged teams that always challenge themselves and evolve the organisational practices, processes and results (read more about team engagement here and here).

Ideas Charter (a simple and practical way to pursue Best Practice)

As part of an effort to promote employee engagement and Intrapreneurial behaviours, I developed the Ideas Charter.

This is a simple process which ensures that all new ideas are captured, evaluated, and then through a process that promotes and supports undertaking innovative projects, implemented.

The Ideas Charter Process works like this.

i) A champion is assigned to capture all ideas that can enhance processes or contribute to efficiency and effectiveness in a simple spreadsheet called the Ideas Charter (see template here). This is done on a non judgmental way to the perceived value of the ideas i.e. following Edward De Bono’s six hat definition – by wearing a green hat.

ii) The ideas are then evaluated and validated by a selected committee and approved or not approved for further development.

iii) If an idea is approved, then that idea is made available as a potential candidate for a future side project to be done by a team member or a team.

iv) Every two months the team is asked to select a side project to work on. Each team member is encouraged to pick one of the Ideas in the Ideas Charter and work on it. A due date is allocated.

v) At the end of the allocated period each member presents his/her side project along with a benefits analysis.

vi) The side project outcome is placed into production. This outcome  could be a change in process, a development of a business case i.e.  it could be anything that promotes efficiency or effectiveness.

vii) After 3 side projects are completed and presented, the team is given the opportunity to vote for the best one. The winner is celebrated.

This is a simple but effective way to work towards Best Practice in small teams. From personal experience this concept has the power to engage the team and also to elevate the level of efficiency and effectiveness as delivered by its outputs.

Finally, it works towards Yves Morieux’s vision elaborated in his presentation about “How to Develop a Winning organisation” – see here . Yves eloquently summarised his position as below:

“The real battle is not against competitors. The real battle is against ourselves. Against our bureaucracy, against our complicatedness” – Yves Morieux

What systems do you have in place to promote and support the pursuit of Best Practice?

 

 

 

Image courtesy of glendale inquiry