Paradoxes, Matrices, and Global Leadership… Oh My!

This globalization thing where companies are competing throughout several cultures, languages, and economies continues to throw leaders for a loop.  The idea of working across cultures, leveraging the entire organization, and accommodating shifting priorities due to shifting global economics can present significant barriers and challenge our best leaders.  Now our strategies must consider many markets, managing internal and external resources, and enable systems-thinking approaches.  Here are some of the questions any leader might pose:

1. What style of leadership should I embrace as a global leader?
2. What skills should I embrace?
3. What organizational structure best supports effective leadership in global companies?

As leaders, we are being asked to embrace an enterprise model and manage paradox in a matrix organization – I warned you.

While the previous sentence is heavy and may make your head spin a bit, I am hearing the terms enterprise, paradox, and matrix everywhere these days.

So for those of you who are interested, dig in a little deeper and understand these concepts better.  First, let me describe these main themes.

Background

An enterprise model

This model shifts the power away from a company’s corporate headquarters and enables the field offices.  In an enterprise model, the best ideas don’t have to come from HQ Research & Development.  With an enterprise, the best ideas come from wherever the best ideas come from.  Anyone can contribute – vendor, supplier, field manager, manufacturer, business partner, business unit, etc.  The enterprise model calls for leaders to leverage a broad-base of relationships, bringing many people to the table to solve a problem or pursue an opportunity.

Manage paradox

Leaders are being asked to navigate through opportunity and change more so than managing compliance.  Our command and control style worked for managing compliance, but falls flat in managing the paradox.  Paradox represents conflicting ideas or pursuits.  A paradox is a dilemma.  An example of paradox is when you’ve got to deliver on speed and quality.  Both speed and quality are good pursuits that are oftentimes in conflict with each other.  But today, leaders are expected to manage the paradox between speed and quality to meet the business goals.

Matrix organization

A hierarchical organization has a very vertical structure.  I have a boss, who has a boss, who has a boss, who has a boss.  Vertical.  Other organizations shun the vertical hierarchy organizing purely behind a project.  These organizations bring teams together to deliver a job.  For instance, building contractor companies work this way as they bring subcontractors to a building project.  A plumber shows up, so does an electrician, and a construction worker all specializing in their particular area of focus.  Horizontal.  A matrix organization does both with employees reporting vertically up through the organization and horizontally with other team members to deliver special projects – thus the term matrix – vertical and horizontal lanes.

Bringing it all together

So, as a leader, consider these points as you become a better global leader that manages paradox effectively in a matrix organization:

For the enterprise

• Don’t just network; build relationships that you can truly leverage.
• Communicate more – share more information with more people more often.
• Be driven by progress, not politics.

For the paradox

• Develop a deeper curiosity for your business – ask what if and why not from more people more often.
• Work to a higher end game or a more important end objective.  Focus on the more inclusive value that brings system-wide value.
• Shift your perspective by embracing the Jim Collins idea of tyranny of the OR versus genius of the AND.

For the matrix

• Don’t just grow your area of specialty; broaden your skills to be more transportable across your business.
• Seek stretch assignments in your organization to help you grow your value across the organization.
• Grow comfortable having two reporting lines – one to your supervisor and one to your project lead.

Questions for you:

1. How do you feel about these three factors and their impact on a company’s effectiveness in a global marketplace?
2. Is there a better structure, philosophy, or model that you feel is better?

Please comment.

Tags: change, corporate, effective, Fast, global, Leadership, markets, matrix, multicultural, paradox, structure

An Unexpected Approach in Driving Change

Tomorrow I leave for a short vacation with my wife (no kids) that we’ve had to put off for a number of reasons this summer. We’re traveling to Sedona, Arizona where we can capture a little bit of peace and quiet and rest. I’m expecting that my days will be very predictable – sleep, eat, hike and chill. Our schedules will be far from demanding and hopefully very routine. In fact, having an ounce of the “routine” is of primary importance to me in a vacation, because only in a vacation can we experience routine in today’s constantly changing business environment.

Change is driving us, we’re not driving change. And nothing is routine or predictable, ever. Today’s champions must be comfortable with this. In fact, an IBM “Enterprise of the Future” study claims that the most extraordinary leaders must hunger for change.

I recently came across an article that caused me to, yet again, reflect on this change. However, this article, To Master Change, First Dread It, presented something new that I found interesting and right. So, with the contribution from the author, Rosabeth Moss Kanter, below are five considerations as you master change in your organization.

1. Adopt an attitude of exploration: Never stop asking questions; but rather, ask more questions of more people more often. This will heighten your own awareness of the business and create a curious and more collaborative culture capable of creativity. Creative thinking is necessary for driving healthy change.
2. Imagine the worst-case scenario of a change effort: By going all the way with your feelings and taking them to the dreaded end; only then, can you and others begin to move forward and beyond your fears. People who hate spiders quickly move beyond their fear when they are surrounded by them. For them, things can’t get worse. At that point, they begin to move forward. See Kanter’s article, To Master Change, First Dread It.
3. Prioritize progress over perfection: These are the times for leaders to play offense. As economic recovery approaches, those leaders who are playing it safe with a defensive mindset will find themselves far behind. It’s time for leaders to bring the pressure and to deliver a new level of competitive aggressiveness. Progress before perfection will bring risk. However, as companies rebound, failure loses a little bit of its bite. But those who learn quickly from failure will be smarter, faster.
4. Develop staying power (resilience): Today, it seems, nothing comes easy. I’m easily frustrated by those who promise easy success. What has always been consistent in my observations is that those who refuse to give up are the ones who own the success stories. It’s easy to bailout when change gets tough. It’s much tougher to see change through. But those who do, win.
5. Be intentional about your recovery – recharge your battery: Our organization has pushed a record number of change efforts through in 2009. Our business model has changed, we’ve created a new global brand, we’ve launched several new products and product lines and we’ve embraced new and healthy partnerships. Those who get ahead can push their intensity to the maximum. They can push their intensity to the maximum, because they’ve been intentional about their recovery. It’s time for me to recharge my battery. New change will be demanded and I need to be ready for it. So Sedona, here I come.

Onward!

Tags: change, hunger, initiatives, organizational, vacation

Organizational Champion Webcast – Ep. 08 – The Change Maker

 

 Organizational Champion Webcast - Ep. 08 - The Change Maker [42:46m]: Play Now | Play in Popup | Download

In today’s episode, we discuss our next stop on the Champion’s ECChO model, the Change-Maker. It also brings us to an interesting chicken & egg dilemma that every leader faces.  That and much more in today’s episode of The Organizational Champion Webcast.

Show Notes:

In The News:
CNN and Career Builder’s Top Ten cities for College Graduates.

Why is Change So Important to Companies?

Three Characteristics or Outcomes of the Connected Leader:

• Action-Oriented
• Resilient
• Agile

Discussion about Change Maker:

What are the steps I can take this week to transform my company/team into a Change-making Team?

1. Connect Culture to Mission
2. Open Enterprise Collaboration
3. Find the Right Measures/Measure the Right Things
   - Focus on Outcomes Rather than Outputs
4. Push Decision Making Down
5. Establish Accountability
6. Get Executive Involvement

Links:

www.championseccho.com
www.twitter.com/ThompsonOC

Tags: agile, agility, amazon, book, champion, change, help, Hill, Leadership, leading, maker, McGraw, organizational, Podcast, webcast

The End Result from Organizational Champions – Championship Companies

Champions build championship companies. What are championship companies?

Championship companies don’t compete, they win. They are most often category or industry leaders, or at least on their way to a category leadership position. Sometimes you might find a newly formed championship company in a turnaround effort. These companies are easy to spot.

1. They have great agility in an ever-changing world
2. They maximize partnerships and operate globally as an enterprise
3. Their culture is a highly diverse and performance-based culture
4. Accountability moves in all directions (evaluations happen up and down)
5. The organization operates as an interdependent system of cross-functional teams, clients, and suppliers.
6. These companies make bold plays and are disruptive by nature, often changing the game.
7. These companies are authentic – they walk the talk.
8. These companies have a genuine concern for their success and their contribution to society.

How do champions help build these championship companies?

1. They have trust and build trust within the organization by their example, their authenticity and consistency, their pure pursuits (win-win), and through accountability.
2. They are highly encouraging to others and spend a great deal of time investing in the highest potential.
3. They are inspiring through their emotional energy and drive for what’s possible.
4. They are always reminding people of the vision and connecting the dots to execution.
5. They are amazingly persevering and always get back up after a set-back (perspective).
6. They receive and give feedback regardless of hierarchy. They elevate above the politics. They have no time for politics.
7. They value the unique styles and experiences of all.
8. They personally engage. Their work has purpose, and therefore, they have a strong sense of mission.
9. The world doesn’t happen to them, they happen to the world (Jib Ellison).

Tags: agility, business, champions, championship, change, collaboration, companies, diversity, ellison, emotion, energy, enlighten, executive, interdependence, jib, Leadership, mutual, opportunities, organizational, performance, possibilities, purpose, risk, team, values, vision, win

Gravity Busting Companies

Thinking about the definition of a Champion a lot lately has continuously led me to the same question: How can a Champion truly be a Champion? Are there some characteristics that companies we effectively release champions have in common?

Organizational Champions, the upcoming book, calls these companies “gravity-busting” companies. Companies that can be grounded by the natural path of gravity, yes, but that are not necessarily bound by it. There are many examples of a company that was too bound by gravity until the market passed them by, but surely there are some common characteristics of companies that feel good about allowing their Champions to bust out of the gravity when necessary.

IBM was synonymous with typewriters. In the early 1980’s, the world stopped needing typewriters; they shifted to personal computers. IBM created the original PC that started the revolution. Fast forward to the mid-1990’s and now low-cost providers had removed all the margins from PC sales. IBM had to make a major shift in their business model again. Now, they have transformed their model into a company that provides solutions.

They have leveraged their understanding and the tools from the IT industry to provide answers to companies and people around the world. They saw the change was necessary and the leadership of IBM made the change happen. Obviously, like many other companies that shall remain nameless, IBM could have followed the path of gravity and rolled with the tide. They could have held tightly to a business model that no longer existed, made some money for the short term, but then would have inevitably met a failing business. What was it about this company, and many others, that made it a gravity-busting company?

1. Investment in Development: In the article The Self-Destructive Habits of Good Companies…and How to Break Them by Harvard Business Review, many former executives of once successful companies that recently failed were interviewed about why their companies had failed. Many of the findings centered on the leadership and being able to equip these leaders to successfully manage and maneuver through change. They cited development as a key for future success. For the company who doesn’t see leadership development as a direct impact of the bottom-line, they may want to hold on tight for they could face the risk of not sustaining their impact and success for long.

In our research, when we asked 360 groups of potential Champions to answer a set of questions, “seeking ways to improve him/herself on a regular basis” showed a 69% correlation with a Champions overall performance versus non-Champions. Champions are finding ways to improve their knowledge, skills, and abilities on a regular basis….and the company they are a part of heavily supports this.

Interestingly, Champions are encouraged to not only develop themselves but others around them. Remember, an essential characteristic of a champion is promoting and seeking the “win-win” for the team. “championing individuals on the team to promote their success” had a 78% correlation to their overall performance.

2. Clear Cut and Deeply-Felt Vision and Mission: Many companies are great at their business, but there is not clear reason why they are doing their business. For what? For Champions to see the possibilities, for them to relentlessly pursue the dreams that ultimately drive the company further, the people need to know what they are championing…or fighting for. I imagine Walmart doesn’t expect their people to change the face of business by not knowing why they are in business. They save money to live better. Simply put. It is known by every Associate at Walmart and known by every consumer of Walmart.

Again in our research, there was a 75% correlation for Champions and their leadership performance and how well they “demonstrated a clear vision for the organization”. They cannot demonstrate this vision without a clear and deeply felt vision and mission from the overall company.

3. Culture: Over the years, it has absolutely amazed me what a culture can do, or suppress, in leaders and champions. When a company shows true commitment from the very top person(s) around taking smart risk, reaching across and outside the organization to build relationships, tomorrow’s strategy, and properly developing leaders to be able to handle all of the above, change can happen and is much more sustainable. Getting caught in the gravity of “earning profit for stakeholders” doesn’t allow a Champion to think beyond immediate stakeholders and focus on the real stakeholders of business today: the employees, the environment, the economy, everything. Having a culture that promotes this type of thinking and leadership can allow a Champion to have the freedom to bust through the gravity when it makes sense to do so.

4. Out-front and Collaborative Leadership Practices: Collaboration and interdependence are two key ingredients to business today. Building relationships not only with people inside your department and team, but focusing on the company as a whole and the entire outside world, for that matter, is necessary.

“One of the things we found was that best practice companies – vigilant companies who see opportunities sooner – are led by people who are very networked and very curious. Because they’re inquisitive about what is really going on, they ask really good questions,” quoted by George Day, consultant to companies like IBM, GE and Marriott.

Another HBR article titled Match your Innovation Strategies to your Innovation Ecosystem highlights the necessity of connecting and engaging customers and stakeholders through collaboration, relationships and not hiding behind the technologies that enable us to work faster today. As they say, “When [innovation ecosystems] work, ecosystems allow firms to create value that no single firm could have created alone. The benefits of these systems – discussed under such labels as platform leadership, keystone strategies, open innovation, value networks, and hyperlinked organizations–are real and well publicized.” The ability for the leaders of a company to live out these practices and push this throughout the organization helps to enable others to see this value and do the same.

Research isn’t in yet for what exactly is required of a company to properly support and enable Champions to do their thing, but from best practices and our research, here are some essential building blocks for a company.

Tags: champions, change, corporate, culture, development, IBM, innovation, Leadership, management, network, organizational, practices, relationships

Definitions of Definitions

A few months ago, through much research, the definition for an organizational champion was created. Organizational champions are enlightened change makers who are sensationally tuned to altruistic values and relentlessly driven by possibilities.

Over the past several months, the definition has been tested, reviewed, and debated. Fortunately, the definition seems to stick and excitement continues to build as this new, fresh term is unleashed to move us beyond leadership.

However, I understand that many of the words used in the definition might need to be described further to ensure alignment and understanding. So below is a brief description of the relevant words or terms.

1. Enlightened – An enlightened person is self-aware and self-realized. They have strong convictions and values that serve to guide their life decisions and experiences.

2. Change maker – A change maker is a systems (non-linear) thinker who is able to envision change, enroll others in change, communicate across boundaries, and manage complex tasks and milestones.

3. Sensationally tuned – A sensationally tuned person is inspirational and emotionally energized. They rarely suppress their emotions, but rather, they manage their emotions to inspire others toward an idea or cause.

4. Altruistic values – A person who lives by altruistic values lives to do good, not harm. They keep selfish ambition in check for the sake of the win-win scenario and mutual benefit.

5. Driven by possibilities – A person driven by possibilities has a strong sense of wonder and curiosity of the potential. These people use this curiosity to define, refine, reshape, and transform cultures, products, or processes.

Hopefully this adds additional clarity to the definition of an Organizational Champion. I welcome your thoughts and comments.

Onward!

Tags: champion, change, enlighten, enlightened, Leadership, maker, organizational

OC Attributes Survey Findings

Thank you all for participating in the recent online survey regarding the attributes of an organizational champion. So far, we’ve captured the data from 57 responders. While we will continue to capture additional responses, this post is an update on findings from these initial responses.

Participants were asked to rank the importance of each of the attributes shown in the chart below regarding leadership today. The specific question was:

Based on organizational needs and demands in the 21st century, please rate the necessity of the following attributes of an organizational leader in order to have the most impact on organizational success on a scale from 1 to 10, with 1 being “Completely Unnecessary” and 10 being “Completely Necessary”.

The attributes and their ratings of importance are below (Click on image to enlarge.):

Not surprising, trustworthiness captures the number one spot for the most important attribute followed closely by vision. The next three attributes emphasize the importance of communicating to and enabling a complex and decentralized group of work teams toward change across many organizations and enterprises of which one has no or limited authority over.

Ok. Agree. The next question is how? Communication skills will fail if motives aren’t trusted. Therefore, motives must be pure and good. But motives will fail if you have an inability to communicate. Communication is a behavior (non-verbal) and skill (verbal). In order to be trustworthy, behaviors, skills, and motives must be trusted and understood in order to effectively move people, an organization, and a group of organizations.

Effectively maneuvering people and organizations through change seems to be at the top of the priority list as it relates to effectively leading in the 21st century.

Trusted behaviors and skills seem to fit many leadership principles. The next level of valued attributes for a leader in the 21st century according to survey responses are drive, inspiration, and authenticity. Today, inspiration can’t be manufactured as followers are smarter and leadership is constantly being tested and evaluated. It must be authentic from within. And because trustworthiness is so important, one’s authenticity must be good. There are few things more destructive than a driven and inspiring leader with a completely self-serving or evil agenda.

Therefore, the current data seems to align with the definition for an organizational champion. Organizational champions are enlightened change-makers who are sensationally tuned to altruistic values and relentlessly driven by possibilities.

(Click on image to enlarge.)

Tags: 21st, attributes, business, century, champions, change, characteristics, competencies, drive, enlightened, leader, Leadership, maker, organizational, trust, vision