Metcalf & Associates Blog

Setting a Vision For Your Company's Future

This blog post is the first in a series of posts that explores my work with MT Business Technologies during our second year of work.  To learn more about the first year, please read the article published in Integral Leadership Review in January 2010.

I met the client at a leadership workshop on developing transformational leadership.  During our first meeting at his office, I met several members of the team, and realized, like many organizations, they were not ecstatic about working with another consultant.   The client is a successful mid-sized business that is focusing on making the changes necessary to maintain their legacy of success well into the future.  This organization will undergo significant changes from a position of strength and success.

About a year ago we had our initial vision setting workshop.   While this blog series is about the yearlong transformation process, this step actually happened prior to the workshop series during our first year of work together.  I wanted to talk about it because it sets the tone for the decisions we made and the actions that guided our first year.

To compare and contrast, I worked with a client organization that did not have a vision, just good people working hard.  What I learned over the short time I worked with this organization was that yes, they did have generally good people and yes they did work hard.  What they also did was work for differing and often competing objectives.  Some people believed their job was to provide basic service at the lowest cost.  Others thought their job was to create a competitive advantage for their company.  The result was a leadership team that did not work well together – no shock – that they thought the others were making poor decisions.  Since they had different goals, everyone was making decisions based on their view of the world. When they took a 360 degree leadership assessment, they ranked each other very poorly.  The composite score for the leaders on “achieves results” was below 10% on a scale of 1-100.  The reason this is important is individually, each of these leaders could produce solid results.  Together, they had differing views of the organization’s goals so they were at odds as a group. 

To move beyond this misalignment, the first step is to create a clear picture of the future – to look out on the horizon and identify what the company aspires to be and how they will get there.  The first questions we asked were:

1.    What is our vision?  What will we strive to become?
2.    What is our mission?  What is the clear goal we are trying to achieve by when – this is a stretch.
3.    What are our guiding principles?  What are the core beliefs and values of the organization that guide how we work together?
4.    What are the impacts and outcomes we will deliver?
Once the leadership group agrees on these items the team can move forward.  For this group, the CEO created his initial list and then worked with the company President to refine it and then worked with the leadership team to gain buy-in.  One of the key initiatives was working towards team alignment as they are refining their direction as an organization in this changing environment.  When they decided to change in vision and guiding principles, in some cases they were also committing to run their business differently. 

An example for this group is a focus on standardization.  In the past they functioned with unique processes by location.  With the implementation of an enterprise software system designed to gain efficiencies, the group also recognized the need to standardize some processes.   This type of change often means a shift in control from autonomous business leaders to a centralized corporate function.  The team carefully weighed each guiding principle and will continue to experiment over the coming year with the implications of the decisions they made up front. 

We look forward to sharing a monthly installment on the journey.  While they have been working over the past year, they are now implementing the changes across the enterprise using a series of monthly workshops that include all senior leaders.  These sessions are designed with an educational component and to generate specific deliverables required to run the business.  Our goal is to make these sessions productive as well as build on the team alignment identified with the new vision, and with each session, placing another foundation stone in the organization renovation.

Leading in Uncharted Territory – New Rule #10 - Keep an attitude of experimentation

We do not have "right answers" we have hypotheses to be tested and refined.

In our exploration of Leading in Uncharted Territory, rule 10 is: Keep an attitude of experimentation - we do not have "right answers" we have hypotheses to be tested and refined.

As we think about our current environment where the old rules no longer work and the new rules are not yet tested, we become the scientists proposing new ways of operation and testing them.  It is through our experimentation that we learn what works and what does not.  This means we let go of the idea that we should not make mistakes, rather, like we did in science class, we designed “safe experiments” where we can learn and refine our approach.

If we are paralyzed by “failure” or getting it wrong, we are likely to move slowly and be passed by competitors who have adjusted their thinking and risk tolerance to seek out small experiments and determine in advance acceptable risk.  By changing this orientation, we position ourselves to excel in uncertainty.  It gives us the impetus to explore new ways of doing business, improving our products and services, and revamp our service.  

I want to share a personal story in this area.  2008 was a challenging year for our leadership consulting business.  Our team’s concerns about our future direction caused us to really consider a basic SWOT analysis (strengths, weaknesses, opportunities, and threats).  We identified several opportunities we had not previously leveraged.  One of these ideas was to teach introductory leadership development classes at little to no cost to gain greater exposure to potential clients.  We tried several configurations and changed them pretty dramatically for the first few times.  We went from a 2 day class to a 4 hour class.  We went from market rate to break even with no compensation for our time.  This latter model worked.  During the past year we added several clients and also a critical member of our team.  We measured leads, relationships developed, clients developed, colleagues developed, strategic alliances developed.  

This experiment tested my courage and willingness to present material I was not completely comfortable with.  I was faced with the idea that we could have a class that people would not attend.  What if I build it and they do not come?  I did test with friendly clients first then moved to a broader audience.  I also had trusted colleagues attend each session and give very discerning feedback.  We wanted to know what worked and what did not so we could learn from our experiments and improve.  While I wanted people to say I am wonderful – I wanted even more to tell me where I need to refine my experiment.  

Experimentation is an important quality of later stage leadership (Level 5 Leaders).  Leaders at the Individualist and later levels seek feedback aggressively.  This is one quality that allows us to learn quickly and take corrective actions.

In addition to organizational transformation workshops, we launched this blog, developed a structured marketing plan, published several papers, and began expanding our alliances.  Some of these had a quick pay back like the classes and others did not have a visible pay back but we believe they will have a longer term payback. 

For me, I needed to try new approaches to business development.  First I evaluated cost in time and money and determined what I was willing to invest.  I measured the impact where I could and took a ruthless approach to evaluation and refinement.  This approach allowed me to make small experiments that we could afford.  Some of them were very effective immediately and others needed significant modification.  The experiments worked. We grew the business significantly and also increased our credibility.  

Where are you experimenting with your business?  Are there any areas you could benefit from additional experiments?  Do you encourage curiosity?  

Photo Credit:  Jose Kevo

By Maureen Metcalf of Metcalf & Associates

Leading in Uncharted Territory - Rule #9 - Measure, Learn and Refine

In our exploration of Leading in Uncharted Territory, rule 9 is: Measure results, learn and refine approaches (also called dynamic steering). As we think about our current environment, good measurement systems and processes are critical. We find our environment changing on a regular basis and one of the most valuable elements of success is awareness that the situation has changed and what about the current situation has changed. Once we are aware, we can formulate a response which may include a new plan or direction.

Part of the value of our measures is they tell us what has changed. The next step is for us to interpret the measures and determine what to do with them. What meaning do we make of the data? Thorough analysis is critical as it leads us to appropriate action. Just like riding a bike, as the leader of the organization, I watch the road ahead of me, position of other bikers, cars, and potholes and adjust accordingly. I carry tools to tune and fix my bike if I am going on a long trip. Measuring and adjusting is for business what steering is for bicycling. I would not consider riding blindfolded in traffic.

The final element is action. Action can mean refining our approach or creating a new plan or direction. In changing times the idea that we "plan the work and work the plan" still applies as long as the plan still makes sense. If we execute an obsolete plan with absolute precision, we still end up at a destination that does not work for us.

I worked with a client implementing an Enterprise Resource Planning system (ERP). As with all major software implementations, this one required changes in how people did their jobs. Continuing the old process would lead to serious business disruption . We started measuring the new behavior well before the system went live and reported it weekly in the leadership team meetings (there would be a very high impact for failure hence high level meeting discussions). we began to see behavior changes rather quickly when the business unit President was in the review meetings. As we monitored the changes over about a month we began to see significant variation. The statistics were telling us that the lead people had changed behavior but the people who performed this key role as back-ups had not been trained properly. We were able to quickly take corrective action in the form of training and the numbers reflected the improved results. The final outcome was the new behavior took hold before the implementation and there were no disruptions.

Measures can range from looking at what has happened like our performance against plan or anticipating what needs to change and measuring and monitoring tests or pilots of new solutions.

 

What are you measuring? Does your analysis drive to quick and appropriate action? Is there an opportunity to improve your dynamic steering?

 

Photo credit by: blank2industrial

By Maureen Metcalf of Metcalf & Associates, Inc.

Leading in Uncharted Territory - Rule #8 - Create Flexible Responsive Organizations

In our exploration of Leading in Uncharted Territory, rule 8 is: Create flexible responsive organizations.   As I think of leading during times of uncertainty one thing that comes to mind is selecting people who will be able to navigate the transitions we will likely face. This means having a selection process that helps to determine a person’s ability to manage change. Ask questions such as: Tell me about a change that happened in your organization in the past.

• What was your role?
• How did you support the success?
• Did you do anything to resist the change implementation What did you learn from the process? How will this knowledge impact your action in the future?
• What would you like to see from the new organizations leaders to be comfortable with change in the future?

For the company, it is also important to make sure the organizational structure has flexibility. What this can mean is:

• Using a contingent work force to navigate fluctuations in work load to minimize risk of hiring and firing;
• Outsource non-core work and leaving the staff building and management to outsource providers allows you to focus on building skills in your core areas.. An example of this includes managing facilities, data centers, web development and many others. This concept seems to be generally accepted in several fields like law and accounting and may be extended to other areas;
• Structure can also support flexibility. An example of this might be a client service team where all employees on the team support one another in meeting the client needs. In some cases this will break down silos and reduce staffing needs. Any structure must be carefully considered and aligned to the organizations specific needs;
• Transparency supports flexibility. The more employees know about the overall business and the environment, the more likely they are to take responsibility for their own growth and success. If we assume people are reasonable, more information will enable them to make better decisions, thus supporting organizational ability to respond to market conditions;
• Identify key behavioral changes that need to happen to support the new organization. Make a competition out of employees developing those skills where they compete with one another for recognition. Behavioral change can be fun and promote organizational success.

A practical example: I was working with a client who was implementing a great deal of change in their organization. We created something that looked like a comedian top 10 behavioral changes. Each week, leaders of the organization reported their success against key performance measures to the leadership team. Making the change became a source of pride. They created not only new behaviors but a system that supported ongoing behavioral change and an enjoyable culture.

A note about the photo - being flexible is a team activity - it is not only the job of the leader. Everyone's contribution is important. While my example talked about leaders, anyone can disrupt process and resistance can come from interesting and unexpected places.

Photocredit by Ash-rly

By Maureen Metcalf at Metcalf & Associates, Inc

Building Resilience So You Can Thrive in Turbulent Times

Resilience is a hot topic these days as people try to figure out how to bend with the winds of economic change without breaking. I’m reading articles that link resilience with positive self-image, courage and commitment, emotional maturity and integrity.

The challenge seems to be what to do to develop resilience when yours is getting low.

To start down the path of building your resilience and ability to deal with today’s frantic pace of change and stress, there are three practices you can start building immediately.

Sleep, Eat, and Be Active

The foundation for resilience is somatic strength, keeping your body healthy and contributing to your energy instead of draining it. For decades we have been hearing about basic stress management techniques: get enough sleep, exercise, eat well. Guess what? It’s all still true.

The latest research tells us that normal adults need 7 – 10 hours of sleep a night, as in every night. No macho points for surviving on 4 -5 hours. Sooner or later it will catch up with you as reduced immune strength, compromised ability to concentrate, anxiety. The list goes on...

Eating well means keeping caffeine to 1-2 cups/cans a day (you won’t need it if you have been getting enough sleep), cutting trans-fats and high fructose corn syrup (it’s in everything packaged), and eating fruit and fresh vegetables every day. And of course, if you still smoke, enroll in a smoking cessation group right now.

The balance of this post is located at the blog of our good friend and strategic partner - thoughtLEADERS, LLC. Click here to read further.

By Belinda Gore at Metcalf & Associates, Inc.

Navigating in Uncharted Territory - Rule #7 - Communicate, Communicate, Communicate

In our exploration of Leading in Uncharted Territory, rule 6 is: Communicate, Communicate, Communicate.

As I think about leading in uncharted territory, I feel a bit like hiking and climbing. I do it, enjoy it, and I move very slowly. It is not very pretty - trying routes, making changes, then trying another. Eventually, I reach my destination and it is always beautiful, being on the top of the mountain.

 

So, what does this have to do with communication? Leading in this environment is fraught with challenges, as leaders we cannot always see our path clearly. We are trying new approaches to determine what will work the best. At the same time, employees are observing leaders to determine if the path they are being lead down is safe.

  During this time when we are the least confident, employees oftenwant more information because they are also less confident. What we communicate and how often needs to change. The number 1 message they need to know is- we are paying attention and they can trust us. Key change messages should convey:

• I am paying attention to the situation
• We need to make changes - what we are doing now may not serve us in the future
• We have a vision for our future
• We are trying new approaches and we want your input and cooperation
• We will refine our approach as we go forward to respond to changing conditions - expect these changes to be ongoing
• We will succeed

The message needs to be conveyed in a way that listeners can hear. The message must be repeated and repeated. Key themes should be woven through all communications to ensure listeners can connect the change program(s) to their daily jobs and organizational success.

Communication should be designed to inspire trust in the process. We are in new territory, things will go wrong as we learn and we will get there safely. Like my rock climbing example, progress can be sporadic, tiring, and less than graceful. The view from the top is always worth the climb - you cannot see it unless you take the journey. Come with me, the leader, on this journey and you will get to see the sun rise over the red rocks - the most amazing view and only seen live if you get up early and take a tough and physically exhausting climb.

I worked with a client now who communicated his new vision for how the organization would function after they implemented an Enterprise Resource Planning (ERP) System - Oracle. It became his mantra. He wove these ideas into every discussion. People understood it at different rates and he realized that. He modified his messages to be relevant to each audience. He was patient - while he has talked about this change hundreds of times, it is often the first time for the people he is talking with. He had a rule of 7 - if you communicate 7x7 people will start to understand and adopt what you are proposing. His system was successfully implemented. His communication was clear and consistent and ongoing. He was even filmed by Oracle talking about their system and the implementation.

We all read about the importance of communication. It is critical that the leader be visible during significant changes.. If you do not have the answer, let people know you are working on it. We’ve learned over the years was to wait until we had plans and answers before communicating.. In times of uncertainty, employees want to know what is happening. While this approach is different than what we did in the past - it is important that employees hear what is going on so they can set their expectations and manage their own lives given the information you are sharing. For the most part, they are competent people who want the company to succeed. Trust them enough to give them the information they need to stay engaged and committed to you. If you were in their spot, what would you want to hear to stay engaged and committed?

Photo credit by by Erik Charlton

By Maureen Metcalf of Metcalf & Associates, Inc

Six Critical Steps to Preventing Failure During Organizational Transformation

For anyone who has led an organizational change, we know it can be complicated at best and at worst; it can limit your career and have a significant adverse impact on your business. In 2008, a McKinsey survey of 3,199 executives around the world found, as Kotter did in 1998, that only one transformation in three succeeds. Other studies over the past ten years reveal remarkably similar results. So, in times of profound change, where business success hinges on the leader and the organization being able to change quickly and effectively, what should we be doing to increase our likelihood of success? I focus on the impact of leadership as well as the systems and processes being used to implement the change. From Jim Collins book Good to Great and others, we have learned that Level 5 Leaders are more likely to successfully create long term sustainable change that moves the company to “greatness.”   The balance of this post is located at the blog of our good friend and strategic partner - thoughtLEADERS, LLC. Click here to read further.   Photocredit: by lepiaf.geo By Maureen Metcalf of Metcalf & Associates, Inc

Navigating in Uncharted Territory - Rule #6 - Use Discipline and Rigor While Remaining Nimble

In our exploration of Leading in Uncharted Territory, rule 6 is: use discipline and rigor while remaining nimble.   One of the hallmarks of our time is the level of uncertainty and the unpredictability of our environment. The stock market chase by over 1,000 points in a day. The swings from day to day are often much broader than any time in history. We face a broad range of factors that can significantly impact us and we are not able to predict and control our environment. Factors such as these significantly impact us in multiple ways. So the question for leaders becomes - how do I make good decisions and run my business effectively? One recommendation I make with regard to decision making is to move from predict and manage to hypothesize and experiment. Basically move toward the scientific method.   The steps of the scientific method are to:

• Ask a Question
• Do Background Research
• Construct a Hypothesis
• Test Your Hypothesis by Doing an Experiment
• Analyze Your Data and Draw a Conclusion
• Communicate Your Results

This approach is beneficial because we can no longer rely on time tested rules and best practices to resolve our challenges. We are truly in a time where new thinking is required to solve our problems. In that context - developing a hypothesis and testing it is likely to help us determine which approaches will work. This process is called often called Structured Thought and Communication in the business community.

So to our recommendation - rigorous and nimble. Rigorous - use data and evidence to prove our hypothesis. That seems to be a hallmark of good science. So how does that connect to nimble? Because the environment is so fluid - solutions we devise today will likely need to be modified in the near future. It is important to create solutions and approaches that can flex and flow with the environment we live in.

We have moved out of a world where we can create long term solutions to some of our challenges. While we need to use a long term vision, many of our solutions will be short term. With the rate of technological advancements now and those predicted in the future - we expect exponential acceleration which means today's solutions will become obsolete sooner than ever before.

These factors combined require us as leaders to balance long term health and stability of our organizations with shortened lifecyle of products and technologies.

An example of this is MT Business Technologies, a company implementing a technology solution to address current and future challenges. They have identified a cost effective solution to address the rapid pace of change by using a thin client approach. Basically they have all key applications sitting on the main server and not the desktop. This approach allows them to be agile in their response short term and long term. The cost is lower and they are now able to respond quickly to environmental changes. They tested this hypothesis by researching the data and conducting a pilot. They analyzed the results and found their hypothesis to be true. They have communicated and gained approval for their implementation. This solution will allow them to be nimble as an organization and concurrently offer better internal performance to their staff. This is a great example of rigorous and nimble.

photo credit: NIOSH - Nat Inst for Occupational Safety & Health's photostream

By Maureen Metcalf of Metcalf & Associates

Managing in Uncharted Territory - Rule #5 - Develop Comprehensive Solutions

In our exploration of Leading in Uncharted Territory, rule 5 is: develop comprehensive solutions for your opportunities that include people, process, and technology. Organizations being much more complex than machines because they are filled with people with agendas and human needs. While the machine image may still work, it is important to remember that what appears to be a small change on the surface, most likely impacts people, the business processes or way of getting things done, and the technology (computers, or actual machines).

 

While we often show the change process as a linear set of activities, my experience with clients tells me that while the emphasis may be placed primarily on either of the 3, people, process or technology, that a change in one leads to a change in all three areas.

 

Imagine the importance of helping employees understand how their jobs will change when a new computer system is installed and corresponding processes change. This is what I see overlooked the most often.

 

 

Another challenge is documenting processes. While this would seem to take time to create and maintain, imagine the disconnects that go undetected. Additionally, what is the impact to your business when a person misses work or leaves the organization.

A simple example of what I do with clients is to get everyone in a room together before we launch a change. We lay the detailed steps of the change out on a spreadsheet and project it on the wall. We than walk through:

• Who will perform each step?
• What do they need to make the changes (training, practice)?
• Does this change impact staffing levels?
• Can we stop doing anything as a result of this change?
• Who needs to be informed about the change beyond those doing the work?
• Does the change as proposed work?
• What other impacts do you see that we may not have noticed yet?

I have used this process with several clients who are implementing complex computer system changes and it seems to help supervisors and employees work through the changes, identify issues, and feel prepared to successfully accomplish their jobs when the change actually happens. An added benefit - they get to participate in the process and influence the success.

 

These sessions are scaled to meet the size of the change, for minor changes, they can happen in a very short meeting. For larger changes, the participants dedicate more time. The amount of risk will also impact the amount of time invested in this type of meeting. Photo credit: Joelmutate

 

By Maureen Metcalf of Metcalf & Associates, Inc

Thriving in Turbulent Times - New Workshop Series

We are pleased to announce the first 2 workshops that focus on giving leaders practical tools that will impact your work immediately.

    * Building Transformation Leadership led by Maureen Metcalf

    * Building Resilience led by Belinda Gore, Ph.D.

Workshop - Building Transformational Leadership

March 5, 2009 $100/person

Transformational leadership can consistently transform organizations in the face of ongoing change and even adversity. This is the leadership referenced by Jim Collins in Good to Great as "Level 5 Leadership". In these turbulent times, nearly every organization is facing the need to transform to survive or to thrive. Help your leaders transform themselves and your organization! In this workshop you will:

    * Understand Transformational Leadership (Level 5 Leadership, Jim Collins, Good to Great)

    * Understand your leadership level

    * Identify your leadership goal

    * Determine top priority and create personal action plan

    * Determine top organizational priority to improve organizational leadership effectiveness

At the end of the day you will leave with a workable plan to use transformational leadership to help you achieve your goals! What others are saying about this program:

    * "Now I have a framework going forward. What an exciting future"
    * "Topic and presentation was extremely interesting and relevant to my current situation."
    * "Leaving here today I have a clearer understanding of myself and my future journey of growth."

Workshop - Building Resilience

March 6, 2009 $100/person

Resilience is the ability to adapt and thrive in the face of multiple, ongoing changes and even adversity. In these turbulent times, nearly everyone is facing the need for resilience. Make this current business environment work FOR you! In this workshop you will learn tools and strategies to:

    * Respond to unexpected change with confidence and flexibility

    * Challenge the beliefs and assumptions that drive your decisions and actions   

    * Re-tool your thinking to support resilience  

    * Focus, focus, focus

    * Balance skills with level of challenge

    * Communicate with clarity

At the end of the day you will be able to leave with a workable plan to use turbulence to actually help you achieve your goals! What others are saying about this program:

    * "Great instructor, creative approach, great discussion."
    * "Excellent course!! I'm taking with me several good action items."
    * "Very helpful. I plan to use some of these tools in both job and personal life."

We hope to see you at there!

By Maureen Metcalf of Metcalf & Associates, Inc

Photo Credit Zest-pk