Category Archives: Leadership

Companies Are Not Families

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Companies Are Not Families

GUEST POST from David Burkus

It’s unclear where the metaphor got started. In fact, it probably didn’t start as a metaphor (“we are a family”); it probably started as a simile (“we are like a family”). Some well-meaning executive somewhere described the company culture as feeling like a family. (That a high-powered CEO would feel like the paternalistic chief of anything is a dilemma for a different article).

Over time, more and more corporate leaders started using “like family” until logically one decided to take it to the next level and skip the “like” altogether boasting “we’re a family.”

But a company is not a family.

And further a company shouldn’t be a family.

When companies began to overuse the family analogy, results are rarely positive. Instead, pushing for family levels of commitment can actually do damage to the culture. And in this article, we’ll outline the ways that the “family” metaphor can lead to dysfunction. As well as the steps team leaders can take to transform their dysfunctional fake families back into the thriving work teams they were trying to build in the first place.


[Watch the Video Above or Keep Scrolling to Read]

What Happens When We’re “Family”

Misusing the “family” metaphor at work can lead to several ways employees get abused. Three in particular stand out.

1. Work/Life Boundaries Get Blurred

Many of the organizations that emphasize the family feel end up taking actions that blur the lines between work and life for most employees. This was seen much more often before the pandemic, when companies flouted free food, dry cleaning, endless parties, and all sorts of amenities designed to make life as easy as possible—as long as you never left work. But that became a problem unto itself. Employees never left work, opting to spend more and more time with their “work family” but never getting the downtime needed to be sustainably productive.

Committed Employees Get Taken Advantage Of

When companies or even team leaders overemphasize the family metaphor, the next logical step is asking for family-level committed from employees. This creates a lot of opportunities for leaders to take advantage of employees. One project after another gets taken on, without considering existing commitments and making it difficult for employees to say no. Beyond overload, over-committed employees can also be asked to commit more and more unethical actions. When the survival of the company—sorry, the family—is a stake, employees can feel pressured to use any means necessary. See Theranos or WeWork for two recent examples.

3. Departing Employees Get Labeled as Betrayers

If those employees decide the don’t like blurry boundaries (around work and life or around ethics) and choose to move on—that creates a whole new issue. In organizations that overemphasize family, it becomes easy to label to departures as a form of betrayal. It’s not uncommon for companies to cut off all communication with former employees and instruct their people to do the same. Beyond being just plain wrong, this mindset can actually limit a company—since research shows former colleagues that stay connected become potent sources new knowledge for each other and their new employers.

What’s Wrong With Team?

The intent behind labeling a company as a family might have been noble. We want a strong culture or people bonded to each other and pushing each other to new levels of performance. But if that’s what we want, what’s wrong with just calling that a team? Strong teams deliver exactly that. And whether you’re in a company that’s abusing the family metaphor or not, here’s a few actions you can take to build a stronger team.

1. Redefine Purpose

One of the reasons for choosing the family metaphor was a poorly executed attempt at bonding teams and organizations together. But just saying you’re a family doesn’t build bonds. Instead, research suggests that one of the most potent ways to bond a team is by pointing to super-ordinate goals—goals so big they require collaboration. And for organizations, the super-ordinate goal is most often the stated purpose or mission. But even here, there’s work to be done. Most organizations write lofty mission statements that are difficult for employees to connect with. It falls on team leaders to translate that lofty purpose into one that bonds and motivates. And the best way to do that is to redefine it from a big and bold “why” (why do we do what we do?) to a specific “who” (who is helped by the work that we do).

2. Encourage Boundaries

Despite what it may seem like at first, committed employees isn’t always a positive. The line between committed and over-committed people is incredibly thin. Many managers think they want people who will work until the project is done—arriving early and staying late if need be. But the truth is that in a modern economy, work is never done. So, the only way to stay sustainably productive is to make sure every employee enjoys down time as well. More and more companies are experimenting with ways to encourage boundaries such as forbidding after hours email, moving to four-day workweeks, and even paying people to take their vacation time. And results all suggest the same thing: time away from work makes work better.

3. Celebrate Departures

No matter how committed employees are some of them will move on. New opportunities present themselves. Life changes happen. And so do plenty of other reasons for an employee to look elsewhere. In the face of this inevitability, treating departures like betrayals never made sense. Instead, departures ought to be celebrated. Employees who leave on good terms ought to be seen as alumni representing the organization even in their new endeavors. In addition to information, departing employees become a powerful new source of referrals for new hires too. There is no better recruiter than a satisfied former employee now working in a new company talking with their potentially dissatisfied new colleagues. In addition, treating employees well as they’re departing has a motivating effect on the employees who stay, as they watch how positively their former colleagues were treated and trust that they’ll be treated the same one day too.

Calling your company a family, may have been a well-meaning metaphor, but it hasn’t been a very useful one. Most employees don’t want a dysfunctional family. They want a team that’s bonded through purpose and built on trust and respect. They don’t want to be seen as family one day and divorced family the next. They want to know their contribution was valuable even after they leave. They don’t want leaders who over-commit and abuse them.

They want leaders who help them do their best work ever.

Image credit: David Burkus

Originally published on LinkedIn on December 9, 2021

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The Tension Between Yes and No

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The Tension Between Yes and No

GUEST POST from Mike Shipulski

If the project could obsolete your best work, do it. Otherwise, do something else.

But first, makes sure there’s solid execution on the turn-the-crank projects that pay the bills.

If you always say yes to projects, you never have the bandwidth to do the magical work no one is asking for.

When was the last time you used your discretion to work on a project of your choosing? How do you feel about that?

If you’re told to stop the project by the most successful business unit, stomp on the accelerator.

The best projects aren’t the ones with the best ROI. The best projects are the ones that threaten success.

If you’re certain of a project’s ROI, there is no novelty.

If the project has novelty, you can’t predict the ROI. All you can do is decide if it’s worth doing.

There’s a big difference between calculating an ROI and predicting the commercial success of a project.

If your company demands certainty, you can be certain the new projects will be just like the old ones.

If the success of a project hinges on work hasn’t been done before, you may have a winner.

Say yes to predictability and you say no to novelty.

Say no to novelty and you say no to innovation.

Say no to innovation and you say no to growth.

Say no to growth and the game is over.

Say no to good projects so you can say yes to the magical ones.

Say no to ROI so you work on projects that could reinvent the industry.

If the project doesn’t excite, just say no.

Image credit: Pexels

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The Collective Growth Mindset

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The Collective Growth Mindset

GUEST POST from Stefan Lindegaard

What makes a team great? It’s a loaded question. Let’s dive in: you’re a team player, yes? But does your team prioritize collective growth and psychological safety? If so, there’s always room for further enhancement.

Here’s my perspective, based on interacting with teams globally:

1. Collective Growth Mindset: Teams thrive with curious learners, not just know-it-alls.

2. Psychological Safety: Embrace constructive feedback, hard conversations, and risk-taking in a secure environment.

3. Clear Purpose: Ensure team objectives resonate personally, answering “what’s in it for me?”

4. Trust and Transparency: Despite potential risks, mutual trust, dependability, and transparency yield substantial rewards.

5. Execution: All the above mean nothing without effective execution. Support and mandate are crucial.

6. Have Fun: A joyful environment can enhance productivity and team spirit.

Which of these elements resonates most with you? Is something missing in this list? I’m curious on your thoughts and open for a discussion on how your team can get even better.

The Collective Growth Mindset Stefan Lindegaard

Image Credit: Pexels

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3 Innovation Lessons from The Departed

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3 Innovation Lessons from The Departed

GUEST POST from Robyn Bolton

It’s award season, which means that, as a resident of Boston, I have the responsibility and privilege to talk about The Departed (pronounced: The Dep-ah-ted).  The film won the Oscar for Best Picture in 2007 and earned Martin Scorsese his first, and to date only, Academy Award for Best Director.  It is also chock-full of great lessons for corporate innovators.

Quick Synopsis

If you’ve seen The Departed, you can skip this part.  If you haven’t, why not and read on.

The Departed is loosely based on notorious Boston crime boss Whitey Bulger and features three main characters:

  1. Frank Costello (Jack Nicholson), a vicious and slightly unhinged Irish mob boss
  2. Colin Sullivan (Matt Damon), a Massachusetts State Trooper in the Special Investigation Unit (SIU) formed to catch Costello, who, in his spare time, is a spy for Costello.
  3. Billy Costigan (Leonardo DiCaprio), a police academy recruit who goes undercover to infiltrate Costello’s organization

But wait!  There’s more.  Alec Baldwin plays Colin’s SIU boss, George Ellerby.  Martin Sheen and Mark Wahlberg (who received an Oscar nomination for this role) play Billy’s Mass State Police (MSP) bosses, Captain Queenan and Staff Sergeant Dignam, respectively.  Completing the chaos is Vera Farmiga, who plays Madolyn Madden, Colin’s girlfriend and Billy’s court-ordered psychiatrist.

There’s a lot of other stuff going on, but that gives you enough context for the following quotes to hopefully make sense.

Listen to the words people use.

Colin (after Dignam refuses to hand over undercover files): I need those passwords.

Ellerby: No, you want those passwords

It’s not often that Ellerby says something useful, let alone wise, but he nails it with this one.  Colin wants the passwords to Dignam’s files on undercover agents because it will make both Colin’s official job of finding Costello’s rat in the MSP and his unofficial job of finding the MSP officer in Costello’s crew easier.  He doesn’t need the passwords, however, because, with enough time and effort, he can find the rats he’s looking for.

When we hear from customers that they want something, it’s tempting to run off and create it.  But as Ellerby points out, wants and needs are different.  Just because customers want something doesn’t mean they are willing to pay for or change their behavior to get and use it. 

Figuring out what a customer needs is difficult because it requires them to trust you enough to admit they have a problem they can’t solve.  It’s also difficult because most of us have access to solutions to our functional needs (think the bottom few layers of Maslow’s hierarchy).  As a result, the needs consumers grapple with tend to be emotional and social, and it’s far more challenging to admit those to a stranger, especially in a focus group or product-focused interview.

How you feel impacts everyone around you

Madolyn (after a counseling session): Why is the last patient of the day always the hardest?

Billy: Because you’re tired, and you don’t give a sh*t.  It’s not super-natural.

Billy and Madolyn get off to a rough start in their first counseling session, culminating in Billy asking for a prescription for Valium.  Madolyn calls him out for “drug-seeking behavior” and throws two Valiums across the desk before Billy storms out.  A few minutes later, Madolyn catches up with Billy, hands him a prescription for Valium, and asks the above question.

Being a corporate innovator can be difficult, sometimes soul-crushing work (ask the good people at Store 8).  It can also be thrilling and inspiring.  It can even be all those things in one day.  That’s what makes it tiring, even when you give a sh*t. 

Managing your energy and monitoring your behavior are leadership qualities we don’t discuss often enough.  It’s okay to be exhausted after a day of facilitating ideation sessions or intense strategic meetings.  It’s normal to be frustrated after a contentious conversation or demotivated when you get bad news.  But leaders usually find a way to not take those emotions out on their teams.  And, in the rare instance when they punish the team for someone else’s sin, they apologize and explain. 

Your job is not your identity.

Billy: Look, I just want my identity back, all right?  That’s all.

Colin: All right, I understand.  You want to be a cop again.

Billy: No, no, being a cop’s not an identity.  I want my identity back.

Towards the end of the film, Billy is tired of working undercover and reports to MSP headquarters to complete the paperwork required to expunge his criminal record and get his identity back.  That’s when Colin makes the same mistake most of us make and confuses Billy’s job with his identity.

We spend so much time at work.  We rely on our paychecks for so much.  We even introduce ourselves to new people using our job titles.  It’s easy for your job to feel like your identity, especially when your job aligns so closely with your deeply held beliefs and values.  But your job is not your identity.  You are still a Tempered Radical, even without your corporate title.   You are still an optimistic problem-solver, even when it’s been months since your last brainstorming session. 

You are an innovator, even if you don’t have a business card to prove it.

Image credit: RadioTimes.com

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Derision Means You’re Doing It Right

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Derision Means You're Doing It Right

GUEST POST from Mike Shipulski

When you see good work, say so.

When you see exceptional work, say so in public.

When you’ve had good teachers, be thankful.

When you’ve had exceptional teachers, send them a text because texts are personal.

When you do great work and no one acknowledges it, take some time to feel the pain and get back to work.

When you do great work and no one acknowledges it, take more time to feel the pain and get back to work.

When you’ve done great work, tell your family.

When you’ve done exceptional work, tell them twice.

When you do the work no one is asking for, remember your time horizon is longer than theirs.

When you do the work that threatens the successful business model, despite the anguish it creates, keep going.

When they’re not telling you to stop, try harder.

When they’re telling you to stop it’s because your work threatens. Stomp on the accelerator.

When you can’t do a project because the ROI is insufficient, that’s fine.

When no one can calculate an ROI because no one can imagine a return, that’s better.

When you give a little ground on what worked, you can improve other dimensions of goodness.

When you outlaw what worked, you can create new market segments.

When everyone understands why you’re doing it, your work may lead to something good.

When no one understands why you’re doing it, your work may reinvent the industry.

When you do new work, don’t listen to the critics. Do it despite them.

When you do work that threatens, you will be misunderstood. That’s a sign you’re on to something.

When you want credit for the work, you can’t do amazing work.

When you don’t need credit for the work, it opens up design space where the amazing work lives.

When your work makes waves, that’s nice.

When your work creates a tsunami, that’s better.

When you’re willing to forget what got you here, you can create what could be.

When you’re willing to disrespect what got you here, you can create what couldn’t be.

When your work is ignored, at least you’re doing something different.

When you and your work are derided, you’re doing it right.

Image credit: Pexels

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Good Intentions Pave the Way to Innovation Hell

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The road to hell is paved with good intentions, and nowhere is that more true than in innovation.

Good Intentions Pave the Way to Innovation Hell

GUEST POST from Robyn Bolton

That’s one of the insights I took away from InnoLead’s Q1 report on corporate innovation priorities.  The report is an eye-opening look at the impact of AI on corporate innovation as experienced by corporate entrepreneurs themselves.  But before deep diving into that topic, the report’s authors shared intriguing data about member companies’ innovation structure, leadership engagement, organizational connections, and results. Nestled amongst the charts were several that, when taken together, got my Spidey senses tingling.

61.0% of innovation teams are “directly under a high-visibility leader with a broad company focus.”

This is great because innovation needs senior leaders’ support and active engagement to survive, let alone survive for long enough to produce meaningful results. Add this to the fact that 45% of senior leadership teams frequently discuss the “progress and value of the innovation program,” and all signs point to innovation as a strategic priority.

But (you knew there was a but, didn’t you)…

If “broad company focus” means “no P&L responsibility,” we have a problem.  In every for-profit company I’ve worked for and with, people with P&L responsibility have greater power, influence, and access to resources than people without a P&L.  This division may not feel fair, but it makes sense – the people who bring in profit and revenue will always be more influential than people who represent “cost centers.”

You can see the impact of P&L owners who are, understandably, focused entirely on delivering short-term results throughout the report – 75% of companies have shifted their focus more towards near-term priorities, and 61% shifted their innovation portfolio away from Horizon 3 (also known as radical, breakthrough, or disruptive innovation).

As for all those discussions, it’d be great if they focused on walking the talk of innovation. But suppose it’s only innovation platitudes or, worse, questioning innovation’s ROI. That doesn’t bode well for the “high-visibility leader with broad company focus,” the innovation team, or the company’s culture.

71.2% of innovation teams’ customers or business partners are unaware of the team’s existence, don’t engage, or engage only occasionally.

Welcome to Innovation Island!  Where the cool people work on cool things in cool offices while all you drones slave away doing the same thing you’ve always done and making the money that pays for the cool people to do cool things in their cool offices.

I’m sure this isn’t the message the innovation team intends to send, but it’s the one received by most organizations.

When arguing for Innovation Island, managers often point to the organizational antibodies likely to swarm and kill H3/radical/breakthrough innovation and even some H2/adjacent innovations.  They’re right, and those innovations must be “protected.” But not every innovation needs protection.  H2 and certainly H1 innovations, where most portfolios are now, should be shared with the core business because the core business will eventually run them.

The bigger problem, in my opinion, is that innovation teams don’t seem to be reaching out to others in the organization.  Like the P&L owners they report to, people in the core business are busy running the business and generating revenue.  Very few have the time or energy to seek out the innovation team to discuss and explore innovation.  Companies that want to build a culture of innovation need to turn their innovators into evangelists, not residents of an island connected to the mainland by a single drawbridge.

23.4% of innovation teams are considered outsiders or actively undermined by other functions and business units.

This may not sound bad, but add to it the 55.0% that are “somewhat integrated with occasional collaboration” with other departments and business units, and you may be tempted to believe that Innovation Island would be wise to invest in a surface-to-air missile defense system.

Sadly, this perception of the innovation team as “The Others” isn’t surprising when considering that the most important tactic for building a relationship between innovation and the functions or business units is already having strong relationships and interpersonal trust (75.3% of respondents).  The least effective (4.7% of respondents) is “writing down shared objectives and expectations.”  So, no, the email you sent is not enough to win friends and influence people.

Bottom line

Well-intended companies appoint a senior executive to lead the innovation team because they’ve been told that doing so is powerful proof that innovation is a strategic priority.  They hire outsiders to inject new thinking into the organization because they know that “what got you here won’t get you there.”  They cordon the team and their work off from the rest of the organization because they read that separation is essential to preserving innovation’s disruptive nature. 

But if the senior executive doesn’t have the organizational power and influence that comes with P&L ownership, the team doesn’t have strong personal relationships with others in the business, and other functions and business units don’t know the team exists or how to interact with it, innovation will go nowhere.

But that’s better than where it could go.

Image credit: Unsplash

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Transformation is Human Not Digital

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Transformation is Human Not Digital

GUEST POST from Greg Satell

A decade ago, many still questioned the relevance of digital technology. While Internet penetration was already significant, e-commerce made up less than 6% of retail sales. Mobile and cloud computing were just getting started and artificial intelligence was still more science fiction than reality.

Yet today, all of those things are not only viable technologies, but increasingly key to effectively competing in the marketplace. Unfortunately, implementing these new technologies can be a thorny process. In fact, research by McKinsey found that fewer than one third of digital transformation efforts succeed.

For the most part, these failures have less to do with technology and more to do with managing the cultural and organizational challenges that a technological shift creates. It’s relatively easy to find a vendor that can implement a system for you, but much harder to prepare your organization to adapt to new technology. Here’s what you need to keep in mind:

Start With Business Objectives

Probably the most common trap that organizations fall into is focusing on technology rather than on specific business objectives. All too often, firms seek to “move to the cloud” or “develop AI capabilities.” That’s a sure sign you’re headed down the wrong path.

“The first question you have to ask is what business outcome you are trying to drive,” Roman Stanek, CEO at GoodData, told me. “Projects start by trying to implement a particular technical approach and not surprisingly, front-line managers and employees don’t find it useful. There’s no real adoption and no ROI.”

So start by asking yourself business related questions, such as “How could we better serve our customers through faster, more flexible technology?” or “How could artificial intelligence transform our business?” Once you understand your business goals, you can work your way back to the technology decisions.

Automate The Most Tedious Tasks First

Technological change often inspires fear. One of the most basic mistakes many firms make is to try to use new technology to try and replace humans and save costs rather than to augment and empower them to improve performance and deliver added value. This not only kills employee morale and slows adoption, it usually delivers worse results.

A much better approach is to use technology to improve the effectiveness of human employees. For example, one study cited by a White House report during the Obama Administration found that while machines had a 7.5 percent error rate in reading radiology images and humans had a 3.5% error rate, when humans combined their work with machines the error rate dropped to 0.5%.

The best way to do this is to start with the most boring and tedious tasks first. Those are what humans are worst at. Machines don’t get bored or tired. Humans, on the other hand, thrive on interaction and like to solve problems. So instead of looking to replace workers, look instead to make them more productive.

Perhaps most importantly, this approach can actually improve morale. Factory workers actively collaborate with robots they program themselves to do low-level tasks. In some cases, soldiers build such strong ties with robots that do dangerous jobs that they hold funerals for them when they “die.”

Shift Your Organization And Your Business Model

Another common mistake is to think that you can make a major technological shift and keep the rest of your business intact. For example, shifting to the cloud can save on infrastructure costs, but the benefits won’t last long if you don’t figure out how to redeploy those resources in some productive way.

For example, when I talked to Barry Libenson, Global CIO of the data giant, Experian, about his company’s shift to the cloud, he told me that “The organizational changes were pretty enormous. We had to physically reconfigure how people were organized. We also needed different skill sets in different places so that required more changes and so on.”

The shift to the cloud made Experian more agile, but more importantly it opened up new business opportunities. Its shift to the cloud allowed the company to create Ascend, a “data on demand” platform that allows its customers to make credit decisions based on near real time data, which is now its fastest growing business.

“All of the shifts we made were focused on opening up new markets and serving our customers better,” Libenson says, and that’s what helped make the technological shift so successful. Because it was focused on business results, it was that much easier to get everybody behind it, gain momentum and create a true transformation.

Humans Collaborating With Machines

Consider how different work was 20 years ago, when Windows 95 was still relatively new and only a minority of executives regularly used programs like Word, Excel and PowerPoint. We largely communicated by phone and memos typed up by secretaries. Data analysis was something you did with a pencil, paper and a desk calculator.

Clearly, the nature of work has changed. We spend far less time quietly working away at our desks and far more interacting with others. Much of the value has shifted from cognitive skills to social skills as collaboration increasingly becomes a competitive advantage. In the future, we can only expect these trends to strengthen and accelerate.

To understand what we can expect, look at what’s happened in the banking industry. When automatic teller machines first appeared in the early 1970s, most people thought it would lead to less branches and tellers, but actually just the opposite happened. Today, there are more than twice the number of bank tellers employed as in the 1970s, because they do things that machines can’t do, like solve unusual problems, show empathy and up-sell.

That’s why we need to treat any technological transformation as a human transformation. The high value work of the future will involve humans collaborating with other humans to design work for machines. Get the human part right and the technology will take care of itself.

— Article courtesy of the Digital Tonto blog and previously appeared on Inc.com
— Image credits: Dall-E via Bing

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The Innovation Enthusiasm Gap

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The Innovation Enthusiasm Gap

GUEST POST from Howard Tiersky

Getting new innovations launched within companies of any significant size typically requires buy-in from a number of different people and groups around the organization.

And moving towards a “culture” of innovation that the most successful companies create definitely requires that there be a critical mass of people with common understanding of the value of innovation.

Different Attitudes Towards Innovation

In any given enterprise there are generally many people who are hungry for the excitement of innovation and at the same time there are often many people who are resistant. Innovation, after all, inherently means change. And while change is viewed by some as exciting, challenging and fun, others view change as risky, scary and something to be avoided wherever possible.

Understanding how to segment your key stakeholders at all levels of an organization based on their appetite and attitude towards change is very helpful in devising a plan to “bring along” as many people as possible on the innovation bandwagon. All people are unique and hold certain beliefs and attitudes for a variety of reasons including their personality, past experiences, and reward constructs. But we’ll talk about one high level trend that we have found to apply in most cases regarding how to gauge the likelihood that people will have initial enthusiasm for innovation based on their level in the organization. This is not the only way of slicing the onion to predict who will favor vs resist innovation, this is just one model, but it’s the one we’ll focus on in this article.

The Innovation Enthusiasm Inverted Bell Curve

The Inverted Bell Curve

While we have no quantitative research to support this, we have generally observed an inverted bell curve trend as it applies to “Innovation Enthusiasm.” Let’s consider three basic groups:

  1. The company leadership team: Primarily the CEO, but also the other members of the leadership team (CFO, COO, COO etc) who are held directly responsible for the company’s success.
  2. The “troops”: The bottom couple of tiers of the organization that typically make up 90% of the employees
  3. The managers: Specifically the middle to upper level managers. These may be department heads, marketing executives, product managers — people who have achieved some level of status and success within the organization’s hierarchy but who are not at the top level.

So lets take these groups one at a time.

CEOs Like Innovation

The vast majority of CEOs of large enterprises recognize that innovation is essential to their company’s success and consequently essential to their success and continued tenure as CEO.

Why is this the case? A CEO’s job is to grow a company. In most cases, A CEO whose company is not growing is a CEO who is soon to be fired. And growth almost always requires innovation. Why? Well let’s be a bit simplistic and say there are two primary market conditions in which a company can find itself — a market which is not fundamentally growing and one which is.

In a market that is fundamentally not growing, the three main ways that a company can grow would be for it to:

  1. Out-innovate competitors so as to take their share
  2. Move into new product categories or businesses
  3. Acquire competitors

All three of these require some level of innovation. Number one is obviously about innovation. Number two requires a healthy amount of innovation around creation of new capabilities. And even number three, the seeming least innovative of the three, still usually requires innovation from a scale management perspective.

In a market that is fundamentally growing, sitting back and riding the “rising tide” is not necessarily the key to growth. Innovation is also critical for a company to grow in the midst of a strong market. Successfully riding the rising tide requires innovation. Why?

  • Substantial scaling requires innovation – As markets increase in size, a company may find that in order to take full advantage of the scale of the opportunity they need to be able to serve 2x, 10x, even 100x the customers or orders they did previously. That level of scaling generally requires a substantial change to how business is done. Apple has had to be just as innovative in their supply chain and distribution approach as they have had to be with their product development in order to capitalize on the success in the growing market for mobile devices.
  • Growing markets attract disruptors – If the market demand for a product or service is surging, that tends to attract investment and competitive innovation. If the market is growing but a competitor out-innovates you, you might find yourself shrinking even though the market is growing. Consider Research in Motion.

So a CEO has every reason to like innovation. Does a CEO have any reason to fear innovation? Not much. Innovation isn’t always successful, however most boards are far more patient with a CEO who is innovating and not finding success than they are with a CEO who isn’t innovating at all. Furthermore, even unsuccessful innovation gives a CEO something to tell his board and investors to keep them optimistic about the future, so even innovations that are unsuccessful in the market can, for a while at least, keep a stock price up which is, after all, a CEO’s main performance metric.

The Troops Like Innovation

We’ll call the 90%+ of employees of a given company, the “troops”. While of course nothing is absolute, troops, on the whole, tend to like innovation. Why?

  • They want the company to be successful – They can see that changing with the times and bringing new products to market will help the company. They take pride in the brand and they know that financial success and growth means job security and raises, and that their long term job security will be in danger if the company doesn’t keep up with the times.
  • It can help them serve the customer better – Troops who face customers directly most of the time want to do their job as well as possible since part of their job satisfaction can be the direct and immediate feedback they get when interacting with the end-customers.
  • It creates opportunity – For ambitious people lower down in the organization, change creates new needs and new opportunities which could accelerate their rise.
  • Its exciting and interesting – Lots of jobs are boring. Change creates interest.

There are certain types of change that can be threatening to the Troops; such as innovation via overseas outsourcing or automation that eliminates employees, so those are exceptions. There definitely are also members of the troops who tend to fear and resist change as a first reaction, however at most companies these are the minority. Properly communicated innovation initiatives that don’t have an obvious or direct threat to employees job security is generally embraced by the majority of the troops.

Managers Don’t Really Like Innovation

So if The CEO’s like innovation, and the troops like it, whats the problem? You have both the top leadership of the company and the overwhelming majority of the employees ready to embrace innovation, surely that should be enough, right? It’s not. We see over and over again CEOs who feel stuck because they are asking their “people” to innovate and its just not happening. What we find at many companies is that despite being encouraged by the CEO and top management, most middle and upper-level managers have limited reasons to be motivated to truly innovate in a dramatic way. Why is this the case?

Change creates risk. Middle and upper-level managers have the most “stake” in the status quo – they have the most to lose. Middle and upper-level managers tend to own processes and products. When new processes and products arise to potentially replace their existing fiefdom, managers will often do their best to ensure that they wind up with the same scope of responsibility, the same budget and the same number of direct reports. While its possible for managers to move up in a new order, very often a “bird in the hand” mentality among managers encourages a stance which is about defending the status quo and supporting “innovations” which inherently work within the existing structure. Ultimately, this often means only very incremental innovations.

One might think that middle and upper managers have the same loyalty to the company and shared interest in the company’s overall success, but in our experience this is not quite so. Individuals generally rise to these ranks because they are fairly savvy and that savviness generally extends to the recognition that their personal career success is not necessarily tied to the company overall. For example a product manager with a successful product at a company which overall is going down the tubes can, at the right moment, jump ship and leverage their demonstrated track record of success. However an individual who becomes marginalized by change at their current company (or simply winding up with reduced responsibilities), while they certainly can still move to another position, is all of the sudden playing defense.

Furthermore, that mindset of innovation “within the current structure” is then telegraphed to their team members. Its common for the troops to realize that the CEO wants dramatic improvements based on his communications, however if lower level employees also perceive that the head of their department is looking to not rock the boat too much, the troops may ultimately shift their loyalty to the manager who conducts their performance evaluation, decides their increases and determines promotions.

The truth is that collectively within an organization, while the CEO might be the single most powerful individual in terms of influencing the organization, the middle and upper-level managers are the most powerful layer, so if they are not embracing of innovation, they can stifle it fairly easily, no matter what the CEO’s and troops’ wishes may be.

Rogues

However, we do see in most organizations that there are “rogue” upper and middle managers who buck the trend. They are either passionate about the company or just turned on by the new and innovative to such an extent that it makes sense for them to take the risk and go “all in” in support of massive innovation. We see that typically about one in twenty middle and upper-level managers are of this type. These individuals can be a key to turning the tide, however there is great risk that these mavericks will face such pressure from their peers in an organization that they either stifle their own tendencies, or more likely, leave for an organization where the culture is more welcoming of innovation. By allowing this “weeding out” of the true innovators at the middle and upper-level management layer, the ratio of rogues can drop from one in twenty to one in a hundred or even less.

Summary

Here is a summary of the attitudinal tendencies. Remember, there are always outliers, this model is only meant to help provide understanding around how different circumstances and levels of risk and reward from change influence people differently at different levels.

CEO + Leadership Team​

Leadership TeamAttitude: Favor innovation that drives up stock price. Often has sense of urgency.

Risk: The risk is not innovating. CEOs must drive growth which usually requires innovation. If the CEO does not drive growth he, and his immediate reports, are likely to be looking for new jobs.

Reward: Even the appearance of innovation (say, an improved product pipeline) can give a CEO room to breathe with a board and investors as it creates optimism. True innovation at the Apple or WalMart level of course creates superstar CEOs.

Troops

TroopsAttitude: Tend to be open to the idea of innovation except when it is targeting outsourcing, staff reductions, or automation which risks their job.

Risk: The biggest risk in typical organizations is that “getting involved” with innovation projects might be seen as negative by the middle and upper managers by whom troops are evaluated.

Reward: The rewards are greater job security if innovation is successful as it helps the whole company as well as the ability to better serve customers an

Middle-Upper Management

ManagersAttitude: Tend to resist innovation or seek to compartmentalize innovations that do not jeopardize the organizational structure

Risk: The risk is that true innovation might change the organization so completely that their current position or its level of power, budget or scope would be jeopardized.

Reward: The potential exists for a middle/upper manager to “break out” and prove themselves a superstar by innovating. However most innovation requires collaboration with peers and if they cannot find willing partners in their peers their likelihood of failure is so high that the rewards seems unattainable. For middle/upper managers who are naturally inclined towards innovation despite the risks, the rewards are more emotional—they thrive on either improving things, helping their company or being a part of something new and exciting.

This article originally appeared on the Howard Tiersky blog
Image Credits: Howard Tiersky

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Do What’s Right, Even if It is Not Expected

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Do What's Right, Even if It is Not Expected

GUEST POST from Shep Hyken

Often, it’s just a tiny bit more effort.

Not long ago, I wrote an article and created a video on Doing More Than Expected – even when it’s not included in your job description. I used the example of the server at a restaurant who ran outside during a storm to move the outdoor furniture blowing across the patio to a safer, more secure spot. He returned to the restaurant, drenched from the rain, to applause from the guests. I jokingly asked him, “Was moving patio furniture included in your job description?” He said, “I just do what it takes.”

That’s a great attitude to have. First, you have to be the kind of person who innately knows you should do something right, even if it isn’t expected. Second, you have to be empowered to make those choices and act on them.

I’m reminded of an employee who fixed things around the office. If he saw something that wasn’t right, he made it right. For example, we had a frame with a motivational quote that we changed every week. One week later, the quote and picture frame were crooked. I noticed it, and while it bothered me a bit, it wasn’t worth saying anything about it. By the end of the day, it was fixed.

If I don’t do it, who will?

I knew who did it, but I still asked loud enough for others to hear, “Who fixed the weekly quote?” The answer, of course, was the same guy who fixed everything around the office. I thanked him and asked him why he handles things like this. He said, “If I don’t do it, who will?”

I love those seven words. “If I don’t do it, who will?” is right up there with “I just do what it takes.” These are the mindsets of people who go the extra mile, and by the way, it’s not really an extra mile. Often, it’s just a tiny bit more effort, if any. It’s just doing it because, “If they don’t, who will?”

When someone comes to work for you, whatever their role and responsibility, you hope they are good at it. If all they do is that role and don’t care to do anything else, such as fixing a crooked piece of art in a frame, you would still be happy with their work. But what if another employee did the same and, in addition, was willing to fix the metaphorical piece of art in a frame, even without being asked? Who would you rather have working for you?

Your answer is most likely the second option. That employee is the type of team member who will do whatever they can to take care of their internal and external customers. Why? Because they do what it takes and know, “If I don’t do it, who will?”

Image Credits: Shep Hyken, Unsplash

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Five Ways to Make People Feel Heard

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Five Ways to Make People Feel Heard

GUEST POST from David Burkus

One of the most common complaints among disengaged employees is about not feeling heard, not being seen or recognized for what they do, who they are and what they are experiencing. As a leader, a lot of this frustration may stem from you. When people approach you with their problems and you jump right to give advice, you may feel you’re helping their problem…but you’re not helping them feel heard. And if they don’t feel heard, they’re not really hearing your advice anyway. Other times people speak up to share a new idea and get met with a quick retort about lack of budget or previous, similar ideas that didn’t work. You may think you’re helping move the conversation along, but you’re more likely causing team members to want to move along to find a new leader.

In this article, we’ll outline how to make people feel heard through five actions leaders can take to send the message that they are listening and respecting the contribution every member of their team is making.

1. Model Active Listening

The first way to make people feel heard is to model active listening. There’s no faster way to make someone feel ignored than to…ignore them. But in an era of constant distractions fighting for our attention, it can be difficult to focus in on someone sharing, and even more difficult to communicate that you are focused. That’s where active listening comes in. Make sure you’re truly centering your attention on them, receiving what they have to say. In addition, demonstrate your attention through non-verbals like nodding and gesturing. Before you take a turn responding, try to summarize what you heard and check for understanding. As you demonstrate active listening, you’ll find your team members feel more heard, but also that they hear each other better as well.

2. Praise The Contribution

The second way to make people feel heard is to praise their contribution, even if you disagree with their idea. Recognizing and appreciating their willingness to share their thoughts fosters a sense of validation and encourages continued participation. Highlighting the positive aspects of their contribution is crucial in creating an inclusive environment. By focusing on what they did well, you acknowledge their effort and encourage them to further develop their ideas. Moreover, praising contributions can also inspire others to share their thoughts and opinions. When individuals witness positive reinforcement, they are more likely to feel comfortable expressing their own ideas, leading to a more diverse and innovative team dynamic.

3. Challenge Assumptions, Not Ideas

The third way to make people feel heard is to challenge assumptions, not ideas. There may well be ideas shared in team meetings you want to push back on or challenge. But it’s important to maintain that feeling that you’re hearing and considering those ideas. So instead of criticizing the person or the idea directly, a more constructive approach is to question the assumptions behind their ideas. This allows for a deeper understanding of their thought process and encourages open-mindedness. Avoiding personal criticism is essential in maintaining a respectful and inclusive environment. By focusing on the assumptions, you shift the conversation towards exploring different perspectives and finding common ground. Asking questions to delve into the assumptions behind the idea not only demonstrates a genuine interest in understanding their viewpoint but also encourages critical thinking and fosters a culture of collaboration.

4. Questions Before Advice

The fourth way to make people feel heard is to ask questions before offering advice. Before providing advice, it is crucial to focus on understanding the problem at hand. By asking questions, you allow the person to feel heard and understood, creating a safe space for them to share their thoughts and concerns. Asking follow-up questions helps to delve deeper into the situation, uncovering underlying factors that may not be immediately apparent. This thorough understanding enables you to provide more relevant and effective advice. Show empathy throughout the conversation, acknowledging their emotions and experiences. By creating a safe and supportive environment, individuals are more likely to open up and engage in meaningful dialogue.

5. Addition Before Subtraction

The final way to make people feel heard is to add before you subtract, meaning build upon their existing idea or comments before challenging anything you heard. When offering feedback or criticism, it is essential to always start by highlighting the positive aspects of what was shared. By acknowledging the strengths and value of their contribution, you create a more receptive atmosphere. Even better, when you build upon the idea you demonstrate how much you value it. If you must offer constructive feedback and suggestions for improvement, focus on growth and development rather than solely pointing out flaws. This approach encourages individuals to embrace feedback as an opportunity for growth rather than feeling discouraged. Building on strengths and encouraging growth fosters a positive and supportive environment. By emphasizing the positive aspects, you inspire individuals to continue sharing their ideas and contribute to the team’s success.

Making people feel heard is a fundamental aspect of effective leadership. By modeling active listening, praising contributions, questioning assumptions, asking questions before offering advice, and focusing on addition before subtraction, leaders can create an inclusive and empowering environment. When individuals feel valued and understood, they are more motivated to contribute their ideas, leading to better outcomes and improved team culture. By implementing these tactics, leaders can foster a culture where everyone can do their best work ever.

Image credit: Pexels

Originally published at https://davidburkus.com on July 10, 2023

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