8/21/2005

Broad Slicing the Organization (or Country!)

Filed under: Corporate Culture, General — Larry Miller @ 11:35 am

In his book Blink, Malcolm Gladwell used the term thin slicing to describe a focused intuitive knowledge that allowed an apparent unthinking judgment. There is another kind of judgment, another intuitive mental faculty that is even more important quality of leaders in today’s world. I will simply call it broad slicing, the ability to slice across an organization and see the connections, the need for solutions that deal, not with a very narrow area of knowledge, but with knowledge of the whole, knowledge that unifies effort. The behavior of great leaders is rarely that of thin slicing, it is much more commonly that of creating broad unifying effect, the ability to create broad slices that serve as mechanisms around which diverse groups and individuals can form unified effort. It is the unity of effort, as every great coach or general has understood, that wins in the competitive field.

It is broad slicing that is the glue that holds companies and societies together in a unified whole. The failure to recognize or create broad slices is one reason both companies and societies fall apart. Corporate strategy went through a period during which portfolio management was the preferred corporate strategy. This was the logical (or illogical) basis for conglomerates such as ITT under Harold Geneen who believed that there didn’t need to be any link between business units owned by a corporation other than financial. These corporations were, essentially, diversified mutual funds. It is generally accepted that this approach depleted shareholder value. The absence of broad slices resulted in division and disintegration. The added value of a conglomerate today, a multi-business unit corporation, is precisely in the sharing of core competencies or capabilities - some core technology or market that can add value across business units. Devotion to common markets or technologies are broad slices that give a reason for unified effort.

In the political world it is the difference between the liberation of Poland and the liberation of Yugoslovia, and possibly Iraq. The people of Poland were keenly aware of the broad slices that linked them as a people - language, religion, common history and culture. In Yugoslovia these unifying mechanisms operated in reverse and we know the result. Today we are witnessing the struggle to create broad slices across Iraq that can hold the three primary populations together in some form of unified whole. Any country must be held together by either authoritarian force (former Iraq, Soviet Union, etc.) or by the existence or creation of broad slices, common desires, interests, needs, philosophy or religion, that create an internal desire for affiliation.

Great leaders, from Alexander to George Washington, have had an intuitive, if not intellectual, understanding of the need to define and reinforce broad slices. George Washington, in his Farewell Address, as well as other Founding Fathers, spoke eloquently about the need to focus on unifying themes, rather than focusing on the divisive force of parties - “Let me now take a more comprehensive view, and warn you in the most solemn manner against the baneful effect of the Spirit of Party, generally.” “This spirit, unfortunately, is inseparable from our nature, having its root in the strongest passions of the human Mind. It exists under different shapes in all Governments, more or less stifled, controlled, or repressed; but, in those of the popular form it is seen in its greatest rankness and is truly their worst enemy.”

What Washington recognized is that political parties tend to focus on narrow interests that have strong appeal to the emotions (gun control, abortion, etc.) and by that very process they will divide themselves from others whom they then demonize. This process is the process of division and disintegration, the root cause of the decline of all great cultures and the very process Washington feared enough to make the central theme in his closing remarks.

What are the broad slices that might serve as mechanisms of united effort in our country?

If the country were a business it would be focused on developing its core competencies as its primary source of competitive advantage and its productivity or efficiency.

What are the core competencies of our nation? This should be the subject of a healthy debate, just as it is in companies. One option is the following: we have succeeded in global competition because of our ability to develop new technologies and the entrepreneurial application of those technologies. That is our core competence and it is based on the quality of our education system and government support of research. (Yes… semi-conductors, the Internet, bio-technology and other key technologies are the result of government supported efforts!) This is not a “left” or “right” issue, it is an issue of the health and wealth of our nation. Which leader is focusing on the positive process of developing the mechanisms of wealth creation in this country, versus the defensive mindset of repelling enemies, some real and some imagined?

Alan Greenspan is rightly focused on productivity as a key sign of the health of our economy. However, he is focused primarily on labor productivity rather than the productivity of energy or capital. Making energy utilization more efficient is an obvious need, if not a crisis, that again is neither liberal nor conservative. General Electric has made the business of alternative energy and energy efficiency a primary corporate strategy. This is a broad slice through GE and the same unifying strategy can apply to the nation. We should be judging our leaders based on their ability to develop workable and thorough strategy for the productivity of all energy resources in our country.

Both the development of our core competencies and promotion of efficient use of resources could be broad slices upon which national leaders could unite energy and effort. Just as corporate leaders do well by focusing on the linking, unifying broad slices that result in competitive success, our political leaders would do well to focus less on the sources of division and more on the sources of common interest and affiliation. But, for this to happen the press and the American public need to be less obsessed by the distinctions between left and right, much of which is imaginary, and focus more on the very real nature of leadership that creates unity of energy and effort across a diverse culture.

8/3/2005

Becoming Authentic - Understanding High Performance

Filed under: Corporate Culture — Larry Miller @ 1:50 pm

Positive psychology is the study of why folks are happy and successful. Where traditional psychology studied mental illness, or negative deviation from what is viewed as normal behavior, positive psychology studies positive deviation from the norm. At least as much, if not more, can be learned by studying positive deviation, or why folks are just insanely happy or successful. Let’s face it - normal isn’t so hot! It certainly is not a goal to work toward.

Positive organizational scholarship
is the study of positive psychology in organizations. Appreciative Inquiry is one set of techniques that has emerged from this scholarship.

In preparation for speaking at their annual sales conference, I have recently been studying the highest performing salesman (yes, they are all men) at Mack Truck. As a form of Appreciative Inquiry I have been “inquiring” into why the best of their eight hundred sales people consistently outperform the others. I have interviewed them regarding their habits, or the routine way they go about their work. So, why are they so good? The answer contradicts many of the sales techniques that are commonly taught in sales training. They don’t fit the mold.

What each of these folks are is authentic. They are entirely natural, comfortable in their own skin. None of them can describe their closing technique or how they keep score on their performance. But, they are all “truck guys”. They love trucks, they love Mack trucks. They genuinely care about their customers to the point of sometimes advising them NOT to buy trucks when the business need doesn’t justify it. And, they fit perfectly into the culture of their part of the country and their customers. There is no sense of hard sell, hard push, or any manic motivation to succeed. Rather, there is a sense of “flow”, the natural performance of a process that is so well practiced that it happens with little deliberation.

What does it mean to be authentic? It means to be yourself, to be whole, to be engaged in work that fulfills the need for developing your natural talents; the need for financial success; and the need to do something worthy. These are the three components, the three slices of bread, that when put together result in both financial success and personal happiness.

Authentic performance is achieving your potential, utilizing your natural talents and abilities, and in passionate pursuit of goals you believe to be worthy.

Each of these two elements are critical: 1) achieving your potential, your natural talents and abilities; b) passionate pursuit of goals you believe to be worthy.

Mack’s best salesman know themselves. Each of them are different in their style, pattern of communication or the specific tools they use. But, they are the same in that each recognized their own talents and utilized those talents. I was particularly impressed by one who acknowledged that he had a life long stuttering problem. You would think he wouldn’t go into sales. But, on the contrary, he had learned to speak in a slow and deliberate manner that controlled his stuttering and, he felt, conveyed a sincere listening and respect for the other person. He turned what could be a liability into an asset. That is knowing your own talents and abilities.

And, they all had a clear sense of purpose - both serving their families, their communities, and their customers. I am certain that the genuiness of these motivations among the dozen best salesman was far higher than among the norm.

Discovering and encouraging authentic performance is one of the next challenges for our organizations.

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