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AI is Not Society’s Savior

Tuesday, March 31st, 2020

https://www.flickr.com/photos/77068017@N07/6779368830/

The chatter about how AI will change the world, take your job, out-consult the consultants, displace management, perform reviews, identify potential criminals and reoffenders, diagnose illnesses, etc., especially etc., is never ending.

AI is supposed to bring true objectivity to its many applications creating longed for change.

Yet it’s been proven over and over that AI contains the same biases that created our unfair, prejudiced world; not just in the US, but around the world.

AI is good at increasing bias in the name of efficiency and objectivity.

It is even better at automating the loss of privacy and increasing surveillance in the name of safety.

Long before AI got hot Lou Gerstner knew the solution.

Computers are magnificent tools for the realization of our dreams, but no machine can replace the human spark of spirit, compassion, love, and understanding.

Something tech has forgotten in its love affair with data and its warped view of progress.

And, of course, profit.

Image credit: safwat sayed

Leadership by What Example

Tuesday, March 24th, 2020

This is the post that I mentioned yesterday. As Wally points out so elegantly “do as I say and not as I do” doesn’t work anymore — if it ever did. (BTW, you might find this post on leadership as a profession of interest.)

“There is no leadership without leadership by example.” ~ Captain James Westley Ayers, USMC

Captain Ayers was right. There is no leadership without leadership by example. What he didn’t say is that example can be good or bad. You don’t get any choice about whether you lead by example, only about the kind of example you set.

Most writing about leadership by example assumes a good example. If you work hard, the people on your team will work hard, too. If you’re honest, they will be, too. It’s the way it is. It’s human nature.

Human nature has a baked-in capacity and desire for hierarchy. That’s why you must be careful. It’s easy to set a bad example.

People Are Watching

If you’re the person responsible for the performance of a group, the other members watch you. That’s because you have some power over them. It may not be much, but it’s there. They watch what you do as a guide to what they should do.

Everyone I know who’s been promoted in large organizations has some version of the same story. A leader does something without much thinking about it and people take it as a guide to behavior. The story I like best is the one told by Linda Hill about when she was promoted to President of General Dynamics.

She went shopping for a new suit to celebrate her promotion. The salesperson sold her a scarf with the suit and showed her an interesting way to tie the scarf. She wore the suit and the scarf, tied in that special way, her first day on the job. What happened, in Ms. Hill’s own words.

“And then I came back to work the next day and I ran into no fewer than a dozen women in the organization who have on scarves tied exactly like mine.”

Another friend tells about his first day on the job as plant manager. He made several casual comments about how they could move equipment to be more effective. The next day, when he went to the plant, he found that all his “ideas” had been implemented overnight.

Then, there was the friend who forgot to get his usual morning coffee on the way to the office on his first day in a new position. When he realized what he’d done, he said out loud to himself, in his office, “God, I wish I had some coffee.” Within minutes, three cups of coffee arrived.

Be careful what you do and what you say. People are watching.

Be Careful What You Praise

Praise is a power tool. You use it so that people will do things or keep doing things that you want them to do. We love praise. Just remember, people are listening.

You will get more of what you praise. If you praise great ideas, you will get more of them. If you praise courage, people are likely to be more courageous. But if you praise people who work long hours. other people will start putting in more time. If you praise people who answer email in the middle of the night, folks will start sleeping with their phone by the bed.

How Do You Act When Things Don’t Go Your Way?

Some things will not work the way you’d hoped. Some news will be bad news. How you act tells your team members some important things.

If you receive bad news gracefully and take it as information, people will be more likely to bring it. Even more, if you thank them for letting you know. People don’t mind being the messenger that gets praised for doing a good deed. They don’t want to be the messenger who gets killed.

When you’re interrupted it’s another opportunity to set a good example. Treat the people who interrupt you with respect and courtesy. Then, if the interruption is inappropriate, tell them why.

What You Tolerate, You Condone

It’s hard to do, but you need to address behavior or performance that violates your standards or values.

Mark Deterding tells a story from early in his career. Mark was in his mid-twenties, when he was transferred and promoted to plant manager. During his first few meetings, he was struck by the amount of swearing by the seasoned veterans on his team.

He decided he would just model the right way and his team members would change. But it didn’t work that way. They went right on swearing. Here’s the lesson Mark said he learned.

“It’s not enough to just model the way. It’s just as important to clearly and immediately address any issues that violate the values of the organization. When you allow unacceptable behaviors to go unaddressed, you send the message that the behavior is okay.”

Bottom Line

When you lead by example, you use your behavior to influence the behavior and performance of team members. Your influence is a leadership superpower. And, like any superpower, you can use it for good or for evil. What’s your choice?

Image credit: Wally Bock

Intel’s Need to Change

Tuesday, March 17th, 2020

A couple of years ago I wrote

A corporation isn’t an entity at all. It’s a group of people, with shared values, all moving in the same direction, united in a shared vision and their efforts to reach a common goal.

Lou Gerstner, who remade the culture at IBM, most famously said,

I came to see, in my time at IBM, that culture isn’t just one aspect of the game, it is the game.

The culture continued to change when Sam Palmisano took over.

…the biggest breakthroughs are a result of changing the business model and the processes and the culture.

Microsoft’s Steve Ballmer learned the hard way that culture can’t be changed by edict, whereas Satya Nadella’s approach succeeded.

Over the last year, 110,000 strong Intel has been changing under the leadership of Robert Swan, who considers the cultural change necessary for its survival.

Its culture badly needed an overhaul, and its 110,000 employees needed to confront issues more openly.

“If you have a problem, put it on the table,” said Mr. Swan, 59, who was promoted to the top job a year ago and has since embarked on a campaign to shake up the Silicon Valley giant.

His efforts remain a work in progress. But the changes — some of which lean on the precepts of Andrew S. Grove, the former Intel chief executive who coined the credo “Only the paranoid survive” — are Intel’s biggest attitude adjustment in decades.

The underlying cause is the same as Gerstner and Nadella faced at their companies: complacency.

Complacency, from years of dominating their markets, and silos, from internal distrust and myopic communications.

Intel was the same.

Intel also had deeply rooted problems reflecting its years of dominance, Mr. Swan said. Managers, complacent about competition, battled internally over budgets. Some of them hoarded information, he said.

These are the same problems that companies of all sizes face.

No matter how dominant times change and competitors can seize the day.

While success is often seen as a case of “us” vs. “them” it’s crucial to remember that “us” includes customers, partners and all parts of the company.

Image credit: Aaron Fulkerson

Golden Oldies: Ducks in a Row: Culture is Critical

Monday, March 16th, 2020

Poking through 14+ years of posts I find information that’s as useful now as when it was written.

Golden Oldies is a collection of the most relevant and timeless posts during that time.

Focus on culture isn’t new, but it used to be a lot more positive. These days I see more about toxic cultures than about good ones, but what hasn’t changed is culture’s effect on performance, productivity and staffing. For better or worse, culture is still the most potent factor for any company.

Read other Golden Oldies here.

Shawn Parr, whose company works with large corporations, such as Starbucks and MTV, on innovation wrote a meaty post called Culture Eats Strategy For Lunch.

It reminded me of something I wrote back in 2008, because the title is from a quote by Dick Clark, CEO of Merk and after rereading it I decided it’s worth reposting, so here it is.

Culture Trumps All

A post on Dave Brock’s blog led me to an article at IMD’s site called “An Unpopular Corporate Culture” and, as Dave said, it’s a must read for anyone who still thinks that corporate culture is some ephemeral concept with no real impact that consultants use to sell their services.

And a double-must for those who talk about culture’s importance, but don’t walk very well when it comes to creating a great corporate culture.

For those who prefer to put their faith in plans and strategy, hear the words of Dick Clark when he took over as CEO of Merck in 2005 and was asked about his strategy for restoring the pharmaceutical company to its former glory. “His strategy, he said, was to put strategy second and focus on changing the company’s insular, academic culture.” The fact is, culture eats strategy for lunch,” Clark explained. “You can have a good strategy in place, but if you don’t have the culture and the enabling systems that allow you to successfully implement it… the culture of the organization will defeat the strategy.””

If you’re looking for a best practice corporate culture silver bullet forget it—one size doesn’t fit all.

Rex Tillerson, CEO of ExxonMobil, describes that company’s top-down command and control culture of consistency and discipline as “the source of our competitive advantage,” and has made it a priority to reinforce it.

Meanwhile, Robert Iger and Steve Jobs, in their discussions about the acquisition of Pixar by Disney, have been concerned with avoiding an Exxon style command and control culture. Jobs says that, “Most of the time that Bob and I have spent talking about this hasn’t been about economics, it’s been about preserving the Pixar culture because we all know that’s the thing that’s going to determine the success here in the long run.””

It took Lou Gerstner a decade to remake IBM.

The key lesson Gerstner learned in his time with IBM, as he later reflected, was the importance of culture.”Until I came to IBM, I probably would have told you that culture was just one among several important elements in any organization’s makeup and success—along with vision, strategy, marketing, financials, and the like… I came to see, in my time at IBM, that culture isn’t just one aspect of the game—it is the game.”

The article is more than just additional proof for my favorite hobby horse.

The analysis of the role of employee complaints/negativity play in culture and the importance of what to keep when setting out to change a culture as opposed to what to jettison will give you new insight on your own company’s culture.

In case you still doubt the power and value of culture I hope that Dick Clark, Rex Tillerson, Robert Iger, Steve Jobs and Lou Gerstner combined with the articles in Fast Company and IMD have finally changed your mind.

Flickr image credit: Bengt Nyman

Change Too Late?

Wednesday, March 11th, 2020

https://www.flickr.com/photos/christopherdombres/20657778626/

As we saw yesterday, business is learning the hard way that walking their corporate responsibility talk is vital to their very survival.

They aren’t the only ones out of touch.

John C. Williams, the president of the Federal Reserve Bank of New York, said in a speech last month that “there is still time to avert this fate.” Moving inflation up and keeping it there could convince millennials, he said.

“In this case, it’s fortunate that the young are impressionable.”

“Fate” refers to the potential economic mayhem that could result from the high savings rate among Millennials looking to retire ASAP. “Impressionable?” I wonder how long it’s been since he actually knew any of the “young.”

Powerful men who have seen women as things to do with as they please are thinking twice in the wake of #metoo and Harvey Weinstein’s conviction. Hopefully that caution will trickle down to the rank and file bosses who still seem untouchable, although that’s unlikely.

Big Tech is no longer seen a solution to the world’s problems, but, in many cases, as their cause.

Startups are learning that public investors, whether knowledgeable or casual, are still hung up on mundane ideas like profit as opposed to their beloved EBITDA.

Founders, too, are rethinking their actions. Thanks to high profile cases, such as Travis Kalanick (Uber) and Adam Neumann (WeWork), and a much savvier workforce, visions and charisma are no longer enough.

One might look at all this and say, “the world is changing,” although a more realistic view could be summed up as “too little, too late.”

Image credit: CHRISTOPHER DOMBRES

The Downfall of Historic Corporate Responsibility

Tuesday, March 10th, 2020

I wrote yesterday’s Oldie back in 2007; it ended with this comment,

Corporate responsibility is a major buzzword these days, but it’s hard to tell whether it’s tied more closely to

  • doing what’s right;
  • doing what you can get away with; or
  • not getting caught.

It’s taken 13 years for practitioners of the second and third approaches to even consider changing.

The pressure they face to take such steps is real; the industry’s years of reliance on hypocrisy, lobbying, and misleading public relations tactics is eerily reminiscent of the approach taken by tobacco companies, and its litigation risks are set to follow a similar trajectory, with lawyers and activists framing failure to address climate change as a human-rights violation.

The changes certainly aren’t being driven by the Feds (consider the EPA’s decision to limit scientific research when drafting environmental and public health regulations), but by people.

The corporate responsibility façade is—finally, thankfully—crumbling. Activist investors and angry citizens have forced a reckoning. The Conference Board views the upcoming 2020 proxy season as a tipping point for disclosure of corporate political activity.

Even more potent are Gen Z’s and many Millennial’s attitude on choosing a place to work.

Young graduates evaluating prospective employers know that the true narrative of a corporation’s purpose can be found by reviewing who it does business with and which politicians it backs [emphasis mine].

There is no company that can survive without an adequate workforce and there is no Generation in history as suspicious and downright cynical about corporate America, including Big Tech, unicorns and startups in general than Gen Z — an attitude already infecting other generational segments.

Amazon employee reaction to CEO Jeff Bezos’ climate change initiative is a good example.

Amazon Employees for Climate Justice responded to Jeff Bezos’s recent $10 billion commitment to fight climate change by reminding their CEO that “one hand cannot give what the other is taking away.”

That two-faced approach isn’t unusual; in fact, it’s common practice — more plainly described as talk the talk, but screw the walk.

It will be difficult for that approach to continue working when it seriously limits recruiting efforts, not to mention paying customers.

Image credit: Frits Ahlefeldt

Golden Oldies: Corporate responsibility

Monday, March 9th, 2020

https://www.flickr.com/photos/willemvanbergen/271164398/

Poking through 14+ years of posts I find information that’s as useful now as when it was written.

Golden Oldies is a collection of the most relevant and timeless posts during that time.

Jack Welch died recently and Jeff Immelt is also gone from GE, but at the time, they were a good example of two sides of corporate responsibility — one who talked and the other who walked.

Read other Golden Oldies here.

If you’re a long-term reader you’ll know that I’m not a big fan of Jack Welch, while I am of Jeff Imelt—two guys with very different MAP.

Knowledge@Wharton made this comment as background in describing what Judy Hu, global executive director for advertising and branding, is doing to publicize the “new” GE.

Since becoming boss in 2001 — just a few days before September 11 — Immelt has aimed to make GE not only an innovator but also an environmental leader. In doing that, he has broken with his predecessor, Jack Welch, but also, in some ways, taken the company back to its roots. Thomas Edison, inventor of the light bulb and the phonograph, started GE in the late 1800s. More recently, under the combative, controversial Welch, it came to be known for operational excellence and a brassy pugnacity.

Welch famously declared that GE would have to be no. 1 or 2 in every line of business in which it competed and would ditch divisions where it wasn’t. And he battled state and federal regulators for years over their order that GE clean up carcinogenic waste that its factories had dumped into New York’s Hudson River. Under Immelt, the company hammered out an agreement to dredge the still-polluted river bottom. “Jeff said, ‘We’re going to fix that and move forward,’”

I find this ironically amusing after reading various articles where Welch was talking about corporate responsibility.

Corporate responsibility is a major buzzword these days, but it’s hard to tell whether it’s tied more closely to

    • doing what’s right;
    • doing what you can get away with; or
    • just not getting caught.

Image credit: Willem van Bergen

Irrational Humans / Rational Animals

Wednesday, March 4th, 2020

https://www.flickr.com/photos/146269332@N03/48571681591/

Way back when I was in elementary school I remember a teacher saying that the difference between humans and other animals was that humans were rational.

Being an overly-observant kid I was a bit skeptical of that comment.

That skepticism grew as I got older and over the last 15+ years has grown at warp speed.

Paralleling the growth of my skepticism has been research into the intelligence and rational actions of a multitude of animals.

Only two months into 2020 and it seems the world’s gone nuts.

Not just the problems/panic/hype/cons being driven by Covid-19, but all kinds of crazy happenings around the world, including the US, with a crazy election year that seems even crazier than usual.

Very little ‘rational’ anywhere in the mix.

Animals, from insects to primates, are far more rational.

Any animal living in a group needs to make decisions as a group, too. Even when they don’t agree with their companions, animals rely on one another for protection or help finding food. So they have to find ways to reach consensus about what the group should do next, or where it should live. While they may not conduct continent-spanning electoral contests like this coming Super Tuesday, species ranging from primates all the way to insects have methods for finding agreement that are surprisingly democratic.

Yet more proof that my long-ago teacher got it wrong.

Image credit: Marco Verch/trendingtopics

Role Model: Craig Newmark

Wednesday, February 26th, 2020

https://www.flickr.com/photos/cambodia4kidsorg/6298843358

Is anyone in tech truly immune from the lure of the big bucks that come from mining user data?

Not just in the short haul, but over the long haul — like 25 years?

Certainly not Google, with its management-trashed “don’t be evil.”

Or Facebook, that continually violates its users in the name of revenue.

but there is one site known to techies and the rest of us alike.

Craigslist.

Craigslist started as an email listserv in 1995, when early web enthusiasts were looking for a sense of community and DIY education. By 1996, it had become a website with job listings, apartment rentals, and personal ads. Almost as soon as the internet was becoming widely available—roughly 1 out of 5 households was online at the time—Craigslist was there to help people find roommates, look for jobs, go on blind dates, or sell used furniture.

Craigslist CEO Jim Buckmaster has been at the helm since 2001, and the founder, Craig Newmark, is still involved in the company. For years, Newmark did customer service, responding to design complaints and concerns about scams. Today, Craigslist has more monthly page visits than The New York Times or ESPN, and it’s been incredibly profitable.

Its profitability might come as a surprise to some. Many of those I spoke with thought Craigslist was a nonprofit or that it was community-run. In fact, Craigslist has always charged money for certain ads, such as job postings and classified ads. (By siphoning revenue from classified ads, Craigslist has been one reason newspapers across the country have struggled to stay in business.)

More recently, Craigslist has started charging for other kinds of ads, such as real estate listings from firms and car ads from dealers.

But regular users don’t have to pay a fee. The site doesn’t display banner ads, nor does it sell user data to third parties.

Way back when Craigslist was a startup I met Craig and found him to be a very nice, unassuming guy and it seems  he’s still the same, as reflected in a 20017 interview.

“Basically I just decided on a different business model in ’99, nothing altruistic,” he said. “While Silicon Valley VCs and bankers were telling me I should become a billionaire, I decided no one needs to be a billionaire — you should know when enough is enough. So I decided on a minimal business model, and that’s worked out pretty well. This means I can give away tremendous amounts of money to the nonprofits I believe in … I wish I had charisma, hair, and a better sense of humor,” he added in a completely deadpan voice. “I think I could be far more effective.”

Current entrepreneurs seem more focused on charisma, hair, and reaching unicorn status via multiple rounds of investment. A sense of humor is considered optional.

Image credit: Cambodia4kids.org Beth Kanter

Crooked Signs of the Times

Tuesday, February 25th, 2020

https://www.flickr.com/photos/newtown_grafitti/8353307428/

It’s a good time for crooks of all kinds.

Corporate shenanigans are a growth industry. Not since the days of the robber barons has white collar crime enjoyed such freedom.

OVER THE LAST TWO YEARS, nearly every institution of American life has taken on the unmistakable stench of moral rot.

Tax evasion siphons 10,000 times more money out of the U.S. economy every year than bank robberies. SOURCE: FBI; IRS.

And this clubbiness has human costs. Tax evasion, to pick just one crime concentrated among the wealthy, already siphons up to 10,000 times more money out of the U.S. economy every year than bank robberies. In 2017, researchers estimated that fraud by America’s largest corporations cost Americans up to $360 billion annually between 1996 and 2004.

Tech took a personal hit thanks to Warren Buffet’s partner Charlie Munger and his views on EBITDA, which stands for earnings before interest, taxes, depreciation and amortization. Tech companies love to talk about their “adjusted EBITDA,” because it makes them look profitable — even a financial loser like Uber.

“I don’t like when investment bankers talk about EBITDA, which I call bulls— earnings,” Munger said at a recent company shareholders meeting. “Think of the basic intellectual dishonesty that comes when you start talking about adjusted EBITDA. You’re almost announcing you’re a flake.”

Tech workers aren’t faring well, either, even at the most hallowed companies.

Silicon Valley has often held itself up as a highly evolved ecosystem that defies the usual capital-labor dichotomy — a place where investors, founders, executives and workers are all far too dependent on one another to make anything so crass as class warfare. The recent developments at Google have thrown that egalitarian story into doubt, showing that even in the most rarefied corners of Silicon Valley, the bosses are willing to close ranks and shut down debate when the stakes are high enough. (…)  Workers weren’t just organizing to save the world from Google. They were also organizing to save themselves from Google, where those who didn’t fit the mold of the straight, white, male techie felt they could be too easily marginalized or dismissed.

The rot isn’t just trickling down, it’s a raging torrent. Student cheating is at an all time high across grades and globally is a billion dollar market.

Philemon is part of the global industry of contract cheating in which students around the world use websites to commission their homework assignments. (…)  Lancaster began studying contract cheating more than a decade ago when he noticed one of his own students posting assignments online. “I found one of my students who was putting up my assignment up for tender on an internet site. So, people were bidding different amounts of money to complete that computer programming assignment.”

Let’s hope the handbasket we’re careening down in is well made, so we can survive our trip to Hell and come out the other side in one piece.

Image credit: Newtown grafitti

Hat tip to KG for sending me the white collar crime article.

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