Entrepreneurship: April 2008 Archives
The great anthropologist Edward T Hall said in his classic book The Silent Language
, culture is largely invisible to its participants. Culture, of course can be defined as those assumptions and beliefs about the nature of reality that never get questioned. There has been much said and written about corporate cultures over the years and a quick search on amazon for "the culture of business" brings up many books on doing business in other countries. But what assumptions do we make in how we organize, compensate, provide feedback, educate and orient our employees? There are many assumptions and beliefs that never get scrutinized.
And they cause big trouble.
Let's be honest, American businesses (and probably all businesses) are filled with all kinds of dysfunctions that create stress, inefficiencies, loss of productivity, waste, and stunt the development of the talent for which we pay so dearly. The assumption that is the most deadly to business today can be summarized in the five most dangerous words in business:
That's just how it is.
It's almost if instead of the ten commandments, Moses came down the mountain with the blueprint for the modern organization. An act of God determines how we do things and the dysfunctions we deal with, well, that's just how it is.
Except it isn't.
Organization design, management practices and processes are human artifacts, not holy relics. They are the product of human design processes. And anything humans design, humans can redesign.
How is it that we have fallen into the trap of assuming that when things go wrong that someone must be responsible? Why is it that when there is a lack of trust among employees (or worse, leaders) that the people are the problem? The facts are:
1) The people are uncaring, negligent, incompetent, and indifferent or
2) The people are caring, attentive, competent and committed, but are responding to the pressures and rewards of the ecosystem in which they work and to which they pay very close attention, and the dysfunctional behavior is symptomatic of the system in which they work.
What other options are there?
If you believe your people are caring and committed, then the only place to look is the system.
As Sherlock Holmes once said, "When all other alternatives are eliminated, whatever is left, no matter how improbable, must be the truth."
We do not have the luxury of putting up with the wasted efforts of people working at cross purposes in our companies. We have to reinvent business around a different model. We need to study the culture of business and realize the trap we've fallen into is that we have gotten so used to our organizational dysfunctions we assume that, "That's just how it is."
The good news is that nature is showing us the way. More on this over the next few weeks.
Meanwhile, the next time you let out a sign of exasperation about the dysfunctions in your organization and hear those five most dangerous words wander through your mind, I hope all your alarms go off. The right response is, "We created this mess, and by God we can fix it."
I did an interview yesterday for a podcast on webteks.com that will be up in a week or two but the subject was important enough that it deserves some comment and that is the relationship between technology and strategy.
This is a huge subject but the critical point here is that one can no longer think about business strategy without technology being integral to both the vision of where a company should go and the strategy of how to get it there. Technology is now inseparable from both vision and strategy.
An example: Anyone who has been to Bentonville, Arkansas has seen the windowless concrete cube that must be seven stories on a side. That is Wal*Mart's data center although data bunker might be a more apt description. If you are a vendor and subscribe to their service, you can watch your products going over the scanners in every store in their system in real time. Could Wal*Mart exist without technology? How could mere human beings keep track of $300+ billion worth of goods and the payroll details of over a million employees without technology? Not remotely possible.
Marketing (webinars, email campaigns, social networking), administration (workflow, document management), sales (CRM, videoconferencing), operations (GPS, ERP, RFID), finance (accounting, electronic banking, EDI), HR (online recruiting, learning management, human resources information systems, intranets), purchasing (extranets, EDI) are just a few of the ways that technology is infiltrating and transforming everything we do in business.
But here's the challenge. Most of the leaders of our companies can remember a time when they didn't have a PC on their desk. Many grew up at time when typing was something secretaries did, certainly not executives. The personal computer was something that got bolted on to their lives and careers, not built in. In many cases they don't have an intuitive grasp of technology. It's worth remembering that many of the younger entrepreneurs among us (and perhaps your competitors) cannot remember a time when there wasn't a PC in the house.
Another reality is that technology is a tool. Some people get tools and some don't. It is some kind of brain thing. You can watch someone who gets tools pick up any tool and just see how they are processing its capabilities and applications just by studying it's form. No judgement implied here. In his ground-breaking book Frames of Mind
, Harvard professor and MacArthur Fellow Howard Gardner postulated at least six types of intelligence. So lack of instinct for tools only means that other types of intelligence are likely to be present. However, in a technological world, the ability to grasp the strategic importance and potential applications of technology cannot be overstated.
It is critical that business leaders do a rigorous self-assessment. If technology is not your strong suit, then you must find people to team with who really get both technology and business. If you have internal IT people, in too many cases they will not be strong business or strategic thinkers. Even if you do have strategic level people who get technology, it will behoove you to team up with an outside firm that is relatively product agnostic to offer a second opinion. Technology is like anything else, people have their tastes, biases and experience that shapes their opinions, not always objectively.
If you do have an interest in and aptitude for technology, as a business leader, you need to:
- Stay current with the technology press. Subscribe to E-Week, Information Week or InfoWorld. They are likely to seem more geeky than might be desirable, but it will give you a feel for what is going on. You will also get a very visceral feel for how fast it's all moving.
- When going to your trade association or other conferences, seek out the technology workshops and vendors and grill them for what the bleeding edge people are doing. You may not want to be taking on bleeding edge projects until the technology has proved itself, but you need to know where people are pushing the envelope.
- Pay attention to technology in the popular press. It is difficult to know how Web 2.0 will wind up affecting business (and if you don't know what Web 2.0 is then you've got some homework to do) but when you consider that MySpace gets more clicks per day than Google, that there are multiplayer role playing games out there with 110 million members worldwide, these are numbers way to big to ignore.
Every leader's job is to be constantly enriching the tapestry that is his/her worldview. We can't always know the implication of any individual thread in that tapestry. But with things changing as fast as they are in today's world, the risk of winding up in an evolutionary dead end is just too great not to be pulling in information from every dimension of life.
Technology is a challenge conceptually, culturally and economically. Management luminary Peter Drucker once chastised business for being too dependent on computers. What even he failed to grasp is the real power of computer technology is that technology creates the ability to do things that cannot be done any other way. This is the real power of technology. Ironically, it is the people in the system who are slowing down the process. Technology is fundamentally changing the game. Humans as a whole just can't wrap our brains around and adapt to change as fast as technology is capable of creating new opportunities.
Therein lies both the challenge and opportunity for business leaders.
If you're not familiar with the name John W. Gardner click on the link to get a run down on his remarkable career. In 1990, he published the best book on leadership I have run across in my career, appropriately entitled On Leadership
. I read it years ago and had reason to pull it off the shelf the other day to find a quote that I had remembered that I wanted to pass on to a client. I think the quote is worth passing on to my readers as well:
To exercise leadership today, leaders must institutionalize their leadership. The issues are too technical and the pace of change too swift to expect that a leader, no matter how gifted, will be able to solve personally the major problems facing the system over which he or she presides. So we design an institutional system--a government agency, a corporation--to solve the problems, and then we select a leader who has the capacity to preside over and strengthen the system. Some leaders may be quite gifted in solving problems personally, but if they fail to institutionalize the process, their departure leaves the system crippled. They must create or strengthen systems that will survive them.
John W. Gardner
from, On Leadership


