Tag: leadership


Speed matters in business.
Many executives today are leading high-growth companies and startups. Velocity-driven organizations and type A executives work hard at delivering new standards of performance and handling increased levels of change and creative tension without sacrificing trust or momentum. That is no accident though. These high-velocity and high-trust organizations are consistently working on their team dynamics and culture.
Most of us are only aware of our culture and its impact on our team’s performance when we have to adapt to something. Culture matters when there’s a problem (e.g., explosive change) – otherwise it’s just there. (paraphrased from E.Schein)
Sometimes, though, (even for business juggernauts) the continued pressure to make history and deliver on deadlines and commitments may lead to breakdowns. Despite the consistent good intentions and impressive accomplishments of the individuals on the team, team members may understandably get caught up in a “swirl” of counterproductive, cognitive conflict (causing drag forces) and affective conflict (causing drama/gravitational forces).
In physics, velocity, efficiency and momentum are negatively affected by drag. The faster you go, the more drag you create. Even tiny changes in drag can create large differences in performance.
At best, the “drama, drag and swirl” may be:

  • Distracting and diverting the team’s energy away from more value-added activities.
  • Decelerating the potential for additional momentum (i.e., maximum velocity).

At worst, the “drama, drag and swirl” may be:

  • Undermining the team’s effectiveness and ultimate success of their business objective.

Approximately $350 billion U.S in lost productivity occurs annually in organizations, due to negative behavior (e.g. swirl, toxicity) according to Gallup research. As much as 40 percent of manager’s time is spent dealing with conflict, drama and unhealthy tension another research indicates. (Source: http://powerofted.com/the-costs-of-drama/)
Everyday (default/reactive) methods for responding to this kind of tension/drag may not help regain collaborative momentum or help your organization recover quickly enough. In these cases, gravity becomes the overpowering force compelling your organization to a complete stop.
Instead of default methods of diffusing conflict, high-velocity teams and cultures practice staying above the drama, drag and swirl more effectively, with a shared set of drag-reducing mechanisms (e.g., tools, skills, mindsets). To maintain speed, they practice with these tools (see chart below) consistently — especially at critical moments when it doesn’t seem like there is time to stop and practice.

What is creating drama, drag and swirl inside of your organization?

As leaders, we have the power to transform the culture of our organizations. The culture, or the general consensus of “how we do things around here,” affects our business in every sense. It affects productivity, effectiveness, employee satisfaction and even our economic bottom line.
A key way each of us can make meaningful change in the culture is through our everyday interactions — one conversation at a time. We can lift the spirits and energy of our people and empower them to “be the change” of a conscious culture, without fear of failure, judgment or repercussion.
And if that’s not enough, there’s plenty of evidence that this will multiply your business results tenfold.


Source: Firms of Endearment by Raj Sisodia

What do leaders want?
Leaders at all levels, be they a team, function, regional or company leader, all want to solve their business problems with as little distraction and as QUICKLY as possible. While their particular focus could be productivity issues, effectiveness, speed or a lack of innovation, they all want a practical and doable change that will reap results right from the start.
Some leaders link their business problems to culture. If they do, they want to know how to increase the sense of ownership and engagement their people have and how to empower them. Other leaders haven’t yet made the connection that this intangible, invisible glue could be a key to greater success.

What do people want?
Most people come to their place of work wanting to do a good job. They want to be satisfied, to make useful contributions and to feel their effort makes a difference. At the same time, they want to feel they are valued by their company. Can you imagine the power if leaders can provide this kind of working environment when the change feels relevant and doable to every person in an organization? Can you imagine how quickly things could move forward?

Can they get it?
The big question is, can we achieve this?
The solution is to highlight interactions by increasing the quality of the exchanges between the human beings that make up that workplace. We want to captivate the hearts and minds of our employees by engaging in real conversation between people. These need to be ones in which they feel heard and feel they can express their own truth safely.
We spend long hours on the technical aspects of our work, and yet we don’t find the right “time” to have the game-changing conversations — the very thing that will create that productive uplift, the very thing that offers people their own power to make a difference.

One conversation can make a miracle; we just don’t believe it!
Now how do you close the gap? What if you could lift the productivity by even 1 percent? What would that look like over a quarter? Over a year?
This can happen through empowering, building ownership, engaging people, and change happens quickly.

Create an environment of powerful conversation.
How do you manage a wild horse? You don’t. You tend to its environment and overall health so it can be itself. It’s the same for us humans. The right environment that meets our physical and psychological needs enables us to step up and bring ownership to our tasks, to give full attention and energy to our work. So, as leaders, we can create a space where people feel trusted, feel they can bring their best and be appreciated for that, and feel they can raise their voice and contribute their expertise and have their opinions be heard. For human beings, the key for energizing today’s communities lies in the quality of our interactions and internal well-being — one conversation at a time.

Change culture — one conversation at a time.
We’re not just talking about any old conversation but a thoughtful, authentic interaction — not an automatic broadcast. The conversations that really have an impact are those that are a true heart to heart, where you discuss something that matters.
Consciousness means stepping out of the automatic and into the authentic conversations about what’s really going on. Press the “pause button” and truly engage in what you’re saying. Exercise choice when it comes to your interactions. All this is deceptively simple, yet it’s not easy to do. But every time you try to talk with people in a different way, it will make a difference. Imagine if every conversation was 1 percent more authentic. Just that tiny change can have an immense impact. Imagine how that could add up over a quarter…or a year.

Do people really feel empowered by it?
Feedback we have received from a client on why the “conscious conversations” work in practice identified how empowering it was for the individual. Unlike most corporate programs that tell people how to change, this way of transforming culture places the power squarely in the hands of the individual. Rather than waiting for others to step out first — for “them” to act — with powerful conversations, the decision and the action are for the individual to take.
Armed with a new view of self-responsibility, people can speak up and increase mutual understanding about what matters to them, what can be improved, changed or resolved. When this happens, connections are made.
In addition to empowerment, with conversations, you can keep learning, you can keep expanding your confidence, and you can come back again if it doesn’t go so well. It’s not a single change but a human learning curve that builds up. Like a muscle used, we get better at taking off the unhelpful masks we’ve learned to wear.
One thing we hear from people over and over is that when their leaders authentically enquire and listen to people as they express their fears, hopes, ideas and contributions, then they feel more encouraged and more valued. The magic is that the manager is more empowered with tough changes, as they connect with the heart of people’s fears and worries. Then people feel less alone through the turbulent times. It simply helps to know that others care, to hear you’re not alone, to be asked to express yourself, and to feel truly heard.

Where is our evidence of better results x10?
It might feel counterintuitive to spend time talking to achieve better business outcomes, but it does work. There is plenty of evidence out there. A client of Axialent, a big pharma company, conducted an independent assessment of their “changing culture, one conversation at a time” workshops by asking only 15 of the hundreds of managers who participated to assess the impact. They quantified a significant, and measurable, positive impact of over $100 million in the first 12 months.
Improved decision-making, better team communications and smoother interactions across organizational boundaries were all cited as causal factors.
Some years later, we still hear people say that the program is proving its stickability.

In a nutshell…
Changing culture, one (conscious) conversation at a time, makes business sense. It makes common sense.
You will get:

  • A better company culture. Results in minutes, not months. Real, doable, relevant change.
  • People who can take the change into their own hands. They craft it for themselves.

Now that we have busted the belief that you need everyone on board in order to start a culture transformation process, we will add an additional layer to that belief — the belief or myth that you need to start such a process at the top, with the most senior leaders, the CEO or the Executive Committee.
But do you really need them to start?
Of course, it is an ideal scenario to have the top leadership of your organization leading the culture transformation efforts — the leaders who are role-modeling the behaviors of the desired culture and are fully engaged in the process. In our experience helping global companies with culture transformation, this only happen in about half of the cases.
Remember the story in the previous article about the large manufacturing organization and how we engaged with a single team at the time. Other teams took notice and engaged with the HR team to set the teams up with their own leadership development programs, and slowly the culture change in the organization began to grow more and more obvious. After four years of working with different teams, business units and leaders, the CEO started to take notice. The overall performance of the organization kept improving, and he realized the new organizational culture was the driver for this. The organization’s board, including the CEO, is now embarking on their own leadership development journey to take the culture transformation to another level. This program will cascade to other leaders in the organization who have not yet participated. The HR team never lost sight of their ultimate desire to change the culture, but they focused their energy on those willing to engage, eventually impacting the 56,000+ employees.
Instead of focusing on who is not on board (e.g., your CEO), how can you focus on who is? Just like the innovators and early adopters, can you find a leader or a team that has the energy, engagement and appetite to start something new? The more you focus on who is on board instead of focusing on who is not, the more likely you will see those who are, and there are more than you had imaged. You just didn’t see them.
Just think about when you had set the intention of buying a new car, for example. All of a sudden, you are much more conscious about the cars around you — the colors, the ones you want, the ones you don’t like, the model, the make. You see those same cars every day on your commute, but when you actually put your focus on them, you are more aware or conscious of them.

Our world faces today unprecedented changes fueled by the combined forces of new paradigms. As Salim Ismail states in his book “Exponential Organizations,” amazing technology advancements are now joined by other disrupting elements such as social networks, big data, crowd sourcing and new generations, creating what he calls “the perfect storm.”

Disruption in every aspect of our life will happen at such speed and magnitude that knowing more and doing more will no longer be enough to stay afloat. Leaders, now more than ever, need to strengthen the “being” dimension: who we are and what we are here for.

Working with this new reality is not just a new learning process; it requires an inside-out transformation both from a business perspective and from a personal one.

The traditional view of business growth only driven by profit optimization must be transformed to become purpose driven, as sustainability of growth is only achieved when a deeper purpose to generate a benefit for society is the central driver of its existence. This driver can also be called love—one of the two forces that drive human behavior. The other one, the flip side, is fear. Love generates passion to create and contribute, while fear fuels self-interest, which is the dominant driver of business in our world today.

Love is rarely related to or even mentioned in a business environment today. Kenneth Boulding, one of the most renowned economists of the last century, states: “The main obstacle for economic growth today has been the incapacity of the (integral) system to boost love beyond the family ambit.”

We seem afraid to even talk about love in a business setting, yet famous economists like Boulding and Adam Smith, founding father of economics, advocate it as necessary for business growth. Smith said: “Self-interest will never be able to replace benevolence toward others as a necessary element to attain universal opulence.”

Why then have we avoided love in business?

From an economic or business perspective, love is difficult to be defined and measured. From a personal standpoint, it entails working on ourselves, facing and transcending our fears and deficiencies…not an easy job. However, everything starts there: within you, within me.

Perhaps the missing link to connect love and business in today’s world is loyalty—from customers and from employees.

It is common belief that loyalty is achieved by such things as the right price of products for customers or the best salary for employees, customer “service” or employee training. These elements are necessary conditions of loyalty but not sufficient.

Loyalty is not a function of the mind but of the heart.

Only when customers feel (and experience) that the service or product we provide is driven by a deep intention to generate a benefit for them, to enrich their life as people, loyalty can emerge. The same applies for salaries or training provided to employees. And loyalty from employees and customers is the base for sustainable business growth.

This deep intention is also called caring or love.

But the duality of forces driving our behavior as human beings is constant: love/caring versus fear/self-interest. Managing this duality is the job—the path of transformation required from us in the new time.

The way to do this is through consciousness:

  • Being aware of the intention behind each and every one of our actions or decisions, day by day, minute by minute.
  • Being aware that self-interest disguises very easily as care or love.
  • Becoming our own observers but also being aware of our conditioned tendency to judge both others and ourselves.
  • Observing yourself compassionately—with no judgment—but persistently and taking consistent action.

Understand your fears and be determined to awaken your essence: love.

“As mind merges in the heart, true understanding awakens. You are the invisible inside the visible, the unmoving inside all movements. Like space moving in space, glowing inside a thin skin called a human being.” —Mooji

different typs of mindsets

I think that most of the important work that is done in organizations these days is done by teams. Even if people are not all sitting together in a room working simultaneously, their work is shared with others, revised, edited, informed, poked, prodded, enhanced, refined or otherwise manipulated into a product that features input from a number of people. And almost always, those other people think somewhat differently than we do. Maybe that’s because of where they’re from, or where they’ve worked, or how they’ve been trained, or the experience they’ve had in this organization or prior organizations, their age/generation, etc. In other words, their mindsets are different based on their background and experience.

In my work, I have often seen the impact of these mindset differences. And, importantly, another area of meaningful mindset difference is based on our functions. To be very clear, I am generalizing in making this observation. Not all finance people are sticklers for detail, and not all marketing people operate in the world of possibilities and potential. But many of them do—much to the dismay of people with other functional backgrounds. I think most of us would agree that organizations are much better off with the diversity of functional mindsets providing input into decision-making, idea generation, execution and other critical aspects of organizational success. But these differences can cause problems.
Have you ever been frustrated because someone across the table from you, or in one of your important meetings, rejects an idea on the basis of their legal regulatory experience? Or have you ever been flustered by someone on the team who insists that something can be done without providing any specifics about how? These are examples of cross-functional mindset challenges.

So what might we do about it? How can we work better together, have more shared success, as well as retain our sanity?
First, slow down, breathe and recognize that differences are part of our shared human experience, whether that’s convenient for us or not. Remember that those people across the table are almost always good human beings who are participating in a way that they believe is useful and effective, from the point of view of their function and their experience.
Second, take action to understand their priorities—the interests that underlie their positions. When you hear a “no” that feels like a door slamming, ask for a few reasons why that answer was given. Ask what would have to be true in order for you to hear a “yes” instead. There are other useful questions you could ask, of course. The important thing is to listen carefully to the responses. Doing so will not only provide a basis for understanding the other person’s thinking but also will very importantly provide you with key information about how to frame your response to them, such as a new proposal or suggestion.

Of course, this is easy to read here in a short blog and harder to do when the clock is ticking, the pressure is on, and we want to be finished with this conversation yesterday. Hang in there; make an effort. Perhaps others in the room will recognize how you are trying to move past differences and promote greater understanding and better results. They can join in as well. Share your intention with them and let your team know what you were trying to do and why. Chances are they will get on board.


(“d3&t” is borrowed from barbellshrugged.com, a podcast team that focuses on “talking training with crossfit games athletes, strength coaches and more.”)
Some of the biggest companies in the world are consolidating learning and development (L&D) efforts to focus on key changes that will transform how their companies work every day. They are focusing on embedding specialized lifestyle transformation leadership training, transformational DNA, communities of practice, and prioritizing deliberate daily training rituals to help shift mindsets and biases and elevate conscious awareness into the daily/weekly calendar of senior leadership.
You can see some of the real world cases of this being put into action in the following examples (and an even longer list of examples, case studies and references can be found at the end of this article):

As corporate dinosaurs watch these progressive-thinking giants working on their own individual and collective de/re-programming, they’re panicking noticing the gap widening faster and faster.
These companies are training vigorously to strengthen their innovation and transformation muscles in order to continually upgrade their operating systems.
WHY ARE THEY EMBEDDING THIS KIND OF TRAINING EXPERTISE?
“In three years’ time four out of 10 CEOs expect to be running significantly transformed companies.” According to KPMG’s 2016 CEO study, “65% of U.S. CEOs acknowledge that the next three years will be more critical for their industries than the past 50.”
The essential need in business today is to reimagine and reinvent business. This starts as a business strategy, design and implementation conversation, and it continues into a culture, people and mindset transformation conversation. That’s why one needs to focus on not just being a better leader (that won’t be enough), but being a transformational leader.

If you are among the business leaders responsible for implementing a new winning strategy, building new competencies and nurturing new cultural attributes, you are probably struggling to get the results you want and are open to learning about what works.
How you arrange your day to prioritize deliberate practice will distinguish the “best from the rest” when it comes to learning new things and delivering elite performance. Drop everything that stands between you and your transformation dojo. Stop all other L&D programs, so that you can focus your energy and budget on training your innovation and transformation muscles more effectively, for the sake of better business outcomes. If you are not sure which L&D programs to continue and which to leave behind, you should work with an objective specialist who can direct you and help challenge your current thinking.
MOST CORPORATE L&D PROGRAMS ARE UNDERMINED BY THE SYSTEM ITSELF
The “system” is represented by those with the power. Sometimes even the individuals who are demanding the transformation are unaware that they are not appropriately integrating L&D into the strategy, which, in the end, compromises the transformation results.
Most large corporate leadership developmental efforts are highly limited because:

  • They mistakenly treat development like an event, not a daily lifestyle practice commensurate with the chosen lifestyle change.
  • They do not tackle the dynamics of the dominant power system, which is responsible for locking leadership’s default patterns and habits into place.
    • Their L&D departments and programs often suffer from the same “learned helplessness” taught by the system. They become overly sensitive to what’s reasonable, practical and convenient for leaders to “work-in” instead of being more sensitive to what’s impactful/effective:

DON’T JUST EXERCISE — TRAIN!
The repeated cycle of failed transformation efforts isn’t for a lack of intelligence or lack of effort. It is more often a lack of understanding around how we orient ourselves to the transformation opportunity itself. We might be putting in a lot of effort, but not necessarily our best effort.
“d3&t” — Drop Everything and Train is a mantra from a podcast that focuses on talking about fitness training with crossfit games athletes, strength coaches and more.  The phrase places an emotional, physical and spiritual emphasis on refocusing and recommitting to your goals and purpose every day. There are no secrets or shortcuts for making extraordinary gains, whether we are talking about physical gains inside the gym or business transformation gains in the world of commerce.
Specifically, the metaphor of “physical fitness” is too generic to suggest an appropriate training regimen for an athlete or a company. What kind of “fit” do you want to be? World-class athlete kind of fit? Olympic medal worthy? Gold medal worthy, or will you settle for any medal? Or are you happy just to qualify for the games?  What is the specific goal? Clarity around your goal, and honesty about how far away you are from the goal, will help expose the fitness (or capabilities) gap. From there you will be able to consciously plan an effective training regimen.
More likely than not, your company’s L&D programs and culture efforts are executed like a poorly planned exercise regimen – the efforts don’t actually match the planned shift, because in most cases the transformation goals require training for a lifestyle change. Most companies brave the transformation strategy because something is not working the way they want at the current level. They feel stuck and they want to shift to the next level. Most companies in this position are lucky to get any transformation at all, much less the world-class transformation they are hoping for.
Continuing with the analogy of physical fitness, if you just want to lose some weight or just get in better shape, then exercise is enough. Engage in some physical activity that gets you moving and burns calories – simple as that. But powerlifter and author Mark Rippetoe makes the distinction that random physical exercise cannot produce a physical transformation beyond a certain point. Once the initial inspiration to get in shape wears off, our interest in transforming wanes and we stop making meaningful progress.
The only way to achieve the desired physical transformation (or transformation gains) is to carefully plan and monitor the full integration of intensely focused training for said goal. This vertical learning trajectory is required to get to the next level. Just working on horizontal learning at the current level won’t be enough. It requires an elevated awareness and focus. One must stay committed to the prescribed ongoing deliberate practice with increasing levels of stress/tension, renewal and growth across all the relevant diverse dimensions of performance training for very specific domains/specialties (e.g., strength, endurance, speed, agility, flexibility, mobility, mental toughness). One must also be willing to persist regardless of circumstances, accepting uncertainty and fear of failure achieving that specific goal. One must be committed to staying in the tension of the transition between the current level and next level.
If yours is like most companies on a transformative path, you are working on shifting from one unhealthy word cloud of culture descriptors to an ideal word cloud of culture descriptors:

  • From unhealthy (e.g., stalled sales, declining margins, commoditization, distribution pressure, self-centered, highly reactive, driven by habit, very siloed, political, risk-avoidant, fearful, punitive, command and control, traditional, discouraging, overconfident, distracted, “armored-up”)
  • To becoming a “world-class” competitor at the highest level of competition in your chosen domain (e.g., growing, partnering, reconfiguring value chains, client-centric, open, collaborative, creative, resourceful learning, integrated, inclusive, courageous, empowering, energizing)

 

DON’T JUST TWEAK THE SYSTEM – TRAIN!
“Tweaking the system” is a related metaphor and a similar trap to be aware of. Some believe that making slight modifications and additions will miraculously provide most of the transformation all on its own. See if you recognize these patterns:

  1. Physical fitness: Buying a standup desk and visiting the gym three times a week to exercise doesn’t transform my lifestyle. It doesn’t give me six-pack abs or sufficiently elevate my performance to a next level domain. It doesn’t even guarantee I’ll be healthy.
  2. Corporate fitness: Attending a few workshops every year, doing the homework exercises in my head (instead of in writing), reading a few books now and then, and sharing articles and podcasts doesn’t make me ready and fit to lead my organization on a transformation journey. It doesn’t mean I’ll be more adaptive or skilled at facilitating teams or be any more effective at complex problem solving. It doesn’t even guarantee that I’ll be better at stopping myself and recovering more quickly when my reactive stress triggers make me want to rescue, persecute, yell, gossip and bully people with my old command and control default habits.

 

In both physical and corporate metaphors, to break away from status quo leadership behaviors and dominant culture, leaders need to be transformational. They need to be:

  • Training to sustain a mastery pattern of learning (vertical learning)
  • Training to sustain adaptive levels of growth and performance
  • Training to sustain relational connection, support, coaching and identity

Exercising and tweaking the system are not the same as training.We don’t get the desired result of getting to “consciously competent” with new capabilities and new default habits that help amplify the business strategy with mere exercise. Without proper lifestyle training (reprogramming), we are still consciously INCOMPETENT and therefore undermining the business strategy with our consciously incompetent gaps.
 

Corporate training L&D programs designed specifically to support transformation include a very focused training regimen. Effective programs clearly articulate the business context, shape the environment, and design the strategic scaffolding of support, discipline and liberating structures. Effective programs make it safe enough and challenging enough to help individuals and teams reach their full transformational potential. The most effective training focuses on integrating the deep work of the intellectual, physical, spiritual, emotional, relational, procedural, structural areas of people’s lives. Transformation happens in community. So, we have to train together in a way that recognizes them/us/me as a whole human being, irreversibly changing the DNA of the person, the team and the culture. That’s how to accelerate the desired lifestyle transformation.
d3&t
We’re all at our own current level – pursuing our own next level. We are all working through that transition on the path to transformation.  Winning and losing the transition follows basic patterns that one can unconsciously fall into or consciously train to more effectively climb out of. See for yourself – sample from the never-ending buffet line of training benefits.
Don’t just be a better leader, be a transformation leader.
Or consciously choose not to transform.
Prioritize what needs to transform and why it matters to you. Prioritize which muscles need to be developed and in what integrated sequence – then get your reps in. Embed a deliberate practice into every day and embrace the lifestyle changes that need to be made. Be kind to yourself as you prototype your own sustainable rituals and rhythms that you can fall in love with.
 
Don’t just exercise and tweak the system – train. Train like your business strategy and results depend on it. Or consciously choose not to transform.
Train like you’re truly committed to developing these new muscle groups by making irreversible lifestyle choices. Just “exercising” undermines your winning strategy. Real, integrated “training” for a transformed lifestyle, over time, amplifies your winning strategy.
Don’t just train alone – train together. Practice not quitting — together.
Or consciously choose not to transform.
Life is the dojo. Life is the curriculum. There’s nothing to figure out, nothing else to go find. Drop everything that stands between you and your “dojo.”  Drop everything and train.

It can be hard for very successful leaders to retool their leadership abilities.
But we all can.
It’s actually very simple, but it’s not always easy.
Easy or not, many of us are upgrading our leadership constitutions. We’re leading in times of extraordinary change; many believe it’s now or never. Many of us are self-authoring the greatest chapters of our leadership story.
Many C-suite execs have been working on their own personal retooling for many years, transforming themselves. As a result, they are amplifying the impact they have on their team, their families and their organization. They are leading differently at work and at home – it shows and it’s working.
They are building momentum towards a culture where curiosity, openness, understanding, wise risk-taking, agility, creativity, commitment and accountability become embedded in “the way we do things around here.”
These transformational leaders have chosen to engage in an ongoing mutual process of learning to raise one another up and shifting to a culture (a new system) with higher standards and higher levels of purpose, relationship and performance in order to more quickly and effectively get to the complex problem solving together.
But they were probably born for this, right? They probably have more time to work on that kind of stuff than we do. Their situation is probably different; they are different; they are special and gifted in the magical secrets that we don’t have access to.
Probably not. They are not unicorns and there are no shortcuts.
They have simply adopted new lifestyle habits that strengthen their transformation leadership muscles. We all have these muscle groups, but they haven’t all been developed yet. We all have the gift. We all have the same amount of time. With deliberate, purposeful, intensely focused practice (embedded in the way we work and schedule our days), these new muscles have helped them see more + work better + feel stronger in the face of transformation challenges. That’s how adult development works. If we want the elevated performance benefits of vertical learning we have to train in the same way that high-performance athletes develop their muscles to respond differently. Transformation leaders have been training their muscles to be transformation-fit, like Navy SEALs train to be SEALFIT . It’s a form of integrated training with specific, sustainable, lifestyle performance goals in mind.
Transformation (innovation) leaders have learned to get better at letting go of their biases and default/reactive habits in favor of greater awareness leading to resourceful, more effective habits. They have learned to respond more creatively, more collaboratively, more adaptively and more curiously. They don’t respond perfectly every time, but they recover more quickly now and they respond better more often (than yesterday) and, more importantly, when it matters most. They’ve learned to manage polarities and leverage the simple rules that drive complexity better. They have learned to use power differently and play the long game better. They’ve learned to let go of their addiction to old success formulas, dominant power structures and outdated leadership paradigms that have limited the visibility of all their options/choices/possibilities holding their teams back and holding their organizations and strategy hostage for far too long.
They have chosen to be more ready to lead change than others. They have chosen to be more ready to “mobilize for the fourth industrial revolution – It’s now or never,” proclaims the cover of KPMG’s CEO Outlook 2016. The summary headlines in this CEO report are echoed everywhere – in every forward-looking body of research: “The next three years are business critical. Industries are transforming faster than ever before. Innovation is a matter of time. Customer focus and investment will increase.”
It’s never going to be this slow again. Transformation is no longer just a business practice. It has become a way of life – a lifestyle choice for leaders in the new normal.
Are we ready to embrace transformation leadership and innovation as life? The more of us who are ready, the further we all get.
In our lifetime and our children’s lifetime , it will always be time to “chop wood and carry water.”
It’s time to fall in love with the process.
It’s time to train.

Disruption is fundamentally changing what defines a great leader in today’s world. Dorothy, we are not in Kansas anymore! In this disruptive world, the heroic, all- knowing leader is a relic of the past. Today’s leaders are responsible for re-inventing their business with a sense of purpose and the ability to create meaning for employees. These leaders have to have the agility, authenticity, and sense of self to do this knowing that control is a mirage.
If disruption weren’t enough, the very base upon which leadership is built—trust and authority—are being revolutionized in this VUCA world. Change, ambiguity, and uncertainty require stronger and stronger emotional bonds between leaders and employees than ever before, especially when leaders have to lead at scale and out of sight. It asks for leaders who are congruent in message and behavior; leaders who are role models of strength and humility.
Today’s strong leaders are described as collaborative, inclusive, engaging, and inspiring. Work groups are required to be team focused, democratic, matrixed, and participative. Everyone expects to have a voice.
Until now, the hard, cold masculine emphasis on logic, numbers strategy, and finance was pitted against the soft, intimate, feminine qualities of relationships and behavior. In today’s highly disruptive, competitive environments, decisions about the business are inseparable from concerns about how the culture, behaviors of leaders, and quality of the dialogue they create can enable the strategy given the context of their challenges.
Leadership used to be about maintaining order and replicating processes. Leadership of today is about navigating ambiguity. Leaders of today need to be catalysts and empowering and inspiring authentic storytellers of purpose and direction. No longer can leaders expect employees to perform solely in exchange for financial and job security. In today’s volatile economy, leaders are expected to provide individualized development and, most importantly, meaning for their direct reports in exchange for job performance. In order to do this, they need to have discovered their own sense of meaning and purpose.
By purpose, I mean the strongly felt sense of responsibility that a leader has for taking action even in the face of risk, conflict, and uncertainty. Purpose is the grounding that enables leaders to be agile amidst disruption, to earn the trust of others, and to lead without ascribed power and authority. It goes beyond talent, skills, or even knowledge. Unlike personality or behavioral approaches to leadership, purpose defies quantification, categorization, or assessment. Purpose can’t be taught, but it can be discovered.
When disruption hits an organization, the last place most companies think to look is at their purpose. Most try to come up with a new strategy to win, using their old Oz-style of leadership, in a game where they have already lost. If you look at the companies that have performed over time and outperformed all others, you’ll see a common thread around their purpose. Member of Axialent’s Advisory Board Raj Sisodia in his book Firms of Endearment articulates it best when he says “Providing shareholders a good return on their investment remains an important objective, but the idea is spreading that investment returns can be greater when wealth creation for shareholders is not the sole or even main purpose for which a company exists.” And indeed, the companies he researched — the Firms of Endearment — are characterized by leaders who pursue a purpose beyond returns and have proven to outperform the S&P 500 by significant margins, returning 1,026 percent for investors over the ten years ending in June 2006 compared to the 122 percent for the S&P 500.
The Oz model of leadership has been dismantled by disruption and we have entered an era of purpose-driven leaders at their best in the face of ambiguity.
Here are some ideas on how to start a conversation in your organization:
 Where are we fully aligned with our values; where are we not?
 What part of our rhythm of business challenges our most aspirational of values?
 Where in our system are we missing the opportunity to reward feminine leadership, regardless of gender?
 Where are we at risk of rewarding/celebrating only masculine traits? What is the cost?
What is the purpose of our business outside of financial performance?

by Fred Kofman

The unilateral control model

The world of American business operates under a set of mental models. Chris Argyris and Don Schön call it “Model I”; Diana Smith and Robert Putnam refer to it as the “unilateral control model.” This model has been the guiding philosophy that has shaped the code of acceptable behavior for American businesses. This model helped American businesses evolve to the level of sophistication and success it has reached in this century. But as we shall see, the unilateral control model may prevent American businesses from succeeding in the next century. The unilateral control model is fraught with inherent contradictions and weaknesses that hinder effectiveness, adaptability, innovation, competitiveness and profitability.
The unilateral control model is a theoretical construct, a story that allows us to explain behaviors. It is a convenient tool to summarize many observations of managers in action. Its value does not come from mirroring some “reality” in the outside world (or rather, in the inside of people’s heads) but from enabling us to understand and transform behaviors that do not help us accomplish our goals.
The unilateral control model is a way of maintaining control when dealing with issues that can be embarrassing or threatening. It is like a program that operates according to certain assumptions, strategic goals and tactical actions which result in certain consequences. Argyris and Schön identify several assumptions at the foundation of this model:

  1. I am rational; I see things as they are. I have a logical perspective that takes all factors into account.
  2. I am influenceable. I am open to change my opinions as long as someone can make a rational argument.
  3. Others are irrational and uninfluenceable. Unfortunately, most people are not rational like me, but
    are closed‐minded and stuck in their (mistaken) ideas.
  4. Constraints are unalterable. People are the way they are and will not change.
  5. Errors are crimes to be punished or sins to be covered. If people do the right thing, bad things should not happen. Consequently, whenever something goes wrong, someone must have done something wrong.

These assumptions affect thoughts, feelings, actions and interactions. If I believe that rationality is paramount, I will measure every conversation, every action, every plan in relation to that premise. I will also feel awkward when someone displays emotion or relies on intuition. If I believe that others are uninfluenceable, I will not even try to convince them; or if I try and they still disagree, I will consider them hopelessly stubborn and try to bypass or outmaneuver them. These assumptions are so fundamental that they become invisible; if they are made visible, they are almost always undiscussable; and if they do become discussable, they will almost certainly remain unassailable.
After studying the behavior of thousands of managers, Argyris and Schön defined the following set of strategic goals at the core of the unilateral control model:

  1. Define goals and try to achieve them unilaterally. Do not waste time and energy trying to develop a mutual definition of purpose with others; do not allow them to influence or alter your perception of the task.
  2. Maximize winning (face‐saving) and minimize losing. Once you commit to your goals and strategies, assume that changing them would be a sign of weakness.
  3. Share information selectively to support your perspective. Assume that the only relevant information is that which helps you convince others you are right.
  4. Provide external incentives to ensure compliance. Distribute rewards and punishments to encourage individuals to do what you decide is best.
  5. Minimize generating or expressing negative feelings. Be rational, objective and intellectual. Suppress your feelings and do not become emotional.

These strategic goals give rise to several tactical actions characteristic of the unilateral control model:

  1. Design and manage the task and the process unilaterally. Own and control the task and the process by yourself.
  2. Unilaterally protect yourself and others by being abstract and withholding feelings. To protect others you should withhold information (especially negative assessments of their performance), tell white lies, suppress negative feelings and offer false sympathy.
  3. Assert your own views, taking your own reasoning for granted. State your conclusions as facts and withhold information on the data, reasoning and concerns that led you to such conclusions.
  4. Minimize inquiring into others’ views. If you must ask, ask leading questions that support your own position.
  5. Adopt the role of the victim, placing 100% responsibility for the problem on others. When a problem arises, assume that it is someone else’s fault. If your employees fail to take responsibility assume that it is their fault and “force” them into empowerment.
  6. Make dilemmas undiscussable, and make the undiscussability of dilemmas undiscussable. Resolve impasses and dilemmas unilaterally behind closed doors.
  7. Encourage face‐saving. Ignore or suppress conflict. Use abstractions and ambiguity to pretend that there is agreement when there is not. Assume that people would be hurt by confrontation and avoid it.

The way in which we have described the features of the unilateral control model makes them seem reprehensible, but they are not overtly so; in fact, they are often disguised as social virtues. In his book Overcoming Organizational Defenses, Argyris lists the following interpretation of the unilateral control model’s alleged social virtues:

  1. Help and support. Give approval and praise to others. Tell others what you believe will make them feel good about themselves.
  2. Respect for others. Defer to other people and do not confront their reasoning or actions. Assume that confrontation is always aggressive, disrespectful and unproductive.
  3. Strength. Advocate your position in order to win. Hold your position in the face of counter‐advocacy.
  4. Honesty. Tell other people white lies, or choose what truths to express. Express these truths “politely” so nobody feels upset. Alternatively, tell others all you think and feel in raw, unprocessed form.
  5. Integrity. Stick to your principles, values and beliefs. Hold on tightly to your “strong personal convictions.”

Because the unilateral control model incorporates face‐saving tactics, it does not appear to be as negative as it actually is. But when we look beyond its surface “politeness” we can discover its ugly undercurrents of game‐playing, one‐ upmanship and lack of consideration and respect for others. Argyris and Schön predict several major consequences of unilateral control behavior:
Because the unilateral control model incorporates face-saving tactics, it does not appear to be as negative as it actually is.

  1. People will behave in defensive, inconsistent, controlling and manipulative ways. They will be incongruent and fearful of being vulnerable. They will withhold many of their most important thoughts and feelings or “dump” them unproductively.
  2. Interpersonal and group relationships will become more defensive than facilitative. Group dynamics will become rigid and the focus will be more on winning and losing than on collaborating. There will be antagonism, mistrust, miscommunication, risk aversion, conformity, and compliance to external norms—as opposed to internally driven commitment.
  3. People will experience primarily fear, stress and anger. There will be a prevailing mood of cynicism, resignation and resentment. People will feel disempowered by their inability to control their destiny and respond with rebelliousness or apathy.
  4. There will be little freedom to explore and search for new information and new alternatives. Conformism, anomie and cynicism will ensue. Errors will escalate and people will withhold solutions that could challenge established beliefs and norms.
  5. There will be many constraints against exploring and defining goals in partnerships, exploring new paths to these goals and to setting realistic but challenging levels of aspiration. These constraints will lead to low commitment, group‐think, conservatism and risk‐ aversion.
  6. Theories will be tested primarily in private, with supporting data and arguments hidden, rather than displayed in public view. The secretiveness and vagueness of people’s models will lead to misunderstanding, miscommunication and escalation of errors.
  7. There will be a tendency to default to “within‐the‐box” thinking rather than to step beyond the commonly accepted assumptions.

Ultimately, the business consequences of the unilateral control model are simple and devastating: ineffectiveness, inflexibility, lack of innovation, low quality, high cost, uncompetitiveness, obsolescence, low (or negative) profitability and extinction.

The mutual learning model

We do not have to work and live in the ways we have described so far. As widespread as the unilateral control model is, there are other options. There is another mental model available to individuals, organizations, even whole cultures. This model not only increases effectiveness in the performance of the task; it also enhances the quality of relationships while raising individuals’ self‐esteem, satisfaction and happiness.
The mutual learning model (called “Model II” by Argyris and Schön) is based on very different assumptions and strategic goals than the unilateral control model. It generates different tactical actions and results in different consequences. The assumptions of this model are:

  1. I am a human being bound by my mental models. My logical inferences depend on my concerns, emotions, assumptions, generalizations and interpretations. My mental model filters my perceptions and conditions my emotions.
  2. Others’ thinking has an internal logic, although my mental models might make it hard for me to see it. Whatever position they hold, they have reasons for holding that position.
  3. We (others and I) are influencable. If we engage in a dialogue we can understand each other and learn together.
  4. Constraints are interpretations. From some points of view, constraints do not look as unalterable as from others. There is a wide space of negotiation within a context of personal disclosure and dialogue.
  5. Errors are puzzles to be explored. Breakdowns are opportunities to examine the process that generated them and learn to work together more effectively.

These assumptions, and this model, operate in an emotional space quite dissimilar to those of the unilateral control model. When people work within the mutual learning model, the prevailing emotions are peace, wonder and curiosity. In such a mood, it becomes possible to assume shared responsibility for a particular concern, to accept that others’ views can be as valid as my own and can help to solve the problem, and to believe that every problem or error— although upsetting and painful—is at the same time an opportunity to learn.
Based on these assumptions and emotions, these strategic goals guide actions in the mutual learning model:

  1. Develop a mutual definition of goals and pursue them collectively. Open the space of group negotiation to include both strategies and objectives.
  2. Maximize learning through the exchange of valid information. Provide others with directly observable data and grounded assessments so they can make valid interpretations on their own.
  3. Maximize free and informed choice. A choice is informed if it is based on relevant information. The more an individual is aware of the variables relevant to his decision, the more likely he is to make an informed choice.
  4. Maximize internal commitment. Encourage individuals to feel responsible for their choices. The individual is committed to an action because it is intrinsically satisfying—not, as in the case of the unilateral control model, because someone is rewarding or penalizing him.
  5. Accept all feelings as valid expressions of self. Invite discussion of emotionally charged issues in an atmosphere of mutual understanding and respect.

These strategic goals change the whole communication and decision‐making process from unilateral control to mutual learning. If I act after my voice has been included in the conversation, and because the course of action appears to me to be the best choice, my behavior will be very different than if my primary motivation is to protect myself, avoid your wrath, keep you or me from being embarrassed or pursue any of the strategic goals of the unilateral control model.
The strategic goals of the mutual learning model lead to the following tactical actions:

  1. Make the design and management of the task and the process a collective endeavor. Share control so that all participants experience free choice and internal commitment. Let participants participate in the definition of the goals and the design of the paths to the goals.
  2. Create a low‐protection, high‐learning environment. Advocate your own views and encourage others’ reactions. Actively solicit comments and challenges to your argument. Invite others to advocate their own views and inquire into them.
  3. Make the thinking behind your views explicit and publicly discussable. Expose your reasoning and your assumptions, your observations and your assessments. Assume that your point of view is not the only possible one and that others can understand your perspective and still disagree with you.
  4. Inquire into others’ views. Assume that others have valuable insights to offer and that only good can come from discussion.
  5. Take 100% ownership and responsibility for the problems. Assume that whenever there is a problem you are part of it (and its solution), that your behavior might
    be affecting others and contributing to the ineffectiveness of the group.
  6. Make dilemmas discussable. When you reach an impasse or a dilemma, be willing to go beyond the surface—to discuss the context of the conversation as well as the content.
  7. Discourage face‐saving. When conflicts arise or emotions such as embarrassment and fear block effective decision‐ making, do not ignore them. Instead, make the emotions and conflicts explicit in the spirit of mutual learning: “What can we all learn from this to improve our task and relationships?”

The mutual learning model arises from a new understanding of traditional social virtues and has enormous consequences for both behavior and learning. When an organization operates in a mutual learning mode:

  1. People do not need to behave defensively or manipulatively. They act with congruence and without fear.
  2. Interpersonal and group relationships become less defensive and more facilitative. Group dynamics become flexible, shifting the focus from winning and losing to collaborating.
  3. People feel free to explore and search for new information and new alternatives. The team exhibits a drive to excel, high energy and excitement.
  4. People define goals and explore constraints in a partnership mode. They set what they consider realistic but challenging levels of aspiration through open communication.
  5. By encouraging public rather than private testing of theories, people detect and correct errors more easily and painlessly. Through enhanced communication people act in coordination and create high‐quality relationships based on integrity, commitment and dignity.
  6. People think creatively and explore solutions that step beyond commonly accepted ways of dealing with the problem.

Overall, the mutual learning model leads to effectiveness, flexibility, innovation, high quality, low cost, renewal, competitiveness, high profitability and growth.
The transition from unilateral control to mutual learning cannot happen through changes in formal policies and procedures. Changing mental models is a personal endeavor that demands the full participation of each individual. Creating a culture of openness and continuous improvement requires personal transformation. This transformation is the deepest level of learning.
Transforming mental models. Single, double, and triple‐loop learning
Given our assessment of a situation, we determine a range of possible actions. We then evaluate the expected results of these actions with our goals and choose an action that has the highest likelihood of attaining our desired outcome. This action creates consequences and produces results. In summary, as a result of our mental model, we articulate a story of “what is going on,” “what do I want,” and “what can I do,” this story conditions how we act, and how we act creates certain results.
If the results match our desires, we are satisfied and don’t experience the need to learn. But if the outcome disagrees with our wants or expectations, we have the opportunity to learn. The gap between our intention and the results fuels the learning process. Depending on the difficulty of closing the gap, learning will demand that we reconsider our actions, thoughts and feelings at different levels of depth.
Single‐loop learning is a process through which the learner becomes capable of acting effectively through detecting and correcting errors (mismatches between results and goals) by changing a specific response within a given set of alternatives. For example, a thermostat would activate a furnace when the temperature drops below a certain value. Single‐loop learning takes the situation as given. It solves the problem at hand by choosing an action within pre‐established bounds that attains a pre‐established goal. But single‐loop learning does not address a more basic question: why did this problem exist in the first place?
For example, suppose that a company implements a suggestion program as a way to reduce waste. Employees contribute ideas and soon waste decreases dramatically. From a single‐loop perspective this was a success. But some key questions remain unasked. These are the questions that nobody wants to ask for fear of spoiling the celebration. Why did the company need a suggestion program to implement the waste‐reduction initiatives? Why did workers and managers knowingly continue to do things that led to waste? What stopped those suggesting ideas through the program from presenting them before?
These are the difficult questions that rarely get asked when an initiative such as total quality management or business process re‐engineering succeed. The point is not to deny the improvements brought about by these programs: the point is to understand why the organization needed a special program to tap the creative potential of its employees. Double‐loop learning asks precisely these uncomfortable questions.
Double‐loop learning is a change in the process of single‐loop learning. Double‐loop learning is a process through which the learner becomes capable of accomplishing a goal, but this time his accomplishment does not come from a change in strategies within a given set of alternatives which are aimed to accomplish a given goal within a given environment. In double‐loop learning, the learner’s increased effectiveness comes from a change in the set of alternatives from which he selects his actions, from a change in the goals he is trying to accomplish or from a change in the way he interprets his environment. This change in frame or re‐contextualization opens new possibilities for action outside the range of single‐ loop learning.
When the company with the successful waste‐reduction program investigates the underlying structures that prevented improvements before, they might discover that those having ideas were afraid of contributing them because they would expose current inefficiencies. That exposure would be embarrassing for those in charge and that embarrassment might lead to retaliation. This is typical unilateral‐control thinking. If the current unilateral control model is not transformed, after the suggestion‐program party is over, inefficiencies will start accumulating again. Only through double‐loop learning will the company ensure efficiency in a dynamic environment.
In most circumstances, double‐loop learning will suffice to close the learning gap. But if it doesn’t, there is another step upstream that we can take. From the particular interpretation that we adopted, we can move to the mental model that conditions the interpretations we are able to construct.
Triple‐loop learning is a change in the process of double‐loop learning, or learning how to double‐loop learn. Triple‐loop learning is a change in the way the learner changes mental models. It is a release from the grip of any particular mental model within which we operate at any particular time.
Consequently, triple‐loop learning is a transformation that affects our notions of what is real and of who we are.
When we move into triple‐loop learning we begin to examine how these factors of biology, language, culture and personal history create a predisposition to interpret the world in particular ways. Instead of falling into a rut, I can challenge myself to change my behavior with mindfulness. The problem doesn’t go away, but I can frame the breakdown within a larger perspective.
Changing mental models is possible, but not easy. Mental models are not like eyeglasses that can be taken off and replaced easily. They are more like the cornea itself, whose shape conditions what shows up in focus and what does not. We find it difficult to change mental models because they are so “obvious” to us that they disappear, because they serve us well and because we so often identify ourselves with them. Some blocks to changing mental models include:

  • Our reasoning and acting is highly skilled, so our mental models operate invisibly. We are not even aware that a particular mental model conditions our actions or thought processes.
  • Our mental models filter out of our awareness those experiences that are incongruent with it. So we suppress experiences that can challenge our mental models without even knowing at a conscious level that we are doing it.
  • We don’t want to risk losing face or being wrong since
    that threatens our self‐image and produces embarrassment. So we cling to our established patterns even when they don’t work.
  • We do not want to risk upsetting or embarrassing others. So we don’t reveal our mental models because we fear that they may represent a challenge to their mental models. Conversely, we expect others to hide their mental models when they could pose a risk to ours.

Once we see how powerful mental models are in shaping our reality and how subtly they prevent contradictions from surfacing to our consciousness, the critical question arises: if our structures and prior assumptions about reality determine what we can experience, how can we ever experience something that will challenge our structures and prior assumptions about reality? How can we ever learn to transcend some of the basic ideas that can block our progress when these are the very ideas that condition what we are able to think?
The answer is triple‐loop learning. We can escape the gravitational pull of our mental models through a leap to a different level of knowing, feeling, sensing and being.
An example of triple‐loop learning is what happens when we experience a “magical” event. An event is magical when it is both impossible and undeniable. Of course, “impossible” is an assessment that depends on our mental models. When confronted with undeniable evidence that the impossible is actually occurring, we need to change our definition of what is possible—and with it, our mental models. This is exactly what Kuhn describes as an “anomaly” in his book The Structure of Scientific Revolutions. When enough anomalies accumulate, the scientific community is forced to revise its collective mental model—what Kuhn calls “paradigm”.
Many of the tools we have introduced elsewhere, such as the ladder of inference, the distinction between private and public conversations, advocacy and inquiry, and observations and assessments are meant to respond to “anomalies.” When the world does not yield the results we desire, we can use them to shine a light of awareness on our mental models, go upstream in the interpretative process and change our paradigms to enable more effective actions.

Conclusion

Competitiveness has proven to be one of the most effective motivators to propel economic growth, but when applied inside of the organization through mental models like the unilateral control model, it can destroy the spirit and productivity of those involved.
The mutual learning model is based on cooperation: I may have some answers, but they are not the only ones. I want to know what you think because I respect your point of view and believe that we can get a better outcome if we work together and learn from each another.
Unfortunately, the shift to a mutual learning model is not easy. Most of us are experts in the unilateral control model because we grew up in a culture that reinforces and values that model. The mutual learning model, by contrast, is in a state of comparative nascence in our culture and most of us are beginners at using it. It will take much practice and perseverance to institutionalize this model, but this effort is worthwhile when compared with the inefficiency and suffering we are sure to experience if we continue to manage according to the unilateral control model.