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Purpose & Vision: Overcoming Trump’s Fear-Driven Capitalism, Part 2



Photo credits:  „Eye“: http://tinyurl.com/y8gb8h4b. “Fear“: http://tinyurl.com/y8gtw3wj.

Photo credits: „Eye“: http://tinyurl.com/y8gb8h4b. “Fear“: http://tinyurl.com/y8gtw3wj.

Trump’s economic policies are starkly different from his predecessors and deviates from mainstream economics and political thinking.  Take, for example, his massive tax cuts for the corporate world or his initiated trade wars.  Just by looking at recent economic numbers and the booming stock market his policies seem to pay off and open a new era of economic prosperity.  But do they really?

Long-term market performance indices and forecasts tell a different story.  Shareholder buybacks and alike contribute nothing to building a solid foundation for future business success.  They yield short-term benefits and the party is on.  But, for how long?  Where does it lead to?  Has big money finally succeeded and overtaken economic and political thinking?  How sustainable is this short-term growth? Who benefits, who loses?  And, last but not least, what kind of answers does it provide to today’s global challenges that are becoming more and more volatile, uncertain, complex and ambiguous?  What if Trump’s favored form of capitalism leads to a dead end?!

As explained in a previous post, I am more than skeptical about the outlook of traditional capitalism.

Fact is that traditional capitalism does not answer today’s challenges in a VUCA (volatile, uncertain, complex, ambiguous) world, widens the gap between rich and poor, exploits and threatens to destroy our environment and thus our own planet.  What we need is a different, a new business paradigm that not only helps find solutions to today’s problems but can also serve as guidance to sustainable business in the 21stcentury.

In this article I explain why and how purpose-driven human business can make a huge difference.  It differs significantly from the classical business paradigm.  At the same time it has built-in bridges every business can cross to build a sustainable future.

Maximizing Shareholder Value: Engine for Growth?

There is one and only one responsibility of business: to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game.

– Milton Friedman

No doubt, Milton Friedman and shareholder value theory has shaped Western business since the 1970s.  It has led to tremendous wealth of companies as well as societies, even though the fruits of this growth have not been distributed equally.

And, Milton is still very much alive as Steve Denning points out in a Forbes article.  He explains that “in 1990, an article in HBRby Michael Jensen and Kevin Murphy, gave shareholder value thinking a new push. The article, “CEO Incentives—It’s Not How Much You Pay, But How” suggested that CEOs were being paid like bureaucrats. Instead, they should be paid with significant amounts of stock so that their interests would be aligned with stockholders. Thereafter, the use of the phrase ‘maximize shareholder value’ exploded and CEOs became very entrepreneurial — but in their own cause,not necessarily their firm’s cause.”

Denning continues stating that “by 2017, shareholder value thinking was everywhere. Joseph Bower andLynn S. Paine reported in Harvard Business Reviewthat shareholder value thinking “is now pervasive in the financial community and much of the business world.” It had led to a set of behaviors by many actors on a wide range of topics, “from performance measurement and executive compensation to shareholder rights, the role of directors, and corporate responsibility.”

Acknowledging shareholder value thinking is prevalent in today’s business world, and a booming stock exchange market, what’s so wrong about it?!  Why change a winning formula?!

On the face of it, shareholder value is the dumbest idea in the world.
– Jack Welch

Jack Welch, former CEO of General Electric, had been heralded as one of THE proponent of maximizing shareholder value.  This is in contrast to what he has been preaching since he left GE, stating „On the face of it, shareholder value is the dumbest idea in the world.“ Welch also pointed out several times that „shareholder value is a result, not a strategy . . . Your main constituencies are your employees, your customers and your products.“

So far so good.  But what about business performance in the market place?

According to the 2009 Shift Index of Deloitte’s Center for the Edge there is conclusive proof of failure of traditional management.  Accordingly

  • The rate of return on assets has fallen by 75% since 1965
  • The life expectancy of Fortune 500 firms is down to 15 years, and is heading towards 5 years.
  • Only 1 in 5 workers fully engaged

Preserving the performance of a status quo may be laudable.  Yet, it doesn’t secure lasting, sustainable business.  The opposite is true.  Mariana Mazzucato  explains that „shareholder value theory – the destructive idea that companies should be run solely for the benefit of shareholders – has led to financialized businesses that do not invest in the areas that will lead to future growth or the invention of useful new products.“

In short, traditional businesses infiltrated by shareholder value theory not only ignores long-term perspectives, they also risk their own future existence.  Myopia at its best.

Stuck in the past

In face of this evidence why do so many companies still stick to a business paradigm of the past?

There are lots of reasons for clinging to this pastime.  Let’s have a look at two of them:

  1. For one, it is convenient.  Governance in most businesses still built on the old business paradigm, along with complicated incentive system for individual and company performance at the stock market.  Changing these processes and culture takes ages.  Why change it given that those who would have to make the call for a change personally benefit from the old system?
    Linking maximizing shareholder ‘value’ to personal compensation blinds managers from the real world – and most of them don’t even realize it because they were born blind or lost eyesight early in their childhood (or education). From this perspective, they live out their DNA. I guess, you can’t even blame them for their upbringing shaped their belief system. They were indoctrinated.
  2. A second reason for favoring existing belief systems is that proponents of the status quo simply don’t see any real alternative at hand.  Thinking in complicated, elaborate governance structures and processes implies that there needs to be an even more complicated system? There is simply no time to address this, even less so, coming up with new ideas that improve existing processes.

As long as this reasoning prevails, it is difficult to change anything until it may be too late.  Alas, it is not that complicated at all.  Let’s have a look at the opposite of the traditional business paradigm of short-term profits and shareholder value theory.  It’s called purpose-driven business.

MVP’s for doing business in the 21stcentury

A purpose-driven business follows a compass that gives a clear direction for the future of the business.  The compass also indicates where the business is coming from, i.e., why it is business in the first place.   Both, the motivation and the vision of a business constitute the credo of its practice. I call this the MVP of a purpose-driven business whereas stands for motivation, for visionand for practice.

For example, Johnson & Johnson’s company credo is engraved in granite at the entry to company headquarters, which makes crystal clear that customers are first, then employees, and shareholders absolutely last.

Another example is Procter & Gamble which declares in its purpose statement: ‘We will provide branded products and services of superior quality and value that improve the lives of the world’s consumers, now and for generations to come. As a result, consumers will reward us with leadership sales, profit and value creation, allowing our people, our shareholders and the communities in which we live and work to prosper.’

On this token, a business that has forgotten or neglects its motivation or vision for short-term gains, such as maximizing daily stock prices, may just as well be digging its own grave in the long-run.  It is anything but a purpose-driven business.

Human business is purpose-driven business

Facing the increasing number of challenges in our volatile, uncertain, complex and ambiguous (VUCA) world, Human Business addresses today’s challenges.  It focuses on serving and delighting its customers, workforce, business, and society.  And it does so holistically and puts us as humans in its center.  That is, it constantly seeks ways and means to generate and add sustainable value to its customers, workforce, business, and society.  From this perspective human business follows three elementary principles:

  1. Delight your customer(s)
  2. Take care of your employees
  3. Build sustainable business value

(1) Delight your customer(s)

Having a customer focus is not new.  Peter Drucker, father of management thinker, explains that

There is only one valid definition of a business purpose: to create a customer.”

Alas, delighting a customer goes beyond creating or satisfying a customer. Delighting a customer implies that a business has a deep understanding of the needs, expectations and wishes of its customers and strives to fulfill and exceed them.  It seeks to build customers for life.  It reaches out to its customers, communicates with them, walks in their shoes and shows a sincere interest in them.  There are no quick fixes for this approach.  It is an attitude and belief system.

(2) Take care of your employees

Employees are not resources like products.  They are human beings and want to be treated as such.  A human business understands and practices this.  It shows

a sincere interest in the needs of their employees. It starts with a safe, secure and environmentally friendly work environment.  For employees to follow a direction you have to set it, share it and let your employees contribute to it. Let them become a part of it.

Dov Seidman states that „working with passion is an engine that is unbelievable. A person with drive and passion does three times the job of another person. But it is not so much the quantity of the job; that is not the point. The point is that they draw crowds; they have followers; they push, and lead, and so achieve much more.“ (Dov Seidman (2011). “How: Why How We Do Anything Means Everything”, p.295, John Wiley & Sons)

(3) Build sustainable business value

Shareholder value is not identical to business value.  Business value comprises short-, mid- and long-term business concerns, interests and investments.  Business value is made up of a number of factors: the overall business performance and outlook, customer satisfaction ratings, market position, innovation performance, the skillset and turnover rate of the workforce, the attractiveness of the company as an employer of choice and many other factors.

Whereas the daily stock price is heavily influenced by quarterly results and a relative short time horizon into the future, business value is more than quarterly results.  Jeff Bezos clarifies why holding a long-term perspective is so important:  “If everything you do needs to work on a three-year time horizon, then you’re competing against a lot of people. But if you’re willing to invest on a seven-year time horizon, you’re now competing against a fraction of those people, because very few companies are willing to do that. Just by lengthening the time horizon, you can engage in endeavours that you could never otherwise pursue. At Amazon we like things to work in five to seven years. We’re willing to plant seeds, let them grow—and we’re very stubborn. We say we’re stubborn on vision and flexible on details.” (Source: “Jeff Bezos Owns the Web in More Ways Than You Think”. Interview with Steven Levy, www.wired.com. November 13, 2011.)

Last but not least, business value doesn’t only look at business numbers but includes corporate social responsibility, too. Klaus Schwab, founder and head of the World Economic Forum, explains that “corporate social responsibility is measured in terms of businesses improving conditions for their employees, shareholders, communities, and environment. But moral responsibility goes further, reflecting the need for corporations to address fundamental ethical issues such as inclusion, dignity, and equality.”

Human business as a compass for organizational excellence

Klaus Schwab’s wide view on business value summarizes what it means when we say that human business is holistic and human-centered and focuses on generating and adding sustainable value to its customers, workforce, business, and society. It serves as a business compass that helps optimize daily operationsand build and sustain organizational excellence.

Walking the Talk. Building a Human Economy

Art of New BusinessAt Motivate2B and The Art of New Business we are witnessing businesses that have made the transition to a human business.  And, we too, follow the principles of human business by ourselves. What else can we do?!  We walk the talk and invite you to do the same.  Please join us and share your stories.

Posted in: Agile, Future of Work, Human Business, Leadership, Sustainability, Uncategorized, WEF

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A Human Business Primer: Overcoming Trump’s Fear-Driven Capitalism, Part 1

Photo sources: “Joy“: https://flic.kr/p/7usYCr. “Fear“: http://tinyurl.com/y8gtw3wj.

Photo sources: “Joy“: https://flic.kr/p/7usYCr. “Fear“: http://tinyurl.com/y8gtw3wj.

This is not another attack on Trump.  Actually, I don’t really care too much about Trump.  What I do care about are the implications of his policies, ideology, worldview, decisions, moods, and, believe it or not, at times his tweets.  And yet, it is not about Trump as a person.  Last week, former President Obama rightly stated that Trump is not the cause but a symptom for a lot of things that have gone array these days in business, society and the world.  And, indeed, Trump is a strong symptom, an excellent and exemplary figure to represent capitalism of the old ages.  The problem is, we no longer we live in the 19thor 20thcentury that were heavily shaped by traditional capitalism Trump loves so much.

Traditional capitalism at its “best”

Traditional capitalism rewards those who seek short-term gains, maximize profits regardless of whether or not business generates value to customers, workforce, business or society.  This capitalism treats humans and the environment as resources, cost factors and numbers in balance sheets.  It thrives in an atmosphere of mistrust, tension, fierce cutthroat and winner-takes-all competition, selfishness and anxiety.  Exploiting or polluting the environment is considered collateral damage and, hence, not evil.  The dividing and widening gap between rich and poor is dismissed as a distraction that can be fixed – by the free market. While proponents of traditional capitalism don’t negate the fact the world is becoming ever more volatile, uncertain, complex and ambiguous they are not really concerned about it because they believe that the established business principles, processes and rules can handle these challenges, too.  And, if there were a problem it is probably because some people, organizations or governments neglected these established principles.

Capitalism is not dead. It is outdated in its traditional form

I am not a critic of capitalism per se (how could I, having been trained as an economist?). Fact is that traditional capitalism leads to a dead-end, does not answer today’s challenges in a VUCA (volatile, uncertain, complex, ambiguous) world, widens the gap between rich and poor, exploits and threatens to destroy our environment and thus our own planet. This is not a call to end capitalism – this would this too simplistic.  And it would be plain stupid for capitalism is a core element of business which we, people, need to survive and thrive.  What we need is a different, a new business paradigm that not only helps find solutions to today’s problems but can also serve as guidance to sustainable business in the 21stcentury.

The Human Business Paradigm

The good news is such business principles already exist. They constitute the Human Business Paradigm.  These principles can serve as a new compass for doing business in the 21stcentury.  Let me summarize its key principles:

The Human Business Paradigm
1. Human business is holistic and human-centered, i.e., it focuses on serving and delighting its customers, workforce, business, and society.

2. The purpose of human business is to generate and add sustainable value to its customers, workforce, business, and society.

3. Human business promotes diversity in the workforce, reflecting an open society.

4. Human business advocates cross-functional and self-organizing teams.

5. Human business nourishes joy and happiness in its daily operation.

6. Human business practices and nurtures conscious leadership of enablement and empowerment.

7. Human business cultivates open and learning organizations that embrace change and thrive for continuous self-improvement of products and services, processes and people.

8. Human business provides and shares guidance for responding to rapid change in business and society.

9. Human business understands profits as a means to fulfill its business purposes; i.e., human business is purpose-driven and not profit-driven.

10. Human business advocates a circular economy, in which we keep resources in use for as long as possible, extract the maximum value from them whilst in use, then recover and regenerate products and materials at the end of each service life.

Walking the Talk. Building a Human Economy

During the next couple of weeks I plan to dwell into each of these principles and share concrete stories of companies, organizations and projects that practice these principles.  At Motivate2B and The Art of New Business we walk the talk; and there are many other businesses that do so already.   I invite you, too, to join us and share your stories.

hba-banner-15-12-2016

Posted in: Agile, Creative Economy, Future of Work, Human, Human Business

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Enter the Age of Agile!


Dear friends,

41T6mA9ISmL._SX330_BO1,204,203,200_This is to let you know that Steve Denning and his partners are offering an amazing array of Agile leadership and management gifts will be available this week for early purchasers of Steve Denning’s new book, ‘The Age of Agile: How Smart Companies Are Transforming the Way Work Gets Done’. The list of gifts of gifts is here: http://stevedenning.com/Workshops/launch2018.aspx and the gifts will become available tomorrow, Thursday February 8 at 4pm US EST. Some gifts are in limited quantities and are likely to go quickly. Check it out. You won’t be disappointed!

There are 41 gifts, some worth thousands of dollars, and you get access to all of them. For instance, Richard Sheridan of Menlo Innovations is offering places at his famous five-day deep dive at Menlo Innovations, worth $3,650, Professor Rita McGrath and many other well-known figures from the Agile community are offering consultations, workshops, books, videos, articles and other tools. Myself I offer a presentation and an initial one-hour consultation about and for Agile MVP’s. In this presentation and consultation I share my experiences about what it takes to set up Agile projects for success, namely motivation, vision and Agile practice for the project, the team and the business. In addition to the presentation I share a free template ready for immediate use. Places will be limited.

And even if you cannot (or don’t want to) secure any of these free give-aways, you will still get so much out of Steve’s new book. It’s not another about Agile. It explains why Agile is a new business paradigm and how you can embrace it and succeed.

Good luck, happy reading and lots of joy practicing and being Agile,

Thomas

Posted in: Agile, Future of Work

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Orientation for Shaping the Future of Work


How can you shape the future if you don’t even know how it will look like? Even more so if the present situation is volatile, uncertain, complex and ambiguous?” – These were two questions that were addressed during a workshop I facilitated with my business partner Dawna Jones on January 17, 2017. The by invitation only workshop took place in a beautiful chalet in Klosters, far away from the noise and distraction of a bigger city. The six of us came from different backgrounds: the medical profession, business consulting, digital marketing, cultural training, leadership training, and yoga.

The key to shaping the future of work is ORIENTATION

Photo by Plumbe|Pixelio.de

Photo by Plumbe|Pixelio.de

As different the backgrounds and viewpoints were we agreed on one thing: That in order to make sense of what is emerging in the world of work, it is essential that you have an orientation about where you are coming from, where you are now and what you would like to do. Admitted, this is a simple insight. But then it is an insight lots of companies and organizations don’t even have. Fact is most companies and organizations either don’t have time or don’t take the time to reflect their purposes and visions because they too busy handling present challenges. They are so busy that they may not even realize the many ongoing changes around them. This goes well until they are faced with seemingly insurmountable challenges, e.g., an increasing turn-over rate in their workforce, new competitors entering the market, disruptive innovation destroying existing business models, etc. Trying to cope with these challenges with established tools of the past may work but are is likely to be doomed given that these tools and processes have prevented to embrace change in the first place.

Rapid change

Photo by Dr. Stephan Barth | Pixelio.de

Photo by Dr. Stephan Barth | Pixelio.de

The market place and world of work are changing at a rapid and increasingly faster pace. Technology does one part and yet it is only one out of many factors. Especially millenials are less likely to stay at a company for their whole working life. They want more than just a job. They demand jobs that have meaning and they can identify with, where they can make a difference, and a job giving them enough space and time for other activities. Change is a natural, it is a given and they may even got accustomed to this VUCA (volatile, uncertain, complex and ambiguous) world. At the same time millenials as well as everyone who is aware of the VUCA world needs orientation. And this is the chance for companies and organizations to shape the future: providing orientation for its people.

Business fundamentals will not change

However, established working and business models do not offer the answers to these challenges anymore. With growing uncertainty and volatility in the market it is increasingly difficult to plan the future. On the other side, there are at least three fundamentals in business practices that are unlikely to change. These are that a company or organization

  1. has to to serve its customers and clients,
  2. needs people that help achieve business goals, and
  3. has to generate some form of profit or benefit.

Business has to re-adjust its focus on PEOPLE

Business fundamentals don’t change. Unfortunately, most companies and organizations seem to have forgotten them. For the fundamentals reveal something deeper. Let’s have a look at this.

Photo by Peter Draschan | Pixelio.de

Photo by Peter Draschan | Pixelio.de

  1. Customers:

Customers are better informed, have a greater variety of products and services to choose from and consequently have greater influence than ever before. Companies and organizations that want to generate and keep their customers and clients need to delight them. For this to happen, they have to understand their needs and desires, whether they are apparent or still developing. The market is no longer exclusively business-driven but becomes increasingly customer-driven, too.

  1. Workforce:

As mentioned above people are less likely to stay at one company or organization for their whole working career. But it is also a fact that people are more likely to stay and perform at a very high level, if they are happy at their job, if they identify with the purpose, vision and goals of the company or organization, if they can contribute to success and their contributions are seen and acknowledged. In other words, people don’t want to be treated as resources but as people, as human beings. This requires human-centric leadership.

  1. Profits:

Profits have always been, are and will be important in business. This will not change. However, it is crucial to understand that profits are a result of good business practices, are the means to do business. What matters more than short-term profits is overall business value. Short-, mid- and long-term goals and profits have to be balanced. Corollary, an incentive system for managers with only short-term profit goals is myopic and may harm business in the long run. Focusing on the outcome of good business practices as reflected by profits only while neglecting the prerequisites for business success, i.e., delighting customers and the people workforce, undermines the foundation of a solid business.   Unfortunately, this concept seems to be as foreign to lots of managers of companies, especially publicly traded corporations, as is snow in the deepest jungle.

Good business is human business
Good business practices focus on people – their customers, their workforce and business value which benefits business, their communities and society.

Business fundamentals can shape the future of work

I am not worried about the future of work because we already have the ways and means to shape it by revisiting, understanding and living good business fundamentals: delighting customers, treating people in the workforce as people and building an environment where they can unfold their potentials and, last but not least, ensure and sustain business value.

Living these fundamentals not only gives an orientation for the present and future, it can also be a driver for the future and grasping the many opportunities that lay ahead of us.

Policy makers should learn from business fundamentals

The outlined business fundamentals are not limited to the world of business. They are applicable to the public sector, too. Indeed, I believe that policy makers have to understand these fundamentals and live them.

People demand orientation for the present and future. But, they are sick and tired of the old rules of the establishment where there seems to be no place for them. Populists such as the right-wing party AfD in Germany, politicians such as LePen in France or Trump in the US know way too well how to fill this vacuum. They cry out simplistic slogans, promise a better world, a break with the establishment – and all they really want is power and control. Their visions are based on the past. They would like to hold back time and maybe even go back to the times when the world was more secure and easier to grasp. And it is true that the past was less volatile, uncertain, complex and ambiguous. But the past is gone. Hence, using the past as an orientation for the future is misleading and dangerous because it does not help solve any problems but instead raise fear and distrust.

Photo by Daniel Stricker | Pixelio.de

Photo by Daniel Stricker | Pixelio.de

What we need is an orientation for today and the future. Policy makers need to understand the needs of our people. And they have to work with them building a vision of a future which is worth living for and which gives hope and orientation for today and tomorrow. However, any attempt of policy makers to offer the same old same old, established programs and empty promises will lead to nowhere and will be exploited by populists which withhold people from unfolding their potential.   What we need is orientation which focuses on us.

Posted in: Future of Work, Human, innovation

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3 Most Common Barriers Keeping Conscious Business Leaders on the Hamster Wheel

[originally published in the Huffington Post on 25 Nov 2016]

If there ever was a time to realize creative potential inside companies it is now. A quick look at the top issues facing companies of all sizes reveals the usual short list: attracting and retaining talent, managing reputation, with the need to create flexible workplaces and balance benefits with bottom line. While tempting to view these challenges with concern over the bottom line, doing so sabotages gains possible when entrepreneurial spirit applied to innovation is ignited full throttle. Even conscious business leaders, who keep an eye on the horizon (longer term), getting work done and being attentive to workplace dynamics, are still susceptible to running around in circles.

In case the term ‘spirit’ is distracting, a definition is in order. Personal spirit refers to three measurable elements:

  1. initiative,
  2. sense of control, and
  3. outlook on life.

Entrepreneurial spirit combines personal spirit with a sense of adventure, willingness to experiment, an insatiable desire to learn and a capacity to bounce forward.

Without entrepreneurial spirit at play, companies plod through the motions, guided by habitual processes and routine. The company runs on auto-pilot so much so that either the purpose of the task is assumed, or the underlying agenda is to explicitly or implicitly control behavior. Either way, the company falls asleep at the wheel numbing leaders into the same repetitive albeit comfortable cycle. Running hard to wind up in the same place.

Context Drives Behaviour and Regulates Entrepreneurial Spirit

The term ‘conscious business leaders’ applies to a small group since

85% of leaders in the U.S. are operating at the survival level. [See Seizing the Executive Imperative To Expand Consciousness] One source of the hamster wheel is the existence of internal politics. Behind internal politics is the desire to protect personal reputation at the expense of achieving business goals. Aversion to risk, and therefore innovation, is inherent. Entrepreneurial spirit suffocates in working climates where trust is low and expression of diverse ideas is suppressed. In contrast, innovation requires creativity and a comfort with uncertainty.

The Impact of Systemic Barriers

Systemic beliefs add to the pressure of delivering on short-term goals blocking innovation and adaptability. Attracting and retaining talent, or mitigating risks to reputation are restricted to a narrow set of strategies arising from one or more of these three dangerous barriers:

custom_sign_with_traffic_cones_11627Focusing on Recurring and Constant Barriers

Characteristic of problem oriented, adrenaline charged companies is the persistent focus on solving problems. Problems love analytical thinking. Innovation on the other side requires exploratory thinking – the opposite of problem solving. Linear thinking doesn’t help because problem solving tends to assume that there is a singular root cause. In a complex system, multiple causes exist. Unless perception is expanded you will find yourself running in circles: busy but not productive.

Asking leaders to innovate and apply their entrepreneurial spirit while continuing to focus on barriers keeps everyone running in a loop.

Personal Impact:

Leaders find themselves chasing problems. Since what you focus on expands, problems also expand. Adrenaline is addictive as is the illusion of feeling in control. In workplaces designed to control behaviour, business leaders at every level will find themselves repeating the same patterns over and over again.

Insight
Awareness of what you are focusing on helps you develop flexibility in how you perceive (see) the situation. Increasing flexibility gives you more options, while letting go of the need to control everyone else. It is a start at least.

custom_sign_with_traffic_cones_11627-3Falling Unconsciously into Organizational Patterns and Behaviors

Beliefs keep decisions running in a rut and operate without being noticed until you systematically poke them to the surface. For example, walk into a company that believes it exists to purely make a profit and you will find behaviours shaped by those beliefs. Or if, for instance, the core belief is that employees must be told what to do, then selection of metrics and implementation of performance management strategies will reflect that belief. Beliefs drive decisions unless the company and business leaders have deliberately worked with values as a principle-based approach to decision making.

Where habitual patterns operate on unchecked auto-pilot, efforts to explore and experiment (the prerequisites for innovation / entrepreneurial spirit) run smack into complacent thinking. “Do something different, but don’t change anything.”

Organizational Impact:

Take a look at the metrics. Whenever a company focuses on quantitative measures and statistics alone, meaning is likely to be missing. Without meaning there is no inspiration and no fuel to fire up creativity, much needed for innovative responses to uncertainty.

Insight
Reflecting to observe patterns in recurring issues or undesirable results, strengthens ability to pivot.

custom_sign_with_traffic_cones_11627-2Losing Connection to What Matters Most to You

By far the biggest barrier is to sight of what matters most to you as a fully aware and caring human being with a desire to contribute your talent to something meaningful. Yes, food needs to be put on the table but the days of trading your soul for security are gone. Rather than being driven by the need for societal approval or by metrics that manipulate behavior reconnecting to your personal sense of purpose and of inspiration is the only door available going forward.

Insight
Personal reflection to identify what you rely on: social approval, meeting external expectations for instance, enables you to chart a course toward personal fulfillment.

What do you see as the barriers to stepping off the hamster wheel and do what you believe, deep down, you’re truly capable of?

About Dawna Jones:

Dawna Jones delivers customized workshops and insights raising leadership and decision making awareness of a wider spectrum of skills and intelligences. She provides dynamic oversight into organizational change initiatives by spotting the patterns, and openings for innovation and fresh approaches to working with complex adaptive systems. Contact Dawna through LinkedIn or directly at www.FromInsightToAction.com

Follow Great Work Cultures on Twitter: www.twitter.com/GWCLeadLink

Posted in: Centeredness, Future of Work, Guest Blogs, Institute, Uncategorized

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3 dangerous pitfalls that keep conscious business leaders away from grasping the future of work in today’s digital age

Welcome to the future of work

Many of us know that today’s business world is changing. This is not new. It has always been this way. Alas, it is also a fact that due to digital change the pace of change in our business world, economy and even society as a whole has picked up tremendously. 5 years ago nobody talked about Tesla or Uber. Today not only lots of people heard about them and actually use their products and services, these products and services change the interactions and dynamics of business altogether. There may be some glitches, backlashes and opposition to new products and services as it has always been. But, this change, this uncertainty is here to stay. Who knows if, for example, Volkswagen will still be around in five to ten years? Remember companies such as Kodak, Blockbuster or Nokia who were so stable and strong?

Welcome to the VUCA world

We live in a volatile, uncertain, complex and ambiguous world – the so-called VUCA world – and this drives business leaders nuts. Gone are the days of certainty, control, plan and doing business as usual. The compass and direction of the established philosophy that businesses run like well-oiled engines are gone. What stays behind are questions, concerns, fears – and the understanding that businesses have to change if they want to survive and thrive in today’s Digital Age. But, what does it take? – There is no simple answer. However, what we can do is to identify the pitfalls, the backlashes, the viscious circles that keep us stuck in inertia. Here is a list of the top 3 pitfalls that keep conscious business leaders away from grasping the future of work in today’s digital age:

Pitfall #3: Fear of uncertainty

We may understand the need and value of change but we don’t like it and, even more, we hate uncertainty. We overcome this fear of change and uncertainty by planning and controlling processes. By securing a status quo. By the urge for perfection. Oh, yes we may actually embrace change but only as long as we can come up with quick fixes that yield immediate results.

What’s so bad about it? – Change, the New, innovation – they all have one characteristic in common: they are uncertain at the present moment. How can we learn new things if we don’t try them out?! Yes, there is always a likelihood that we fail, that we make mistakes. This is the prerequisite for learning. Or have you ever seen a child who just stands up and walks without first having falling hundreds of times?!

Pitfall #2: It’s about me. I have to defend my realm and power.

We see the value of teamwork – as long as it doesn’t undermine our own sphere of influence and power. Teamwork is great if it serves our own political agenda, goals, aspirations. Or, we empower our subordinates to work in teams. But at the end of the day it is us who have to made decisions. After all, it is us who hold responsibility and accountability. And those at the top, they are there for a good reason and, by the way, organizational hierarchies have proven helpful for decades.

What’s so bad about it? – It is not about an individual somewhere in an organization but a whole business which consists of many parts interacting with each other. Hierarchies may be helpful for administrative purposes but rarely do they promote collaboration across functional fields. High performing teams share a common motivation, vision, goals and values. It is not about levels in hierarchies, it is about a team performing as a unit. Or have you ever seen a soccer team with 11 goals keepers or 11 strikers? The mixture of roles and moving in unison make all the difference.

Pitfall #1: Business is always #1.

Let’s face it, whatever new ideas or approaches fly around, the bottom line is profits and pleasing shareholder interests because, remember, shareholders give us the money. This is why we have to deliver quarterly results that are convincing and look good and we do whatever it takes to achieve this. Everything else comes second or third.

What’s so bad about it? – A business without customers and without a workforce doesn’t exist. It is not a question of what comes first, ‘chicken or egg!’. The purpose of a firm is to create value for the customer. And for this you need a functioning workforce. However, people are not resources or machines but human beings and want to be treated as such. Furthermore, giving them and sharing a motivation and vision of your business will carry your business a long way.

A journey to the future

I doubt it that these pitfalls are new to you. You have either experienced them by yourself, observed in organizations and companies, have read or heard about them. On the other side, you have probably heard of companies that have already arrived in the Digital Age, that don’t talk about or plan the future of work but practice it. There are numerous companies out there and the numbers are growing. The question is if you want to be among them or left behind. And, if you do want to follow suit, what do you want to invest and what are your immediate next steps?

If you are interested, Motivate2B accompanies you on this journey. May it be in workshops, seminars, coaching, consulting or business partnerships. Contact us to find out more.

Posted in: Creative Economy, Future of Work, Leadership

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