Towards a new Operating System for OD-Developing Global Leaders

 

Minahan and Norlin in their recent article “Edging Toward the Center” (OD Practitioner: Vol 45: 4, 2013) suggest a move away from the extremities of OD which may have been applicable in the past in the happier days of OD and suggest that OD should migrate to the centre, i.e., towards bringing more value to clients without abandoning OD’s core values. I suggested in my critique of that article that this is “too little too late” because OD has been almost “voted off the island”; I also suggested we needed a new Operating System for OD, not a bug fix or service pack. I proposed six principles.

The goal of this post and the next 3 posts is to provide examples of each of the 6 principles I proposed as a new operating system for OD.

3) Develop global leadership/followership capabilities across acutely diverse cultural divides, which factor in value and behavioural  preferences of  all major cultural constituencies. (By acutely diverse, I do not mean merely a colour or food preference divide)

Amir (m) is an outstanding global leader. He is aware of the limitations of his own culture; his basic assumption is that things get done very differently all over the world. Amir has pushed back with vigour on HR attempts to push for unified way of doing things, promulgated in phoney globalism training.

Amir is multi-lingual. He speaks 3 languages and reads books, novels and newspapers of every country he visits. Before his recent visit to Turkey, he read Hurriet for a month, to be savvy of what is going on. When Amir visits different sites, he generally stays for the weekend.

He uses what works: Amir is high on relationships in Asia and in the Mid East, high on process in the US and parts of Europe. He is forceful yet tolerant when dealing with the creative yet undisciplined Israelis and orderly and disciplined when dealing with the Germans. Amir defines this cultural flexibility as his key skill.

When East meets West, Amir does not force feed western ways. Amir does not even push traditional “transparency” in cultures with “face issues”. Amir is quoted as saying “It’s my job to learn the bad news”.

In HQ, Amir’s chooses to surround himself with senior managers from different cultural backgrounds to ensure that the touch and feel of the organization’s HQ has huge variance so that it is user friendly to the extreme. For example, he constantly grills product managers about the cultural  variance of each major market before he ok’s travel.

When he visits Japan, he uses an interpreter and the meetings are in Japanese.

Amir looks at his role as a trust builder between his unit and the rest of the world. “I create a platform on trust and deals are plugged into that platform”.

Amir is very different from the managers who are trained by todays’ OD consultants, who promulgate “patience”, and “sensitivity” and listening skills, and perhaps even “know thyself”. Yet underneath todays consulting is a hidden bias of….one day folks will be develop and do things “our way”. Why does OD have this bias? Because OD itself which”leans” to and on western values.

When OD gets this right builds development of global leadership into the operating system, the sky is the limit of how much impact OD has.

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Cross Cultural Literacy: A major component of the OD Operating System

Minahan and Norlin in their recent article “Edging Toward the Center” (OD Practitioner: Vol 45: 4, 2013) suggest a move away from the extremities of OD which may have been applicable in the past in the happier days of OD and suggest that OD should migrate to the centre, i.e., towards bringing more value to clients without abandoning OD’s core values. I suggested in my critique of that article that this is “too little too late” because OD has been almost “voted off the island”; I also suggested we needed a new Operating System for OD, not a bug fix or service pack. I proposed six principles.

The goal of the previous, this post and the next 4 posts is to provide examples of each of the 6 principles I proposed as a new operating system for OD.

2) Drive cross cultural organizational literacy, so people from different cultures can understand the different view of organizational life
.

Cross cultural organizational literacy is the ability to understand organizational life as someone different from you understands it, and thus design organizations and organizational life appropriately.

People from all over the world see organizational life very differently and behave differently.
While the external veneer of organizations may superficially appear to be similar, “disturbed” somewhat by some background noise stemming from cultural differences, the perceptions of organizational life and desired behaviour actually have huge variance.
Time after time, despite the variance, OD mostly supports organizational alignment around Western values and norms, and thus, OD looses its relevance as a tool to debug problems caused by the global organizational configuration.
Many of the bugs of present day organizing can be debugged if OD approaches this issue holistically: structure, control mechanisms, enabling mechanisms, types of leadership and followership, training, policies, values etc.

Moshe argues to show committment; Shayakit does not give bad news in order to show committment, Hans follows process to show committment.

Stan (US) plans in order to control. Adi (Israel) does not plan, in order gain control. Anil (India) prepares to plan, but them improvises.

When Obe (Japan) is silent, Fred disconnects. When Fred (US) thinks out loud, Obe disconnects.

Sima (Israel) argues with her boss because she cares; then they have lunch together. Sam (Canada) discusses things with his boss, but must be careful not to ruin his career. Chai (Thailand) defers and shows respect to his ignorant boss, whom he criticizes behind his back at lunch with his peers.

Fred (US) focuses on strategy to get the long term right; Yossi ignores strategy to ensure survival; Yossi does not care about the long term. Fred writes off the short term (he lives in an Empire.

Paul (Canada( arrives on time to show respect; Sivan (Israel) will never allow a time constraint to interfere with content, because she respects content not form. Helmut (Germany) believes form is content.

Sally (US) show excitement and optimism to engage people around selling a new product. Pierre (France) feels that undue optimism and excitement disengage him. Som (Thailand), turns off when she hears how “great” everything is.

Organizing has a global configuration today, but OD relegates the aforementioned issues to the realm of “cultural training”. Typically OD would prefer Western managers have patience, and suggest that others grow; thus the growing irrelevance of OD.

Aligning organizations to be global is not cultural training; it is the very heart of OD.

And OD must understand that acquiring the ability to have us all understand how others view organizing is THE critical success building block of the new OD operating system.

Once we get this right, we can become important players in organizational design issues and develop prophylcatic and corrective interventions, far beyond the impact of cultural training.

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On interactions between Israelis and American Jews/ non-Jews in global business

The global configuration of business, the huge amount of US companies with an Israeli subsidiary (generally R&D), the growing number of Israeli owned company with a US office (generally marketing and a “shingle” for Wall  Street) ensure that Israelis and Americans are in frequent business interaction.

Some of the Americans are Jewish; some are not. This post related to observations accrued over time in working with the interfaces of Americans Jews/non Jews with Israelis.

It is important to state a priori that the most frequent error Americans and Israelis make when starting to work together is the assumption of “apparent similarity”, i.e., the attitude that the 2 cultures are pretty much culturally aligned. This is not the case; there are huge cultural gaps between the US and Israelis in communication style, decision making and basic assumptions about how organizations work. The pain caused by the differences is made all the more worse because of the initial assumption of similarity.

The pain causes some interesting things to happen.

1) At times, American non Jews will ask American Jews to try and explain the Israelis’ behaviour. The American Jew quickly learns “how very American he is” and he may find himself feeling somewhat alienated from his “co religionists”

2) An Israeli manager may assume that an American worker who is Jewish may give him better information about a certain situation. This never happens and the Israeli manager is stunned at “how American” the American Jew is behaving. When the Israeli is ultra- nationalist, he may see the American Jew as almost treacherous.

3) Israelis, known for their preference of the informal network as opposed to working the system, will often turn to a Jewish American. But the Jewish  American is American, and he will often not play the game. Thus, the informal networking that Israelis eventually work is the networking done with Indians and Chinese, more than with American Jews.

4) Americans often chose an American Jew to liaise with the Israelis, only to witness that while at times it may work well, this choice  often adds an unneeded hidden dynamic.

5) Many American Jews are very assimilated. Interacting with Israelis makes their ethnic background more salient, and they may feel more uncomfortable in dealing with the Israelis.

6) Americans often find great value in working with an Israel-based Israeli who is American born and bred. Israelis find huge value in working with a US based  American who is Israeli born and bred.

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The Upside of Knowing Nothing- Fred and Graham go to Thailand

Fred and Graham are two senior analog engineering managers who just returned from a joint business trip to Thailand.

Fred (an analytical introvert) was born and brought up in Raleigh and he studied in North Carolina. This was his first trip abroad. Fred attested that “I know nothing about Asia” before he left. “This will all be new to me-all I can say is that I am open to learn and sound stupid’.

Graham (a more jovial and outgoing extrovert) was born in Boston and he has a Chinese-Thai grandmother, which you would never know by the looks of him. He speaks rudimentary Thai yet Graham understands about 80 percent of what is said. Graham visited Thailand as a child, and this was his first business trip. “Don’t worry, Freddy -boy……you may be a better engineer than me, but YOU chose the right guy with whom to go to Thailand. I’ll show you the ropes”.

Fred loved the trip;  he felt comfortable at all times and he was well liked. Fred was patient and “half the time I did not know what was going on”….but more of often than not, Fred managed to engage the people effectively. The clients simply loved him.

Graham was far less lucky. Graham found himself very impatient with the pace of things. Try as he did, the locals did not appreciate his language skills and they preferred answering Graham in English. Graham felt the locals almost resisted him and he felt out of place.

Most strange of all,the clients preferred Fred to Graham, because they felt Graham “speaks down” and felt ashamed of their poor English. The clients understood why Fred went “straight” to business without small talk, and pardoned him. When Graham went “straight to business”, they chided him as “are you sure you are part Thai”?

This story illustrates a complex dynamic between Fred and Graham’s Thai hosts, within Graham’s psyche as well as the upside of knowing that you know nothing.

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Change is not a project that can be managed (revised Dec 18)

In recent posts, I have elaborated on some of the differentiators between Organization Development and Change Management in coping with the implementation of  complex organizational change. This post will illustrate provide a short case illustrating the differences.

Change Management approach is mechanistic. CM believes that change has a beginning and end, and the transition between the two is “manageable”. Change management focuses on delivering predefined changes to managers more than happy to in-source their woes. CM provides well documented and rational road maps on how change management delivers. CM uses a wide of tools, many of them mechanistic to the extreme.

OD views “changing” as ongoing and constant state, not a project with a beginning and end which can be managed like a software release. OD has a dynamic approach to the way events unfold in an organization. OD address underlying dynamics which impact the ability of organizations to adapt, such as power struggles, poor teamwork, lack of engagement, detached leadership and pissing contests. Professional OD consultants are suspicious about constant change programs and futile reorganizations.

The basic approach of OD is that “change” is likely to be subverted unless the underlying dynamics are dealt with. CM often blames underlying dynamics for screwing up their well drawn up plans.

OD focus is on achieving ongoing systemic flexibility and agility, not a one time hit and run change.

Let’s look at this real case which shows the difference.

Case:

MBK, a small Israeli  firm with a cutting edge technology, buys an American competitor with an older and out-dated version of the MBK’s technology in order to gain access to their former US competitor’s install base. The CEO wants to realize these synergies quickly via rapid integration, so he calls in both an OD consultant and Change Manager to get their cut on how this can be achieved as fast as possible.

The CEO wants the propagate the vision of “our wow new technology to our new US  install base-all leveraged and done in 6 months”.

OD’s Plan:

A realistic (aka pessimistic) OD consultant confronted the CEO that the transformation cannot be done that quickly; he suggests a 3 year year period adjustment time is more of less what is to be expected. The OD consultant claims that a vision of  “our new  technology to our new install base” means nothing very practical to the leadership and troops of both organizations. Each and every individual is worried about “what happens to me” and that is the issue which needs to be addressed, claimed the OD consultant.

The OD consultant wanted to start the integration by developing the framework of a flexible planning platform with a very small group of key people from both the US and Israeli organizations . This group is to be tasked with making (and re-make) plans and managing the integration activities which go on. The “plan will probably changes tens of times”, as it  takes into account the  goals of the acquisition, factoring in ways to deal with the massive resistance, fear, anxiety, and political agendas of all. The OD consultant called this plan a “a rolling out plan”, which changes all the time based on obstacles encountered and the derivative adjustment of the integration goals.

The CEO thinks the OD consultant has no  business focus and that he is negative.

CM Plan:

The CEO chooses to work with a  user friendly and less argumentative Change Manager!

The optimistic Change Manager draws up a plan (with his bare hands)  that creates synergies to leverage the newer technologies in the large US install base, creating huge revenues. The Change Managers’ plan, covered in 70 slides, takes 6  months to fully implement. The plan consists of redrawing roles, responsibilities, creating new processes and  some team building (via cooking classes and golf tournaments.)

The CEO is impressed and the CM is hired.

The Results:

3 months into the the plan, the CEO and his change manager look at the organization, and all they see is resistance and push back:  The US team had blocked access to their clients, and the Israeli team works directly with clients, causing friction. Sales are down and the organization is inwardly focused.

The CEO and his CM have stormed ahead, but the troops ain’t there. There are three months left to go and the integration has yet to begin.

The Change Manager and the CEO agree that a motivational speaker will be brought in. The cost of the motivational speaker is $9000.

PS. Naturally, CM and OD have their place in the current marketplace. For commercial reasons, CEO’s prefer the quick and often very ineffective CM fix. OD, caught up in its past, has yet to adapt itself to being relevant in global change.

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Allon  אלון

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Can OD be useful in all forms of change? Allon elaborates on a question from John Scherer

For years, Dr. John Scherer prodded me to write a blog (and a book), and thus any request from my friend John comes to the top of the pack.

In my previous post, I pointed out some of the contextual features of the environment in which OD operates; John Scherer has asked me to elaborate.
I wrote “rapid change is just even  getting faster, making organizational change inhumane; this has grown the business of “change management” and shrunk available business for more classical OD types.”

Elaboration:

1) In medicine, some tumours are inoperable.
2) In law, while anyone can be defended, the legal profession  realizes that in some cases, defending someone is a mere formality.
3) Paramedics who arrive at a massive  terror attack (like Dolphinarium attack in Tel Aviv) first choose who needs to die, so that available paramedic resources are used to save lives.

Now, lets move from the metaphor to the case at hand.

1) OD needs to operate in a playing field where our profession (with its humanistic basis)  is relevant. Not all organizational changes meet this criteria.

2) Rapid change which dehumanizes organizations should not  be the domain OD; dehumanizing change is the domain of a defanged HR (which has lost its way) and  Change Management, which has a ready made productized template for everything under the sun. OD has no value for an organization which undergoes 3 mergers in a year. Similarly, when a Board tells a CEO to close a US based R&D center with 600 people in 2 quarters and open a new R&D center in Bangalore “whilst keeping customers and staff happy”, OD has nothing to offer. This type of brutal change is best handled by HR managers like  Gloria Ramsbottom.

3) OD cannot be effective in all change situations. OD needs to be able to say “not in our domain”-and this will make OD far more effective and far more respected. When we peddle our wares in very rapid and inhuman change situations, we make  mockery of who we are.

4) OD is applicable to changes where OD can be loyal to its humanistic roots; not all clients suit that bill. Furthermore, change which is too fast and too brutal is  out of the ballpark or playing field on which we play.

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Happy New Year שנה טובה

Best wishes for the new year.
Allon
שנה טובה ובריאה לכולנו
אלון

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Value added OD brings to to the strategic process

In a previous post, I stated that OD did not have the appropriate skill set to drive the strategic process single handed.

In the same breath, I stated that business developers and Heads of Strategy are equally unequipped to drive strategic processes single handed.

So what is the value added of OD to the strategic process? Here are the top 3 things I believe OD brings to the table in strategic planning.

1) Strategic planning focuses on technology, markets and beating competition; at best there may be some time devoted to “do we have the organization to support the strategy”. The truth is that any business strategy not linked to an organizational strategy is useless. And the organizational strategy does not support the business strategy, it is a sine qua non of any coherent strategy. OD forces this issue at all times, in order to prevent a business strategy being developed which is divorced from delivery capabilities.

2) Strategic planning has an intense political undertone since players try to maintain their own personal power base in any new strategic direction.  OD plays a major role in building a process which circumvents this enormous obstacle.

3) Organizations have “mega bugs” which  impact the operations of the firm: e.g., wrong assumptions, too little room for dissent, too much infighting, R&D too weak; Sales over empowered to make promises which cannot be fulfilled…..whatever. The list is long.

Very often, these very mega bugs contaminate the strategic process, and the strategic process replicates the mega bugs instead of removing them. (Armies strategize about  “more fire power”; peaceniks strategize by hallucinating about non existing boundary conditions, religious folks always conclude we need to pray more.)

The most important role OD has in strategy is to work to ensure that the existing bugs in the organizations’ basic assumptions are laid bare and discussed so they have less contaminating impact on strategic planning.

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8 Guidelines for Consultants:dealing with the dumbing of consultancy

Opening comments:

Before reading this post I suggest you read the short post called The Dumbing of OD which outlines the slow descent of OD in the last decade. And, to get the most out the following post, you can acquaint yourself with Gloria Ramsbottom, the HR manager we all love to work with.

Main points:

  1. The dumbing of OD may either be cyclical or a terminal illness brought on by the economic model and context which treats the human resource as spare parts.
  2. To deal with the effectively, it is important to set one’s expectations properly-what can, and cannot, be achieved in the present economic paradigm. Many OD folks go berserk and have plans to “change the world”. I suggest minimalistic and achievable goals, “the size of a lizard’s tail”, a term used by the Israeli poet “Rachel”.
  3. No models-only projects. No fads-only solutions.
  4. Whoring gives a bad reputation; avoid doing activities which brand you as such, even if financially pressed. Positioning yourself has a price.
  5. When dealing with procurement, ensure your direct client is with you and that he/she represents you. Do not speak to procurement alone.
  6. Price yourself high. I know this sounds theoretical but it is not; when you charge a lot you have the time and bandwidth to deliver real value. When you lower your prices, you are too busy and all we end up doing is dishing out pre packaged crap.
  7. Be firm up front; you and the client define together what the problem is-no “order taking” from Gloria.
  8. Find people you respect on line or off line to talk about these issues. We all share the same reality.
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Mike thinks De-Ming lacks managerial maturity

“As the results for Q3 pour in and looking in Q4’s revenue projection, it is clear that a reduction is force is immanent. Please prepare a list of the bottom quartile”, wrote  EVP HR Gloria Lemieux to all senior managers-by text message!

Mike Shapiro, Head of Deployment for Europe and Asia Pac, called all his area presidents and conveyed the grisly message. Deming Li (Head of China, Taiwan and Korea) sent Mike an email, cc’ing all his direct reports, that corporate HR should take care of employees and not lend a hand to cutting jobs from overworked engineers which will result in less people doing more work.

Mike was livid when he read De-Ming’s email; two weeks later in a meeting in Singapore, Mike asked Deming for the list of names, and De-Ming stormed out of the meeting and flew back to Shanghai.

However, in parallel, Deming’s HR clerk, Sally Ngai-Lam Xu, was providing Gloria with all the data and names that were needed.

Mike wanted to remove  De-Ming for “immaturity” and a consultant was brought into the picture. Deming explained to Allon that the Reduction of Force is completely justified but De-Ming needed to show his people that he was “protecting them”.

Allon sat with Mike and explained the role of the leader in different cultures.

Mike (from Billings, Oregon) told Allon: “Listen, this is not an issue of anthropology; it is a question of managerial maturity.”

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