Indicators that an Internal OD function is not properly focused

In a previous post, I described internal OD departments as chicken shit brigades, a pejorative term that I do not regret using.

I reread the post and instead of updating it which would force readers to re-read it and find the differences, I have put together a case study that illustrates a few symptoms indicating that an internal OD function needs to be refocused, to use a polite term.

  • CEO Stan stated in his yearly goals that middle management needs to assume ownership of problems, and not escalate almost every issue to senior management for resolution.The level of teamwork and alignment between Stan’s direct reports is non-existent. Stan over-delegates to his direct staff and they have become warlords, who micromanage middle management.

Stan’s HR VP, Gloria, has an internal OD department, which coordinates training programs, allots parking space, coordinates the health/wellness project and leads the Early Bird Retirement Plan for staff fired before the age of 40. Gloria is about to present how internal OD will support the changes Stan strives for. Here is her plan.

  • Middle managers will each be coached on how to assume responsibility. 2 hours per month. 5 external independant coaches will be commissioned from the National Coaching Institute.
  • The Middle Management Steering Committee will put together a mission statement and critical success factors. The committee will be composed of the top 3 middle managers, the HR director and the internal OD function.
  • Middle Managers will get a monthly lecture, on Zoom, on empowerment, out-of-the-box thinking and authenticity.

Internal OD departments which focus on people, not processes or systems, reduce the scope of the real issue to get senior management off the hook. They serve as a mild sedative which transfers blame and delays a solution. At best, they are often irrelevant. At worst, they make solving the problem much harder by delaying system changes until a crisis mode develops.

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Major challenges facing Organizations (and OD consultants)

Recently a few incidents have occured that have ignited my curiousity about what new challenges organizations could be facing.

An airline changed the time of one of my flights a month in advance, causing huge inconvenience and a need to shift about plans. After a frustrating interaction with their customer service in which all my requests were refused, I got an survey by SMS asking me how satisfied I was from the level of service. None of the questions actually enabled me to tell them how they had fucked up my plans.

A client of mine is looking for 3 people who have skills that are in very very short supply. As a result of the inability to recruit these people, one piece of equipment is inoperable,causing quality issues with the final product.

Developers in a company are telling the users that the service and product they bought is fraught with problems, and they recommend not using their product which is “too expensive and not what it was dressed up to be”. 

A company which until recently branded itself as the greatest people place you’ll ever see in your entire life, just fired 28% of its staff. And that is just the beginning.

In the meeting, no one is paying attention, and everyone is texting on their phone. The meeting is well organized; am important issue is being discussed. Noa is texting her daughter. Fred is texting his first wife. And Sammyis texting his son.

 

Challenges:

When a company does not care about customer service, how can an (inevitable) total meltdown be prevented? What are the indicators needed to point out that customers are on the breaking point? At what point do we shift from an apparent, fake customer focus to a sincere dedication to the customer?

If skills are unavailable, what machinery, technology and know how do we need to phase out, instead of pressuring Recruitment to find people who don’t exist.

If “loyalty” is passe, what basic assumptions do we need to change in the way we communicate with our customers when selling products and services?

Is fun-fun, happy-happy or wow-wow a sustainable people strategy? Or are you setting yourself up to be knocked out cold.

How can we ensure focused conversations of complex problems, when no one has the span of attention to do so?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Can OD become aligned with our Diminishing Attention Span?

Given our diminishing attention span, I have written  this post  so that it will take only one and a half minutes to read. Less if you just scan it briefly. If needed, I can send you a brief summary.

OD’s true value expresses itself in enhancing peoples’ relationships, creating a context of cooperation which goes beyond certain specific transactions. That’s the unique and essential “core” of developing an organizations’ human capabilities.

And it takes time to do so.  Meetings take time. And the “time” I am referring to is not a minute here and a minute there between looking at your phone or PC. I am referring to protracted periods of time working on improving the people part of organizations.

Everyone actually has the needed time, there is no doubt about that. But they don’t have the attention span, thus the time spent focusing on any given issue is a few minutes at best. Probably less. We have lost the ability for protracted focus, and this is a boundary condition in which we work. This is not good news for OD. There is no doubt in my mind that we have to adapt to this reality. It is bigger than us; we cannot change it. True, there are consultants who claim that OD can take on huge mega tasks of societal change, but these are the very consultants who often fail at smaller tasks, such as retaining their own clients. So be it. 

Here are a few things I have done, with a very heavy heart, that allows me to continue to practice on in the hostile focus-less époque.

  • No more long group meetings. 90 minutes far max. Even these are few and far between.
  • Personal sessions are 45 minutes at the most. Often less.
  • I tend to ignore people glancing at their phones two or three times during a meeting; if it is more frequent, I suggest that we reschedule.
  • I try not to deal with a wide range of issues, but rather try to keep more focused.
  • At times, I myself use messaging for clients who are extremely busy all the time, albeit I detest myself for doing this.

Let’s be honest; it is a battle of retreat. With all the technology, working from home, and the ubiquitous use of cell phones, relationships have become transactional. And, as a result, most  OD has morphed into a water-down form of “motor oil” to keep the transactions squeaking on and/or by perfuming the pig with wellness, gender parity or diversity. All the former are real issues, but do not focus on the true value OD, namely that good, trusting relationships, healthy interfaces based on fulfilled and negoitiated mutual dependencies  serve as a very solid platform to enable things getting done.

 

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Strange Ways that Organizations Change their Culture

Consultants do not change organizational culture. Consultants and management can change the way that things are done, and as a result culture is perceived as having changed. But there are much faster and different  ways that culture changes. Here are a few.

  • Get a major customer in Japan. This will drive a positive change in customer focus, product quality, and the creation of a long term account strategy.
  • Get heavily fined. If the court slaps a crippling fine on an organization for any one of many infringements, culture changes much more quickly. This works incredibly well especially if the management team is arrogant and self-serving.
  • Be acquired. If an organization is acquired, its culture is usually decimated with a few months to a few years. Cultures die upon acquisition.
  • Massive failures drive cultural change. This includes loss of major clients, severe prolonged fall in stock price or military defeat.
  • Departure or death of a founder. Departing dominant founders who fail to produce the next generation of leadership (especially but not only in family businesses) will trigger a rapid change of culture, not necessarily for the better.

Sadly, companies hire consultants to change culture and it always, always fails, unless external factors are leveraged to harness the change.

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Second Time OD

From time to time, an organization can attempt a OD endeavour a second time, after a first attempt has failed.

For the consultant, this is a challenge with many pitfalls, and in this post I will spell them out, with a few recommendations.

  • The previous consultant did good work, but the organization wanted fun and wow wow wow. This can happen when the work was commissioned by an internal OD and Training Manager, who is fearful for her/his standing in the organization. Example: Galit (internal OD) wanted the sales team to improve their soft skills. The consultant recognized that the products that the Sales team were failing to sell are of low quality and highly priced. But the VP of Engineering has a lot of clout with investors, so it is difficult to remove him to improve product quality. The consultant asked to investigate this issue in more depth and was fired for “poking around and overstepping his mandate”. In cases such as these, 2nd time OD will probably fail, unless the consultant also practices the second oldest profession in the world.

 

  • The previous consultant did poor work and was booted out. I have replaced Kumbaya consultants, rigid old-fashioned consultants who promulgate OD’s western values in the wrong places, flirtatious ladies, and consultants who just did not have the brain power to do the right things. However, the motive of “doing better work than my predecessors” is not a smart one, because it becomes “all about you”. The correct mindset is that the organization, not you, are trying again. If YOU want to succeed where your competition failed, you are setting yourself to be knocked out by your own ambition. Focus on what needs to be done, not where others failed.

 

  • For certain types of clients, second time OD is very difficult. Organizations with a very strong culture which has become a religion are prone to fail because the OD consultant, if not a high priest of the religion, is a heretic. I remember doing a project where transparency was a religion. Of course, it was not, but it was forbidden to admit it. Or I worked for an organization where every decision had to be made by consensus. This of course never occurred, but again, saying so was heresy.So, take a look at WHY your predecessor failed, and if you observe that the organization probably failed because it is impervious to change, but cannot admit it, stay away.
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Why things get worse when an OD intervention starts-and what to do about it

Don’t believe those who say that OD cannot make things worse. The truth is that OD does develop organizations, enabling them to better leverage horizontal team work between functions, mitigate unnecessary escalations, and repair organizational “bugs” by re-empowering people to evoke common sense. However this takes time and initially, things get worse.

Here’s why.

When people start talking about their problems, their expectations go up. However the speed of change is much slower than the rise in the level of expectations. The result is the perception that things are getting worse. This is common sense.

OD projects change the allocation of power generally from top to bottom, but also from side to side, ie, from one function to another. People resist these changes and fight back. How often? Always. For how long? As long as management is not consistent in supporting the change effort.

OD projects have opposition. The opposition arises from managers who see impending threats, from internal OD who moan and groan why they are not allowed to do the work, and from Finance since professional OD is expensive. Often the internal opposition initially creates lots of noise to undermine the success of the OD project.

OD efforts are often trial and error. The trials are sometimes unfortunately similar to finding a good antidepressant-it takes time and some pain.

Change is painful, and very often old problems disappear and new ones surface. Because OD does not solve problems, it replaces them with new ones, of a different magnitude. For example: we have now empowered our hotel maintenance staff to order spare parts directly without going thru the Hotels’ Management Chain’s purchasing bureaucracy. Maintenance is faster; guests are not complaining any more.  But now we need to change the methods/ culture of control and recruitment. New problems. New pain.

My suggestion is that an OD consultant always inform and explain this “initial setback” when before signing up for a job. If the management wants fun and wow, it’s better to clear this up front, and not get burnt.

And remember, HR and internal OD have a VERY low pain threshold, especially if they are the ones that have chosen you to do the work.

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Accessing the Political Skills of Potential Job Candidates

We all know how hard it is to access the compatibility of candidates for a job. Tests, interviews, graphologists, peer interviews: we have all had to eat our humble pie after massive errors of judgement.

I have been way off many times and I am not kind to myself after I miss. But thankfully, my clients are nicer to me than I am to myself because I try to do my best to innovate in order to improve.

One of the factors that I try to access in each interview is the level of political savvy that a potential client has, since more often than not, it is the organizational politics that plays a critical role in the adjustment of the candidate. There are a lot of organizations which don’t test for political skills, especially organizations that are very political. The army and family businesses are a good example, as are large and older organizations.

I will provide some examples of how I try to access political skills.

  • For a family organization

The CEO, your boss, is extremely dominating. Furthermore, some of his critical decisions are made in haste. The CEO’s mother wants to speak to you next week. She is the former chairwoman and founder. What are your thoughts? Plans? Fears in any? Describe your approach.

  • For an engineering job at a senior level

You have been asked to submit a budget to present to the Board which covers 60% of what you actually need. Your boss has told you that the budget submission is a political act, and later on down the line, he will allocate “whatever is necessary”. How will you react to your boss’s request?

  • For a business development role for hi-tech

You are about to meet with new investors who may be interested in injecting money into the company for which you work. You have been thinking of jumping ship because the next  product releases are 1) too buggy and 2) too late; you are pretty negative about where your company is heading. You know that these investors will really bad mouth you if you mis-represent, but you need to stay put until you get a new job (which is not easy) because of your mortgage payments. What’s your plan?

These are just a few of the many examples I have developed.

Try doing so next time you are fishing for a candidate. It may add just a bit more of validity in the perilous process of predicting success.

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Organizational Stupidity

Andy Borovitz’s book Profiles in Ignorance documents the increasing degree of stupidity in the political domain, documenting such figures as W Bush, Quayle, Reagan, Pailin and Trump.

Phenomenally funny book. And it got me thinking about stupidity in organizations.

But first and to be fair, the book is one sided.  There are other examples of ignorance BOTH sides of the political scale, such as Kerry’s middle east policy, knocking off Senor Kaddafi, and Carter’s total misreading of Iran as a island of stability just before the old Shah was disposed.

It appears that stupidity is not limited to one side. In organizations, this is doubly true. At face value, organizations have become more sophisticated over time. Augmented by computing power, easier financing terms and a manpower pool from the global economy, vast knowledge about the market, organizations should have become much smarter. But this has not happened.*

Organizations’ increasing stupidity is often fueled by the innovations that they have adopted. In this post, I want to point out examples of organizational stupidity all based on my experience and observation. 

1-Your customer base and our technology acquisition.
We have a great technology but a weak customer base. You have a strong customer base but your technology is weak. So, let’s create synergy by acquisition and sell our technology to your customer base.

And I ask, how stupid do you have to be to know that this seemingly simple plan almost never works, because of all of the personal, political and technical issues involved?

2-ERPs
Enterprise resource planning certainly solved a huge set of issues (speed, compliance, built-in siloism) only to create a shitload of new problems, such as the elimination of common sense, lack of flexibility, process Nazism, and a thriving blaming culture fuelled by constant escalation of issues to senior management to solve problems fueling by these very “integrated” processes.

Sounds stupid? It certainly is, unless you understand that all innovations solve certain problems and create others.

3-Spokesmen and Perfuming Pigs
In an attempt to deal with image problems stemming from the intrusive role of the media, organizations began to view “looking better” as much more important than becoming better. This lofty goal was delegated to the spokesperson, and or course, often times this fueled lack of trust on the part of the consumer, as well as the process of “hiding” information from and by the spokesperson.

Can you really sell a 20 Euro ticket from Barcelona to Rome, or a 15 Euro ticket between London and Dublin or an 8 Euro trip between Cairo and Entebbe whilst providing good service? Can airports handle the inevitable havoc as the serfs and hoards start to wander almost freely? Of course they can’t, but by perfuming the pig, organizations appear to be “cruisin’ for a bruise” and/or digging their own grave.

4-Shadow work
Organizations seem to believe that you work for them. And thus, they download their jobs to their consumers (shadow work), generally via phone support which is often almost impossible to reach. Try installing a new router on your own, or transitioning to fiber optics; try assembling a water filter every six months.
Shadow work denigrates the reputation of companies, results in huge turn over in call centers, and to a lack of customer loyalty.

5-Constant Reorgs

In another post, I have spelt out the stupidity of constant reorganizations.

And back to stupidity, becoming media savvy probably has created politicians who know how to “look good” as opposed to being compatible to the job. And constant innovation and the need to be fast and flexibile have created new organizational configurations, riddled with stupidity.

……………………………………………………..

*Today’s organizations remind me of great boxers with a powerful punch on one hand, like Floyd Patterson or Amir Khan or Vladimir Klitchko, yet with a glass chin- meaning critical weaknesses that leave them exposed to being knocked out in well fell swoop.

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When an OD intervention is stuck

OD interventions are not physics.

It is difficult to predict when an intervention will have sufficient traction to drive change only to slow down, unravel itself back to square one, or even suddenly regress only to be worse than it was in the beginning.

In this post, I want to provide a few guidelines (about what can be done when things get stuck)  that I follow myself and also suggest to the people I supervise.

  1. Defocus. Instead of working on one or two directions, try several directions, all at the same time. This will enable to work with what you have. Remember, organizations can be very unpredictable.
  2. Use the “stuck in a snowbank” routine. Well, I’d better explain. I learnt to drive in Quebec during January’s severe winters. When stuck in snow, you can move you steering wheel slightly to the right and left, then go slowly back and forward, then back and forward, rocking your way out. So, applied to organizational development, this would mean: look at your mandate, widen it or narrow it down, and/or don’t apply constant pressure in the same direction. Or, push forward and allow things to regress, then go forward again and again, and back, until there is change.
  3. Look for hidden agendas. Who is benefitting by the lack of progress? Is someone in HR trying to replace you as a vendor? Is the CFO trying to cut down costs? Is your client just stringing along with you to please his boss.
  4. And never think about you. Change is not about your success, but rather the success of the organization. If you want faster change to make yourself look good, you are in the wrong business. So when things get rough, don’t make stupid mistakes and get thrown out in a futile attempts to look good.

 

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Suggested emphases for Organization Improvement in 2023

Yeah, I know. 2023 plans have already been put in place and signed off on. What can I do?

Perhaps I am not the Speedy Gonzales that I used to be.  

Nevertheless, a bit late,  here is a list of things that I will continue to look at closely in my diagnostic work in this coming year.

  • To what degree has digitalization negatively impacted interface with the customer base and what is the recovery strategy for this?
  • What types of skills are to be lost with the introduction of artificial intelligence of different sorts? Has there been appropriate risk mitigation?
  • For which organizational weaknesses do the “product heroes” compensate? What plans are in place if these heroes jump ship?
  • Where has common sense been eliminated by process Nazism? How is it possible to restore the rule of common sense in such situations? And as US-based consultant Peter Altschul has added more about common sense in personal correspondance, “what is the relationship between common sense and policy? How do the two influence each other? To what extent is common sense connected with culture?”
  • How can in house communication and trust be improved by making sure that electronic communication is not used to blame or transfer hot potatoes?
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