Categories
Management and Organization

How Dominic Barton Cultivated Community Change At McKinsey

“I hate to be managed. When someone tells me what to do, the hair on my neck bristles!”

This voice on my phone was not a frustrated millennial, blaming some boss who “doesn’t get it.” It was 53-year old Dominic Barton, Managing Director of McKinsey & Company since 2009, talking about organizational change at his firm.

Dominic Barton, worldwide managing director of McKinsey and Co. ( Photographer: Tomohiro Ohsumi/Bloomberg)

I was interviewing the Canadian-born son of a religious missionary about the success he’s had in moving the global consulting firm towards more flexible and innovative ways of working with clients. With so many emerging community-style organizations in today’s socially-connected knowledge economy (platform models, ecosystems, networked volunteer movements, etc.), I was hoping to learn some relevant new ideas from his experience in the community of McKinsey partners.

McKinsey And Its Community Culture

Approaching its 90th anniversary, McKinsey is thriving today. Its over 1600 partners serve clients in 62 countries, across all regions, sectors and business disciplines. Under Barton’s leadership services and specialized expertise the firm offers has expanded considerably, well beyond what the firm has historically provided. McKinsey’s impact, top talent attraction, and financial results are now (quoting him) “better than ever before.”

McKinsey governs itself as a private partnership, with a distinctive and strong culture binding its members. If you join, you sign up for a tandem mission (impact for clients and developing excellent people), and a democratically elite set of values: integrity, transparency, making people successful, fact-based analysis, and “the obligation to dissent”— to get the best answers, and “do the right thing for clients and colleagues.”

The firm blends collaborative teamwork and competitive meritocracy, with members continuously assessed, up-or-out, for both performance and cultural fit. Partners share profits based on collective contribution. The McKinsey community has been compared, only half-jokingly, to the Jesuit Order.

The Two Sides Of Community Culture

At their best, community-style organizations like McKinsey can excite the aspirations of ambitious professionals. Like-minded relationships, common purpose, and shared ways of working drive higher performance and retain talent.

But organizational communities can have a darker side. Collective zeal and shared purpose may slip into self-satisfied groupthink. The organization can become resistant to new ways of thinking, because “that’s not the kind of community we are.”

Early in his first term as Managing Director, Dominic Barton feared this dark side was closing in on McKinsey.

Calling Out The Partnership

“We had become too internally focused, inflexible, and not keeping up with what our clients needed. We also were missing out on innovative organizations we should have been working with. Our own strategy reviews had argued the same, but implementation of our recommendations was barely one percent.”

In 2012 Barton addressed head-on the need for significant change at an all-partners’ conference in Berlin. Before the self-governing body politic, he seized the bully pulpit and challenged his colleagues to adapt more aggressively to what he and others saw as a dramatically new operating environment. He called on partners to spend more time working with clients; to be more mindful of emerging competitors; to deepen and extend a fuller range of McKinsey expertise in their service, also integrating more across McKinsey’s own internal boundaries; and to be more creative in arrangements for smaller companies and “non-traditional” opportunities.

“It was our effort to kick-start some really needed innovation. We’ve been working on it ever since.”

A Multi-Year Campaign

His remarks scratched the itch of many partners for some generational revolution. But the danger of continued inertia remained high. Dominic began what became a multi-year campaign to renew and transform the community. To do so, he had to figure out how to take charge without taking charge.

Through some trial and error, support from colleagues, and his own tough determination, Barton learned how to do that. He successfully sponsored, nudged, and mobilized progress against “the Berlin imperatives,” breaking taboos about “what we do and don’t do as McKinsey.”

New services were developed to create more hands-on and technologically-driven offerings in implementation support, operations, restructuring, digital, and data analytics. New kinds of talent and experienced hires were brought in to staff those. Experiments were launched and institutionalized around radically different team approaches and contracting arrangements with smaller and “non-traditional” clients. Personnel processes were modified to develop new people and ways of working. Nearly 30% of McKinsey’s current work today now comes from areas that did not exist in the firm even three years ago.

As McKinsey became more “modern,” it became more successful. The growth continues today.

Barton and Nigeria’s Minister of Finance Ngozi Okonjo-Iweala at the World Economic Forum. (Photo PIUS UTOMI EKPEI/AFP/Getty Images)

Getting Help

Barton confesses how difficult the transformation has been. “In the early days the firm was really divided. We’d debate the changes at meetings and then the straw vote was always 51-49.  Also, I made so many mistakes along the way—but luckily had good help, from other partners and former Managing Directors like Ian Davis, Fred Gluck and Ron Daniel. Many, many people deserve credit for the good that’s come.”

I acknowledged the shared leadership but pressed Dominic about what he actually did as Managing Director to change the community.

Three themes and “lessons learned” emerged.

1. Engage the Community With Its Own Values–To Change Itself

Most McKinsey partners, like Dominic Barton, bristle to be told what to do. But if you engage them as fellow problem-solvers—and especially with values that everyone shares—bristling disappears. Brought into the process, the community rises to change itself.

Dominic sketched a few practices that explained more:

Relentlessly invoke mission: “Time and again when we got stuck about deciding whether to add a new service or change a process, I went back to our mission. Asking how it would increase our impact, and talent aspirations always clarified the choices.”

Assert a point of view that dares the community to do better. “The Berlin speech worked because I laid out some bold and provocative assertions, as if I were presenting to a client. Our firm likes to learn from hypothesis-driven problem-solving. Leadership flows from a point of view, and pushing for excellence– it starts people working together to find the best answer.”

Build ownership through co-creative conversation. “Nobody here wants to read a memo from me. You have to go belly-to-belly, work on solutions with people in person.”

“We built momentum after Berlin in a series of ‘Performance and Health Conversations’—groups of partners in open, problem-solving dialogues about why and how we had to do better with our services, and what it would take. Later a large group of partners worked together on updating our overall firm description, ‘McKinsey Today.’ By design, the narrative of who we are as a firm has been cooperatively shaped.”

Promote new practices and innovation, but let the internal market adopt the best ideas: “Rhetoric about change is useless. Better to showcase something that’s working in India, say, and see if it can also take root in Copenhagen. I travel all the time, simply sharing what’s being done elsewhere and learning from the different local practices. And coaching and helping leaders who are trying to make change in their practices or regions.”

“We also launched several experimental practices and engagement approaches. Some have petered out, but others took off. If something new adds value, partners are happy to adopt it from their peers.”

Build change into the self-governance of the community. “Our most critical processes are about self-governance: who will be a partner, and how partners participate in the firm’s decision-making. We are constantly working on that; it’s how we shape the direction of who we want to be, as we evolve.”

“We have a major task force now wrestling with how to restructure governance to accommodate the new talent and modes of working, while still honoring our values. As we grow bigger and more diverse, we have to embrace the good complexity and minimize the bad.”

2. Be Both Part Of And Apart From The Community.

The second theme of Dominic’s change leadership is to adopt a “dual mindset”—think like an equal but also like a first-among-equals.

A community leader promoting change faces a fundamental dilemma: how to maintain the credibility of “being a member”, but also sometimes rise higher—taking appropriate leadership that can rally others when needed.

Barton explained his own dual identity of the last several years—as working partner and Managing Director. Here again, some lessons applicable to any leader:

Personalize the Opportunities and Risks: “I wake up frequently just thinking: ‘What God-given right do we have to be successful? What do we need to do to keep winning?’ As a partner I don’t want us to fail, and as a leader even less so. I constantly try to bring the same attitude I have about my own professional ambition to the overall firm.”

Remain a practicing member of the community: “I can’t do the same consulting load as before. But I’ve made a point of staying involved with clients, helping out teams with new proposals, and attending practice meetings as a substantive contributor. You need the credibility of being a practitioner to influence practitioners. I have to ‘be the change’ I want others to be too.”

Influence others by helping them: “I find that working with someone on actual problems puts me in a better position to help them think differently. People are more open to new ideas if it you’re working together side by side. Much of my job is simply building social capital across the firm.”

3. Go Big When You’re Feeling Most Small

Dominic also identified a third theme, as we closed our conversation: having the courage to challenge the community early on, to take action you see as needed—even though you’re  insecure as a new leader. The window of opportunity will close more quickly than you realize.

“In the early years I felt really nervous. I was untested and I’m sure there were lots of partners thinking, ‘What’s so special about this guy?’ And yet the beginning is when you have the greatest opportunity to change a direction. In Berlin I pushed to be as forthright and strong as before I was named Managing Director.”

“Looking back, I wish I had been even bolder. There’s a cycle of leadership in a limited term. The more competent you become, the less time you have to exercise the authority you’ve earned.”

Barton finished with some self-aware humility. “When I think about all the change we’ve made during my time, and the disruptions and taboos broken, if I were another partner here, I might actually be thinking ‘I hate Dominic Barton.’”

But of course his partners don’t hate him at all. They’ve elected him three times as their leader, and have worked with him and each other to remake the firm– as he challenged them to do in 2012. He retires as Managing Director in 2018, doubtlessly leaving this particular community better off than he first found it.

Photographer: Jason Alden/Bloomberg

Originally published on Forbes.com

Categories
Management and Organization

Are Platform Businesses Eating The World?

Venture investor Marc Andreessen famously wrote “software is now eating the world”— encoded intelligence dominates business. A new book (Platform Revolution) wants to update the slogan. Author Sangeet Choudary (and co-authors, Geoffrey Parker and Marshall Van Alstyne) think the new omnivore is really “the platform:” the digitized, open and participative business models creating commercially connected ecosystems of producers and consumers. The networks and markets forming around—and orchestrated by– Google, Airbnb, Uber, and other virtual exchange enterprises are the maws into which traditional companies are now disappearing.

Understanding The Juggernaut

The tantalizing leap of this book is its focus on a broader pattern of technology-enabled value. The revolution the authors sketch goes beyond algorithms (Google), “on demand” resources (Uber), or “sharing economy” databases (Airbnb). It’s all of the above and more.  Clever software is the core of every platform business, but the book argues that the real juggernaut isn’t the code; it’s the explosively scalable network processes that are disrupting traditional buy-make-sell competition.

Platforms beat old-fashioned “pipe businesses” (as the book calls them) by building new growth markets and innovating communities beyond the boundaries of their central hubs. While taxi companies and Marriott struggle to market assets they own, Uber and Airbnb are expanding into unbounded universes, joining ever more producers and customers. Google’s platform links an infinite supply of people looking for answers to a near infinite supply of advertisers eager to sell into those needs. Platforms win, not just by facilitating such new interactions, but also by aggregating and analyzing the data of it all — so everybody out there gets better at demanding and providing services to one another. It’s a tsunami of monetized organizational learning and adaptation, facilitated across networks of networks.

Probing The Nature Of The Revolution

Platform Revolution does plenty pitchfork-waving, but also offers sober advice for how to get with the transformation. It’s a well-illustrated learning tour of the economics and social dynamics of winning (and occasionally failed) platform businesses.

I spoke recently with Sangeet Choudary about the book, and the wider research that’s earned him a place as a Top50 Thinker. Six insights from our conversation:

Looking Back

1. We’ve seen platforms before—but now, “this time is different.”  “Platform” is not a brand-new idea. Consider, for example, the 1957 “corporate strategy vision” of Walt Disney, diagramming how his creative studio would produce characters and stories to fuel (and be fueled by) a web of businesses in television, music, theme parks, publishing and merchandise.

The authors acknowledge such antecedents but argue we’re now in a whole new game.

Sangeet explained: “Global network infrastructure now allows for much larger scale aggregation, no longer dependent on physical exchange. Markets and other forms of virtual value creation are more dynamic and open than before, and increasingly self-governing—not controlled by contracts or central enforcement. Value itself is more democratized—consumers can be producers and vice versa: you can become an Airbnb provider, but also use the service for yourself when you travel. Finally, the explosion of data, and its use by platform businesses to keep learning is perhaps most significant. Uber, for example, is not just matching rides to travelers, but increasingly predicting and even structuring demand by algorithms that rebalance supply of available cars. Business models are bigger, more virtual, more dynamic, and more intelligent than ‘platforms’ of the past.”

2. Platform value derives from creating scalable, complementary kinds of connections: markets, ecosystems, and communities. Much platform discussion treats markets and ecosystems as interchangeable ideas; and inevitably “community” is another invited guest at the conceptual table. I came away from Platform Revolution wondering if we  don’t need more semantic precision. I posed the question to Sangeet.

“Good question and yes, our book could have been a bit clearer about the relationships among these terms. Platforms create an exchange of value enabled by technology, and the market is comprised of participants making the exchange. The ecosystem is something larger. The overall value of a platform usually requires other players too, e.g., developers who build tools to operationalize the exchange. For Twitter, the platform market is comprised of tweet creators, tweet readers, and advertisers. Its ecosystem would also include developers working on, say, the search function for the platform.”

But What About “Community”?

“Value exchange based on markets depends on incentives, and we think about it in economic terms. But there are two additional elements to the model. Platforms also have codes and cultures; these ultimately shape what becomes a community. Codes are rules of conduct that mediators enforce for operating in the market. Culture is more emergent. It grows out of values and practice as the market and ecosystem mature. It’s more difficult to control; and also (as seen with Reddit and Twitter), the culture of the community can sometimes turn against the platform itself.”

So if culture and community are important, but difficult to control, what’s a good platformer supposed to do?

“We’ve seen that different platforms have different degrees of dependence on community. When market exchange is more commoditized—like Uber or Lyft providing taxis to customers—strategy calls for managing economic incentives. But when a business is more individualized and varied, say apartments in Airbnb or craft sales in Etsy, strategy demands more attention to culture across the markets and ecosystem.”

Looking Ahead

3. Platform strategy is evolving towards a second phase of issues, as the concept matures. Sangeet noted how many traditional companies trying to migrate to platform growth often fail: “The first phase is making markets and exchange work. Companies stumble either by pursuing only incremental changes to their traditional business, or by not fully embracing a big enough ecosystem to create new value.”

OK, I said, but what about longer term?

“Brand will become more important, because ultimately differentiation will move beyond creating efficient market connections, towards overall end-to-end experience. For example, Airbnb has to compete long term on that, and not just matching people with nice apartments. That leads back to questions of culture. Over time, even for some businesses that are initially commoditized, community will start to matter more.”

I asked if, given the inevitable competition as platforms like Uber and Lyft go head to head, “winning the game” will become just a new version of Michael Porter’s classic framework of forces and competitive advantage.

“Yes and no,” Sangeet offered. “Some platform ecosystems will competitively differentiate themselves, e.g. Vimeo co-exists with YouTube by providing a different experience and tool set.  More directly competitive ecosystems will try to close off their rivals—but the fight will turn on controlling demand (actors making the value exchange) whereas traditionally, in the Porter model, it was about controlling supply. For example, in earlier times, your advantage as an oil company was controlling the sources of crude. Today, platform businesses have to try to gain an edge with people offering and buying services. Maintaining that advantage within an ecosystem is much more difficult. An ecosystem can turn against you—as happened with Samsung and Google/Android. That doesn’t happen with an oil field you own.”

The New Oil

4. Watch for competitive battles in the future about data ownership and value. Speaking of bubbling crude, the book reminds us that “data is the new oil.” Sangeet emphasized some further implications about this dimension of the platform revolution.

“Data will become more of a regulatory issue—because members of ecosystems are essentially subsidizing the collection of—and learning from—data as they participate in platform work. Uber drivers, for example, provide huge amounts of data as they drive around—looking for customers, paying for their own gas as they go. We’ll see more pressure for sharing the benefits of aggregated data.”

Photographer: Simon Dawson/Bloomberg

“There will also be continuing global political issues about data. Some platform companies may end up knowing more about citizens of a country than the country itself. That’s one of the reasons China is so adamant about maintaining firewalls around its businesses.”

Whither Leadership?

5. Platforms require a different kind of leadership—attuned to the cultures and governance of the ecosystems they are shaping. My only real critique of this otherwise compelling book was its sometimes bloodless analysis—not enough discussion of people and leaders. Sangeet acknowledged the gap—“remember, Brook, it was two economists and a computer scientist collaborating here”—but he rose to my challenge with a few helpful observations.

“Leaders in platform businesses have to learn not to think of people in their ecosystems like  numbers in a traditional market analysis. For many leaders that’s hard to do.  Future strategy will call for adapting to ecosystems  what best firms  now do internally—focus on emerging high performers for extra development, and manage others with more cultural incentives.”

“There’s also a leadership skill we see emerging in platform companies, about deciding ‘what’s inside, what’s outside’—judging what work should get done at the core of the business, and what belongs out in the ecosystem. It’s not about cost, but more the best way to create value and experience overall: who contributes what to that, where do they sit?”

“New questions will also arise as more tools and infrastructure allow ecosystems to become truly self-governing. Firms, as we know them today are, at least medium term, not going to disappear—but they are starting to shrink in size, as platform models become more important. The next phase of this revolution will raise a whole new set of leadership issues.”

Originally published on Forbes.com

Categories
Management and Organization

Red Hat’s Open-ish Organization

In 2008 Jim Whitehurst abandoned the comfortable hierarchy of Delta Airlines for the freedom-loving culture of Red Hat. Before long, he grasped that the ethos of his new technology company mirrored the spirited communitarianism of the open source Linux movement on which Red Hat depended. CEO in name, but now facing a different game: Whitehurst saw his success would require (as I wrote last August) unlearning command and control.

Jim Whitehurst, CEO of Red Hat (AP Photo/Mark Lennihan)

The leader took the challenge to heart and since then has been pursuing a personal  transformation: fewer executive prerogatives and more “igniting and catalyzing” the raucous tribe of open source enthusiasts at Red Hat. Last spring he published his memoir-cum-exhortation for lessons learned, seven years in: The Open Organization. The book was a paean to a new kind of leadership, suited to our ever more competitive and connected age.

Refining The Secret Sauce

Whitehurst’s story found a ready audience among other leaders eager to transform their own businesses by “becoming more open.” This CEO’s clarion call, backed by the company’s  continuing strong financial performance, began to sound as if a new secret sauce was cooking at Red Hat. A few weeks ago I asked  if we could lift the lid off the pot, and have another look. Had Jim’s post-publication experience led to any new ideas? Improvements? Recantations?

To Whitehurst’s credit, he has always acknowledged his Red Hat leadership journey as a “work in progress.” As I listened to his reflections of the past year, I heard a leader fine-tuning the gentle schizophrenia of the network age: how to be in charge without being in charge? In search of the Open-ish Organization.

Six Insights

1. The greatest value of an open organization is fostering innovation and enabling change. The Red Hat CEO is more clear than ever that open organizations are a strategic response to business disruption. He cited a recent McKinsey study highlighting the large gap between today’s leaders’ perceived need for innovation and their companies’ abilities to transform themselves to deliver it. “This approach is not just about ‘holding hands’ or ‘creative class’ situations. Even traditional manufacturers are under pressure now to innovate. The opportunity to work open is less about collaboration per se than facing the need for change coming into your company. Hierarchies are not responsive enough for managing and adapting to change.”

2. The open leadership challenge is building culture that blends accountability and efficiency with creative and frontline freedom. Whitehurst was equally clear that hierarchy still has its place in the world: “Bureaucracies can get bloated, but they remain good for driving down accountability. The trick is building an organization that maintains the accountability while also encouraging freedom and debate.”

Whitehurst stressed that Red Hat’s open model is in fact a hybrid. “The book should have brought out the combination of accountability and freedom more clearly. Even when I was at Delta our rise from ‘worst to first’ was based on complementing front-line empowerment with top-down management of results. There are some things like safety which shouldn’t be debated after a certain point. At Red Hat we do have people in control. For example, we deliver mission-critical software security that requires high integrity and accountability. We might explore different approaches in our community for securing a system of a nuclear submarine or a major bank, but once we decide, we settle—and expect everyone to follow along.”

Jim began to sketch the bigger pattern. “Red Hat does have a CEO and a chain of command. We use open culture and networks to innovate and develop strategy, and a top-down hierarchy to deliver quarterly results. There’s ultimately a continuum that every company has to consider. Where they fall on a spectrum of efficiency versus agility and being able to change—that’ll determine how open they should be. But even the most staid companies will need some combination—because everyone has to innovate at some level today. And yet they also need to deliver quality products. The book should have been more articulate about finding the balance. The open leader has to manage the inevitable friction points between the two sides of this kind of culture.”

Management, Leadership, Or Both/And?

3. Open requires rethinking “management” vs. “leadership.” The Red Hat CEO implied finding such a balance means abandoning the historical split between “management” and “leadership.” He began with the analogy of the behavioral revolution in economics. “For years that discipline was based on simplifying assumptions that people were rational. All economists then built models around that. It was imperfect, but you could do the math. Today economists are embracing human emotion and revolutionizing their theories accordingly. There’s not yet a universal science because the math of behaviorism is too hard. But we’re understanding more and more that emotions are part of what drives markets.”

“In the last century the ‘science’ of management began with similar simplifying—but imperfect–assumptions: that people would be rational in the workplace. The idea evolved that leadership was different, primarily for motivation and inspiration—tapping into emotions, getting people to want to do things. By contrast, management was about rational coordination. So we started to have different disciplines dedicated to leadership and management.”

“I wanted to write the book because the Red Hat culture is about bringing both leadership and management to scale—and doing that means also bringing them together. Communities have to be inspired and motivated, but also coordinated for results. In an open organization you can’t separate leadership from management. I would emphasize this more if I wrote another book.”

Shaping A Hybrid Culture

4. Focus, tools and techniques can shape the hybrid culture. Jim Whitehurst acknowledged that “it can be fuzzy how accountability gets grooved in an open organization—so I spend a lot of time thinking, talking, and memorializing how to make our culture work. It can be hard to learn, for new people coming in.”

As I questioned further, he mentioned a few mechanisms Red Hat has been developing, to clarify ownership and expectations in a company that also celebrates dialogue and autonomy. “We just published an ‘open decision-making framework.’ As we get bigger, we wanted to document and promote best-in-class approaches to making decisions using open principles, without getting pulled into consensus thinking. Our decisions are inclusive, but not democracy.”

Cultural Multipliers

“We’re also now trying to measure the ‘Red Hat multiplier effect’—specific ways our cultural values contribute to performance: collaboration, trust, etc. But we need to get crisper. We’re also beginning to measure why it is certain people make a positive difference to a team, even if they themselves aren’t the biggest star. It’s similar to what’s been discovered about Duke basketball player Shane Battier—whenever he’s on the court the team overall performs better–but he’s not the top scorer.”

5. For most organizations, moving to open will be a gradual transformation. Since his book’s publication, Whitehurst has been questioned about how to create the open organization culture in other enterprises. Emphasizing the transformational challenge for any company, he’s brainstormed with other leaders about possible accelerating strategies, e.g. “employee surveys or other bureaucratic jiu-jitsu that actually uses hierarchy for employee engagement. In the end, however, energy needs to come bottom up. And culture building is always a long process.”

He pivoted to another analogy. “The reason the U.S. legal system is so good is because it’s evolved through hundreds of years of case law. You can top-down mandate something like the Napoleonic Code—but it’s not going to be as durable or engaging as ours.”

Watching For Movement

6. The rising influence of technology in all businesses is now the likeliest driver of a broader “open organization” movement.

So is there an open organization movement actually building now? Whitehurst paused.

“Not really yet. I see a lot of companies doing this here and there,  in pockets. But we don’t have a long list of other examples so far. Remember, it’s hard to do this at scale. That’s what’s been distinctive about Red Hat. ”

But The Open Organization author finished with a few buoyant thoughts. “Remember, I had the benefit of being thrown like a frog into the boiling water when I came to Red Hat. I had to start quickly, though I soon saw the process itself would be long. But as technology becomes ever more central to companies, and the disruptions and pressure for change and innovation continue, I think open-style culture will become more mainstream, and spread to more businesses. It’s not restricted to technology, but will likely began in that part of large enterprises.”

“We’re already seeing that in some of our clients, and also competitors. The movement will expand,  most likely following the open source philosophy itself: ‘start small, iterate, and grow from there.’”

Frogs everywhere, please note.

Photo: BORIS HORVAT/AFP/Getty Images

Originally published on Forbes.com

Categories
Leadership

How Winning Professionals Manage The Three Eras Of Their Careers

(AP Photo/John Locher)

If you cut your finger, reach for a Band-Aid. Wake up with a headache, grab two Aspirins. But quick remedies aren’t a regime for managing overall health. Nor for managing a career. You can power pose like Wonder Woman to boost your self-confidence, or  tweak your mornings to be more productive. Helpful stuff, but not the same as a conscious, long-term plan to develop professionally over a lifetime.

OK, how to think about that?

I recently put that question to Kathy Gallo, Founder and Managing Partner of the Goodstone Group. Kathy has developed business professionals for some twenty years, and now oversees a global network of 65 professionals who coach leaders at all levels, in companies ranging from start-ups to Fortune 50 corporations. She answered with an eager smile.

Kathy Gallo, Founder & Managing Partner, The Goodstone Group (Photo by David Beyda, with permission of The Goodstone Group)

Learning From Patterns

“Well, we shouldn’t paint with too broad a brush. Everyone must build their own plan over time. But you can learn from patterns, for example how winning professionals manage their careers through lifetime eras—early, mid, and later career, or roughly speaking, in your 20s, 30s, and then 40s and beyond.”

Gallo began with a few cross-cutting themes. “Throughout a career, three leadership competencies are always a focus: problem-solving, executional capabilities, and people skills, especially “emotional intelligence” (leaders’ ability to read other people and connect it with what’s inside their own head and heart.) Then context—being aware of your organization’s culture; and changing it for the better when you can. Great performers work on all of these in every era.”

Because It’s Different Today

Listening to this prologue, I had a whiff of Mom’s apple pie, and asked: Is professional development really different today? The Goodstone Managing Partner pushed back. “Yeah, it is. The best jobs are much more competitive—twenty top-qualified people are going for every good position. And candidates are already well-coached—it’s how they excelled in college admissions, sports, music lessons. The most successful are now constantly improving themselves in a fiercely intentional way.”

So how does the game change as you move through the three eras?

Kathy described the classic matrix pairing consciousness and competence. “The best competitors co-develop self-knowledge and capabilities. At each step they are working to understand more about themselves and their goals, and the skills and knowledge needed to get there.”

Your 20s: Building Baseline Awareness And Competence

“Imagine a child first learning to walk,” she continued. “Not only does she not know how to tie a shoe, she doesn’t understand that shoes need to be tied. In your early jobs, you’re both learning what success in a would-be career is going to take, and then assessing your assets and gaps against that. The average performer bumbles along, trial-and-error. The top professionals are much more intentional.”

Serbia’s Jelena Jankovic ties her shoe laces at the Brisbane International tennis tournament on January 4, 2016. (AFP PHOTO/Saeed KHAN/AFP/Getty Images)

Kathy elaborated. “The rising stars relentlessly clarify expectations for winning. They are metrics-oriented, and constantly seek feedback, from supervisors, other colleagues, even clients. They develop a picture of success, then go after it. They ask, ‘if I want to head a sales division, what do l I need to do?’”

Are You Ready To Hear The Feedback?

But it’s not as simple as it sounds, she added. “Most organizations are not very good at giving feedback— timely, critical, actionable—which is what you need to raise your personal performance. In most cultures you have to work hard to get that kind of feedback. Women and multicultural talent usually have to work even harder for it.”

She offered a further warning. “Younger professionals often don’t want to hear the answer if it’s negative. They aren’t emotionally ready to hear anything less than ‘awesome.’” So success in your early career depends on learning both to seek and take feedback. And then building the discipline to act and improve upon what you learn.”

Gallo then noted the importance of recruiting sponsors, informal or otherwise. “As you start to grow, you need someone with power and credibility in the organization who can advocate for you—to get you staffed on the right projects. As with getting feedback, this is particularly critical and often more difficult for young women and multicultural professionals.”

But even enlisting support has its pitfalls. “Millennials are so social-media-wired, they’re always reaching out for help and suggestions. But they can lack discrimination—they don’t realize that some sources aren’t as reliable as others. Or that friends may not be totally candid. It’s a big issue for young CEOs. They buttress their managerial inexperience with all sorts of advisers. But they aren’t critical enough in choosing or using them. Great professional development in your twenties depends on learning how to judge and leverage the right people.”

Your 30s: Rounding Out Your Skill Set

Kathy continued the metaphor of the newly walking child. “So in the next era you know how to put on your shoes, you can loop the laces and tie them on your own. Now you want to get good at it, so it becomes automatic.”

“In your middle career,” she went on to explain, “you’re now established in at least one of the three leadership competences; and you’re clearer about aspirations and what it will take to get there. You develop plans to better leverage your strengths, and also address your particular short-comings.”

I pressed this coach for the real headline.

“For most people,” Kathy continued, “this middle phase means strengthening EQ. Typically they’re getting their first 360 evaluations. And they’re shocked to learn that maybe they have a reputation for being difficult, uncaring, or communicating poorly. It can be a real wake-up call—but the winners hear it and work on the problems.”

It’s also in this middle era that the best professionals start to look beyond themselves. As Gallo explained, “Even if people work on their EQ, progress can be limited by the culture of the organization. Some companies don’t care if you run over people to get results.”

So what then?

Kathy continued: “Losers are complainers. Winners face reality. You don’t have to be a jerk to succeed, but you do need to understand the cultural context. Sometimes that means getting better at playing the game (authenticity can be over-rated!); or better yet, changing the culture by bringing in more like-minded people. If necessary, they’re willing to leave for another company more suited to their values.”

Your 40s (And Beyond): Impact And Still More Self-Knowledge

Great maturing professionals don’t sit back and smell the roses—they continue the self-improvement that’s by now second nature. They seek out new assignments, different experiences, and look for innovative ways to “sharpen their saws.”

But, Gallo cautioned, they now face a different set of challenges. “Accomplished leaders are under more pressure to create impact; they have to project a certain gravitas, inspire talent, excite and align stakeholders, as never before. It’s a world of maximum transparency and like it or not, leaders today must have some level of charisma. And not just CEOs—everyone on their way to the top too.”

I asked the enduring question—can charisma be learned?

(Photo by AP: Today in History series, Jan 18)

“Yes, up to a point,” she offered. “You can do a lot by working on public speaking, posture and style. But charisma can mean different things. The real strategy comes down to finding and developing the right version that suits who you are. If you’re more introverted or analytical, for example, you can get better in projecting confidence and impressing stakeholders with your expertise; or learning to speak more openly and firmly about yourself. If you’re an internal candidate for a top job, you can seek out a particularly difficult assignment, to show your courage and skill for tackling a big problem. That’s worth more to a board search committee than ‘flashy showmanship.’”

The Potentially Isolated Leader

Kathy continued with a final warning. “Another challenge for senior professionals is difficult and even dangerous. Successful leaders can become isolated without knowing it. People shy away from disagreeing with them, or won’t ‘speak truth to power.’  So suddenly these leaders are back to where they started twenty-five years before: they’re ‘unconsciously incompetent’, they no longer know what they don’t know—and nobody is going to tell them. If the world is changing around them, or they’re creating dysfunction in the organization they lead, they might be totally oblivious. They think everything is fine, when it might be catastrophe. Great leaders force themselves to keep learning, including the hardest of truths about themselves.”

Kathy finished by reflecting on one particularly effective CEO she knows. “He’s at the top of his game, but he won’t let up, even though he realizes more self-knowledge could be pretty painful. I’ll never forget what he confided to me: ‘If I want to be the best possible leader, I have to be willing to travel to the ‘Dark Side’—the part of who I am that I really don’t like. And then commit to improving that too.”

(Photo by Sean Gallup/Getty Images)

Originally published on Forbes.com

Categories
Leadership

More Creative Leadership Lessons From Director Ethan McSweeny

I recently profiled the talented theatrical director Ethan McSweeny, as a case example of Creative Economy leadership. Three insights from that post can apply to any leader pursuing innovation: design your product in a contemporary competitive context; construct it as an overall experience; and develop a distinctive “theory of value” that powerfully differentiates it.

A fourth insight from the previous post, equally applicable, focused on the “how” of  McSweeny’s leadership: fostering an emergent process of creation with others. I came to understand that his sparkling dramas result from messy but deliberate experimentation, and iterative collaboration among many people, both behind and on stage. Today’s post elaborates on his process approach.

McSweeny working with members of the company, A View from the Bridge, The Guthrie Theatre, (photo by Michael Daniel)

Probing The Emergent Creative Process

1. The Creative Leader sets up the opportunity for success. Ethan’s discussion about starting a project reflected a keen sense of strategy and self-knowledge.

Work begins when he pursues a directing opportunity. Beyond predictable questions about schedule, budget and prestige, he looks for at least two of three drivers of creative impact:  “Is it a play I want to do? Is it a theatre or producer I want to work with? Will there and can there be other talented people involved (actors, technical staff) whom I trust and am excited to collaborate with?”

2. The Creative Leader builds a team around a core operating philosophy. The engagement of actors and technical staff for live theatre is a complex, multi-layered process. McSweeny pursues arrangements that build a shared understanding about how he wants the team to work. People join the production clear about a particular (and proven) way of working.

His beliefs embody an operating philosophy, a set of under-the-surface behavioral assumptions to support high-performance collaboration.

Core Beliefs

First, that although financial constraints must be respected, good art is what drives commercial success, not vice versa. “Too many plays today are hollow, designed backwards from producers’ guesses about audience or critics’ desires,” he avers.

Second, that the creative process must foster experiment and discovery. “I build a team that together will create magic–but we won’t know all of it on day one. I’ll have a preliminary vision, but it will evolve. My mantra is ‘plan relentlessly and be totally open to accident.’ Accidents spawn breakthroughs.”

Third, that all team members are responsible for success as “full citizens.” Adam Green the actor recalled early meetings of cast and crew in McSweeny productions. “He communicates that everyone in the room is important to the show, and will be trusted to do their best. He delegates well, doesn’t micromanage, and will frequently step back for someone else to lead. His rehearsals are pretty damn swell.”

McSweeny later commented: “My main goal is simply to get everybody operating at peak creativity. I’m not the racehorse, I’m the jockey. I have to get the real athletes ready to run the race of their lives—all at the same time.”

Coaching Dave Quay, Clifton Duncan, Liam Craig, The Tempest, Shakespeare Theatre (photo: S. Christian Taylor-Low )

Project, Talent, Culture

3. The Creative Leader guides production as both project and process of talent and culture development. “Staging a play,” McSweeny noted, “is a left and right brain exercise.” For this director, left brain oversees a tight management schedule: recruiting, organizing, designing, and integrating the work of different sub-teams (acting and technical) into a final, polished production. Milestones and budgets must be met; the company tracks progress weekly, and together addresses problems if something is “still not working.”

But right brain is also always flashing—developing ideas, and nurturing creative impulses, both the director’s and his collaborators’. Concepts emerge through ongoing experimentation by different professionals, and the freedom—within a structure—that McSweeny encourages. Joe Smelser, his Shakespeare Theatre stage manager told me: “Ethan understands this is an art where ‘the paint talks back.’ He encourages people to speak up, try new things, and to keep developing their own craft.” Jenny Lord, Assistant Director for the Midsummer production agreed, observing that “theatre is an extremely collaborative art form–it’s very rare for anyone involved to be able to look at anything in a production and say, ‘That’s there because of me.'”

Adam Green explained that “much of what Ethan does is editing— ‘heightening and expanding’ what company members improvise during rehearsals.” McSweeny himself talks of “licensing actor’s experiments,” because “people own the idea better if it’s theirs. As the play moves from rehearsals to performances, you want the product to deepen and improve, while still maintaining structure and form.”

Right-Brain Messiness

Exploring accidental ideas is a messy, right-brain process. As the production marches forward, McSweeny also works with the company to circle back and retrofit creative concepts that have emerged. Ethan recalled that “In Midsummer Night’s Dream, we decided to portray the lover’s quarrel as a playful mud fight in the forest. It wasn’t working until the third week of rehearsals, when Adam suggested Puck  play a mischievous role in sparking the chaos. But then we had to redesign all the movements, and the prop and costume departments had to try different mud mixtures and washable clothes.”

A major right-brain imperative is dealing with fear. McSweeny was adamant: “What actors do is very, very hard; they know I know that. They’re constantly afraid of failing before an audience. When you invest the whole company with responsibility, they all have fear too. Fear is the ultimate killer of creativity. Removing fear is one of my biggest jobs.”

McSweeny further reflected:  “I signal that everyone will be respected. I learn each person’s concerns. I build confidence bottom up, starting with different sub-teams, so they find comfort in a smaller group before facing everyone in full rehearsal. We also do early rounds in deliberately informal settings—around a table, just reading; and then later in a dedicated rehearsal hall that’s not the main stage. It reinforces ‘it’s ok to try something that might not work out.’”

Storytelling Too

McSweeny also builds team culture with storytelling. “In table readings, I invite people to talk about personal experiences, perhaps with family or colleagues, or maybe a television program from the night before. It starts a safe discussion about ideas to try. I also share some of my own vulnerability. That also builds trust.”

Personal coaching is constant. In rehearsals, McSweeny will walk on stage, to help a particular actor or small group to improvise something not playing well.

“In The Tempest, we needed a flying Ariel. We had an actress perfect for the role—but it turned out she was deathly afraid of heights. We worked on that fear, at first privately, and then on stage with other actors. She went on to perform brilliantly— suspended from a cable 40 feet in the air.”

The Tempest Montage

Closing Open Doors, Slowly

4. The Creative Leader curates the final product by “opening and then closing doors” at the right time.

The step-by-step development of a play—recruiting and casting, rehearsing different designs, sounds, characters and action—follows a classic project management funnel. You start wide, and get more focused as ideas gel. Narrowing the funnel requires making decisions that stick. So when there’s an ethos of experimentation, and “the paint talks back”—how do you move the company towards final creative choices?

McSweeny’s answer is by “opening and then closing doors.” At first, he’s all about opening: inviting any actor or technician to propose different ideas, or a new take on a scene or character.

But as the schedule advances, he forces inflection points. “I remind people every week where we are, and what comes next—which they like. And timing is everything. You need to build a sense when exploration ends. But not all at once. You use intuition; and also the text of the play—a source of authority, beyond just ‘what the director wants.’” After a while I’ll start closing doors, and then converge the team around a final answer. Cutting actors off too soon kills their creativity. Let debate flourish too long, actors then lose their way. Structure is freedom.”

Stretch And Capacity

5. The Creative Leader stretches for higher collective performance, and building future capacity. McSweeny summarized a leadership approach simultaneously nurturing and challenging. “I’m open to ideas from anyone but also have the self-confidence to critique them, as long as the team understands it’s to make them and the show better. I respect people’s views, and admit my mistakes. But I also expect them to do the same for me. If an idea isn’t working—whether it’s mine or someone else’s—we have to be willing to discard it.”

This leader also challenges himself and his team by recruiting a mix of both known and unknown talent for every production. “I start with a core of people I know and trust. But I always add some new people I don’t know—a designer, certain actors, or other contributors whom I’ve never worked with. It keeps all of us from falling into familiar patterns. It adds risk, but we all benefit from more innovation. It also keeps expanding my networks for future productions.”

Banishing Ego

6. The Creative Leader builds self-awareness through practice. Ethan McSweeny closed by reflecting on his own professional growth. “When I was younger,” he smiled, “people would naturally challenge my authority. I was more dictatorial, out of insecurity. Now I lead by example. In a collaborative environment, it’s really the better way. I still have to work on managing my own fear-based reactions. Those come out as frustration, or even anger sometimes. I’m getting better at ‘counting to 10’—and recognizing the frustration when it’s coming.”

He finished with advice for any Creative Leader. “The key thing with creative people is to understand where they’re coming from, and simply focus on what will get the best result –regardless of what you think you want. To do that well, you have to manage your ego out of the equation. Ego is right next to fear in killing creativity.”

Rehearsing with Simon O’Gorman, A Month in the Country, The Gate Theatre (photo by Pat Redmond)

Originally published on Forbes.com

Categories
Leadership

Creating Creativity: Leadership Lessons From Theatrical Director Ethan McSweeny

As my colleague Steve Denning writes, we all now work in a Creative Economy. Creative is surpassing traditional business and financial economies, with its innovation-seeking “ethos of imagination, exploration, experiment, discovery, and collaboration.”

It’s not just media, advertising, and movie studios. Every enterprise is trying to make, sell and do things more creatively. Leaders are hustling to become more creative too. Gone are the Mad Men days when the high pay-graders in suits simply cracked the whip and pushed bearded artists and quirky writers to come up with the ideas the company would sell.  Now leaders have to develop their own creativity, and also cultivate the chemistry for innovation all around them.

So what does a Creative Economy leader do to create creativity?

To answer that, I got creative myself. Instead of benchmarking the usual corporate exemplars, I thought, why not learn from a leader of unambiguously creative experiences?

Ethan McSweeny directing actress Aislin McGuckin, in rehearsals for A Month in the Country (Gate Theatre, Dublin). Photo by Pat Redmond

Enter, Stage Right

I found a willing subject in a brilliant theatrical director, Ethan McSweeny. Today internationally acclaimed, McSweeny has been a rising star since American Theatre hailed him in 2006 as a “wunderkind with a Midas touch.”  Enjoying critical and commercial success on Broadway, regional and institutional theatres around the world, this 44 year-old- talent has directed some 75 plays (classics, musicals, new works), from Aeschylus, Shakespeare and Shaw to experimental off-Broadway productions. He’s now moving into film and opera too.

Last autumn I attended his production of Shakespeare’s The Tempest. With its lyrical acting, imaginative staging, and awe-inspiring dream sequences, this rendition of the romance was hands-down best I had ever seen. When I later heard McSweeny talk about staging the play, I realized his creation was not just his own clever ideas; it was also the collaborative harvest of many talented contributors he had nurtured as a “creative leader.” I wanted to know more.

The Tempest – Puppets

A Dialogue Begins

We began a dialogue about his craft and leadership. I saw a couple of his other productions and a rehearsal of his A Midsummer Night’s Dream. I interviewed members of that show about working with Ethan (Adam Green, who played Puck; Joe Smelser the Washington Shakespeare Theatre’s Resident Stage Manager; and Jenny Lord, McSweeny’s Assistant Director on the production).

Through it all, I was probing the mindset and practices McSweeny brings to “creative leadership”; and also gleaning more general lessons for leading talented people to develop innovative products or services.

The insights that emerged addressed two critical questions: First, “the what”: what makes for a great creative product or service? Second, “the how”: how should a leader work with different creative people to achieve that?

What follows summarizes my findings for question #1. Question #2 will be the subject of a future post.

Ethan McSweeny directing actors John Carrol Lynch and Bryce Pinkham, in rehearsals for A View from the Bridge (Guthrie Theatre, Minneapolis). Photo by Michael Daniel

What Makes For A Great Creative Product/Service?

Four principles emerged from our conversations. They’re applicable for any leader developing a creative product or service:

1. Creative Leaders situate their product in a broader and competitive context. In earlier times, live theatre was literally “the only show in town.” Today, multiple visual, auditory, and other entertainment experiences compete for attention of potential audiences—television, YouTube, video games, even texting with your friends: “No theatre director should ever forget,” Ethan noted, “that we now live in a multi-mediated age. You have to stage A Midsummer’s Night Dream as a worthy alternative to someone’s experience at home watching Downton Abbey or playing War of the Worlds with friends.”

McSweeny sees today’s richer (even intrusive) media environment as opportunity as much as challenge.  He strives to fuse live performance and digital, technically-delivered content and effects, as part of his signature style. As he reflected, “I have a reputation for ‘visual, large-scale stagecraft’—because I bring powerful images, across-the-stage-movement and high impact design to my work. As a child of the digital revolution, I‘m comfortable integrating video and specialized sound and music with visually-inspiring settings. But it has to be done in a way that honors the text and story.”

His comments did faint justice to the gripping sensations I had watching his productions: an Elizabethan romance reinterpreted as lovers’ folly in a noisy and louche Havana sugarcane plantation of the 1930s; a fantasy wedding of The Tempest symbolically represented by luminous 40 feet-high puppets; fairies and spirits of Midsummer Night’s Dream cavorting on chandeliers, dressed like 19th century French cabaret players, rhythmically swaying to music blended of romantic and surreal electronic sounds.

For McSweeny, visual stagecraft helps position live theatre against competitive offerings of cinema. “In a film, the director’s camera forces you to look at certain things moment by moment. In a theatre, the audience can—and does—look wherever it wants, seeing more than this or that actor talking.  The theatre director can provide dramatic and visual engagement more richly, high, low and sideways across the stage picture.”

Creating Experience

2. Creative Leaders configure their products as an overall experience. The shift of businesses towards experience-driven products and services has been underway for some time. But what in fact is “a creative experience”? And how does a creative leader construct it?

When Ethan McSweeny directs live theatre, he builds an experience holistically, in often surprising ways: “I put a lot of attention into the ‘entire package,’” he commented. In fact, the “package” goes well beyond visual and auditory stagecraft.  He pulls in multiple elements to support “the central premise of theatre: the actor speaking on the stage.” The play’s story, for McSweeny, is all important, and informs the auditory experience of live people speaking to one another.

But McSweeny mixes in still other ingredients, for example the contemporary conversations and narratives that people bring into the theatre with them. “They all are reading the same newspapers and watching the same events that I and the actors are. We look for opportunities to bring that wider world into each performance.”

And the timing of speech and action adds further to “the package.”  Live theatre exists in time with its audience, Ethan explained, but what spectators sense and feel from performance must also “lift them ‘out of time,’ to a heightened, and exceptional realm.” The pacing and rhythm of the production are tools to create an experience both of the moment and beyond it.

Even the physical space of the theatre plays an experiential role. “We look at the shape of the stage, arrangement of seats, acoustics, how close people are sitting next to each other. We consider them all to create an intimate, group experience.”

Director Ethan McSweeny’s Cuban “Much Ado”

A Central “Theory of Value”

3. Creative Leaders build the overall experience on a central “theory of value.” To deliver a distinctive and emotionally meaningful experience, the creative leader must offer a specific “theory of value” (my phrase). For McSweeny, the actual text of the play, and the way the actors project and bring its multiple stories to life must be the center of everything. The experience should radiate out from that core.

That is perhaps not surprising. What gives his “theory of value” a special edge is the unusual constellation of ideas be believes (and trades on) to make great drama compelling.  First, he explained, successful live drama must make vivid human behavior and emotions: “we attend a play to see a mirror held up to human nature itself.”

Second, what the mirror shows must be enhanced by story – but story that explores status-clarifying interactions among people. Ethan suggested that “great drama is not simply characters seeking wealth or power or similar. It’s a picture of human relationships in dynamic hierarchy, people struggling with each other to work out some pecking order, like the animal kingdom. It might be about wealth or power, but also about emotions, or romantic interest, or someone validating his intelligence relative to a foe or a friend. We’re fascinated to see that aspect of the human condition unfold in the language, gestures, and voices of actors.”

Bringing In The House

The theory of value extends beyond the edge of the stage. It rests also on portraying nature and status to touch the prejudices, anxieties and hopes of people watching. McSweeny directs his plays to enmesh both actors and spectators in the same moment of human emotion.  “The actors and I always look for ways to spark laughter or other feelings collectively among people sitting together. Their joy or sorrow has to play off each other’s, and also that of the actors. The best experience is shared together.”

“Yet at the same time,” Ethan elaborated, “great theatre must also make members of the audience each feel as though they are being spoken to individually. Universal emotional truths are understood by any audience person’s specific circumstances. They become real for different people in different ways.”

Building Culture and Process

4. The Creative Leader builds the experience as an emergent process. Though McSweeny described clearly his goals and beliefs about great theatre, he was also adamant that realizing those is a team sport. Actors, stagehands, prop people, costumers, technical directors and many more all play a role in what the director facilitates. It is an iterative and collective process that the creative leader must cultivate. Through his or her guidance, all together discover a collaboration, and find a shared rhythm of group creativity. All must believe and behave so that the talents of many people sum to more than individuals working alone.

*****

This final proposition looks ahead to my next essay: about the “how” of Ethan McSweeny’s creative leadership. Please watch for it in a future post.

Ethan McSweeny, during early rehearsals of The Tempest . Photo by Gregory Linington

Originally published on Forbes.com

Categories
Leadership

Should You Follow Your Passion? Or Your Boss?

In olden days, when you started a career, nobody told you to “follow your passion.” You joined the family business or found another job. If you liked it, you did what your boss asked, and maybe more, to earn a raise and get promoted. If you didn’t like it, you did the minimum the boss expected, so you could collect the wage, and look for ways to spend less time at the office. Passion wasn’t part of the story (except winking about someone’s romance off in the stockroom). Your job was following instructions of the person you reported to; the career advice was “just make your boss look good.”

Actress Jennifer Westfeldt with Don Draper’s wax figure at Madame Tussauds New York (Photo by Cindy Ord/Getty Images)

Causes That Make The Heart Grow Fonder

Today, the new career wisdom is finding work you love. Whatever you do, go after a job or organization that emotionally grips you, where you can “find personal meaning;” “join a cause you care about;” “make a difference.” Above all, when building your career, to thine own self be true.

There’s nothing wrong with crafting a career that engages you with all you like and believe. Plenty of research supports “employee passion and engagement” leads to higher morale and performance. If you’re lucky to be in a job that pays you fairly to work on something you absolutely love—well, step on the accelerator. Such gigs are rare, and don’t last forever.

They also have the added benefit of making bosses, supervisors, or “accountable team leaders” less important to your satisfaction. You can deal with annoying management if you’re over the moon with the work. If you’re really lucky, Mr. or Ms. Higher Paygrade actually helps you be more successful. Here, by all means, stay-and-play and count your blessings every day. You’re probably in the top 10% of working stiffs out there.

Quandary In The Middle

At the bottom of the distribution is perhaps another 20%–people who have just awful jobs, grinding, boring, poor pay, stupid co-workers, abusive bosses. If you’re one of these poor souls, you’re trying to find something better, every day. Godspeed.

Harder is when you’re in a job like 70% of the world actually has. The job is sort-of OK but the program is not something you really love. Or something changes to cool the passion you first had. Maybe you’ve discovered the dream project you were promised was just cleverly labelled drudgery. Maybe the company that so intrigued you when you applied takes a new direction, abandoning the mission once so engaging to you. Maybe the boss who was first cheering you is succeeded by a total jerk. Who wants to follow him or her? Or stay in a company when your passion goes cold?

(AP Photo/Jim Mone)

Here’s some grey-haired wisdom: don’t pull the rip-cord too fast. Bailing out prematurely might cost you career enhancing opportunities.

Put aside obvious considerations about risk, compensation, and “grass is always greener” mirages in today’s volatile economy. If you’re in search of more passion at work, sometimes staying put—and following the boss for a while longer—can be the wisest course.

The Bank Shot Strategy

Photo credit: AP Highlight in History.

Here’s why. Smart and ambitious people always do some job-hopping. It’s how you find what you like and what likes you; it’s how you raise your experience and salary. But the cleverest people play the game like billiards: they don’t always knock the ball in the pocket straight-on. They use a bank shot. Sometimes you have to zig before you zag to work that thrills you.

You might feel faint enthusiasm—or even hate—your job and your boss right now. But before you rush after some new opportunity, consider some critical assets you could be building by staying put, at least a little longer. Right there in River City there’s a potential platform of skills, knowledge, and networks that might accelerate your access to—and faster success in—a job you really want.

Before You Bail

Before you discard your current situation, take stock of three questions:

1. Does today’s boss/company/project build my skills for a future passion?

Enthusiasm and excitement will not be enough to succeed in your dream job. You’ll have to be good at lots of different things, many not part of your wheelhouse today.

A young professional I knew had a passion to work in a “food revolution start-up.” He had plenty of experience in biology and agriculture, but needed more operational chops. He took a job at an online retailer, and weathered through long and mind-numbing hours, and a decent enough if not necessarily inspiring boss, managing warehouse logistics. He left a year later for a bigger, better position, overseeing all operations for an urban farm start-up.

“No question, the former warehouse experience was major in landing the new position,” he reports.

2. Does today’s boss/company/project build knowledge for a future passion?

Excelling at a job—and landing one you dream about—requires not just skills but more general understanding too: of an industry, trends and changes affecting its businesses, and even the lingo of its practitioners. You can learn a lot of that just by coming into a sector that interests you, even in a lowly or boring job: get familiar with the problems leaders in that world wrestle with, how the winners within it talk and think, how its business models are changing.

If you open your eyes, and talk to your boss about those things, you can make yourself a much more strategic candidate for the dream job later. If you want to join an educational technology disrupter, work first in a public school, and absorb the dynamics of classroom teaching and administrative budgets; if you crave a cool job in publishing, benefit from peripheral lessons about customers and merchandising in your menial job at Barnes and Noble . Ralph Lauren began his journey as a global fashion magnate by first selling ties at Brooks Brothers.

3. Does today’s boss/company/project build networks and relationships for a future passion?

You’ll always need strong networks and connections to people who can supply money, knowledge, and innovation for the work that you love. How can you use today’s situation, including relationships offered by your boss, to extend your own networks?  You may be sitting on more golden people capital today than you realize.

Earlier in my own career, I ran an intern program at United Way Worldwide. The organization was, in the eyes of the young professionals we recruited, an old-fashioned, staid charity. But the ambitious interns figured (rightly) they could use their UWW experience not just to build meat-and-potatoes skills in fundraising and donor management, but also to cultivate relationships with other mission-driven organizations in the United Way ecosystem. The stars of the program tapped networks to land future positions in social innovation start-ups, urban community organizations, non-profit consultancies, and international development NGOs.

Timing the Leap

Stated simply, sometimes following a current boss, even if less than inspiring, can let you extract a lot of professional development value for a passion to come later. When you’re on your way up, and are eager to make a change, rethink the old saying. Don’t just look, but learn before you leap.

Originally published on Forbes.com

Categories
Featured Leadership

Is It OK For Leaders To Lie?

Former Secretary of State Hillary Clinton testifying before Congress about Benghazi (photo by AP)

The question might give you pause, but political pundits are confident and clear: “No, no, no!”

Our chattering class scolds the fibs of every Oval Office candidate, usually with ideological fervor. On the right: “Who can trust Hillary Clinton to be President if she deliberately misrepresented the attack on Benghazi?” On the left:” How can we take Ben Carson seriously when he lied about a West Point scholarship?” “Oh and Donald Trump? Don’t get us started…” How dare this or that leader mislead the American public!

2016 Presidential candidate, Dr. Ben Carson (photo:Andrew Harrer/Bloomberg )

The Cultural Assumption

Behind the complaints is a big assumption: to be a great leader you can’t lie—and if any would-be President plays Pinocchio, shame on them, but also shame on us:  “We shouldn’t vote for that one.” Our public rhetoric abhors executive fibbing. And yet history is full of noble but lying leaders. Offset the schoolhouse lessons of George Washington’s cherry tree with a few inconvenient examples among Presidents:  Abraham Lincoln dissimulated about his stance on slavery; Franklin Roosevelt promised the American people “your boys won’t be sent to foreign wars” while preparing to do just that; John F. Kennedy denied he would invade Cuba as he was blueprinting the Bay of Pigs. And the enduringly popular Bill Clinton brought prevarication about his personal life to new semantic heights.

The list of successful business leaders who have played loose with the truth is also long. Wall Street titans will lie about deals and inside information; Silicon Valley icons like Larry Ellison and Steve Jobs are known for misleading customers about new product availability; Elon Musk, revered innovator of the Tesla, has been challenged about his car company’s financial reporting. “Degree of misrepresentation” is always debated—but in the court of high ethics no great leader escapes as “24/7 truthful.” Still, leadership lying often doesn’t seem to matter. Even when they “mis-remember”, strong leaders successfully rally supporters. FDR is still lovingly emblazoned on our coinage. Whatever Mr. Musk’s truth transgressions, Tesla continues to ride high; and how many people turned in their iPhones when Steve Jobs fudged a release date?  Why do we publically excoriate lying and then accept it for so many leaders?

Right-Sizing Truthfulness

Because we rationalize or blame it away. Sometimes it’s about the human imperfection of followers. We like to believe in the truth–but, sometimes too timid, sometimes too idealistic, we won’t call out a favored leader’s abuse of it. Then the Darwinian explanation. People like winning, “Alpha Leaders;” their champion performance trumps the occasional lie. “Who cares if Pete Rose denied his gambling? He was an all-time baseball great, deserves the Hall of Fame.”

Former baseballer Pete Rose at the 86th MLB All-Star Game (Photo by Elsa/Getty Images)

Or we focus on the human imperfections of leaders, prioritizing relative sins. Great leaders shouldn’t be held to a standard of moral perfection, because like all people, they sometimes tell lies too. “Look, everyone does it; and, hey, different situations call for different ‘degrees of truth;’ and, you know, ends justify means.” You’ve heard the narratives: “Hillary’s half-truths will never undermine that she’s the most qualified candidate to break the Presidential gender barrier.’”  Or, “As long as Ben Carson cuts Federal spending, I’ll overlook embellished stories of his youth.”

Managing Reward And Risk?

So if we often justify leaders who sometimes bypass the truth, is there a limit? After all, serial liars lose credibility (as the son of a used car dealer once told me: “the best liars always tell the truth sometimes.”). So perhaps we should characterize the great leader as not someone who always tells the truth, but one who carefully manages how much to vary from it. Consider how savvy investors construct portfolios to maximize returns in capital markets—they negotiate carefully the frontier between reward and risk, looking for sweet spots to optimize gains while still exposing themselves to manageable loss.

Do the savvy leaders manage a similar “truth frontier”—creating a portfolio of credibility, finding the right level of ambition, hedged with regular investment in honesty–but slipping in occasional well-placed lies when needed?  “With the Affordable Care Act, if you like your healthcare plan, you can keep it.”

Does Morality Matter?

But wait. Even if some leaders succeed by “managing carefully the truth frontier,” is that ethical?  And is that the right course for leaders in the future? The first question is ultimately personal, and requires exploring your own moral philosophy. For now, nolo contendere.

The second question is general, and potentially more helpful—because it offers an opportunity to reflect on how any leader should be thinking and acting in coming years. In fact, changes in politics, markets and organizations all signal that leaders should more than ever commit themselves to greater transparency and truthfulness. Power and morality are converging anew.

Last spring New York Times columnist David Brooks argued for a changing political realm. Commenting on Hillary Clinton’s scandals, Brooks asked whether in today’s politics “you can be a bad person but a strong leader?”  He argued that  the political game is now different:

…power is [now] dispersed… Even the presidency isn’t powerful enough to allow a leader to rule by fear. You have to build coalitions by appealing to people’s self-interest and by luring them voluntarily to your side….Modern politics, like private morality, is about building trust and enduring relationships. That means being fair, empathetic, honest, and trustworthy.

A Changing Game In All Sectors

But politics is not unique. Everywhere power is fragmenting, as traditional hierarchical organizations (and the authority leaders wield because of them) give way to networks and technology-enabled movements. Just as Congressional authority is yielding to super-PACs that mobilize advocates, traditional commercial and non-profit organizations are being undermined by platform-organized networks of independent entrepreneurs and volunteers. Taxi businesses are losing out to Uber, retail businesses to networks of boutique sellers,  software companies are being replaced by—or finding new ways to work with—movements of open source hackers. Value is increasingly created by cross-boundary, open collaborations and more agile, distributed, contingent assemblies of people who operate more autonomously, and dynamically than ever before.

The new networked operating environment  is less “the company” and more “a community”—with leaders creating collective action not by command and control but by mobilizing talent anywhere, any time. They wield power differently, creating a shared sense of purpose—so members will join and contribute; and trust—so members will work with others without fear, and sustain their contributions over time. Purpose and trust begin and end by leaders telling the truth, and demanding the same from the community.

Scouts, Networks, Communities

Consider the recently reported “scout program” of venture capital giant Sequoia. Sequioa has created a networked community of entrepreneurs (founders of companies they have funded) to help identify emerging early-stage start-ups. Informally structured, the scout entrepreneurs with their own networks extend the knowledge and relationships of the VC beyond its formal boundaries. It’s a win-win community for all.

Entrepreneurs gain access and potential upside from companies they help fund; and they also learn from each other about new market and technology trends. Sequoia partners gain early access to opportunities they might not discover on their own, and  tap deeper networks than they can manage themselves. In this networked ecosystem, honesty and transparency are all important. Scouts must truthfully report what they learn, to frame and pursue the new opportunities; partners must truthfully explain their funding judgments so scouts continue to learn from –and for–the VC. Lying to one another, about what’s being investigated or pursued across the community, would bring the whole system down.

Higher Standards

Operating in this kind of world calls for a higher standard of transparency, and greater comfort with openness than earlier generations of leaders have known. In the new community context of networks, movements, and ecosystems, the ethical question now becomes a strategic competency of leaders: how can I tell the truth as often as humanly possible? But make no mistake. Most leaders will have to break new ground to find the more  moral way. As Mark Twain dryly noted, “Always do right. Some people will like it. The rest will be astonished.”

Originally published on Forbes.com

Categories
Democracy

Thinking Differently About Inclusiveness

(Chris Ratcliffe, Bloomberg)

Are you an “inclusive leader?”

Reading the question, you’re likely thinking about ethnic diversity and gender equality. “How many senior ‘people of color’ in your company? How many women  VPs?”

Or perhaps you’re thinking about “open organization”-style participation. “Do you make all the decisions? Do people who do the work have a real say too?”

Peter Wuffli, former CEO of Zurich-based UBS, and now a leader of several for-profit and civic institutions, thinks inclusiveness is something bigger.

Beyond Checklists And Processes

Wuffli’s new book (Inclusive Leadership: A Framework for the Global Era), thinks differently about diversity and inclusiveness. Of course organizations should not be just “male and pale;” yes, shared decision-making is better. But for Wuffli these are just tactics within a larger mosaic. The real diversity the world must tackle is the fragmentation of knowledge to solve our growing problems; and the fragmentation of ethical belief systems to guide our moral choices.

Wuffli argues that greater inclusiveness is what’s now needed to bring together the experience and understanding of all sectors — business, government, civic– to address the challenges before us that are increasingly interdependent. As our work and lives become more interconnected, and the outcomes of everyone’s actions are more unpredictable, our abilities to think and act upon what we know are not keeping up. And we’ve lost the ability to be both effective and ethical at the same time. More inclusive leadership is a vision for how humanity can take charge of this new future.

Past As Prologue

Inclusive Leadership grew out of Wuffli’s own leadership journey—“the successes, failures, and process of maturing.”  His conceptual travels began when he was a university student of poverty economics, and a journalist for the Neue Zurcher Zeitung. In the 1990s, after a stint consulting in different sectors at McKinsey, Wuffli jumped with both feet into financial services. He rode the wave of the fast growing, globalizing industry, becoming President of UBS (2001) and then its Group CEO (2003). Suddenly Peter Wuffli was leading one of the biggest banks in the world. The new job became a major platform for the next phase of his leadership thinking.

And there was plenty to think about. Wuffli’s UBS years were a thrilling and stomach-churning ride, rich with unprecedented opportunities and looming risks. He characterized his job as a bullfight where “within minutes a winning streak can turn into a trip to the hospital, or even death.”

Peter Wuffli in 2006 was UBS Chief Executive Officer (Photo: PETER KLAUNZER/AFP/Getty Images)

The financial matador’s cape was soon bloodied and torn. In June 2007, after achieving record profits and several executive awards, Wuffli was forced out of UBS, victim of a still opaque “change of direction” in the corporate boardroom.

After the shock wore off, Wuffli reasoned that his misfortune was a small piece of a bigger world problem, a broad-based  “failure of imagination”—leaders everywhere not understanding the complexity of the global financial ecosystems, and the unintended consequences of so many fragmented actors making millions of decisions in conceptual isolation. He also felt that finance and capitalism more generally had become decoupled from economic value and the values of civilization itself: “The pace and complexity of change outstripped the trust of human institutions.”

New Leadership As The Best Lever

As markets swooned and governments struggled against collapsing systems after the crisis, the ex-CEO saw that better leadership in all institutions was the right lever for a better future. New financial regulation or witch-hunts of guilty executives would not guarantee long term sustainability. What was needed instead was development of “partner-like” leaders who thought more inclusively about their work, social roles, and connections to people and knowledge outside their jobs. “Leaving UBS opened my eyes to a new way of living and thinking. I wanted to share that with younger leaders coming up in the world.”

Wuffli wrote the book while trying to live its multi-domain ethos. After UBS, he returned to financial services, becoming Chairman of the private markets investment management firm Partners Group. He also threw himself into other kinds of work, to see the world through different eyes, and make his own contributions to “New Capitalism.” Today he leads the elea Foundation for Ethics in Globalization (which fights poverty in  developing countries), and is Chairman of the Foundation for IMD, the Swiss-based global business school. He also serves as Vice Chairman of the Zurich Opera House.

Moral Questions And A New Framework

Inclusive Leadership  incorporates Wuffli’s continued study of moral philosophy. The book is guided by the three classical questions: What is the good life? What is responsible behavior? What makes for a just society? The narrative reflects the former CEO’s own inclusive fusion of career action and reflection: “combining theory and practice, knowledge of different sectors, different belief systems and values, to reach a more common ethical perspective.”

That kind of inclusiveness informs the core framework of the book. Wuffli argues that the leaders of tomorrow, who will help renew our world, will combine three dimensions of thinking and acting (so rarely found together in today’s leaders): a “One World Perspective” (understanding and integrating across boundaries, organizationally and globally); commitment to “New Capitalism” (meeting society’s demands for more ethically responsive markets); and “Liberty-centric Ethics (pursuing the “good life” that balances freedom of choice and personal responsibility).

Beginning A New Conversation

Inclusive Leadership has its share of complexity—each conceptual Russian doll presented soon opens into another doll; the 250 page discussion becomes a series of increasingly, well, inclusive concepts. This is not afternoon beach reading.

But addressing complex challenges—like trying to fix the world’s fragmented economic and moral ecosystem—begins with complex hypotheses. Greater simplicity comes with the wisdom of time, and the give and take of different approaches in search of the next better paradigm. Mr. Wuffli’s book is not the only leadership prescription that argues for combining diverse knowledge, organizational connectedness, and ethical decision-making. But in its richness and honest personal story-telling, it’s a great read to launch some of your own future planning.

So what’s a good way to start becoming a Wuffli-style “inclusive leader?” He offers four “no regrets” suggestions:

  1. Get to Know the World Better: Don’t just visit airports or hotels. Broaden your horizons by working and living in other countries. Seek developing world postings if you’ve never lived outside of Western economies.
  2. Get To Know Other Sectors: Move across industries in your career. Seek jobs and projects not just into other business sectors, but also in non-profit and civic organizations.
  3. Get Engaged Politically:  If you have the privilege of living in a democratic society, join the fray and learn. The political process will become steadily more important in the global economy.
  4. Maintain Family And Friends. Economic and political turbulence will continue to rise in the interconnected world. Hold dear your social anchors.
Peter Wuffli, 2015 (photo by Myrtha Bohni)

Originally published on Forbes.com

Categories
Leadership

‘Steve Jobs’: See The Movie, Then Search Your Soul

Steve Jobs is a flawed movie about a flawed leader. But go see it. The price of admission is well worth the two hour exploration of the moral ambiguity of leadership.

Steve Jobs (L) and actor Michael Fassbender (R) who plays Jobs in the biopic directed by Danny Boyle. (Left photo by David Paul Morris/Getty Images; right photo by Dimitrios Kambouris/Getty Images)

Director Danny Boyle and screenwriter Aaron Sorkin have created an engaging but uneven production. Visually vivid and fast-paced, Steve Jobs lacks the storytelling brilliance of The Social Network: interwoven tales of Mark Zuckerberg’s ambitions, insights, relationships and blessed luck that alchemically launched the multi-billion dollar Facebook. In this film, Sorkin expects us to take Jobs’ vision and abilities for granted, relegated as footnotes to the melodrama of parent-child abandonment, and redemption. OK, Jobs’ lost father and denial about daughter Lisa are part of the great Apple mythology. But the story of this guy’s leadership is so much richer.

Questions Unexplored

Throughout the film, I was longing for deeper understanding: how did Steve Jobs’ market-moving insights about the new digital future arise? What allowed him to attract brilliant acolytes and then extract every drop of their creative blood? How did he learn from failures at NEXT and Apple? Isaacson’s biography fills in some of those gaps—but the film was never intended as just the TED talk for the book. Missed opportunity.

But the film does excel in one important way: its heart-wrenching dramatizations of Jobs (played with cruel insouciance by Michael Fassbender) coolly manipulating those who served him so well. This biopic tells us too little about why Apple soldiers like Andy Hertzfeld, Steve Wozniak, and Joanna Hoffman were willing to go so deep into their personal wells for the boss. But the slavish experience of it all does shine brightly through. It reminds you why Jobs is a leader you hate to love and love to hate.

Steve Wozniak, co-founder of Apple Inc. in 2013. Photographer: David Paul Morris/Bloomberg

Performances of supporting actors (Michael Stuhlbarg, Seth Rogen, Kate Winslet) grab your gut: the pain of unrequited sacrifices; pleadings for even a small gesture from Jobs to ennoble one’s humanity; in-your-face emotions of well-intentioned people struggling for dignity when abused and challenged so unreasonably. You’ll wince knowingly watching the personal wreckage forced by “Steve’s reality distortion field.”

Seth Rogen plays Steve Wozniak in ‘Steve Jobs’. (Photo by Nicholas Hunt/Getty Images)

The clash of emotions pulls you in. You keep asking yourself, why has this guy risen to the status of secular god when he seems like about the worst boss anyone could ever have?

But You Know The Answer

Because people everywhere overlook bad behavior and HR prescriptions when a leader-perpetrator creates products and financial success that “dent the universe.” And despite objections to the film by Tim Cook and widow Lauren Powell, Jobs’ demeaning (if also messianic) leadership style is well established.

So should we be proud, embarrassed, or simply resigned to the lionization of leaders like Steve Jobs? Is he a “model leader” or just an exception to what the model is? Or should be?

Ambivalence About Heroic Leaders

Hard to say, given the cognitive dissonance lurking in the questions. Try this experiment at home: when you get back from the movie, pick up any recent leadership book—and compare its advice to what you just took in with Steve Jobs.

Chances are you’ll see major disconnect between the film and the book in your hand. Most leadership lore today (including some of my own)—advocates behaviors we would admire in a personal relationship. The great leaders, you read, are trusting and authentic. They’re fundamentally honest. They’re good at listening. They care about you and not just themselves.

Now Steve Jobs, in the film and beyond: a visionary and genius but also an anti-Christ of today’s best practice canons for leadership development. The guru of Apple could be deceitful, secretive, and dismissive of employee concerns. Narcissistic on and off stage, and self-absorbed with strange personal habits that he forced others to cater to. He rode his people hard, often refusing to even acknowledge their contributions. He knew the value of a talented team, but only rarely let subordinates change his mind. Jobs scorned corporate philanthropy and social responsibility.

He was tolerated for all this because he created dazzling products and a sense of elite and “techno-change-the-world-cool” around him. Chosen followers were granted membership in a special club. Part of what made the club so valuable was that anyone could be thrown out without warning.

In Praise Of Bruising Self-Interest

Of course leadership founded simply on taking advantage of others does not automatically result in “denting the universe.”  But looking out for yourself, sometimes manipulating the truth or other people’s trust, and playing inauthentic roles to achieve a goal can all be helpful to your success—because that’s the real world of power and leadership.

Such in any case is the challenge of  a new book by Stanford’s Jeffrey Pfeffer, who  argues vigorously, almost defiantly, for this world view. In Leadership BS, as the title suggests, Pfeffer dismisses the ideology of the current “leadership industry” and its “romantic and lay preaching” of feel-good, authentic behaviors for would-be leaders. Pfeffer remind us that so many otherwise esteemed leaders—Abraham Lincoln, Henry Kissinger, Jack Welch, Bill Gates—can all be cited in their careers for manipulative behavior, trust-destroying lies, and look-out-for-me moments. Steve Jobs is a frequent case example in the book.

Jeffrey Pfeffer, at the Graduate School of Business at Stanford University (AP Photo/Eric Risberg)

Leadership BS makes a detailed, compelling argument for why modesty, authenticity, truthfulness, and caring for subordinates can actually undermine leader success. And therefore that such behaviors shouldn’t always be put on a pedestal. For Pfeffer, the  most certain shrine belongs to the real and big leaders whom we  admire for accomplishment and power, with all their warts, quirks, and HR-incorrect behavior.

Yes But…

Pfeffer’s perspective is a valuable antidote to the wishful thinking in many leadership narratives today. But let’s not push our moral pendulums all the way back to Hobbes and Machiavelli. Brutish and manipulative leadership will always have its place. But there’s plenty of evidence that helping others and building trust across an organization also drives individual success. Should we really dismiss the many leadership memoirs that avow trading early career cunning for the wisdom of reciprocity and people development later in life? Great leaders do grow and change along the way. Even Steve Jobs, as his cancer closed in, conceded how much he had learned from others in his earlier life.

Apple Computer Inc. CEO Steve Jobs in 2005 ( Kimberly White/Bloomberg News)

But Are The Times A-Changing?

Finally, acknowledging the value of a more selfish, power-centric leadership model may simply reflect the high water mark of a paradigm superbly adapted to the still  current world of hierarchical organizations. What about future organizational models for future kinds of work? When the creation of value depends more and more on cross-boundary networks and problem-solving, trust-building and collaborative governance will become more imperative. Forward thinking, many successful leaders are already embracing open-style, democratic and people-honoring principles—and behaviors to nurture performance communities among people who in no way “report up” to an ego-serving, high-handed master. Today’s emphasis on leaders who emphasize higher purpose and authenticity may be less wishful thinking than next-horizon adaptation.If so, consider how another film might portray Steve Jobs in some imaginary, future reincarnation, say  in the year 2025—what leadership values and approach would be needed to reinvent Apple then?

Originally published on Forbes.com