Reinvention

Future’s Ramblings – Issue 13 – September 5, 2005

Have you ever wondered what makes some things run their course, hit a peak and be done with never to be seen again; and others to do the same, but then years later emerge like a phoenix out of the flames? I am talking about things like flared pants, ponchos and pheasant tops or ‘The Fonz’ returning from a relatively dead acting career to star in Pulp Fiction. Consider Apple computer who is ‘thinking differently’ all the way to the bank with the popularity of the IPod.

Thinking differently is quite challenging for most of us, particularly if we have personally advanced to a position of authority at work or home where we may have the expectation of resting on our laurels. To continue to push yourself and remain open minded and nimble to new ideas and the changes that are taking place in the world is not something that happens naturally. The Aznavoorian children remind me of this daily. I’ll admit I’m fascinated with people and companies who are able to rise to the challenges that a new world presents and do so successfully.

It takes training to remain open minded, and having the ability to identify and capitalize on opportunities as they present themselves, is something that Fred Kofman, a US business consultant speaking in Sydney a few weeks ago, encouraged business leaders to consider. He believes leaders that wish to improve the way they do business must concentrate on three things: 1. Accept responsibility and accountability for all of your decisions. 2. Find a purpose – beyond the next big deal 3. Learn how to have difficult conversations in the spirit of truth. Achieving any kind of success with this is about training, not about an idea. “It’s like golf. If you don’t go out to play, and have some supervision, and a coach, and someone to give you feed back when it didn’t’ work, you are not really serious”.

Recently I attended the 7th annual conference on culture and leadership put on by Human Synergistics. If any of you know anything about this group you will understand what I mean when I say that it was bordering on feeling like a religious convention. Not that I attend many  religious gatherings; however, I do read and admit I’m fascinated every time I hear of groups that  decide to drink Cool Aid or don purple T shirts and Addias runners and snuff themselves. You have to wonder how some individuals can have so much influence on others, is it the sign of the leader’s strength and charisma or the weakness of the masses?

Human Synergistics believes that to understand and focus on improving culture in an organisation, you must understand the personal style of its leader. If you have the wrong leadership style they will train you to gravitate towards more constructive styles of leading. They do this by performing two ‘lifestyles inventories’ which measure styles and behaviours, one inventory is done with the leader and the second with their co workers. You would be shocked to know that there is often a disconnect between what the leader thinks his personal style is, and what his co workers think it is! From these inventories a leaders behaviour is identified into the three categories which I have listed below, with a few of the associated behaviours attached:

>        Passive – Looking to please others, non committal, process driven, avoidance

>        Aggressive – Oppositional, critical, competitive, perfectionist

>        Constructive – Achievement and goals oriented, personal integrity, self actualizing, tries new things

It is no big surprise that leaders who are constructive fair better. Leadership and organisational effectiveness are connected; personal styles can be shaped by organisational factors or culture, unfortunately organisational factors often reinforce the wrong styles of leadership. Therefore individual change depends on organisational change and vice versa, and both impact company effectiveness.

Human Synergistics is not alone in believing that we must understand the link between leadership and culture when it comes to changing or reinventing a business. They maintain that to really understand how to change, we need to question the assumptions we hold and not just tap around the edges. Like Fred Kofman, Human Synergistics believes we must practice or train to become more aware of the impact our actions have on our co workers. The sad thing is that most leaders know this; they just don’t do it because they don’t think it is that big of a deal.

As identified above driving cultural transformation takes training, it also takes courage which involves taking risks and encouraging people to do things differently. I have heard two CEOs speak in the past few weeks on the topic of company transformation. Mitsubishi Australia’s CEO Tom Phillips did not just lift sales; he pulled Mitsubishi up from near disaster after the closing of the Lonsdale plant and the aftermath of several of the company’s Japanese executives going to prison for hiding dangerous flaws in their vehicles. Ron Walker the CEO of Freedom Furniture spoke of the transformation of his business, how he created a company culture in remote locations where turnover was high. Their tips for constructive reinvention:

>        Surround yourself with great people and allow them to make mistakes

>        Life is short – Just do it

>        Seek out and learn from others and their mistakes

>        Start over – Tom Phillips fired Y&R and launched a new ad campaign with CHE featuring Tom (who is no movie star)

>        Hold your people accountable – leadership without accountability is management.

>        Lead by example –show leadership humility

>        Hire and develop the right people – be willing to get rid of others

>        Focus – over communicate and stick to it.

Sometimes reinvention of a business requires a more radical approach. In the book Blue Ocean Strategy the authors describe how Cirque de Soleil achieved rapid growth in an industry that had limited potential for growth. Cirque du Soleil did this not by taking customers from other circuses but instead created a new market that rendered the competition irrelevant. To understand this the book asks that you imagine a market universe composed of two sorts of oceans – red and blue. Red oceans represent all industries in existence today, blue oceans denote those not in existence. In blue oceans demand is created, often by expanding existing boundaries.

According to Fast Company you don’t need to compete in a red ocean of bloody competition. Because even exhausted industries like the circus can be reinvented. Here are their tips

Don’t swim with the school

Quit benchmarking the competition or setting your strategic agenda in the context of theirs.

Find new ponds to fish

Don’t assume your current customers have the insights you need to rethink your strategy. Look to noncustomers instead.

Cut bait on costs

Put as much emphasis on what you can eliminate as on what you can create.

I will leave you with one last story that I heard on the radio. Madonna, who has sold millions of CD’s, has engaged in market research to determine which songs to put on her new album. I believe this is along the lines of DJ’s noting when clubbers stay on the floor and dance as opposed to going to get a beer. Not being a big fan of Madonna, it is hard for me to say anything about relying on past talents, because as far as singing goes I never thought she had any. As far as reinvention goes, she is a master and I just bet her next album sells just as much as any performer half her age.

Sources:

Human Synergistics – 7th annual conference on culture and leadership, Sydney

AFR Boss club – Tom Phillips The man from Mitsubishi

BlueOcean Strategy  Renee Mauborgne

Fast Company

No Risk, No Reward by Keith H. Hammonds

Issue 57 April 2002

The Australian Financial Review Tuesday 9 August 2005

Seeing into the heart of the matter  by Bill Pheasant

Fast Company

Creating a blue Ocean of Innovation  by Renee Mauborgne

Issue 96 July 2005

 

 

 

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