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Dealing with critics

A Jr. Executive I mentor called me a couple of weeks ago devastated because a senior executive in her company had criticized the way she managed her team, and she wanted to know what to do about it.  That discussion prompted this blog.  As usual, comments and thoughts are always welcomed at c.papageorgiou@ideasphere.com.

I believe criticism and feedback are the twin key ingredients for a “breakfast of champions.”  Without these two elements we can’t grow, mature, or realize our limitations and blind spots. I believe that to be true in business, and, even on a personal level, I actively pursue critics and value people who give me their unbiased and direct feedback.

But is every critic legitimate, and is all feedback something to react to? Well, my answer, after many years of experience, is most definitely not!

I used to wrongly believe that every critic who had a higher position of authority, or was older and with more years in an industry, or had more money, had to be listened to.  That turned out to be one of the mistaken beliefs I eventually corrected.  Over the years, because of my work at Ideasphere Partners I spent plenty of my time as a change agent or in turn-around situations.  Doing that, I have been criticized, but thankfully not as much as I have been praised, by company founders, board members, investors, union representatives, front line workers, other executives, etc.  Even though praise is good for the ego now, criticism is good for personal growth tomorrow, so I developed a good nose for critics, their legitimacy, and the need to actually do anything about their criticism and learned to separate legitimate critics and valuable feedback from the “blowhards with an opinion.”

So here is my approach for qualifying critics and determining what to do, if anything, about their feedback.

First, I believe ignorance is not a legitimate point of view, so I try to assess whether the critic is a “critical expert”, or simply an “expert at criticism.”  It’s easy to confuse the two, especially since sometimes they go together, but a critical expert is someone who has a legitimate point of view from where they provide criticism, where an expert at criticism is one who provides criticism, even when they are totally ignorant about the subject.

The first step is to always listen with an open mind.  As my favored poem, The Desiderata, says “listen to others; even the dull and ignorant; they too have their story.” Then determine what kind of critic you are dealing with and if it’s worth doing something about it.

First look for evidence, independent of the critic, that he or she is, indeed, a critical expert.  Some evidence is easy to find.  For example, consider the track record of the critic. What does that record tell you?  One time I had an executive, let’s call him Joe, criticize my management practices as being too “results oriented” who suggested I needed to be less specific and demanding with my expectations of the management team reporting to me.  I was concerned that maybe I was too hard on the team, and while I accepted his feedback as a true statement, I had to consider if I wanted to adapt my style to be closer to his.  But here is the catch; this particular executive had a 90% turnover in his direct reports over the course of five years.  Of the half dozen department heads who reported to him only one had been in the job for more than three years and each of the other positions had at least two, and some of them three managers rotate through it.  This executive was fun to hung out with and was a likeable guy, but did not set clear expectations for his managers who eventually failed, or got frustrated of not getting clear directions and left.  Clearly the track record indicated I should discount the criticism significantly.  On the other hand, every time Paul provided criticism – a mid-level manager who was considered the toughest boss to work for, but a builder of talent who had trained many managers who went on to become executives of the company, and was widely respected, I not only listened, I took notes and found ways to adopt based on his feedback.

But maybe the track record is not available, or not clear! Then, perhaps, check the critic’s beliefs?  Does he hold more true, and fewer false, beliefs?  One critic I dealt with at some point during a turn-around project was absolutely convinced that money was the only motivator for people, men made better factory managers than women, and that Six Sigma and Lean manufacturing were fads that would never work in his factory.  Needless to say, when it came to his criticism of my plans to improve the factory, I took all his feedback with a very large grain of salt.

Some people are good at hiding their beliefs behind seemingly logical arguments.  So it’s also important to know if the critic has enough domain knowledge that is demonstrable better than the average.  I remember one time I worked with a team to build a financial model to predict the impact of currency fluctuation on their business.  I have an average understanding of currency and so did the CPA who worked on the project with me, and we thought we had put together something really good.  Then I run it by a partner of mine who has advanced degrees in finance.  He proceeded to show us how nuances we had not even considered, let alone model, could impact our results significantly.  His criticism was spot on, so we started making changes based on his feedback.  I should note, however, that we need to be careful of the “advanced degree” trap.  It’s not enough that someone has a degree.  After all, some people have to, by default, graduate at the bottom of the class, so look for evidence of agreement by other experts in the field before accepting the feedback as legitimate.

And finally it may be a good idea to investigate what biases the critic has which may have an impact on their view. All of us, humans that is, are susceptible to biases, conscious or unconscious.  Even critical experts are not immune to that.  I remember working on a project I thought was very clear cut and I was delivering even better than promised.  But there was this one member of the board who kept criticizing what I was doing.  For the life of me I could not figure out why.  This was a director who had a track record of success, knew the right things to do, was considered an excellent director, and had significant knowledge of the subject.  His feedback and criticism was starting to get to me, and I was beginning to doubt my approach to the project, despite the results it was producing.  And then, another board member pulled me aside and delivered this insight!  I was using an approach the other director had tried at a previous company, and failed with – one of the very few times he failed at anything – so he believed that approach would never work, contrary to any evidence.  From that moment on I paid attention to specific criticism about specific points on the project, and ignored the general criticism about the approach.

So back to the call from my young friend; after we went through my checklist we determined her critic was an expert at criticism rather than a critical expert.  He was criticizing everything and nothing.  No specific expert opinion was provided, nor did this critic have any demonstrable knowledge of the area he was criticizing.  Based on his track record he had a bias against younger; especially female, managers, and her educational credentials and experience far outweighed his.  So my advice was to just listen politely, look for any kernels of wisdom, but generally ignore him; Until he provided technical feedback on specific technical items.  Then, because he was a great engineer, with a solid track record of design, well respected in the industry, and a bias for creative solutions, listen carefully and do something about it.

 

Please help me make my tenth year at Camp Sunshine a record!

Dear Friends,

The work Camp Sunshine (www.mycampsunshine.com) does for children with cancer and their families is simply the stuff miracles are made from. It’s not often we can contribute to a miracle, and as many of you know, for the last nine years, my good friend Steve Brown, who has volunteered for over 20 years, and I, give a week of our time to be camp activity counselors teaching Karate to the 7-12 year old campers. For the last few years we expanded the program and enlisted another cool instructor with a black belt in Karate and a Purple Belt in Brazilian Jiu Jitsu, Tara Freidman, and the kids just love it.
It is one of the most treasured and important things I personally do each year, and the motivation behind this (now annual) e-mail. Those of you who know me well can attest I am generally not prone to bouts of sentimentality for anything other than my own kids, except when it comes to our campers; Camp Sunshine deserves that for many reasons. Not only is it an organization run by some of the best and most caring people I know, and it is a charity worthy of a special place in our hearts; it also has a special meaning for me because of the relationships I have built with the kids, even some who are no longer with us, and our fellow camp counsellors over the years. Being part of the “Karate Crew” and spending a week at Camp with children that are undergoing treatment, or have survived cancer, and still come to Karate practice and give it their best is a very humbling experience that places the importance of many things I deal with on a daily basis in the right perspective.
Unfortunately, volunteering time – emotionally rewarding and contributory as it might be – is only half the job of those who support Camp Sunshine. As with every operation, until there is a cure, Camp Sunshine must raise money every year to support activities for the children and their families. Tugging at your heart strings to help us raise money is the real purpose for this e-mail. And this year, being my tenth year as a volunteer adds another dimension to my determination to raise as much money as possible.
Raising money, pays for children to go to summer camp and spend a week in an environment where living with cancer is not the exception, but rather the shared experience. This is an environment where children with cancer can be just kids, amongst other kids like them, enjoying their summer.
There are many events put together by the many friends of Camp Sunshine. For those of you that don’t know about those events, or cannot participate, I humbly ask you to help Steve and me raise money during our participation in the Keencheefoonee Road Race. The race is one of the major fund-raising events for Camp Sunshine and it is driven entirely by the camp volunteers. This is the most amazing group of people I have ever met in all my travels around the world. Even though they volunteer their time, each year on the Tuesday morning of camp, before the campers awake, they start their day with a 5k run , or – as is the case of old fogies like Steve and me – walk, on the famous road to raise money.

I hope you can find it in your heart, and in your wallet, to make an online donation to Camp Sunshine through the Online Donation link (http://mycampsunshine.kintera.org/roadrace2011/karatecrew_papachuck) before July 1st, the day I leave for Camp (or to send me a check made out to Camp Sunshine).

Please indicate you are supporting the Karate Crew and the Keencheefoonee Road Race. For your tax records, their EIN number is 58-1872217.

And if you are interested in volunteering for Camp and want to know what it feels like to be a part of such a great group, please call me anytime.

Follow This Link to visit my personal web page and help me in my efforts to support Camp Sunshine

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Some email systems do not support the use of links and therefore this link may not appear to work. If so, copy and paste the following into your browser:

http://mycampsunshine.kintera.org/roadrace2011/karatecrew_papachuck?faf=1&e=4434964646

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Chuck Papageorgiou

Ethical Behavior Assessment Tools…

It seems like everywhere I turn these days someone is talking about using one assessment tool or another, from the old stand-by, Meyrs Briggs, to some very sophisticated profiling programs.  Even though it may be new to some, in the work I do for Ideasphere, I have been using many of the same tools for years to quickly assess existing management teams as well as hire new team members. I am personally partial to the Harrison Assessment, because it focuses on behavior that impacts daily work life and performance, rather than identifying underlying reasons for the behavior, but I think I have used every one of them at one point or another.

I value some the tools more than others, and take all of them with a grain of salt, but I do use them; They can give me a quick perspective on individuals and teams that can save me weeks of observation, which translates to a smoother, and more rapid implementation of any project, or turn-around I work on.
But here is the challenge; none of these tools tell you anything about the character of an individual, and I have yet to see a meaningfull test that can predict the ethical nature of one’s behavior. Regardless of people’s socio-economic backgrounds, education, credentials, or jobs they held at the time or prior, unfortunately, I have been surprised enough times by unethical, or illegal, behavior that almost nothing shocks me anymore. I have seen people flat out lie under oath, sabbotage coworkers by feeding them wrong information, mis-represent their own qualifications on their resume, cook the books to look good for investors, go back on verbal agreements, and use insider information to make illegal trades, that I would be justified to be somewhat cynical. But, and call me a softie on this one, I personally start by believing every person is decent, and give them the chance to prove otherwise. I always hope people will surprise me to the better and may times they do.
But I do believe there is one personality trait that is a good predictor of the potential of behavior that may go out of ethical or legal bounds.

It is an ingrained sense of entitlement, usually un-justified.

It has been my observation that, when someone deeply believes they are entitled to something, they will go to any length to attain it. This was also the conclusion of a friend of mine who is industrial psychologists and leads the assessment practice of a large recruiting firm. Through research conducted during a period of a couple of years, he also discovered that one common element for unethical behavior was a sense of entitlement about something around that behavior.

So be carefull about what you believe you are entitled to, because that may be the one thing that can cause you to display behavior unworthy of an operator, a manager, or even a decent human beeing. These are just some questions from experiences with people who displayed unethical behavior, even though, at their core, they thought of themselves as decent and ethical human beings.

Do you believe you are entitled to your discoveries, even though you developed them while employed by a company that makes it clear they own anything you develop while in their pay? If you do, be careful; this sense of entitlement may lead you to commit the crime of “Theft of Intellectual Property.” This is not something minor. This is a serious crime that, should it be pursued, can carry a jail sentence.
Do you believe you are entitled to a portion of the profits a company makes because of your contributions, even though you are not a commissioned sales person and the company does not have a profit sharing plan? If you work in accounting and have access to company bank accounts, this may lead you to steal directly from the company.

Do you believe you are entitled to a promotion because of the years you have been with the company, or in the industry, or your superior education, regardless of the opinions of your managers and co-workers? This may lead you to actively pursue making your peers look bad by pointing out imaginary short-comings, in the mistaken belief it will make you look better than them. Even though this is not illegal, it eventually catches up with you.

And finally, do you believe you are entitled to a job, regardless of your contributions? This sense of entitlement, may lead you to do less than expected of your job and try to cover it up with busywork, or excuses. Now this may not be illegal, but I would consider it highly unethical.
Me personally, I solved the business ethics problem. I believe I am entitled to nothing and have to earn everything. Problem solved! ;-)

My four favorite questions

I was the guest speaker for a group of 100 or so executives talking about strategy, when one of them asked me to share the one question I ask myself on a regular basis that I found most useful.  That got me thinking about a couple of questions I ask all the time, but I do not always hear others ask, so here they are; in no particular order.  My four favorite questions I wish more people asked more often.  If you have yours, please send them to me at c.papageorgiou@ideasphere.com.

1)      Huh?

It’s not a sign of weakness to admit someone is talking over your head, or they are using terminology you do not understand.  Like the amateur investor friend of mine who was ready to make an investment in a company with a product that was going to “revolutionize energy generation.”  He was so sold on this product by the inventor that he wanted me to co-invest so he sent me some of the literature to review.  Now, being an engineer, I fancy myself as a reasonably technical executive, but after the first paragraph, I have to admit I was totally lost.  From what I read, it looked as if this “inventor” had built a functioning perpetual motion machine.  So I called him, with my friend on the line, and asked him to help me understand the technology (without telling him I have an engineering degree) in layman’s terms.  After a half dozen “Huh’s,” followed by “so help me understand this better because I am not sure how this would work,” the “inventor” resorted to the classic “this is too technical for the layman to understand.”  When he dropped the word “quantum mechanics” in the mix, but could not articulate how that related to his invention, I knew this was a con.  Had my friend asked a few Huh’s himself, he would have been spared the ribbing he will be getting from me for the next decade for almost falling for this classic con.

2)      Then what?

I am amazed at the number of decisions being made without a single consideration for their subsequent impact.  Like the decision to pursue an acquisition of a competitor without any consideration of the integration challenges or the post-acquisition market response.  Or, asking the executive team to spend 20% of their time producing reports on a number of activities every week, without any plan of action to actually do something about or with the information.  Or, the reaction to a competitor announcement of a new product, by a company announcing its own “me-too” product coming soon and diverting resources to produce it.  In each of these cases, a simple “then what” might have saved the first company from the pain of having to take a significant loss because of the very high cost of integration, and the loss of critical customers who thought the merger was a bad idea.  A simple “then what” would have resulted in a more meaningful reporting format with actionable items assigned to specific individuals and a better use of the executive team’s time.  A “then what” question may have led the company to consider investing in developing the next generation of the product, rather than a “me too,” and taking market leadership position, rather than chasing the leader.

3)      So what?

There is so much information coming at us so fast, that sometimes its meaning is lost, exaggerated, ignored, or generates a wrong reaction.  Like a competitor issuing a press release they are working on “the next evolution of our industry” that sends the R&D group into a frenzy to get more resources.  Or a disgruntled employee subpoenaing a manager to “testify in a wrong-full termination lawsuit” that sends the HR department into a panic and the complete investigation of the working conditions in that particular department.  Or, the best one of all, a drop in revenue that causes the owners to re-shuffle the entire management team.  A “so what” would have kept the R&D group focused on their next product release, which was truly the next evolution in the industry.  A simple “so what,” would have kept the HR department from wasting thousands of dollars investigating a department and a department manager who had not a single complaint in fifteen years.  And a “so what” may have stopped the ensuing turmoil from changing the entire senior management team of company for a revenue drop that was consistent across the entire industry and, instead, made them listen to their requests for investment in new revenue streams that was delivered to them at each board meeting, in a different light.

4)      What’s the upside?

I owe this question to one of my clients, and a good friend, who always asked this question every time we had to make a decision.  Like the executive who, after losing his job because of poor performance, decided to step in the middle of a custody battle between one of his former co-workers and their ex-spouse by sharing confidential information from the company with the ex-spouse.  Or the investor in a company who decided to pursue litigation against the company founders after it failed and the founders declared bankruptcy.  In the first case, the great feeling of sticking it to the co-workers (the upside), had the downside of the company deciding to follow the letter of the law and make no concessions to that executive.  The investor in the second one had his day in court (the upside), but, since the three founders were all broke, he ended up spending tens of thousands of dollars in legal fees with nothing so show for it.

Legal contracts and common sense…

Maybe it’s just me, but, how would you feel if a sales executive, from a company you are considering doing business with, told you that his company should be allowed to, knowingly and negligently, deliver one of the parts you designed/built into your product, based on their specifications and warranties, that is defective and/or will not function as specified; and if/when they do that, and if your product fails, and the consequences have a significant impact on your company, they expect you not to hold them liable for any of the damage they caused you.

I am sure, like me, you would probably have a strong negative reaction and consider not doing business with the company, or simply just throw the sales person out the door. And yet, company attorneys insert this kind of language into the contracts that eventually follow most business discussions and agreements, without a second thought. Here is an sample below from one client:

IN NO EVENT SHALL COMPANY BE LIABLE FOR ANY CONSEQUENTIAL, INCIDENTAL OR SPECIAL DAMAGES, WHETHER DIRECT OR INDIRECT, ARISING OUT OF THE USE OF, OR INABILITY TO USE, PRODUCTS SOLD OR EQUIPMENT OR SERVICES PROVIDED BY COMPANY HEREUNDER, WHETHER SUCH DAMAGE, LOSS OR EXPENSE RESULTS FROM BREACH OF WARRANTY, NEGLIGENCE OR ANY OTHER CAUSE AND WHETHER OR NOT COMPANY KNEW OR SHOULD HAVE KNOWN OF THE POSSIBILITY OF SUCH LOSS, EXPENSE OR DAMAGE.

My reaction to language similar to this one on another project got a conversation started with one of our attorney partners, whom I have worked with for years and have great respect for, about the role of attorneys, and the General Counsel in today’s business environment. As usual, clients and names are altered to protect the innocent, but comments and feedback are welcomed.

I, and my trusted attorney friend, happen to believe there are two types of business lawyers.  Those who see their role as a facilitator to make business happen within the boundaries of the law, and those who see themselves as being the final arbiter of all company decisions, based on the assessment of legal risk. In my role at Ideasphere Partners, and as a corporate executive, I can work, and have worked, with both types but I clearly prefer the first.

In my experience, the relationship between the Chief Executive Officer (CEO) and the General Counsel (GC), whether employee or outside attorney, is a partnership very critical to the success of any business.  The current litigious environment notwithstanding however, the CEO and the operating team still must have the final responsibility for making business decisions and being held accountable for them. My simplified view of the relationship is that the GC is responsible for understanding and explaining/quantifying the legal risk of any transaction, contract, or business document, and proposing legal strategies and contract language to mitigate it, and the CEO, with additional input from the executive team and the Board, is responsible for the final decision of whether to accept it or not.

At least, that’s how I have worked with GC’s and other legal experts over my years as an executive inside companies, or as an executive consultant in M&A and Turn-around situations with Ideasphere Partners. In its simplest term, the job of the GC is to protect the company by providing counsel and competent legal advice; hence the title. Even though some GC’s go beyond that, and add incremental value to the business by driving certain operations/transactions, or acting as the independent consciousness of the company when it comes to ethics and business practices, that is not always a requirement for the job.

Running a business requires taking some calculated risks. Fear of litigation is just one more factor the CEO and the operating team must consider when making decisions. A good CEO needs to listen to their GC and, especially, if even the potential of interpretation of an activity as illegal exists, follow their guidance. However, a management team can not hide behind their GC, or delegate the decision of accepting/refusing /mitigating risk to her. Unfortunately, some CEO’s, are using the fear of litigation, as an excuse to do exactly that. They ask, or allow, their GC to attempt to mitigate all risks, at the risk of violating common sense, through legal means such as contract language and agreements. That is an exercise in futility that also makes doing business with these companies more difficult. By definition, the law is not perfect and can not contemplate all possible scenarios; therefore legal language is an imperfect means to protect the company in all cases and from all risk at all times.

Just like the example above! This clause attempts to perfectly isolate the company, at the expense of common sense. I am sure I will get e-mails from some of my attorney friends explaining to me that this is standard language designed to protect the company; that other sections of the contract should allow for holding the partner accountable; etc. etc. etc. I know all that, and, in the particular case I am talking about, we made sure we added language in other sections of the contract to protect the client; but please, read this from a business executive’s perspective and consider your reaction if you had to do business with someone who walked into a meeting with you and with a straight face yelled at you (notice this is in all caps) that:

IN NO EVENT SHALL COMPANY BE LIABLE FOR ANY CONSEQUENTIAL, INCIDENTAL OR SPECIAL DAMAGES, WHETHER DIRECT OR INDIRECT, ARISING OUT OF THE USE OF, OR INABILITY TO USE, PRODUCTS SOLD OR EQUIPMENT OR SERVICES PROVIDED BY COMPANY HEREUNDER, WHETHER SUCH DAMAGE, LOSS OR EXPENSE RESULTS FROM BREACH OF WARRANTY, NEGLIGENCE OR ANY OTHER CAUSE AND WHETHER OR NOT COMPANY KNEW OR SHOULD HAVE KNOWN OF THE POSSIBILITY OF SUCH LOSS, EXPENSE OR DAMAGE.

Again consider this; if that message was delivered verbally in a meeting between executives from the two companies, the reaction would have been one of absolute shock. This language is a real sample of contract language. It is similar to the one in the contract that got me started on this.  In all the meetings, the company executives praised their quality control systems, their engineering prowess, their attention to “doing business the right way,” etc. etc. etc. In all the meetings they talked about partnering with this client and being an “integral part of the success of this new product.” And after the deal was agreed to, the attorneys, well intentioned, or instructed, as they may have been to protect the company from everything possible that could went wrong, sent a document with language similar to the one above.

Of course they fully expected that section would be modified by my client’s attorney’s, or even negotiated out, but imagine the reaction of the business team who did the first review of this document. Some of the engineers on the team, before our attorney calmed them down, just wanted to drop the partner and look elsewhere. Cooler heads prevailed, and in the end, the deal was done, but creating language in other sections of the contract to counter the impact of this paragraph took away valuable weeks of productive time and increased the legal costs significantly.

And in the end; for what? Does any one really think that if the company knowingly and negligently ships bad parts that are off spec and cause the product to fail, there will not be litigation? Does anyone really think that they can permanently hide incompetence, unethical behavior, or stupidity behind legal language? This Kabuki dance goes on all the time and really accomplishes nothing other than test the ability of the lawyers from each side to write clever language to counter the other party. But then again, what do I know?  I am just an operator!

Ethical behavior in business – What are your standards?

I’ve been too busy with other Ideasphere Partners business lately to take the time and write another entry into my public blog, but this morning I was looking through my “Things I don’t like but have to do this week” list and noticed a pattern that made me want to scream, or at least vent in public.  Almost all the things on the list have to deal with potential litigation stemming from differences in the definition, and lapses (at least in my maybe-not-so-humble opinion) in ethical business and personal behavior.  Since, unfortunately, illegal and unethical are not always aligned, and ethical standards vary, there are always multiple views on what to do.  Here are some situations from my current and some older lists arranged from worst to not-as-clear-as-I-may-think unethical behavior. Obviously I can’t share the specifics but, as always, I look forward to your e-mails on the subject.

 

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Volunteering and raising money for Camp Sunshine

The work Camp Sunshine (www.mycampsunshine.com) does for children with cancer and their families is simply the stuff miracles are made from. It’s not often we can contribute to a miracle, and as many of you know, for the last eight years, my good friend Steve Brown, who has volunteered for over 20 years, and I, give a week of our time to be camp activity counselors teaching Karate to the 7-12 year old campers.  For the last couple of years we expanded the program to include two more instructors, Tara and Victor, and the kids just love it. 

It is one of the most treasured and important things I do each year, and the motivation behind this (now annual) e-mail.  Those of you who know me well can attest I am generally not prone to bouts of sentimentality for anything other than my own kids, except when it comes to our campers; Camp Sunshine deserves that for many reasons.  Not only is it an organization run by some of the best people I know, and it is a charity worthy of a special place in our hearts; it also has a special meaning for me because of the relationships I have built with the kids, even some who are no longer with us, over the years.  Being part of the “Karate Crew” and spending a week at Camp with children that are undergoing treatment, or have survived cancer, and still come to Karate practice and give it their best is a very humbling experience that places the importance of many things I deal with on a daily basis in the right perspective.

Unfortunately, volunteering time – emotionally rewarding and contributory as it might be – is only half the job of those who support Camp Sunshine.  As with every operation, until there is a cure, Camp Sunshine must raise money every year to support activities for the children and their families.  Tugging at your heart strings to help us raise money is the real purpose for this e-mail. 

Raising money, pays for children to go to summer camp and spend a week in an environment where living with cancer is not the exception, but rather the shared experience.  This is an environment where children with cancer can be just kids, amongst other kids like them, enjoying their summer. 

There are many events put together by the many friends of Camp Sunshine.  For those of you that don’t know about those events, or cannot participate, I humbly ask you to help Steve and me raise money during our participation in the  Keencheefoonee Road Race.  The race is one of the major fund-raising events for Camp Sunshine and it is driven entirely by the camp volunteers.  This is the most amazing group of people I have ever met in all my travels around the world.  Even though they volunteer their time, each year on the Tuesday morning of camp, before the campers awake, they start their day with a 5k run , or – as is the case of old fogies like Steve and me – walk, on the famous road to raise money. 

I hope you can find it in your heart, and in your wallet, to make an online donation to Camp Sunshine through the Online Donation link ( http://mycampsunshine.kintera.org/faf/r.asp?t=4&i=344806&u=344806-289243289 ) before June 18th (or to send me a check made out to Camp Sunshine).

Please indicate you are supporting the Karate Crew and the Keencheefoonee Road Race.  For your tax records, their EIN number is 58-1872217.

And if you are interested in volunteering for Camp and want to know what it feels like to be a part of such a great group, please call me anytime.

Relentlessly Objective Reality (Part 2 of 3)

The Cognitive Dissonance worm-hole

Those who listen to National Public Radio, know the Lake Wobegone motto that “all the women are strong, all the men are good looking, and all the children are above average."  In a Cognitive Dissonance Environment certain beliefs exist that are so ingrained in the company’s culture that they force people to collect data supporting them, but ignore data not consistent with those beliefs.  Over the years I have seen slogans and buzzwords become embedded in the company’s folklore, migrate to becoming consistently held beliefs, and eventually becoming sacred beliefs that could not be challenged.  When things go wrong, or not as planned, teams assess reality as it is defined by those credos, and transport themselves to the Lake Woebegone Universe.  They will address all other aspects of the company, but ignore any data indicating the problem may be because of one of those long held beliefs. 

This was a lesson I learned after an investor group asked us to assess the reasons for the declining revenue of a manufacturing company in their portfolio.  The company founder, started the company thirty years earlier based on the core belief that engineering excellence was the key to success.  He hired “the best and the brightest” and the company prided itself on its engineering prowess.  Every facility was adorned with engineering award plaques earned in the early years of the company’s existence and engineering had a special seat at the table.  So when sales declined, an internal team spent six months analyzing data to understand the reasons.  High prices, and the lack of an advertising program were identified as reasons and the team launched projects in both area to address them.  Alas, that did not generate any meaningful results.  By not questioning the “best and the brightest engineers”, they missed the one major contributing factor to the declining sales.  The market place viewed the latest products from the company as shoddily built and poorly engineered.  The team failed to recognize that in reality, the founder was no longer involved in engineering and had not been in fifteen years despite the rousing speeches on the subject.  And to make things worse, the engineers who designed the original product had been retiring for the last ten years, and the company could not hire the “best and the brightest” based on its past glory because competitors paid much higher salaries.  Even questioning the role of engineering was sacrilege for so many years that presenting our assessment was an extremely tough day for all involved.  But, after the company traveled back from Lake Wobegone to the Relentlessly Objective Reality universe, it hired a new director of engineering, re-structured its campus-recruiting and compensation package, and bought a small engineering firm to jump start development of the next generation of products.

Relentlessly Objective Reality

Those who have worked with me, even for a short period of time, know that I am a big fan of Ayn Rand and objectivism in general, and I use the terms Relentlessly-Objective-Reality (ROR) and Relentless Objectivity to define my personal, as well as the Ideasphere approach of defining any problem we work on, and structuring the search for solutions to it.  Even though it can be painful at times, and requires extra effort from all of us to engage in dialogue and hold Crucial Conversations rather than debates and witch-hunts, that practice is what makes the work we do at Ideasphere so effective in the long run.  Relentless objectivity enables any executive, interim or permanent, to see what current reality is before the start of an operationally oriented transformation or corporate renewal project, and to develop realistic plans to deal with it.  It also ensures that actions and strategies are meaningful and will produce the desired results.

Unfortunately relentless objectivity is neither easy, nor generally practiced (kinda-like common sense).  Over the years I have been surprised by unintended consequences that were a result of a team missing a key reality, or deploying a “going through the motions” solution that sounded good but did not work.  Teams that missed something that lurked in the background during the initial phase of a project, that should have been obvious, or an failing to conduct an objective assessment of the impact of a proposed solution that could have prevented an ineffective solution being deployed.  Even though some teams eventually recover, their transformation takes longer, or costs more than it should.  Even though the kinds of projects we work with are high risk/high reward projects, this situation is not unique to transformational projects.  Some research indicates that more than half of strategic projects fail to deliver on their promises.  Even more depressing is the acknowledgment by two thirds of senior executives participating in a McKinsey survey of executives from around the world, that their organizations rarely succeeded in achieving major change objectives.  Since making promises to clients and keeping them is what pays the bills around our office, avoiding becoming a part of that statistic has been one of our major goals. So in the process of continually improving the way we work, I have kept a running list of projects where I’ve seen bad things happened, and kept looking for answers to the question “What caused that?”. 

So, with apologies for the bad Star Trek analogies, I think there are four wormholes that transport a team from the Relentlessly Objective Reality (ROR) universe to one of the four Fake Abstract Reality (FAR) worlds.  Because these universes are parallel (or at least that’s a common view), a transformation team can be operating in one, or more, of those environments at any given time.  Frankly, I’ve seen at least one team operating in all four simultaneously.  So, based on my experience, here are the Four FAR worlds and the wormholes that lead teams there:

1)      The Content Free world through the Executive Arrogance wormhole

2)      The Lake Wobegone world through the Cognitive Dissonance wormhole

3)      The Borg world through the Groupthink wormhole, and

4)      The Cardassian world through the Confirmation Bias worm-hole

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Perfect Planning

An old client of Ideasphere Partners, and now a dear friend, asked me a couple of months back to spend a day with an executive team reviewing a project.  It was one that had gone horribly wrong in a small company he owns in his semi-retirement from executive life.  He was frustrated!  It was an important project with his full support, well planned , with good objectives, and managed by one of his young “Ivy league educated” stars.  A project “guaranteed” to succeed, that not only failed; it did so in a spectacular way.  It was something no one saw coming until it was too late.  After we worked through the project history, a pattern emerged that made it, in hindsight, obvious it was doomed to fail from the beginning.

“What went wrong in our project planning?” was the question my friend asked and the one got me started with this blog about a month ago (never enough time to write for fun these days).  As we worked through their project, and I thought more about projects I have seen fail over the years, including some of my own, the more interesting question became “why do perfect plans many times produce perfect failures?”. So here it goes:

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