Corporate transformation under pressure

Most companies find it hard to transform themselves in difficult circumstances. Those that use proven tactics markedly improve their chances of success.

It’s relatively rare for transformation programs to succeed; many surveys, including our own, put the success rate at less than 40 percent.1 Our recent research, however, underscores the fact that certain tactics promote successful outcomes. The most important tactics are setting clear and high aspirations and targets, exercising strong leadership from the top, creating an unambiguous structure for the transformation, and maintaining energy and involvement throughout the organization.2 Companies that used all of these tactics succeeded more than 80 percent of the time.3

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Rethinking Trust

Despite deceit, greed, and incompetence on a previously unimaginable scale, people are still trusting too much.

For the past two decades, trust has been touted as the all-powerful lubricant that keeps the economic wheels turning and greases the right connections—all to our collective benefit. Popular business books proclaim the power and virtue of trust. Academics have enthusiastically piled up study after study showing the varied benefits of trust, especially when it is based on a clear track record, credible expertise, and prominence in the right networks.

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New Offices

We would like to announce that after an extensive search for suitable premises, we have re-located to the beautiful Southgate precinct.  

The office offers comprehensive facilities suitable for meetings with state-of-the art technology, executive coaching in a relaxed and private environment and workshops.

Our new office is at Level 23, HWT Tower, 40 City Road, Southgate Vic 3006.  Please feel free to visit us.

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New Strategic Partners: CrossRoads Human Resources

We are pleased to announce a new strategic partnership with CrossRoads Human Resources.  Because TLS works with organisations to create sustainable, high performance cultures - it became clear to us that we needed partners with specialist expertise in HR strategy to partner with us and our clients to ensure all key aspects of culture change were addressed.


Crossroads Human Resources is a specialist HR Solutions and Executive Search practice. They have been working with businesses for 10 years to ensure People Management practices have a positive impact on their business goals.  Crossroads works with clients to ensure that HR strategy is aligned to Business strategy by building solid strategies around HR processes, people and technology.  They work with clients of all sizes across a range of industries providing flexible, pragmatic and tailored services.  TLS and Crossroads will work closely together to ensure that HR strategy is a key part of the process.

We are very pleased to be able to bring the expertise of CrossRoads to our clients.

Go to www.crossroadshr.com.au for more information.

Announcement: The Leadership Sphere and ASI Aviation Consultants form 'Teamscape'

We are pleased to announce that The Leadership Sphere has formed a joint venture with ASI Aviation Consultants to form a second company called Teamscape Pty Ltd.

Teamscape has united the guiding principles of the aviation industry’s crew resource management (CRM) program with leading edge corporate training to develop the n·2 system™ – a range of organisational effectiveness, leadership and team development modules supported by coaching and on-line learning.

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A Good Way to Change a Corporate Culture

"I'd like to talk to you about a big project," the woman told me on the phone. "We need to change our culture."

She was a senior leader in a professional services firm, where people really are their most important asset. Only it turns out the people weren't so happy. Theirs was a very successful firm with high revenues, great clients, and hard working employees. But employee satisfaction was abysmally low and turnover rates were staggeringly high. Employees were performing, they just weren't staying. 

This firm had developed a reputation for being a terrible place to work. When I met with the head of the firm, he illustrated the problem with a personal example. Just recently, he told me, a client meeting had been scheduled on the day one of his employees was getting married. "I told her she needed to be there. That the meeting was early enough and she could still get to her wedding on time."

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From Lemons to Lemonade: Squeeze Every Last Drop of Success Out of Your Mistakes

It's one of the more uncomfortable subjects to discuss. It's something every human experiences at one point or another, yet we prefer to hide its occurrence from friends, family and co-workers. We've even gone so far as to try to banish its negative effects from the lives of our children. However, it's very likely that all this avoidance is only causing us further distress, in ways we can't foresee. The experience is failure, and author Dean A. Shepherd argues that we can (and should) learn and grow every time we fail. His new book From Lemons to Lemonade: Squeeze Every Last Drop of Success Out of Your Mistakes is a how-to guide to this surprisingly complicated process.

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Performance Reviews Without the Anxiety

A manager in Belgium eases employees' tension by giving advice and feedback throughout the year.  No one on Philippe Lescornez' team of grocery sales specialists goes into a performance evaluation expecting any big news. If the manager has something important to say, he will just say it, rather than wait for a formal feedback session.

Tastefully done: Philippe Lescornez' good-natured, thoughtful attitude toward performance evaluations has almost made them a treat for his team at Masterfoods.

While for other workgroups, the yearly or semi-annual appraisals can be anxiety-laden confrontations between an employee and a company's official representative, Lescornez approaches them as an opportunity to summarize and commit to paper hundreds of discussions that have occurred along the way.

The veteran manager's team scores him among the top 20% of supervisors worldwide on the Eleventh Element of Great Managing, which is measured by the statement: "In the last six months, someone at work has talked to me about my progress." (See sidebar "The 12 Elements of Great Managing.") Lescornez is considered one of the best mentors in his company and was recently recognized with its "Line Manager Excellence" award for Europe.

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What Strong Teams Have in Common

Gallup has been studying leadership teams for nearly four decades, and we have witnessed some telltale signs of strong, high-performing teams:

1. Conflict doesn't destroy strong teams because strong teams focus on results.

Contrary to popular belief, the most successful teams are not the ones in which team members always agree with one another. Instead, they are often characterized by healthy debate -- and at times, heated arguments. What distinguishes strong teams from dysfunctional ones is that debate doesn't cause them to fragment. Instead of becoming more isolated during tough times, these teams actually gain strength and develop cohesion.

One reason great teams are able to grow through conflict is because they have a laser-like focus on results. Top teams seek out evidence and data and try to remain as objective as possible. As a result, while people may have different views, they are united in seeking the truth. Team members can argue, but in the end, they are on the same side. In sharp contrast, failing teams tend to personalize disagreement, creating territorial divides that continue to grow.

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Love That Culture

A culture that supports high performance remains one the most desirable yet difficult things to attain.  In this article by the Australian Institute of Management (Management Today), Phillip Ralph, Managing Director of The Leadership Sphere is interviewed about how to create a great culture.

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Stories, Storytelling, Story-Selling in Business

At this moment in our nations history, we are seeing two epic stories evolving in terms of our new President, and in the state of our economy.

The story of Obama many believe is epic, and certainly the story of our nation’s recession and economic downfall is also a burgeoning epic tale.  Stories move societies forward. They inspire, engage and initiate change through their telling and re-telling.

Basically, there are two types of stories: Truth Stories and True Stories.  The first type, Truth Stories, are those that convey timeless messages and universal truths. Homer’s Iliad and Odyssey were the first Truth Stories. These are the epic stories recounting the Trojan War and the journey of Ulysses. They were stories about heroes and their roles in epic events.

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A Note from the Editors at HBR

Leadership is never easy, but it is incredibly tough right now: The global financial system is basically paralyzed, the recession is the worst we’ve seen in the better part of a century, and trust in institutions and the people who lead them is at an all-time low.

Who better to put the subject of crisis leadership in perspective than Doris Kearns Goodwin, the presidential historian? Goodwin has written extensively about Abraham Lincoln and Franklin Delano Roosevelt, the two presidents who led the United States during its biggest crises: the Civil War and the Great Depression. She combines a shrewd understanding of how these leaders shaped their times and a profoundly empathetic sense of their emotional makeup. Her Different Voice conversation with senior editor Diane Coutu is about political leadership, obviously, but the lessons Goodwin synthesizes work as well for business leaders as they do for politicians.

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Top Management Issues - What Really Drives Your Business?

In 2007, the Australian Institute of Management (AIM) ran an on-line survey asking managers to choose their top six management priorities from a list of 30.  The goal of the survey was to highlight the most critical management issues then facing managers.  In 2007, the top priorities were:

  1. Achieving key objectives/outcomes
  2. Work/Life balance
  3. Finding/appointing talented staff
  4. Developing organisational leaders
  5. Retaining staff

The same survey question was then asked in 2008, however with quite different results.  The top six management priorities in 2008 were:

  1. Leadership
  2. Managing organisational culture
  3. Motivating staff
  4. Personnel development
  5. Work/Life balance
  6. Achieving key objectives/outcomes

There could be many reasons for the jump of 'Leadership' into first position and 'Managing Organisational Culture' into the second spot.  We would like to think that organisations are finally starting to realise that leadership and culture are more than just 'nice-to-haves', and that measuring, developing and sustaining constructive cultures 'fit-for-purpose' is critical to success.

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High Project Failure Rates

A recent study by IBM of more than 1500 change management executives reveals that nearly 60 per cent of projects aimed at achieving business change fail to meet their objectives fully.  The Making Change Work Study found that the most successful organisations, described as 'change masters', succeed in 80 per cent of their projects, while the bottom 20 per cent, 'change novices' report a project success rate of 8 per cent.

The study of executives in 15 countries shows the most common business objectives for change programs were cost reduction, higher customer satisfaction, and increasing revenue and sales.  Change practitioners indicated that the main obstacles were cost to implementing change centred on people and corporate culture, while the enablers for success were top management sponsorship, employee involvement, and honest, timely communication.

Management Today, AIM, March 2009.

Launch of Our On-Line Client Portal

In our endeavors to offer unparalleled levels of client service and support, we are excited to announce our new on-line client portal.

IStock_000005946607XSmall The portal is a web-based project management, collaboration, and task management software application that helps TLS staff and our clients be more productive together. Whereas most on-line Project Management software is overly complex, the portal is intuitive and easy-to-use.  The system is designed for TLS staff to more efficiently and effectively manage all aspects of the engagement - and where appropriate, in conjunction with the key client liaison.

Clients can choose their level of use of the portal, from full integration and management of all aspects of the engagement right through to being able to nominate a preference not to use the portal - the choice is yours. 

For those who like the detail (and you can choose the level of detail):

  • Clear Milestone and Task Lists - avoid confusion about what was promised to be delivered by when and by who.
  • Upcoming Milestones Alerts - notifications sent via e-mail.
  • Task notifications - users (TLS and clients) can optionally send a notification to a team member when a task is assigned to them and a status report can be sent back if desired.
  • Daily Overdue Items Report - this daily e-mail ensures you know the status of late tasks. 
  • Messaging System - the ability to be able to post messages and receive replies to any project-related query you may have.  Replies are automatically linked into the project.
  • Secure User Name and Password - clients are provided with their own user-name and passwords for enhanced security.
  • File Uploads and version control - relevant documents, including agendas and a myriad of useful templates are available for TLS staff and clients (e.g. letter templates for clients to send to their teams about particular processes).
  • Notebook - a creative space where project team members can exchange ideas, documents and anything else they feel like doing.
  • Track time spent on different tasks.
  • Multiple Language Support - you can choose the language you would like to use and the entire portal will immediately display that language in all text labels.

We look forward to sharing this new innovation with you as we partner to achieve exceptional outcomes.

 

New National Client Help Line - 1300 100 TLS (857)

We are pleased to announce a new national client help line set up to handle all new inquiries and to provide prompt support and assistance for our existing clients. The new 'smart' number (named by the Australian Government because it contains words) means that clients can caIStock_000003177212XSmallll from anywhere in Australia for the cost of a local call. 

The number is staffed from 8am to 6pm (AEDT) Monday to Friday by TLS staff with consulting and project management experience. The number can be used for new callers wanting to contact a consultant, coach or facilitator; as well existing clients who need prompt support and assistance.

This service is in addition to our new on-line client portal (OCP) which enables a truly collaborative approach to the management of key outcomes, milestones and (relevant) tasks. 

We will continue to strive to deliver exceptional outcomes and value to all or our clients.

Despite Cutbacks, Firms Invest in Developing Leaders

Companies Renew Focus on Employee Training, Betting That Strong Managers Will Help Through the Recovery

According to The Wall Street Journal, despite layoffs and recession-starved budgets, many employers are investing in leadership-development programs, hoping not to be caught short of strong managers when the economy recovers.

Identifying and grooming leaders is important in good times, says Bret Furio, senior vice president of consumer lifestyle for Philips Electronics North America. "In times of crisis when the economy is struggling," he adds, "it's imperative."

Like many companies, Philips Electronics NV is trimming its training budget this year. A December survey of 117 large U.S. companies by Watson Wyatt Worldwide Inc. found 23% of respondents had recently cut training programs, and another 18% planned to do so this year.

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Can a manager have a life and a career?

Can managers have a work-family balance and career advancement?  Yes, is the answer.   Using self ratings, peer ratings, and supervisor ratings of 9,627 managers in 33 countries, the authors generally found that managers who were rated higher in work-life balance were rated higher in career advancement potential than were managers who were rated lower in work-life balance.  This gives weight to enrichment and expansionist theories that advocate a person can add to career potential by enrichening the life balance. 

On the whole, they found similar results for women and men, except that national context did make a difference.  Women's career advancement and life balance was more marked in cultures that displayed a high level of egalitarianism between the sexes, while the same was true for men in cultures where sexual equality was low.

Lyness, Karen S.; Judiesch, Michael K., Journal of Applied Psychology, 2008, Vol 93, No. 4, Pages 789-805

Strategy and the Fat Smoker

The title of David Maister's latest book doesn't give many clues to it's central theme, but it is catchy. 

Maister suggests a focus first on what to change, and then on how to change. Maister points out that real change requires a permanent shift in organizational habits - analogous to the permanent change in eating habits required to lose weight and keep it off.  In order to succeed at such change, you (the organization) must be fully and completely committed.  So you better be sure you want it!

There are three central questions asked:

"Which diet, if integrated into our normal running of the firm, would actually get us to perform at a higher level, enough to achieve the benefits we seek?

"Which would we be prepared to adopt as a natural part of our regular lifestyle?

"If we don't like any of these diets can anyone think of another that will have as much force as these, but that we could live with more easily?"

He concludes by offering six suggestions for building the commitment that permanent change requires:

  1. Give it time - permanent change is hard and takes a long time.
  2. Change the scorecard and rewards system.
  3. Management must change how they act, how they are measured and how they are paid, or the rest of the organization will not change.
  4. Focus on principle more than on tactics.
  5. People must choose to get with the program or not - you can't force people to be committed to the change.
  6. But if they choose not to get with the program, you need to get them out quickly.  This is especially true at the top - if a member of the top team is not committed, that person needs to go.

    Download strategy_and_the_fat_smoker.pdf (PDF 453 KB)

 

Leadership and Self Deception - Getting Out of the Box

By Julie Fleming Brown

An infant is learning to crawl. She begins by pushing herself backward around the house. Backing herself around, she gets lodged beneath the furniture. There she thrashes about -- crying and banging her little head against the sides and undersides of the pieces. She is stuck and hates it. So she does the only things she can think of to get herself out -- she pushes even harder, which only worsens her problem. She's more stuck than ever.

If this infant could talk, she would blame the furniture for her troubles. She, after all, is doing everything she can think of. The problem couldn't be hers. But of course the problem is hers, even though she can't see it. While it's true she's doing everything she can think of, the problem is precisely that she can't see how she's the problem. Having the problem she has, nothing she can think of will be a solution.

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