What is a “collaborative organisation” anyway?

Over the last few years, I’ve spent a lot of time writing and talking about the benefits of collaboration and the technology to support collaboration in its many forms. What has become clear during that time, however, is just how nebulous and confusing the term “collaboration” is. But while it’s easy to get caught up in defining what “collaboration” itself actually means (and yes, MWD has its own definition too!), I’ve come to realise that it’s not necessarily the act of collaborating that needs defining, but what this means in the context of an organisation that is looking to be more collaborative. So perhaps the question should be – What does a collaborative organisation look like?

It is highly unlikely that there is no collaboration taking place in your organisation at present – people are no doubt talking to each other in the office or on the phone, sitting in meetings to discuss particular activities or events, or working together on particular projects or documents, for example. However, evidence of anecdotal collaboration such as this is not the same as being a collaborative organisation; this suggests an underlying culture of collaboration which drives all activity within the organisation. In real terms, I think there are three important characteristics that help to define a collaborative organisation:

1. A networked and non-hierarchical organisation structure
2. A culture of openness, honesty and trust
3. An engaged and valued workforce.

A networked and non-hierarchical organisation structure

A collaborative organisation is typically the antithesis of the “traditional” command-and-control organisation where there is a rigid hierarchy of roles and management authority. Instead, the organisation structure is much more fluid and flat , with individuals given greater responsibility to make decisions appropriate to their role and the task concerned, without the bottlenecks caused by layers of management approvals and red tape. Teams are defined not by their position within the organisation, but by what they are trying to achieve whether this is a specific project or an on-going business process and so tend to be more transient, with teams made up of a collection of different roles required to complete the task or tasks, rather than simply a group of peers of the same role, for example. Similarly, individuals are defined not by their role, their seniority, or even their team, but by the set of skills, knowledge and experience they can contribute to a particular task, discussion or activity.

Rather than layers of “management” which focus on controlling behaviour and driving activity, there is an emphasis on providing leadership– setting targets for individuals and teams, and then providing the appropriate motivation and support to help them achieve those targets. One of the benefits of less-structured, non-hierarchical collaborative working environments is that new ideas can be executed more quickly, enabling the organisation to respond rapidly to competitive challenges or market pressures. New projects and teams can get up and running quickly, without the need for major reorganisation, creating new dynamics within the business. Communication is also much faster, with central news able to reach individuals directly, rather than being filtered through management, and information able to flow more easily throughout the organisation via a peer-to-peer channel.

A culture of openness, honesty and trust

In a collaborative organisation, every individual has a voice, and is encouraged to express their opinion without fear of stepping on the toes of more senior people. This is less about people being given a forum to publicly criticise their peers, managers or leaders, but about creating an environment where openness, sharing and discussion is central to everything that takes place, be that the announcement or definition of a new strategy or direction for the company, a proposed change to a process in a particular part of the business, or simply an event, news item or suggestion at a local level. This does not mean to say that every activity, every decision within a collaborative organisation is necessarily always achieved collaboratively, but that there is a common bond of trust between peers, between leaders and employees, so that there is no sense of threat or inconvenience from inviting others to contribute an opinion, or provide feedback, and people are confident and willing to do so when asked.

An engaged and valued workforce

In a collaborative organisation, employees are given greater responsibility, and are given the opportunity to voice their opinion, to engage with peers and managers and in so doing– have a say in the way things are done and the direction the company is taking. The result is a workforce that is much more interested in the organisation’s fortunes, that cares whether or not the company achieves its goals, and that feels a collective sense of ownership and involvement in the process of achieving those goals. This empowered workforce has much greater loyalty to the organisation as a result, and so is less likely to churn frequently as individuals seek to gain greater levels of responsibility, or find an employer who better values their commitment.

Clearly, while most organisations can show evidence of some collaborative behaviour, the majority have some way to go before they can honestly say they check all three of these boxes. It’s a long, arduous journey in some cases, but those who have done it confirm it is worth the effort in the long run.

If you are embracing a more collaborative strategy in your organisation,check out this collection of reports and resources – including a free six-part webinar – on building a collaborative culture. Alternatively, you can get a free personalised action plan by completing the self-assessment in our Collaboration Maturity Acceleration Tool. If you’d like to find out more about how we can help, please get in touch!

SOURCE: MWD Advisors

CAN CORPORATE CULTURE BOOST FINANCIAL PERFORMANCE

Executives spend a lot of time worrying about their companies’ products and prices, but they don’t spend nearly enough time worrying about corporate character.

A lot of them don’t believe companies even have a character, and others don’t see what difference it could possibly make.

Correlation between employee investment and performance

But is there a direct correlation between employee investment and performance? As Prof. James L. Heskett wrote in his latest book The Culture Cycle, effective culture can account for 20-30 percent of the differential in corporate performance when compared with “culturally unremarkable” competitors.

Organisational culture eats strategy for breakfast, lunch and dinner so don’t leave it unattended

Kotter and Heskett’s landmark study Corporate Culture and Performance documented results for 207 large U.S. companies in 22 different industries over an eleven-year period.

Kotter and Heskett reported that companies that managed their cultures well saw revenue increases of 682% versus 166% for the companies that did not manage their cultures well – stock price increases of 901% versus 74% – and net income increases of 756% versus 1%.

Corporate culture is an incredibly powerful factor

Corporate culture is an incredibly powerful factor in a company’s long-term success. No matter how good your strategy is, when it comes down to it, people always make the difference. As Peter Drucker so wisely stated, “Culture eats strategy for breakfast.”

Top 4 corporate culture infographics

Culture is eating what it kills – such as strategy, change management, innovation, operational efficiency, lean process and even including vision and mission.

How to cultivate organisational culture?

Corporate culture is a hard thing to get right. It’s a moving target that means something different to everyone.

It grows and evolves over time and is the result of action and reaction. It is the lingering effect of every interaction. How to cultivate organisational culture?

Organisational culture eats strategy for breakfast, lunch and dinner from Torben Rick

SOURCE: Torben Rick

8 Common Reasons Why Over 50% of Small Businesses Fail Within the First 3 Years

Over 50% of new small businesses fail within the first three years. Hearing this statistic can scare even the most well prepared entrepreneurs. Here is a list of the most common mistakes entrepreneurs make that leads to business failure.

1. Bad Location – Location is crucial to the success of your business. You should always perform thorough research on the surrounding demographics of your potential location.

A good location may help struggling businesses survive when times are tough. A bad location could ultimately mean the end to even the most well managed business.

2. Operating Capital (Cash flow) – When starting your business you need a clear plan as to how much capital it’s going to take. One of the most common mistakes made by business owners is not having enough money to start and sustain their business. It’s important to figure out how much money you’ll need. You must take all cost into consideration. Even those unforeseen expenses like equipment maintenance. It is also important not to have unrealistic income expectations. Be conservative, usually you never make the amount of money you expect when first starting out.

3. No Website – 7 out of 10 people use the internet in America alone. All businesses should have an online presence. Websites give potential customers the ability to find information about your products and services. You can also generate additional revenue by selling your products or services online. You must be visible in today’s online marketplace in order for your business to reach its pinnacle.

4. Expanding Too Fast – This is one of the major causes of business failure. Business owners get success mixed up with how fast they can expand. Growth that is steady and slow is most important. Create a solid customer base and a good cash flow system. One indication that you may need to start thinking about expanding is when you’re having trouble keeping up with customer and production demands in a timely fashion.

5. Lack Of Research – Before starting your new business you should always do tons of research. Researching things like competition, demand for the product or service you will provide, availability and initial start up cost is very important. Great Ideas plus tons of research are two key components to small business success. Take time to understand the market and weather there is room for you to succeed.

6. Bad Marketing – If your customers don’t know you exist your business will fail. You must promote and advertise your business in the most affective way possible…within your budget that is. Create a marketing plan with an intact budget. Always start with direct marketing first, for example direct mail, email and local ads. These are quick and easy ways to incorporate tools to measure your marketing effort. Companies like itextmedia.net offer low cost text marketing for small businesses.

7. Terrible Management – Having a good business idea is one thing, managing that business is another. More times than not new business owners lack business management experience. They fail to recognize their weaknesses and how important it is to hire the right people to support them. They also have difficulty managing the meat and potatoes of the business; purchasing, marketing, and budgeting just to name a few. A good manager must have the ability to positively motivate workers make good decisions and lead the company in the right direction. He/She must also be a fast learner and pay close attention to the market.

8. Lack of Excitement (just trying to make a buck) – In order to maintain a level of success in your business venture it’s important to love what you do. Not having a strong desire to succeed or passion for what you are doing will lead to failure. Not only should you be excited about starting your own business, but more importantly you should be excited about the products or services you’re providing to your customers. There’s an old saying. If you love what you do, you won’t work a day in your life.

SOURCE: businesslightsideas

The Executive Guide to Business Process Management

Lean and the Corporate Agenda with Guest Jacob Stoller

The Role of the Process Owner

The 5 Main Steps Of The Lean Manager

7 Key Ingredients to BPM Success

Many companies today have already made or are about to plan strategic BPM initiatives all over their organizations. BPM is a vast subject which consists of a methodology, architecture, and tools that when implemented change how a business operates. This article seeks to highlight some of the key ingredients and project essentials to keep you on track and aligned to implement a successful BPM project…

 

Product is Key

Identifying the right product and partner to work with is of course critical. Look out for Proof of Concepts, as this is what showcases the capabilities of any BPM Suite that you’re looking for. However, the success of your final solution will be just as dependent upon the right product as it will about how it is used and implemented. The other variables at play help to determine whether your BPM project will be successful.

Expectations 

Do not succumb to pressure to have BPM address something that it clearly isn’t for. Getting the requirements and expectations right about where you can implement BPM to your business is very important. BPM is suitable for stringing together multiple transactions across systems and people, to complete a long-running process. BPM helps to tie these systems and processes together. 

 

The Right People

You need to find the right business analysts or architects to help you steer your project on course. Having the right leadership is crucial in driving the BPM mindset with employees and stakeholders alike. This needs to be ready from the start of the project. People define the strategy and business objectives. They also define the process and its expected level of performance and monitor its progress.

 

Proof of Concept (PoC) and Use Cases

This is linked to our Buy-In ingredient. It is important to have some use cases of end-to-end BPM success stories and journeys. This helps to persuade senior executives, management and stakeholders to buy-in to the project, but it also assists with the Requirements ingredient as it helps to benchmark where you want the project to go and what milestones you want it to achieve.

 

Management Buy-In

The project is doomed to fail if the vision at the executive level is unclear at the upper operational level. The BPM project will struggle and you won’t achieve all the full benefits of the program. Management need to lead from the front as people on the ground also need to buy-in to the project to apply themselves to the work needed and enhance a collaborative environment.

 

Design to Align

Get your ducks in a row though as the most advanced technologies or tools can’t guarantee success if your BPM is not aligned with your organization at large. Alignment is essential to any BPM project. BPM doesn’t just enable alignment though it demands it. It’s a critical component to the recipe of success, especially when using BPM to help execute your strategy. The design for successful BPM implementation is that it should be horizontally aligned to the business, breaking up silos within an organization and increasing the transparency and visibility of the project.

 

Mindset

Set all expectations at the beginning. It will not be an easy process and you must have the mindset to accept and apply the rigor and discipline that comes with a BPM project. People need to be bought into the rationale of the BPM project. Be prepared to subject your processes for a full open transparent and visible test of performance.

 

BPM Scorecard & Timings

Just like in many instances when following a recipe you take notes or create timers to ensure you’re on track with the deliverability of the end-product, in business you should have a scorecard or dashboard to monitor alignment and times within the business, progress with the project and further enhance the project’s visibility to employees.

 

Unless all these elements are defined, discussed or prepared from a project's outset, just like with a recipe, unnecessary chaos and confusion can occur. Follow these steps, set the right frameworks and monitoring metrics in place to help ensure that you’re on track to BPM success and continuous improvement.

SOURCE: processexcellencenetwork

BARRIERS TO ORGANIZATIONAL CHANGE

The more things change, the more they stay the same

In 1849, French journalist Jean-Baptise Alphonse Karr wrote what was to become a famous epigram: “Plus ça change, plus c’est la même chose.” Or “The more things change, the more they stay the same”. Though Karr penned this with a satirical edge, his quotation holds true in today’s corporations.

The outcome is almost always the same: The more things change, the more they stay the same – because more than 70% of change initiatives fail.

Barriers to organizational change

The brutal fact is that about 70% of all change initiatives fail. But why? In most of the cases organizational-change failures are driven by … negative employee attitudes and unproductive management behavior. The most general lesson to be learned from the many studies is that organizational culture is the most common barriers.

Change management has become much bigger

The reality is that today’s organizations were simply never designed to change proactively and deeply – they were built for discipline and efficiency, enforced through hierarchy and routinization. As a result, there’s a mismatch between the pace of change in the external environment and the fastest possible pace of change at most organizations.

Change management is no longer a term that denotes only operational improvements, cost efficiencies and process re-engineering. Change management has become a much bigger, more interwoven part of the overall business fabric – an embedded leadership requirement that plays into everything.

Build a change platform

Change is the new normal for leadership success and all leaders must accept this fact. Leaders need to build a change platform – one that allows anyone to initiate change, recruit confederates, suggest solutions and launch experiments.

SOURCE: Torben Rick

Process Improvement - Setting up for success

Lessons from the Red Bead Experiment

What Amazing Bosses Do Differently

We all know that job satisfaction often hinges on the quality of the relationships we have with our bosses. Yet in today’s rapidly evolving, 24/7 workplaces, it’s not always clear what managers should do to create the most satisfying work experiences and the happiest employees. My research into the world’s most successful bosses has unearthed some common practices that make work much more meaningful and enjoyable. If you supervise others, make sure you do the following:

Manage individuals, not teams. When you’re under pressure, it’s easy to forget that employees are unique individuals, with varying interests, abilities, goals, and styles of learning. But it’s important to customize your interactions with them. Ensure you understand what makes them tick. Be available and accessible for one-on-one conversations. Deliver lessons cued to individual developmental needs. And when it comes to promotion, look past rigid competency models and career ladders for growth opportunities tailored to the ambitions, talents, and capacities of each person.

Dr. Paul Batalden, a professor emeritus at Dartmouth College’s Geisel School of Medicine, who previously worked under Tommy Frist at healthcare giant HCA, told me that his former boss was “such an unusual CEO” of a company that size. “You could always get to see him. He always had time.”  Samuel Howard, another Frist protégé who is now CEO of Xantus Corp, added, “when you asked him to do something, he would roll up his sleeves” and work with you to get it done.

Go big on meaning.  Most employees value jobs that let them contribute and make a difference, and many organizations now emphasize meaning and purpose in the hopes of fostering engagement. But this is also the manager’s responsibility. You can’t rely on incentives like bonuses, stock options, or raises. You’ve got to inspire them with a vision, set challenging goals and pump up their confidence so they believe they can actually win. Articulate a clear purpose that fires your team up, set expectations high, and convey to the group that you think they’re capable of virtually anything.

Legendary bosses like Bill Sanders in real estate, Julian Robertson in hedge funds, and Bill Walsh in professional football all communicated visions that entranced employees and left them hell-bent on success. Scot Sellers, a protégé of Sanders who went on to become CEO of Archstone before retiring in 2013, recalled that his former boss “would lay out his vision and say, ‘I would like you to be a part of it.’ You were so honored to be asked… that you just wanted to jump in and say, ‘Sign me up!’”

Focus on feedback. A 2013 Society for Human Resource Management survey of managers in the U.S. found that “only 2% provide ongoing feedback to their employees.” Just 2%!   Many bosses limit themselves to the dreaded “performance review” and often mingle developmental feedback with discussions about compensation and promotion, rendering the former much less effective.

As I’ve written elsewhere, some organizations are changing their ways, but even if yours sticks with traditional reviews, you can still supplement that with the kind of continuous, personalized feedback that the best bosses employ. Use regular—at least weekly—one-on-one conversations to give lots of coaching. Make the feedback clear, honest and constructive, and frame it so that it promotes independence and initiative.

Hedge fund manager Chase Coleman remembered that his former boss and backer, Tiger Management founder Julian Robertson, was “very good at understanding what motivated people and how to extract maximum performance out of [them]. . . . For some, that [meant] encouraging them, and for others, it [meant] making them feel less comfortable. He would adjust his feedback.”

Don’t just talk… listen. Employees tend to be happiest when they feel free to contribute new ideas and take initiative, and most managers claim they want people who do just that. So why doesn’t it happen more often? Usually the problem is that bosses promote their own views too strongly. Employees wonder: “Why bother taking risks with new ideas when my boss’s views are already so fixed?”

The best leaders spend a great deal of time listening. They pose problems and challenges, then ask questions to enlist the entire team in generating solutions. They reward innovation and initiative, and encourage everyone in the group to do the same.

Football coach Walsh went out of his way to encourage input not only from his assistant coaches, but also from the players themselves. He did this before the game, during the game, and afterwards when watching game film. This more collaborative approach probably had something to do with his track record with the San Francisco 49ers: six division titles, three NFC Championship titles and three Super Bowl wins.

Be consistent. Who could be happy with a boss who does one thing one day and another thing the next? It’s hard to feel motivated when the bar is always shifting in unpredictable ways and you never know what to expect or how to get ahead. So be consistent in your management style, vision, expectations, feedback and openness to new ideas. If change becomes necessary, acknowledge it openly and quickly.

Kyle Craig, who worked with restaurant impresario Norman Brinker at Burger King in the 1980s, remembered his boss’s consistent humility. “He was never unwilling to admit his failures and mistakes, which puts people around him very much at ease.” Bill Walsh, meanwhile, came across as consistently confident. As former 49ers wide receiver Dwight Clark remarked, “There was just an attitude. He walked with a strut almost—not cocky, just very confident.” These superbosses had dramatically different approaches, yet both worked well because they were consistent.

No behavior a boss adopts will guarantee happy employees, but managers who follow these five key practices will find that they will help improve well-being, engagement, and productivity on any team. The common denominator is attentiveness. Pay close attention to your employees as individuals. Take that extra bit of time to build their confidence and articulate a vision; to provide constant, ongoing, high quality feedback; and to listen to their ideas. And ensure that your own messages are consistent.  Is it hard work? Yes. But it’s worth it.

SOURCE: Harvard Business Review