When a good company is acquired by a lesser company-what is the focus of OD?

This is a highly specialized article about doing a post merger OD intervention in a situation whereby a less successful  company with fewer competencies acquires a more successful and competent company and/or when a large, rigid behemoth acquires an innovative company, as illustrated by consultant Terry Seamon in his comments to this post.

First of all, let’s talk about what not to do:

  • don’t focus on creating one culture or merging the two, which cannot be done in any case.
  • don’t initially focus on the interfaces.
  • don’t work on cultural differences.

The initial focus should be on:

  • structure that accommodates as much autonomy as possible for the short term as well as minimizing interfaces where the gaps in competency are overwhelming.
  • short-term decision making forums based on parity, i.e. an equal number of decision makers from both sides, if at all possible. It’s not perfect but it’s probably the best that can be done.
  • preservation of competencies in the acquired company. 
  • reputation management with the client base with special attention to account managers
  • as much relocation as possible for as long as possible; this can be used to mitigate impact of less successful layers and augment the impact of more competent if done properly
  • creation of a House of Lords in order to relocate members of the acquiring company who need to be moved aside elegantly

For a cookbook on how to choke an innovative company to death, here is a link.

 

 

 

 

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Leadership and Management are a real-world activity-with a bright side and a darker side. A very dark side.

The way that people lead and manage is a function of the economic system in which they serve. Years ago (1961), David Granick illustrated this ever so skilfully in his book the Red Executive.

Of course, the present “capitalism-on-steroids ” develops a certain brand of leaders as well. Leaders and managers do some pretty awful things to get to the top, and  to stay there. As consultant Robin Cook points out in his comments to this post, this is due in part to the instant gratification’ culture (served by)management…most decision making has been short term (and is) based on tomorrow’s stock price &/or next quarter’s earnings statement”.

First, I shall provide a few examples of managerial behaviours which serve the system -after which we will have a look at what all this means for OD practitioners in our practical consulting work.

  • They say contradictory things to different audiences. Not just different emphasis! Different things altogether. 
  • They promise things that cannot be done, and then, slowly decommit, or recommit to yet another unachievable set of goals.
  • They allocate blame ensuring that very little “sticks” to them.
  • They please certain powerful stakeholders to the detriment of others. 
  • They set deadlines and apply pressure that endanger people’s mental health.
  • They pay as little as possible to get as much as possible, especially in labour intensive industries.
  • They scheme to crush organized labour. 

These activities are practised not only by poisonous and “loser”  managers, but also by very good and effective managers. Yes, management is a real-world activity-with a bright side and a darker side. A very dark side.

So what does this mean for OD and the people who train managers? Well, I’ll tell you what it has meant for me in my 45 years of practice with some pretty senior people. I always talk about things as they are-discussing all the possibilities and the trade offs.

  • “Yes, you can fire the present R&D manager to take the blame for the delay-but let’s examine what that means for your positioning  with the team, who knows you force fed these crazy deadlines.”
  • “The re-org you are proposing will buy time, but the shit will hit the fan anyway. If you take appropriate corrective action now, you know what you are facing. If you delay action by a bogus re-org, you will deal with the devil you don’t know.”
  • I avoid discussing the role of the leader as do most OD people, ie as a super hero and passionate visionary who walks on water, inspiring people by dint of his (or hers, or its) personality, charisma or  whatever. Leadership and management just do not work like that. Sugar-coating the art of management ruins your credibility.

 

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How aware are you about others’ perception of your own culture?

Bob Small (Iowa) , who has been running the Integration Team for two years, informed his staff that he has accepted a new role with a competitor and is leaving in a month. Bob is unaware that his move is seen as self-serving whoring by several of his staff-because he puts his individual needs before those of his team.

Manfred (Munich) has just learned that his direct report Emma (Italy) invited Selene from presales agreed to attend a design review meeting. Manfred sent Emma an angry text message; Emma spoke to HR to get a transfer away from “Manfred’s control obsessiveness”. Manfred cannot understand why Emma did not run this decision by him first.

Shauli (Israel) asked Sanjay (Hyderabad) to suspend a certain safety routine for 5 minutes to allow him to fix a bug on site at a customer. Sanjay told Shauli that he will do so “after I tell my boss”. Sanjay thinks Shauli is overly pushy.

Sanjay (Hyderabad) told the same Shauli  that he has indeed taken care of the purchase order for new CAD tools. Shauli has got the same answer for six months and he thinks Sanjay is a liar. The truth is that Sanjay has asked for budget, but has not “yet” received an answer. 

True, Sanjay, Shauli, Manfred, Emma, Bob and Selene should learn about the cultural values of those people with whom they work. However, my belief is that the precursor to any cultural awareness learning is a thorough knowledge of how others’ see your very own culture.

This self awareness is often hardest for those who believe that other cultures are “less developed” than their own, i.e.- commonly Anglo cultures and Japan. Dutch, Scandinavians, Germans, Israeli and Russians have an easier time learning about themselves because they tend to be less defensive about how “right” they are. 

 

 

 

 

 

 

 

 

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What can happen when the work place does not factor in the input of employee’s spouse?

Before you start reading this post, please note that I am not politically correct, nor do I use gender pronouns as is currently popular. And while all comments are welcome, I ignore comments that relate to my PC compatibility . Now let’s get down to a case study.

Fred, aged 48, has worked as Deputy CFO at large and well known international law firm, for whom he has been working 20 years. Fred’s boss, Harold, is 58 years old and has been with the firm since day one. Harold focuses on relations with tax lobbyists, PR in the financial community, and ensuring that he is involved in large new contracts to ensure profitability. Fred, on the other hand, does all the grunt work, at which he is very very good: thorough and meticulous.

Fred’s wife, Joselin, thinks it’s time that Fred take a crack at a CFO job and leave the law firm where “you will never get promoted till Harold kicks the bucket”. Joselin feels that the law firm takes Fred for granted, although he is very well paid. But, the company doesn’t allow Fred to travel first class to Japan (5 times a year) whilst Harold does have that privilege. And Harold has purchased a flat for his 4 kids, while Fred and Joselin can be generous, but not that generous.

Joselin also thinks that her husband needs to start to play “major leagues”, and not “plod on like a run-of-the mill ‘comptable’ (accountant in French)”.

It’s November now and the firm is planning its review process. Joselin has been pouring it on very thick lately, and Fred has even acquiesced to meeting a few young entrepreneurs who want a CFO to build the company, raise money, keep the firm on track, and join all negotiations. And the start ups are offering huge options and fat salaries.

No one on Fred’s firm knows too much about Joselin except that she is French (Canadian), the Head of The Physics Department at a local (very well known) university, dresses well and appears to be an excellent supportive partner to Fred as well as a devoted mother.

Fred is about to get the regular feedback -“huge asset to company; what would we do without you; 15% salary raise; one day the CFO job is yours; you need to trust your people more”. Joselin, in the meantime, is turning the screws, and Fred is torn.

It’s easy to claim that there is a separation between family life and work. But this is not always true. In many cultures, it is never true, especially in Middle eastern cultures and family businesses. In Western cultures, there is separation barrier, but a weak one.

But one thing is sure-the impact of the spouse on decisions that an employee makes are critical-and those who take the separation barrier to be very rigid, do so at their peril.

 

 

 

  

 

 

 

 

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“Mutual Adaptation”: Case Study of OD in a global context

When faced with complex issues in a global organizational context, many practitioners fall back on the  traditional values of the OD profession. These values, western in their etiology, are built into the type of input OD professionals provide, as are the tools that the OD practitioner administers.

When traditional OD  tools and interventions are aimed at a Miami water utility or a Houston department store chain, that’s one thing.

In a global environment, a less value driven approach is more appropriate. There is no use of asking a Thai engineering team to be more “open” with their Taipei based boss.

I have found that bringing  people to “mutually adapt” to one another is an extraordinarily useful approach.

It is not a value-neutral approach,  but it is not ramming my values as a consultant down the client throat-and subsequently failing, to boot.

Leveraging “Mutual Adaptation” rather than naïve value imposition,  does drive behavioural change in organizations with acute diversity.

Mutual adaptation basically provides the client with the following platform: you all are both very different. You have a common task, but you probably understand it differently. The way to get it done is in your hands. Find a way to work together. If you hold onto your own way of doing things, it may/may not work, but there are prices to pay. Try to adapt to one another. Assume your partner will do the same. Or he/she may not. That needs to be worked out.

Case:-

Sherman Whitehead is an American executive who likes to shoot straight, make decisions expediently and delegate. Sherman is New Product Introduction VP.

His colleague Nathan Ramos from the Philippines prefers to concentrate authority, delays decision making until he can try to please most of the stakeholders, and sees each and every decision as a matter of principle. Nathan is Key Greater Manilla Area Account Manager.

Sherman is driving the introduction of  a new product into Nathan’s territory. Until now, it has been a massive failure.

Sherman and Nathan have a great difficulty working together. Sherman has his foot on the gas; Nathan has his foot on the brakes. Sherman takes risks; Nathan plays it safe. Sherman makes decisions; Nathan says yes and then sabotages. No client is willing to meet with Sherman and Nathan’s sales may plunge within a year, or may not. But the heat between them reached HQ.

A traditional OD consultant was called in to “jump start” their relationship. The consultant, armed with the corporate values of “focus on implementation” and his own preference for openness/transparency and “meeting in the middle”, soon lost Nathan’s trust by force-feeding transparency. In parallel, the consultant lost Sherman’s trust for slowing things down and sloganeering.

Elan is yet another consultant who was hired after the first consultant failed. Elan  sat with both parties separately and then together; he explained that they need to find a way to mutually adapt to one another. This may mean compromise; overpowering one another; cutting a deal, backstabbing, helping one another look good. Whatever. But the consultant says he has no preference. “Find a way to adapt; I can work with each of you together, or separately, or you can figure it out on your own.”

Then Elan sat with both parties separately, and explained the world view of the other party is his own words, removing nuances which could aggravate mutual adaptation.

Nathan called Elan to have supper and explained to him that he, Nathan, was fearful of losing a key government account if he took too many risks. Sherman had a drink with Elan at midnight and asked Elan to “tell me what I need to do to move this thing forward”.

Elan’s approach was to pressure each side to assume ownership of adapting to the other. At times, but rarely, he offered a compromise when both sides agreed up front to accept it because they were stuck.

Since the prognosis for mutual adaptation is hampered when one party is more powerful than the other in role, power, or the way power is used, the use of “mutual adaptation” must be modified given a gap in power differential. Elan either sets ground-rules up front  and/or abandons the technique and reverts to a more executive type of  OD intervention. And thanks to Peter Altschul for pointing out the need to clarify the impact of power differential on the dynamic.

 

 

 

 

 

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Who pays the bill, Phil?

 

You have been offered an OD project to improve the information flow between management and employees in an unionized shop. The entire shop is unionized except for customer service reps which is an outsourced service. The union opposes the project. What are your alternatives?

This post includes a short article clarifying the relationship between OD in a unionized shop as well as a quiz!

By OD, I am not referring to training, outdoor training, personal coaching or anything else that masquerades as an OD effort, but rather to OD as a system intervention aimed to remove non tangible barriers to change.

The relationship is not all complex, as long as we keep our thinking straight and don’t inhale our own smoke. Let’s look a few axioms.

  • Management pays for OD efforts. That says a lot, does it not!?
  • Unions are legitimate, elected representatives of the employees. The unions represent the interests of the employees, and if the employees do not feel represented, they vote the Union out of office.
  • OD practitioners may feel that the Union should/could/must be represented or not be represented in OD activities. Yet, this is not for the OD practitioner  to comment on, because it gets him, or even her, involved in political intrigues between management and union, with management paying the bills.
  • OD as a profession is neither pro nor anti -Union. It is agnostic on this issue, however it is not perceived as such because our bills are paid by management, and we try to build trust and direct communication between management and employee, which may not be in the Union’s interest.

Now that I have put forward my axioms, here are a few tips.

  • Avoid becoming a player/mediator in any interaction between management and union.
  • Avoid commenting/addressing any controversy or disputes whose etiology is a political struggle.
  • Answer all questions that you may be asked with by a union representative with full honesty.
  • Think of each and every intervention you do as something which may have political ramifications, and then reconsider if you want to risk an entire project for one naïve move.
  • Introduction of technology, systems, AI and whatever are not agnostic in the power balance between union and management. Again, do not be naïve.
  • Now a comment to my American brethren: Since OD’s “traditional” values are so much aligned with democracy, remember that Union representatives are elected and management are appointed.

Quiz

Management is revamping the performance evaluation system and the union steward from the IT department calls you to ask how much “weight” be given to seniority. He asks to meet you. My answer: Meet with him/her along with a manager and provide your honest assessment.

 

You have been asked to lecture the software team on “Critical Success Factors of Team Work when working from Home”. Of the 50 team members, only 6 show up because the union has boycotted all OD and Training  due to management’s decision to cut benefits of staff who work from home. My answer: I would not give the lecture if it’s being boycotted, or girl-cotted.

You witnessed an incident where one employee cursed another using an ethic slur. There is pre-dismissal hearing and since you were the only witness, you have been asked to state what you heard. The curser was a member of the union. My answer: Of course I would not. I’m not internal. But I would informally leak what I heard, and leaked that I’ve leaked.

 

 

 

 

 

 

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Why is Organizational Development so rigid and out of step? Revised July 2023

 

As organizations have changed beyond recognition since OD was founded, the profession has not shown much resilience. OD practioners cling to outdated values, irrelevant tools, and outdated assumptions.  There are many reasons for this rigidity and in this short post, I want to point out what I believe to be the major barriers to change.

  • OD was a revolution. Revolutions become institutionalized. Prophets are replaced by priests; rebels are replaced by bureaucrats. The bureaucrats and the priests auger power and sanctify the revolution as “over”.
  • Many people who teach OD do not practice OD, except for lectures and guest appearances. Some have never had a long term client in their life. As opposed to a great legal mind who knows the law but has never been in court, or a philosopher whose very detachment from the everyday enables new perspectives, OD professors who have not spent years in the field are worse than useless; they promulgate an understanding of organizations as they existed more than half a century ago.
  • There have been very few innovators in the field of OD. The innovative brains of OD are in the field doing OD, practising OD, but not renewing it from positions of power from within the profession.
  • As organizations changed faster than OD, OD became more fundamentalist, much like the Amish, Hassidic Jewry or the Bible Bashers of the South. Believers blind themselves to a world that they do not accept, and sanctify the past. Maybe this is what religion is about, but not OD.

What needs to be done to expand the awareness and derivative skills of the OD professional? I have a few concrete suggestions:

  1. Work experience of 5 years in a real organization with a global configuration is a pre-requisite to studying OD. 
  2. Understanding the western bias of OD must be compulsory.
  3. Skills for practicing OD in hierarchal and face-valuing societies must be obligatory.
  4. Proficiency in a foreign language, my assumption being that that learning another language always expands cultural awareness.
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Get a new plan, Stan

“The answer is easy if you take it logically” Paul Simon

How has OD adapted itself to the changes in organizational configurations? Let’s take a look.

First I will spell out just a few ways that organizations have changed in the last few decades.

  1. Organizations sell things that do not exist, install half-cooked crap, and fix it constantly, until it works-and then sell an upgrade which is managed the same way.
  2. Most communication is not face to face.
  3. People who work together do not work in the same building; as a matter of fact, they work in different time zones and-lo and behold, may not share common values.
  4. Business travel is dead due to a plague impacting the globe.
  5. Nothing is predictable, most of all supply chain, stability of order flow, and relevancy of existing products.
  6. Service provision has been digitalized.
  7. ERP’s have produced brainlessness and the near death of personal ownership.

I would be very interested in knowing if and how OD has adapted to these changes?

Imho, it hasn’t-which is why there is so much standing on the shoulders of the tired and very dead founders. If you are interested in what needs to be done, most of the posts in this blog provide an answer. Start here. Then here. Now this.

After which, you can plough through my blog-and most of the changes that OD needs to adopt are spelt out.

 

 

 

 

 

 

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Examples of the radical changes needed to renew OD’s relevance

I emerged dejected from a cordial meeting of very smart people on OD’s relevance in face of the massive change and crisis we are all experiencing.

I felt at times like I was in a group of Latin speakers, discussing how to further inculcate the use of Latin in written passports and diplomacy.

Now I have way of being in people’s face and speaking my mind, but I did try to behave until I heard words like “permanency” and “awareness”. Thankfully, one colleague from Missouri noted that the language we used during the meeting was somewhat out of sync. I felt, “thank god I’m not alone”

I decided to try to be positive today about the whole matter. I am recovering from a 3rd corona shot (which is no easy task) and it’s so hot that I dare not venture outside except for taking George outside to “relieve” himself. So I pondered-“what can be done”.

What  OD needs to do now to become relevant. (like yesterday!)

  1. Speed as strategy; whatever we need to do, it needs to be fast. 
  2. Work with clients to ensure that expertise is well positioned and empowered, even if it means less emphasis on teamwork.
  3. Similar to other professions, we need to intervene in order to diagnose. “Take this pill, if it works, then your symptoms are depression. Install this software, and we’ll test it down the road”. Diagnose, intervene measure; freeze unfreeze-are irrelevant. Eg, X is incompetent. Outsource the capability NOW.
  4. Stop standing on the shoulders of the founding fathers. They are old, dead and partially irrelevant. Show respect by breaking with tradition, as they did.
  5. In the army, I learnt that OD is done best before a battle and after. So when necessary, mitigate overdosing on reflection, awareness and activities that hinder short term survival. Yes, short term.
  6. Political survival of key figures, aka-what’s in this for me, becomes a dominant theme in extreme crisis. Factor this into your understanding of what is/needs to be done.

 

 

 

 

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August Letter from Tel Aviv

It is about a five minute drive from my home to the clinic where I will get my third corona vaccine tomorrow. It’s scheduled for 17:52 ( 5.52 pm). Now that’s Israel for you-some things work (health services) and some things don’t; it will take me about an hour to find parking once I get to the clinic. There is no parking to be found-legal or illegal.

Of course I know that I am a guinea pig and I don’t give a shit. I would much rather risk a few side effects than risk choking to death. I know of very few people my age who will not get the shot. Except of course for those who have already died of something else.

Masks have now returned to style, albeit often worn on the chin. Wearing a mask in the summer heat is not at all comfortable, to say the very least. But as delta rips across the country, imported by cretins  who took  summer vacations in unsafe places, the mask is making a comeback. How much of a comeback? I’d say as frequent as is condom use.

Every night there is a short programming-spot (on channel 11) which tries to “make sense” of the corona data. After each broadcast, I am more convinced than ever that the experts remind me of the various specialists who treat back pain: “live with it”; “exercise less”, “exercise more”, “you have a curvature of the spine”; “try acupuncture”; “I can operate”, “look, you are 71, what do you expect?”. And of course “it’s in your mind”.

Consistency is lacking not only in corona data, but in public policy. The country club mandates that all people coming into the club have been vaccinated twice. But this does not apply to the staff. Or the kids. Or the contractors. Actually, it applies to no one. Or perhaps it applies to the specific person at the entrance. Alexi is on his cell phone and doesn’t care who comes in; Fatima is typing her thesis and doesn’t even look at who comes in. Perla does care, but she caves in to people who “will get vaccinated next week”. How did we ever win a war? 

Well, at least we have a saner government now. Except perhaps for the corona-is-not-a-danger Minister of Education who is a PhD and a woman, so criticism seems to be mild. After all, gender trumps competence in today’s dialogue. She also hails from a city way north on the Lebanese border, so she can’t be wrong. After all, she is not from Tel Aviv. 

Thankfully, we do have a very vibrant society and Israelis know how to suffer danger and live at the same time. That truly is an advantage we have over the Americans who have discovered that their society is not so great, and over the more smug European nations who are surprised that such a small country as Israel is coping far better than most places on the globe. Why? Because almost every Israeli has a post doctorate in “grin and bear it”.

 

 

 

 

 

 

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