The manager’s own insecurity can prevent them from letting go. Perhaps if one is new to a role, or has been given extra responsibilities there is a tendency to feel the need to demonstrate that everything is under control. This can result in micro-managing and some managers never move beyond this. Managers with a tendency to micro-manage employees can eventually perpetuate this situation because, over time, staff become conditioned to relinquish responsibility to their manager. In another blog I discussed how staff adapt to patterns of behaviour they observe in their boss.  This downward cycle of behaviour makes line reports increasing less accountable and in turn managers respond by feeling that they simply cannot then delegate with confidence.

Promoting accountability for their own performance amongst employees and encouraging achievement requires active, constant action by managers. The manager as coach is a very current concept and this style of management encourages involvement of staff in setting their own goals and objectives and so in turn increases ownership. This is especially so where employees have freedom to decide how they will achieve these – i.e. designing a strategy for accomplishing the task or project in hand.

As a coach manager therefore, the role includes sharing information on, for example, how the company is performing, what is happening in the wider operating environment, and from where opportunities and challenges arise so that employees’ awareness is raised, the boundaries are clear and the specific feedback helps them frame their plans and execution of their work. Providing such clarity and the freedom to generate new ideas and solutions helps support engagement AND ensures better alignment of effort. For managers the process of sharing and exchanging ideas also provides invaluable insight into how staff think, the information they draw upon, their values and how they relate to others and the organisation itself. By providing direction but not answers, employees’ confidence in their own knowledge, skills, experience and ability to take decisions grows.

The trade off between delegation as opposed to taking more and more on oneself is one between a perceived, if not real, increased risk of failure and this assumes a manager has greater competence, knowledge and experience.  This is not only unlikely but also undesirable.  The ability to take risks without punishment or blame is a critically important factor in engagement and in particular encouraging employees to willingly step up to the mark. It requires a culture supportive to recognise and accept that often from failure and criticism, we learn almost as much, if not more, than from our successes.

Through taking responsibility employees feel more valued and engaged with the business – they have more of a stake in it. Better engagement tends to reduce turnover and increase motivation. More ownership and focused effort on specific goals means managers are freed up to deal with the key results that they are employed to achieve. With everyone focused on the right level of activity and performance, better, more consistent business results – or in short a higher level of performance, is achieved.

Technology Presents Massive Opportunities and Threats

Technology and the digital age presents both massive opportunities and threats and therefore a huge dilemma for many established organisations and their leaders.  On the one hand it will impact on business as usual. What will it mean for customers and existing competitors, never mind those new competitors that we cannot yet see who will be enabled by it? And then there is the issue of our own employees. Technology is a relatively new and fast (the fastest?) growing sector in its own right.  That in itself is impacting upon the ability of many sectors and established organisations to recruit the kind of people they need to stay on top. It therefore has huge implications for how we do business, and it alters the whole competitive landscape, one which is changing at an ever quickening pace.

My interest has been growing for some time but this blog was prompted by a series of timely conversations and reading Brian Solis’s blog entitled “2012: The Year for Digital Darwinism”.  Charles Darwin famously shocked the established view in 1859 by publishing “On The Origin of Species” in which he provided his theory of evolution.  He explored five themes – I paraphrase and simplify these shamelessly here to make my later points:

• probability and chance (there is no plan set in stone as to how species evolve)
• selection (strongest and fittest survive)
• adaptation (we are descended from less biologically sophisticated creatures)
• the tempo and mode of change  (i.e. the rate at which change happens and what precipitates it)
• essentialism versus nominalism (the idea of change happening at the level of a species versus individual adaptation)

The “Digital Darwinism” referred to by Solis therefore refers to the increasing rate of change being precipitated by technological advances in the context of business.

Future Strategy

My question to business leaders is whether this seemingly inevitable trend is being a) acknowledged and b) built into the future strategy of established businesses and sectors.  New entrants to any sector can be easily seen to utilise technology to reduce their operating costs and increase their global reach making them at the same time much more profitable and “scalable”.

As an organisation design specialist with a background in marketing,  I frequently talk with business leaders about what performance really means, in the context of their business.   How do they achieve high performance through their staff?

For some performance is about growth and the ensuing strategies to achieve that (mergers, acquisitions, diversification), for another group it is “simply” about survival – so considerations around divesting, retrenching to core business activities, downsizing and outsourcing in order to be profitable and prepare for an uncertain future.  For this second group, the key to long term survival is recognising where future threats and opportunities will come from, and aligning the organisation (and hence people) to deal with these.

“…digital Darwinism threatens rigid and traditional practices everywhere. Regardless of industry, digital Darwinism is a phenomenon when technology and society evolve faster than the ability to adapt.   Indeed this is a time when organisations will invest in change to better adapt to emerging market opportunities, to more successfully engage with customers, employees and stakeholders, rethink systems and processes, and ultimately revive the company’s vision, mission and purpose. The result is an adaptive culture that signals an end to business as usual.”

 Brian Solis 20 January 2012

Wow! Did you catch that? – Essentially this short extract captures all the elements that I believe top executives should acknowledge as essential to high performance.  One aspect of an inevitable future – namely the inexorable rise in importance in technology in all our lives, will have a huge impact on organisations’ business models.  Failure to deal with this “threat” or “opportunity”, could therefore mean extinction.

Who’s Next?

In the same week we saw Kodak go to the wall, with its demise attributed to digital technology,  I was discussing the impact of legal reforms on traditional bricks and mortar based law firms.  So called “Tesco Law” is likely to lead to a number of new entrants to the UK market – Alternative Business Structures (ABS’s).  These ABS’s will be businesses owned by non lawyers with increased access to finance through the markets, to provide legal services.  Initially the commodity type aspects of law, like conveyancing and wills, seem the likely starting point as one can see these realistically being delivered through the web or phone, as customers do now with insurance products and banking.  This new breed of legal service will be able to cut their costs by employing non-lawyers, overseen by a trained legal person.  They won’t require the same large, city centre offices. They won’t necessarily offer the charge- by-the- hour services of a lawyer, they can automate and provide services 24/7 via the web and thereby increase their reach to many more customers, etc. etc.  Should the large law firms be worried? I think so. Are they? – I’m not sure.

As with any industry, well established ways of working and thinking can lead to a culture of rigidity and complacency.  I don’t only include some legal firms in this analysis; it has led to the obsolescence of many types of operation and working practices over the last thirty years and this trend will only accelerate, largely due to technology. One wonders who will be next?

This is a time for organisations to realise that remaining rigid and fixed in their current ways of working means potentially serious future threats.  Changing how organisations operate comes down to shifting the culture and this means being proactive in ensuring that leaders and employees alike, understand what the future means.

In a world where the brightest and the best were lured into the law, then financial services, by the prospect of fat salaries and large bonuses, the trends are that they are now flocking to technology firms like Amazon and Google, who are amongst the fastest growing global companies. The new language of commerce is programming languages where writing your own app, game or software programme is like writing your own ticket to success.

Determining a strategy to meet these challenges successfully (i.e. performing) means truly understanding the context and reality of what is coming.

Are your current generation of leaders up to that task?

It means checking the vision, mission and values in the light of the current reality as well as maintaining heightened awareness as to whether employees are aligned AND engaged with them.

Now is the right time to review strategies, develop and implement methods that prepare employees for the changes they will inevitably have to make. Indeed, in many organisations, staff may well be well ahead of you.  In short it is a time for engagement at all levels – with customers, stakeholders and shareholders, leaders and employees.  It is a time for alignment – internally and to the external environment.

Liz Moody