Implementing Change, Part 2: Recognizing our Human Nature

In Implementing Change, Part 1: With More Predictability Than the Weather, I discussed how reflecting on your own reactions to feeling out of control in relation to the weather is helpful in gaining empathy towards employees who often feel like the changes in their organization are as unpredictable as the weather.

As humans, we respond to our environments, whether it’s meteorological climate or to our organizational climate. There is research and a model that reminds us that we as humans respond to our environments in the same ways that we might only think of other animals responding–even in organizational settings. For example, we are grounded in our innate tendency to monitor our environment for threats and rewards and to then take action to avoid threats and move towards rewards. This circuitry and these impulses in our brains impact our relationships with others and more broadly how we interact with our environment and ultimately make decisions.

The SCARF model (developed by David Rock) highlights the importance of looking at these basic human instincts when trying to understand social interactions.

It is crucial to look at our sense of status, certainty, autonomy, relatedness, and fairness.

  • Status: Our relative importance to others
  • Certainty: Our being able to predict the future
  • Autonomy: Our sense of control over events
  • Relatedness: Our sense of safety with others
  • Fairness: Our perception of fair exchanges between people

These feelings are at play in our life, and definitely at work when we think about how people experience their relationships with others in organizations. For example, my sense of autonomy (my sense of being able to control events) is exactly where I feel challenged when I cannot stop the oncoming winter and changing seasons in the outside world. I bet you could think of tons of examples within your own organization when your sense of autonomy was challenged; this is an often felt sentiment in organizations going through change. Similarly, my sense of certainty (being able to predict the future) is challenged from the weather when I don’t know if my flight will be canceled due to snowstorms, or if my much anticipated picnic in the park will have to be rescheduled; this sense of “not knowing” is also all too common in organizations when impactful changes are announced at random.

In organizations, it is crucial for leaders not to forget our humanity and to always try to address such needs as our needs for certainty and autonomy. This is even more critical when an organization is going through change. It’s important to be constantly asking:

  • How can we implement changes that allow people to have the most control in the process and a greater say in the change?
  • How can we be clearer about upcoming events and changes so that people know what to expect as much as we are able to predict?
  • How do we communicate this out in a way that respects people’s needs for certainty and autonomy?

The more we can support people’s needs rather than leaving them ‘out in the cold’ feeling a lack of autonomy and certainty, the less likely they will shut down due to a threat response. The more we can give people a sense of autonomy and certainty in their work, the more likely they will be able to have positive relationships with others and be productive in their organization.

Forbes: Culture – The Most Overlooked Element of Company Culture Audits

Culture is defined as “a way of thinking, behaving, or working that exists in a place or organization (such as a business).” Essentially, it’s the core of your business — so why wouldn’t you include it in your company’s audit?

Your company culture drives all the decisions you make and the communication processes you use. Including culture in your audit allows you to take a closer look at what could use some revamping and how you might increase productivity for your business as a whole.

In this article, Chris Cancialosi discusses the value of auditing company culture and explains why it’s often overlooked as a key component of what makes — or breaks — a business.

Implementing Change, Part 1: With More Predictability than the Weather

If you’re like me in that you wish every day was summer, but you happen to live in a place that too soon will be covered with snow, you might be feeling some anticipatory blues. Yes, there are still many months (hopefully) until we need to pull out our hats and gloves (see my previous post about putting them away!) But, just the occasional chill in the air and the noticeably shorter days reminds me where we are headed–and that’s a long, cold winter.

In my work in organizational change and my desire to understand how people react to change and handle transitions, I often find it helpful to reflect on my personal reactions towards changes in the weather. Understanding my own feelings of anticipation and loss as the seasons cycle allows me greater empathy towards individuals in organizations where they experience changes that are also seemingly not under their control.

Organizations are their own world and the people within them often are at the whim of the leadership or the marketplace–feeling as vulnerable as we do when the seasons change. And, while we as humans have mastered indoor heating and air conditioning to protect us from the elements, all we need is a week of rain to remind us of how much we need sunshine or a debilitating blizzard to reinforce our lack of control. Even just feeling the temperature drop, watching the leaves fall, and noticing the days getting shorter reminds us that there are greater forces at work, and that we must adapt i.e. wear a jacket, or find ourselves cold.

Whether people in organizations are facing the natural ebbs and flows of organization life i.e. the yearly busy tax season or the arrival of the latest wave of new hires or are experiencing much larger disruptions such as a merger, new leadership or new systems and processes, the resulting feelings are similar and stem from a sense of lack of control.

Recognizing that people within organizations often feel at the whim of the organizations and have a lack of control, is an important data point to consider when designing any sort of organizational change. The more you can minimize this lack of control the better. Engaging people in the process, frequently communicating, and making the process as predictable as far out in advance as possible, supports people in feeling more of a sense of control and predictability.

Our nature as humans is a huge part of how we react to changes and transition in our environments. Stay tuned for Part 2: Implementing Change That Recognizes Our Human Nature where I describe a bit more specifically a model that addresses some of the key feelings we feel as humans within organizations. I also list some questions you should ask yourself during the change process in order to make sure you are considering the human needs of your employees.

Forbes: Four Reasons Social Capital Trumps All

We’ve all heard (or said) the phrase, “it’s not what you know but who you know.” And, entrepreneurs really shouldn’t take that casually. Because, your connections really can make a difference in whether your company just gets by or truly thrives.

This may still be a new concept for some, so take note. While financial and human capital continue to be important for your company, social capital can potentially gain your business the most benefits of all.

In this article, Chris Cancialosi shares four reasons why social capital is the most important for entrepreneurial success, and reveals how to make social capital work for you.

Forbes: Cross-Training As The Best Defense Against Indispensable Employees

If one team member is unable to get his work done, another should be prepared to step up. So, consider cross-training as your best defense for unforeseen circumstances or relying too much on a sole employee. Not only is this level of strategic planning beneficial for organizational purposes, but it can also help the inner workings of your business. From increased sustainability to efficiency, cross-training ensures that your company — and its employees — will be able to handle whatever challenges may come its way.

If you’re not cross-training your employees, Chris suggests in this article that it may be time to start.

Change Culture From Within

The conversation about a company’s culture, and the effects on productivity, satisfaction and overall success, is a widely popular one. In this Employment Notebook podcast , Chris Cancialosi talks with Tim Muma about strategies for changing that culture from within, instead of waiting for management to make adjustments. As Chris notes: “everyone has the capability to improve a company’s culture from the inside.”

Forbes: How to Communicate Change

When Microsoft announced it was laying off 12,500 employees in a 1,100-word email, it inadvertently sparked a discussion on company communication. How can business leaders effectively communicate company changes to their staff? What is the protocol?

Big or small, changes are changes, and they need to be reported to employees accordingly. By approaching discussions with factors like timeliness in mind, leaders can have more success in talking with their teams.

In this article, and with added insight from Jenny Dervin, the former Vice President of Corporate Communications for JetBlue, Chris Cancialosi outlines three lessons to be learned from Microsoft’s recent layoff.

Moving Toward a Code of Ethics for Data

In my previous post, I talked about the status of Big Data.  In this post, I’d like to discuss some of the ethical issues we’re facing in the data world.

We are at an interesting crossroads between data and culture.  Today, we have the ability to collect and analyze large amounts of data (much of it from social media) but our increased use of data is changing how we view concepts such as privacy and confidentiality.  In light of the NSA Surveillance debate and a recent thought experiment from Facebook, people are beginning to question the boundaries between acceptable and not acceptable use of personal data.

This is more of a question of ethics than anything else, but it will likely become an integral aspect of how companies engage consumers and define their brand and image. In this new environment, some of the challenges businesses and consumers face include:

  1. The nature of private vs. public information: What does privacy actually consist of when we are all connected through social networks?
  2. The confidentiality vs. profitability of information: Is data kept “in-house” or is it sold for use by other businesses?
  3. The use of analytics to serve the customer vs. “manipulate” the customer: Are analytics used to better understand customer preferences or to subtly sway the customer and restrict their choices?

It doesn’t take long to realize that there is a fine line that separates these areas.  In many cases, the distinction is blurred and hashing out the details will require a broader social conversation that weighs the costs (in terms of privacy) with the benefits (in terms of improved customer service) of our growing reliance on analytics.  On the one hand, there is uncertainty surrounding how our data and information is used, while on the other hand, we gain the ability to more precisely fulfill consumer needs and even improve more fundamental factors such as the safety and reliability of the products we purchase.

These are key questions organizations need to ask, especially with regard to how they define their mission to customers.  They also have implications for how an organization is perceived publicly and the type of culture they embrace internally (see Chris Cancialosi’s article on establishing a Leadership Brand).  When launching a new data-driven initiative (whether Big Data or conventional), there are several questions to consider:

  1. Could it cause significant distress to a customer by revealing potentially embarrassing or unwanted information?
  2. Are you trying to understand a customer or strongly steer their behavior?  Does it sound eerily similar to something out of 1984 or Brave New World?
  3. How secure is the data from potential hackers?  What are the associated risks?
  4. What is the problem this initiative will solve?  What is the method to acquire the data, and how is it better than other options?

These are complicated questions that won’t be answered any time soon and there are a number of different perspectives on what needs to happen (see herehere, and here for some examples).  At the end of the day, the key question is one of tolerance: how much “privacy” are consumers willing to give up for the benefits data provides (see my post for an example of this trade-off)?  This will be different for each person, so it is important for consumers and organizations to become educated in understanding how data is used, weigh the costs and the benefits, and make informed choices.

Five Ways To Change Your Company Culture

Free donuts can only accomplish so much. Sure, they’re tasty, and the sugar rush can help you make it through the next 30 minutes, but are they really boosting company culture or just your blood sugar?

If you want to see a real difference in your company, you don’t have to wait for your CEO or department head to introduce the next great idea. You have the power to initiate changes to boost your fellow employees’ motivation and your company’s bottom line.

Designing Leadership Development for Organizational Impact

Data. Metrics. Impact. Evaluation.

These key words are only becoming more dominant in organizational life as we have increased our capacity to collect, process and analyze larger amounts of data. But what are we really measuring? Often times, when we think about program evaluation, especially leadership development programs, we ask people if they liked the program and if they learned something useful and call it a day. What we forget is that just liking a program or learning something does not always translate into organizational impact.

And in fact, participants might even say they didn’t like a particular experience, but at the same time, it was one of the most transformative experiences that they have ever had. Additionally, when we think about impactful learning, we often think about the importance of inducing a bit of “productive discomfort” in the participant as a means of creating a transformational learning experience. This also might not be ranked so highly on the smiley scale. Clearly, measuring impact is important, but measuring impact only from participants’ on-the-spot evaluations falls short.

Just as connection to mission, intentionality, and advanced stakeholder alignment are crucial to designing and evaluating any initiative, they are also critical when designing and evaluating leadership development initiatives in a way that has a clear, measurable impact. Thus, it is crucial to intentionally engage all of the key stakeholders early in the process of designing the leadership development program and create metrics of success together.

As key stakeholders, participants should also be included in the process of designing metrics because they will be the ones doing the learning. Additionally, if they understand and are involved in designing their own goals for the leadership development experience it will be that much more powerful.

And of course, these metrics of success should be tied to organizational mission or bottom line results, or else why is the organization spending resources on it? For example, one measure of impact could be that at least 90% of participants will receive higher rankings from their direct reports in their next 6-month 360 in a pre-determined aspect of leadership that has been deemed crucial to organizational success (tied to mission or bottom line).

Knowing and agreeing upon these metrics from the beginning creates more opportunity for having broader organizational impact because the starting point of reference is grounded in organizational impact rather than creating a positive individual experience. While measuring organizational impact of leadership development initiatives might be more of an art than a science, this challenge is no excuse not to try to think in terms of impact and metrics.