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Competition or Co-operation? Collaborate & Co-operate to build and not to destroy.

February 19, 2014 1 comment

Competition – or Cooperation? When companies merge, or when one company acquires another, the aim is to integrate the two into one unified entity as quickly as possible.

The problem is that often, this doesn’t happen. There is competition, resentment and rivalry and the two fail to unite. The problem is how to prevent this so that there is a successful integration of the employees of the two companies so that they take pride in the new merged company.

Rabbi Jonathan Sacks suggests that the Bible gives a way forward when he discusses what happened after the Israelites built the Golden Calf in the Sinai desert. They were given a task – to build a tabernacle to pray to God. Moses asks the Israelites to make voluntary contributions to the construction of the Tabernacle – the Sanctuary. They do so with such generosity that Moses has to order them to stop.

If you want to bond human beings so that they act for the common good, get them to build something together. Get them to undertake a task that they can only achieve together, that none can do alone.

The power of this principle was demonstrated in a famous social-scientific research exercise carried out in 1954 by Muzafer Sherif and others from the University of Oklahoma, known as the Robbers’ Cave experiment. Sherif wanted to understand the dynamics of group conflict and prejudice. To do so, he and his fellow researchers selected a group of 22 white, eleven-year-old boys, none of whom had met one another before. They were taken to a remote summer camp in Robbers Cave State Park, Oklahoma. They were randomly allocated into two groups.

Initially neither group knew of the existence of the other. They were staying in cabins far apart. The first week was dedicated to team-building. The boys hiked and swam together. Each group chose a name for itself – they became The Eagles and the Rattlers. They stencilled the names on their shirts and flags.

Then, for four days they were introduced to one another through a series of competitions. There were trophies, medals and prizes for the winners, and nothing for the losers. Almost immediately there was tension between them: name-calling, teasing, and derogatory songs. It got worse. Each burned the other’s flag and raided their cabins. They objected to eating together with the others in the same dining hall.

Stage 3 was called the ‘integration phase’. Meetings were arranged. The two groups watched films together. They lit Fourth-of-July firecrackers together. The hope was that these face-to-face encounters would lessen tensions and lead to reconciliation. They didn’t. Several broke up with the children throwing food at one another.

In stage 4, the researchers arranged situations in which a problem arose that threatened both groups simultaneously. The first was a blockage in the supply of drinking water to the camp. The two groups identified the problem separately and gathered at the point where the blockage had occurred. They worked together to remove it, and celebrated together when they succeeded.

The lessons for companies trying to work together should be obvious – integration isn’t through words but actions, collaboration and co-operation. It’s NOT through conflict or continuing the “us” and “them” approaches often seen.

In another, both groups voted to watch some films. The researchers explained that the films would cost money to hire, and there was not enough in camp funds to do so. Both groups agreed to contribute an equal share to the cost. In a third, the coach on which they were travelling stalled, and the boys had to work together to push it. By the time the trials were over, the boys had stopped having negative images of the other side. On the final bus ride home, the members of one team used their prize money to buy drinks for everyone.

Similar outcomes have emerged from other studies. The conclusion is revolutionary. You can turn even hostile factions into a single cohesive group so long as they are faced with a shared challenge that all can achieve together but none can do alone.

The point is obvious. In order to integrate two groups together – whether they are companies, teams, departments or any other collection of people – you need to encourage not just co-operation with motivational words, but also set in place collaboration that involves both groups sharing and building together.

When mergers & acquisitions fail it is often because the two parts don’t behave as one. The Robber’s Cave experiment gives an explanation on why this is – and more importantly, how to correct it.

Pluralistic Ignorance

May 13, 2013 Leave a comment

How often have you heard something – and not questioned it, as you don’t want to appear stupid, foolish or ignorant?

Too often people accept what they are told and don’t question information. In educational environments this leads to a failure to learn. In business environments, it leads to bad decisions and bad strategy. Received wisdom becomes the operating principle rather than reality – especially when things have changed or are changing.

The reason people don’t question is that they don’t want to look foolish in front of peers, bosses or employees. Rather than highlight something that doesn’t make sense, they prefer to keep quiet so as not to appear stupid. The term for this is “pluralistic ignorance“. It is especially a problem in cultures where “losing face” is an issue. (I wrote about this almost two years ago -see  Competitive Intelligence & Culture). In such cultures, employees find it difficult to question superiors – there is almost a belief that superiors are in their position as they know more and are better.

Pluralistic Ignorance” is a phenomenon that prevents people questioning, when they fail to understand something or when they disagree with an issue, because they feel that they are the only ones not understanding or agreeing. It leads to “group-think” whereby a group of people fail to face up to their lack of knowledge or address false/inaccurate information because they don’t wish to appear foolish by questioning it.

In business it is important to emphasise communication and openness at all levels – and encourage questioning. This is especially key for effective competitive intelligence, but can be just as much a problem in CI as in other corporate areas if CI people aren’t looking out for it. For example, in CI there is the risk that a key piece of intelligence is missed because the person (perhaps a sales rep) doesn’t pass it on. They are sure that the CI team will already know this / that senior management is sure to know this – and so they don’t want to look stupid by passing it on.

The solution appears easy – build a corporate culture that rewards those who share information, even if it is already known. The difficulty is that such openness often contradicts other aspects of the corporation including hierarchical aspects – where one needs to address chains of command to pass on information. This leads to problems where the person at the bottom passes on information to their superior. This person then qualifies the information (exaggerating good news and softening bad news) when they pass it up – and by the time it reaches the actual decision-maker the information has been so transformed as to become meaningless and often false.

An example of how pluralistic ignorance works can be seen in this video of a college lecture. This brief (5 minute) video is the first in a course on behavioural economics. The lecturer, Dan Ariely of Duke University Business School (and TED speaker), is aware of the problem and halfway through this lecture shows how it works.

https://www.youtube.com/watch?v=-9wHttUayMo

Testing perceptions – Myers-Briggs and false appearances

February 25, 2013 Leave a comment

Every morning at around 7.45am, BBC Radio 4 includes a short talk from a religious figure giving listeners a thought to ponder. The daily “Thought for the Day” is given by Christian priests and vicars, Rabbis, Imans and others.

The Last Supper

The Last Supper
(Hans Holbein the Younger, 1524)

This morning’s programme (25 February 2013) featured  Dr Giles Fraser, priest-in-charge of St Mary’s, Newington. Fraser spoke about Jesus and pointed out that the Western World’s perceptions on what he looked like are likely to be wrong. He referred to classical paintings of Jesus and contrasted these to  Judas. Jesus is often blonde while Judas tends to be much more swarthy looking with a longer nose and red or dark hair. Jesus has become an archetypical North European, while Judas reflects stereotypes on how Jews are supposed to look. Of course Jesus was Jewish – and was born and lived in what is now Israel. So did Judas. Both would have had Semitic physiognomies – as both were Jewish.

Fraser’s point however has further implications. There is a tendency to put our own preconceptions and views onto others – and expect others to behave and think like we do. In a business context, this can be fatal as it means we see competitors as just reflections of ourselves. When a competitor comes up with something that appears odd, or that we don’t understand, the inclination is to say that the competitor has it wrong – rather than that we have it wrong, which could just as easily be the situation. This error is a classic type of blind spot.

Myers-Briggs Type Indicators

One part in Fraser’s short talk caught my attention. While he was studying to become a priest, he was taught about Myers-Briggs Type Indicators based on work by Carl Jung.  Fraser commented that both he and his fellow trainee priests were asked to assess the personality type of Jesus based on what they knew and had learned about him. They were then assessed using the Myers-Briggs test. Most found that the personality type they had given to Jesus was actually a reflection of their own type.

The implications for this are that people have a tendency to assign their own expectations and prejudices onto others – and judge them accordingly.

Myers-Briggs test form

The Jungian Briggs Myers 16-Types Personality Test (JBM16) is designed to measure how you like to look at the world and make decisions.

In business recruitment, this can mean choosing a candidate who, rather than bring something fresh to the business, just continues the same old approach. Although this may avoid conflict, it also means that the chance for new, innovative thinking and an ability to change or challenge current norms is also lost. There is a real risk that recruiting clones may lead to the business stultifying and failing to recognise new opportunities and threats.

In research interviewing any attempt to profile an individual remotely is just foolhardy and a key source for interviewer bias, resulting in flawed interviews and erroneous conclusions riddled with misconceptions. Yet there are interviewers who claim to be so expert at such psychometric evaluations that they can assess an interviewee within minutes even though the published tests for Myers Briggs involve dozens of questions  that need to be answered before an assessment can be made.

In business analysis it can lead to a potentially more serious problem. Some analysts pride themselves on their ability to identify the personality type of business or political leaders, without meeting them and with minimal information. Unless there is a vast quantity of information available on another individual – speeches, TV and radio interviews, published articles and opinion pieces, etc. it is risky to extrapolate about another individual and anticipate their behaviour remotely. The danger is that the analyst may project their own typology onto the leader – judging them by reported actions without necessarily understanding the thought processes that lay behind those actions or even the accuracy of the reporting. The risk is that any assessment will be based on prejudices – rather than reality, and so lead to poor decisions.

Business research and analysis should depend on accurate and rigorous methodologies, and not pop-psychology. Myers-Briggs can be useful when backed up by sufficient data. It should be viewed as an analysis tool requiring detailed insight into the subject. Using these, and other similar psychometric approaches, as a basis for complex business decision-making without the full data as demanded by the process is another route to business failure, so treat with care, and treat advocates of these tools even more carefully.

Myers Briggs personality types

Great service leads to growth & profits – for Bettys, it’s a piece of cake!

July 9, 2012 1 comment

I recently visited a friend in Leeds – a major city in the North of England. On the Sunday, a group of us travelled the short distance from Leeds to Harrogate, a few miles away. Harrogate is a spa town – you can walk past the “Royal Pump Room” museum  and still smell the sulphur from the spring below. This is just one of several mineral wells containing iron, sulphur and other chemicals that made the town an attraction in the Victorian and earlier Georgian eras.

As well as the spa, Harrogate also features the first Bettys Tea room.

Bettys Tea Room

Bettys was founded in 1919 and has since grown to include a number of other tea rooms across Yorkshire. The family run company now also includes  Taylors of Harrogate, the tea and coffee merchants with brands including the best-selling Yorkshire Tea.

Our visit to Harrogate included a visit to Bettys for morning tea and cakes. We were amazed at the level of service provided.

One friend asked about the orange juice on the menu. “Was it freshly squeezed?” Instead of just acknowledging that it was, we were told that it had been – but not that day, but on the Friday, as it was squeezed off-site and not at weekends. We asked about the ingredients of one of the cream cakes – was it made with butter or margarine and was it suitable for vegetarians? The waitress wasn’t sure – so said she would check in the ingredient listings. It turned out that it was made using butter and was fully vegetarian.  It tasted superb.

I watched our waitress (on the bill it said her name was Jade) – and others. They smiled, they conversed, were friendly, helpful, and their body language showed a real care and attention to each customer.  They knew their products – and if they weren’t sure they didn’t lie or guess, but went to check. The service was impeccable.

It turns out that the superb service is no accident. I asked whether there was any training provided – and was told that each waitress had one-to-one training before starting, and they were expected to learn the menu and were tested. They had an induction phase where they were watched and it took some time before they could graduate to become a full waitress. This training showed – it wasn’t just in product knowledge but also in the whole interaction with the customer, that made our visit such a pleasure. Bettys even has a dedicated website devoted to working for the company at www.workingforus.co.uk.

The results of this focus on excellence show in Bettys financial results. The company consistently makes a profit – and turnover and net worth has grown impressively over the last 5 years. This is despite one of the worst downturns for decades – showing that Bettys has come up with a strategy that seems recession proof. Although profits have not shown the same growth, they’ve remained stable – perhaps reflecting the value offered by the company, compared to competitors. (We paid more for our sub-standard tea on the self-service motorway café journeying up to Leeds).

Bettys shows how important service is for a business, and how appropriate training can lead to top-quality results, and evident staff satisfaction. (In 2007 Bettys was listed in “the 100 best companies to work for” compiled by The Sunday Times). This focus on quality, in the product as well as the product knowledge, attention to detail and customer focus can translate to the bottom-line result – and lead to turnover growth and profits.
Queue outside Bettys, Harrogate
The queues outside, waiting to get into the Tea room is evidence that Bettys is doing something right. The results – financial and reputational are too. It may look like a piece of cake to achieve this – but the numbers of companies that fail to provide adequate service shows that it isn’t. Maybe they should make a visit to Harrogate part of their own staff training!

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