Tag: change

7/8/12 “Second Company”

Good day, team.

This week’s challenge comes from the Harvard Business Review blog. It is written by Grant McKracken, a research affiliate at MIT and author of “Chief Culture Officer” and “Culturematic.”

In his blog post “Every Company Should Build a Second Corporation,” from Friday July 6, McKracken suggests that while companies need to keep doing what they’re doing to win business and be successful, they also need to create a second company that is always looking at worlds that may be in the future and designing ways to best survive different scenarios. It’s like having a scout who’s out in front of you always looking for the best path ahead.

Here’s the post in its entirety:

“All winners lose. The market leader is a dead man walking. The incumbent is cursed with inevitable failure. That seems to be the prevailing sentiment among many in the investment and journalism worlds: The smart money, they argue, bets against the incumbent. Their surmise: The world will change. The reigning corporation will fail to adjust. The right thing to do? Short them (assume that their share price will fall). Short the winners. Bet against those who flourish. Because all winners must lose, and sooner than we think.

“I have heard this argument before, but for the first time I am hearing it argued as something unobjectionably and manifestly true. At some point in the past 10 years, ‘short the incumbent’ had gone from being a daring proposition to received wisdom. There is evidence, to be sure. Of the top 25 corporations listed in Fortune in 2000, only 12 were still there in 2010. Let’s put this another way: In the decade between 2000 to 2010, half the winners lost.

“And the structural factors are clear enough. The world is changing more quickly. Black swans are multiplying. Disruption is everywhere. The incumbent can end up failing dazed and confused.

“Success makes the corporation believe it has got things right. So change feels like self-betrayal. The competition forces a new business model. So change feels like a tumult. The new market often forces a move from a premium price position to a commodity one. So change feels like a giveaway. Adapting to change feels just plain wrong.

“But the market has spoken. It’s telling us we have a systematic problem. It’s time for a systematic solution. We cannot nickel and dime our way out of this one. We need a big, bold answer. Assuming, that is, that we want to escape the curse of the incumbent.

“My version of this answer — and I am sure there are others — is to build a second corporation and wrap it around the first. So now we have two. The first corporation is defined pretty much as it is now. And the second corporation is another creature altogether, with a different set of principles and processes.

“The first corporation exists to win. It exists to find, extract and capture available value. Leave this just as it is. But let’s acknowledge that this first corporation exposes us to risk. After all, it is designed to work with the world as it is. So it must be out of alignment with the worlds that may be. It makes us a prisoner of the moment. The second corporation is looking for those worlds that may be. Its task is not to win but survive.

“It’s counter-intuitive and I can hear you arguing: ‘Winning, surviving, this is a distinction without a difference!’ But look at it this way. If winning (and the first corporation) were enough, we wouldn’t see half the winners on the top of Fortune 500 fall like Icarus. If winning were enough, surviving would take care of itself. But it turns out, winning and surviving are different things. They take different mindsets. They take a different set of systems and instincts.

“Just to be crystal clear, I’m not saying that the corporation should stop struggling to win. It should keep hiring the best people, finding the best partners, devising the best strategies, squeezing out costs, innovating faster and smarter, clobbering the competition, etc. Winning is the deepest part of its DNA.

“I am merely saying that now that the incumbency comes with a curse, now that the smart money is betting against us, now that our death is nigh, we need something more. We need an exterior that is vigilant, experimental, assumption hunting. We need a bridge from which to spot those black swans. We need a way to prepare for worlds that are implausible.

“Everyone knows that we live in a world of tremendous change. But our response has been what Andy Grove calls ‘building a better firehouse.’ We are committing to getting faster and more agile. But there’s an absolute limit to how fast we can get. Many corporations run pretty good firehouses as it is. They can’t get a lot faster. The world doesn’t care. It’s going to get much, much faster. Time to rebuild the firehouse. Time to rethink firefighting.

“Indulge me a different metaphor. As the world gets more turbulent, the organization gets harder to ‘fly.’ What used to be simple acts of navigation now have a lot of guesswork. Simple acts of decision-making are no longer straightforward. Once as easy to fly as a 747 in light chop, the corporation can now feel like a Piper Cub in high winds. There are moments when the instruments go out and decision-making takes on a ‘hope and prayer’ quality. We are pretty sure those lights on the port side are Baltimore. Because, well, they could be Cuba.

“Now that the smart money assumes our demise, we need a system to ensure our survival. We need something that looks less like improv and more like engineering. We need a second corporation.”

Your challenge this week is to explore ways to be nimble and quick in the face of an ever-changing world. Maybe your processes are currently working, but if one part of your customer base suddenly changed, would you be able to stay on top of servicing them? How about creating a team of people within your organization who’s sole focus is on scenario planning — that is, creating strategic plans for a variety of possible outcomes? If you’re currently working on a team, what would it look like if your team got caught in firefight mode? Would it survive? And what can you do to help the team create the kind of skills that expert firefighters need to have?

As McKracken says, “We need a way to prepare for worlds that are implausible.” This week, try thinking outside the box and look at your job, your company and your team from a completely different perspective. What would it look like if the world changed?

Have a good week!

Kathleen

Kathleen Doyle-White

Pathfinder’s Coaching

(503) 296-9249

Note: Many thanks to my coaching associate Kate Dwyer for sending me this article. It’s just one more way that she’s helping me take a more expanded view of my business.

© Copyright 2012 Pathfinders Coaching, Scout Search Inc., all rights reserved.

4/25/11 “Ceremony and Celebration”

Good day, team.

Maybe it’s the upcoming marriage of the future King of England or the emerging buds on our lilac bushes, but this week, I am reminded of the importance of celebration, ceremony and new beginnings. Spring and summer are the time of year when the ceremony of marriage often takes place, and we most often experience new beginnings. We mark the new beginning for the bride and groom by creating an event that sanctifies and celebrates their union. Many other types of ceremonies mark some aspect of change in our lives, and this week’s challenge is about taking the time to acknowledge them.

We often think of change as just one thing, but it is, in fact, three things: an ending, a transition and a beginning. When something comes to end, we need to release it. Then there’s a period of transition that is often disorienting and scary because we’re not sure what we’re moving toward. Eventually, a new beginning occurs. This happens with the budding of the leaves on the trees; it happens with the rising of the sun each day; it happens to us as we move into new phases of our lives. How do we acknowledge these changes and, in particular, the events that significantly impact our lives?

Since the beginning of the year, we’ve seen so many powerful events: the uprisings in Egypt and other countries in the Middle East, the earthquake and tsunami in Japan, the recent tornadoes in the Midwest — all of these events have created enormous changes in the way people live their lives. It’s easy to concentrate on the tragedies that occur in these times of change, but what about the new beginnings they create? Last evening, I watched a short film about a Japanese man who has rebuilt a small hut for his family to live in after losing everything in the tsunami. Having just finished the front door of his new home, he had his family join him inside. They gathered around him as he lit a candle and placed it in the middle of the floor and prayed to the Buddha. He expressed his gratitude for having a roof over his head and a family that was still alive and well. I was moved by his courage and appreciation in the midst of such a meager beginning.

Big life events force lots of readjustment. In each case, it is important to acknowledge the end of one way of life and embrace a new way. Celebrating or creating a ceremony for these events seems appropriate and also very helpful to the people experiencing the greatest change.

We also can celebrate our good fortune. Most companies have rewards and recognition programs that give teams the opportunity to celebrate their successes, often with a ceremony or some type of ritual to honor those who have gone above and beyond their normal work requirements to contribute significantly to the success of the business and their team. The importance of these events has been proven time after time in studies of team dynamics and motivation. People love to be recognized for doing a good job and taking the time to celebrate their success goes a long way toward continuing to motivate them.

Your challenge this week is to acknowledge the changes that have occurred in your life recently and to create some form of celebration or ceremony as you move from one part of the change to another. We often think of celebrating as involving many people, but these rituals can be quite small and intimate. Perhaps you can light a candle for someone who has recently died and take a few moments to contemplate his or her passing. Maybe you are close to a person who has had a baby or is sending a son or daughter off to college for the first time. Maybe you could take someone who’s recently changed jobs out to lunch to celebrate the new venture. These events deserve some form of acknowledgment that helps the people who are most affected move from what used to be to what is now. In your workplace, see if you have rightfully acknowledged your team members recently. Have you taken the time to celebrate their successes and to thank them publicly for doing such a good job?

Life often asks us to make a rite of passage. Our ability to do this is much more meaningful when we share in ceremony or celebration with others as we move toward a new beginning.

Have a great week!

Kathleen

Kathleen Doyle-White

Pathfinders Coaching

(503) 296-9249

© Copyright 2011 Pathfinders Coaching, Scout Search Inc., all rights reserved.

Coach’s challenge for 9/13/10 “Time”

Good day, team,

As I sat gazing out the window this morning, coffee in hand, I noticed the twins who live across the street heading out for their first day of school. When we moved into this house seven years ago, these girls were toddlers. Now, here they were, looking so grown up, one dressed in a cute plaid skirt, knee highs and sneakers (do we still call them that?), the other in jeans, bright pink boots and a jacket that had a big “C” sewn on the back. (The “C” stands for Cordelia, and her twin’s name is Hortense. Unusual names, but, I think, very distinguished!) How happy and hopeful they looked as they moved forward toward another year of experiences, friends, learning and activities!

What struck me most as they passed by my window was the passage of time, which is the subject of this week’s challenge. Marcus Aurelius wrote, “Time is a sort of river of passing events, and strong is its current; no sooner is a thing brought to sight than it is swept by and another takes its place, and this too will be swept away.” I pondered this quote as I watched the twins walk to the bus on the corner. In seven years, these two have grown up to be young girls; where have I been all of this time?

I’ve noticed that people who raise children tend to have a better sense of the passage of time than people who don’t. Children change so fast and so drastically, from week to week when they’re infants, from month to month when they’re toddlers, from year to year in their first decade. In contrast, the passage of 10 years for someone without children may seem to be a time when he or she doesn’t seem to change very much. But growing children demand very different kinds of attention and care as each year goes by, and parents are continually amazed at how quickly they grow in such a short time.

The value of this observation for me is to see how much I’ve changed over the years and to not take it for granted. One of the blind spots in most human beings is our inability to observe ourselves. We look in the mirror and see the same person, day after day, year after year. Often it isn’t until you notice the first grey hairs, or see wrinkles that don’t go away, or take twice as long to heal from a cold, that you begin to realize you’re actually getting older! With this realization, there’s often the accompanying thought: “What have I done with my life? Have I been wasting my time? What happened to the last 10 years? They went by in a blink!”

This week, take a good, long look at yourself and see how you’ve changed. Perhaps age has brought you more understanding, or a more even-tempered disposition, or some patience you didn’t have a few years back. Maybe you’re in a completely different job or family situation or residence than you were five years ago. How have you adapted to these changes over the years? I think it takes consistent effort and a positive attitude to make our way though this life with a small bit of success and happiness as the result. Taking all that for granted doesn’t give us the opportunity to clearly see what we have become.

We give value to the time we have by using it wisely, and we also give value to ourselves. I like to think of it as putting gold coins in jars. How many gold coins have I put in the family jar today? Or the job jar? Or the exercise jar? Or the television jar? Do I spend my time (my gold coins) wisely, or does time spend me? This week, I’m resolved to spend my time more wisely and not take the benefits of that good use for granted. George Matthew Adams wrote, “We cannot waste time. We can only waste ourselves.” See where your gold coins are spent this week and by week’s end, enjoy the benefits of your investment.

Have a good week!

Kathleen

Kathleen Doyle-White

Pathfinders Coaching (503) 296-9249

© Copyright 2010 Pathfinders Coaching, Scout Search, Inc., all rights reserved.

3/1/10

Good day, team,

Here’s a challenge I wrote awhile ago that I am republishing in honor of the Chinese New Year.

My inspiration comes from the I-Ching, or Book of Changes, which is a Chinese text of philosophy and divination written more than 5,000 years ago. It is organized in hexagrams, or patterns of six broken and unbroken lines. Here is hexagram 49-KO:

“No revolution in outer things is possible without prior revolution in one’s inner way of being. Whatever change you aspire to in your affairs must be preceded by a change in heart, an active deepening and strengthening of your resolve to meet every event with equanimity, detachment and innocent goodwill. When this spiritual poise is achieved within, magnificent things are possible without.”

I have seen the truth of this statement in myself and others. We often make the mistake of thinking that if we could just change our external circumstances, everything would be so much better. If we just had a different job or boss, if we could just live where there’s more opportunity, have a different partner, or more affordable housing, life would be so much more to our liking and we would do a better job of it.

However, real change does not occur from the outside in, but rather, from the inside out. Connecting with and sustaining what is most true within us, listening to our conscience, and having integrity in what we do and how we do it, allows us to find true peace and happiness.

When I relocated to Portland in 1998, I had high hopes of setting up my new life to be happier. But before long, I realized I had brought all of my baggage from California with me, both external and internal. Imagine my chagrin when I discovered that all the internal baggage I had hoped to leave behind was still with me!

For example, I had this notion that the only person I really knew in Portland didn’t want to be friends with me. This was based on some old events from when we were both living in California. I still had some embarrassment about what had happened and convinced myself that because of it, I couldn’t contact her when I moved to town. I didn’t allow myself to even consider that she might want to strike up our friendship again. Much to my surprise, when I ran into her at a store downtown, she was very open and friendly and happy to hear that I had relocated. We began to see each other and eventually talked about past events. She had moved beyond it and had forgiven herself and me. I, on the other hand, had hauled that old baggage up to Oregon with me and talked myself out of a perfectly good friendship. If I wanted to move past it, I had to change my heart and my attitude so that I could let go of the old emotional baggage and be open to a new
relationship with her.

Your challenge this week is to consider what revolution needs to occur in your inner way of being. Are you holding on to some inner baggage that no longer serves you? Perhaps you’re still carrying around anger or resentment about a colleague, even though the situation that caused it is no longer relevant. If you find yourself reacting in the same way to a familiar situation and want to react differently, why not resolve to change how you respond in the future and act upon that vow?

“Joy is not in things, it is in us,” wrote Richard Wagner, the 19th-century German composer and essayist. When we realize that external changes don’t make us happy and instead learn to adjust our internal state, we begin to know the secret of our true nature, which is sufficient unto itself.

Have a great week!

Kathleen

Kathleen Doyle-White
Pathfinders Coaching
(503) 296-9249

© Copyright 2010 Pathfinders Coaching, Scout Search, Inc., all rights reserved.