A Business Lesson from the Dutch
The Dutch town of Drachten removed most of their traffic lights and traffic signs with remarkable results. Intersections previously adorn with traffic lights and directional signs have been replaced with round-abouts (traffic circles) and all signage removed. Deaths related to traffic accidents zero since the program started seven years ago. Residents claim that now it is much quicker and much easier to get around town. The stopping and starting at traffic lights no longer exists and drivers are now fully engaged and more aware.
I encountered a similar phenomenon in Bali last year while on vacation with my family. There are a few traffic signs and lanes painted on the roadways, but largely they are ignored. The roadways are littered with mopeds carrying anywhere from 1 to 5 passengers, creating up to 15 lanes at a time. Infants are carried in their mother’s laps as they sit sidesaddle behind their husband who is driving with another youngster in front of him. At first glance you would call it chaos and certainly dangerous. Not surprisingly, I immediately cancelled the car I was planning on renting as soon as the driver dropped us off from the airport. After a while, though, you realize that it is a very orchestrated dance, with motorists essentially creating their own rules of the road on the fly. Horns are used strictly in a positive sense to warn other drives that you are coming by. Not once did I see an angry, put all of your force behind the heel of your hand, make an ugly face and stick out your tongue horn blow. Nor, did I see an accident in the 2 weeks that I was there. Were the rules followed, it would be a lot less efficient.
Why do you suppose that traffic without mandated bureaucratic rules is so successful and apparently much safer? It is simple really, and it directly applies to business too. THE MORE RULES ENFORCED, THE LESS PEOPLE THINK. It’s an automatic response. When we are forced to follow someone else’s rules, there is no reason to think about the best way to get something done. It becomes easier to simply follow the rules. We’ve all had that boss who gave us an assignment and then proceeded to tell us each and every step to getting it done. And generally, the boss will get exactly what was requested, never anything more, and occasionally a little less. Never will they enjoy the full potential of their employees.
Now, consider that truth, and compare it to your workplace and its management strategy. Does your company ask for creativity, collaboration, and innovation while simultaneously providing a rule, process, or procedure for every conceivable scenario that could possibly occur? Most likely there is an alignment issue between the desired outcomes and the environment designed to promote those outcomes. This is the most common ailment for corporations today, and one that will largely determine their success in the future. The trouble is that it is difficult to self-diagnose. Not because those looking for ways to promote success are daft, but because the diagnosis and the cure fly in the face of everything we’ve ever been taught about organizing and managing a business. It won’t fit in any box, or even outside a box. Also, once acknowledged, the cure will bring a landslide of change that seems daunting, overwhelming, and downright scary. Therefore, it is easier to rationalize that the management strategy is fine, but more training in leadership and innovation is what is really needed. This is the very situation that many CLOs (Chief Learning Officers) are faced with today. I met many CLOs of Fortune 500 companies last week at a CLO Summit put on by Marcus Evans, and I have to say they are some of the brightest and most determined individuals I have ever met. Most are astute enough to know what the real issues are but are guided by leadership teams that do not. I commend them for their ability to persevere despite their circumstances. They all chuckled each time one of the presenters joked that, “The key to successful corporate learning is picking the right CEO”.
When considering such ideas, don’t forget to consider the consequences of choosing the status quo. Companies embracing this new perspective are enjoying phenomenal results. Companies like Patagonia report thousands of resumes for every job opening and ivy league MBA graduates applying for shipping jobs just to get a foot in the door with a company that believes in valuing their employees, customers, and the environment more than anything. Dutch Brothers Coffee is opening stores, while Starbucks is closing them, simply because they focus on relationships and it is shining through to their bottom line.
Over time, as more and more companies adopt a 21st century management model that is aligned with desired outcomes, as well as employee and customer values, a shift of the best and the brightest employees will follow. As the next business cycle heats up, the effects of this shift will become more noticeable. If you are waiting for a clear sign that you are loosing your best talent because your management strategy is left over from the last century before making a change, it will be too late. Unfortunately, we are likely to see a few iconic companies get left behind.
Competitive advantages in the near future will come more from revolutionary changes in management strategy than they will from other more traditional sources such as efficiency and cost control, population growth, and increases in standard of living.
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