Sunday mornings with Fareed Zakaria on CNN are sacred in my house.  Which basically means that my kids and husband abandon me for that hour.  More often than not, I’m highly tempted to blog about one or two of the topics Fareed covers.  I typically resist, because I rarely disagree with Fareed and over time I’m afraid I might come across as a “Fareed Groupie”, which could tarnish my image of a self-thinking, intelligent, strategic, modern woman.  That said, this week, I am giving into temptation. I simply must blog about this new British government and the 39-year old George Osborne (Chancellor of the Exchequer – Secretary of the Treasury to Americans) whom I found to be slightly pompous (expected), highly intelligent (expected), but unexpectedly refreshing and on-point in his ideas around what people really want from their governments.  I personally, think the US Republican party could take a lot of cues from the new conservative sheriffs at Downing Street.  As an Independent, I actually prefer it when both the Democrats and Republicans are acting wisely as it makes for better candidate options and more solution oriented action.

If you missed the show, it’s easy to watch or listen on demand.  Just click here.

Just to add my own touch to the conversation, and keep up my image, here are the four primary reasons why I like what I heard from Osborne and feel strongly that this is the direction that successful politicians will have to take (regardless of party) to be successful in the future.

Not Afraid to Act

Osborne has pledged to the British people that he will not hide hard choices from them and he will make them.  He has clearly lived up to this campaign promise with his austere budget that is getting a lot of press. He feels strongly that the public wants a government who can admit when there is a real problem, and work quickly to get it fixed.

Proper Leadership

The kicker here is their assumption that the public can and should act as an intelligent deputy to a sheriff who is willing to make and stand behind decisions regardless of which direction the political winds are blowing. This new conservative party clearly recognizes that the British public clearly understands there is a debt problem, and that the country has been living beyond its means for some time, and so they are willing to take it on as their first priority.  They also realize that not only Great Britain, but Europe, requires proper leadership to bolster their image and regain the world’s confidence in their ability to pay their own way.

Collaboration is Not a Death Sentence

Osborne speaks of forming a proper coalition government where the other party holds seats in the cabinet and how the real benefits of diversity in Parliament are less about looking different and more about being different and thinking different.  One of the best statements Osborne makes in Fareed’s interview is, “We can’t abandon whole areas of policy to the Left in British politics.  There is no reason why the Conservative Party should not have a progressive policy on climate change or be interested in issues of poverty and equity in our society and have answers to those issues.”

Open, Open, Open

They are open to new ideas, new views and anyone who can come up with a better way to reach a common goal.  Osborne indicated that he constantly seeks out second opinions and alternative views.  He encourages large numbers of people to come into meetings and say what they want to say, and understands that listening is a large part of the job.  His office recently asked the broader group of public servants for their ideas on how to reduce budgets in a way that doesn’t damage the frontline services people receive.  They received over 65,000 responses in a couple of weeks, and had some of them around to Number 11 Downing Street for a chat recently.  Interactive governement . . . what a concept!

I’ve been saying for years (just ask my friends) that the politicians in the US are simply making things worse and what most people really want is an entirely new breed of politician that is much more suited for the 21^st century.  We need politicians who care less about party line and more about solving problems. We need politicians who can explain both sides of an issue, without bias, and why they believe their decision is the best option.  We need politicians who can work with other politicians to get the job done and stop wasting the public’s time and money on petty politics.

As much as I love they way in which this new and refreshing British government is behaving, I would certainly caution them that the best solution in today’s environment is likely a combination of austerity in some areas and stimulus in others.  Because western politicians failed to play the austerity card when times were good, we are all now stuck in a precarious position.  The equation is really quite simple and it works for government, companies, and at home.  When times are good you pay off your debts, make smart investments, and put a little under the mattress for a rainy day.  When times are hard you dig out your mattress money and stretch on credit a little if necessary.  If used responsibly, credit can be a very stabilizing element in an economy.  When abused, as we all now know, credit can backfire as surely as a 1970’s MG.

One of the things I love the most about this new government is the fact that they aren’t letting fear run the show.  They are taking a stance, creating a strategy, and they are willing to listen to other ideas.  The longer we let fear run our households, our businesses, and our politics, the longer this era of uncertainty will linger.  It really is that simple.

I am often asked to review and blog about new business books coming to market, and only rarely do I oblige.  When Tony asked me to review his new book, I said yes immediately. His ideas around managing energy as opposed to time resonated with me years ago after reading, The Power of Full Engagement and plays a big role in my own consulting practice. The energy management concept, if explored to its full potential, can do more to transform an organization than any other single component.

The great thing about Tony’s new book is that it is full of sound research that reinforces what Tony is teaching and helps us to really understand why we do the things we do, even when they are counter productive to our goals.  More importantly, he provides practical advise on how to begin the process of change that will work for anyone in any stage of their career, or any organization at any level of health.

Not only will you find great information to help you become a better employee, leader, or manager, but you will also find that this book will help you become the person, spouse, parent, child, and sibling that your heart desires.

If any of the following statements resonate with you, then you should RUN, not walk, to the nearest bookstore and get a copy of The Way We’re Working Isn’t Working.

• I always feel like I am behind in my work and will never catch up
• I want my team to be more productive
• I desperately want to find balance between my work life and home life
• I want my team to be more accountable and responsible
• I struggle with the daily distractions of email, phone calls, and endless request for my time and can’t get any of my own work done
• My company does a poor job of retaining employees

What I personally love the most about The Way We’re Working Isn’t Working is how it very easily connects to my own work around helping organization find competitive advantages that work in the 21^st Century.  Tony reminds us that, “In a fiercely competitive and rapidly changing marketplace, creative and big picture thinking, curiosity, and openness to learning and empathy are a largely untapped source of potential competitive advantage.”  Going from more, bigger, faster to richer, deeper, slower seems counter intuitive to most, but is in fact the best way to distinguish your company from its competitors.

I have asked Tony to give us his thoughts on a few more in-depth questions on this angle around competitive advantage.

1)   Why do you think it is so hard for organizations to fully grasp that strengthening their connection with and investing in the well being of their employees can be a tremendous competitive advantage?

There’s an instinctive tendency in all of us to default to the easiest solutions. It’s easier to demand more of people than it is to consciously invest in them. It’s also part of the short-term preoccupation that characterizes so many organizations.  If you view people as expendable and interchangeable, you don’t worry about investing in them because you believe they’re all replaceable.  Leaders with a more  long-term view recognize that when you invest in people they become more valuable over time.

We make that investment in ourselves in the years we spend in school. But many organization are too concerned with the next quarter’s revenues to think about investing in the future. But the best organizations do just that. Companies such as Apple and Google offer more to their employees than most other companies – not just in perks like the free meals Google provides or the fitness facilities Apple has, but also mentally, in terms of the environments of learning and growth they actively nurture; and spiritually, by giving employees the sense that they’re doing something that truly adds value to the world. It shouldn’t be a surprise, in turn, that these sorts of companies attract better employees and have great results.

2)   In your work with a vast array of companies, do you see more of a correlation to the age of a company and the age of its executive team and their likelihood to fully embrace energy management in their culture, or is it more highly correlated to specific industries?

There’s no question that a certain kind of company is more readily drawn to our work.  They tend to be more progressive, forward thinking and innovative than average.  We’ve had our greatest successes with technology companies and with creative companies, but interestingly, we’ve also had significant success with more traditional financial institutions.  I think that may be because the folks drawn to the world of finance are often fiercely competitive, and we’re offering a science-based way for them to improve personal performance.

Ultimately, though, we’ve been able to work in almost every kind of organization, because in the end it’s usually one or two senior leaders who make the decision about whether to bring us in.  The trick, we’ve learned, is to introduce them to our work first at a personal level.  When they see its impact in their own lives, they become evangelists for the practices we’re teaching, and the new way of working we’re advocating.

3)   What is the one piece of information that you provide to clients that seems to resonate with them the most when it is difficult for them to see how proactively managing the 4 types of energy can have a profound impact on personal satisfaction and corporate success?

In an era of overwhelming demand, what resonates first is the science-based case we make for the fact that human beings aren’t meant to operate continuously for long hours. We all know, intuitively, that the way we’re working isn’t working, and that it’s actually depleting us.   It’s thrilling for people to understand that intermittent renewal actually drives higher and more sustainable performance.  Our work gives people permission to work in ways that serve them better – and make them feel better.  And that ultimately serves their organizations better.

As an executive in two finance companies during the bubble years I became very familiar with the hiring process.  What I generally saw was that hiring managers were not interested in taking any risk on people and generally liked to hire people that were just like themselves.  I suppose they felt as though they were taking enough risk on their deals, that they wanted to avoid any in the hiring process (too much market risk, not enough people risk).  Or maybe, they were simply taking the easy way out.  Just find the person who is doing what you want somewhere else and offer him/her more money to leave.  This is unfortunately what the recruiting business had come to during those years.  The reality is, most hiring managers (especially in the finance arena) are great at deals, but relatively poor at managing people.  Therefore, it was much easier to hire people who have previously done the exact job that you are hiring for so that you can spend as little time as possible with them and have little risk that they are not good at the job you are hiring them for.  It’s relatively sound logic as long as you are not interested in adding any creativity, ingenuity, or loyalty to your business.  How loyal do you think employees are that go from job to job chasing money?

Hiring for what people have done and not who they are, gets you people who have the ability to do certain tasks, but does nothing for adding to the moral, innovative, and energy building aspects of a business.  As with most things I write about, this was fine and worked well enough in the 20^th century, but will be far less effective in the 21^st century where the world, and particularly business, is beginning to work differently.  Employees, especially the younger ones, want their careers to be about something, they want to feel as though they are making the world a better place, and they want to work on something that is exciting.  People of my age and older, we never thought those goals were possible or even plausible to attain, so we simply gave in and focused on the money convincing ourselves that it is the ultimate measure of success.  I personally, am rooting for the kids of today and tomorrow, hoping they have the courage to get what they want.

When you hire people for who they are, what innate traits they bring to the table, and how they think, then you can maximize their potential in ways that maximize your business success.  Earlier this year, at the Front End Innovation Conference in Europe, there was a graduate student presenting some fantastic research on the traits of an innovative person.  She did a great job on the research and a great job at presenting, and I found it fascinating that the discussion it sparked really showed what a novel concept this was for so many people.  Sure, there have been personality tests that have been used in hiring practices for some time, but they really only tell you a few things like can you manage people, and will you get along with the others in your group.  I don’t dismiss those questions by any measure, but I sure would love to start hearing questions like, “What do you want to create? What are your passions? How connected are you to your own internal wisdom?” used somewhere in the equation.

When I asked on twitter whether you should hire people for what they have done or who they are, I got some great responses.  My favorite from @KrisSchindler and one that I agree completely with is to look for “intellectual curiosity”.  This concept has largely vanished from large institutions, and in my opinion, is not focused on nearly enough in our education system.  It’s a skill all of us are born with, and some of us choose to use it and others do not.  Who do you want working for you?

People Risk is not only about taking risk that someone with a different background who can think from new and creative positions is going to be good for your company.  People Risk is also about allowing yourself as a manager or executive to find the unconditional value in each person as individuals and as they interact within the company.  This takes time, and even more importantly, this takes being vulnerable enough to make those really strong connections that inspire people to work at their full potential.  When people are working at their full potential in an environment where they are respected, they have no desire to go somewhere else.

Alex Pattakos, PhD, writes in his book, Prisoners of Our Thoughts:

“The transformation of work in the twenty-first century is, in many respects, a call for humanity—a new consciousness that suggests more than simply trying to strike a balance between our work and our personal life.  It is a call to honor our own individuality and fully engage our human spirit at work—wherever that may be.”

This time, as I read Lencioni’s latest book, Getting Naked, I had a different reaction.  I knew this book would be a fantastic tool, not only to fall back on as a reminder to never give up on what I believe in (which we all need on occasion), but also to give to clients as a way to help them achieve more.  It’s possible that I also did a small happy dance for my own little consulting company as I saw many parallels to the way we already do things here at YURU.

Getting Naked presents the business world with a new kind of 21^st century risk that can provide the taker with a competitive advantage that will leave heads spinning in disbelief.  The ability to harness what Patrick is sharing is what will separate the good, and yes even the great, companies from those that dare to be extraordinary.

Understanding Lencioni’s three fears that hinder client relationships can provide the insight necessary to take such risks.  If you can find the courage to be honest, authentic, and buck-naked vulnerable with yourself, your teammates, and your clients, the sky is the limit for anyone or any business.  There are plenty of brilliant nuggets of wisdom in Getting Naked no matter if you are a consultant, manage a department, a business student, run a multi-national company, or are part of the small business backbone of our economy.  There is something for anyone who has clients, which at the end of the day is pretty much all of us.  I have seen first hand, with myself, and my own clients, how these concepts can literally transform people and companies.

The story-telling style of Lencioni’s books, gives the reader that sense of “what happens next” that good fiction employs and shows us how his theories would look in real life as opposed to simply preaching them.  That one extra step really allows the information to sink in at a different level.  Plus, it’s just more fun to read.

I highly recommend Getting Naked with its high quotient of nuggets of wisdom to words read.   In other words, lots of great stuff packed into an easy to read book that will fit into your busy schedule.  Plus, it can be a great conversation starter if you simply carry it around for a couple of days.

“Individually and Together” — three words I heard this weekend from Will.i.am being interviewed as he fondly remembered the journey of success for his group The Black Eyed Peas.  Yes, I am over 40 and a fan of the Black Eyed Peas!  As a writer, sometimes you hear a group of words in one context and your mind instantly relays them to another and you know that somehow you must capture that connection on the page.  For me, these three words hold the keys to success in the 21^st Century for any business, large or small, local or multi-national.  When I was growing up, if a member of a band did something on his or her own, it was basically viewed as defecting.  Today, the Black Eyed Peas show us that band members doing their own thing and great stuff with the group is actually great for business.  Maybe the Cold War really is over.

How does one reconcile the dichotomy between a world increasingly focused on the individual and simultaneously asking its citizens to work in greater collaboration for the greater good?  The problem lies in seeing the two forces as a mutually exclusive.  The minute we begin to see them as more alike than unalike we begin to tap into their power.  By individually pronouncing ones passions and desires and focusing on what really drives you forward, you are more able to contribute to joint tasks in a selfless manner.  It is difficult for many of us to see this because society dictated for much of the last century that you are either out for yourself or you are for the good of others, and never the two shall meet.  The missing link is the belief that somehow left to our own devices, we are pre-programmed for choices and behaviors that are unsuitable and against what is good in this world.  Based on my experience, this could not be further from the truth.

Leaders today are challenged with how to allow maximum individualism while maintaining a strong thread of common vision between every person in an organization.  It’s a bit like the challenge that search engine companies are facing today: how to put a context around what any individual is searching for (based on their individual profile) such that they find exactly what they are seeking and perhaps something even better that they didn’t know existed . . . all the while maintaining some semblance of privacy.  When the figure it out, it will be a game changer.

It’s about giving employees back their power of creativity, permission to fail in search of excellence, and the respect that every person on the planet deserves regardless of their role.  It’s about leadership with less ego and more personal confidence creating the skills necessary to embrace and lead any group of individuals to their highest potential.  It’s about tapping into the personal energy of every member of an organization such that the energy of the group expands beyond the sum of its parts.

In another part of the same interview, Will.i.am spoke of inspiration, indicating that when it calls, you don’t hang up . . . you give it directions to your house.  Unfortunately, most of us hang up on inspirational thoughts and chalk it up to another wrong number from Mr. Impossible Dream. When, in reality such inspiration can at any moment become a pivotal point in our lives leading us to create a life full of impossible dreams that come true every day.    It’s a mindset that I have been aware of in my own life for sometime now and have slowly been shifting toward, and I will tell you that its power is immeasurable.

So, what does it really take to be a successful 21^st century leader that can relate to each individual and then relate them all to each other?  It takes courage to love who you are, to love who everyone else is (regardless of where they are in life), to believe your team can connect the un-connectible dots, and the sincerity and vision to bring everyone together.  It takes the courage to know when to go for it and when to do more research.  It requires a willingness to take personal risk by really putting yourself out there.

Be the energy . . .

Just as we must be careful of the words we use with ourselves, so as not to unintentionally sabotage our own motivation; we must also be careful with the words we choose to exemplify our commitment to excellence inside our businesses.  There is a big difference between a goal of being the best and one of constantly improving and learning.  On the surface one might guess that being the best is always the best option, but I beg to differ.  The difference is in the mindset.  Being the best is a place to get to while always improving is a place to come from.

If your goal is to be the best, then what is there for you to strive for once you’ve reached that plateau?  In the 20^th century, being the best was a title much easier to hang onto once attained because change occurred at a much slower pace.  Today, you could loose such a tile in a day from one disgruntled customer who was savvy enough and creative enough to reach one million viewers on you You Tube with a story of how he was wronged by your firm.   And the kicker . . . it doesn’t even matter if it is true.

If your goal is to be the best, then how do you and your employees feel when you are not the best?  You probably feel as though you are failing in some respect.  Sure, that bit of anger and resentment toward the one who is the “best” may fuel some extra time at the office, but it is also affecting your mindset and your ability to really come up with that next great idea that might in fact land you top of the heap.

If you goal is to be in a state of constantly improving and forever learning, then it really doesn’t matter who is perceived as the best on any given day, you and your team are always looking for that next edge.  There is no anger, no resentment, and no feelings of failure to cloud anyone’s mind, judgment, or motivation.

Excellence comes from doing the ordinary things extraordinarily well with energy and enthusiasm as if they were the most important job in the world.  This is the key to excellence.  Everything counts no matter how big or small a role it plays.  Little things add up to big things.  Your energy when you complete the ordinary will dictate your energy with the extraordinary opportunities come your way.  It’s the same reason why some people seem to get all the opportunities?  They don’t really; they are simply ready to greet them when they arrive.

Never loose your desire to learn, or tire of improving yourself ~ from artist Jane Farr who has joined Ancora Imparo (Italian for I am still learning) and Kaizen (Japanese for being in a continual state of improvement) in the beautiful drawing above.

It depends really on the US’ ability to recognize that the type of world leader required in the last century is quite different than the world leader that is needed in the 21^st century.  Just as in business, what qualifies as effective leadership changes over time as the constituents being led change not only demographically, but also in what they value the most.  Successful leaders of the 21^st century will be the ones that are more inclusive than exclusive; the ones put their egos aside; the ones that lead more by relationships than through control; the ones that recognize that every person and every country has their own story and though on a different scale they may in fact be doing the best they can.  Leaders of the future are not afraid to give credit where it is due, and in some cases they must step aside and let others lead.

Last week I attended the US-China Business Forum Green Texas 2009 in Austin Texas, organized by the US Department of Commerce, US Chamber of Commerce, and the Austin Chamber of Commerce, among others.  The overwhelming take-away for organizations wanting to take advantage of the tremendous business opportunities in China was that you must be willing to make a long term commitment that is centered on relationships, alliances, trust, and respect.  If you think you are going in as the big, intelligent, egotistical American, you will likely be in for a big disappointment.  We heard from folks that have done business in China for decades and newcomers that are still on their journey, and the most successful are open, respectful, and go in knowing that they will learn a lot from the Chinese.  It can be a wonderful win-win for both countries.

We may not always agree with the ways of the Chinese government, but the reality is that they are doing a lot more than the US in getting the world’s economy back on its feet.  They may not have an open political system, but they are very far along in an open economy and that is a massive step forward and certainly one in the right direction.  They may have substantial environmental issues to contend with, but considering where they started, they are definitely moving forward.  We cannot support immoral activity, but we can and should, in my opinion, support what they are doing well and their commitment to an open economy.  Political change will eventually come from within when the growing middle class become large enough and courageous enough to speak up for what they want.  Listening to a talk on China by James Mills of the Economist, this growing middle class and the political implications it may bring is a big concern for the Chinese government.

It would not surprise me if China eventually leads the world in the rate of environmental change.  They are starting at a much lower position than the rest of the developed world, and they will be able to leapfrog the stage we are in and go directly to the latest technologies with the best results.  Despite the large size of their country, their ability to make large sweeping changes is greater than any democracy because they simply lay out the new rules and begin demanding change.  I am certainly no advocating communism, but it is hard to ignore that in the case of environmental clean up in China it will likely be very effective.  My personal opinion is that slowly over many decades China will continue to take on more and more democratic practices in an effort to maintain peace and stability within their own country.

If we do not keep our eyes open, acknowledge and embrace the changes that our own country needs, and are not willing to support other countries in their struggles to become leaders themselves, we will miss the proverbial boat.  We will wake up one day and realize that the US is behind the times and has lost an important and powerful opportunity to continue to lead the world to success, out of poverty, and to a peaceful existence.

We must be proud of countries like Brazil, and be proud that they have one the recent bid for the 2016 Olympics.  Though we all wanted Chicago to be chosen, if we dig deep down in our hearts, we know that Brazil needed it much more than we did.  They now have a goal to work toward to clean up some of the violence, and prop up some of the infrastructure.  I only wish we could have see that before and perhaps graciously asked that Brazil be the winner.  Instead, we have confirmed what much of the world thinks of America; that we are selfish and sometimes a bit of a bully.  What a lost opportunity!

According to last week’s Economist (special report on Brazil), “Brazil has long been known as a place of vast potential.  It has the largest freshwater supplies, the largest tropical forests, land so fertile that in some places farmers manage three harvests a year, and huge mineral and hydrocarbon wealth.  Brazil could easily be one of the 5 largest economies sometime this century.  Shouldn’t we be asking them what they would like to create and how can we help?  Instead we always seem to be saying, “Here’s what you need to do.”  Shouldn’t we be helping our own entrepreneurs do more business with Brazil?  A strong and successful Brazil means wealth and stability for a large chunk of South America . . . and that has to be good for the spread of democracy and the globally interdependent economy.

It’s clear that later on in the century the US may loose it’s first place standing in some measures, or at least loose it’s massive lead.  We can either sit around worrying about how we can keep our edge in whatever measurement the media is focused on at the moment, or we can become true global leaders and help our comrades become leaders themselves and in their own right.

This is the exact same struggle that large corporations are facing today.  They can continue their hard-line ways of controlling their employees and making sure that all the decisions are kept close to the chest at the top of the pyramid, or they can realize that tomorrow’s greatest companies will come about through a new kind of leadership.  Leaders that genuinely deflect the limelight, constantly support their customers and employees, and believe in people enough that their full potential shines through.  These are the companies that will attract the best and brightest employees that design and develop the best products and services.  People will gravitate to companies where they can become themselves at the office and aren’t forced to go down a certain path or abide by a certain set of rules.

As the US learns how to help countries without dictating, and listens to what they really need, and has the compassion to put others first on occasion, then, and only then, will we deserves to be the leader the world can truly look up to.

It’s simple really.  When you gain their trust and have compassion, then you have a chance to really create a positive influence.  Without trust, you will, at best, maintain the status quo.

If it is unbridled success you are after, and you are trying to create a stark competitive advantage, it is critical to start by innovating your management strategy.  Asking employees to be innovative and contribute to the next competitive advantage while employing a management strategy left over from the Industrial Revolution is like asking your 1960’s percolating coffee maker to give you a triple shot skinny vanilla latte with extra foam.  You will be lucky to get a decent cup of joe and a monstrous mess.  However, if you are willing to entertain at least some components of a 21^st century management strategy, you will likely be blown away by the creativity that in many cases lies dormant.

Many modern companies employ management strategies based on command and control techniques designed to encourage employees to do only what they are asked, which translates into turning off their creativity as they enter the building.  Hierarchical organizations, not matter how progressive, generally promote a unidirectional flow of information.  The clock watching tendencies of most managers and requirements to account for every minute of every day, do nothing to build a culture of trust.  I know how it made me feel to be a grown woman (having put myself through graduate school, and learned how to do business in 6 different countries with little direction) forced to ask permission to take my child to the doctor and watching my “boss” decide whether or not it was convenient for him.

There is no shame, blame, or guilt intended here.  We’ve all been doing as we were taught in business school when in comes to organizing and managing companies.  The difference now is, we know there is a better way and with it comes higher productivity, greater enjoyment, and less turnover.

Without creativity, a collaborative flow of information in all directions, and trust, all attempts at suddenly becoming an innovative firm that is competitive in the ever-changing world of the 21^st century will likely fail.  The essential ingredient for creating an innovative work environment is the courage of the folks at the top to change the rules of the game.  With that one ingredient, everything else will come naturally.  Not without hard work and dedication, but without friction.  Your team will amaze you, inspire you, and keep you humble enough to savor every moment, even the ones that aren’t so great.  It is possible to create an environment where failure is understood to be a key to success and support is as normal as gossip is today.

If you want employees to think creatively, design solutions to fix problems beyond the ones you know about, collaborate, and generally bring their A-game, you must be willing to give them the freedom to do those things in their own way and with their own style.  People are only going to give you as much as you believe they can deliver and no more.  If you believe your team is invincible and you tell them often, then that is what they will aspire to be.

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 21^st 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.