Is Depression Costing Your Business? Probably!

The cost to UK business alone of poor mental health management is in the region of £25 billion per year (Centre for Mental Health, UK);

Depression is soon set to become the second most common cause of disability globally, after heart disease (World Health Organisation)

One in four adults will suffer from a mental health problem in a given year and the majority of these people will suffer depression (British Office of National Statistics)

(Global Business Magazine, February 2012)

And guess what? The most significant impact on workforce stress and depression is the way work is organised and managed! The latest findings on workplace depression suggest that the solution is to ensure that people

• Are able to see how their output makes a valuable contribution to the organisation.
• Are allowed as much variety as possible in the tasks they carry out, the speed at which they work, the way in which they work and even the place in which they work if possible.
• Receive regular performance feedback – repeated studies have shown that uncertainty about performance is a major stress factor.
• Are given ownership of their responsibilities.
• Are provided with suitable opportunities for learning and problem-solving

In short, workplaces that have [open] communication and that allow their employees greater flexibility and control have fewer instances of depression.

Hardly rocket science! But despite manager-talk, few organisations get anywhere near approaching such a climate. Most are so interpersonally dysfunctional (mad) that they could hardly be better designed and operated to intentionally produce depression and anxiety.

The secret is to transform the context: the members’ shared unconscious and conscious assumptions about the way the organisation functions.

So how do we do that? The best time to do it is when the organisation is in crisis. The current global economic climate offers many exceptional opportunities. However, most such opportunities are squandered with conventional restructure, cost cutting, and consequent reinforcement of what’s bad about the way we typically organise and communicate.

The best way to do it is to engage in widely inclusive strategic planning and execution along lines advocated by

· Denning(2010) The Leader’s Guide to Radical Management: Reinventing the Workplace for the 21^st Century (available on Kindle from Amazon USA for NZ$18)

· Hamel (2011) Reinventing the Technology of Human Accomplishment (Management Innovation Exchange Video)

· Kim and Mauborgne (2005) Blue Ocean Strategy (available on Kindle from Amazon USA for NZ$11)

· Sinek(2010) How Great Leaders Inspire Action (TED Video)

· Weick and Sutcliffe (2007) Managing the unexpected: Resilient Performance in and Age of Uncertainty (available on Kindle from Amazon USA for NZ$18)

All write about strategy for organisational transformation.

These aren’t “tool boxes” for managers to apply to the managed. The transformation begins with managers’ open commitment to first transform their own behaviour, despite the perceived risks of loss of authority and chaos. Most managers fail at this first hurdle.

To succeed they’ll need the full support of their board of directors and accountability, with education and encouragement, to a coach skilled in such transformational process. That way they can learn experientially - the fastest most effective way - to lead the transformation process.

The benefits: market leadership, unimagined high levels of client and employee satisfaction, amazing technical innovation, reduced costs, higher profits.

The most powerful determinant of NZ business success today is all in the mind.

How to be successful in 2012 and beyond.

According to many who (by the popular definition) are successful and according to the many popular analysts of success, achieving it is as “simple” as sticking to a regime like:

Step 1: (re)picture what success will look like in 10 years. Be sure to think Big, Hairy, and Audacious (Thank you Jim C) ; beyond your imagination of how to get there.

Step 2: decide up to three main 3-5yr thrusts that will take you towards that 10yr vision.

Step 3. set an goals for 2012 that will addresses the highest priority action within those 3-5 yr. thrusts

Step 4: set up to five actions for the first quarter

Step 5: Take action and monitor your progress and focus weekly, monthly quarterly and review your goals annually.

Interestingly, by this definition most people are not successful, arguably because in reality they don’t stick to the regime. This begs the questions: 1) Are most people therefore failures? 2) Are there grades of success? 

At dinner parties and other gatherings this summer we’ve played the game “Who’s the most successful?” That game is always on, but seldom explicitly. So we decided to put it on the table.

We discovered, as you might expect that personal notions of success seem strongly affected by life experience.

According to one summary circulating in the email, notions of success are broadly age related and a kind of cycle of life:



We found that politically, people seem to vote for government that they believe will assist them to achieve success on their terms and thus increase their chances of winning – or at least getting a good grade.

We found that people whose children are "successful”, but are “unsuccessful” themselves tended to measure their success in terms of their children’s material success if the kids are rich, or creative success if they’re artistic, or got “good jobs” if none of the above. Or it might be reproductive success if they’re producing lovely children.

Some argued that success is belonging, contributing and growing according to one’s strengths. (Liberal).

Others argued that success is to do God’s will to further his kingdom on earth. (Religious).

Success seems to vary between cultures. For instance a Chinese lad from Taiwan observed that in his community the “top dog”  has the biggest house and flashest car. He observed that in Kiwi culture the “top dog” cooks the BBQ. Maybe that’s why Kiwi’s are regarded as less commercially aggressive
.
Anyway, it quickly became clear that people tend to define success pretty much to suit themselves (or get very depressed). This can be a problem when a modern economy, especially  in the current recessionary climate, needs economic growth to prosper; needs people produce and buy more stuff: needs success to be materially measured.

We figured therefore that the best policy is to foster materially measured success by nationally standardising success measures along materialistic lines: to have National Success Standards; that these be administered by a dispassionate bureaucracy, preferably an already established one to avoid set-up costs.

In New Zealand, achievement standards are administered by the New Zealand Qualification Authority (NZQA). NZQA administrators will likely be very pleased to acquire the increased span of control.

NZQA’s hold over NZ education is also an advantage because if we have National Success Standards and we want everyone to have equal opportunity to be successful (egalitarian) we must have widely available education for success.

Because we need a quick return on the education investment we can’t wait for kids to qualify in Success  and work their way into the corporate workforce. We must educate the existing workforce starting NOW.

So we must rapidly develop and deploy a programme of tertiary level courses in Success which would necessarily be night classes  at universities and polytechnics.

That way working people could study to qualify in Success while they continue to work during the day. Along the way they could  apply their learnings to their workplace  and families and whole workplaces and families could become successful!
  
If we act quick enough, 2012 can be a huge success for everyone! ;-)

Who do you think you are?

Who you think you are is affected  by the context you’re in and it affects the behaviour of those around you. Who you think you are at work is affected by your assumptions about what your work role means and the cultural dynamics of the organisation.

This was highlighted for me recently by a client’s story:

For as long as I’ve known him my client’s been disappointed with the performance of his sales manager. The sales manager hasn’t achieved the potential indicated by his personality profile and successes outside work. He’s good but not great.

Yet recently he showed brilliance, but not in the usual work context. He and my client were at a supplier’s international conference. My client, unable to cope himself with all the relationship building opportunity and expectation, totally delegated half of that to his sales manager.

The sales manager’s performance in that context was vastly improved from normal. Had my client not known the sales manager’s underlying personality profile, he’d have been worried that his sales manager was on drugs of some kind.

My analysis: that goes to show what’s possible if you can change the organisational context. Next step is to raise the experience to consciousness and deliberately seek to change the local (internal) context to enable that brilliant performance back home.

I recommended my client tell his sales manager how amazingly effective he had been in that outside setting. Then ask him how they could together work to change their behaviours and assumptions to enable the sales manager to tap that previously hidden strength.

He’s done that. The sales manager was surprised and pleased to have been caught being brilliant. They are deliberately working to change their relationship and the organisational dynamics. My client is taking the lead by being accountable to his sales manager for changing his own behaviour.

Who you think you are can turn innovative, curious, dynamic and effective people into comparatively conventional, apathetic, dull and ineffective drones; turn considerate, reflective and humane people into insensitive, bullying manipulators (and vice versa). (For more on bullying see What to do about workplace bullying)

You are just as susceptible to those affects as those around you. Reading about and understanding that effect won’t immunise you. If you’re the boss and your people are behaving badly or unproductively then the change starts with you deliberately changing the way you behave.

That’s probably going to be difficult because who you think you are is deeply engrained. (For more on that see Why good people behave badly in organisations). The good news is that it’s difficult for everyone so you don’t have to become a saint overnight to steal the march on the competition.

Measuring a “pound of flesh”

TEU’s Nigel Haworth is probably right to pejoratively call University of Auckland VC, Stuart McCutcheon a Managerialist.

In this latest stoush with the Tertiary Education union McCutcheon claims the rational high ground (NZ Herald). But to Haworth and many others he’s behaving like an industrial Shylock demanding his pound of flesh; his stance smacking of conventional managerial thinking and arrogance: underpinned by a particular set of unquestioned assumptions about how to measure and get better performance.

Of course in his mind McCutcheon is simply being rational; more rational than fellow academic Haworth, and denies wanting a “pound of flesh”. But to Harworth and the significant proportion of university employed academics in the union it clearly feels like that.

The thing is, there are far more productive measures of performance and satisfaction than those that demand or seem like they demand “pounds of flesh”.

Steve Denning commented in a recent communication:

“As I look back on my many years as a manager, I can see that one of the things that kept management grinding along on its death march was the measurement system. So long as the managers used a measurement system that kept tracking "things", it meant that "people" and "teams and "storytelling" inevitably got the short end of stick. 
 
So managers often talked a good game about people and teams, but at the end of the day, what really mattered was whether you made your numbers.”

Traditional management will keep grinding onwards unless and until we change the things we measure and crucially, the way that we measure them. 

We must pay attention to the people elements, not just the "things" or "outputs" that an organization produces. 

Steve’s doing a 5 part series in his Forbes blog on measuring what really matters. Part 4 on measuring time has links to the previous 3 parts. Part 5 is in the pipeline.

What to do about workplace bullying

The other day a prospective business-owner client asked me what to do about workplace bullying. My advice: act immediately to change the culture and isolate the bully. Bullies kill engagement, big time. They cost you heaps in diverted energy and focus and unnecessary staff turnover. They drive their victims, potentially your most promising people out, or mad, or both. Though they may seem competent and nice as pie they are typically operating well beyond their competence and their influence is effectively evil.  You can’t fix a bully. They have to go. Here’s a strategy that works:

Start MBWA (Managing By Walking About)immediately .

Bullies thrive in bureaucratic hierarchies where they can control the flow of information both upward and downward. Bureaucratic hierarchies aren’t the preserve of large organisations. They are common in organisations of all sizes and kinds. Open up communication and loosen up the hierarchy by establishing direct, focused conversation with a range of individuals at different levels in the organisation. Share your knowledge with them. They’ll return the trust.

Establish purposeful responsibility.

Bullies manipulate roles and expectations to their personal advantage, typically to obscure their own incompetence. To counter that, execute a strategy to clarify the organisation’s values, purpose and long term goals. Within that framework, work with individuals and teams to clarify responsibilities, accountabilities  and action priorities. Make them widely known (including yours).

Establish a widespread habit of regular, frequent meetings to openly discuss individual and team progress and blockages in executing those priorities. People thrive on shared purposeful responsibility plus frequent open discussion of progress foils a bully’s manipulative strategy. Expect the bully to resist and attempt to subvert this regular, open reflection and review process.

Isolate the bully.

Regular, frequent open review of progress on personal and team accountabilities will isolate the bully’s performance and break the bully’s hold on information flow. Better informed, other team members will become more bold, convincing and successful in their arguments and actions. The bully will become clearly and contrastingly less competent and isolated.

You may be surprised who the bully turns out to be. After all they’ve been making a career of ingratiating themselves with you: agreeing with you, bolstering your ego and maybe even dealing with a few of your tough HR issues, while creating an engagement-killing climate of fear and favour to isolate and silence their critics. Bullies are experts at hiding their incompetence and bad behaviour. Victim’s attempts to draw attention to the bullying  will likely be cast by the bully as whinging justification for poor performance.

Openly confront the bully.

When you have plenty of solid evidence of the bully’s incompetence and lies,  personally confront the bully.  Be  ready for  angry denial and counter attack.  They will attempt to bypass you and ingratiate themselves with a higher authority. The bully will be very reluctant to admit their bad behaviour and incompetence even to themselves, even though it is by now widely and openly known.

If the bully doesn’t leave on his/her own accord then you already have clear justification and support to dismiss them for unsatisfactory performance in their specific role.

Learn fast: things aren’t (ever) returning to “normal”.

New Zealand business managers and educators have got to transform their thinking and practice or NZ can say goodbye to “high” living standards: already down to 23^rd in the OECD and in imminent danger of being overtaken by Czechoslovakia.

That was the main message I took from National Bank (NZ) Chief Economist Cameron Bagrey’s lunchtime address last Tuesday to the national conference of New Zealand Applied Business educators. They’re tertiary (but not university) educators on undergraduate Applied Business diploma and Applied Business degree programmes. I sneaked in on the coattails of my wife Sandra Barnett, an innovator and author in Applied Business education (Communication).

Bagrey confessed he’s embarrassed that his profession’s consistently got it wrong: failed to predict the current recession and doesn’t have a clue how to fix.

He says only one thing’s for certain: we can’t go back to the way it was. Anyone who thinks that things will return to “normal” is stupid. The policy makers are determined it won’t; determined we figure out new ways to do, manage and teach business and the economy. Previous answers are wrong.

He didn’t have new answers except to say that boiled down, it’s the responsibility of individuals to generate and implement new ways. He didn’t have any special advice for business educators.

I agree with Bagrey that the solution lies with individuals, though I add: individuals in collaboration not isolation, generating and learning new ways together.

I seriously doubt NZ Business Education can change from its prescriptive right-answer model any time soon, hobbled as it is by administrators and their anti-professional, centralised rules and controls, and know-no-better student and employer market.

I’m sceptical too that NZ business managers can abandon their manager-knows-best, right-answer approach any time soon: go deeper than recite the superficial lists of “secrets” peddled in popular business management literature.

Actually the answers have been there for more than 20 years (e.g. Drucker and Senge), effectively ignored: except perhaps in Business student essays and Management band-aids, quick fixes, and fads.

Here’s the guts: (really) involve everyone; confess ignorance (starting at the top); spend time together generating a long term goal that everyone’s passionate about but not sure how to achieve; get very clear on the medium term strategy and short term goals that stand to take you towards the long term; openly generate and agree clear individual and collective accountabilities in achieving the change; openly measure progress to keep individuals and groups (at all levels) openly accountable for their contribution; continually review and revise in the light of individual and collective experience; take every opportunity to talk about the long term goal and the actual action and progress towards it.

And another thing: get long-term (2 yr) outside help from experienced change execution specialists. Be sure that they too are accountable for progress.