A vote for consensus

Man in suit leaning on a wall

Recent calls by the governance advisory community for the individual voting record of each director to be disclosed to shareholders are missing an important aspect of boardroom dynamics – joint and several liability.

Within a board, each director should feel that they can, and will, be held to account for any, and all, of the decisions of the board. The prospect of a director saying, in effect, “Don’t blame me; I didn’t vote for it” is utterly dismal. Such a director would possibly also feel able to shirk responsibility for devising solutions to problems that ensued from a course of action he or she had voted against. That would be divisive and could dangerously weaken the board by removing insights, knowledge and moral support from the team making the rectifying decisions.

There is a big difference between informed consensus on a strong board and weak directors who pander to and support the decision of the majority.

When a director, as all directors must at some time in their careers, finds him or herself disagreeing with a course of action that the majority of the board wish to implement it is imperative that he or she continue to disagree until satisfied that:

  • The decision will not materially harm the company in the short term
  • Implementation will provide information that can then be used to decide if, and how, to continue
  • The proposed actions are broadly in line with the expectations of all shareholders
  • There is a review point at which the whole board can reassess the decision
  • The opportunity cost is affordable, and
  • The decision is legally and morally defensible.

If a director finds that the rest of the board wish to implement a decision that violates one or more of these statements then the safest thing to do is resign. This board is not serving the shareholders’ interests and it will be dangerous to remain associated with it.

If a decision meets these tests but is not to the directors liking it is for that director to propose an alternative that will better serve the needs of the shareholders. If there is no better alternative to a course of action that is affordable, in line with shareholders expectations, in the interests of the company, legal, and capable of being halted at a later stage if adverse effects become apparent then there is no reason to oppose the decision.

Much depends on the trust that the individual director is able to place in his or her fellow directors. If it is believed that these are honourable people, who will stop and reassess when if say they will, and who are working in the company’s (or shareholders’) interests than a director may allow the board to proceed even if, personally, he or she would prefer not to. If the decision, once taken, will then be allowed to run an unexamined course or if a review is not also a point for reassessing the direction (often serving, instead, to determine bonuses for completion of certain stages) then a director may be loath to proceed even with assurances.

Chairmen, in particular, should ensure that their boards are scrupulous in living up to any commitments that have been made to gain approval for a decision. They must also be patient and allow dissenting directors to find a point to which they are comfortable to proceed. In the long run, a board that is confident and able to form true agreement on each and every decision is far stronger than a board where factions and spurious majorities can force the board’s hand on important decisions. If the voting record shows 100% agreement on all substantive issues that should be a good thing. The true measure of the calibre of individual directors should be the time and diligence with which the whole board seeks consensus and the unanimity with which they endorse and support decisions once they have been made.

What do you think?

———————————————————————————————————-
Julie Garland-McLellan has been internationally acclaimed as a leading expert on board governance. See her website and LinkedIn profiles, and get her book Dilemmas, Dilemmas: Practical Case Studies for Company Directors.

Unleashing the Power of your Story-IV

Plasma ball illustration

Three ways to understand yourself in systems


Events, Patterns, and, Structure

There are three ways to think about yourself and your behavior in complex systems. To increase your effectiveness as a leader, it is useful to understand all three and how they interconnect. You can understand yourself in systems through the lens of Events, through the lens of Patterns, and/or through the lens of Structure.

When you look at yourself in systems at the Event level, you can answer the question, “What just happened?” For a leader looking at her own performance, an event is a particular leadership incident and how she handles it.

When you look at yourself through the lens of Patterns, you can answer the question, “What’s been happening?” As a leader, you can learn to see your patterns of behavior over time in response to significant leadership challenges.

When you look at yourself through the lens of Structure, you can answer the question, “What is the cause?” What is the root cause of my behaving in repetitive ways in response to difficult challenges?

How you as a leader respond to one high stakes, particularly difficult leadership situation represents an event in your life as a leader. When you notice that you have reacted in very similar ways before in other high stakes situations, you are seeing your patterns of behavior.

When you see particular events, and a repeating pattern in your leadership behavior, you can find the root cause, the underlying structure that shapes your reactions, in your deep systemic story. Your deep systemic story is the place from which your entrenched patterns of behavior emerge. That deep story is the narrative—with discernible plot-line and character structure—you have created about your experience in systems.

Your leverage for change increases as you understand events, then patterns, and then structure. At the event level, you may change your reaction so that the outcome of a particular situation is a bit more desirable. As the pattern level, you can work on changing your patterns of behavior over time. At the structural level, the level of story, you can shift your underlying assumptions, change how you see yourself as a person and as a leader in the world, and make deeper, long-lasting changes. You can learn to transform your story and, thereby, transform your leadership.


Examples

Here are some examples of Events, Patterns, and Structure from people I have worked with. As I mentioned in the last post, I have kept the essence of these examples true to the stories; I have fictionalized them so that the sources remain anonymous.

Coaching Employees who aren’t Committed

Event: A marketing company executive started coaching four of her employees. She experienced two of them as fast, bright, and motivated, and the other two as slow, not as bright, and not very motivated. She was still coaching the two motivated employees but had stopped working with the other two.

Pattern: In further conversation, the executive stated that this was not a new behavior for. She said, “Oh, I’ve always done this. I always stop working with the people who aren’t fast, smart and motivated. I don’t know what causes me to do it, but I always do.”

Structure: The executive asked to explore her pattern of behavior at the story level. She saw the connection almost immediately. Her father was a very successful, well-known person in his field. When he worked with her and her sister, he experienced her as quick, bright, and motivated. He experienced her sister as slow, not as bright, and not as motivated, and he stopped working with the sister.

This executive saw that her assumptions and behavior were exactly the same as her father’s assumptions and behavior toward her sister. “Because I experienced them as slow, I have been assuming, without even realizing it, that they were not as bright and not as motivated.” She immediately explored other possible assumptions and changed her behavior. She created a new story in which she worked successfully with all her reports.. Now she is coaching all of them.

Deep Ambivalence about New Challenges

Event: I recently got very happy and excited about a big new project at work. The opportunity to take on something big energized me. Then, a sense foreboding came over me—I had a deep fear that I would do something to make the project go wrong.

Pattern: Over my career, it seems that every time I am have a significant new opportunity, I first get excited about it and then experience a deep sense of dread.

Structure: My father’s musician colleague, Bill, came by to visit. He had just returned from a trip to New York where he had purchased a hot new jazz album for my dad. I came out to say hello to Uncle Bill. In my excitement I ran into the room, jumped up on the couch, and broke the record Bill had given Dad. I felt horrible. I had greatly displeased my Dad, my hero; he was disappointed that I broke something he valued. I learned to fear that I would mess up things I get I get excited about.

Needing Affirmation to Feel Good

Event: In Q1 I felt great. My group and I were at the top of our game. We were exceeding all our numbers and getting rave reviews from the organization. Now, here we are in Q2 with a big slowdown, and we don’t hear anything from anyone. I feel terrible about myself and very guilty about not achieving.

Pattern: For as long as I can remember, I have felt great when I was accomplishing great things and getting recognition for it. Then, even a short time later, when I am not achieving the best and getting praise, I feel terrible. I’ve wondered for years why I need recognition to feel good about myself.

Structure: My father is a very bright, but reserved, intellectual. He relates to other people, including me, almost solely on the head level. As his son, I learned I could get his attention by doing great things like making perfect grades, which I did. My father noticed me and gave me lots of praise for my achievements, but he never praised me for just being an all around good guy.

What you can do

If you want to understand and enhance your leadership capabilities, pay attention to important events and how you handle them—what you think, what you feel, what you do.

Then, look at your patterns of behavior over time. What responses have you tended to repeat when reacting to challenging events?

Then, ask yourself, how/when did I experience these feelings, thoughts, and behaviors in my first system? How did I learn to respond in this way? What is the story I am telling myself about these significant experiences? What implicit assumptions am I making that support this story? What are my feelings? My behaviors?

Then ask, what are other assumptions, feelings, and behaviors that would better fit my current leadership challenges?

If you can answer the above questions clearly, you are learning to see your leadership story and create a new one.

Future Posts

In ensuing posts, we will look at broader, archetypal cultural stories, why we create them, and how they shed light on our own leadership stories. Then we will summarize the process, the steps, the key questions you need to answer to see your systemic story and, if desired, to change it. Finally, we will examine the underlying transformation that often occurs when a leader truly sees her deep story and begins to create a new one.

Good journey, and to be continued….

——————

If you would like to learn more about story work and/or consider story coaching, feel free to call or email me at:

Steven P. Ober EdD
President: Chrysalis Executive Coaching & Consulting
Partner: Systems Perspectives, LLC
Office: PO Box 278, Oakham, MA 01068
Home: 278 Crocker Nye Rd., Oakham, MA 01068
O: 508.882.1025 M: 978.590.4219
Email: Steve@ChrysalisCoaching.org
www.ChrysalisCoaching.org

Steve is a senior executive coach and consultant. He has developed and successfully uses a powerful approach to leadership coaching, Creating your Leadership Story, which enables leaders to make deep, lasting improvements in their leadership effectiveness in short periods of time. He and a group of partners have created a breakthrough educational program, Coaching from a Systems Perspective, in which you can significantly enhance your abilities as a systemic leadership coach. See http://SystemsPerspectivesLLC.com.

G is for Gratitude

A-thank-you-heart-text

“I’m blessed – thanks!” This is how the finance guy of a local car dealer shared with us in response to the question that we are all asked daily, “how are you?” His response not only made us feel good, we ended up having a very meaningful conversation during our 15 minutes together. Even though this was a couple of years ago already, I have never forgotten how inspiring his response was. I’m still trying to change my habitual “I’m good” response to one of gratitude like above. Not only do we feel better when we choose a grateful response, we have the ability to elevate those around us.

Gratitude Teachers

There is so much I want to share about gratitude, as this is one of my favorite teaching and topics to live. All of the master teachers that I’m learning from stress the importance of gratitude. In fact I was just listening to an interview of Anthony Robbins who said that the secret to living is giving. I heard how Wayne Dwyer gives thanks whenever he sees a penny, dime or any change on the ground by picking it up and saying a prayer of gratitude for how financially blessed he is. During an interview with the authors of Project Everlasting as my husband and I recently won a national love-story competition (mentioned in C is for Connection blog) they said how the marriage masters interviewed for their book and documentary explained that love is a four letter word: GIVE!

Gratitude Reminders

What I need are gratitude reminders, those little things to help keep me on track to remember to stop and appreciate all the blessings in my life. If you could only choose one thing to work on in your life that you bring you the most happiness and abundance I believe it’s about learning how to be grateful. Embracing a new mindset – an “attitude of gratitude” has transformed my life. While I’ve always been an optimist by nature I realize how many of my thoughts were not. Yet practicing this skill over the years through keeping gratitude journals, researching it, teaching it all have helped me tremendously think grateful thoughts and thus act accordingly.

Gratitude in the Workplace

The first thing that I suggest to those at work who are struggling with someone in particular or with the workplace in general is to keep a gratitude journal. Every day for 30 days write at least one thing that you are grateful for with that person or that place. Then focus on that grateful thought for the day. You’ll be amazed how just shifting your thoughts for a month will provide you a new perspective. You might even be as grateful as my friend who did this experiment for 30 days. It was around day 23 when she called to tell me how good this attitude of gratitude was going with her boss. In fact she didn’t have to journal any more as he decided to leave the company! 🙂


Insert the word thank you into your thoughts and actions. This alone has helped me remember all the ordinary things that we take for granted to be thankful for. Meister Eckhart’s wise words tell us, “If the only prayer you say in your life is “thank you,” it would be enough. Linda and I would like to THANK YOU for taking the time to read our blog and provide comments.
How will you give and live gratitude today?

*********************

For more resources, see our Library topic Spirituality in the Workplace.

——————

Janae Bower is an inspirational speaker, award-winning author and training consultant. She founded Finding IT, a company that specializes in personal and professional development getting to the heart of what matters most.

Why we hate the performance review.

A-female-worker-performing-a-veview-of-employee-performances

Most employees in companies today are all too familiar with the concept of the performance review. Just the mention of this often dreaded occurrence of discussion with one’s supervisor where they get to critique every move you’ve made during the year while you sit ideally by is sure to send negative feelings throughout the mind’s of employees everywhere. The performance review generally has a similar effect on managers and supervisors as well. So why is this performance review so dreaded and loathed by many?

A few of the reasons are listed below.

Employees: Managers:
They have no control in the situation. Managers get to provide ratings and comments on multiple areas of performance that are most often subjective in nature. If an employee disagrees, they might get a small “employee comments” area to provide their rebuttal all the while knowing that if they push too much the person controlling their future still has control. Managers often dread the discussion of the employee performance review assuming the discussion will turn into a battle with the manager left to convince the employee that their ratings are accurate. Managers usually assume employees think they perform better than they actually do.
Reviews sheets are completed before the actual discussion occurs. Therefore bringing up comments has little effect on the actual rating which is most often tied to their annual increase which is usually only a few cents different from the person with the next highest or lowest rating. Managers are busy with tasks and goals of their own . Taking the time to thoroughly review a whole year’s worth of performance is time consuming. They often rush through the forms because the HR department has a deadline they are struggling to meet?
Employees are often forced to write a self evaluation prior to the meeting as well. Unfortunately, these usually only serve as annoyance to employees because the majority of the time it is ignored by the supervisor any way. The forms are too complicated, long, short or don’t cover what is really important to success in this department.

So, what’s the answer to overcoming the negativity around the performance appraisal? Here’s a few tips to get you started:

  1. Set clear expectations. Provide them on the first day of employment.
  2. Provide feedback all year. Create a culture where performance discussions are a regular part of the work day and review meetings are held at frequent intervals such as montly.
  3. Ask first, tell later. Begin a performance discussion by asking the employee to rate their performance. Have them provide examples of where they have met and exceeded the expectations.
  4. Do not complete the form until you have the discussions. Do monitor performance all year and have examples ready to discuss.
  5. Guarantee no surprises at the annual meeting. If you are waiting for annual meeting to discuss performance, you lost your chance to be effective.

How does your company handle the performance review? Why do you hate it?

Your thoughts and questions are always welcomed and encouraged!

For more resources, See the Human Resources library.

Sheri Mazurek is a training and human resource professional with over 16 years of management experience, and is skilled in all areas of employee management and human resource functions, with a specialty in learning and development. She is currently employed as the Human Resource Manager at EmployeeScreenIQ, a global leader in pre-employment background screening. Follow her on twitter @sherimaz!

Cultural Awareness when seeking new clients

Business manager shaking hands with new clients

I am not sure this is a training issue or a human performance issue, but recently I observed a situation where a Japanese firm was looking to do business with an American firm and the American firm was not prepared as they might have been and possibly lost the contract. Before seeking out new clients CEO’s and the like need to do is research.

Research the company you might be contracting with, look at their plant or business facilities see what their standards are for business and manufacturing, make sure you take a look at what type of quality control policies they adhere and aspire to. Then make sure when they visit your facilities that you make efforts to please them, if you find they require documentation of assembly procedures, that the documents are available, and so on. Remember they want to do business with you and your company. Make the effort to show them you are just as interested in their policies and their company. Know who you are doing business with, especially if the company is an overseas or Asian company.

With the global society we live in count on doing business with a foreign country at some point and time and remember to look outside our own cultural boundaries and be respectful of your guests and the outcome will be more successful. Think of the learning opportunities this might be providing and how much your new and potential business will me for employees and your company. Learn about some of the business customs and personal customs that your guest expect and show them you respect them enough to learn about them. I am sure they have done the same for your organization and you.

Leigh

Happy Training….

For more resources about training, see the Training library.

– Looking for an expert in training and development or human performance technology?
– Contact me: Leigh Dudley (Sassenach Training Services)  – Linkedin – 248-349-2881 or 248-277-2966
– Read my blog: Training and Development

Free Crisis Management Training for Colleges and Universities

A college hall full of students

I am offering free guest lectures in crisis management/crisis communications-related topics to any relevant college or university class, lectures to be delivered by webcam. At your end — project my image for the class to see. Then point your webcam at the class so I can see and hear them. It’s that easy. Contact me for more information.

——————————-
For more resources, see the Free Management Library topic: Crisis Management
——————————-

[Jonathan Bernstein is president of Bernstein Crisis Management, Inc. , an international crisis management consultancy, and author of Keeping the Wolves at Bay – Media Training.]

20 Power Marketing™ Tips

Marketing Tips

Guest Post by George Torok

Use these powerful yet simple tips from the national best-seller, “Secrets of Power Marketing: Promote Brand You” – the first guide to personal marketing for non-marketers.

  • Create and grant an annual award.
  • Send hand written congratulations and thank you notes.
  • Send greeting cards for some occasion other than Christmas.
  • Send postcards when you travel and even when you are at home.
  • Give a good book to special clients. Always sign it with a positive message.
  • Build relationships with the media before you need them.
  • Associate with winners – attend awards functions.
  • Build and maintain a database of clients, prospects, and key influencers.
  • Earn certifications and win awards from your associations – and tell everyone.
  • Ask happy customers to write testimonial letters for you.
  • Recruit your suppliers as marketing agents. They work for free.
  • Join and be active in your chamber of commerce.
  • Write tips sheets for your customers.
  • Write and send articles to magazines and newspapers.
  • Send a news release to the media every three months.
  • Do something crazy and newsworthy at least once a year.
  • Send photocopies of your news coverage to your clients.
  • Build and maintain an informative and interesting web site.
  • Sponsor a cause, event, charity or community group.
  • Volunteer for your association, charity or community group.

Have you had powerful experiences using any of these? Tell us about it!

What powerful marketing tactics work for you?

——————

For more resources, see our Library topics Marketing and Social Networking.

——————

© George Torok is co-author of “Secrets of Power Marketing: Promote Brand You”. To arrange your keynote speech or training program call 905-335-1997 or email George@Torok.com. To receive a free copy of 50 Power Marketing Ideas® and your free subscription to monthly marketing tips visit www.PowerMarketing.ca

Adaptive Leadership in Action – A Civic Leadership Coaching Scenario

A group work picture

Imagine this scenario…

The charismatic founder of a small (but influential) nonprofit resigns suddenly and moves across the ocean, leaving the organization in turmoil.

Stepping in quickly to clean up the mess, the Board promotes Douglas from Deputy Director to Acting ED.

Douglas has been in his new position for a month when the Board “strongly advises” him to assume all fiscal and administrative responsibilities of the organization – removing those duties from the portfolio of a senior staff member. Douglas knows that his direct report will not let go without a fight. But he pushes that knowledge out of his mind and begins to make plans for the change.

Douglas asks his Civic Leadership Coach to help him identify the steps for moving administrative responsibilities from one desk to another.

Making the Adaptive Leadership Mind-Shift

Adaptive Leadership Theory says that with “technical work” the problem is clear (The wrong person has responsibility for finances in Douglas’s organization) and the person in authority (Douglas) needs to optimize executive of the solution (Rewrite the job descriptions and act accordingly).

Douglas’s Coach recognizes that he is thinking of the situation as a “Technical Problem.” She encourages him to consider “Adaptive” interpretations.

Leading Adaptively Means Moving Beyond Default Interpretations

Pushing against Douglas’s default interpretation (“The senior staff member is creating problems, and leadership requires that I get him to see things the board’s way”), the Coach’s questions help Douglas shift his perspective of the problem from “technical and individual” to “adaptive and systemic.” Douglas recognizes the great degree to which the organization has been knocked out of balance by the founder’s untimely exit. He acknowledges the high levels of distress and the conflicting values that have led to stonewalling by the senior staff member, and to less obvious signals of distress from other members of both staff and board. Realizing the systemic (adaptive) nature of the challenge he is facing, Douglas acknowledges that the temperature in the organizational system has become too hot for most people to handle. He and his Coach consider ways to turn down the heat just enough to allow people to see the situation clearly.

Adaptive Leadership Requires Smart-Risks and Experimentation

By the end of the coaching session, Douglas understands that his major leadership challenge will be helping everyone identify and accept their piece of the adaptive work of creating a strong, post-founder organization. He resolves to experiment, that very afternoon, by initiating conversation with the staff about their loss, hurt, and grief related to the founders’ departure.

~ Guest blogger Julia Fabris McBride is the Coaching Project Director at the Kansas Leadership Center. Visit her online at www.CoachJulia.com.

The Planning Study: (Part #3 of 3 – Implementation)

an-NPO-executive-conducting-a-face-to-face-interview-with-a-potential-cultivator

Considering the two major objectives in conducting the interviews, determination how/if a program/project/activity should be implemented and beginning the cultivation of those folks who could help make it happen, it is essential, as with all serious development activities, that those interviews be face-to-face.

You can’t be taken very seriously and you can’t read body language over the phone; and, a mailed “survey” doesn’t give the option to ask follow-up questions nor allow the interviewer to digress and/or “pick the subject’s brain.”

Being face-to-face highlights the importance of the process and, thereby, suggests that the interviewee’s thoughts/comments/reactions are very important to that process.

To prepare for the interviews, each potential interviewee is sent a brief personal note to prepare them for the phone call arranging an interview appointment.

At the risk of sounding biased or self-serving, and with having been doing this for over thirty years, I suggest that the best structure for a “Planning Study” is to have an outsider (an experienced study consultant) work with the NPO to design and plan the study and to conduct the interviews.

An outsider is perceived as being objective. S/he is seen (by the interviewees) as not having an “agenda” … not focused on a specific outcome. The objective outsider is “merely” gathering data that will help the NPO “plan for the future.”

After each interview, the interviewer should generate a report summarizing the respondent’s thoughts/attitudes, and suggesting what the next step(s) might be to further cultivate that person and get him/her to the point where s/he will want to be part of the NPO’s projects, programs and/or activities.
=-=-=-=-=-=-=-=-=-=-=-=-=-=

Have a question about starting or expanding your fundraising program? Email me at AskHank@Major-Capital-Giving.com. With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, we’ll do our best to answer your question.

Systems Thinking- What’s That?


It was 1968 when an obscure academic at the University of Edmonton, Ludwig Von Bertalanffy, publish the book General Systems Theory. It was the first major look at the foundations and applications of systems thinking across a broad array of practical and scientific fields. Starting with the individual organism he demonstrated that the systems view and principles extended throughout biology, physics, chemistry, philosophy and cultural anthropology as well as sociology and psychiatry. His insights were profound because they had so many implications toward a theory of development and growth.

Living Systems

Organizations are living systems. And every living systems is essentially an open system, it is in continuous exchange with its environment. All systems work to secure in-puts of various kinds, and transform these into valued outputs and the whole organization is open to environmental influences to which the organization must respond. Input, transformation and output: this is basic process-task in the architecture of systems.

The systems vantage point is the whole operation within its environment operating within a steady state, which keeps it viable. The steady state is called homeostasis and relies on feedback to self-correct. It is maintained an optimal distance from equilibrium and it is what enables a system to do work. Through this steady state the system remains constant in its composition, in spite of continuous irreversible process, importing and exporting, building up and breaking down taking place. Growth is toward higher states of differentiation and complexity where there are fixed rules and flexible strategies; a principle called Eqifinality, where there are a lot of different ways to get to the same goal. One of the primary goals of any system is for balance, a regulated steady state, and there are many ways to attain balance. Systems are purposeful and they are self-controlling- they use feedback to self-correct. This is the cybernetic rather than the administrative view of the world.

Look for Boundaries to Analyze Systems

A systems structure is its components and attributes within a boundary. All systems and sub-systems act across boundaries. Management is always across boundaries. Organizations create specialized functions, which are differentiated from other parts of the system but then have to be integrated during the performance of a complex task. Integration and Differentiation are important “system principles.” Boundaries can be fairly open or tightly closed. To cross a boundary you have to be “coded” properly. Sub-systems are interrelated and experience different rates of change. Add to all this, is a very important principle of open systems: managing the polarities of the simultaneous need for both differentiation and integration. You can see this when you look at the different cognitive and emotional orientations of various managers and the formal structures around them. And at the same time we need integration, which is the quality of the collaboration that exists among departments that are required to achieve unity of effort by the environment. The questions that need to be asked are:

What are the strategic parts of the system?

What is the nature of their mutual interdependency?

What are the main processes that link the parts and facilitate their adjustment to each other?

What are the goals sought by the system?

—————————

For more resources, see the Library topics Consulting and Organizational Development.

—————————————————

Jim Smith has over 40 years of organization development experience in a wide range of organizations. He can be reached at ChangeAgents@gmail.com