Book Review – Holocracy The Revolutionary Management System that Abolishes Hierarchy: Brian Robertson (Originally published in AI Practitioner)

Why this book?

This book claims to offer an alternative way of organizing that breaks away from the command and control model or as Brain calls it ‘the predict and control’ model. This seemed sufficiently in line with our aspirations to warrant further investigation.

Brief account of the book

The book has noble, honourable and inspiring intentions: it offers holocracy as a ‘new operating system’ for organizations that will create a ‘peer-to-peer distributed authority system’. This operating system creates empowered people who are clear about the boundaries of their authority, about what they can expect from others, and are able to be highly effective in their roles.

In this model the organizing process itself becomes the ultimate power, more than any individual, and every individual can have a voice in designing and altering the process. It is a flat system of roles and links that delivers high autonomy. It is predicated on a system of roles (essentially disembodied job descriptions), decision-making circles (meetings by another name) and a process of links. It bravely attempts both to relieve leaders of the pressure of the demand of omnipotence, and to make it possible for weak signals of dysfunction, lack of alignment, gaps in accountability, missed opportunities etc. to be attended to promptly and effectively by empowered individuals. It offers a clear process for distinguishing working in the business from working on the business. It presents a view of strategy as ‘dynamic steering’ by simple rules or principles towards a general purpose. In this way it attempts to simulate evolutionary development processes and indeed sees itself as an evolutionary model.

Holocracy - Too much to ask?

Reading this book was an interesting experience. The book is a ‘how to’ book and it sets out the process model in great detail, describing the purpose of key facilitator roles and the process of key tactical and governance meetings (circles in the terminology of the model). It’s not hard to tell that the author and originator of this model has a software development background. My initial impression reading it was reminiscent of getting to grips with the complex board games of Allies and Axis that my sons and husband loved to play some years ago: a complex set of rules about the properties and powers of various pieces and cards subject to the rules of the dice. In the early stages as much time was spent consulting the rule-book as playing the game. As I read on I realised there was a strong binary flavour underpinning much of the process, an ‘if this then that’ logic driven by an implicit flow chart of binary decision-making. The author’s argument is that these tight constraints work to create an empowered freedom within them. However it is noticeable that much of the instruction reads ‘no discussion allowed’ as the process is strictly followed. In essence he is trying to programme out the negative aspects of the human element in this organizing process and to create an organisational process that functions effectively despite the emotional and relational wayward behaviour of people. This takes a lot of discipline on the part of all the players; which is to say it takes organizational energy.

The author is honest enough to point out that this new process doesn’t always ‘take’ in organizations despite various people’s interest, energy and support. He identifies that the key challenge, which is also at the heart of the model’s power, is the need for those with current power in the system to give it up. The author is of the opinion that after an initial period of painful discipline, the benefits will become clearer to all and the process will become more self-maintaining. It is clear that not all organizations make it over the hump. Similarly, while initially he took a whole-system ‘all or nothing’ approach to implementation, he has since softened his views and in this book he offers a chapter on holocracy-lite possibilities that offers guidance on how to implement parts of the process.

In summary

The book is well written, offering a clear and detailed explanation of the holocracy organizing process with a worked case study and anecdotes from experience used to illuminate how the various meetings and roles work.

My take on the model presented

This model is likely to appeal to those who have great faith in rationality and like highly structured, detailed and disciplined processes. In this sense it reads as very bureaucratic. It put me in mind of LEAN, another process that, in theory, makes perfect sense, however in practice often takes a lot of energy to maintain. Both demand great human discipline. Robertson is clear that the role of facilitator ‘requires that you override your instinct to be polite or ‘nice’ and that you cut people off if they speak out of turn’, amongst other skills and abilities. In this way it is trying to programme out the emotional irrational human decision-making influences such as ego, fear and group think, to create a less contaminated system of governance.

In many ways this model seems aligned to Appreciative Inquiry and co-creative ways of thinking. For example it is more wedded to biological than mechanical metaphors, it prioritises adaptability over predictability, and it is focused on releasing collective intelligence within a leader-ful organization. However, it seems to work against human nature, or human psychology, rather than with it. It is this constant fight against core features of human systems that, in my opinion, is at the heart of the gap between the promise of these kinds of models and the frequent experience of the lived reality.

However, I do think it offers a real, well thought out, and to some extend tried and tested alternative to our current creaking-under-the-strain-in-the-modern-era command and control organisational model. It will be interesting to see to what extent it is adapted across the organizational domain and I would love to hear from anyone who has either direct experience of working in an organization based on this model, or who has attended training on it.

Other Resources

Much more about organisational change can be found in Sarah’s new book Positive Psychology and Change

Sarah Lewis is the owner and principal psychologist of Appreciating Change. She is author of ‘Positive Psychology at Work’ and ‘Positive Psychology for Change’ both published by Wiley. She is also the lead author of 'Appreciative Inquiry for Change Management'.

See more Book Reviews and other Emergent Change, Leadership Skills and Organisational Development Strategy articles in the Knowledge Warehouse.

APPRECIATING CHANGE CAN HELP

Appreciating Change is skilled and experienced at supporting leaders in working in this challenging, exciting and productive way with their organizations. Find out more by looking at how we help with Leadership, Culture change and with employee Engagement.

For further information on these alternative approaches to change, please contact us or phone 07973 782 715. A selection of strength card packs are available from our online store.

Why We Need To Do Change Differently

In the twenty-first century we need to be doing change differently. Whole-system change methodologies such as Appreciative Inquiry and World Café offer alternative ways of creating organisational change and are explained in my new book Positive Psychology and Change

So Why Do We Need To Do Change Differently

1. Because the old ways are too slow and hard

Traditionally change has been a top-down, linear, compliance process; first designed and then implemented. In today’s fast paced world this takes too long and is too hard. People resist the pressure. Instead we need change that is whole-system owned and generated, focused on maximising tomorrow not fixing yesterday.

2. Because the future is created by our actions and our imagination

Forecasting is tricky in an unpredictable world of disjointed and disruptive change. When it’s hard to plan a future we need to use our imagination to create attractive possibilities that inspire us, co-ordinate our efforts and pull us forward. Our analytic powers help us analyse data, our imaginative powers create hope, optimism and forward motion i.e. change.

3. Because organisational growth is a systemic phenomena

The evidence is mounting that good work places and profitability can grow together; that beyond a certain point of profitability-establishment greater returns come from investing in social capital features like workforce morale, camaraderie, worker benefits, and community action. And from ensuring that employees feel hopeful, encouraged and appreciated.

Timberland, Merek Corporation, Cascade, Synovus Financial Corporation, FedEx Freight, Southwest Airlines, The Green Mountain Coffee Corporation, Fairmount Minerals and the Marine Corp are all testament to the possibility of doing the right thing and doing well. The current edition of Firms of Endearment lists 28 US publicly funded companies, 29 US private companies and 15 Non-US companies that are good organizations and exceptionally profitable.

4. Because relational reserves are key to change resilience

Organisational resilience, an attribute called on during change, is as important to organisational change success as financial reserves. Relational reserves are an expression of the accumulated goodwill and mutual trust that helps organizations bounce-back quicker from disruption or trauma.

5. Because we need to conceive of successful change differently

Pushing change into, down or through an organization takes too long. We need ways of achieving organization change that allow action to happen simultaneously in an interconnected way across the organization, not as a dependent series of actions. To relish this we need to recast our understanding of both change and success to allow the celebration of adaptation, direction shift and even project abandonment, rather than viewing these as signs of failure.

6. Because mistakes can be costly

Separating the change shapers from the change implementers and recipients can be costly as errors in understanding, judgement and knowledge only come to light when time and money (not to mention hope and commitment) have already been invested. People pointing out such challenges late in the day risk being labelled as obstructive or resistant. Better to involve those who will be effecting any changes from the very beginning.

7. Because change needs more buyers and less sellers

Have you ever walked into a shop, money in hand, keen to buy only to leave empty-handed frustrated by the salesperson’s emphasis on selling rather than listening to you? Maybe they dazzled with jargon, or listed irrelevant features, or tried to push their favourite version on to you despite its unsuitability to your situation? At its worse organisational change can feel like a bad sales job. Good salespeople ask questions and listen before they talk, so should organizations.

8. Because we need to use our intelligence

The world is a demanding place to do business. Organizations need to be able to access the intelligence of all involved. We need leaderful organizations not leader-dependent ones.

Much more about the need to do change differently and guidance on how to do it, can be found in my new book Positive Psychology and Change

Other Resources

Much more about strengths and managerial techniques such as the ones mentioned here can be found in Sarah’s new book Positive Psychology and Change

Sarah Lewis is the owner and principal psychologist of Appreciating Change. She is author of ‘Positive Psychology at Work’ and ‘Positive Psychology for Change’ both published by Wiley. She is also the lead author of 'Appreciative Inquiry for Change Management', by Kogan Page, the second edition is out in September.

See more Change, Leadership, Resistance To Change and Thought Provoking articles in the Knowledge Warehouse.

APPRECIATING CHANGE CAN HELP

Appreciating Change is skilled and experienced at supporting leaders in working in this challenging, exciting and productive way with their organizations. Find out more by looking at how we help with Leadership, Culture change and with employee Engagement.

For further information on these alternative approaches to change, please contact us or phone 07973 782 715. A selection of strength card packs are available from our online store.

The Distinctive Nature of Co-creative Change

How is it different, why is it better?

Co-creative approaches to organisational change such as Appreciative Inquiry, Open Space, and World Café have some very distinctive features that differentiate them from more familiar top-down planned approaches to change.

1. Change is a many-to-many rather than one-to-many process

In co-creative change a lot can happen in a short space of time as conversation (and change) takes place simultaneously amongst people in various groups rather than relying on a linear transmission from top to bottom. It can feel messier and less controlled but the benefits of active engagement, participation and commitment far outweigh these concerns.

2. They work on the understanding that the world is socially constructed

By allowing that we live in social worlds that are constructed by interactions in relationship, these approaches recognise that beliefs, and so the potential for action, can be affected by processes or events. The co-creative change processes allow people to experience each other, and the world, differently and so adjust their mental maps of their social world, creating the potential for change.

3. Conversation is a dynamic process

Co-creative approaches to organisational change recognize that conversations and events take place in a dynamic context of mutual and reflexive influence. I act and speak in the context of what you are doing and saying and vice versa. This means that conversation is not a passive process for conveying information but is rather an active process for creation, and so holds the potential to create change.

4. Organisations are about patterns so changing organizations is about changing patterns

All of the above culminates in the understanding that organisational habits, culture, ways of being are held in place by the habitual patterns of conversation and interaction. Change these and you change the organization.

5. Change can occur at many levels simultaneously

Rather than being focused on rolling out a pre-designed planned change, these approaches are much more focused on growing change from the ground up. A useful metaphor to convey this is that of by encouraging of lots of different plants to flourish on the forest floor by changing the bigger context, such as clearing part of the canopy to allow in more light.

6. They connect to values to gain commitment

These approaches connect to people’s values as well as their analytic abilities. Appreciative Inquiry discovery interviews, for instance, quickly reveal people’s deep values about their organization and allow people with divergent surface views to form a meaningful connection at a deeper level that aids the negotiation of difference.

7. They create hope and other positive emotions

Appreciative Inquiry by design, and the other approaches by intention, focus on creating positive emotional states in the participants, particularly hope. Hope is a tremendously motivating emotion and is key source of energy for engaging with the disruption of change. By building hope in the group that the situation can be improved, these processes create great energy for the journey ahead.

8. They encourage high-quality connections and the formation of high-energy networks

These are two concepts from positive psychology and increasingly research is demonstrating that they have a positive effect on creativity, problem-solving and performance. The co-creation change methodologies are highly relational and facilitate the development of meaningful relationships particularly across silo or functional boundaries, increasing the ability of the whole organization to change in synchronisation with itself.

9. They allow people to feel heard

The very essence of the co-creative approaches is the emphasis on voice and dialogue as key components of change. As people are engaged with and have an opportunity to input to discussions about the need for change from the very beginning, and are also able to influence the design of change, they feel their voices and needs are being heard by the organization as the change unfolds. This greatly lessens the challenges of overcoming resistance or getting buy-in.

Appreciating Change specialises in helping organizations achieve positive, rapid and sustainable change.

Other Resources

Much more about the features of co-creative change, guidance on how to do it, and practical information about on the key methodologies mentioned here can be found in Sarah’ new book Positive Psychology and Change

See more Thought Provoking articles in the Knowledge Warehouse.

APPRECIATING CHANGE CAN HELP

Appreciating Change is skilled and experienced at supporting leaders in working in this challenging, exciting and productive way with their organizations. Find out more by looking at how we help with Leadership, Culture change and with employee Engagement.

For further information on these alternative approaches to change, please contact us or phone 07973 782 715

Working with the need for convergence in a divergent conversation

Appreciative Inquiry and other co-creative methodologies are essentially divergent ways of working together; the emphasis is on the value of diversity and variety. Such ways of working can trigger a pressure to converge on a few key points very early in the process, indeed sometimes before the event has even begun. This pressure can be the expression of various different needs, for example:

• The need for sense of coherence and co-ordination
• The need for sense of moving forward or making progress
• The need for a reassurance that there is a degree of commonality amongst the differences and divergence being expressed (that the group isn’t going to splinter)
• A request for amplification of points of agreement (a visibility of commonality)
• A need for a convincing story for other audiences of the value of the day
• A desire for a record of the intellectual learning, to accompany the experiential learning of the participants
• A request for tangibility
• A demand for a guarantee that something different will now happen

At its root this is often a request for a reassurance that there is a positive, sustainable momentum to action that won’t die the moment the session ends; this fear is often based on prior experience of away-days. There is often a fear that the day is ‘just a talking shop’ and that unless clear outcomes and actions are written down ‘nothing will happen’.

In addition, our ‘emergent’ ‘exploratory’ ‘unfolding’ description of how the day will run can feel very alarming to those commissioning our work, such as leaders, used to much more controlled ‘facilitation’. A focus on the need to converge can be a request for reassurance that the ‘complexity and diversity’ they are agreeing to work with can, in the end, be drawn back to somewhere safe and contained.

Ways to moderate this demand, so that it doesn’t distract from the day’s activities include:

• Bringing the leaders and other audiences into the event so they experience the change in the room, in the system, in the moment. This reduces the reliance on ‘planning’ as the driver of change.
• Working to help leaders understand that their role in this kind of change is to ‘ride’ the energy it produces; to co-ordinate activities rather than to command and control them. This reduces their feeling of needing to understand everything all at once.
• Working with leaders on their unchallenged or unquestioned stories of leadership, helping them behave differently around change and leadership. This can help reduce anxiety about being solely responsible for achieving change.

How to meet the need without compromising the spirit of our endeavors?

In discussing this we realized that there are two slightly different aspects to this. The first is a need to create sufficient coherence so that the system can move forward. This can be done very much in the same spirit as the rest of the day, with questions and activities focused on creating coherence amongst the group.

The second is the need to create a tangible or visible record of the level of agreement.

• 1.Making visible patterns and levels of coordination and coherence amongst the divergence.
• Use reflecting teams to reflect key points of agreement or action
• Use commitment and request conversations
• Have a last ‘action round’ for example in open space. Or a last ‘linking’ round of ‘golden nuggets’ from conversations in World Café
• Move into the domain of production – acting ‘as if’ we knew the world and therefore can have certainty.
• Ask those present questions such as, what story are we going to tell ourselves (and/or others) about what we have done here today and are going to do tomorrow and in the future? Who else needs to know? And how will you get the resources to do what you now believe needs doing?
• Ask people to make individual commitments to what they are now going to do differently or different
• Ask people ‘Given all we have discussed today, what is possible?’
• Ask the group what else needs to happen for them to go away convinced that something is going to change

How to create create some very tangible or visible record of the level of agreement.

• Use dots or ticks to get individuals to select out of all the ideas or points that have emerged, which are most important (or some other criteria) to them. Gives an instant ‘weighting’ picture.
• Popcorn. Get people to write on a post-it the most important thing that has come out of the last conversation, for them. Sort and theme
• Pyramid. Start people in pairs identifying four or five top things. Then pair up with another pair and produce a new list of top four or five etc. until whole group are narrowing down the last few contenders.
• Get projects (with first draft name) and what it is going to achieve, on flip charts with interested parties and a first step to making something happen.
• Help group prepare something for absent sponsors who appear at the end of the day, about the best of the day and intentions for the future.

A few further helpful hints

• Everything is everything else. In this instance how you work with commissioners and leaders from the beginning affects the helpfulness or otherwise of the hunger for convergence later on.
• Life is always a compromise
• That the leader focused on how convergence will be achieved is essentially asking:

‘How will I, and my organization, survive the diversity, complexity, confusion, multiplicity and richness, you are proposing to unleash? Please reassure me that we won’t fly apart, that it will be safe, that it will be productive’

This is a very reasonable request for reassurance. It is a strong sign that the person wants to go forward yet has concerns. The is challenge in offering sufficient reassurance so that we are able to continue moving towards the day, while maintaining sufficient freedom of movement to be able to work with the balance of need in the room on the day.

Appreciating Change will be delighted to come and facilitate divergent events to convergent ends for you!

The Economic Value Of Social Capital To Organizations

The Economic Value Of Social Capital To Organizations

What Is Social Capital?

Positive psychology understands social capital as a group or social phenomena that adds value by increasing trust and information flow around an organisation, however it can also be understood from an economic perspective.

From this perspective it can be defined as a combination of the number of relationships some one has, the economic usefulness to them of those relationships and the quality of them: effectively, how well known someone is, in what circles, and with what degree of affection. It is the social capital in an organisation that means that we care about the effect our work will have on the next part of the production chain, rather than slinging substandard work over the functional line saying, ‘done my bit, their problem now’.

Why Is It Important In Organisations?            

It is the social capital of an organisation that influences the return gained on the value of the financial and intellectual assets. It is what makes the whole greater than the sum of the parts. It is social capital that releases organisational good citizen behaviour, high-level motivation and that ‘good feeling’ about work. Social capital is the antidote to the ubiquitous silo mentality that permeates most larger organizations: the tribal mentality that can act against the fullest realisation of the potential value of the organisational assets.

An organisation can purposefully invest in this valuable source of capital like any other. And as with any other investment, it is possible to identify the areas of investment likely to create the greatest return, and therefore carefully target investment activity. For instance it is probably not going to boost an organisations’ social capital if it invests in helping the canteen staff to get to know the board as much as it would to invest in building social capital within the board (which isn’t to say that the first option doesn’t have some value, and in some situations might have the greater value).

Why Don’t Organisations Invest More In Social Capital?

Often leaders can intuitively see the value of social capital, however an inability to quantify this capital, and the return on their investment, prevents them from taking the risk of investing in it. Interestingly intellectual capital, a similarly non-physical form of capital, does show financial returns that can be directly attributed to it on the balance sheet e.g. licensing revenue and royalties; these returns can be used by leaders to justify the initial investment they made in developing intellectual capital. At present no such mechanism exists for capturing and measuring the return on social capital investment.

Measuring the Economic Value of Social Capital

It is tempting to conclude from this that social capital can never exist in the financial sense in the way that machines, buildings and patents do; that it is not worth leaders making the additional effort to try and identify its effect on the balance sheet. Recent developments in economics suggests such thinking can be challenged. Social capital not only exists as a factor in economics, but exists to such a real and definable extent that it is now used by banks as collateral for loans, particularly micro-loans.

The Micro-Finance Story

Billions of dollars have been lent to (and repaid by) tens of millions of people in areas of the world where social capital is the only form of capital available, and not just in the third world: if you’re reading this in London, Manchester, Birmingham or Glasgow, to name but a few places, this is probably happening within a few miles of you.

Social capital is the basis of micro-finance, the practice of lending very small amounts of money to the very poor. It has already revolutionised development policy across the world. The problem, identified by Muhammad Yunus in Bangladesh in the 1970s, was that the poor couldn’t borrow money from commercial sources not because they couldn’t pay it back but that they had no incentive to do so. This was because they had no collateral that could be repossessed if they defaulted. As a consequence no private lenders were prepared to lend them money.  Yunus’s experience with the Grameen Bank, and that of other micro-finance institutions, is that the poor, properly incentivised, have the highest repayment rates in the world when lent small amounts, almost 97%.

Yunus incentivised individuals by making possible future loans to others in the village conditional on the repayment of the loan by each borrower. In other words, he secured the loan against each villager’s social capital. If she defaulted, none of her friends or neighbours would get loans and she (the vast majority of micro-finance customers are women) would be persona non grata in the village. This suggests thatfor a particular individual her stock of social capital must be worth more to her than the value of the loan or she would not repay it. A Bangladeshi villager making the decision to repay a $20 loan is making a sophisticated calculation about the value of an intangible asset: her social capital. This clear behavioural indicator of choice suggests that a financial value can be put on an individual’s social capital.

Can Social Capital Be Measured In Organisations?

The micro-finance experience suggests that social capital can be measured.  The question is how can organisational leaders find a way of making such calculations for the stock of social capital in their organisations?

There is not a yet a clear answer on this. We can begin to recognise the social capital in organisations by reflecting it in our ways of talking about our organisation. For example referring the member of staff who takes time to contact colleagues to check out their needs and expectations, or who takes the time to let others know something has changed so they don’t waste their time, as invaluable, doesn’t help us recognise the value she adds. On the other hand saying she, and her actions, are valuable, starts to lead us to ask the right questions about ‘How valuable?’, and ‘How can we measure that?’ and ‘How much value does that behaviour add?’

How Can We Build Social Capital In Organisations?

We may not yet know how to measure social capital in organisations with any financial precision, but we do know how to invest in it and build it. Organisational development activities developed over the last few years, based on an understanding of the organisation as a living human system, act to increase social capital. Appreciating Change is an expert in these social capital investment activities.

Article by Sarah Lewis and Jem Smith

Other Resources

More on using Appreciative Inquiry and other positive psychology techniques at work can be found in Sarah’s book Positive Psychology at Work.

See more Thought Provoking articles in the Knowledge Warehouse.

APPRECIATING CHANGE CAN HELP

Appreciating Change is skilled and experienced at supporting leaders in working in this challenging, exciting and productive way with their organizations. Find out more by looking at how we help with Leadership, Culture change and with employee Engagement.

For further information on these alternative approaches to change, please contact us or phone 07973 782 715

Women Make Groups Cleverer! (Evidence for collective intelligence)

Fascinating research on group performance suggests two key things:

1. That the collective intelligence of a group is more than the sum of its parts
2. That the presence of women in a group is key to high collective intelligence

How do we know this?

Researchers worked with 699 people, divided them into groups of 3-5 people and set them various tasks. The wide range of these tasks was designed to measure all sorts of different aspects of intelligence. These included visual puzzles, brainstorming, making collective moral judgments, and negotiating over limited resources. They also measured the individual intelligence of everyone. They then tried to see how the individual intelligence scores related to the team performance scores. 

When they did a factor analysis of the group performance scores and the intelligence measures, they found one factor that accounted for 43% of the variance and that was not related to either average intelligence of group members nor the maximum intelligence score. It seemed to be something over and above a simple aggregate of intelligence. They consider this factor to represent a measure of the group’s collective intelligence, with collective intelligence defined as ‘the general ability of the group to perform a wide variety of tasks’. The suggestion is that collective intelligence is an emergent group phenomenon that is a product of more than just existing intelligence in the group.

They ran three different studies of this type and compared results. The findings held. On each occasion collective intelligence was found to better account for group performance than measures of individual member intelligence.

So if individual intelligence doesn’t account for group intelligence, what does? The researchers moved on to examine a number of group and individual factors that might be predictors of collective intelligence. Interestingly many of the factors that are thought to be associated with group performance, such as group cohesion, motivation and satisfaction, didn’t predict group performance.

The Findings

Instead they found:

• That there is a group factor of collective intelligence, conceptually similar to the idea of the individual factor of general intelligence, that has a global effect on performance on many different tasks, and accounts for 43% of the variance in performance. It also is strongly predictive of performance.
• That collective intelligence is not strongly correlated with the average or maximum intelligence in the group.
• That collective intelligence is strongly correlated with the average social sensitivity of the group members. This is the strongest predictive factor of group collective intelligence, which, in turn, is a strong predictor of group task performance on a wide range of tasks.
• That collective intelligence is strongly correlated with the equality of distribution of turn taking.
• That collective intelligence is strongly correlated with the proportion of women in the group.
• It is suspected that the last correlation is related to the others e.g. that the presence of women tends to increase the social sensitivity and the equality of turn-taking in the group.

What to do to improve or enhance the collective intelligence of your project or work groups?

• Help the group recognize that collective intelligence in group decision making and performance is an emergent phenomena of group interaction patterns.
• Help the group recognize that the emotional life of the group is as important as its intellectual life.
• Ensure their discussion processes allow all voices to be heard, and that people take turns to talk, and to listen.
• Ensure that the group is mixed by gender.

For further information see Woolley A W Charbis, C F, Pentland A, Hashmi N, Malone T W (2010) Evidence for a collective intelligence factor in the performance of human groups. Science Express. www.scienceexpress.org/30 September 2010

Other Resources

More on using Appreciative Inquiry and other positive psychology techniques at work can be found in Sarah’s book Positive Psychology at Work.

See more Thought Provoking articles in the Knowledge Warehouse.

APPRECIATING CHANGE CAN HELP

Appreciating Change is skilled and experienced at supporting leaders in working in this challenging, exciting and productive way with their organizations. Find out more by looking at how we help with Leadership, Culture change and with employee Engagement.

For further information on these alternative approaches to change, please contact us or phone 07973 782 715

When A Divergent Discussion Must Produce A Convergent Conclusion

A number of Appreciative Inquiry practitioners were having a conversation concerning the strong demand frequently experienced from commissioners and contractors for a highly convergent end to a discursive, divergent event.

We asked ourselves two questions: What was this request an expression of? and How could we meet it without compromising the spirit of our endeavours? Here are the high points of our discussion.

What is this hunger for convergence an expression of?

• A desire for a sense of coherence and co-ordination, going forward
• A reassurance of a degree of commonality amongst the differences and divergence being expressed
• A request for amplification of points of agreement
• A need for a convincing story for other audiences of the value of the day
• A desire for a record of the intellectual learning, to accompany the experiential learning of the participants
• A request for tangibility
• A demand for a guarantee that something different will now happen

At its root, we felt, this is often a request for a reassurance that there is a positive, sustainable momentum to action that won’t die the moment the session ends; this fear is often based on prior experience of away-days. There is often a fear that the day is ‘just a talking shop’ and that unless clear outcomes and actions are written down ‘nothing will happen’. In addition, our description of how the day will run can feel very alarming to those used to much more controlled ‘facilitation’ and this can be a request for reassurance that the ‘complexity and diversity’ they are agreeing to work with can, in the end, be drawn back to somewhere safe and contained.

We also discussed how to moderate this demand, so that it doesn’t distract from the day’s activities. Our suggestions are: 

• Include leaders and other audiences in the event so they experience the change in the room, in the system, in the moment. This reduces the reliance on ‘planning’ as the driver of change
• Work to help leaders understand that their role in this kind of change is to ‘ride’ the energy it produces; to co-ordinate activities not command and control them. This reduces their feeling of needing to understand everything all at once
• Work with leaders on their unchallenged or unquestioned stories of leadership, help them behave differently around change and leadership. This can help reduce anxiety about being solely responsible for achieving change

How to meet the need without compromising the spirit of our endeavours?

In discussing this we realised that there are two slightly different aspects to this. The first is a need to create sufficient coherence so that the system can move forward. This can be done very much in the same spirit as the rest of the day, with questions and activities focused on creating coherence amongst the group. Here are some examples we came up with of how one might do that:

1. Using reflecting teams to reflect key points of agreement or action
2. Using commitment and request conversations
3. Having a last ‘action round’ for example in open space. Or a last ‘linking’ round of ‘golden nuggets’ from conversations in World Cafe
4. Moving into the domain of production – acting ‘as if’ we knew the world and therefore can have certainty
5. Asking those present questions such as, what story are we going to tell ourselves (and/or others) about what we have done here today and are going to do tomorrow and in the future? Who else needs to know? And how will you get the resources to do what you now believe needs doing?
6. Ask people to make individual commitments to what they are now going to do differently or different
7. Given all we have discussed today, what is possible?
8. Ask the group what else needs to happen for them to go away convinced that something is going to change

On the other hand, sometimes there is a need to create some very tangible or visible record of the level of agreement. Here are some suggestions for achieving this:

1. Using dots or ticks to get individuals to select out of all the ideas or points that have emerged, which are most important (or some other criteria) to them. Gives an instant ‘weighting’ picture.
2. Popcorn. Get people to write on a post-it the most important thing that has come out of the last conversation, for them. Sort and theme
3. Pyramid. Start people in pairs identifying four or five top things. Then pair up with another pair and produce a new list of top four or five etc until whole group are narrowing down the last few contenders.
4. Get projects (with first draft name) and what it is going to achieve, on flip charts with interested parties and a first step to making something happen
5. Help group prepare something for absent sponsors who appear at the end of the day, about the best of the day and intentions for the future

During our conversation a few things became clear or were reinforced for me.

Everything is everything else. In this instance how you work with commissioners and leaders from the beginning affects the helpfulness or otherwise of the hunger for convergence later on.

Life is always a compromise

That I need to develop better answers to the unspoken question of the leader who is taking a huge risk in doing something very different and very outside their range of experience: ‘How will I, and my organization, survive the diversity, complexity, confusion, multiplicity and richness, you are proposing to unleash? Please reassure me that we won’t fly apart, that it will be safe, that it will be productive’ This is a very reasonable request for reassurance. It is a strong sign that the person wants to go forward yet has concerns, and the challenge for me is in offering sufficient reassurance so that we are able to continue moving towards the day, while maintaining sufficient freedom of movement to be able to work with the balance of need in the room on the day.

Appreciating Change will be delighted to come and facilitate divergent events to convergent ends for you!

Other Resources

More on using Appreciative Inquiry and other positive psychology techniques at work can be found in Sarah’s book Positive Psychology at Work.

See more Thought Provoking articles in the  Knowledge Warehouse.

Appreciating Change Can Help

Appreciating Change is skilled and experienced at supporting leaders in working in this challenging, exciting and productive way with their organizations. Find out more by looking at how we help with Leadership, Culture change and with employee Engagement.

For further information on these alternative approaches to change, please contact us or phone 07973 782 715

Why We Should Make Decisions In Our Organizations Like Brains Not Computers

Proof that brains are more efficient than computers

Cognitive research illuminates how our brains make decisions, and how they are different from computers. Compared to computers our brains are slow, noisy and imprecise. And, paradoxically perhaps, this makes them much more efficient than computers, but only because brains have one big advantage over computers: they have goals.

 The importance of goals to decision-making

Essentially life consists of billions of choice points. Choice is about value: what do we value over what? Having goals makes choice a lot easier: it makes it possible to assign values to options, as some have more value in terms of our goals than others. If I am trying to get to London, and have come across a signpost labeled Dublin one way and London the other, one sign has much more value to me than the other.  So we make choices based on those values. Goals allow us, in times of uncertainty to act efficiently and not waste energy.

Brains are oddly efficient

Brains possess all the characteristics of highly efficient computational machines. Efficient computational devices, like brains, follow four principles

•  Drain batteries slowly
•  Save space
•  Save bandwidth
•  Have goals

It is the enactment of these principles that make them (relative to fast, quiet, precise yet goalless and energy guzzling, wasteful computers) slow, noisy, imprecise and yet highly efficient.

How do these principles translate into organizations?

 Drain batteries slowly

This means avoid high-energy spikes in decision-making by using slow and soft processes that use minimal energy. The implication for organizational life would be to aim for soft, slow decision-making (a pattern of small groups of people making small decisions frequently) rather than patterns of spiky decision-making (infrequent decisions involving everyone).

Save space

This dictum suggests that our computational device should have as few (message or information carrying) wires as possible, and those should be shorter rather than longer. This suggests understanding organizational communication as network rather than pyramid based. So communication (and decision-making is based on short, local messages rather than lots of long ‘wires’ to get the same message from the top to the bottom of the organization and tight ‘knots’ where decisions get made.

Save bandwidth

The dictums here are: stay off the line, don’t repeat yourself and be as noisy (as in random) as possible! This suggests to me that the centralized bombardment communication process of constant repetition of ‘the message’, broadcast across the organization, offering exact and precise instructions, at regular and predictable intervals, is highly inefficient. Instead information needs to be offered in local contexts in different ways, when appropriate.

Have goals

In efficiency terms this means: having a view of the destination but being imprecise about how to reach it; creating mental models; and making ongoing adjustments. In organizations this could mean creating rich mental models of the goals and using local guidance and expertise to achieve them, making ongoing adjustments. This describes an emergent change approach.

Message for leaders

• Create goals to act as a valuation system for decision-making
• Create rich mental pictures of goals
• Leave goal achievement processes imprecise, work with local knowledge, adjusting plans as options emerge
•  Devolve decision making to the lowest level
• Encourage frequent, small-scale local decision-making and innovation
• Spread the message locally, contextually, and opportunistically; don’t waste energy broadcasting to the nation
•  Use the emergent approach to manage, lead or ride change

Other Resources

More on using Appreciative Inquiry and other positive psychology techniques at work can be found in Sarah’s book Positive Psychology at Work.

See more Thought Provoking articles in the  Knowledge Warehouse.

Appreciating Change Can Help

Appreciating Change is skilled and experienced at supporting leaders in working in this challenging, exciting and productive way with their organizations. Find out more by looking at how we help with Leadership, Culture change and with employee Engagement.

For further information on these alternative approaches to change, please contact us or phone 07973 782 715

The Hidden Costs Of Rudeness

We all know rudeness is an unpleasant aspect of life, did you also know it has a cost attached? Two researchers, Porath and Erez (2011), have spent years exploring the effect of rudeness on people at work, this is what they have found:

Between 1998 and 2005 the percentage of employees who reported experiencing rudeness once or more in a week doubled from almost 25% to almost 50%. Indeed in 2005 25% of employees reported experiencing rudeness at least once a day.

Surveys reveal that after experiencing rudeness most people lose time and focus, make efforts to avoid the person, work less and slack off more, and think more about leaving the organization.

Experiments by Porath and Erez have demonstrated direct adverse effects of experiencing or even just observing rudeness on cognitive performance e.g. problem-solving, flexibility of thinking, creativity and helpfulness. Experiencing rudeness also increases a propensity to aggressive and violent thoughts and actions.

In addition 94% of people get even with the rude person, or with their organization (88%)

It seems that ‘processing’ the rude encounter engages brain resources so that less is available for attention and memory, making us temporarily ‘less clever’.

These affects occur even in a culture of habitual rudeness, in other words even if a level of rudeness or incivility is normal in your organization it doesn’t mean people are inured against the effects.

Rudeness has a contagion effect: it makes us less likely to help people not even involved in the incident, and to be ruder and more aggressive than we might have been.

So, a culture of rudeness in an organization has hidden costs of:

Reduced performance

Poorer problem solving

Rigidity of thinking

Less ‘citizenship’ behaviour e.g. general helpfulness

Reduced creativity

People avoiding contact with certain others (who might have information they need)

Heighten tendencies to aggressive words or even actions

‘vendettas’ of getting even being played out in the organization

The effect of this on suppliers and customer relationships, as well as internal relations, is not hard to imagine.

Politeness pays

Interestingly Kim Cameron and others at the University of Michigan have been examining the effect of ‘virtuous behaviour’ on employees and organizations. They have found a similar but polar opposite effect, that is, the more people experience virtuous behaviour from others – helpfulness, forgiveness, generosity, courage, honesty support etc. – or indeed just witness it, the more likely they are to demonstrate such behaviour themselves. Such behaviour also has the effect of raising levels of ‘feeling good’ which is strongly associated with flexible and complex thinking, creativity, good team work and so on.

How much are poor manners costing your organization? And what can you do about it?

1. Create a culture of civility and politeness, led right from the top

2. Treat ‘manner’ of management as a performance issue, as well as outcomes

3. Keep stress levels down for people – stressed people are more likely to ‘lash out’ at others

4. Have a code of conduct that makes it clear that people have a right to be treated in a civil manner, and act on complaints

5. Taking bullying seriously

6. Help those who have a hot head to develop compensatory tactics, particularly the ability to eat humble pie and to seek forgiveness after an uncontrolled outburst

7. Encourage managers to recognise power as a privilege, not a stick with which to beat others

8. Beware those who are deferential to those above them and demonic to those below

9. Emphasis that difficult issues can be tackled without resorting to shouting or belittling, and model how

10. Beware of the hidden costs of the ‘high performer’ who is also known to be consistently aggressive and rude to his or her staff: the cost of the means might actually outweigh the benefits of the ends

Further resources

Christine L Porath and Amir Erez (2011) How rudeness takes it toll. The Psychologist Vol 24, No 7

Cameron K (2008) Positive Leadership: strategies for extraordinary performance. Berrett-Koehler. San Franciso

Lewis S (2011) Positive Psychology at Work. Wiley

Other Resources

More on using Appreciative Inquiry and other positive psychology techniques at work can be found in Sarah’s book Positive Psychology at Work.

See more about Leadership and Performance Management in the  Knowledge Warehouse.

Appreciating Change Can Help

Appreciating Change is skilled and experienced at supporting leaders in working in this challenging, exciting and productive way with their organizations. Find out more by looking at how we help with Leadership, Culture change and with employee Engagement.

For further information on these alternative approaches to change, please contact us or phone 07973 782 715

How ‘Change Management’ Can Be A Hindrance To Achieving Organizational Change

We are constantly told that, in today’s world, change is a permanent feature of organizational life. Given this is it surprising the extent to which organizations struggle with the concept of change in organizations. Myths abound. Working with organizations I constantly hear the refrain ‘people don’t like change’ and ‘change is hard’. Neither of these statements are necessarily true, as we see below. What is true is that the way we understand organizations, understand change, and go about achieving change can make the job much harder than it need be.

Part of the problem is that our ideas in this area are outdated. We think and act as if the organization is a perfectly designed and aligned machine that we can plan to reconfigure, and then just systemically and mechanically set about reconfiguring. The organization is not a machine; it is a living system of people with its own internal logic and ways of behaving. We need to work with the dynamic, inventive, thoughtful nature of our organizations, not against it. In the same vein, our views of leadership can be a hindrance to achieving fast, responsive and adaptive change. We act sometimes as if we expect our leaders to be all seeing, all knowing, all powerful. They’re not. However they are increasingly expected to introduce changes in work practices, routines and structures as part of their leadership role. Unknowingly they have often picked up some unhelpful ‘rules of thumb’ about implementing change at work. Here we expose the fallacious thinking behind five of them.

You can’t implement the change until you have thought through every step and have every possible question answered.

Not True. In many situations it is sufficient to have a sense of the end goal, or key question, along with some shared guiding principles about how the change will unfold. For example ‘We need to produce our goods more efficiently’, or, ‘How can we cut our process times?’ With these in place leaders can call on the collective intelligence of the organization as it embarks on learning by doing: taking the first steps, reviewing progress, learning from experience and involving those who know the detail in their areas.

This ‘all-seeing’ belief leads to exhaustive energy going into detailed forecasting and analysis of every possible impact and consequence of possibilities often leading to paralysis by analysis. It slows things down, allows rumours to fill the information vacuum, and creates feelings of disempowerment. Worse of all it disregards the huge knowledge base that is the organization; wasting organizational assets.

You can control the communication within the organization about change

Impossible! People are sense-making creatures who constantly work to make sense of what is happening around them. This means it is not possible to control communication in this way. By withholding information we convey something, usually distrust or secrecy. But more than this, in this day and age with so many communication channels instantly available to people, there is no chance of being aware of everything that is being said about the change. Instead leaders need to focus on making sure they get to hear what sense is being made of what is going on so that they can contribute a different or corrective perspective.

This ‘control’ belief leads to embargoes on information sharing, ‘until we have decided everything’ (see above) and much investment in finding ‘the right words’ to convey the story of the change. Meanwhile people are free to make their own sense of what is happening uninhibited by any corrective input from management. And when the carefully chosen words are finally broadcast, leadership is often dismayed to discover that they don’t work to create a shared sense of the meaning of the change.

To communicate about change is to engage people with the change

Not necessarily. People start to engage with the change when they start working out what it means for them, what it ‘looks like’, where the benefits or advantages might be, how they can navigate it, what resources are there to help them. They find out through exploration and discovery. They become more engaged when they are asked questions. “How can we implement this here?’ ‘What is the best way of achieving that?’ ‘What needs to be different for us to be able to…?’ People have to use their imaginations and creativity to start visualizing what their bit of the world will be like when ‘the change’ has happened. Everyone needs the opportunity to create rich pictures of what the words and ideas in the change mean in their context. The answer to the question ‘What might it mean for us?’ is jointly constructed and evolves as new information emerges.

The belief that communication alone equals engagement leads to an over-emphasis on communicating about ‘the change’. Staff hear managers talking endlessly about how important this change is, how big it is, how transformational it will be, yet no one seems to know what the change actually means for people. To be part of this scenario is to suffer a confused sense of ‘but what are we talking about?’ This in itself is usually symptomatic of the fact that at this point there is only a fuzzy picture of what this much-heralded change will mean for people: much better to get people involved in finding out.

That planning makes things happen

Sadly no! How much simpler life would be if it did. Creating plans can be an extremely helpful activity as long as we realize that what they do is create accounts and stories of how the future can be. Until people translate the plans into activity on the ground, the plans are just plans. For example I might develop a really detailed plan about emigrating to Australia, including shipping and packing and visas and job prospects and everything you can think of, but until I do something that impacts on my possibilities in the world, for instance by applying for a visa, then planning is all I have done. Plans are an expression of intention. Things start to happen when intention is enacted.

This belief in ‘plan as action’ fuels a plethora of projects and roadmaps and spreadsheets of interconnection, key milestones, tasks, measures and so on. People can invest time and energy in this fondly believing that they are ‘doing change’. A much more energizing alternative is to bring people together to start exploring ‘the change’ and generating ideas for action, and then to write documents that create a coherent account of the actions people are taking.

That change is always disliked and resisted

No. If this were true none of us would emerge from babyhood. Our life is a story of change and growth, of expansion and adaptation, of discovery and adjustment. Do you wish you had never learnt to ride a bike? That was a change. Had never had a haircut? That was a change. What is true is that change takes energy, and people don’t necessarily always have the energy or inclination to engage with change. It is not change itself that is the issue, it is the effect imposed change can have on things that are important to us: autonomy, choice, power, desire, satisfaction, self-management, sense of competency, group status, sense of identity and so on. If we attend carefully to enhancing these within the change process then there is a much greater chance that it will be experienced as life-enhancing growth like so many other changes in our lives.

This much repeated and highly prevalent belief leads to a defensive and fearful approach to organizational change, inducing much girding of loins by managers before going out to face the wrath of those affected by the change.

So, what is the alternative? Once we give up the idea of the leader or leadership team as all knowing, of change as a linear and logical process of compliance, and of people as passive recipients of information, we can start to work in a much more organization friendly way with change. Many new approaches that focus on achieving collaborative transformation are emerging such as Appreciative Inquiry, Open Space and World Café. These approaches recognize organizational change as a collective effort, as a social process that can be inspiring and dynamic with leaps of understanding as well as being messy and confusing at times. They work with the best of the human condition – the importance to us of our relationships, our imagination, our ability to care and to feel and to create meaning in life. In this way they release managers and leaders from the impossible responsibility of foreseeing all possibilities and instead liberate the organization to find productive ways forward in an ever-changing organization landscape, together.

Other Resources

More on using Appreciative Inquiry and other positive psychology techniques to create change can be found in Sarah’s book Positive Psychology at Work.

See more about change in the Knowledge Warehouse.

Appreciating Change Can Help

Appreciating Change is skilled and experienced at supporting leaders in working in this challenging, exciting and productive way with their organizations. Find out more by looking at how we help with Leadership and Culture change.

For further information on these alternative approaches to change, please contact us or phone 07973 782 715

Forget Carrot Or Stick – Try Nudging

In any organisation there is always a variety of tools available to managers to influence staff towards desired behaviour. This has traditionally been seen as a choice between two general approaches: incentives and coercion, or, the carrot or stick approach.

Now there is a new alternative

This third method utilises the natural inertia of most people when confronted with the choice of accepting the status quo or changing things. Generally they accept the status quo unless the difference between the two in terms of their perception of their own welfare is very large.

By making the desired state of affairs the norm, but allowing employees the freedom to change this if individually they wish, organisations can gain the benefits of the majority of the workforce behaving in the easy ‘default’ way.  While at the same time, through providing choice, they avoid the resentment and active opposition of the few who summon the energy to choose an alternative.

Interestingly this approach, known as ‘choice architecture’, or more colloquially as ‘nudging’, is credited to an economist working at Schipol International Airport in Amsterdam who reduced ‘spillage’ by men in the airport’s urinals by having a picture of a black housefly etched onto the bowl. Spillage declined by 80% as most men are unable to resist aiming at the image, located in the centre of the bowl. Thus he achieved his objective without hectoring passengers with notices or fines or expensive material incentives.

A weightier concrete example of this kind of approach, which also illustrates the kind of situation where it is most appropriate, was the Turner Review’s recommendations on reform of the pensions system for the government. It recommended that the most cost-effective method for providing for old age was for people to save for their own retirement by enrolling in a government-sponsored scheme. In order to realise the economies of scale which would make this cost-effective, however, a large portion of the population would have to be involved. To avoid making this compulsory he recommended simply enrolling workers in the scheme automatically while leaving them the option to opt out if they wished.

Is nudging the right option for your desired behaviour change?

To answer this question you need to consider whether:

•   The behaviour requires the participation of most, but not all, of the organisation to be effective

•   If a significant number of people opt out, it will render the change invalid

This approach offers advantages over more traditional approaches. For examples dictates (stick) might seem petty to some, or cash incentives (carrot) crude and insensitive to others.

Considering these factors should give you an idea of whether choice architecture might be suitable for enabling a change of behaviour in your organisation.

with thanks to Jem Smith, BA., Msc.

Other Resources

More on using  positive psychology techniques to encourage change at work can be found in Sarah’s book Positive Psychology at Work.

Appreciating Change Can Help

Appreciating Change is skilled and experienced at supporting leaders in working in this challenging, exciting and productive way with their organizations. Find out more by looking at how we help with Leadership and Culture change.

For further information on these alternative approaches to change, please contact us or phone 07973 782 715

‘Houston, we have a problem’ – What Does It Mean To Have A Problem?

At the 2012 World Appreciative Inquiry conference I fell into conversation with Stefan Cantore. Stefan was busy thinking about ‘our love affair with problems’ in preparation for writing a chapter for a forthcoming publication (details at end). We had a great discussion about this that stayed with me and caused me further thought.

How do we know when we encounter a problem? While completing a personality profile questionnaire recently I noticed that I have a problem with the word problem. As the questionnaire asked me variations on how I deal with problems, I struggled to answer: the questions just didn’t connect. It would seem that I just don’t think in terms of problems and problem-solving: I don’t notice when I encounter them.

Trying to answer the questions I found it very hard to think of instances of recent problem-solving to help me. Did this mean I led a problem-free life? All became clear a few days later when I was working out how to fix something that had broken. I was going through a process in my mind of possible alternatives, seeking the resources and trying the solution out. Yes, you’ve guessed it, I was problem-solving only the word problem never entered my mind as a name for the activity I was involved in, and probably wouldn’t have occurred to me at all if not for my recent struggle with the questionnaire.

Problems and ‘Problems’

Talking to Stefan, and thinking about this, I wondered if we have problems and Problems. That is, things we sort out all the time, almost without noticing – ‘problems’ – and some other challenges that are similar but different – ‘Problems’. This led me to ask, what happens when we label something ‘Problem’. What is the purpose, impact and outcome of naming some particular thing a Problem. ‘Houston, we have a problem’ came to mind as one of the greatest examples of this act of labeling. What did it do? I suggest:

1. It called attention to something. In this case the world’s attention
2. It suggested this something was beyond the capacity of those so far involved
3. It extended the system around the situation
4. In this way it attracts resources to a situation
5. It caused creativity – the creativity of the Apollo community in this instance is the stuff of legend.
6. It acted to focus attention – I’m guessing many other activities at the Apollo base station were put on temporary hold!

So when someone in an organization calls ‘Problem’ we might argue that they are attempting to get focus, attention, resources and creativity applied to a situation to move it forward. They are also implicitly stating it is beyond the capacity of the existing system to move forward; that they need to connect to a bigger system. It’s an acceptable way of asking for help.

Problems from Heaven

David Cooperrider suggested that those who bring Problems are a gift, because they also bring a Dream. By labeling something a Problem and so asking for help the problem-bringer or namer is implicitly suggesting that there is still hope that things can be better, with the help of the wider system. So naming something a Problem also creates the possibility of hope.

So where does that leave us? I think we need a different word for the small stuff that we do everyday that gets caught up under the umbrella of ‘problem-solving’ making it look as if problems are everywhere.

I think Problem, used wisely, can act as a clarion call for resource and action. I think it needs to be recognized as a call for wider system involvement. The Apollo astronauts couldn’t resolve the situation developing on their spacecraft with their resources, they knew that and called the developing situation a Problem. The wider system responded. They responded emotionally and experimentally. They tried things out and then they tried other things out. They involved everyone with all their different skills to find a way forward that would allow the astronauts to live. People may have used their rational skills, but they were motivated by their emotional connection to the whole project and to the individuals in danger.

Problem gets a bad name in organizations because it is not recognized as a call for an emotional and relational response. Rather it is seem as a call for a rational analysis, devoid of emotional content.  Appreciative Inquiry as an approach is tailor made for helping organizations create a response to the clarion call of a Problem that is emotional and relational while utilizing all the rational abilities of the organization as appropriate. There is nothing wrong with calling Problem when the circumstances warrant it, only in our response.

Stefan contributed to the Handbook of the psychology of organizational development, leadership and change (Wiley-Blackwell) published in 2012

Other Resources

More on using Appreciative Inquiry and other positive psychology techniques at work can be found in Sarah’s book Positive Psychology at Work.

See more 'Thought Provoking' articles and more about Appreciative Inquiry in the  Knowledge Warehouse.

Appreciating Change Can Help

Appreciating Change is skilled and experienced at supporting leaders in working in this challenging, exciting and productive way with their organizations. Find out more by looking at how we help with Leadership, Culture change and with employee Engagement.

For further information on these alternative approaches to change, please contact us or phone 07973 782 715

Ten Classic New Broom Mistakes

The pressure on new leaders or senior appointments to make an impact, and quickly, is tremendous. The organization has spent time and money attracting, selecting and securing the chosen candidate, now they want to see the value they have bought. It’s a brave person who can hold fire while they take time to look and learn; take time to find out what works here, and how it does; to find out who the people are who really ensure the work gets done; to find out who is brave enough to deliver bad news. This knowledge is often hidden, while, to new eyes, what doesn’t work, who doesn’t look or behave like management behaviour, and who too often isn’t at the end of their phone or at their desk, is all too obvious. In their attempts both to improve things and make a mark quickly, New Brooms frequently commit one or all of these mistakes:

1.They Believe in Year Zero. New Brooms often act as if everything that happened before their arrival is irrelevant. They have no interest in why things are the way they are, they know only that they are wrong. The wholesale change that follows as they (re)create the organization in the image of their last organization, or a textbook organization, tramples over history, accidentally throwing out precious babies with the bath water.

2.They Create Tomorrow’s Problems. ‘Today’s problems are yesterday’s solutions.’ said Senge.  And it follows that today’s solutions are tomorrow’s problems. New Brooms, in their enthusiasm to create new solutions, often inadvertently create the foundations for the next set of problems, for the next new person to solve. The experience on the ground can be of repeated extreme pendulum swings.

3.They Create Ground Zero. This approach often accompanies the Year Zero mentality: since nothing created before I arrived is of value, nothing will be lost in its destruction. Creating ground zero usually starts with the drawing up of a new organizational chart followed by frenzied activity restructuring, firing and rehiring, redrawing all paper work (job descriptions etc.), and retraining to create the brave new world. All too often the map changes but the terrain remains the same

4.They Have The Answer. At last our leader is in a position of power where they can put this great new idea they have come across into practice: LEAN, Team-based working, BPR. The list of management fads from which to choose is endless. The trouble is that there is no one right way to organize. Organizations are full of irresolvable tensions, they are dynamic entities that flux and flow, seeking to resolve the irresolvable. In this way they can keep everything in play. Once there is only one answer, only one way, the benefits of equi-finality and fluidity are lost.

5.They Love Tidiness. This approach is often related to having the answer. To the newcomer the evolved solutions are messy. The organizational chart is not neat, things aren’t arranged logically, the rationales for the way things are done are idiosyncratic, it doesn’t seem equable, everything is an acceptable exception. Like Trinny and Susanna they tear through the mess, creating order, boxing things up, cloning and standardizing. Everyone must start at 8.30, no exceptions. Bang goes the best customer service girl we ever had, who can’t get in until 8.45. Tough!

6.They Cut Through The Gordian Knot. Our new broom doesn’t have the time or the inclination to engage with office politics, so pretends they don’t exist. As they set about finding out what’s what, they dismiss any notion of being manipulated by the players. It’s easier to take everything at face value and then apply their own superior 20/20 vision to get to the truth. Often the people who lose out are those who really don’t know how to play politics and who strive to deliver a truth, as everyone else angles to demonstrate their irreplaceable value

7.They Believe Context Is Irrelevant. Leaders who believe they are impervious to office politics often also believe that context is irrelevant. They have a plan for change. There will be winners and losers. It’s very cold out in the employment market at present. The leader is in a very powerful position, determining people’s futures. Without a lively awareness of this context, it is very easy to mistake people’s quest to retain job security with the expression of a heartfelt endorsement of the new leader’s genius and a real desire for change. From here it is all too easy to get rid of dissenting voices.

8.They Fire the Opposition. The new leader is insecure: they need to prove their worth. They don’t want to hear that their plan has flaws, that there are benefits to the current, irregular, way of doing things. Expression of such thoughts is heard as disloyalty, easier to label such dissenters as resistant to change.

9.They Devalue Social Capital. The new leader is seduced by the organizational chart and all the paperwork that dictates who must report to whom, how the job must be done. Focused on this they fail to notice the intricate and delicate relating patterns, communication, information flow, informal problem-solving, that facilitate effective working. Seeing such informal networks as essentially irrelevant to achieving the task, they (re)arrange people without regard to these informal relationships and communication. The social capital of the organization is reduced, its efficacy damaged.

10. They Disregard Sense-making As A Powerful Change Process. Too often a new broom is overly focused on the behaviour change they require, and they work hard to ‘make’ people do things differently. Failing to appreciate that our behaviour is related to how we make sense of the world, they invest little time in working to change people’s mental maps, their experience of reality. They work to drive new behaviour into people rather than to release it.

Want to do it differently?

Appreciating Change can help you discover the strengths of the existing organization, can help you see and appreciate the less tangible assets such as the social capital, before you tear into making wholesale changes.

We can help you work with existing complexity, realizing the value of the evolved equi-finality, flexibility, diversity and difference before you become overwhelmed and seek to simplify by standardizing, and reducing complexity.

We can help you ‘be active’ in your engagement with the organization in ways that build on the best of what exists, that help people actively and willingly engage with new realities, and that grow positive change, before you lose patience and decide to impose a brave new world order.

Other Resources

More on using Appreciative Inquiry and other positive psychology techniques at work can be found in Sarah’s book Positive Psychology at Work.

See more 'Thought Provoking' articles and more about Leadership in the  Knowledge Warehouse.

Appreciating Change Can Help

Appreciating Change is skilled and experienced at supporting leaders in working in this challenging, exciting and productive way with their organizations. Find out more by looking at how we help with Leadership, Culture change and with employee Engagement.

For further information on these alternative approaches to change, please contact us or phone 07973 782 715

Many Hands Make Light Work: Crowd-Sourcing Organizational Change Using Appreciative Inquiry

Barack Obama famously crowd-sourced the finance for his election campaign, a powerful example of the ability of new technology to create a great aggregate result out of lots of small voluntary actions. But this process is not as new as it seems: Sir James Murray used a similar approach to creating the Oxford English Dictionary back in 1897.

So while crowd-sourcing is a new and sexy concept, it really refers to the age-old process of recruiting groups to complete tasks that it would be difficult if not impossible for one person to complete alone.

Wikipedia, itself probably the most ubiquitous example of a crowd-sourced product, defines it thus: ‘Crowd-sourcing is a process that involves outsourcing tasks to a distributed group of people. This process can occur both online and offline. The difference between crowd-sourcing and ordinary outsourcing is that a task or problem is outsourced to an undefined public rather than a specific body, such as paid employees.’ But it also says ‘Crowd-sourcing is a distributed problem-solving and production model.’ 

Volunteerism: In house crowd-sourcing

It seems to me that the crucial distinction is the voluntary nature of the participation rather than necessarily the paid/unpaid divide. In other words can crowd-sourcing be said to occur when people are not compelled to do the tasks by a job contract, but volunteer to be part of an organizational project. It is this volunteer element that makes me think Appreciative Inquiry can be seen as a form of in-house crowd-sourcing.

Appreciative Inquiry is an approach to organizational development that originated when David Cooperrider noticed how organizational growth and development can stem from understanding and building on past successes as well as on understanding and solving problems. As he and others experimented with focusing on learning from success and growing more of what you want in an organization, rather than concentrating solely on eliminating what you don’t want, they evolved a methodology based on clear principles of organizational life. One of these is the principle of positivity, which basically suggests that change takes energy, and that positive energy (feeling good) is a more sustainable source of energy for change than negative energy (feeling bad). When the field of positive psychology emerged at the end of the 1990s it fitted perfectly with Appreciative Inquiry’s emphasis on achieving excellence through focusing on what works.

I was fortunately enough to stumble upon Appreciative Inquiry as an approach to organizational change and development in the 1990s and have been incorporating it into my work ever since. And the more I work with Appreciative Inquiry, the clearer it becomes to me that the volunteer aspect of the model is crucial to its success. In this way I see a connection between crowd-sourcing and Appreciative Inquiry. The power of Appreciative Inquiry is based on the power of the volunteer model in the following ways.

• Voluntary attendance

Ideally people are invited to attend the Appreciative Inquiry event. The event topic, the nature of the event, and the invitation have to be sufficiently compelling that people prioritise being there of their own volition. When people make an active choice to invest their time in the event, they are keen to get a good return on that. When they are compelled to be there by management diktat, it can be a recipe for frustration, and even sabotage of the process.

• Voluntary participation

The voluntarism principle needs to extend to participation in any and every particular activity or discussion that is planned for the day. We never know what may be going on in people’s lives to make some topic of discussion unbearable. They may need, during the day, to prioritise their own need for some quiet time, or to make a timely phone call. It is my experience that when people are treated as adults constantly juggling competing priorities, trying to make good moment-to-moment decisions in complex contexts, they manage it very well, and with minimum disruption to the process.

• Voluntary contribution

One form of crowd-sourcing is the wisdom of the crowd. Again I quote from Wikipedia: ‘Wisdom of the crowd is another type of crowd-sourcing that collects large amounts of information and aggregates it to gain a complete and accurate picture of a topic, based on the idea that a group of people is often more intelligent than an individual.’ Calling on collective intelligence is a key feature of large group processes. However people are free to chose whether and what to contribute; so the event needs to create an atmosphere where people feel safe and trusting and so desire to share information and dreams and to build connection and intimacy. And of course the general principle doesn’t hold in every case, sometimes expert knowledge is more valuable and accurate than ‘the general view’.

• Voluntary further action

With most Appreciative Inquiry based events, at some point there is a shift from the process in the day to actions in the future. Often this involves forming project or work groups to progress activity. And the groups need members. Again group membership needs to be voluntary. The desire to contribute to changing things for the future needs to stem from the motivation and community built during the day. Forcing everyone to sign up to a post-event group activity, regardless of their energy, time or passion for the topic or project, just creates drag, and sometimes derails the whole process.

There are some of the ways in which I think Appreciative Inquiry can be seen as a form of in-house crowd-sourcing around the challenges of organizational change or adaptation. The ideal outcome of an Appreciative Inquiry event is that everyone is so affected by the event process, discussions, and aspirations that they are motivated to make small changes in their own behaviour on a day to day basis that will aggregate to a bigger shift, and even transformation within the organization as a whole. In addition they may volunteer to be part of specific groups working on specific projects. By definition these personal shifts in behaviour and the group project activity are above and beyond their job description: it is voluntary, discretionary behaviour. In this way, the voluntary basis of the Appreciative Inquiry approach qualifies it to be seen as a form of crowd-sourcing even though it is activity undertaken by paid members of an organization.

If you are interested in, or a convert to, the power of crowd-sourcing to get big things to happen with a small amount of effort from many people, then Appreciative Inquiry might be a way of bringing it into your organization.

Other Resources

More on using Appreciative Inquiry and other positive psychology techniques to boost engagement at work can be found in Sarah’s book Positive Psychology at Work.

See more about Appreciative Inquiry in the  Knowledge Warehouse.

Appreciating Change Can Help

Appreciating Change is skilled and experienced at supporting leaders in working in this challenging, exciting and productive way with their organizations. Find out more by looking at how we help with Leadership, Culture change and with employee Engagement.

For further information on these alternative approaches to change, please contact us or phone 07973 782 715

Ten Top Tips For Weathering The Storm With Strengths Enhancing Appreciative Leadership

First Off - Don't Panic Or Feel Trapped

When disaster strikes, under the intense pressure to do something fast, it is very easy for leaders to make quick, isolated obvious decisions i.e. to have a round of redundancies. Very few people like to have to do this, but often feel they have no alternative. However alternatives are available, what they demand is a willingness to go beyond simple and obvious solutions and to call upon the wisdom and goodwill of the workforce. A leader who is willing to work appreciatively with his or her workforce in finding ways to survive and thrive in these challenging trading times will reap the benefit now and later.

Here are ten top tips for showing appreciative leadership to weather the storm

1. Stay creative. Don’t get drawn into ‘there is no alternative’ solutions or decisions. There are always alternatives; sometimes they are harder to see than the obvious solutions.

2. Work with choice over compulsion. If you need to cut the wages bill consider ways other than compulsory redundancies. Clearly voluntary redundancy and early retirement are good first places to go. Ask if anyone is interested in unpaid leave or working part-time for a while. Then spread the pain and include yourself. For instance you could reduce everyone’s working week and pay by 20%, including your own. Fix a date for review. Yes this is likely to introduce a scheduling challenge. What are your managers for? Make it clear that people have choices to work with you or to choose to leave if they think they can do better elsewhere.

3. Don’t cancel Christmas! Just do it differently. For many people it’s a huge job perk. And it’s effectively a reward for their work and loyalty over the year. Cancelling the Christmas party will be experienced as a punishment (the withdrawal of something nice in the environment) by many people. Instead get creative. How can you still provide a party for your staff on a less extravagant scale? Involve them in this question. Make it clear you still want to create the opportunity for an organizational celebratory gathering but the budget has, understandably, contracted, what ideas do they have for creating a cheap, fun event? Call on your people’s strengths, who is the natural party animal, who will be motivated to find a way to make it happen? Delegate and empower, you have other things to worry about.

4. Create and spread messages of hope not doom and gloom. Such messages might be around the themes that you have faith in your people, that this too will pass, that this slack time creates opportunities for investing in refining and improving processes, that the organization can emerge stronger and so on.

5. Use the intelligence, creativity, and resourcefulness of the whole organization. Don’t feel, because you are the well-paid leader, that you have to do it all yourself. People will be as keen as you that the organization survive. They won’t be as aware of you of the immediate dangers because they don’t have access to, nor do they focus on, the forecast figures. So, you will need to create and provide structures and processes to allow people collectively to understand, contribute and influence. Sending out a memo asking for ideas is unlikely to be sufficient. There are many existing methodologies that can help with this: Appreciative Inquiry, Open Space Technology, Workout and other large group techniques.

6. Welcome volunteerism. You may only be able to pay for 4 working days but in the interests of the organization’s survival some people may be willing to work more. Welcome, appreciate and put to good use such offers, don’t assume or take for granted such support. Don’t penalize those who, for whatever reason, can’t do more. Ask and appreciate, don’t demand and expect.

7. Welcome flexibility. Put your people on the most important task. This may not be their usual task. ‘All hands to the pumps’ is a call people recognize and understand. Play to their strengths. If the most important task is talking to customers and potential customers then maybe some of your people could team up with a sales person to do their admin so they can spend more time actually talking to customers. Who has ‘informal’ relationships with your customers and could be called into play? Identify natural strengths, train in anything else needed.

8. Talk to your people. Share your knowledge in a carefully framed way. This is a time for inspirational leadership. It is also a time for humbleness and honesty. You need to combine an awareness of the scale of the challenge and of the hopefulness of success. You can’t make all the changes necessary to adapt quickly to new circumstances on your own or by diktat. To coin a phrase, it really helps if people want to change. Work to motivate them through hope and a belief in the future, not fear and despair about the present.

9. Be visible. Spread faith and confidence by your presence. Talk to people; be available for people to talk to. Resist the temptation to lock yourself away solving the problem. Ensure that your management team is out getting the best from their people, not locked away obsessing over spreadsheets.

10. Above all don’t panic, don’t allow others to panic, and don’t be panicked by the anxiety of others. People in a panic are rarely able to think creatively or flexibly, or to create confidence in others. Stay calm, create choice, involve others, offer affirming and appreciative leadership and find some support for yourself to enable you to do this.

To behave like this when all around you are going for the quick win of shedding longstanding and loyal staff is not easy. This is the time to recognise your organization as a collection of people of whom you have the privilege to lead. Recognise them as honoured followers, call out the best in them. Make it everyone’s challenge and not just yours to find ways to survive and thrive that are as good for the people, the organization, the present and the future as they can be.

Other Resources

More on using Appreciative Inquiry and other positive psychology techniques to boost engagement at work can be found in Sarah’s book Positive Psychology at Work.

See more 'How To' in the  Knowledge Warehouse.

Appreciating Change Can Help

Appreciating Change is skilled and experienced at supporting leaders in working in this challenging, exciting and productive way with their organizations. Find out more by looking at how we help with Leadership change.

For further information on these alternative approaches to change, please contact us or phone 07973 782 715

Ten Reasons Why Now Is The Time For Appreciative Inquiry

If you've heard about Appreciative Inquiry and know, or have an inkling, of what it can do and the difference it can make but can't face trying to change mindsets in your organisation or with your clients, here are some talking points to use to marshall your arguments!

1. Change is changing

Traditional, top-down, designed then implemented change takes too long and is too hard to push through an organization. The plan is out of date almost as soon as it’s made. People resist. Change needs to be fast, flexible and proactive and focused on maximising tomorrow’s possibilities rather than rehashing yesterday’s mistakes. Change needs to take everyone with it. Appreciative Inquiry is a change methodology for our changing times.

2. Feeling good is good for business

Positive psychology research shows that positive workplaces, where people feel hopeful, encouraged and appreciated, reap many benefits. People are likely to be more creative, more generative, share information better, grow and learn better, be more energized, be bolder and braver about innovating, be able to deal with more complex information, and respond better to change. Appreciative inquiry builds positive energy. Appreciative inquiry helps people feel good in the hardest of circumstances

3. The future exists only in our imagination

Imagination is more powerful than forecasting in an unpredictable world. The past does not predict the future: it suggests possible trajectories. Using our imagination we can create other, more attractive, more creative, more inspiring trajectories, to inspiring and attractive futures. Collective imagining has the power to create dreams that pull people to work together to achieve them. We can use our analytic powers to analyse data, we can use our creative powers to imagine pictures of the future that pull us towards it. Appreciative Inquiry uses the power of imagination

4. The best organizations positively flourish

Interestingly research shows that being good and doing well go together. The organisations that focus on creating positive cultures, and leading with values, where people thrive, where the organisation flourishes, where there is a bias towards the positive, where there is a sense of abundance, often also do very well commercially. Timberland, Merek Corporation, Cascade, Synovus Financial Corporation, Fedex Freight, Southwest Airlines and the Marine Corp are all a testament to the possibility of doing the right thing and doing well. Appreciative inquiry is a values based change approach that focuses on doing right and doing well.

5. Social capital is a source of sustainability

Relational reserves are what see organizations through difficult times as much as financial reserves. Relational reserves is the goodwill your people feel towards you, the trust they have in what you say, the willingness they demonstrate to forgive leadership errors, or accept bad luck, and work with you to put things right. It is built over time through building social capital.  Appreciative Inquiry builds social capital

6. Speed is of the essence

The world is constantly changing, organizations need to be nimble and flexible, able to recast themselves to meet new challenges; and quickly. Cascading change takes too long. Change needs to happen simultaneously from top to bottom. Appreciative inquiry works with the whole system simultaneously, so the need for change is experienced, absorbed, understood from top to bottom. And ideas for change are designed and tested for impact by, and on, those they affect before the money is spent.

7. Resistance costs too much

Planned change frequently induces resistance. Resistance slows down change and diverts managerial energy and attention. It also frequently illuminates unforeseen problems and obstacles to the change that cost money to put right at this late stage in the change process. Resistance to change costs both negatively (wasting time and energy) and positively (helping the organization make necessary corrections). Appreciative inquiry works positively with all reactions to change to co-create a sustainable, valued, endorsed and appreciated approach to change. Resistance is no longer part of the change conversation.

8. Change is not a commodity to be bought

Organizations put a lot of energy into getting ‘buy-in’ to their plans for the future. This activity comes after the plans have been made when other people have to be persuaded of the rightness of the plans. Appreciative inquiry involves those affected by change from the start. Helping to co-design it, bringing their expertise to bear at an early stage, being heard, being valued, having a role in shaping their destiny, co-creating a future that holds attraction for them, means that people have built it themselves and don’t need to be sold it. Appreciative Inquiry achieves this.

9. We need to use our intelligence

The world is more interconnected that ever before. Everything affects everything else. We need all the intelligence we can get to keep up and get ahead. Treating most of the organization as ‘hired hands’ and only the top echelons as the brains of the business wastes a huge amount of organizational intelligence. Appreciative Inquiry brings all brains, and experience, and skill, and knowledge, in the system to bear on the challenges of keeping up, getting ahead, doing right, doing well and flourishing.

10. Strengths are a source of competitive advantage

Organizations spend too much time trying to fill gaps in people’s profiles, adapt people’s personalities, and helping them become better at things they aren’t good at. And not enough time on building on strengths and abilities. Positive psychology research demonstrates that the more time spent working to their strengths, the more productive, fulfilled and energized people are likely to be. Building on the strengths of individuals, and building on the strengths of the organization creates a strength-based organization. Such an organization has a competitive advantage. Appreciative inquiry is a strengths-based approach.

Other Resources

More on using Appreciative Inquiry and other positive psychology techniques to boost engagement at work can be found in Sarah’s book Positive Psychology at Work.

See more articles from the Knowledge Warehouse on Appreciative Inquiry.

Appreciating Change Can Help

Appreciating Change is skilled and experienced at supporting leaders in working in this challenging, exciting and productive way with their organizations. Find out more by looking at how we help with bringing Appreciative Inquiry and other positive psychology techniques to your workplace.

For further information on these alternative approaches to change, please contact us or phone 07973 782 715

What Does It Mean To Talk About 'An Economy Of Strengths?'

By Jem Smith and Sarah Lewis

These ideas were first presented at a World Appreciative Inquiry Conference in Ghent in 2013.

For the workshop we attempted first to explore the key concept of efficiency to economies, and then how markets work, and then to ask the question, ‘ So, what does it mean to talk about an economy of strengths?’

Our personal interest

As an organisational psychologist Sarah is fascinated by the unquestioned acceptance, in most organisations, of ‘efficiency’ as the highest organisational priority, while Jem is an economist by training. David Cooperrider introduced the concept of ‘an economy of strengths’ for organizations and business, which caught both our imaginations.

First we examine the effects of the continual drive for efficiency.

The pros and cons of an ‘efficiency mindset’

Economic ‘efficiency’ brings immense benefit at the macro (societal) and organisational level. It also brings some unintended consequences, particularly mindlessness, a lack of redundancy (in complexity terms e.g. overlap or slack – with the attendant space for flexibility, purposeless interaction, incidental learning etc.), and a lack of respect for the full nature of being human. Efficiency is located in the Tayloristic model of organisation as a problem to be solved. At a society level, through market efficiencies, it introduces division and separateness (you shop at Sainsbury’s, me at Lidl’s, so our paths don’t cross). In other words there is a cost in poor social connectedness.

Social Connections

Societies have found various ways to mitigate some of these effects. Here I want to focus on the mitigation of the division and separation caused by efficient societal organisation. For example in feudal times we had Noblesse Oblige, the idea that the nobility had an obligation to look after and protect those who lived on the land that God had granted them. This made them worthy stewards of their inheritance. For centuries religious beliefs (most include alms giving) supported care for your neighbours and in the UK for the 50-60 years after the Second World War, the social compact (Welfare State), saw this role taken over by national governments. All of these work to maintain collective responsibility and awareness. They are, in effect, relational agreements. No one is saying they worked perfectly or necessarily defending the systems that produced the necessity for them, but at least there was an accepted need to mitigate the effects of division

Today

Today, the fragile ‘balance’ of the free market economy with mitigating social processes is breaking down. The relational agreements are under considerable strain. Behaviour is not as constrained, for many, by religious expectations as it once was; and the social compact is being dishonoured and the welfare state dismantled. At the same time financial systems are malfunctioning: they are not efficiently ensuring maximum wealth production, and, they are increasing societal inequalities as the lack of available capital for investment is adversely affecting ‘the small people’. It is a great time to be attending purposefully to this ‘balance’ that gets the best of what the free market does (its strengths) and the best of what relational connectedness can offer.

Future

Is this an opportunity to forge a new balance of ‘free market economics’ and ‘relational agreements’? Can we tweak our understanding of efficiency to accommodate this? Does our increasing ability to measure happiness, wellbeing and maybe even societal interconnectedness allow us to include these things in ‘what is measureable’ so that we can track, monitor and calculate how ‘efficient’ the market is being in a different way to present?

Secondly we ask – What is an economy?

An economy is a system to turn resources (land, machines, people's labour, fossil fuels etc.) into goods and services and then to distribute these to people in the economy. The best economic system is the one that makes the people in it happiest.

However there is only a limited amount of goods and services that can be produced under any system but people always want more. Economics is said to be about ‘using limited resources to best satisfy unlimited wants’. Also, by producing goods and services by working people give up their leisure time, which makes them less happy.

Choices must therefore be made, the aim of which is ‘efficiency’.

Prices

Why is it so important in achieving efficiency to use prices? The basic answer is that, usually, prices don’t lie.  Thus while people may tell you that they are willing to trade more expensive coffee for better terms for coffee growers, i.e. that knowing fair trade is happening makes them happier than getting cheap coffee, it isn’t until they see the price of fair trade coffee compared to Nescafe and then buy the more expensive one that the economy really knows that they want to make that trade-off, and therefore that it will make them happier.

Efficiency

The aim of economics is efficiency. There are two types of efficiency: productive efficiency (where you are producing the most goods and services that you can) and allocative efficiency (where you are distributing the goods/services in the way that produces the most happiness (what economists call ‘utility’) in society).

These can be achieved without uniformity in ideological approach. Thus you can have a free-market capitalist system in the production of goods and services and a much more socialist one in their allocation and still achieve efficiency in both.

Theory and experience has show that productive efficiency necessitates a free-trade, market-based approach (except where there is clear market failure, e.g. Healthcare, Education, Pollution) whereas allocative efficiency can be achieved in many ways, basically because it is unknown if inequality in the allocation of goods/services affects the aggregate happiness of society.

Thus Sweden, with its high growth and equality, and the United States, with its high growth and high inequality, are from a strictly technical point of view both equally successful economic systems, whereas Soviet Russia, with its state control of production and so low growth, was not.

There was a lot of discussion and interaction in the session; this is the document we produced afterwards that is a summary of those discussions.

Summary of thoughts from Ghent session: ‘Moving towards an economy of interconnecting strengths’

Connections

The focus is on happiness but from different perspectives.

The economy is connections, between people and resources and production and sustainability.

There is a connection between resources, how they are used and the sources of those resources and how sustainable they are.

There is a connection, though an imperfect one, between prices and value in the economy.

What makes people happy today?

The Future

It is important to change the view of the economy from a variety of competing models(Socialist vs. Free market etc.) to one of a family, each member with different strengths and weaknesses but working for a shared interest.

Organisations within the economy need to move towards being allocatively efficient as well as productively efficient.

Within organisations we must become braver and more independent in our behaviour for the good of the organisation and wider society, despite the risk to our jobs and pensions.

We must learn to look at the economy not so much from a perspective of scarcity as from abundance, particularly in terms of human potential.

Technology will create greater openness and access to information to the members of the economy, giving them greater power to make decisions affecting their own happiness.

This will cause the economy to move from being driven by the invisible hand to the transparent/visible hand.

Group Thoughts

Sheet 1

How do decisions we make about our how to achieve our happiness affect the happiness of others, particularly the young, now and for future generations?

We can take this into the world by having the children’s fire burn in every boardroom and school and community organisation.

We must educate the young on the value of strength as well as on the value of material things.

Sheet 2

How can you connect to the abundancy of the unlimited?

What image do you have of the economy?

When were you most proud of your work?

What was the best office (?) publicity that you have seen?

Sheet 3

Are you willing to stop thinking about £ $ € adding value, and start thinking about value?

Are you prepared to fire all your employees, and start working with friends?

Sheet 4

How would it be to offer your competitors your help? To be combined better for your clients, employees etc.

Can you re-define happiness?

How can we encourage children to ‘discover’ what created happiness and ‘dream’ as soon as possible?

Sheet 5

How can we visualise the value of happiness?

What are the KPI’s of happiness?

It was a very exciting session that raised more questions than answers, but people left stimulated and in some cases inspired to take action in their own quests to achieve a greater ‘economy of strengths’. Many said that it helped them connect their concerns with the language of business efficiency in a way they found extremely helpful.

Appreciating Change Can Help

Appreciating Change is skilled and experienced at supporting leaders in working in this challenging, exciting and productive way with their organizations. Find out more by looking at how we help with Leadership , Engagement and Culture change.

For further information on these alternative approaches to change, please contact us or phone 07973 782 715

How Does Positive Organisational Behaviour Turn Into Positive Organisational Performance

Positive organisational scholarship researcher Kim Cameron reports that flourishing organisations, that is organisations that are success as well as being described as great places to work, exhibit three key cultural characteristics.

A strong interest in learning from positive deviance

All organisations have an interest in learning from negative deviance, that is, when things go wrong. Rather less have an interest in learning from positive deviance, when things go right. But they are missing a trick. We now know that very often the root causes of success are not just the polar opposite of the root causes of failure. Taking an active interest in learning from exceptionally good performance allows organisations to increase their ability to succeed.

The modelling and promotion of virtuous actions

There is still a strong organizational story that suggests that a successful organizational culture is hard, macho and dog-eat-dog with little time for sentiment. By contrast Cameron’s research has found that organisations that promote virtuous actions, by which he means things such as kindness, patience, humility, generosity and forgiveness reap the benefits in organizational performance. A moment’s thought suggests this makes sense as such an environment means people are likely to take more learning risks than in a blame orientated culture with a minimal toleration of mistakes or errors. Of course the learning process still has to be managed, but the recognition that people are human and that in any human system error is inevitable helps liberate learning behaviour and reduce blame avoidance and buck-passing.

A strong bias towards affirming the best in people and situations

Cameron found that his exceptional organisations had a real bias towards noticing and affirming the best in people. We might say they had developed skill with their appreciative capabilities as well as their critical ones. Being affirmed in your essential goodness as well as your particular strengths helps boost confidence and morale. It also affects motivation. People grow towards the best reflections of themselves. Reflecting back the best of people helps them attain their potential.

This collection of behaviour actively promotes two organizational processes that lead to improved performance

Upward virtuous circles of positive emotion and behaviour

When we see others displaying exceptional virtue, we are inspired to emulate them. People behave better in the company of the better behaved. The kind of culture described above contributes to a self-reinforcing virtuous circle of people feeling good, therefore being more inclined to do good things, therefore more likely to be observed by others behaving well, who in turn are more likely to be inspired to behave at their best, with colleagues, customers and suppliers. All these little bits of behaviour add up to a performance culture.

Social Capital

These three key organizational behaviours also contribute to the development of good social capital. Social capital describes the levels of trust and connection between departments or divisions in an organization. High levels of social capital promote good information flow and low-level decision-making and problem-solving, all of which contributes effectively to local and global performance.

More on these and related topics can be found in Sarah’s book Positive Psychology at Work.

See more articles from the Knowledge Warehouse on this topic here.

Appreciating Change Can Help

Appreciating Change is skilled and experienced at supporting leaders in working in this challenging, exciting and productive way with their organizations. Find out more by looking at how we can help with Engagement.

For further information on these alternative approaches to change, please contact us or phone 07973 782 715

'How do you create a sense of urgency in positive approaches to change?'

This was the question posed to me recently by an HR Director taking up a new post with a big change agenda. He was attracted to the idea of positive change, but working with an organization with a long and successful history, he was challenged about how to galvanise the workforce into engaging with the necessary changes. I thought it was a great question and it has stayed with me.

It has long been known that negative emotions such as fear, despair or anger can act as a spur to change. Leaders and change consultants have sometimes built on this knowledge by deliberately creating these emotions at work, by ‘creating the burning platform for change’.

Such tactics may well produce energy for change, however there are some drawbacks.

·      The energy may not be accompanied by much creativity: the aim is to avoid, not to create.

·      The energy may not be very sustainable: once the threat is seen to have receded the escape        behaviour ceases and old patterns reassert themselves.

·      It tends to produce more compliant behaviour than active commitment.

·      It can create a very unhealthy and unhappy working atmosphere.

So what is the alternative, how do positive approaches to change create urgency? I think we probably need to rephrase the question to how do they create energy and drive for change? How do they create motivation and momentum for change?

We are drawn towards an attractive future

Rowland and Higgs (2008) in their research into how change actually happens (as opposed to the story we have about how change happens) discovered four key things that made a difference to the success of change efforts. One of these was the ability of the leaders to create a magnetic pull towards an attractive future. This I think is at the heart of the answer to our question.

Positive and appreciative approaches to change major on creating hope, optimism, group cohesion, strong visions of attractive possible future states, desire and ambition. They strengthen relationships, build social capital, create interdependencies and identify shared goals or aspirations. They build trust, illuminate shared values, and have a positive effect on motivation and morale.

In short they create a ‘together we can’ understanding of their collective abilities to influence outcomes. This, combined with co-created aspirations for, and visions of, future states, forms the basis of the energy for change.

The tortoise and the hare

A desire for change created from these more positive emotional states may take a little longer to release, discover, create or build, but it is likely to be more sustainable as a force for change. Working with groups you can see when a particular idea about, or vision for, the future really starts to take hold. It won’t go away. It exerts a continuing fascination, an attraction. This creates its own urgency: a desire to engage others with this powerful aspiration. It acts as a powerful light in the hazy vision of the emerging future, allowing for constant re-orientation. It is a pull towards the future and as such tends to create a much more sustainable energy over time than the push energy created by an awareness of the need to avoid present danger. An awareness of present danger can make us jump fast and without thought. An aspiration to achieve a desirable future state can draw us ever onwards.

More on these and related topics can be found in Sarah’s book Positive Psychology at Work.

See more articles from the Knowledge Warehouse on this topic here.

APPRECIATING CHANGE CAN HELP

Appreciating Change is skilled and experienced at supporting leaders in working in this challenging, exciting and productive way with their organizations. Find out more by looking at Our Approach to change.

For further information on these alternative approaches to change, please contact us or phone 07973 782 715