Peter Drucker Archives

Threshold of an Opportunity

June 3, 2022

The fractured discourse in society over race, abortion, guns, politics, public health, and many other things threatens the fabric of what makes this country so great. We used to respectfully disagree and continue to be united as citizens. Now we are dangerously polarized. Where once we could compromise, now there is only me or you, win or lose.

E Pluribus Unum translates as “out of many, one.” This is emblazed across the scroll clenched in the eagle’s beak on the Great Seal of the United States and originates from the concept that out of the union of the original Thirteen Colonies emerged a new single nation. Today there are Red states and Blue states.

We are in a liminal space: between what is and what is to come. The word liminal translates from the Latin word “limi,” which means threshold. Our society may be leaving one way of life behind and transitioning to something altogether different.

Businesses are facing a liminal space too. How do they entice employees to return to the workplace? The great resignation has morphed into workers demanding more control over when and where they do the work. Leaders are challenged to find a way.

“A leader’s primary role is to create the future,” says Mark Miller, author of Smart Leadership: Four Simple Choices to Scale Your Impact. “Our vision for the future should never be an extension of the present or a return to the past. Normal is the realm of a manager who sees his or her role as controlling what is. The leader, by contrast, doesn’t want to control—she seeks to release the potential of her people and her organization. There is nothing normal about a preferred future. Without the liminal space, escaping normalcy is unlikely, and so is a better tomorrow.”

It is important for leaders to see this liminal space as an opportunity. Reflect on the changing times and the abundance of possibilities for those who embrace rather than resist it. Create a vision for the future. Release the potential of your people and of the organization.

The COVID-19 pandemic led to a recognition that a change in the workplace is necessary. Consider the rise of union organization, demand for accountability on climate change, #metoo movement, Black Lives Matter, and Diversity, Equity, and Inclusion programs.

Many corporations may have to: shift from overly rewarding CEOs and shareholders at the expense of employees and customers; challenge the assumption that the reason for all white males on the leadership team and boardrooms is because there aren’t qualified woman and people of color; provide a ROWE (Results Only Work Ethic) environment where only the work results are measured and not the time in an office cubicle.

Look at this liminal space not simply as a time to address problems but to embrace the opportunities.

“In every area of effectiveness within an organization, one feeds the opportunities and starves the problems,” wrote Peter Drucker, author of The Effective Executive: The Definitive Guide to Getting the Right Things Done. “Nowhere is this more important than in respect to people. The effective executive looks upon people including himself as an opportunity. He knows that only strength produces results. Weakness only produces headaches—and the absence of weakness produces nothing.”

At this threshold between what was and what will be, leaders must courageously embrace what is possible and move forward. This liminal space is the launching pad for transforming the old ways of working to meet the new challenges of today. Our future depends on it.

Effective Communication Takes Two

April 26, 2022

In my work as an executive coach, one of the most common goals my clients choose to work on is to become a better communicator. This is usually not about public speaking, presentations or even writing better emails. It’s about learning to actively listen, interacting back-and-forth and understanding it’s not about what you say, but what others hear.

Ironically, the plethora of tools created to help us communicate has not increased effective communication. In fact, I would argue it has gotten much worse. Look no further than the negative impacts of social media.

Effective communication requires back and forth exchange, otherwise it’s just talking at people. Sending and receiving messages requires active participation on both sides to enable accurate understanding. This is especially important in the workplace to ensure the results management wants is what employees can deliver.

“We have been working at communications downward from management to the employees, from the superior to the subordinate,” writes management consultant and author Peter Drucker in his book The Effective Executive: The Definitive Guide to Getting the Right Things Done. “But communications are practically impossible if they are based on the downward relationship. The harder the superior tries to say something to his subordinate, the more likely is it that the subordinate will mis-hear. He will hear what he expects to hear rather than what is being said.”

This back and forth is all too often missing and leads to managers upset when they repeatedly tell their direct reports what they want, yet the employee fails to deliver. Perhaps it’s less about telling and more about asking.

In a previous post, I wrote about the importance of doing the right things rather than simply doing things right. When those on the front lines (closest to the problem or opportunity) are consulted on what’s the right thing to do, leaders are likely to make better decisions. This involves two-way communication that balances listening with speaking.

Drucker suggests effective executives should ask their knowledge workers the following:

What should we at the head of this organization know about your work?
What do you want to tell me regarding this organization?
Where do you see opportunities we do not exploit?
Where do you see dangers to which we are still blind?
What do you want to know from me about the organization?

“In every area of effectiveness within an organization, one feeds the opportunities and starves the problems,” writes Drucker. “Nowhere is this more important than in respect to people. The effective executive looks upon people including himself as an opportunity.”

Apple’s Steve Jobs once said “It doesn’t make sense to hire smart people and tell them what to do. We hire smart people so they can tell us what to do.” This advice should be followed by all executives as an organization can only be as effective as its people.

George Bernard Shaw once said: “The single biggest problem in communication is the illusion that it has taken place.” Ensure that your communication includes active listening, back-and-forth interaction, and that what you say is what they hear. Then it won’t be an illusion.

Renovating Corporate Culture

May 14, 2021

The influence of corporate culture on an organization’s ability to effectively execute on strategic objectives is well recognized. Yet all too often when culture is misaligned with strategy, leaders are unable to alter their organization’s culture and then fail to reach their objectives.

One of the most important thinkers on management theory and practice, management consultant and author Peter Drucker expressed the view that company culture constrains strategy and can even defeat it. This has often been summarized as “culture eats strategy for breakfast.”

Culture plays a huge role in the success of a business as it governs people’s organizational behavior and ultimately the execution of strategy. And culture increasingly plays a vital role in attracting and retaining talent. According to a recent Glassdoor study, 77 percent of people would evaluate a company’s culture before applying for an open position. Fifty-six percent stated an organization’s culture was more important than compensation.

When your company’s culture is unable to fully support your strategy, it’s time to renovate your culture.

“Successful companies recognized that certain elements of their organization, just as in any home renovation, are the core—the foundation of what made them great to begin with,” writes Kevin Oakes, CEO of i4cp and author of Culture Renovation. “Similar to a house where you want to improve the value, companies recognize that to better compete in the future, to continuously improve shareholder return, and to attract top talent, they need to renovate.”

However, Oakes found only 15 percent of companies that embark on culture change were able to succeed. After extensive research and executive interviews, his company defined 18 steps as a blueprint in order to initiate and maintain culture change. Referencing stories from well-known companies such as Microsoft, T-Mobile, Ford and Starbucks, Oakes outlines these steps in three phases: plan, build and maintain.

In the planning phase are things like figuring out what to keep, defining desired behaviors, and determining how progress will be measured, monitored and reported. The building phase includes clearly communicating that change is coming, ferreting out skeptics and nonbelievers early, and establishing a co-creation mindset. In the maintaining phase Oakes prescribes making onboarding about relationships rather than red tape, changing performance management practices and leveraging employee affinity groups.

And similar to any change initiative, success is directly tied to the level of active and engaged executive sponsorship.

Renovating is an apt word for this work with regard to corporate culture. It is about preserving the unique elements while updating or adopting “next practices” to better meet current conditions. Similar to renovating a house, renovating an organization’s culture means determining what is essential and building upon that.

“For a renovator, a house is not an artifact locked in time, but a distinct being with a character and history that should be upheld even as the owner’s needs are taken into account,” writes Erica Bauermeister, author of House Lessons: Renovating a Life. Unlike remodeling, Bauermeister says renovating requires a certain respect for what is there and what should remain in order to successfully transform.

So too with renovating corporate culture. Listen and learn what is to be kept. Gather a team of effective influencers. Clearly communicate early and often. Create a compelling vision. Provide training on desired behaviors. Promote those who best represent the new culture.

“Culture is critical, and changing it is difficult,” writes Oakes. “Whether renovating a house or overhauling the culture of a century-old organization, it never goes as planned. The process demands optimism, patience, and perseverance.”

Renovate your culture to align with your strategy and your company will become unshakeable.

Leadership and the To-Don’t List

May 9, 2018

At some point in our careers we have to face the fact that it may not be our lack of skills, experience or overall accomplishments, but specific behaviors that may prevent us from getting promoted to a higher position.

What often defines those who are able to rise to the ranks of leadership is the self-awareness to recognize how certain behaviors are holding them back and the courage to do something about them. Though these behaviors may have helped you get to where you are, they may be the very things holding you back from going further.

It’s not so much what you do, but what you need to stop doing, according to leadership coach and author Marshall Goldsmith.

“The higher you go in the organization, the more your problems are behavioral,” according to Goldsmith and Mark Reiter in What Got You Here Won’t Get You There. “The higher you go, the more your issues are behavioral.”

And changing one’s behavior is extremely difficult. Consider new year’s resolutions, exercise commitments and diets that don’t lead to successful outcomes.

As a leadership coach, I work with those in—or hoping to reach—leadership positions, and most often it is not a lack of business or technical skills, but certain behaviors that are holding them back. And often it is not so much things they aren’t doing, but things they need to stop doing.

The great management consultant and author Peter Drucker said: We spend a lot of time teaching leaders what to do. We don’t spend nearly enough time teaching them what to stop.

In every performance review, employees should learn what they are seen as doing well and should continue doing; what they are not yet doing and should begin doing; and finally what they are doing, but should stop doing. For whatever reason, this last one often gets left off unless the behaviors are especially egregious.

This gets us to the To Don’t list. Unlike the To-Do list, the To Don’t list should include behaviors you need to stop doing as they are undermining your performance and your ability to grow in your leadership potential. This list should certainly contain items brought up in your performance review because they are the most obvious to your supervisor. But they may not be as obvious to your supervisor or called out in a way that can be helpful to you.

One way to compile this To Don’t list would be to review feedback from performance reviews, 360 assessments, and other ways you have been evaluated. Look for themes and consider not simply dismissing those items that you don’t consider important to change.

Take for example sarcasm. This is a trait that can come across to many as funny and perhaps lighten the mood in certain situations. Sarcasm is actually a passive-aggressive form of communication that can undermine trust. If your identity is associated with sarcasm, you might consider how this may undermine your ability to be seen as a leader.

Though you may claim that sarcasm or another behavior is just who you are and can’t be that bad if it’s gotten you this far. Consider that certain traits that may not have been a problem in getting to this point are actually preventing you from rising higher because leadership has different demands and requires different behaviors.

This can be things like speaking instead of listening, commanding instead of inspiring, making excuses instead of owning up, or clinging to the past rather than letting go that prevent would-be leaders from rising to the C-suite.

It’s worth taking the time to make your To Don’t list and treat it as importantly as you do your To Do list. First identify and write down those behaviors you wish to change. Then focus on changing them. And in the same way you are more likely succeed with your exercise or diet, enlist others to provide encouragement, support and hold you accountable.

Raise Employee Engagement via Encouragement

September 8, 2015

Despite his best efforts, your employee misses a critical deadline and an important business outcome is in doubt. How do you respond?

This situation is something every manager or leader faces at some point.

Will your response depend on the individual employee or on how well you have been informed throughout the process?

Obviously, many factors weigh into your response, but your gut reaction is to either attack the person or attack the problem. And these two reactions can result in very different outcomes.

Those who attack the person may find that this employee can never adequately escape from your perspective that he has let you down. And this can be detrimental to both the employee and the organization.

Those who attack the problem may find that this can keep the employee from taking it personally and hopefully learn from the experience. It can also nurture the relationship you have with the employee and likely raise his engagement going forward.

Encouragement can raise employee engagement like nothing else. I’m not suggesting you say only nice things, but you can choose to encourage the positive and let the negative speak for itself.

Throughout much of business, there tends to be a laser focus on problem solving, which is to seek out what is wrong and find a way to fix it. A counter notion is appreciative inquiry, which is about focusing on what the organization is doing well in certain areas and find a way to replicate it in others.

Too many organizations focus exclusively on problem fixing that never relieve the employee or the organization from creating the problems. That’s because it is all too easy to find problems and fix them without really changing anything to keep them from happening in the first place.

Appreciative inquiry, on the other hand, is about recognizing what results in positive outcomes and spreading it around the organization. Often used to bring about strategic change, appreciative inquiry offers an alternative perspective that encourages rather than discourages, that builds up rather than knocks down, that spreads rather than eliminates.

In a recent front page New York Times article, this notion of positivity was focused on the Seattle Seahawks. Led by head coach Pete Carroll, the football team is having a great deal of success in part because he encourages his players rather than beats them up over miscues.

Remaining positive despite interceptions, dropped passes, missed tackles and even game losses has been instrumental to getting the most out of so many of the Seahawks’ late round draft picks and undrafted players. It has certainly played a part in their back-to-back Super Bowl appearances and expectations for returning again this year.

In the same way this positive philosophy is rare in the National Football League, it is also rare in business. That needs to change if an organization wants to be about collaboration, innovation, continual learning and success.

Collaboration requires trust that an individual will not be attacked for doing his or her best—unless, of course, this becomes a pattern rather than an exception. Collaboration requires taking risks and making ourselves vulnerable. That cannot happen if we’re running scared of making mistakes for fear of reprisals.

Innovation means trying new things and coloring outside the lines in order to find solutions. This won’t happen if we are avoiding experimentation for fear of personal repercussions. Out-of-the-box thinking can’t be based on fear, but requires a nurturing atmosphere to foster creativity.

Continual learning is required for organizations to thrive in the 21^st century. This means constantly attacking what (not who) is wrong and find ways to fix or do it better. It requires allowing for mistakes, miscues and failures in order to find the best sustainable solutions.

Success is a road paved with failure goes the old saying. There can be no success if we don’t acknowledge our failures, learn from them, and move forward. Acknowledging these failures can be done in a positive light that encourages participants to own up to their part or negative where people hide or blame others.

Author and management consultant Peter Drucker once said: “The task of leadership is to create an alignment of strengths in ways the make the system’s weaknesses irrelevant.”

If this is not focusing on positive rather than negative, I don’t know what is.

Next time your employee makes a mistake, misses a deadline, or falls short despite his or her best efforts, use encouragement. You will find that, in the long run, this will bring about better performance and raise overall engagement.

Don’t Underestimate Corporate Culture

April 2, 2015

Beyond salary, benefits, perks, and the nature of the work itself, a company’s culture is often the reason people stay in an organization. That’s because corporate culture—though not readily apparent or even easily defined—can make you feel like you are part of a team, that you belong, and that you are doing something important.

It can also do the opposite.

No matter where you work, part of the reason you’re there may very well have to do with the connectedness you feel with your co-workers. When this is strong, you are probably accomplishing a lot and feeling good about how you spend your working day. When it is weak, you are probably dreading each Monday morning.

Think of Twitter, Google, Apple, Zappo’s, Wegman’s, Whole Foods, Southwest Airlines, REI, Patagonia and Netflix. These are all companies with positive corporate cultures that share widespread brand awareness, strong financial performance, unrelenting customer focus, and a reputation that makes them a magnet for job seekers.

Corporate culture can best be defined as the shared values, attitudes, standards, and beliefs that characterize those in an organization. It is based on the beliefs and behaviors that determine how a company’s management and employees interact and handle their business transactions.

It is defined over time from the cumulative traits of the people hired, and rooted in the organization’s goals, strategies, structure and approaches to its employees, customers, vendors, investors and the larger community. You might think of your company’s culture as its personality.

The statement “culture eats strategy for breakfast” has often been attributed to the great management consultant Peter Drucker, who argued that a company’s culture would trump any attempt to create a strategy that was incompatible with its culture. Drucker compared company cultures to country cultures. Never try to change one, he said, but instead try to work with what you’ve got.

In the same way that a company’s products and services, leadership team, market conditions, competitive pressures, and other factors need to be considered in any corporate strategy, so too must the existing culture.

Corporate culture can either help or hamper an organization in its efforts to implement a strategy. More often than not, leaders underestimate the power of culture rather than embracing its power for helping them. Implementing a strategy that runs counter to or requires a huge shift in the culture can be disastrous.

Instead, you can leverage the corporate culture by ensuring it is aligned with your new strategy, latest company acquisition, or your incoming CEO. Each of these transitions can be successful if the cultural aspects of the change are considered along with all the other due diligence completed.

A positive company culture can benefit recruiting, employee motivation and retention, teamwork, reduced absenteeism, customer service, responsiveness to change, and bottom line financial performance.

Developing such a positive culture evolves over time and grounded in the employees you hire. Be careful and selective in recruitment and in every way you conduct business, and your culture will enable the organization to grow and thrive.

Work Friends & Social Recognition

September 22, 2014

All of us want to feel valued for our contribution in the workplace. But there may be a disconnect between what employers think drive this feeling of being valued and what employees actually want and need.

It turns out that peer relationships can greatly impact our level of commitment and engagement. And the more friends we have at work, the more likely we are to trust co-workers as well as leadership.

Another area is in years of service recognition. The days of the gold watch or pin for various years of service no longer suffice as recent research has show that employees are more likely to be moved by emotionally-driven, social recognition.

These are the findings of research by Globoforce in a report called “The Effect of Work Relationships on Organizational Culture and Commitment.” The Fall 2014 Workforce Mood Tracker recently surveyed 716 randomly selected employees in the United States who were working in companies with at least 500 employees.

When we consider that most of us with full time jobs spend more time with our co-workers than we do with our families, we shouldn’t underestimate the importance of these relationships.

Among the research findings with regard to peer relationships:

93% value the respect of work friends or colleagues and 63% of them find it extremely important or very important.
74% claim to have a shared history and memories with co-workers.
89% say work relationships matter to their quality of life, with more than half (55%) saying it is extremely important or very important.
Employees with friends at work are twice as likely to trust leadership than those without friends.
The more friends one has at work, the higher level of pride they take in their company as well as their co-workers.
The more friends an employee has at work, the less likely they are to leave. In response to: “Would you accept another job if it were offered to you?” those with no friends at work were 42% likely, while those with 1-5 friends 38% likely, and those with 6 to 25 friends only 30% likely.
Highly engaged workers: no friends 28%, 1-5 friends 37%, 6-25 friends 48%, 25+ friends 69%.

Clearly, having friends at work can directly impact trust, engagement, retention and overall quality of life.

When it comes to recognition, the survey also found that meaningful recognition matters, and when not tied in with co-workers can actually negatively impact the employee. Among the findings on recognition:

Employees feel more valued when peers participate in anniversaries. 70% vs. 24% feel more valued when celebrated with peers in addition to the company as opposed to the company alone.
Workers with peer-celebrated milestones are less likely to leave the company for another position. In response to the question: “Would you accept a new job if it were offered to you?” 74% said yes when there was no celebration at all, 66% said yes when celebration was with company only, and only 52% said yes when celebration included co-workers.
When employees report their last company milestone as “an emotional, moving or poignant experience,” they are significantly more likely to see that anniversary as positive and three times more likely to say it made them feel more valued.
Employees were more likely to report a positive experience when the formal recognition experience was tied to company goals and values. They were also three times more likely to say it made them feel more valued.
When asked what could make the milestone experience more meaningful, 65% said shared stories and memories, and 72% said they like the idea of including a retrospective of their career accomplishments.

Emotional anniversaries and recognition make employees feel more valued with higher pride, higher engagement, and are more reflective and likely to renew their commitment to the company.

So how do you encourage workplace friendships and provide more robust, meaningful recognition? Obviously, a friendly and welcoming workplace is more likely to encourage people to socialize. Specificity both positive and negative when providing feedback is extremely helpful. Also, you can encourage other’s opinions and viewpoints when determining policy decisions and workplace issues.

Peter Drucker once said “culture eats strategy over breakfast.” Staying on top of your company’s culture to keep it positive and aligned with your values will go a long way towards encouraging friendships and making recognition more meaningful. Never underestimate the power of your company’s culture.

A product called TINYpulse can capture anonymous feedback from team members to reveal insights, trends, and opportunities to improve retention, culture and results. Think of it like the old fashioned “suggestion box” only it can be done with quick online surveys directly pushed to employees. This will help keep them involved and encourage them to feel their opinions matter.

Finding ways to foster friendships as well as acknowledging years of service by including co-workers in the recognition will go a long way in making employees feel valued. And feeling valued is what will make employees more engaged, productive, and less likely to leave for another opportunity.

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