Tags

  • Published on

    ECMLG'15: Human-oriented performance management

    Conferences Governance Leadership Performance Strategy
    The translation of strategy and goals into actionable targets and outcomes is a challenge for many organisations. Rob ter Hedde and Benny de Wall (Utrecht, Netherlands) have been investigating this challenge. While many think in terms of 'hard priorities' of operational efficiency and organisational design, ter Hedde and de Waal focused on human factors. They presented a model consisting of four dimensions—strategy translation; dialogue and action orientation; continuous improvement and organisational learning; and, information and visualisation—and suggested that the link between strategy and effective implementation was contingent on this four dimensional model being set in motion.
    Their results showed that anchoring the organisation's objectives and strategy in the minds, hearts and hands of the people (staff and other stakeholders) is crucial for performance improvements. While not explicitly stated, this research reinforces the importance of clearly annunciating core purpose—the 'why'. People are more likely to get behind causes that things. The civil rights leader, Martin Luther King, provided a very famous demonstration of this with his Dream speech. Just imagine the [non]impact if MLK had uttered "I have a plan...".
  • Published on

    ECMLG'15: Opening Keynote

    Conferences Governance Leadership Management Research
    The 11th European Conference on Management, Leadership and Governance (ECMLG) got underway this morning, at the Military Academy in Lisbon, Portugal. Nearly 90 researchers, from 28 countries have assembled to present their research and debate emergent ideas and models.
    The overall theme of the conference was set by Colonel Nuno Lemos Pires when he delivered the opening keynote address ​From Leaders to Commanders. His talk provided some interesting contrasts between leadership in a civilian context and a military context:
    • Whereas many leaders choose their team and mission, commanders do not chose their team nor do they chose the mission to be accomplished.
    • Whereas the natural human condition is towards nepotism, the military context is one of renouncing individual freedoms and preferences in favour of the greater good.
    • Military leadership (commandership) needs to embrace—almost by definition—multi-national, multi-cultural and multi-dimensional elements, whereas this is not necessarily the case in civilian leadership.
    Notwithstanding these contrasts and tensions, Pires then described several attributes of effective military leadership that appear to be applicable in the civilian context:
    • Critical thinking, to ask 'why' and understand motivation (cf. blind followership)
    • Individuality and initiative (in effect, ownership)
    • A habit of searching for and discussing contradictory options, to find 'better ways' (continuous improvement).
    Leadership is a complex topic. In drawing both contrasts and parallels, including a direct challenge of the 'command and control' perception of military leadership, Pires set the scene well set for an interesting two days ahead.
  • Published on

    New VW CEO wants a new strategy. Why?

    Accountability Decision Making Governance Leadership Performance Strategy
    An interesting development hit the press today: Matthias Mueller, the incoming chief executive of Volkswagen AG, reportedly wants to embrace a new strategy for the beleaguered group. That an incoming chief executive wants to put his mark on the business is not particularly newsworthy, it is commonplace.
    The interesting piece is the board's response. Will it entertain a new strategy, or will it assert its authority as the top-most decision-making authority? The challenge for the VW board is to decide whether the existing strategy is satisfactory and well-implemented (notwithstanding the scandal relating to the US market emission standards), or whether the company's strategy is flawed.
    Given the strong financial performance over recent years, the more likely of the two options is that the strategy is OK. If this is correct, the board's decision becomes a straightforward assessment of power. Who is in control, the board or the chief executive?
  • Published on

    Volkswagen emissions debacle: portent of a bigger problem?

    Accountability Decision Making Governance Leadership Management Research Strategy
    News that Volkswagen AG has been systematically pulling the wool over the eyes of its customers, regulators and the stock market has resulted in a predictable and rightful backlash this week. The stock price has plummeted, the brand reputation is in tatters and the chief executive is gone (albeit with a stellar severance package and not before attempting to deflect blame towards others).
    The crisis raises all manner of issues, and many different levels. That the board apparently knew nothing of the problem is a bitter pill to swallow. Why not? Was the board asleep at the wheel, or was something else amiss? That it then made all manner of comments heightened the concern.
    Once the emission cloud settles and people gather to understand the root cause, the folk at Volkswagen could do far worse than to look in the mirror—and specifically at how corporate governance is practised. That the two-layer board structure lacked knowledge suggests either ignorance (the board was asleep) or collusion. Neither option covers the boards in glory.
    Might this sad case take us closer to a tipping point, of finally admitting the extant conception of corporate governance (a compliance framework of processes and controls, predominantly) is conducive to neither long-term business performance nor value creation? And, if so, will action be taken to embrace new conceptions of corporate governance, board practice and value creation? For the good of all stakeholders and society more generally, I hope the answer is yes.
    Are you troubled by the Volkswagen experience? If you want to explore new conceptions of corporate governance that are informed by robust research and real-world experience, and test their applicability in your boardroom, please get in touch. I stand ready to help.
  • Published on

    When boards are dissected, they are no longer boards

    Decision Making Governance Leadership Performance Phd Research Strategy
    The modern society we live in has many benefits. Life expectancy and well-being have steadily improved for many: health and education being important building blocks. Most would agree that progress has been 'good'.
    Paradoxically, life has become more complex in some quarters, and answers to some everyday problems remain elusive. The human response to complexity—dissection in search of 'truth' and understanding—has not helped. The reductive assumption that the sum of knowledge of the parts explains the whole is helpful in science, but in social science it fails. Companies (boards, in particular) are a case in point. The pursuit of a single truth ('best practice') is about as helpful to understanding how boards work as dissection studies of body parts is helpful to understanding how humans interact or experience life. 
    The problem is that when boards are dissected and individual elements are studied in search of answers about how boards work, the subject of research is no longer the board. Thus, the very essence of the socially-dynamic entity (the board) being studied is lost. As a consequence, any conclusions cannot, by definition, be representative of what the board as a whole is, does, or might contribute. 
    If we are to understand how boards work and to discover any relationship between boards and business performance, boards must be studied holistically: both in situ and in action. While every situation considered by a board is (to a greater or lesser extent) unique, emerging research suggests that some patterns can be discerned if the empirical data collected from within the boardroom is abstracted. An important dependency appears to be the decisions made by the board when it is in session. The quality (and, therefore, the potential impact) of board decisions appears to be associated with the quality of social interactions between directors and qualities of the directors themselves, as they seek to fulfil their duties. These qualities and social interactions are the subject of my doctoral research, currently before the examination panel. I look forward to sharing the results of this work, here and elsewhere, once the examination process is complete.
  • Published on

    Applied research: Strategy in the boardroom

    Decision Making Governance Leadership Research Strategy
    My nine-day visit to the UK and Ireland to discuss board and corporate governance topics and to share emerging research with board directors, executives and academics is drawing to a close. From meetings in the hallowed halls of the Institute of Directors on Pall Mall, office buildings, various fine dining restaurants and cafés, and university premises in Wolverhampton and Ulster; to master class presentations and a guest lecture, it has been a delight to engage with people who are deeply interested in corporate governance and the board's role in business performance. Thank you.
    Now, the task of addressing the numerous requests for more information, and to schedule future meetings, speaking and advisory engagements beckons. This is my priority over the coming days.
    Amongst the enquiries and discussion notes, several people have asked for more information about strategy in the boardroom. While I have written about this in the past, and strategy has been a core element in my doctoral research, interest in up-to-date applied research appears to be high. Given this, my intention is investigate some of the practical challenges faced by boards over the coming months and to publish the findings. However, such research needs willing participants...
    If you or your company board might be interested in participating in research, please get in touch. I am particularly interested in publicly-listed firms, high-growth businesses and social enterprises; in the UK, Europe, the US and Australia. Your expression of interest and any decision to participate (or not) would be entirely confidential, and neither you nor nor your company or social enterprise would be identifiable in any research report that ensues.