I am very interested in decision-making in organizations as well as in social media. This means a book like ‘An Ugly Truth – Inside Facebook’s Battle for Domination’, by Frenkel and Kang is a double whammy for me.
The book describes the different scandals Facebook has been involved in in the past couple of years (e.g the Russian interference in US presidential elections, Cambridge Analytica, and the mass murder of Rohingya people in Myanmar). These scandals are well known and well documented in other books. The added value of this book is that it describes the decision-making process of the top leadership of Facebook with regard to these scandals.
What is even more interesting is the link the book makes between the motivation and ethics of the key decision-makers on the one hand and their decisions on the other.
In short, self management simply means ‘no bosses’. That’s it (Geoff Roberts)
Thinking back on your highschool school days, do you remember the popular child with its entourage deciding which music, movies and influences were in, or out; whose parties everyone wanted to be invited to? Did you also have a bully at school who terrorized the schoolyard with his accomplices, when no supervising adults were around? Perhaps you also remember the importance of being ‘befriended’ with children in the class whose parents had a swimming pool; and I am sure you also had someone in class whose homework you and everybody else wanted to copy.
I thought the concept of self-managing teams had already died a well deserved death, until I recently saw a clip on YouTube. The clip advocates the concept of self-managing teams by comparing the productivity of self-managing teams with the traffic flow through a roundabout. Different scenarios are compared to ensure the most effective flow to cross an intersection: with or without human supervision, with traffic lights and finally with the creation of a roundabout. Spoiler alert: the roundabout wins. Moral of the story is that in the absence of central control participants will self-regulate the responsibility to cross the intersection, and that by doing so productivity and safety will increase.
I am stunned by the enthusiasm for this clip, because I think the parallel between teamwork and crossing an intersection is incredibly weak. I would even go so far as to say it is non-existent.
I spent a significant part of my working life developing leaders in organizations. What strikes me is that during COVID-19 the demand for this type of work has not decreased; if anything, the demand for leadership development has increased. That is remarkable. During the financial crisis in 2007-2008, for instance, most companies tried to save money, and one of the first things they considered was decreasing the out-of-pocket costs associated with these, and other kind of developmental activities.
Recently I was asked why companies continue to invest in the quality of their leadership at all levels of the organizations, despite the economic uncertainty they are facing.
In my opinion, the reason is that companies have come to realize the growing importance of the quality of leadership at all levels of the organization. I believe that this is a good thing, especially because leadership roles have become more demanding in the last couple of decades, not only for senior leaders, but also for first, and second-level leaders in organizations.
The most important part of leadership is making decisions. Decisions about products and markets to invest in, people to hire and to promote, IT-systems to select, to continue or terminate projects plagued by setbacks, mergers & acquisitions, etc. These decisions determine the success or failure of organizations, projects and individuals.
Ever since my graduation in the field of Sociology, I have always been very interested in the topic of decision making in organizations. At university, I loved the lectures of Professor Lawler about concepts like bounded rationality. I also loved reading books on this topic, including ‘Essence of Decision’ (about decision making in the Kennedy administration during the Cuban missile crisis) and Barbara W. Tuchman’s classic ‘March of Folly’.
Do we really need another book on this topic?
Against this background, I was a bit concerned when my friend and former PA Consulting Group colleague Wim van Hennekeler, told me that he was writing a book about decision making. This was mainly due to my concern about whether he could possibly add value to the vast body of work that was already published on this topic.
Time-efficient alternatives for reading business books
During my years in college, one of the first rap songs that became extremely popular was ‘Paid in full’ from Eric B & Rakim in the Coldcut mix. Its signature ingredients contained the soundbite ‘Pump up the volume’.
‘Pump up the volume’ also was the phrase that resounded in my head when I recently read a bestseller from a well-known Harvard Business School professor. The entire book was based on a single concept that could easily have been explained on one single page. Instead, the author used more than 230 pages, which cost me the better part of a Sunday to read.
Why I like reading business books
I like reading business books for four reasons:
To satisfy my intellectual curiosity
To help me to make sense of what I personally observe about the way organizations ‘work’ (or not!)
To enhance my skills
To keep me ‘current’
Why I am often disappointed after reading them
However, more often than not, I feel reading them is not the most efficient use of my time. The reason why is that (like the example mentioned at the beginning of this post), business books often try to expand ideas and concepts that could be explained in a couple of pages to the size of a book. This almost always means they need to cross the magical border of 200 pages.
I think this phenomenon is caused by the fact that business books mean ‘business’. Although it is not easy to gain insight into the market for business books, creatively extrapolating existing statistics indicate that each year more than tens of millions of business books are sold across the world. Therefore, the market for business books might be around one billion dollar. NB: This estimate excludes the sales of textbooks for higher education.
The invention of the printing press proved to be a pivotal point in the development of our society because it enabled the dissemination of ideas and information at an unprecedented pace. It is unlikely that, without the printing press, the Reformation in the 16th century would have had such a huge impact, so quickly.
In the 20th century, radio and television increased the speed of information even more. It is likely that the public opinion about the war in Vietnam (the first television war) changed significantly as a result of the coverage of this war on television.
Social media emerges
No wonder that many governments tried to control these media, either in the form of censorship, or by creating monopolies for news dissemination (e.g in the former Soviet Union).
At the end of the 1990s, social media platforms started to emerge, disrupting the traditional media landscape of newspaper, radio, and television organizations.
One of my core beliefs as a management consultant is that the root cause of why change projects fail is the lack of a clear and convincing business case. In my experience, the vast majority of people are willing to change (even if this change has negative implications for them), as long as they understand the rationale behind the change and have the means (resources) to change.
However, I also have come across a number of people who did not want to change, even when there was a clear need to do so, and they had all the required capabilities and resources at their disposal.
In 2018, the Cambridge Analytica scandal shocked the world. It became clear that Cambridge Analytica had used data from tens of million Facebook users, to influence the elections in the US, and the Brexit referendum.
A couple of days ago my bible app opened with this verse of the day: ‘To do righteousness and justice is more acceptable to the LORD than sacrifice’ (Proverbs 21:3).
This text reminded me of the way some companies deal with Corporate Social Responsibility (CSR). Rather than doing the right thing, they do the wrong thing and compensate for this by deploying CSR initiatives. There is even a special term describing this phenomenon: ‘Greenwashing’. In this context, it is no wonder that two professors from IMD (a leading Swiss Business School) published an article in 2018 with the provocative title: ‘Why nobody takes corporate social responsibility seriously’.
The world will fundamentally change in the next decade
Whether you are listening to McKinsey, the IMF or the Economist, all modern-day prophets of doom agree that COVID-19 is having a devastating impact on our society and the economy. This impact will be felt long after this pandemic has passed.
Although I am not an incarnation of Alvin Toffler, the famous futurist and author of ‘Megatrends’, merely by observing the news and talking to clients and colleagues, I see a couple of clear trends and tipping points, which lead me to believe that the ‘new normal’ will look different than the ‘old normal’.
I always felt a deep respect for people who take personal risks in daring to confront oppression in a peaceful manner. Names like Mahatma Gandhi, Vaclav Havel and Andrei Sakharov spring to mind.
This Easter I especially think of German Lutheran theologian Dietrich Bonhoeffer (1906-1945), who was executed 75 years ago because of his active resistance against the German Nazi regime at that time.
Why the decision to eliminate a key feature of Wunderlist is hard for me to understand
By Dirk Verburg
I am very interested in personal effectiveness and am using a number of apps to ‘hack’ my personal productivity level:
Grammarly – Unbeatable to spell check anything I type in a brower. Great integration with Google Chrome
Small Pdf – A small Swiss gem, shrinks pdf’s to manageable sizes, and does so much more
Google keep – Great for keeping notes. Again: available on all platforms I am using. Not the best (Evernote has much more features but useful version are not freeware; OneNote is clumsy if you write entries in more than one language)
Wunderlist – Great activity tracker. Available on all platforms I am using: Apple, Android, and my Chrome Web browser
The core of my IT set-up, however, is Microsoft Office. Both on my Windows PC at work, as well as on my Mac for private use. There are programs in Microsoft Office I love (Powerpoint and Excel), programs that are good (Outlook), and again others I consider to be ‘ok’ (I find Word for instance hopelessly complicated).
Strangely enough, my ideal is the same as that of tech giants like Microsoft, Apple, and Google: stay within a single ecosystem.
Let me start with a confession:I never liked receiving negative feedback, and have spent the largest part of my professional life ignoring it.
I found ignoring negative (or perhaps I should euphemistically say ‘corrective’) feedback to be quite easy. Depending on the situation, I either did not take the person who gave me feedback seriously (‘that is rich – from him?’), comforted myself that the feedback concerned only a minor issue in the grand scheme of my behavior (and that other aspects of my behavior would compensate this), or convinced myself that the person giving me feedback did not understand the context in which I acted the way I did or said the things I said.
It was not until I hit a serious roadblock in my career, that I started to see the fact that systematically ignoring feedback was not necessarily a great idea.
Employee engagement is a topic close to my heart. In the past two decades I have designed, managed and implemented the findings of engagement surveys multiple times, and also managed to write an article with my point of view on how to make them ‘work’.
Given my interest in this topic, I was very pleased to receive a copy of ‘The Art of Employee Engagement’ by Marijn Faassen. I read it in one go, because I found it a fascinating read, for a number of reasons:
Every year millions of people around the world make New Year’s resolutions. Given that we are currently starting the 2020’s, we have the exciting opportunity to make resolutions for a whole new decade!
One of the key notions in this book is that the world has become much more interconnected and therefore more complex. Unfortunately, our decision-making skills are ‘brilliantly designed – for an older, less connected, and more predictable version of the world’. In this context, Jennifer Garvey Berger mentions five mind traps we can find ourselves in, one of them being trapped in ‘Simple stories.
Two weeks ago, I was asked to participate in an event about personal branding. The organizer asked me to focus specifically on the link between creating a personal brand and remaining authentic.
Because I have been irritated by the majority of the publications on this topic in the last 5+ years, I was excited to speak about it. Why? Because these articles often suggest people need a partial, or even full, make-over, in order to fit the mold of the specific environment they seek employment in. If that does not feel natural to them, the second piece of advice most publications give them is: ‘Fake it until you make it’.
I am a big fan of LinkedIn. Since I joined the platform 12.5 years ago, it has proved to be an incredible source of connections and information, as well as a great platform to publish my ideas. As a matter of fact, I like the platform so much, that I took a premium subscription a couple of years ago.
In order to celebrate this jubilee, I decided to publish my personal wishlist with features I wished LinkedIn would implement. I wish LinkedIn would enable me to:
‘Noblesse oblige’: if you offer branded products or services, ensure your pricing model enables you to maintain the loyalty of your clients by offering a ‘hassle-free’ after-sales experience.
In both the B2C, as well as in the B2B world, there are usually three reasons why people buy branded products and services, instead of generic ones:
1. Unique features
The first two aspects can usually be evaluated before the purchasing process. The third one, however, is mostly experienced only after the initial purchasing process has been completed, and therein lies the problem…
In the 1970s and 1980s, authenticity and self-development in the workplace were considered to be important by many middle and senior managers in the Western world. Perhaps too important: organizations were sometimes seen as narcissistic vehicles for self-development, instead of entities that should serve the interests of their shareholders and/or other stakeholders.
This orientation changed dramatically in the first half of the 1990s. Two popular business books that were published during that time perfectly illustrate this change. The first one was ‘Valuation’ (1990), a book written by Copeland, Koller and Murrin (three McKinsey consultants), the second one ‘Emotional intelligence’ by David Goleman (1995).
Increase your personal effectiveness by dealing with your actions first
For many senior business people, their day in the office resembles drinking from a fire hose. Not only do they need to attend a large number of meetings (often back to back), they are also hit with a continuous stream of ad-hoc questions from their staff, peers, customers, and line managers which require their attention and action.
A couple of years ago I started to get really worried about my personal effectiveness. Despite the outrageous number of hours I spent at work, I found it increasingly difficult to complete my tasks and finish my projects.
In order to address this, I decided to analyze my workload to find out what I could do to change this.
Why I consider ‘Lost and Founder’ by Rand Fishkin to be a must read
At the beginning of my career, I managed a high profile ERP project. A couple of weeks before the go-live deadline, the customer introduced completely new requirements but did not want to shift the deadline. Needless to say, this significantly compromised the amount of time available for testing, something every available textbook warns one about. However, due to a combination of intimidating behavior of the customer, my own unwarranted optimism and lack of experience, I agreed to implement these new requirements and limit the amount of time available for testing. A decision which resulted in a rather ‘volatile’ go-live scenario which was highly visible for everyone in the company…
It is common wisdom that we learn more from our mistakes than from our successes. If anything, success has a tendency to make us complacent, whereas mistakes force us to take a step back, reflect on why our actions and behaviors did not work out as planned, and stimulate us to make changes in the way we approach opportunities and challenges.
When reading social media postings, business magazines and consulting firms reports, it is easy to get the impression that the number one problem organizations are wrestling with is incorporating millennials in the workplace. However, there is strong evidence that the orientation of millennials does not differ from previous generations at all.
The way the market for talent works is frustrating for all parties: both for corporate recruiters as well as for candidates. In order to change this, corporate recruiters should start acting as marketers that know their product and their customers.
The number one problem most corporate recruiters complain about nowadays is application overload. Thanks to LinkedIn and other Internet-based recruiting channels, candidates can ‘shoot at anything that moves’, i.e. submit their CV’s to apply for any opportunity that remotely interests them. As a result, processing applications is experienced as by corporate recruiters as ‘drinking from a fire hose’.
Leaders need to do three things in order to set clear priorities for their organisations
By Dirk Verburg
Most executives I know are extremely busy. It seems they always have more things to do than they have actually time for. This is probably the reason why articles, books, websites and software packages claiming to offer personal productivity solutions are more popular than ever.
Time Management Tools have a limited effect…
No matter how different these solutions are, they all have one thing in common: they force choices. Whether it is the Eisenhower Matrix, Frank Covey’s Time Matrix or Dave Allen’s ‘Getting Things Done’ philosophy, they all force choices between things that need to be done and things that could be done.
Many people try to implement some or all of these tools and techniques in order to try to balance their time with the items on their to-do list. However, most of them remain structurally overloaded. They continue to have more ‘need to do’ actions on their to-do list than they have time for.
In the last couple of years it is extremely fashionable to bash annual performance reviews. A number of companies are publicly apologizing for the fact that they had them in first place, wondering aloud why they could ever have been so stupid, and demonstrate their remorse by publicly joining the ranks of the enlightened ones: those companies that abolished their annual performance review process.
In this context it is important to raise two questions, namely what the purpose of the annual performance review actually is and why it should be abolished. Continue reading →
Critical self-reflection is difficult to acquire, but extremely important for leaders
By Dirk Verburg
For several reasons I love reading autobiographies of leaders in business and politics. The first reason is plain curiosity: the possibility to take a look behind the stage of well-known events. The second reason is because these autobiographies provide a unique opportunity to understand decision making processes from the perspective of the decision makers. Why did they take certain decisions in specific situations? Were they aware of certain developments? From whom did they obtain advice? What was the role of important stakeholders? etc. Continue reading →
Talent management originates from the late 1960s. Since then the business environment has changed dramatically. However, talent management practices in a number of organizations have not been adapted to cope effectively with these changes. This makes these organizations vulnerable to disruptions in their environment. Talent managers should therefore do three things to ensure their businesses have the necessary adaptive and innovative capabilities to cope with disruptions.
By Dirk Verburg
Almost 50 years ago, in 1968, Paul S. Ostrowski published an article with the title “Prerequisites for Effective Succession Planning”. This article is often seen as the starting point for Talent Management. The business environment at that time looked completely different from today:
The importance of the EU is increasing, but its continuity is threatened by the actions and behaviours of its own leaders
By Dirk Verburg
European cooperation is now more important now than ever
To state the obvious: we are living in a VUCA world, a world that is Volatile, Uncertain, Complex and Ambiguous. The world order as we know it seems to be threatened by multiple problems, including (in arbitrary order): the nuclear ambitions of North Korea, the geo-political ambitions of China, wavering loyalty of the current US president regarding NATO, Climate Change, the Refugee crisis, the rise of populism in Western Democracies and Muslim extremism, to name but a few.
Given the nature and scale of these challenges, European countries have a far better chance to achieve a successful outcome if they deal with these challenges jointly, rather than individually.
EU politicians are ignoring warning signals about the lack of support of the EU by their votersContinue reading →
Ever since the industrial revolution, large corporations have played an important role in our society. Due to the globalization in the past decades, their influence is continuously increasing.
At the same time it seems that the number of scandals caused by these large organizations is growing as well. Established names, such as Barclays, Siemens, Wells Fargo, Ahold, VW, BP, Shell, Worldcomm, Tyco, Enron, Olympus, Arthur Anderson, E&Y, the BBC and many others, have all experienced scandals, and some no longer exist as a result.
What complicates this situation even is that governments and other institutions (e.g. regulators and ‘independent’ accounting firms) do not seem to be able to control, or at least monitor, the way companies in the private sector are operating. Continue reading →
How you can prevent pursuing the wrong role and what you can do if you find yourself in one.
No – this is not the title of yet another ‘Trump-bashing’ article, but a genuine empathetic feeling I have for Donald Trump. I already suspected for a long time what Donald Trump recently admitted, namely that he finds the job of being president of the US harder than he expected. The reason I feel sorry for Donald Trump is that I think he might have made a mistake a lot of us are prone to. It is the mistake of applying for a prestigious job, without a proper vision as to what the actual content might be and without honestly reflecting whether this content plays to our strengths and will keep us engaged in the future.
Despite the importance of employee engagement, more and more organizations decide to cancel their employee engagement surveys due to a perceived lack of ROI. Leaders can make engagement surveys work however, by applying three simple principles.Continue reading →
One of the most inspirational videos I have ever seen is the Apple commercial ‘Think Different’. This video shows footage of several leaders from the worlds of business, arts, politics, sports and science, such as Richard Branson, Pablo Picasso, Albert Einstein, Martin Luther King, Mohammed Ali and Mahatma Ghandi. The key message of the commercial is that these people were able to change the world, because they were thinking differently. The suggestion is, of course, that people who purchase Apple products also ‘Think Different’.
The ability to ‘Think different’ is extremely important, but unfortunately not something that comes ‘naturally’ to us as human beings. There are several reasons for this. The most important ones are our ‘Bounded Rationality’, reliance on ‘Heuristics’ and ‘Theory-Induced Blindness’.Continue reading →
Why a sense of belonging is crucial for a healthy corporate culture
By Dirk Verburg
According to Professor of Psychology Kip Williams, the human race ows its success to the fact that we learned to collaborate in groups. We learned that through organizing ourselves in tribes, we hugely increased our chances to survive in a hostile environment. The tribe enabled us to protect ourselves from wild animals, other tribes and food shortages.
The prospect of people who were being ‘ostracized’ (forced to leave the tribe) looked bleak. In pre-historic times, ostracism did not only result in social, but also in a certain physical death. People, who were kicked out of their ‘tribe’ and left to their own devices, were doomed to die, because they could not defend themselves effectively against predators, other tribes and could no longer collect sufficient food.
Because of the latent fears of ostracism that human beings have, managing human behavior by using this threat requires surprisingly little effort. Setting an example by ostracizing just a handful of individuals in a visible manner is enough to instill a sense of fear in a complete community.Continue reading →
These articles had a lot of impact and resulted in a great deal of soul-searching by HR leaders and HR practitioners. Although critical self-reflection is usually a good thing, the question is whether this is justified merely on the basis of these articles. The second question is whether or not this is the most important debate to have about the HR function now – or are there more important issues for HR to focus on.
A number of organizations have not yet unlocked the full value of their HR Shared Service centres due to compromises made at the time they were created. By reviewing and undoing these compromises, companies can unlock the full value of their SSC’s, thereby achieving lower costs and a higher quality level. Continue reading →
As a result of the current economic crisis, a number of people need to take a step back in their career and accept smaller roles than they were used to or hoping for. These people face a choice between accepting this new reality with a positive mindset, or rejecting it and become bitter.Continue reading →
A number of change initiatives in organizations do not add, but rather destroy value. In this article the reasons for this are explained and recommendations are given on how to prevent the launch of such initiatives. Concrete examples are provided to illustrate the issues.