Corporate Cultural Change, Leadership, and "Viewpoints"

Why do some companies do well long-term with the founding CEO while others flounder?

Why do some organizations have significant difficulty adapting to change?

A Rice University study suggests that placing a CEO who grew up with the company is a "safer bet" over the long-term than bringing in an outsider.  What are the secret ingredients to short and long-term leadership success?

I believe a key "secret ingredient" includes the ability of the culture to adapt.

In today's ever-changing world, it is imperative that organizations have the ability to adapt to changes as quickly as possible.  Few organizations have the ability to adapt to change quickly.

Some organizations have a corporate culture that is more adaptive in nature while others have a more rigid, non-adaptive culture.  The source of the ability to adapt may be found through the leadership competency of top leader(s) of the organization in combination with their "viewpoint". 

Strategic and leadership "viewpoints" fascinate me.  Some organizations are quite strategic, visionary, and focused on the Customer.  These "adaptive" organizations are led by strategic and visionary leaders.  Other organizations do not adapt and are not particular "visionary". 

The reality is that all problems start at the head - the effectiveness of the leadership of the organization sets the strategic tone and cultural adaptability of everyone that reports to them.

A Definition - Inside View vs Outside View

In his book "Think Twice" (2009) by Michael J. Mauboussin, the "inside view" considers a problem "by focusing on the specific task and by using information that is close at hand, and makes predictions based on that narrow and unique set of inputs."  The "outside view" asks if there are "similar situations that can provide a statistical basis for making a decision.  Rather than seeing a problem as unique, the outside view wants to know if others have faced comparable problems and, if so, what happened."

Key Cultural Transformation Message - Successful organizations that demonstrate a long-term ability to adapt to change demonstrate the ability to strategically maintain an "outside view". 

Maintaining an "outside view" as a culture element is a strategic cultural choice.  This choice is set and modeled by top leadership.

From a corporate culture perspective, Kotter and Heskett share their research in their excellent book, "Corporate Culture and Performance" (1992).  They argue and their research suggests that competent leaders who create cultural change have an "outsider's perspective" AND "insider's resources". 

Kotter and Heskett describe the "outsider's perspective" as an "unconventional" perspective with a "broader view" as well as "greater emotional detachment" that often does not necessarily come those who have grown their careers with the organization.  Yet evidence suggests that companies that "grow their own" often do better over the long-term. 

Kotter and Heskett suggest that the larger the organization, the greater the CEO's need for "insider's resources" - insider background, relationships, and power-base.  The "unconventional insider" is perhaps the ultimate combination of "outsider's perspective" and "insider's resources" identified by Kotter and Heskett.

From my research and experience, organizations often have one of the above - effective leadership, strong outsider's perspective, or strong insider's resources. It is rare that any one leader has has all three.  When all three are present, the results can be quite significant.  When the organization has an "unconventional insider" (ie: Jack Welch), the potential is incredible. 

Key Culture Transformation Questions For You

• What are you doing to develop your future leadership to have the "inside view" and the "outside view"?
• Do your leaders effective leadership abilties as well as the "outsider's perspective" AND "insider's resources"?
• Are you identifying future "unconventional insider" leaders?
• What is your organization's culture?
• Are you shaping your culture purposefully?

Now go Maximize Possibility!

Other posts you may be interested in:

• Startups and Culture Shaping
• "Hey!  I Want my $200K Back!"  The High Cost of Hiring Mistakes
• Hiring the Best Sales People
• How Poorly Fit Team Members Pose as High Performers
• Are You Hiring Candidates or Selecting Them?  There is a BIG Difference!

Chris Young helps organizations Maximize Possibility through talent management, cultural transformation, and strategic intervention.  

1-866-988-RAIN

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here's a good video round table discussion on change, innovation, transformation:

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