SEVENTH ANNUAL KEY EXECUTIVE LEADERSHIP CONFERENCE Leading with Courage and Confidence in Turbulent Times FHI 360 Conference Center, Washington, D.C. Wednesday, May 11, 2016 “SILO-BUSTING” THROUGH ACTION LEARNING JOSEPH A. SCLAFANI MBA PHD CHANGE MANAGEMENT ASSOCIATES INTERNATIONAL, INC. What does Silo mean to you? 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times 2 Silos “Silos in organizations [are] vertical cleavages running up and down the hierarchy that separate functions from each other.” - Mintzberg (2009) Functional silos are “compartmentalized operating units isolated from their environment. . . . [They] are often created as specific business processes or functions are delegated to a group within a company. - (Motiwalla & Thompson (2009) 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times 3 Silos “Silos are nothing more than the barriers that exist between departments within an organization, causing people who are supposed to be on the same team to work against one another.” - Lencioni (2006) A Functional Silo is an “individual business function that tends to act as a stand-alone function, often formulating its own strategies and work plans in parallel with other business functions. This expression is used when describing an organization whose functions tend to be less communicative and collaborative.” - Technology Training Ltd. “Silo . . . is a figure of speech for organizational entities – and their management teams – that lack the desire or motivation to coordinate (at worst, even communicate) with other entities in the same organization.” - Serrat (c.2010) “ . . . Like viruses, [silos] occur naturally” 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times 4 Help or Hinder Organizational Effectiveness? 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times 5 Discussion In what ways do you find that silos contribute to your organization’s effectiveness? 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times 6 Silo Positives Pool expertise – facilitates the exchange of ideas, knowledge, contacts Supports specialization – technical excellence & social interaction Economies of scale – reduces duplication of resources by different work flows Facilitates information flows – up & down the functional vertical 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times 7 Discussion In what ways do you find that silos detract from your organization’s effectiveness? 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times 8 Silo Negatives Barriers to cross-silo collaboration – Metrics incentivize silo vs. organizational performance – Bureaucratic processes stymie innovation, e.g. decision-making, silo-specific tools/techniques – Limits view of end-to-end workflow, i.e. across functional boundaries – Detracts attention to broader organizational objectives 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times Silos work against recognition of corporate-level opportunities 9 Like “talking to the wall” 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times 10 Lack of Accountability 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times 11 Misses the “Big Picture” 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times 12 Limits Vision 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times 13 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times 14 Discussion Any examples you know personally of yourself or someone else successfully managing beyond silos? 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times 15 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times 16 Limiting Silo Negatives Promote lateral processes: • Informal/voluntary, e.g. interdepartmental rotation; interdepartmental events; colocation; consistent metrics & rewards • Formal cross-functional groups, e.g. workouts, agile management processes • Linkage processes, e.g. corporate values, policies, procedures & rules • “Integrator” role to lead the formal group 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times 17 Discussion What do you find to be your biggest problem in managing beyond the silos? 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times 18 Silo Negatives Silo Mentality – “reluctance to share information, make connections between their work and the work of other departments, or see where collaboration could bring mutual benefit” • Entrenched subcultures with distinct values, perspectives • Internal status systems • Distrust or resentment of other departments • Allegiance to profession over organization • Facilitates “victim” psychology, e.g. fosters finger-pointing, blame shifting, defensive personnel 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times - Loudon (2005) • “vertical ghettos” • “foxhole management” • “hardening of the categories” • “towers of Babel” 19 Key Challenge Silo Mindset 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times 20 “True collaboration begins inside the individual, . . . Then works its way out into the organization.” 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times 21 Action Learning A process of insightful questioning and reflective listening by a small group working on real problems, taking action, and learning while doing so Action Learning creates dynamic opportunities for individuals, teams, leaders and organizations to successfully adapt, learn and innovate 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times 22 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times 23 Puzzles vs. Problems Puzzles are “difficulties from which escapes are thought to be known.” Problems have “no single course of action . . . so that different managers, all reasonable, experienced and sober, might set out by treating them in markedly different ways.” (Revans, 2011) 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times 24 Action Learning Group • 4-8 members • Diverse • At least one member should be unfamiliar with situation/problem • May call on external resources when needed • Empowered to take action 25 Ground Rule #1: Statements only in Response to a Question; and anyone can ask a question 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times 26 Power & Role of Questions • Changes dynamics of listening and problem solving – counteracts “bias to premature action” • Serves as foundation of dialogue – develops a shared understanding of problem context & content • Creates receptiveness to change and development • Builds group cohesion The seeds of solutions often reside in questions 27 From Debate . . . . . . to Dialogue 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times 28 Clarify the Problem 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times 29 Puzzles or Problems? 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times 30 Surface & Challenge Assumptions “There are no facts, only interpretations. - Nietzsche 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times 31 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times 32 Take Action 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times 33 Ground Rule #2: Action learning coach has authority to intervene when s/he identifies a learning experience during and at end of session 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times 34 Double-loop Learning 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times 35 Accountability 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times 36 Decisions to Trust 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times 37 11 May 2016 7th Annual Key Executive Leadership Conference: Leading with Courage and Confidence in Turbulent Times 38