The Integral Leader Summer School 2013: Becoming an Outstanding Leader University of Wales, Trinity Saint David, Lampeter 26 June 2013 Charles Hampden-Turner and Fons Trompenaars Your clients and partners Doing More with Less: Main levers to pull Einstein: "You can't solve a problem at the same level it was created"! Whilst all organizations share the same types of problems during these difficult times, their approach to them is usually culturally biased and often set in their past. New innovative solutions are required that are grounded in sharp strategy, understand the organization's values, reconcile the competing demands of the perspectives of all stakeholders including shareholders, employees and customers, plus solid branding and impeccable design. Approaching Dilemmas: Navigating Strategic Tensions To Create Wealth is to combine Values that are not easily joined….. Therefore scarce... Therefore profitable…. And that is what servant leaders do Servant Leadership (Greenleaf) “Servant Leadership is enabling others to perform better” Main dilemmas (1) On the one hand … On the other hand … We see collaboration as important for the ongoing success of the service provision We want to have shared facilities and “one stop shops” with other public services We need to standardize our systems to ensure the long-term sustainability of the organization We want to ensure that we are properly recognized for our contributions We want to retain our separate identity and role We need high levels of professional specialist expertise to deliver specialist care We need to develop new ways of delivering care across professional boundaries by multi-skilled workers Many of our systems vary throughout each project and are well received and understood by all 6 Main dilemmas (2) On the one hand … On the other hand … People working close to the patients are experts of the issues at that level. We want to encourage individuals to participate their ideas and experience to this change process from the bottom up NHS faces financial pressures and cost saving schemes being developed Development and change is required to meet future needs and requirements We want to focus on what we do well as an organization to ensure we deliver excellent services to our customers Our organization is large and requires strong, top-down leadership to manage this change process Developing patient-centered care that is safe, timely, efficient and effective If it works don´t fix it We need to work in partnership with other organizations to deliver results more efficiently 7 This approach leads to concrete and measurable actions… Impact Realize and Root Reconcile Respect Implement Reconciling Actions Resolve Cultural Differences Appreciate Cultural Differences Recognize Increase Awareness Time Core Proposition “Servant leaders have the propensity and competence to help organizations and its teams reconcile dilemmas for better sustainable performance” Some hard evidence Some hard evidence Our research reveals that propensity to reconcile dilemmas correlates with bottom line business performance Correlation (Spearman’s coefficient of rank correlation) Correlation between reconciliation and 360o feedback by peers and subordinates 0.71 Correlation between reconciliation and bottom line business performance in profit centre/budget stream 0.69 Source: 21 Leaders for the 21st Century p429 Some soft evidence 6. Customer is always “right” versus anticipate customers needs 1. To develop our people versus to become more cost conscious Corporate Effectiveness & Efficiency 5. Global or standardized) products versus local tastes, particular markets 10. Satisfy our customers at all costs versus shareholder value 8. Operational Agility versus strategic clarity Employee Development & Learning 2. Reward our people for their mastery versus Reward our shareholders for their faith in us 7. Equal opportunities versus positive discrimination Satisfaction of the Client 4. Reputation in wider community versus serve our customers wants 9. Leverage intellectual capital versus innovative projects Shareholder Returns & Financial Performance 3. Keep short-term cash flow versus Invest in long-term sustainability Contributions to Society What is Culture? Please define culture A model of culture Physical contact Language Work ethic Food Expression of emotion Meeting style Rhythm & Pace Architecture Behaviour Dress Literature A model of culture Explicit Culture Culture as a Normal Distribution For example US Culture Stereotype French Culture Stereotype A model of culture Explicit Culture Basic Assumptions Implicit Culture About Culture Is a dynamic process of solving human problems/dilemmas in the areas of… - Human Relationships - Time - Nature 01 Rules versus Exceptions 02 Individual versus Team 03 Control versus Passion 04 Specific versus Diffuse 05 Lord versus Servant 06 Sequential versus Synchronic 07 Inner versus Outer Orientation 01/ The Car Accident What happens to your friend? 01/ What right does your friend have? A. My friend has a definite right as a friend to expect me to testify to the lower figure. B. He has some right as a friend to expect me to testify to the lower figure. C. He has no right as a friend to expect me to testify to the lower figure. 01/ Dilemma: INTEGRITY The top 2 of your corporate values are: 1. Integrity 2. We respect the cultures of others Please discuss in the context of these values what your answer would be… 01/ Universalism vs Particularism • Consistency • Systems, standards & • Flexibility • Pragmatic rules • Uniform procedures • Make exceptions • “It depends” • Demanding of clarity • Letter of the law • At ease with ambiguity • Spirit of the law 01/ Universalism Friend has no/some right and would not help Switzerland 97 Canada 93 USA 93 92 Sweden United Kingdom 91 Australia 91 Netherlands 90 Germany 87 83 Czech Rep France 73 Singapore 69 68 Japan Mexico 64 India 54 China 47 Russia 44 37 Korea Venezuela 32 0 20 40 60 80 100 01/ Universalism Friend has no/some right and would not help Switzerland 97 WSS 94 Canada USA 93 93 Sweden United Kingdom 92 91 Australia 91 Netherlands Germany Czech Rep 90 87 83 France 73 Singapore Japan 69 68 64 Mexico India China Russia 54 47 44 37 Korea Venezuela 32 0 20 40 60 80 100 Corporate Effectiveness & Efficiency Employee Development & Learning Shareholder Returns & Financial Performance Global or standardized products versus local tastes, particular markets Satisfaction of the Client Contributions to Society 01/ Dilemma Globalism and Localism Global Standards (Critical Mass) Cultural Diversity (Differing solutions) Globalization vs. Localism Global centralized Global Corporation Multi-Local Corporation Decentralized Multinational Global centralized Globalization vs. Localism Transcultural Corporation International Corporation Decentralized Multinational Universalism versus Particularism - dilemmas On the one hand … On the other hand … Innovation We need to ensure that staff are aware of, and work We should allow staff to work in an innovative way to, policies and procedures laid down for the delivery to get things done in response to customer need of effective services We understand the importance of consistent We have many differing cultures within our teams organizational/team culture on innovation and organizations which create different approaches Sustainability We need to standardize our systems to ensure the long-term sustainability of the organization Many of our systems vary throughout each project and are well received and understood by all Collaboration We want to have shared facilities and “one stop We want to retain our separate identity and role shops” with other public services We need to streamline and homogenize our We need to ensure that the service is sufficiently processes and procedures to deliver maximum bespoke to deal with the problems faced by those benefits from the collaboration and how we deliver people requiring our services services to a greater number of people 31 01/ Main Challenges 1. Mass-Customization 2. Co-Opetition 3. It is Cool to be emotional 4. Moments of Truth 5. Servant Leader 6. Just In Time Synchronizing Sequences 7. Pushing through the Pull 01 Universalism versus Particularism 02 Individualism versus Communitarianism 03 Neutral versus Affective 04 Specific versus Diffuse 05 Achievement versus Ascription 06 Sequential versus Synchronic 07 Internal versus External Control 02/ Individualism versus Communitarianism a) One said: ‘It is obvious that if one has as much freedom as possible and the maximum opportunity to develop oneself, the quality of one’s life would improve as a result.’ b) Another said: ‘If the individual is continuously taking care of his or her fellows then the quality of life for us all will improve, even if it obstructs individual freedom and individual development.’ 02/ Individualism Percentage opting for individual freedom Israel Canada USA Denmark Netherlands Finland Australia UK Sweden Russia Germany Italy Brazil Indonesia Singapore China France Japan India Mexico Egypt 89 71 69 67 65 64 63 61 61 60 53 52 44 44 42 41 41 39 37 32 30 0 20 40 60 80 100 02/ Individualism Percentage opting for individual freedom Israel Canada USA Denmark Netherlands Finland Australia UK Sweden Russia Germany Italy Brazil Indonesia Singapore China France Japan WSS India Mexico Egypt 89 71 69 67 65 64 63 61 61 60 53 52 44 44 42 41 41 39 39 37 32 30 0 20 40 60 80 100 02/ Dilemma Reconciliation The Individual and the Team Case Study: Individual Performance versus Team Spirit 02/ The Individual and the Team Reward Individual Performance Stimulate Team Co-operation Individual Motivation 02/ Dilemma Reconciliation (1,10) Me, Myself and I withholding Information Reward Teams for Individual Creativity (10,10) AND Reward Individuals for Team Work (5,5) Go for the Small team Team Mediocrity (10,1) Team Motivation Individualism versus Communitarianism - Dilemmas On the one hand … On the other hand … Collaboration I want to be unique and work alone We see collaboration as important for the ongoing success of the service provision I want to develop with other colleagues and work collaboratively We want to ensure that we are properly recognized for our contributions 02/ Main Challenges 1. Mass-Customization 2. Co- Opetition 3. Moment of Truth 4. It is Cool to be Emotional 5. Servant Leader 6. Just In Time Synchronizing Sequences 7. Pushing through the Pull 01 Universalism versus Particularism 02 Individualism versus Communitarianism 03 Neutral versus Affective 04 Specific versus Diffuse 05 Achievement versus Ascription 06 Sequential versus Synchronic 07 Internal versus External Control 03/ Neutral versus Affective In my society, it is considered unprofessional to express emotions overtly. Please select your position on the statement above: A. Strongly agree B. Agree C. Undecided D. Disagree E. Strongly disagree 03/ Neutral versus Affective Percentage not expressing emotions overtly 81 Ethiopia Japan Hong Kong China India Canada Denmark Portugal Sweden UK USA Brazil Italy France Argentina Russia Spain Egypt Kuwait 74 % 64 55 51 49 48 47 46 45 43 40 33 30 28 24 19 18 15 0 20 40 60 80 100 03/ Neutral versus Affective Percentage not expressing emotions overtly Ethiopia Japan Hong WSS China India Canada Denmark Portugal Sweden UK USA Brazil Italy France Argentina Russia Spain Egypt Kuwait 81 74 64 % 57 55 51 49 48 47 46 45 43 40 33 30 28 24 19 18 15 0 20 40 60 80 100 03/ Neutral versus Affective Myers Briggs Type Indicator (MBTI) DILEMMA How to select the Right Person? Myers Briggs Type Indicator (MBTI) 03/ Neutral versus Affective Emotions in Control 03/ Neutral versus Affective Emotions in Control Emotions and head in Control 03/ Neutral versus Affective (1,10) Analysis, Paralysis Heart in Passion Emotions and head in Control 03/ Neutral versus Affective (10,1) Loving Neurotic Heart in Passion Emotions and head in Control 03/ Neutral versus Affective (10,10) Continually checking what your heart communicates Heart in Passion Corporate Effectiveness & Efficiency Employee Development & Learning Satisfaction of the Client 4. Reputation in wider community versus serve our customers wants Shareholder Returns & Financial Performance Contributions to Society 01 02 03 04 05 06 07 Rules versus Exceptions Individual versus Team Control versus Passion Specific versus Diffuse Lord versus Servant Sequential versus Synchronic Inner versus Outer Orientation 04/ Specific versus Diffuse Specific versus Diffuse PUBLIC PRIVATE 04/ Specific versus Diffuse Specific Relationship 04/ Specific versus Diffuse PUBLIC PRIVATE 04/ Specific versus Diffuse No Relationship 04/ Specific versus Diffuse PRIVATE PRIVATE Diffuse Relationship 04/ Specific versus Diffuse PRIVATE PUBLIC Danger Zone 04/ Specificity A boss asking to paint his house The colleague argues: You don’t have to paint the house if you don’t feel like it. He is your boss in the company. Outside the company, he has little authority The subordinate argues: Despite the fact that I don’t feel like it, I will paint the house anyway. He is my boss and you cannot ignore it outside your work either. 04/ Specificity Would not paint the house Sweden Netherlands Denmark UK Canada USA Australia Japan Mexico Thailand Greece Belgium Korea Singapore Venezuela Kuwait Nigeria China 91 91 89 88 87 % 82 78 71 70 69 67 66 65 58 52 47 46 32 0 20 40 60 80 100 04/ Specificity Would not paint the house WSS Sweden Netherlands Denmark UK Canada USA Australia Japan Mexico Thailand Greece Belgium Korea Singapore Venezuela Kuwait Nigeria China 95 91 91 89 88 87 % 82 78 71 70 69 67 66 65 58 52 47 46 32 0 20 40 60 80 100 04/ Communication in high and low context Diffuse A larger context Specific A smaller context (from general to specific) (from specific to general) To develop our people versus to become more cost conscious Employee Development & Learning Shareholder Returns & Financial Performance Corporate Effectiveness & Efficiency Satisfaction of the Client Contributions to Society From the Balanced to the Integrated Score Card Balanced Score Card Dilemma… From the Balanced to the Integrated Score Card Specific Financial Performance Diffuse Development of People Specific financial performance From the Balanced to the Integrated Score Card (10,10) Integrated growth: Cost cutting yourself (1,10) Train for Cost Cutting (10,1) Subsidised seminar Interests in future innovating and learning Corporate Effectiveness & Efficiency Employee Development & Learning Positive discrimination versus equal opportunities Shareholder Returns & Financial Performance Satisfaction of the Client Contributions to Society Report ------ Rapport (Deborah Tannen) Specific versus Diffuse - Dilemmas On the one hand … On the other hand … Innovation We need high levels of professional specialist expertise to deliver specialist care Innovation is encouraged We need to develop new ways of delivering care across professional boundaries by multiskilled workers Status quo is preferred Sustainability Funding for staff and services is decreasing Workload and expectation is ever increasing We need to make the organisation financially We need to deliver best possible care for our stable in order to function patients which may require spending money Collaboration I am constantly being asked to engage in command and control management as it is believed that this will deliver rapid results To be truly effective we need to acknowledge that health care is a complex adaptive process and that working in uncertainty is creative We need to be accountable as an individual health organization to meet the needs of our population We want to work effectively in collaboration with other organizations to meet the needs of our population 01 02 03 04 05 06 07 Rules versus Exceptions Individual versus Team Control versus Passion Specific versus Diffuse Lord versus Servant Sequential versus Synchronic Inner versus Outer Orientation 07/ Internal versus External Control A. What happens to me is my own doing. B. Sometimes I feel that I do not have enough control over the direction my life is taking. 07/ Internal versus External Control What happens to me is my own doing Israel Norway USA UK France NL Belgium Italy Korea Germany Japan India Czech Republic Singapore Kuwait Russia China Venezuela 88 86 82 77 76 75 75 72 72 66 63 63 59 57 55 49 39 33 0 20 40 60 80 100 07/ Internal versus External Control What happens to me is my own doing Corporate Effectiveness & Efficiency Employee Development & Learning Shareholder Returns & Financial Performance Shareholder value versus Satisfy our customers at all costs Satisfaction of the Client Contributions to Society From the Balanced to the Integrated Score Card Balanced Score Card Dilemma… From the Balanced to the Integrated Score Card Inner Directed Improvements in Business Processes Outer directed increase in customer satisfaction Inner directed improvements From the Balanced to the Integrated Score Card Lean but mean Integrated growth: (1,10) Pushing through the Pull (10,10) Customer’s captive (10,1) Outer directed increase in customer satisfaction 07/ Main Challenges 1. Mass-Customization 2. Co-Opetition 3. It is cool to be emotional 4. Moments of Truth 5. Servant Leader 6. Just in time Synchronizing Sequences 7. Pushing through the Pull Internal versus External Orientation - Dilemmas On the one hand … On the other hand … Innovation We want to lead and innovate, try new things and be brave We are a government organization and our stakeholders/customers might expect us to be cautious We need to ensure that the most effective services There is a need to minimize risk, and keeping are provided. This may require services to change services/treatment as they are means that staff are and adapt as more evidence/treatments becomes familiar with the service, and this helps to avoid available unnecessary risk Sustainability Development and change is required to meet future If it works don´t fix it needs and requirements We need to continue to develop and change to meet We need to develop sustainable services population needs Collaboration Cultural and historical bureaucracy provide security Technology has moved at pace and we should take and encourage confidentiality advantage of it We want to focus on what we do well as an We need to work in partnership with other organization to ensure we deliver excellent services organizations to deliver results more efficiently to our customers Corporate Effectiveness & Efficiency Employee Development & Learning Shareholder Returns & Financial Performance Satisfaction of the Client Contributions to Society 01 02 03 04 05 06 07 Rules versus Exceptions Individual versus Team Control versus Passion Specific versus Diffuse Lord versus Servant Sequential versus Synchronic Inner versus Outer Orientation 05/ Lord versus Servant What You Do Who You Are STATUS ? 05/ Lord versus Servant ‘The most important thing in life is to act as really suits you, even if you don’t get things done’ 05/ Lord versus Servant Percentage not agreeing with acting as really suits you USA Australia Canada UK Sweden Denmark Germany Switzerland France Hong Kong Mexico Russia China Japan Poland Korea Czech Republic Argentina Egypt 76 69 % 65 56 54 49 40 34 33 32 31 30 28 26 21 20 13 12 4 0 20 40 60 80 100 05/ Lord versus Servant Percentage not agreeing with acting as really suits you USA Australia Canada WSS UK Sweden Denmark Germany Switzerland France Hong Kong Mexico Russia China Japan Poland Korea Czech Republic Argentina Egypt 76 69 % 65 59 56 54 49 40 34 33 32 31 30 28 26 21 20 13 12 4 0 20 40 60 80 100 Achievement versus Ascription - Dilemmas On the one hand … On the other hand … Innovation We need to attract new talent and skills We have a moral and corporate into the department for short - medium responsibility to give those displaced term in order to provide innovative internally the opportunity to fill these posts solutions to issues we are facing first Collaboration People working close to the patients are experts of the issues at that level. We want to encourage individuals to participate their ideas and experience to this change process from the bottom up Our organization is large and requires strong, top-down leadership to manage this change process 05/ Achievement versus Ascription Performance Status Lost democratic leadership (1,10) Attributed status by seniority or role Performance Status 05/ Achievement versus Ascription Follow the Leader (10,1) Attributed status by seniority or role Performance Status 05/ Achievement versus Ascription The Servant Leader (10,10) Attributed status by seniority or role 05/ Lord versus Servant Servant Leaders… However…the starting point might be different in different cultures so: • Make better rules out of • exceptions • Let creative people work in Look for the exception that proves the rule • teams Create teams that support individual creativity • Craft Strategies • Strategically Craft • Report within Rapport • Rapport within Report • Connect Inner with Outer Worlds • Adapt internally to outside forces • And lead by serving • And serve by leading The differences between many cultures are ‘Mirror Images’ of each other. The dilemmas are the same. `For the Servant Leader values are COMPLEMENTARY The logic has been reversed An organization’s sustainability is how its leadership chooses and deals with the dilemmas originating between the stakeholders and creates culture as a context. Questions? Key Takeaways – short list • Instead of focusing on the conflict between different values, look for theopportunity to gain more through genuine collaboration than you might have thought possible (than by following your original approach) • Be aware of the power of your “default” – e.g. the approach you habitually adopt when things get hard, or when you are feeling too comfortable • Broaden your repertoire of communication practices and business customs • Create informal opportunities to interact • In short - acknowledge complexity: e.g. the way we talk about west and east is at best a shorthand for something much richer THANK YOU! TO DOWNLOAD THIS PRESENTATION PLEASE GO TO www.thtconsulting.com PASSWORD WSSJune2013 VOTE for Fons for the 2013 Thinkers50 poll at http://www.thinkers50.com/vote @THTConsulting /THTConsulting Dilemma theory: resolving strategic issues DILEMMA (from the Greek meaning) TWO-PROPOSITIONS IN (APPARENT) CONFLICT Centralization Decentralization Centralizing Culture Space Decentralizing Centralizing Knowledge Better Centralized Knowledge of ever more Decentralized Activities Decentralizing Activity Universalis m Vicious and Virtuous Circles Particularism Main dilemmas (1) On the one hand … On the other hand … We see collaboration as important for the ongoing success of the service provision We want to have shared facilities and “one stop shops” with other public services We need to standardize our systems to ensure the long-term sustainability of the organization We want to ensure that we are properly recognized for our contributions We want to retain our separate identity and role We need high levels of professional specialist expertise to deliver specialist care We need to develop new ways of delivering care across professional boundaries by multi-skilled workers Many of our systems vary throughout each project and are well received and understood by all 105 Main dilemmas (2) On the one hand … On the other hand … People working close to the patients are experts of the issues at that level. We want to encourage individuals to participate their ideas and experience to this change process from the bottom up NHS faces financial pressures and cost saving schemes being developed Development and change is required to meet future needs and requirements We want to focus on what we do well as an organization to ensure we deliver excellent services to our customers Our organization is large and requires strong, top-down leadership to manage this change process Developing patient-centered care that is safe, timely, efficient and effective If it works don´t fix it We need to work in partnership with other organizations to deliver results more efficiently 106 Reconciling cultural differences Dynamic process of solving dilemmas in six steps: 1. 2. 3. 4. 5. 6. Identify dilemma Chart dilemma Stretch dilemma Define epithets Reconcile dilemma Define action points Reconciliation Worksheet 1. Describe the Dilemma: • on the one hand: • on the other hand: 1,10 3. List Positives for Y-axis: 10,10 5. 4. + + + 5,5 4. - 10,1 2.Y-axis label: List Negatives for Y-axis: 1. Identify the dilemma 2. Chart the dilemma a. Be specific by making the dilemma defined under 1 more concrete b. Label the axes reflecting the opposing positions (positive or neutral) c. Plot the positions of the actors 3. Stretch the dilemma Describe the positives and negatives of each side of the dilemma 4. Make epithets Put epithets (sweet and sour) in each of the boxes 5. Reconcile the dilemma Ask how Value X can support Value Y and vice versa 6. Develop action plan 4. 2.X-axis label: 3. List Positives for X-axis: + + + List Negatives for X-axis: - 6. Action plan Actions: Obstacles: Monitoring: - Dilemma reconciliation Steps in reconciling dilemmas: • • • • • Choose the dilemma you want to work on and sign up Chart the dilemma: make it specific to your table Stretch the dilemma: List the positives and negatives Define epithets Reconcile the dilemma: – How can I get more of Value X through Value Y, and – How can I get more of Value Y through Value X? • Develop action plan