Enter Howard Buffett–Future Guardian of the Culture at Berkshire Hathaway

In an interview on 60 Minutes Warren Buffett (the ultimate numbers guy) has indicated that he wants his son Howard to eventually take over as Chairman of Berkshire Hathaway.  Howard, a farmer, knows a fraction of the securities business that anyone else currently at Berkshire Hathaway knows.  Why, then, does Warren want Howard (of all people) to be his successor?  According to Warren, Howard will be the ‘guardian of the culture’!  Warren believes that, upon his transition from the firm, the thing that would unravel Berkshire Hathaway faster than anything else is the dilution of the culture at Berkshire Hathaway.

As Warren knows only too well, what a principled culture giveth, an unprincipled one taketh away!

The Power of Professionalism Is Finalist For Soundview’s Business Book of the Year

Yesterday Soundview Executive Book Summaries announced that The Power of Professionalism is one of five finalists for their prestigious Harold Longman Business Book of the Year award.  We’re honored to be considered.

Soundview’s subscribers vote amongst five books that comprise the finalists.   I’m not clear when the winner will be announced but Soundview will eventually post the results on their web-site.  We’ll let you know how it turns out.

 

Sniffing Out BS–Help For Your Meetings

Steve Jobs had what others called a ‘reality distortion field’.  In other words, there were times in which Jobs didn’t have a good grasp on reality. He was a showman that  believed his own stories—even ones that were without merit. Complicating the situation, Jobs would be prone to exaggerate, misrepresent facts, manipulate resources to his benefit—things that didn’t engender trust. (Note: there were other times in which Jobs used his reality distortion field to push people to do things that were thought to be impossible—arguably a good thing.)

People wrote this off to “Steve just being Steve.”  Jobs was far more prone to do this than most of us.  Yet, there were times when Steve’s inability to see reality hurt his  organization’s ability to do great work.  Each of us, in varying degrees, do this too…believing our own stories. Let’s get real here…some of our stories just don’t reflect reality.  And when our inability to be objective goes unchallenged it retards our organization’s ability to do great work.

General Richard Myers, the former Chairman of the Joint Chiefs of Staff knew this. While Chairman, General Myers introduced a protocol for the meetings held by the Joint Chiefs. The protocol was intended to sniff out (what they considered to be) someones ‘BS’. ‘BS’ was considered to be people’s stories that didn’t reflect reality, comments that bordered on wishful thinking, or diatribes that bordered on self-delusional grandeur. The Joint Chiefs committed themselves to do great work–and that meant calling out people on their ‘stuff’.

General Myers, a contributor to The Power of Professionalism, told me the protocol worked great for them. That’s been my experience too. Calling people out on their ‘stuff’ in some organizations can initially feel like it’s personal. However, over time people get beyond that.  The reason is simple—the focus is on the work, not the person.

Meeting protocols (a meeting norm) produce better meetings…which is condusive to doing great work.  Today’s blog identifies one such norm. Simply put…it’s a pre-meeting agreement that makes it safer for people to speak up on a sensitive topic. You can compliment this meeting norm by having attendees throw a soft-sided object (or equivalent) at a predetermined location (or even a person) when a meeting norm is violated.  This introduces a lighter side to an otherwise touchy situation. There’s a gazillion ways to compliment a meeting norm in this manner.

To do great work, you’ve got to be objective.  You’ve got to see the world as it is–not how we want it to be. Using this type of meeting protocol helps keep everyone honest…keeps people on track…and gives you the best chance to do great work.

 

 

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An Important Reminder From Jim Collins About ‘A’ Cultures

In The Power of Professionalism we advocated that there were three levels in  assessing whether an organization had centered their culture on professional ideals. ‘A’ was the best, ‘B’ was OK, and ‘C’ was…well…out of the running.  Almost without exception, it’s the dedication (and discipline) of the organization’s leaders that enable an ‘A’ culture to become that way.

It’s within an ‘A’ culture that people gather to do great work, to solve big problems, to (borrowing an over-used phrase) make a difference. Granted, these are not at the exclusion of self-interest….but it’s not their express purpose.

Consider this quote from Jim Collins and Morten Hansen’s wonderful new book Great By Choice

“The greatest leaders we’ve studied throughout all of our research cared as much about values as victory, as much about purpose as profit, as much about being useful as being successful.”

If one were able to concoct a secret sauce for an ‘A’ culture, the “great leaders” Collins alludes to would be the very first ingredient.

 

Frances Hesselbein–Special Person, Special Professional, Special Leader

I considered myself fortunate to have Frances Hesselbein as a contributor to The Power of Professionalism.  She’s a remarkable woman. The legendary Peter Drucker once called Frances the most effective executive he had ever met. I better understood what Drucker meant when I interviewed Frances in her New York office in April 2008.  Recently Fortune ran an article on Frances–ninety six years young and still going strong. I thought you’d appreciate reading it.

Have You Washed Your Hands?

Hospital acquired infections can prove a serious danger to unsuspecting patients—especially those already vulnerable due to illness and such.  Inadequate hygiene practice on the part of doctors and nurses is often the culprit.  Simply put…that can mean forgetting to wash one’s hands before coming in contact with a patient.  Proper hygiene practice is more than merely the washing of one’s hands, but it’s certainly a big (and obvious) part of it.

Kaiser Permanente ( a well-known health care provider in my area) tackled this problem head-on…even if it meant taking on some sacred cows.  I learned this first-hand while aiding my 83 year old mother during her pre-surgery orientation at the hospital.  The nurse explained what was expected of my mother (i.e. no fluids after midnight, no wearing of any jewelry, etc).

Most of the instructions were predictable, but there was one big surprise at the end.  “Now there’s one last thing you must do any time any of the nurses or doctors are about to treat you.”  “What’s that?” my mother asked.  The nurse smiled, “Ask them if they have washed their hands.”  My mom wasn’t sure if the nurse was serious.  ”You’re kidding, right?” my mom asked.  The nurse absolutely was serious.  Turns out, every patient gets the same request about asking the staff if they have washed their hands.

My mother was unaccustomed to asking her care givers (doctors especially) such questions—largely for fear of offending them.  Certainly, she wasn’t bashful about asking more technically-oriented questions.  But the ‘hand-washing’ thing threw her for a loop.  At first she thought it demeaning to ask a specialist who has a gazillion years invested in training the same question she used to ask me as a little kid before we’d sit down for dinner.  These aren’t children, she argued.  She concluded that the question was too basic, too fundamental to really have any real impact.  Plus, the last thing you want as a patient is to have your care-giver get ticked-off at you.

But later, in a moment of bashful curiosity, mom (in her own round-about way) asked the ‘hand-washing’ question of her surgeon.  He wasn’t offended in the least.  In fact, he thanked her for asking.  That was all it took, mom began to ask the ‘hand-washing’ question all the time—at times shamelessly.    It seemed she even took some small measure of delight in it.

The sacred cow (the inquisition of a doctor by a lay person questioning the doctor’s commitment and discipline) had been put out to pasture.   Hooray for Kaiser— and other like-minded health care providers—- who have accomplished this marvelous breakthrough.  Their culture is now healthier…more capable of delivering  even greater health care results…far less likely to unintentionally infect a patient….all consistent with mind-set #1 which is all about having a bias for results.

Each organization has their own sacred cows that retard the health of their organization’s culture.  As Kaiser demonstrated, sacred cows can be overcome with commitment and perseverance.

In your organization, what sacred cows would you like to put out to pasture?

When Unique Knowledge Trumps The ‘Wisdom’ Of Crowds

Our Nov 3rd post—Ask The Right Person The Right Question—pointed out that for us to be confident in the answers to our questions,  it’s imperative that the person(s) be ‘in a position to know’.  Perhaps that seems obvious, but too often questions are asked of people that aren’t really informed on the subject in question.   This is especially true when it comes to surveys.

Consider the sample survey we use to assess the strength of the mind-sets within an organization.  A seven point scale is assigned to each of the seven mind-sets—seven is great and one is terrible.  An organization may score consistently high (6.3) in mind-set #1 (professionals have a bias for results) across the entire enterprise.  Mind-set #2 (Professionals realize (and act like) they’re a part of something bigger than themselves) may also score well (5.4).

The score of 6.3 for mind-set #1 seems like a natural in light of the organization achieving 110% of its annual revenue goal—the organization’s most important objective for the year.  Across all departments, no department scored mind-set #1 lower than 6.0—showing great consistency across all departments.

Mind-set #2 is another story.  Every department scored mind-set #2 at least a six—except for one.  The CFO’s office collectively scored mind-set two a 3.1.  It was the scores from the CFO’s office that brought the overall score for mind-set two down to 5.4.  Was there unique knowledge contained within the CFO’s office that prompted the 3.1?  Turns out, there was!

In light of the great revenue year, the company was sitting on a pile of cash. Instead of paying down the company’s extensive debt, the organization’s leaders (by way of a contentious 60%/40% vote) elected to take generous bonuses instead.  This ultimately proved problematic as creditors later came with saber’s rattling.

Those in the CFO’s office had unique knowledge.  In turn, they scored mind-set #2 poorly—deservedly so.  Had the rest of the enterprise known the same, no doubt, they too would have scored mind-set #2 poorly.  What initially looked like a pretty good score for mind-set #2 turned out to be a false-positive.  This was caused by the lack of good information…people were simply ill-informed.

Sometimes what looks like a survey aberration is really an important by-product of unique knowledge.  It would have been a mistake to become confident about the survey results associated with mind-set #2 from the raw numbers alone.   Confidence should stem from informed choices….and reinforces the point that people aren’t necessarily ‘in the know’ as much as we assume.

 

‘Professional’–A Super Identity

Mitch Wasden— chief executive officer at Ochsner Medical Center in Baton Rouge, Louisiana—recently posted an interesting article on the Harvard Business Review Blog Network about ‘Identity’. Those of you familiar with The Power of Professionalism know that one’s ‘professional’ identity is at core of my new book. ‘Professional’ , as I point out in my follow-up comment to Mitch’s article on the HBR site, is really a ‘super identity’. It’s unique. Check out Mitch’s article–along with my comment. I’ve also re-printed my comment below:

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“Identity, indeed, is at the root of so many of one’s decisions and subsequent actions.  And Mitch is right that identities can work at cross purposes.  It’s my view there’s one identity In the workplace that trumps all others—that of being a professional.  It’s like a super identity.   It’s  powerful because it truly identifies who you are — not what you do.  This helps minimize the cross-purpose problem.”

“After all, isn’t that what an identity is supposed to do….give us a clear picture of who we are…as opposed to what we do ( being an ‘expert’, being an accountant, etc).  Too often our identities are centered on what our vocation or expertise is (what we do).  Do those Identities drive our decisions and actions? Absolutely!  But…

…it’s my view it’s more important to be a professional who happens to be an expert….more important to be a professional who happens to write code…be a nurse…or be a CEO for that matter. The reason is simple….it’s because of how the professional thinks…the professional holds certain mind-sets.”

“For instance, a professional realizes they’re part of something bigger than themselves–and they act like it.  So take the expert in the meeting in which he’s challenged. Sure his ego is going to take a hit….but which identity would you prefer the individual to hold in that situation…”I’m an expert” or “I’m a professional who happens to be an expert”?  Which identity would contribute to a more constructive outcome–for the individual expert as well as the group collectively?  Which identity would help avoid a contentious confrontation?  Which identity would best aid a constructive conversation?  Which identity is going to help the ‘expert’ bring out his ‘best self’ in that situation?”

“I’ve found that it’s the latter —“I’m a professional who happens to be an expert”. The professional knows by default (because of being part of ‘something bigger’) that “I’m a team member”—and (generally) they act accordingly.  This is why one’s ‘professional’ identity trumps other, arguably more tactical, ones.”

NOTE: I’ve identified seven mind-sets held by trusted professionals…the one above, plus six others. .

“Unfortunately, too often we’ve forgotten what it really means to be a professional. Consistent with that, I’ve also found that few hold ‘professional’ as a core part of their identity.  That’s unfortunate, but it’s something I’m working on.”

Bill Wiersma, Author– The Power of Professionalism (2011)

Getting Out Of Your Own Way

Mind-set #1 is about having a bias for results. Get results and you’ll be trusted.  Simple.  Naturally,    people say they hold this mind-set…after all, that’s what they feel others expect them to say.  But saying you’re committed and demonstrating it are two different things.  It’s when one’s buttons get pushed, when one’s comfort zone gets invaded that you really find out whether the commitment is real or faux.  Turning up the heat acts as the ultimate stress test…as you’ll soon out if you’re committed to really delivering results or not.

What happens when:

***the entrepreneur with a great new idea seriously questions whether they are the right person to bring the idea to fruition.

***the senior officer in the Fortune 500 realizes she’s about to hire someone smarter and perhaps more capable than she is.

***the managing partner who willingly steps aside to aid the ensuing merger with another firm.

Sometimes getting out of our own way is the very best thing we can do in bringing forth the best possible results.  It may require that we put our ego aside or lose control to a third party.  It may result in being relegated to the shadows, instead of the spotlight.  It may mean taking a short term financial hit.  It may just break our heart.  Know in the end it’s always few who take this less-traveled road.  They may not like it, but they do it anyway.  After all, it’s who they are—namely professionals.

It Gets Worse–Legalized Insider Trading Revealed In 60 Minutes Story

After writing The Power of Professionalism there are (literally) hundreds of illustrative stories about distrust that I could share with readers if I chose to.  Almost always I chose not to share them—largely because people have become desensitized.  There’s too many and, cumulatively, they become too painful. People know there’s a big problem with distrust–there’s no sense piling on.

That said, a recent story is worthy of sharing–because it exposes (essentially ) legalized political insider trading in Washington. We have 60 Minutes story– Congress Trading Stock Insider Information to thank.

If you have had any doubts about why Congress is the second least trusted entity behind Wall Street, this vignette should convince you why the public holds Congress in such contempt.  This story, once again, demonstrates why we need professionals who happen to be politicians–not professional politicians!