Change

Three Perspectives on the Future of High Performance

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CHIt’s been one month since our Future of High Performance Masterclass and we’re excited to soon be sharing our Report with members of the Future of Work Research Consortium, which will present the key findings from our extensive research on this theme.  The Masterclass was packed full of insights, activities and opportunities to network and share good practices.  We had three fantastic guest speakers on the day, so here are my key takeaways from their insightful contributions.

Dr. Randall S. Peterson, Professor of Organisational Behaviour at London Business School, spoke to delegates about the power of collaboration in high performance teams.  My favourite takeaway from Randall’s presentation was about how research shows that the best teams are the most diverse – but so are the very worst teams.  He argued that the key was in the management of these teams.  When diverse teams are managed well, members have access to a variety of sources of information and have opportunities to learn from each other and grow.  However, when teams are managed poorly, it gives rise to task conflicts (disagreements around the content of the work), relationship conflicts (personal disagreements) and process conflicts (disagreements about the logistics of getting work done).  Creating common understandings of problems, encouraging information sharing and promoting psychological safety and belongingness are a couple of ways to begin managing conflict and supporting high performance teams.

Tom Ravenscroft, founder and CEO of Enabling Enterprise, identified three major myths about human skills which need to be formally debunked.  The first is that these skills are innate and that there are some “natural” team players.  The second myth is that these skills are picked up by osmosis and simply “rub off” on people, rather than needing to be taught.  The third is that these skills lie latent and that, in the “right situation”, people will show these skills.  Organisations need to abandon these assumptions in order to make real progress towards building the skills of the future.

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Lynda Gratton, Hot Spots Movement’s founder and CEO, told delegates about her main impressions from the World Economic Forum’s annual meeting in Davos this year – you can read her full blog for MIT Sloan here.  Lynda stated that one hot topic was that work is undergoing a major transition, as technology demands that people upskill and reskill more rapidly than ever before.[1]  At our Masterclass, one of our delegates asked Lynda a fascinating question: how can CEOs continue to be creative when they are under increasing pressure to take immediate action to address this transition in work?  Our research indicates that CEOs need the support of HR to look beyond the short term and develop a narrative on the future of work.[2]  By developing a point of view on learning and making their involvement and investment in learning initiatives a priority, they can help their people to develop the skillsets necessary to transform and adapt.

So, some key questions to consider when thinking about high performance in the long term are:

  • Am I building the uniquely human skills I will need to succeed in the future of work?
  • Am I harnessing the power of diversity in my team?
  • Does my CEO have a clear narrative on what our organisation will look like in the future and what we need to do and learn in order to get there?

As our definition of high performance changes, building our skillsets and prioritising our interpersonal skills and development will help us to become more future-proofed.  Drop me an email if you’d like to have a conversation about high performance at callandra@hotspotsmovement.com.


[1] Lynda Gratton, ‘Five Insights From Davos on the Future of Work’, MIT Sloan Management Review Blog (2019).

[2] FoW, Building Narratives on the Future of Work Masterclass Report (2018).

Do Diversity Statements Really Work?

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lottiehsmphotoWe are surrounded by pro-diversity messages today – from the #MeToo campaign, to the controversial Pepsi advert featuring Kendall Jenner – diversity, and the lack of it, penetrates every aspect of society.

We find here at HSM, that workplace diversity and inclusion (D&I) is often the most pressing challenge for many HR executives, and it’s no surprise given that there are only 25 female Fortune 500 CEOs and three black Fortune 500 CEOs[1], and that just 16% of autistic adults in the UK are in full-time employment[2]. Many organisations are trying to amend these inequalities not only because it has become socially unacceptable, but also because it has been evidenced that a diverse workforce can greatly benefit an organisation’s bottom line.

For example McKinsey has found that companies in the top quartile of ethnic and racial diversity were 35% more likely to financially outperform their industry competitors[3]. This clearly has huge appeal for organisations, yet there remains a significant gap between the rhetoric and the reality of diversity efforts today. In this post I will focus on how often well-intentioned organisations are unaware of how to make the leap from the rhetoric of aspirational diversity agendas, to creating a reality of a company culture that is truly diverse and inclusive.

One way in which companies try to incorporate a pro-diversity message within their organisation’s culture and values is by including diversity or equal employer opportunity (EEO) statements, or by creating lengthy and comprehensive D&I policies. It is sometimes assumed that by creating these statements or policies, they will automatically attract a more diverse applicant pool of talent, and thus a more diverse workforce, allowing them to benefit from all of the advantages of diverse workforces. However, research has shown that EEO and diversity statements are ineffective in bringing about actual change[4]. A recent World Economic Forum report claimed that although 97% of companies have diversity programs or statements in place, only 25% of employees from diverse groups believe that they have personally benefited from these initiatives[5].

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So where can we go from here? Evidently employers still have a long way to go in fully addressing discrimination in organisations. Eliminating discrimination and working towards inclusivity needs to be made a regular part of the conversation in order to become a reality. For example, it could be a good starting point to ask employees what they think inclusion means, to ask them to share their experiences of feeling excluded, and to co-create with their employers the actions that would make the company more inclusive. The ideas and actions that come from these conversations can help bring your policy to life, as they truly come from the heart of your organisation and your people, those who will ultimately be responsible for implementing it.

This is something we have enabled clients to do, using our Collaboration Jams. These online, crowdsourced conversations enable thousands of employees to connect in a many-to-many conversation around the most pressing issues. Combined with expert facilitation, they make even the most sensitive topics safe to explore and provide leaders and HR teams with evidence-based solutions. Get in touch to find out more about how you can empower your employees to convert your diversity rhetoric into a reality.


[1] http://fortune.com/2017/06/09/white-men-senior-executives-fortune-500-companies-diversity-data/

[2] https://researchbriefings.parliament.uk/ResearchBriefing/Summary/CBP-7540

[3] https://www.mckinsey.com/business-functions/organization/our-insights/why-diversity-matters

[4] https://journals.sagepub.com/doi/abs/10.1177/000312240607100404

[5] https://www.weforum.org/agenda/2019/01/company-diversity-fatigue-no-excuse/

Gillette – A Lesson on Inclusion and Diversity for Organisations

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DTIt has been a week since Gillette released their new ‘The Best Men Can Be’ advert and the world of social media turned upside down. From ‘well done’ to decrying the advertisement as being biased against men, the comments and opinions kept flooding in. So — is Gillette’s ad biased against men, or highlighting needed social change? Perhaps both, but here is a third theory: it was our unconscious bias that made us feel one way or another.

The human brain is hard-wired to make hasty decisions that draw on a variety of assumptions and experiences. Consider this: we are exposed to as many as 11 million pieces of information at any one time, but our brain can only functionally deal with about 40.[1] To filter out all the remaining pieces of information, our brain develops a perceptual lens that only lets in certain things. On one hand, this prevents information overload, but at the same time, we are not subjective on our interpretation of what is in front of us.

Unconscious behaviour is not just individual; it influences organisational culture as well. Unconscious organisational patterns exert an enormous influence over an organisation’s decisions, choices, and behaviours. These deep-seated company characteristics are often the reason that despite conscious efforts, organisations are failing to move the needle on inclusion and diversity. Even when leaders declare a commitment to fairness in their organisations, unconscious bias causes them to evaluate equal performers differently, as Emilio Castilla, of Massachusetts Institute of Technology, and Stephen Benard, of Indiana University, have demonstrated in their research on the “paradox of meritocracy.”[i]

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So… Is diversity training the best an organisation can get?

Not really. According to the renowned behavioural economist, Daniel Kahneman, it is very hard to eliminate our individual biases. Hundreds of studies have examined the relevance of interventions for reducing bias.[ii] It turns out that the positive effects of diversity training rarely last beyond a day or two, and a number of studies suggest that people often respond to compulsory courses with anger and resistance, with many participants actually reporting more animosity towards other groups afterward.

What is the way forward? Organisations should consider the approach known as choice architecture. This involves deliberately structuring how the information is presented: You do not take away the individual’s right to decide or tell them what they should do. You just make it easier for them to reach more rational decisions. For example, orchestras deployed this technique by using blind auditions in the 1970s.[iii] Cecilia Rouse of Princeton University and Claudia Golden of Harvard University have illustrated that this simple change played an important role in increasing the percentage of women in orchestras from 5% to almost 40% today.[iv] Organisations cannot easily put job candidates behind a curtain, but they can do a version of this with people analytics. For example, using software that allows recruiters to strip age, gender, educational and socioeconomic background information out of résumés so they can focus exclusively on talent.

How is your organisation overcoming unconscious biases? Is people analytics currently being utilising in hiring by your organisation? I would love to hear your insights on this very important topic. Email me at david@hotspotsmovement.com


[1] Ross, H. (2008). Proven Strategies for Addressing Unconscious Bias in the Workplace. Cook Ross.

[i] Castilla, E. J., & Benard, S. (2010). The Paradox of Meritocracy in Organizations. Administrative Science Quarterly, 55(4), 543-676.

[ii]Levy Paluck, E., and Green, Donald P. (2009). Prejudice Reduction: What Works? A Review and Assessment of Research and Practice. Annual Review of Psychology, 60, 339-367. Retrieved from http://static1.squarespace.com/static/5186d08fe4b065e39b45b91e/t/51e3234ce4b0c8784c9e4aae/1373840204345/Paluck_Green_AnnRev_2009.pdf

[iii] Ibid.

[iv]Goldin, C. and Rouse, C. (2009, September). Orchestrating Impartiality: The Impact of ‘Blind’ Auditions on Female Musicians. Retrieved from

https://scholar.harvard.edu/files/goldin/files/orchestrating_impartiality_the_effect_of_blind_auditions_on_female_musicians.pdf

New Year, New Culture? Three Resolutions for HR Professionals

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MFHappy new year! January 2019 is in full swing and we should all be two weeks in to our new years’ resolutions (…or not!). Whilst staying fit and healthy, saving money, and travelling remain high on the list of our top resolutions, for the last 5 years, getting a new job is approximately 15% of the nations’ main focus – quite a scary statistic for HR professionals trying to hold on to great talent.

Our research suggests that there are three new years’ resolutions that organisations should consider in order to hold on to the great people that drive their performance:

  1. Build a Narrative around The Future of Work

Employees are anxious about the future of work and what this means for them, and they’re looking to their leaders for direction. In increasingly uncertain times, it is essential that your organisation and leaders are informed about the trends shaping the future of work and have a well-developed point of view to communicate to their teams. We’ve been working with 30 of the world’s leading companies to help them understand what a strong narrative looks like and how it can be developed. We’ve also worked with companies to engage their employees on the journey – tapping into their insights and experience to create a narrative that really resonates.

        2. Upgrade your company culture

Shifting a company culture can be daunting – but not as daunting as not changing it at all. According to research by Robert Walters, 73% of professionals in the UK have left a job because of an outdated workplace culture. With every organisation having a culture, and every employee experiencing it daily, it’s something which needs to continuously transform to reflect your organisation, its people and the modern day. There are many ways to get started on this, including identifying who the real influencers are within your organisation; harnessing the power of positive sub cultures within the company; and changing people’s micro behaviours in order to bring about larger scale change. Click here to find out more about how you can shift your company culture in 2019.

       3. Stay Agile

Flexible working and work-life balance are the at the forefront of workplace agility. As technology improves, so too do our means of crafting agile people strategies that give people more freedom to decide how, when and where they work.  Staying agile means building adaptability, fostering speed and dynamism, and enabling fluidity, all of which will be critical to mobilising talent in a changing world of work. We’ve just completed a fascinating piece of research on the benefits and unintended consequences of agile ways of working. One key revelation was the need to ensure that agile and activity-based work environments provide enough team continuity to ensure that people do not end up feeling lonely or isolated.


To find out more about any of these topics, please contact emma@hotspotsmovement.com

Are your newest employees your best innovators?

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By Graham Oxley, Digital Project Manager.

A few months ago, on my first day at Hot Spots Movement, I had one specific question on my mind that was particularly important to me: are they going to listen to my new ideas? Lots of smaller companies have a challenge innovating due to decision-making being driven by a select few, usually the founders, who can sometimes fail to embrace change. Research shows that start-ups are 9.4% less productive on average when the founder is also CEO[1]. So, starting a new job at a 10-person company with a single founder, you can see where my apprehension stemmed from.

Luckily for me and given what we do here, Hot Spots Movement recognises these challenges and in my first few weeks I have been set to work looking at existing processes, documents and marketing with the goal of thinking of ways to improve them. Why a brand-new person with no experience of the product or research? The answer is that I brought different advantages:

1. I had more time than anyone else. With projects already underway, aside from training and shadowing, I had spare time on my hands. I could take the burden of creative thinking off those who were in client meetings and delivering projects. I could set aside dedicated time for new ideas.

2. I had no biases or preconceptions: I had a blank slate in terms of how I thought we should represent ourselves, meaning I could be totally honest about my thoughts and think without restriction. I had no existing investment in current processes.

As I delved more into our research and read more about innovation, I began to discover that the challenges of innovating in an SME are not that different to those in a multi-national FTSE 100 company. There are a couple of key similarities:

1. Employees don’t have time to incubate. Everyone is busy these days and this is impacting the time we can spend simply thinking creatively about innovative ideas. Distracting technology and open-plan workspaces mean that we are dedicating less and less time to creative thinking.

2. Innovation inbreeding. This is the concept that the same group of people keep thinking of ideas and don’t, or can’t, look elsewhere for new ideas. In a small company this is unavoidable; if you only have 10 employees, you only have 10 brains thinking of new ideas and they quickly come to think in sync about certain things. In a larger company, this is usually by design as innovation is left to a specific ‘innovation team’ who themselves have the same challenges a small company of fewer brains and convergent thinking.

Whether you’re an organisation of 10 people or 110,000 people, the argument is definitely there to be made that your newest employees may be the best equipped to help with innovation. They arrive with new experiences, different perspectives and often have the most ‘free-time’ that they will have in their entire career at the business as they have yet to take on projects. In small companies, one person can have more impact – when I arrived into a team of 12 employees, the brain capacity increased by almost 10% overnight – and if you think about the number of new employees arriving into larger businesses, the aggregate effect is likely to be the same.

Finally, back to my earlier question, did they listen to my new ideas? Well, I have made some suggestions that have been taken well and you may see the outcomes in the near future.


[1] http://www.people.hbs.edu/rsadun/AreFounderCEOsGoodManagers.pdf

3 unexpected insights on the future of work

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HS

I have been exploring and researching the future of work for over 6 years now. It has been a fascinating journey as the pace of change driven by accelerating connectivity, new talent models, and cognitive tools is astonishing. In this blog, I would like to share 3 unexpected insights on the future of work that I have come across from my research and advisory work with companies around the world. They are:

  1. Hierarchies are here to stay

Experiments to do away with hierarchical power structures in most organisations have not been smooth. An indicator of these challenges is that when given the choice of embracing holacracy or taking a buyout, almost 210 of Zappos 1,500 employees took redundancy rather than relinquish their titles and status. Indeed, getting organisations to do away with hierarchical power structures is proving to be next to impossible. For all its enemies – and the millions of copies of employee empowerment handbooks – hierarchy is amazingly resilient. An indicator of this is that since 1983, the number of managers employed in the U.S. economy has nearly doubled, while employment in other occupations has grown by less than 40%, according to data from the Bureau of Labor Statistics.[i]

Why do hierarchies persist? Countless social scientists have similarly argued that hierarchies are necessary. In fact, many theorists have even argued that hierarchies are inevitable as they stem from our evolutionary roots. In other words, if different forms of social organisation were more advantageous, groups would have successfully adopted them long ago.[ii] Hierarchy has evolved to be the most dominant form of social organisation because it works. All those structures and systems serve a purpose. On the most basic level, the invisible hand of hierarchy helps people know who does what, when and how, and simplifies interactions by setting clear expectations and role clarity.[iii]

  1. The importance of solitude

Creativity requires solitude. Today’s world is fixated with association. We live in hyper-social times where the random association of things is not just routine; it is endemic. However, in recent years, neuroscientists have discovered that we tend to get our best ideas when our attention is not fully engaged in our immediate environment. When we are not focusing on anything in particular and letting the mind wander, the brain’s default mode network is activated. Many of our most creative insights arise from the activity of this network. Using many regions across the brain, the default mode network enables us to remember the past, think about the future, understand ourselves, and create meaning from our experiences. Activating this network requires deep internal reflection facilitated by solitude.[iv]

  1. Engagement is not a purely beneficial experience

A recent study conducted by Yale University study examined the levels of engagement and burnout in over 1,000 U.S. employees. “For some people, engagement is indeed a purely beneficial experience; 2 out of 5 employees in the survey reported high engagement and low burnout. These are the optimally engaged group. However, the data also showed that 1 out of 5 employees reported both high engagement and high burnout. This group is the engaged-exhausted group. These engaged-exhausted workers were passionate about their work, but also had intensely mixed feelings about it — reporting high levels of interest, stress, and frustration. While they showed desirable behaviours such as high skill acquisition, these apparent model employees also reported the highest turnover intentions in our sample — even higher than the unengaged group.”[v] That means that organisations may be at risk of losing some of their high performers not for a lack of engagement, but because of their concurrent experiences of high stress and burnout symptoms.[vi]

 


[i] Hamel, G. & Zanini, M. 2016. Top-down solutions like Holacracy won’t fix bureaucracy. Harvard Business Review

[ii] Anderson, C., & Brown, C. E. (2010). The functions and dysfunctions of hierarchy. Research in organisational behavior, 30, 55-89.

[iii] Monarth, H. (2014). A company without job titles will still have hierarchies. Harvard Business Review.

[iv] https://hbr.org/2015/12/executives-protect-your-alone-time

[v] https://hbr.org/2018/02/1-in-5-highly-engaged-employees-is-at-risk-of-burnout

[vi] https://hbr.org/2018/02/1-in-5-highly-engaged-employees-is-at-risk-of-burnout

Three insights on the future of work from our Sydney Workshop

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AG

I recently returned from running our annual Workshop in Sydney. Alongside trying to find the best flat white in the city and dealing with jetlag, I was able to hear more about what is on the minds of our Australia based clients. At our workshop we discussed why companies need to build a narrative on the future of work, and how to build a future-proofed culture amongst other topics. There were three major takeaways for organisations that came out for me around the workshop.

  1. Think about your narrative

 Despite increasing digital disruption and the rise of AI and analytics, organisations need to ensure they don’t forget the social aspects of change, and the power of stories over straight facts or data. Research has shown that stories impact people’s brains differently to facts, causing more connections in the brain and leading to closer relationships between the storyteller and the listener. People use stories as a way of understanding the world and this is particularly true when it comes to the future of work. Employees are looking to employers to provide a sense of stability and purpose in a rapidly changing world. Organisations therefore need to reflect on their own narrative on the future, thinking about what it will mean to work in their company and how work will be done in the future. Where are your non-negotiables? Where are you going to take a bet and what will stay the same? In considering questions such as these, companies can provide their workers with a story about where they are going, and how they will be supported along this journey.

  1. Abandon assumptions around aging

 The importance of not relying on stereotypes and assumptions around aging also came out strongly in the Workshop. Longer working lives mean that organisations cannot make assumptions around the needs and desires of their workforce, particularly older workers.  No longer is it always the case that a worker in their 60s is looking to retire, for example. Organisations need to make sure that their practices and processes are not based on erroneous expectations. They need to rethink the way they approach retirement, or what it means to progress in the organisation, so that people are not penalised if they want to downgrade their working hours without losing status in the organisation.

  1. Identify your influencers

 Finally, the need to think about the cultural influencers in organisations was another important point. Rather than relying on hierarchical leaders, companies need to uncover the real influencers and work with them to drive cultural change. These influencers can be discovered through network analysis or crowdsourced conversations but should be brought in early on in the process to ensure the behavioural change so crucial so a successful culture shift.


It was great to hear from our members in Sydney, and we look forward to our next trip Down Under!