Changing Patterns

Book of the Year! Wilful Blindness by Margaret Heffernan

2011-06-19T04:17:00.000-07:00

Simply, a cracking book and one that explains more about what has really being going on in these past few years than any economist has provided. Written with a clarity, but fueled by anger, this book cuts through our most deep seated assumptions about our smartness and intellect. We, as humans, repeatedly fail to spot the obvious and speak the truth.
She writes "...our blindness grows out of the small daily decisions that we make which embed us more snugly inside our affirming thoughts and values. And. what is most frightening about this process is that, as we see less and less, we feel more comfort and greater certainty. We think we see more - even as the landscape shrinks."
Heffernan is a good journalist and writes about specific case after case, ranging from the denial from the Catholic Church in child sex abuse to the arrogance of Alan Greenspan. By doing so, it becomes clear that our cognitive lapses are not just adhoc and confined to those of us in the slow lane, but endemic to the human experience. Powerful people frequently believe their own myths and models they create for themselves and impose on others. They are not sensitive to the impact they have. So, when a BP senior manager demands a 25% cut on a processing plant already cut back to the bone, resulting in multiple deaths, Heffernan argues that he could and should have known. Willful blindness.
Should be compulsory reading all members of a Board.

EMCC European Conference event: Enriching supervision: A Practitioners’ Perspective on Integrating Action Research into Practice Supervision

2011-04-19T02:52:00.000-07:00

http://paris2011.emccconference.org/speakers/andrew-atter-dr-liz-wiggins-enriching-supervision-a-practitioners-perspective-on-integrating-action-research-into-practice-supervision

Here is the link to the EMCC conference site. Dr. Liz Wiggins and I will be co-presenting on a very interesting two very interesting themes to emerge within the coaching profession: The increasing importance of supervision for coaches continuing professional development (CPD) and the integration of action research into the coaching and supervisory process.

Enriching Supervision: Wondering if you and your supervisor have become stuck in familiar patterns of conversation? Going to supervision as something you “ought” to do as a professional but looking for something more challenging and potentially enriching? This session offers a practitioner perspective on integrating Action Research into supervision in order to create a peak learning experience. Two practicing coaches share their experience of practical ways of literally “bringing the coaching conversation into the room” with the supervisor and explore the benefits and potential limitations of this compared to the more traditional approach of reflective conversation.

We hope to see you there!

Gender Inclusion, a fiduciary responsibility

2011-02-25T00:47:00.000-08:00

The issue of getting more women on to boards is becoming simpler and clearer. The research is in:

Boards with a better balance of men and women perform better than those dominated by males.

'Professor Laura Tyson, former dean of the London Business School, found that diverse boards were more effective at running their companies' Times, February 25.

Here is the link to the full Times article that quotes the Cranfield study.

http://www.thetimes.co.uk/tto/opinion/leaders/article2925767.ece

With this evidence, the question for all Chairman is what is their strategy is for increasing the proportion of women on boards; not because of political correctness or because of legislation, but because the business will likely perform better. And, this is what they were appointed to do by shareholders.

Lord Davies, leading a UK governmental study of the issue, says:

"The motive for more female voices is not so that companies might make a token gesture towards gender parity, but because boardrooms which have a greater mix of men and women are more effective at steering and stewarding their companies'. Times, February 25.

Gender balance, specifically, is likely to directly impact evaluation of risk.

Fewer women on boards is indicative of failed talent development strategies, poor succession planning and a lack of targeted leadership development. It is also suggested of regressive male attitudes, such as 'women can't do maths', which are simply inaccurate. Men and women can do maths equally well when they have similar expectations of success. Therefore, the issue is one of expectation, not ability.

This is why both men and women need to see more women business leaders. Not only will it mean businesses will access a broader base of leadership talent; it will also encourage more women to enter science and technological disciplines with ambition.

Executive coaching and mentoring have too often been used to anoint the heir apparent, rather than build a more inclusive board. This is changing. Coaches are becoming more aware of their role in designing the right coaching interventions for sustainable business success.

Executive coaching; and board mentoring, are interventions that can have direct impact on accelerating the numbers of women on the board. Coaching can help shift male attitudes towards women, and embolden women to step up exercise power.

Lessons from Tunisia

2011-01-26T09:04:00.000-08:00

The Financial Times (26.2.11) carried an interesting front page piece describing how car firms operating in Tunisia were "reconsidering" their relationship with former President Ben Ali.

A tad late, I think.

This suggests that many global firms have not learned the numerous lessons from past experiences of investing in developing markets.

The experiences of Suharto's regime in Indonesia, where western firms and banks made catastrophic bets on their relationship with corrupt and much despised family members, come to mind.

All too often, firms seek a quick way to market access by fostering close relationship with an autocrat's family. These "relationships" are built on a mutual return of favors: A blind eye is turned to on-the-ground corruption in return for access to key decision-makers. Such relationships become quickly mutually reinforcing. Firms get lazy and complacent.

As a result, otherwise clean global firms watch helplessly as their products are smashed up on global TV networks, and the autocrat and his or her extended family head for the airport. An all too familar picture.

In these situations global firms are not just "doing business". They are reinforcing the very unstable and rigid regimes that enticed them into a trap. They are causing great harm to the societies in which they trade by enabling a regime to enrich itself at the expense of their people, causing long term political and economic instability. Think of the Pahlavi regime of Iran and how we all continue to suffer the consequences of the corruption that took place in his regime on a grand scale, with complicity and full knowledge of respected global firms operating in Iran under his grace and favor.

A better and more effective way has to be found to enter and trade in developing markets. Firstly, I am a pragmatist and I know that relationships are the life blood of business in developing markets. Unless you know the right people, you're not really in business at all.

However, here are a few pointers as to what global firms can do to build sustainable and diverse relationships in developing markets:

Build a broad base of relationships, not just a dependency on one regime. Do not enter a market unless you are allowed to do this.
Be very clear and transparent about the nature of these relationships
Express your ethical values in this relationship; and insist on transitioning to professional purchasing and contractual management within a brisk time period.
Insist on audits of local partners.
Promote vocally economic and social (and even political) reform, to promote the general development of the community in which you trade.
Beware of hidden and implied reciprocal favors forged in Karoake bars by junior and middle managers.
Play a long game in these markets, and be prepared for short term obstacles put up by greedy autocrats negotiating for a larger slice of "their" pie.
Do not build business plans or make commitments to investors assuming the continuation of autocratic rulers.

If investing firms follow these suggestions they might make a real positive difference in the communities in which they are investing. And, they will reap long term benefits to their global brand.

Women-on-Board Initiative

2011-01-26T07:43:00.000-08:00

Click the link to see the interview with Helena Morrissey, Chief Executive with Newton Investment Management, and founder of the 30% initiative (and who has 9 kids!):

http://video.ft.com/v/701925017001/More-women-makes-business-sense

Here is a really intelligent discussion of the business case for women taking more seats on the board. This follows a body of research (most recently from Cranfield University in the UK) that now points to the rather obvious fact that a balance of men and women is needed for better decision-making and risk assessment.

And, Ms Morrissey also suggests what women need to "seize the moment" to make change happen.

This is a real issue in Central and Eastern Europe where the percentage of women on boards is even lower than in the rest of Europe. Based on my own research on Poland's 'WIG 20', the number of women on boards is actually getting smaller (See table based on data gathered up to 2009).

The situation is somewhat better in Czech listed companies, which I think is due to the larger representation of Austrian owned businesses on the Prague Stock Exchange; influenced by recent legislation monitoring the number of women on the Board.

Improving Airline Safety: Simple rules; intelligent behavior

2011-01-26T05:55:00.000-08:00

Even as a frequent but terrible flyer, who craves a gin & tonic every time the safety belt sign goes on, I thought it was about time we all celebrate the remarkable progress in airline safety in leading western airlines.

The fall in the number of accidents from three fatal accidents per million flights to one plane loss for every 3.57 million flights is a remarkable case of what happens when we combine good technology, expert training, sensible regulation and empowerment of crews to do the right thing (Flightglobal.com).

Read below Charles Hogeman account of how this progress was made. His useful maxim I'm sure could inform many other areas of organizational activity:

Presenting on pilot standards at the Flight Safety Foundation (FSF) International Aviation Safety Seminar in October 2010, the Air Line Pilots Association International's chief human factors spokesman Capt Charles Hogeman summed up the limitations of regulation to enforce safety thus:

"Simple, clear purpose and principles give rise to complex, intelligent behaviour. Complex rules and regulations give rise to simple, stupid behaviour."

The IATA rate equates to one jet hull loss accident every 3.57 million flights, whereas the world average is one every 1.5 million flights. A comparison with days gone by shows that, in 1979, the world average accident rate in the same category was three fatal accidents per million flights, so the global average has improved by a multiple of 4.5 in that period.

Source: Flightglobal.com

2011: A Year of Integrity?

2011-01-04T10:04:00.000-08:00

I call for this year to be the year in which little by little, person-by-person, we rebuild integrity in our society, communities and businesses. We need to put the wheel back on the wagon.

This is an idea gaining traction. In the Jan-Feb issue of the Harvard Business Review, strategy gurus Michael Porter and Mark Kramer argue for the reinvention of capitalism through the creation of shared value (CSV) between business and society. They criticize business leaders for conceiving of value creation narrowly and ignoring broader societal factors that govern their long term success.

As soon as one talks of "value" in the broader sense, they raise the question of our ethical decision-making and how we decide what is one value in preference to another. Porter and Kramer take business beyond the right/wrong polarity of compliance to laws and best practices, and they move into the qualitative area of good/bad:A broader and more complex understanding of ethics is needed.

This is timely, as the Edelman survey of Global Trust in Business presented at Davos (FT, 25.2.11), shows a steep decline in trust in business in the US, (to just 46% saying they trust business); and a marginal improvement of 2% globally, (to just 56%). This conceals a sharp drop in trust of banks in western countries.

This loss of trust matters a great deal. It influences the ability of business to shape the global agenda and at the micro level, will mean businesses (and especially banks) will have to work harder to gain the trust of existing and potential customers.

I'm convinced that at the heart of this issue is ethics. But this is not just a subject for law professors;. Nor can we just leave it to "them", then politicians and corporate leaders. It involves us all to be more conscious of our own values and ethical framework, and to act on those values in the face of increasing complexity and uncertainty.

In June 2010, I wondered around a fascinating exhibition at the Science Musuem in Singapore. It was about the ethical dilemmas in science and medicine. The exhibits showed that there is often no right answer to ethical dilemmas. I reflected that we act with integrity when we consider the different ethical choices and make a conscious decision which we can account for. As US Supreme Court Judge, Potter Stewart describes so well, ethics is about that space that exists between our rights and obligations.

Integrity therefore means more than keeping to the law, or complying with lists of codes, standards and professional rules. Yes, these are usually important. But rarely do such codes or rule books help us decide what is the right thing to do right now, in this moment. The Lehman collapse, the Gulf oil spill, and the Iraq imbroglio did not happen because we lacked the necessary laws or codes - they happened because there was a failure of ethical leadership.

Put simply, political, institutional and corporate leaders in recent years too often promised more than they could deliver and did not fully consider the wider ethical consequences of their actions.They acted on impulse and in arrogance, not through conscious thoughtful choices.

Philosopher Simon Blackburn describes the need for us to take care of our "ethical environment". This means being aware of all the promises and commitments we make. It means considering the ethical basis of our actions. It means confronting truths. It means taking ownership for what we do.

Most of us think of ourselves as ethical. Perhaps we work as a professional in some field and have the necessary qualifications and credentials. Perhaps we have a history of doing good work with our clients and we treat people with whom we work well.

Yet, this backward looking view and hubris can make us fall prey to the arrogance that can take over all professionals at some time or other. This is the point when we start listening to our own ego too much rather than to others: Others who may have vital perspectives we need to make good and sounds decisions.

One thing I am working on as a coach is to be less proud of myself as an ethical and professional coach, and be more inquiring and reflective with clients and sponsors about "what is the right thing to do here?" I am learning all sorts of new "stuff" in the process.

To be ethical therefore we need to be constant state of awareness and learning in relationship with other people (Griffin, D. 2002).

The three ethical perspectives I've found most helpful to guide me are as follows:

The Utilitarian: What is my underlying purpose or utility in this action to myself, others or society in general?
The Existential: What are the stark realities and painful truths of the matter, on which I need to decide?
Deontological: What is my duty in this situation? (NB, Not necessarily to just "follow the rules")

There are many philosophical and ethical factors that go into making a good decision or action - but these three are often a useful starting point, particularly when in discussion with others.

I have designed this short poll to help each of us think about what we need to do more of in this year. The responses are confidential (I cannot see the individual results).

It would be interesting to see the spread of opinion about what is really important for us to focus on ethically in 2011.

As ever, your comments and questions of any hue are more than welcome.

Santa Claus Exists!

2010-12-22T01:27:00.000-08:00

Yes, it's official. And, you read it first on this blog. After many years of denial, I have finally come to my senses - Santa is real.

The evidence for this...much needed by adults...is everywhere around us and even inside us. If we care to look. Those poor people stuck at Heathrow are part of the picture, as they desparately journey to reach loved ones in time for Christmas. The people sleeping on top of each other, with a cup of cold tea by their side, are proof of one thing: It's not all about the money. It's not all about commercial exploitation.

It's about being with people we love; and expressing that love to them. And, recognizing that this is perhaps something we don't do enough of during the year.

For someone still widely believed not to exist, he has achieved a lot. He changes the way that people think, feel and act everywhere.

Christmas is when being with people is more important than anything else. We celebrate magic, surprise and the spirit inside us. We immerse ourselves in traditional rituals. We play games. It's the one time of the year that being merry, joyful and loving is more important than being correct, smart or on-time.

We adults allow ourselves to become children again.

We get in contact with the significant things. Even as we reject the tacky and commercial aspects of Christmas, we assert the things that are important and meaningful to us.

We put the past year in a box on the shelf, and start to unpack the New Year with expectation and excitement. This year will be better than the last.There is something new ahead of us.

Santa therefore is that magical part of us that manifests itself once a year...and occasionally at other times if we allow it.

I wish you a magical, surprising and fulfilling Christmas and a New Year full of energy and anticipation.

Andrew

Virtue is the key to leadership

2010-07-01T00:59:00.000-07:00

Like most people, I've been trying to comprehend the disaster still unfolding in the gulf of Mexico. The thought of 35,000-60,000 barrels of oil a day spewing unchecked into the ocean is an environmental nightmare. So much so that we have tended to overlook in recent weeks the deaths of eleven workers as a result of the original explosion.

How could this have happened? And what do we learn from it?

BP has a legacy of fatal incidents dating back the Texan oil refinery explosion in 2005, and the Alaska spill in 2006. A recurring theme of this blog is the consistent failure of highly capable and intelligent people to learn from mistakes. The decision by BP not to spend $US8-10m on drill-hole lining technologies, will be studied for years to come. BP followed the fashionable business-school agenda of outsourcing its operations and maintenance, and was left with its Chief Executive unable to answer even basic questions about how the business worked.

However, as we investigate and atomize the causes of this disaster, we run the risk of missing the real significance of the event in the bigger picture. It is also through reflecting on the coincidence of this event with others that we can understand its real meaning.

The coincidence I refer to is the aquital this week of Jeffrey Skilling, former CEO of the collapsed Enron. Skilling convinced and/coerced thousands of Enron employees to invest their 401k shares into company stock at a time when he knew it was about to blow out, and after he had withdrawn his own stock. His acquital means, in the C-suite at least, lying, cheating and misleading people is not actually illegal. That is, his dishonesty was not proven to be an illegal act.

I believe the real cause of the Gulf of Mexico tragedy reveals a much bigger hole in the ethical fabric of capitalism.

Rather than doing what is right, business do only what they have to to stay within the law. Doing more than the law requires may even contradict the fiduciary responsibilities to maximize shareholder value. In the madness of quarter-by-quarter stock market capitalism, making prudent and sensible previsions for safety and risk management can be regarded as acting against the interests of shareholders, who may only own stock for a matter of hours.

Because breaking the law is (mostly) unethical, it does not follow logically that keeping within the law is necessarily ethical.

Society itself is skewing the ethical framework of capitalism. Deregulation, outsourcing, and the creation of merged corporations of bewildering complexity sounded like a good idea at the time. We too have all been guilty of losing sight of what is really important and right.

The real lesson of this tragedy is not, therefore in the realms of cognitive psychology. It is obvious that CEOs cannot understand the complexity they are taking on. From Lay to Fuld to Hayward, we are confronted with highly intelligent people overwhelmed by complexity.

More and better psychological understanding might help, but won't solve the real problem.

The answer lies in Philosophy. This branch of learning has been all but forgotten in the rise of neuroscience and behavioral economics, yet holds vital and perennial lessons for mankind. We need to be constantly reminded that in every thing we do, we face ethical and moral choices. BP's failure is first and foremost not being aware and reflective of the ethical choices it is making. It simply grew too big and took on too much. By not being aware of its own limitations, it failed a basic ethical test - to represent what it can and cannot do, honestly.

The real lesson is that abiding by the law, and following the rules, does not mean that you are acting morally or ethically. Your business can be at risk even if you are in the technically legal.

The implication is that leadership in business needs to rediscover the philosophy of doing what is right. Being courageous, honest and fair. Business in the last ten years, from Enron, to Lehman and to BP, shows a pattern of amorality that has brought great businesses to its knees.

The lessons therefore, are not about engineering, not about the law, nor even about psychology. The real lessons are the same ones Aristotle taught 2,500 years ago. We must go beyond the law and seek a good, virtuous life. For Aristotle is was all about character and in particular, the habits that flow from good character. Leaders must have good character themselves, but must strive to build good character in others. Above all, virtue comes from how we act, continuously. For Aristotle, achieving virtuous life, or eudaemonia, as he called it, is what its all about. By losing sight of this purpose, we have lost contact with our ability to make sound moral choices.

By reducing questions of business practices to engineering, the law or operational effectiveness, we have forgone access to fundamental human learning. As we develop the technologies to drill in deep water, or to trade in complex financial instruments, we have forgotten the philosophical knowledge, even the language, that enable us to discern right from wrong.

We need leaders to rediscover virtue as the very basis of their leadership.

But how to put ethics into action. Can we really rationally decide if one course of action is more ethical than another? And, isn't everyone point of view equally of valid?

Well, leaders can recognize and respect each persons ethical perspective, and at the same time seek the best possible ethical choice. These do not contradict each other. A useful model for leaders is the 6R model (The Code of Ethics and Practice for the Society of Coaching Psychology). Using the six hours as a basis for open, exploratory dialogue can increase the probability that good moral choices are made. The six Rs can be summarized as follows:

Rights
Respect
Recognition
Relationship
Representation
Responsibility

For instance, workers have a right to life that cannot be compromised by a shareholders right to maximize their returns. People affected by decisions have a right to be included, even if they do not own shares. Public authorities for instance, should have been more involved in disaster planning.

By using the 6Rs leaders can improve their moral decision-making and at least be aware of where they are having to take ethical risk and make remedial provision for this, by improving safety processes, or taking insurance, etc.

Businesses do need to cut costs and take risks. Yet, the question leaders should be asking is not only "what do we have to do within the law" but what is the best ethical decision we can make. It is a matter of being able to properly account for the moral choices you make. This reflexive process is itself a virtuous action.

Any decision-process is only as good as the character of the leader using it.

By Invitation: Approaching Teams as a Coach Vs a Therapist, by Katerina Kanelidou, ACC, CPC, MA

2010-06-01T06:45:00.000-07:00

I met Katarina at the ICF Balkan's conference and I was very interested to understand her background as a dramatherapist. I think it shows how our backgrounds can enrich us as coaches. In this article, Katarina makes some interesting observations on the differences between group therapy and coaching.

If you want to find out more about Katarina and her practice, you can visit the following web-site:

www.creative-empowerment.eu

Almost always when defining coaching we also read or hear what coaching is not, especially regarding mentoring, consulting, training and therapy. All professional coaches are aware of what differentiates coaching to therapy. The same applies to Team Coaching.

Here we examine how approaching the Team as a coach compares to approaching the Team as a therapist. Given that we have group therapy, group analysis, systemic approach, behavior therapy, etc, I have drawn on my experiences as a dramatherapist, so 'therapy' should be understood to refer to dramatherapy. Clients should be also understood as functioning people with no pathology.

Differences

The Client

In therapy, the client is the patient / participant. In Team coaching, we have the sponsor – organization paying for the services – as the client on the one hand and the coachees – team members – on the other. Based on this, further distinctions between therapy and coaching may be drawn:

•    In therapy, confidentiality is strictly between therapist and group members. In coaching, specific agreements govern confidentiality with both sponsor and coachees, and what information is shared and how.

•    The voluntary character of therapy is absent in team coaching. Coachees are asked to participate by management and the coach must motivate and persuade them about the benefits of their participation.

•    In therapy, the client sets his/her own agenda. In coaching, there is the organization's agenda for the team and the coachees' agenda. A first task is to align both and achieve commitment to the common goals and vision.

Preparation

Team therapy is always preceded by a session exploring the client's history and determining whether team therapy is the best strategy. In coaching, depending on team characteristics and goals, prior interviews with team members may be optional, as well as assessments.

Expectations

In team therapy, each member has his/her own expectations (awareness, self-growth, etc). Individual expectations of team members may be similar but do not constitute a common goal for the team.

In coaching, expectations are set at the outset. Coachees may have their own expectations, which are explored to find areas common with the team's expectations, but the purpose of both team and coaching is results. It is an action – focused process and the team has a shared goal.

The therapeutic team has the purpose of each member, not a collective one. The coaching team has a very specific purpose (e.g. a project), the intention being to improve the teams’ effectiveness at work. This distinction impacts how we deal with conflicts, for example. In therapy, we examine the root of the conflict between the members. Coaching may explore not (only) why this conflict arose but how it can serve the goal and how it can be used constructively.

Focus

Therapy deals with painful unresolved issues; the focus is on the past. The client gains awareness and decides how to use it. The therapist usually deals with strong emotions and must also be in therapy him/herself.

Team coaching, as all coaching, focuses on present and future and is solution-oriented. The past can be explored only if needed and up to a certain extend. The coach must also be able to work with strong emotions. In my opinion, the coach's participation as a member in team coaching, therapy, etc. is beneficial in gaining experience in team dynamics and evolution.

Common features

A common feature, whether working in team therapy or coaching, is the space created i.e. a safe, respectful non-judgmental environment and strong relationships of trust allowing for growth and self-development. The difference is that in team coaching the aim is developing the team together with the members, empowering the team and its components.

Both therapy and coaching bring awareness of how team members’ cognitive and emotional reactions can interfere with personal effectiveness, performance and wellbeing. In team coaching, this awareness is focused on the effectiveness and performance of the team as well.

Coach and therapist share common...

Skills, such as deep listening and using powerful questions that raise awareness

Qualities, such as insight and empathy

The ability to dance alongside with the clients

And, they act as models providing feedback that is well received and helps the growth of both team and members. Both practices embrace a collaborative partnership encouraging creativity and members’ unique solutions.

However, the presence of a therapist can be different to a coach’s both physically, given that a team coach often moves in the corporate world, and with regard to expression: therapists adopt a neutral, stiller presence, only showing approval and encouragement; coaches have a more energized presence and expressions of positive feelings are welcome.

My Dear Friends

2010-04-12T00:08:00.000-07:00

I just wanted to let you all know how saddened I am about the terrible tragedy occurring over the weekend. Poland has suffered enough throughout its history, and for all of us who love Poland this catastrophe is almost too much to bear.

Being amongst those who gathered around the Presidential Palace, lighting candles and singing hymns, helped me to experience the power and resilience of the Polish people. The quiet dignity and communal reflection of the people is really inspiring. The Polish people will bear this as they have borne so much in the past.

All those on the plane were in active public service. They were due to take part in a service of remembrance, peace-building and reconciliation. This meaning will not be lost and I do believe that in some mysterious, as yet unforeseen way, their work will be realized in future.

I wish all of you a time of peace and quiet in your soul.

Andrew Atter

ICF Balkan Conference: Bucharest Romania April 30 "The Working Alliance: Vodafone Romania, a client case study"

2010-03-16T03:59:00.000-07:00

The Working Alliance: Vodafone Romania, a client case study

Romania is an exciting country in which to work. There is something very energetic and dynamic about the transition economies and this is perhaps truer for Romania than anywhere. Its young well educated population, and its "Mediterranean" feel create ideal conditions for coaching to grow.

It perhaps therefore no surprise that in Romania it was possible to partner with Vodafone to implement very best practices in executive coaching. Leaders from Vodafone Romania will join me on a panel at the ICF Balkan conference, on April 30 (The conference starts on 29 April) to discuss these assignments.

The ICF Balkan conference will be a great place to show how "leading edge" coaching practices do not only occur in the developed west, but on the frontiers of Europe, where change and transformation are happening so rapidly.

Here's a precis of the planned discussion.

The coaching profession of the future will be very different from today. Already, there are major changes taking place. I would to help create a dialogue about how these changes are affecting the way we work, both as internal and external coaches.

One important shift is the way in which we, as external coaches, work with the client and the organizational sponsor.

My view is that we are at our most effective as coaches when we build a strong relationship with our client – the person being coached and also when we enrol the sponsor of the coaching as an active mentor-coach.

I believe this can be done without jeopardising the confidential and trusted basis for client – coach relationship. More than this, it limits the risk that a leader is “outsourcing” their developmental responsibilities to the coach. When working properly, the sponsoring leader and the external executive coach are working as a coaching team for the benefit of the client.

Too often, the sponsor of the coaching feels disempowered by the presence of the coach and their genuine intention to support and help in the development of the client is not properly leveraged. A leader may therefore act as a commercial sponsor for coaching, but still have no ownership for the broader organizational outcomes. This is a dangerous situation for both client and coach.

Internal and external coaching is therefore not a binary choice, but an opportunity for collaboration.
This tri-partite relationship, formed by client, coach and sponsor, is what I call the Working Alliance.

Let’s be clear...the Working Alliance is there primarily for the benefit of the client. But I also think it is possible to generate secondary benefits for the organization, and this is why the sponsors role is so important.

For instance, if the client is working to improve their leadership style by coaching and empowering their teams more, the client will benefit from enhanced relationships and career progression; and, the organization will benefit by experiencing improved organizational climate.

The Working Alliance is therefore a framework that can help align the organizational needs with the publicly stated goals of the client. Throughout, it is probable that the client will also have private goals, which are shared only with their coach.

Here is a more detailed list of topics to be discussed at the conference:

The ethics of and within the Working Alliance

Contracting within the Alliance

Agreeing and aligning Public and Private goals

Putting the Alliance to work for the benefit of the Client

Measuring the results of the Alliance from the client and sponsor perspective

I would like to share my experiences of forming Working Alliances in different cultures around the world.

This is the approach that underpinned the successful engagement with Vodafone Romania. We are fortunate to have present leaders from Vodafone Romania who have both been coached and acted as the sponsor for coaching.

We plan to create an informative and interactive session, with plenty of room for plenary dialogue and Q&A.

Turn left, Turn right- A conversation with Rsyzard Petru and Michael Dembinski about the Polish economy

2010-02-17T05:22:00.000-08:00

Ryszard Petru (Above Left), Michael Dembinski (Above Centre)

Turn left, turn right: Poland goes a different way

As Adam Zamoyski's popular history The Polish Way makes clear, Poland through out its history has taken a different path to the rest of Europe. Historically, a religiously tolerant Poland sat out the wars of religion in the 16th-17th centuries. The country was erased off the map at the end of the 18th century, just at a time when countries were finding their national identities. November 11, which elsewhere is a day of solemn remembrance for the ending of WWI, is celebrated as independence day in Poland. Whereas the rest of Europe looks back to the 1930s as a dark era of hyper-inflation followed by depression, Poles look back to this pre-war era as a golden age.

It should be no surprise therefore that today Poland is experiencing a very different crisis from the rest of Europe.

I managed to catch up with two well-known commentators on Poland to help understand the differences that still beguile Poles and foreigners alike.

I asked Chief Economist at BRE Bank, Ryszard Petru, and then Michal Dembinski of the British Polish Chamber of Commerce a number of questions about the Polish economy. Here's a summary of these conversations:

How do you explain the resilience of the Polish economy during the world wide slow down?

Ryszard: Firstly, there were no asset bubbles in Poland. The banks have tended to be highly restrictive on loans both private and commercial. Next, our reliance on exports is half that of Czech, Slovakia or Hungary, so Poland has been less affected by the reduction in demand in other countries. Also, the consumption patterns in Poland are different to Western Europeans. For example, Poles spend on food around 30% of their income while Germans 10%, so there is not too much consumption to be postponed. In other words, Poles need to keep spending a higher proportion of their income in order to sustain their basic needs. The Polish economy has been less leveraged than average European country, with a total debt to GDP ratio of around 40%, while in EU 27 close to 125%.

Michal: The ruling Civic Platform came to power with the slogan ‘An economic miracle for Poland’. And that’s just what happened! A large number of unrelated factors all coincided – by luck more than judgment – to soften the blow of the global economic crisis. Ryszard outlines some of these. I’d add the weakening of the zloty in February 2009 (by 40% to the euro), making Polish exports more competitive and Poland more inviting for FDI, and a lack of glaring errors in macroeconomic policy. Also worth bearing in mind that as the automotive industry crumbled around the world, Poland continued churning out small, economic cars such as the Fiat 500 and Panda and the Ford Ka, which continued to sell well, especially with scrappage bonuses across western Europe.

What are the big economic risks that business leaders in Poland need to watch out for over the next 12-18 months?

Ryszard: The risks are mostly global. There is a risk that recovery in the US and Germany will be too slow, and that global imbalances in currency and trade, with China for example, cause instability.

Locally, fiscal dynamics could be a problem. What I mean by that is if deficits do not decrease in the near future Poland could get into debt spiral, which should be avoided at all costs. But the likelyhood of such development in rather small.

Michal: The shocks will be exogenous. Polish is economically and politically stable, but the Greek debt crisis (which caused the zloty to drop by 6% in value against the dollar over three days) shows how vulnerable its economy is to events abroad. The crises that engulfed Hungary and Latvia in February 2009 hit the zloty even harder. Neither Greece, nor Hungary, nor Latvia are even neighbours of Poland.

Michal (cont): My view is that Poland’s budget deficit is over 50% and heading towards 55% at which stage the constitutional alarm bells will ring. And the EU27 GDP-to-Debt ratio quoted by Ryszard, I agree, although this figure includes Greece (150%) and the other PIIGS (Portugal Italy, Ireland, and Spain), but also the more fiscally prudent countries of the north. UK’s is 70%. I reckon the EU 27 average would be nearer to 100% as a proper point of comparison. .

One economist commented to me that he regarded anything below a +3% GDP growth as a technical recession in a developing economy such as Poland. What’s your view of that?

Ryszard: He is right. Due to the catch-up effects, Polish potential growth rate is around 5%. Historically growth below 3% was not leading to increase of employment.

Michal: If you look at what happened between Q3 2001, when growth bottomed out at 0.3%, and Q1 2004, when it hit a pre-accession peak of 6.9% – during that time, unemployment continued to rise. Lack of flexibility in the labour market means that unemployment – normally a lagging indicator – in Poland is even more so. Things have improved since 2001-04. Prof. Witold Orlowski says that Poland ‘only’ needs to grow at 3%-4% for there to be net jobs growth – no longer the 5%+ required in first half of the previous decade. The US, by comparison, needs to grow by a mere 0.5% for job creation to become visible.

Should Poland stop comparing itself to mature markets in the rest of Europe as opposed to more relevant (and stretching) benchmarks, such as the BRIC countries?

Ryszard: If you look at the structure of Polish economy, there are more similarities with the rest of Europe than with BRIC countries; for example, in their access to oil and natural resources, and the overall size of the country.

Michal: I don’t think Poland is striving to plump itself into the Rich Old Europe club; it complains – rightly – that it gets unfairly compared with countries like Ukraine, Latvia or Hungary, which have economic problems of a different order of magnitude.

Any other comments that you think would be helpful.

Ryszard: What I like to say about Poland that is still has a huge potential for growth. The lack of basic infrastructure, especially motorways, a high rural population are just two factors that show how underdeveloped we are on the one hand, but on the other show how much we can gain by changing it. Poland is like a small China in this respect

Michal: Of interest to Poland-watchers will be the political debate in the run-up to the 2013-2020 EU budget perspective. Poland believes it deserves another round of EU funds similar in size to the 2007-2013 one. “If Spain received such sustained help with convergence, then so should we”, runs the Polish argument. Whether the net beneficiaries to the EU budget will be able or willing to stump up is another matter.

Perceptions of Poland are changing. The Economist ran a very favourable article on Poland on 28 January. They comment: "It was the only country in the European Union to register economic growth last year, at 1.2%. As Jacek Rostowski, Poland’s finance minister, likes to point out, GDP per head rose from 50% to 56% of the EU average in 2009—a record jump".

Moreover, investors are beginning (belatedly) to differentiate Poland from the rest of the CEE, which has experienced a real and far deeper crisis. The Financial Times is reporting that Poland cost of debt was less than that of Greece or Spain, and modest and stable by international standards. Poland has been able to re-finance its debt successfully.

My own view is that Poland has a achieved economic stability, and this has to be a good thing. But, this has been won at the expense of any long term vision about how the country will achieve sustainable wealth creation. The philosophy of "tight money" institutionalized by former National Bank of Poland President, Leszek Balcerowicz has squeezed out not just inflation and asset bubbles, but also entrepreneurship, creativity and innovation. And I think a better balance has to be found.

Banks lend only to sure-fire cash cow or asset rich businesses. This policy is good for big business and small traders, but sucks the life force out of SMEs, which is the principle source of growth in value and employment in mature economies. The entrepreneurs who do succeed in Poland tend to be a rare, hardy breed indeed.

Poland's lack of strategic investment in education will constrain the long term potential of the country. There is no Polish University in the top 100 in Europe, although the private business school, Kaminski Institute, did register in the FT MBA rankings (at 42). And, Polish businesses have traditionally under-invested in training and development, preferring instead to use free cash to fund the business.

All this means that while the economy may win praise from economists for its stability and financial prudence, it is failing to generate enough wealth for its population, or enough jobs for its young people. Unemployment has risen to 12.8% (in January 2010), whereas, by comparison, unemployment in the UK is 7.9%. Hidden from view is also chronic under-employment, with too many trapped in low value, unskilled bureaucratic jobs.

So, while agreeing with Ryszard and Michal that Poland needs to be looked at uniquely on its own merits I am concerned about the lack of vision and pace of reform. As a coach, I am very interested in how people compare themselves to others and the impact this has on their attitudes and behaviors. Donald Tusk was quoted in the Financial Times (Jan 28) as follows: "Who would have thought we would see the day when the Polish economy is talked about with greater respect than the German economy." To me, this indictaes a mindset of stunning complacency and perhaps a good leading indicator of a poor execution on much needed social and economic reform.

High migration is the social consequence of this, leading on the one hand to a haemorrhage of talent and on the other, a lucky escape for politicians, who would otherwise have to come up with solutions with unacceptably high youth unemployment.

Probably, this situation has only been sustainable due to the complete collapse of the left in Polish politics, due to its associations with ex-communists, SB-spooks and corruption. But this will not last for ever. The neo-conservative PO will soon have real contention on its hands if it does not develop jobs and viable, attractive futures for young people.

A recent trip to Lublin in the South East of Poland brought home to me how different their experience was to the lives of business and professional elites growing comfortable in suburban districts of Warsaw, Poznan and Lodz. Poland has one of the highest earnings differentials (the earnings gap between rich and poor) in the developed world. [Michal points out: Worth noting that in 1989, Poland, along with Japan, had the world’s smallest disparity between the poorest and richest quintile of society!]

The title of this article comes from a delightful Hong Kong/Taiwan movie of the same name. It is based on a Szymborska poem about two lovers, destined for each other, who nearly meet...but not quite. I won't spoil the ending for you. This is a wonderful allegory on Poland's relationship with Europe. For Poland to "find Europe" it needs more than just economic stability. It needs a vision for the future which meets the rapidly changing needs of a much wider cross-section of its population.

Book Review: Coaching With Colleagues, Erik de Haan and Yvonne Burger

2010-02-09T08:01:00.000-08:00

This is a really comprehensive and detailed analysis of the different approaches to coaching. It really "brings it all together". But more than this, the book sets out an agenda for a more integrative approach to coaching. Rather than promoting a narrowly defined proprietary method, it invites the reader to explore and combine different approaches.

It is particularly useful in grounding many of the coaching schools in the context of the various developments in psycho-therapy and counseling psychology.

Book Review: Susan Greenfield, I.D. The Quest for Identity in the 21st Century

2010-02-09T07:43:00.000-08:00

Professor Greenfield is one of the world's leading neuro-scientists. She is Professor of Pharmacology at the University of Oxford. I had the great pleasure to meet her after a seminar at the leaders in London Conference in November, 2007. I was struck then by how she could relate complete scientific insights with a deep concern for humanity. This book takes this winning combination to a new level.

It is wonderfully informative about developments in modern brain science. But it provides a lot more. The book is really about what makes us human. Her thesis is that our brains are highly dynamic entities that constantly interact with, and are changed by our environment. She describes neural plasticity, and the capacity of the mind to change and develop.

She writes: "The dynamics of the environment and the neuronal malleability give rise to an ever evolving identity, one that is unique and individual, yet an individuality that is constantly transforming".

No longer can we assume that our brains are "hard wired". Our minds are not fixed at birth. Our brain, mind and personality are part of a dynamic system that change throughout our lives. The implications for leadership and coaching are profound. Minds can be nurtured and developed. The environment can foster minds that become more creative and intelligent. Through conversation, learning and experience we can continually develop ourselves.

At the same time, Professor Greenfield points out our identity is at risk. Technology advances present a series of ethical dilemmas as well as providing many obvious benefits. But more than this, she argues that our very connectedness and immersion in "wrap-around" web technologies can threaten our sense of who we really as people.

This book does more than just describe the threats. It inspires us to protect our humanity at all costs.

The Core Concepts of Coaching #I: Humanism

2010-02-09T07:20:00.000-08:00

Modern day coaching has grown by integrating a variety of different psychological and developmental disciplines. Frankly, it still looks more like a smorgasbord than a pasta dish - and perhaps that's it's strength. Leaders and coaches can develop their own style, mixing and matching from a wide school of different methodologies and techniques depending on their clients and their needs.

In this series of articles, I thought it would be useful to summarize the various approaches to coaching. None of these channels provide complete answers in themselves. And, in my view, coaches need to be trained and competent in three of four distinct styles to support any single client, let alone build a practice.

In this article, I describe the humanist approach deriving most directly out of the work of Carl Rogers. I have plotted this on an analytical chart, showing how we would associate humanistic coaching with a person-centered approach with a "following" coaching style. Later, I will cover other approaches, such as psycho-dynamic, gestalt, cognitive-behavioral and process coaching.

Humanism originates in the Aristolean view of man striving for eudaimonia, or fulfillment.

In modern times, humanism has been grounded in the work of motivation theorist Abraham Maslow, who defined man's innate drive to achieve self actualization. Man has all he needs to achieve highest state of being, if he can satisfy lower order motivations.

The coach therefore, needs to be present, but not in the way. To a great extent, maslowian-humanism underlies all modern approaches to coaching.

Therapist Carl Rogers popularized a form on non-interventionist therapy, providing maximum space for the client to work through issues themselves and come to a self diagnosis. It is the empathetic and non-judgmental presence of the therapist that can provide the catalyst for the individual to reach breakthrough insights. This is achieved by maintaining a stance of detached empathy.

The key competency is listening

Approaches to therapy derived from Carl Rogers is conceptually very close to many coaching schools.

Humanistic coaching is highly appropriate for supporting clients to who seek to develop their full potential. Visioning, defining values and developing personal growth strategies naturally flow from this style of coaching.

In my view, humanistic coaching is less effective if the client has low self awareness, goal conflict, or is wrestling with unproductive patterns of behavior. Here, other styles need to be used.

It requires incredible self discipline and control on behalf of the coach. With such non-intervention, eye contact and a relaxed empathetic body posture become vital to ensuring the client feels the continuing engagement of the coach.

GROW, Co-Active coaching and CoachU models are probably the most aligned with this school of thought.

However, the sheer open-endedness of Rogers approach to therapy presents a problem in the real, fee-paying business world. Coaching schools have therefore introduced an element of process, through which the coach can gently but firmly guide the client towards goal-fulfillment.

In this way, coaching has sought to balance the needs of the client in terms of self expression and outcomes.

One of the best books that describes the various approaches to coaching is Coaching With Colleagues, by Eric de Haan and Yvonne Burger.

Book Review: The Smartest Guys In The Room, Bethany McClean, et al

2010-01-13T07:03:00.000-08:00

Although the fall of Enron now seems old news, the book and movie are as relevant today as in 2003.

It is an insider expose of the macho, ego-driven ride to disaster. It also, as today, charts a tragedy. Many decent hardworking folk working for firms acquired by Enron lost their 401ks and a lot besides.

Unchecked risk, leaders without scruple, out-right lying about the real value of stocks - it's all here. On the movie you can here the Enron traders cynically manipulating California's energy prices to max-out on profits.

It also shows how Enron innovated the very credit instruments that formed the heart of the 2008-09 sub-prime crisis. In my view, we have lived through one continuous crisis, starting in 2003, the alleviation of which caused the bubble of 2008.

The book neatly integrates the sequence of events and links to a psychological interpretation, referencing the infamous Milligram experiments, showing just how far people will go to follow the orders of authoritarian leaders.

The book also works as a story of how one female journalist and one female whistle-blower brought down the stack of cards.

Feeding time: Bankers bonuses and the need for Good Banking

2010-01-13T01:25:00.000-08:00

I wanted to build on Colin Gruar's article yesterday and add some perspectives to the very topical subject of bankers bonsues, and what it says about the state of the banking industry.

I have added the widget of the gold fish. Like goldfish we seem to swim around, respond to the immediate stimuli and retain only about a seconds worth of memory. Haven't we been here before?

This tendency to forget is not new. If you watch the movie Smartest Guys in the Room about the Enron collapse of 2003, you will see Chuck Prince in denial to a Congressional hearing. This is the same Chuck Prince that led to the fall of THE biggest banking brand, Citigroup.

Just yesterday, the Economist dropped on my desk arguing that a second bubble had emerged. Yet, news from Wall Street and the City of London suggests that bumper bonuses are in the offing due to the massive year-on-year rise in profits. It might well be the case therefore that bankers will receive inflated bonuses on the back of growing assets temporarily, which will simply crash again mid year as we enter a second dip.

It is not banker bashing to suggest that this is wrong. Ultimately, it means that the bonus mechanisms inherent in many bank bonus plans ratchet up, but not down, resulting in a too greater share of the economic pie being given upfront to bankers.

The result is not just public anger, but the real risk that the Financial Centers of Europe end up being regulated by Belgian socialists. If bankers behave like goldfish there is only so much governments can do to prevent this, given the complex political trade offs going on in Brussels.

Banking by nature is a risk taking activity that has to allow large scope for entrepreneurship. Regulation that turns banking into a utility will impoverish the whole of Europe, not just Frankfurt and London.

The answer lies in rediscovering the old ethics that underlay the growth and success of the financial centers from the thirteenth century onwards. In 1801, the London Stock Exchange adopted the motto, "My word is my bond". We might guffaw cynically today. City slickers might say, "Come off it, mate, you don't really expect us to believe that today".

Well, the answer is yes, we do.

As both a former head of Executive Compensation for the Hay Group in Asia, and as an Executive Coach, I have seen banking leaders increasingly opt out of their leadership responsibility to allocate bonuses fairly and ethically. Rather than making balanced judgments, banks adopted formula based schemes, linking bankers bonuses directly to short term indices, such as new business, fee income and net profit. Nothing can indicate more the lack of trust within the banking industry that its leaders were no longer trusted to make decisions.

Cynically, banks created a lot of HR bumph around bonuses, designed to create an impression that clients came first and their bank was committed to the public good. The evident disregard for these words in the actions of their leaders meant that no longer was a banker's word to be trusted.

The key point I want to make however, is that we need good banking. Banking is how wealth is created. I recall some years ago at a function in the City of London sitting next to an bond trader. I asked him how his day had been. He replied, "Not good really, I just dropped $5 million. Never-mind, tomorrow's another day". We clinked glasses and toasted to success. This is banking.

Bankers who have protected their clients assets and found new sources of growth need to be reworded handsomely. Bankers who simply grow with the market should receive a salary and no more. Bankers who fall behind the market need to have immediate cuts in their cash compensation. These performance indices should be measured on a rolling three year basis.

Most banks simply don't do this. They prefer to manage performance by mass firings (often, after the market has crashed), leaving the rest to enjoy the pie. This creates a selfish, greed culture in which undermining your buddy from college becomes a rational act. At a macro level, it means partners of Goldman Sachs feast on the bones of Lehman brothers, while adding no value other than being the last man standing.

Back to Colin's article. Banking can only be recovered if leaders rediscover the morality inherent in banking. Short term concerns about loss of talent are misplaced. Banks that act on sound values will attract customers and talent in the short term, mid-term and long term.

Within a bank and across the banking industry, these winners and losers should broadly balance out to ensure the banking industry does not consume a too greater share of the economic goods.

Here's my view of how to do this:

Banking leaders demonstrate they act ethically when confronted difficult choices. For example, telling the truth would be a good start.
Banks do away with short term, profit-linked bonuses
Banking leaders become individually accountable for making bonus decisions based upon good economic information and in accordance with core banking values
The overall pattern of variation in banker's bonus pay becomes clear to the public
Promotion within banks weight heavily towards those who have shown they can make good ethical choices
The Boards of banks are strengthened by well paid, expert and independent non-executive Directors with the power to report independently to shareholders and regulatory to governance risks within the bank.

There is much more to be done. But these things would be a good start and help re-build a banking industry to be proud of.

Guest Contributor: Dr. Colin Gruar, Bankers need morals to rebuild their brands

2010-01-12T05:09:00.000-08:00

Dr. Gruar is a former Marketing Director of the British Heart Foundation and has been awarded a Doctor of Business Administration (DBA) from Cranfield School of Management.

He now leads Repubrand and advises major corporations on strategy and branding.

Bankers have destroyed their global brands. Never has there been so much resentment against banks, and yet we need them as the wealth-generating engine of our economy.

Alan Greenspan thinks another collapse will happen again ... and we agree. He thinks it’s only human nature, and you can’t control that. We disagree. We think it’s behavioral, and we know we can change brand behaviors. Despite £1.3 trillion having been pumped into the ailing banking system (not to mention the ‘secret’ loan of £60 billion) in the UK alone, there remains real concern that we haven’t learned our lessons, or made changes to prevent it happening again.

Some say the Anglo – Saxon banking model is dead in the water. Many of our European partners want to see fundamental change

Lord Turner, Chairman of the UK's Financial Services Authority, conducted his thorough 'drains up’ review. With a ‘vested interest’ in shoring up the existing regulatory system, the FSA wants ‘tougher’ legislation with ‘more teeth’. But when you consider that the FSA failed to use the ‘simpler’ legislation effectively, why should we believe they could do any better next time, with more complex rules to follow? No Lord Turner, regulation is necessary but not sufficient. We need to address the root cause of the crisis if our global banking brands are to be rejuvenated

We think Gordon Brown is on the right track when he says ‘Bankers need Morals’, except it is not just about Bankers. And we don’t believe you can build morality off the back of legislation alone. Legislation can underpin a moral code, but not create it. Instead, it requires Leaders who are clear about their brand values (what they stand for) and demonstrate to their people how to live them. Deep down, most business people yearn for more integrity in the workplace.

Leaders set standards, including MP’s. So when our organizations have their ‘backs to the wall’, what happens? We ‘look after number 1’. That’s what we see everyone else doing. It’s a ‘learned’ behavior that we act out, subconsciously. We don’t know we are doing it. This is the real challenge, changing subconscious behaviors. Recent commentary on Bankers bonuses shows the game of ‘look after number 1’ is back in play, with JP Morgan recently paying its biggest bonuses ever! Looks like Greenspan will be proven right, unless we do something major, soon.

Bizarrely, the FSA recognize this issue but have done little to address it, In March 2009, Hector Sants, Turner's boss, was reported as saying:

‘Managers of the future must acknowledge and fight against the herd mentality ... the recognition that financial markets are not rational, but rather that they are a behavioral system built around personal aspirations, is critical to us effectively changing this time around’.

So how do we stop this game? Sir David Walker, former Chairman of Morgan Stanley International, was asked by the British Government to make recommendations on Bankers pay and these may help, but again, we think ‘necessary but not sufficient’. More than controlling pay, we need to create strong, value driven cultures that are clear about what is acceptable behavior. For Banks, this must include a social responsibility. How would they account for their social impact to day? To change, we have to help managers practice appropriate behaviors and decision-making, just like pilots regularly practice how to fly (and crash) safely. Building the behavioral competency of an organization is the only way to ensure its members act appropriately through uncertain times.

And we agree with Mervyn King, Governor of the Bank of England. It is essential for Banks to be subject to market economics, including failure. That’s a big, big problem at the moment that has not been addressed. Bad behavior isn’t being met with a punishment that fits the ‘crime’. Nobody has been properly brought to book. ‘Crime’ is therefore being rewarded. And as any law enforcer knows, that’s a recipe for anarchy. Only by rewiring the value system, will behaviors really change and that will take time, so the sooner we start, the better.

As news is received of record bonuses being paid this month at JP Morgan, and other banks clearly feeling the need to continue to ‘reward’ their staff, it will be interesting to see how this moral dilemma is played out, publicly and politically across Europe. Both the British and French governments have already expressed their consternation at the behavior of some Bankers, when will they wake up and smell the coffee?

Suggestions for Comments: How do you think values-based leadership can be instilled once more in Banks?

To learn more about value driven cultures and how you can build the behavioral competency of your organization, contact colin@repubrand.co.uk.

Dr Colin Gruar is a strategist, consultant and coach at Repubrand Limited. Repubrand specializes in helping brands build strong reputations. It does this by working with clients in 3 ways: 1) to increase their strategic momentum (because most change takes too long and lacks focus); 2) to learn new skills to improve the effectiveness of strategy implementation (because good strategy requires doing new things); and 3) to help top teams achieve greatness (because being the best at what you do is what its all about). You can read more at www.repubrand.co.uk.

Connecting The Dots

2010-01-08T03:54:00.000-08:00

I watched the press conference last night in which President Obama displayed understandable frustration at the failure of various National Security departments to "join up the dots". As a leader, he is not alone in watching in disbelief as staff fail to spot important trends, see new threats and opportunities, or connect different pieces of information to get a clear picture of what is going on.

The picture emerged of highly educated and intelligent analysts myopically looking at lists of data, rather than spotting the significant fact that Al Quaeda had adapted by recruiting single angry young men into their ranks using a simple, intoxicating ideology.

As journalists pointed out quickly, the 9/11 Commission had identified the exact same failings eight years earlier. The President, like many leaders in his situation has called for "Accountability Reviews". But, this is not a structural problem of who's accountable for what. This is about an unproductive repetitive pattern of behavior, with it roots in cognitive psychology and the way in which we think and form images in our minds.

What the President and all leaders have to deal with from time to time, is for the natural human tendency homeostasis: The tendency to see things the same way unless presented with overwhelming proof to the contrary. It is one reason why we have stereotypes. It is one reason we sometimes fail to join up the dots.

I would argue therefore, the answer lies not in "Accountability Reviews" but the compulsory reading and discussion of "Zen and the Art of Motorcycle Maintenance" for all Homeland Security staff. The book is about a sensory journey of the author, Robert Persig, who discovers how to become aware of the significant things in life. In his analysis of why most people find motorcycle maintenance difficult he appears to describe exactly why highly intelligent analysts fail to spot threats, or marketing people miss opportunities, or sales people fail to close.

He explains:" The real cycle you're working on is a cycle called yourself. The machine that appears to be "out there" and the person that appears to be "in here" are not two separate things". In other words, it is when we become aware how our self and pieces of information interact as a whole that provides the subtle clues as to how solutions to apparently complex problems can be developed. This calls for a creative process, not an analytical one.

All science must involve the creation of an imaginative hypothesis at some stage in the discovery process. Science, economics nor business are never "just about" the data, the numbers, the facts. It is the meaning we draw from these facts that allows us to form new figures in our mind (gestalts) and see patterns, possibilities and solutions that were previously hidden from us.

And, first, we have to be ready to drop our previously held images. US National Security held onto an image of complex, multi-event plots. They did not see Al Quaeda reacting and adapting so easily.

Persig writes: "We take a handful of sand from the endless landscape of awareness around us and call that handful of sand the world".

I can imagine the the pressure on the Honeland Security analysts. "Stay focused", might have been the directive command from their boss, encouraging the person to think that the more they looked at the data, the more deeply and intensely they thought, the more likely it is that answer will be deducted. All the time, the person moves further away from making the critical connections. Being focused can be precisely the wrong directive to solving complex problems.

Alternatively, sitting back, looking out the window, going next door for a chat, even going for a walk and looking at the data again when you get back, moving it around, looking from different angles, feeling it, rather as a craftsman would carve a table, can be far more effective in such situations.

There are several key things all leaders can do to coach people to "connect the dots" :

>Help people see the whole landscape through exploratory language: What's happening out there?

>Foster a creative and energetic work environment, with minimal routine work

>Encourage peer-to-peer contact, and overcome silo-ed thinking

>Question preconceived images and assumptions, often hidden in peoples metaphors and word choice

>Recognize work as a craft, not just a job with defined lists of accountabilities

>Articulate clearly what is important and what is less important NOW, and the reasons why

The US, as with most organizations, has the capability to solve its own problems, if it draws fully upon the resources of its culture.

Discussion suggestions:

What are the ways in which leaders can help their people make conenctions between different pieces of information?

How far can we rediscover work as a craft?

How do leaders themselves overcome homeostasis, and what are the consequences if they don't?

Book Review: Why There is Something Rather Than Nothing, Leszek Kolakowski

2010-01-07T02:48:00.000-08:00

This is a wonderful and very readable book. It is a long way from the dry and jargon ridden books on philosophy that I had to endure at college. It is written with the general reader in mind and with beautiful economy, clarifies questions raised by the great philosophers. I found it a particularly useful resource to understand philosophical approaches to human motivation.

As the book is divided neatly into chapters for each great philosopher, it is easy to skip the material you don't find as relevant and move on.

It is a book that promotes thoughtful reflection and that has to be a useful thing in this day and age.

What's it all about?

Book Review: Psychology of Executive Coaching, Bruce Peltier

2010-01-06T09:38:00.001-08:00

Surely one of the best books on Executive Coaching and a milestone in coaching literature for providing an integrative approach to psychotherapy and business coaching. While most coaching literature tries to show how they're different, Pelitier successfully argues that psychotherapy and psychodynamic approaches have an important application in coaching.

There are important and very practical sections on defensiveness, avoidance, etc, useful to all business leaders, I think. I reflected that few of us realize our debt to Freud when we use phrases in the everyday such as "He's defensive"; "She has a big ego"; "Look at how he projects himself".

What attracted me was his criticism of lightweight coaching approaches that have no basis in how personality is formed and developed and as a result lapse into glib superficialities. At the same time, he recognizes the danger of introducing psychotherapy to the coaching and business arena:"The trick is to integrate "analytic" or dynamic thinking into coaching without pathologizing the client relationship".

As he makes clear, executive coaching is the perfect vehicle to do this. Executive coaches are trained to produce results while recognizing the independence and autonomy of the client.

A good read and a useful reference.

Happy New Decade! Time for the Teenies

2010-01-06T05:27:00.001-08:00

Congratulations. You made it through the Noughties. Twin Towers; two wars, Afghanistan and Iraq, both with terrible aftermaths; Hurricane Katrina; The Tsunami; floods in India; two major economic crises, Enron to Lehman; two epidemics, Bird flu and Swine flu; and urban terror, 7/7, and Madrid; and the double shame of Abu Grahib and Gitmo. The past decade is not likely to be mourned by many, struck as it was by a series of paired misfortunes. We have to feel happy at least that we got through this.

And yet, we also need to enter the Teenies with a sense of optimism, even pride. Beneath the calamities, the worst decade since the 1940s taught us is how to work together. The last two years have seen a major global depression avoided by unprecedented and successful coordination. China weighed in and threw itself behind global stability, ironic given its continuing ideological allegiance to communism.

Poland and other new entrants to the EU tangibly brought Europe together again, in a fashion not seen since medieval times. Hundreds of thousands of young East Europeans sought jobs and experience abroad, returning cash and knowhow to their home countries in the process.

The Tsunami brought a coordinated global response and on-the-ground activism in a way that contrasts strongly with the indifference towards Rwanda and Sarajevo in the 1990's.

India and China emerged as major economic forces with the ability to lift tens of millions out of the poverty trap.

The decade finished with the highly imperfect but significant Copenhagen agreement. Again in pairs, the Lisbon Treaty came into force, which will enable much higher levels of European integration to take place.

The role of women in public life and business took huge strides. Women lead countries and corporations; and they now account for about half of all entrants into the accounting professions. In developing countries, women are benefiting from service jobs resulting from globalization. Yet, think back twenty years to the times when many men and women argued that a male dominated society was an natural order of things. The rise of women shows that change can and does happen. Things are not going to be always the same. We can make conscious decisions about how we organize society.

If there's one thing all of the above showed, it was how these events were seen and felt around the world. Globalization is not just a function of the expansion of corporate structures, it is a mindset reshaping the way we think about the world. Media too, both official and unofficial, is becoming more global and real-time. Social media is at the cutting edge of this. We look at Iran on the bring of a revolution, we see videos and read tweets from the streets.

President Obama was elected saying "Yes, we Can." What has he achieved, people ask? Well, aside from stabilizing the economy and passing historic health care legislation in year one, I believe he has made us all feel differently. The proud Iranians patriots fighting injustice in their country are not not necessarily pro-American, but the changes they are attempting to bring about are going to be a lot easier to achieve with a thoughtful and conciliatory Obama as President, rather than the instinctive and abrasive Bush.

Unquestionably, the world faces great challenges. The troops will need to come home from the Middle East, while maintaining stability in these countries. The debts incurred while stabilizing the economy will need to be paid off through taxation or cost-cutting, while not triggering a global recession. The world will actually need to cut its emissions and mitigate the effects of environmental erosion on people already at the economic margins.

But I for one start this decade in a cautiously optimistic mood. There is a new global alignment around the need for economic and banking reform; for environmental action; for fairer policies governing global trade. There are disagreements about how to do this, and who should pay for what. But, we are leaving behind much of the thoroughly neo-conservative and nationalistic baggage that has so constrained the debates in the last decade. The Teenies will see solutions to these problems.

One thing stands out for me as the defining theme of the coming decade: The need to change patterns. Alignment and awareness are not enough. Individually and collectively we need to reduce our dependence on debt; live sustainable and balanced lives; be prepared to give more to those injured by global changes that they cannot control. This requires us to think and act differently. We need to rediscover our ethical sense and work pride - we do it because it is the right thing to do, not just because we are incented that way. Yes, Thiery Henri might be right that most footballers would commit handball as he did. Yet, neither Bobby Charlton nor Franz Beckenbauer would and they achieved greatness because of this.

So, I think the Teenies will be about a decade of change. Reform of business and financial institutions has to occur. Businesses and banks will have to account for the social cost of what they do and the broader societal risk that they incur.

Business will need to be authentic and honest. They will need to appeal to a young generation of employees and consumers who feel they have been lied to. Just like the Ayatollahs of Iran no longer have a monopoly of information within their country, corporate bosses need to understand the revolutionary nature of Web 2.0 and how social media empowers individuals and communities.

The beginning of the decade is a good time for each of us to think about how these broader patterns will shape us, because shape us they will. People who succeed in this decade will be the ones who will sense the changes taking place and embrace it, rather than fight it.

The hackers who broke into the servers of the University of East Anglia Environmental Science department, revealing as they saw it the falsehood of climate change, are a metaphor for what we have to overcome: the saboteurs in our own minds. When change seems difficult, our mental sabateurs start telling us that "We don't need to change; no one else is changing; change is a trick; what do these experts know anyway; let's just stay the same until we're really, really sure". All these mental "saboteurs" will be present in our minds over the next decade. Being aware of them, and staying committed to changing dysfunctional or too-risky patterns of behavior will be the key to avoiding a personal and collective calamity in the coming decade.

So, I have chosen the image of a door into the next decade to represent a sense of new beginning, opportunity and relief. It is up to us to walk through it.

Even Tiger Woods has a coach, right...

2009-12-17T04:45:00.000-08:00

Yes, it won't just be Accenture who has to rework its favorite tag line. Business coaches everywhere will be scratching their heads to think of some easy way to convey the role they have in coaching successful people. Tiger's enduring success presented an icon, an ideal: Someone who had actually "self actualized". He'd really done it. Athlete of the decade, model wife, kids, billion dollar contracts. With Tiger around, we all knew that with enough practice and a winning smile, anything was possible.

Now we are all faced with a hard landing back to Planet Reality. Life is full of painful choices and trade offs even for successful people and in some cases, particularly for successful people.

We are reminded of the fact that (according to Psychologist, Dr. Steven Ungerleider) within 5 years, 40% of Olympic medalists undergo psychotherapy or counseling in some form. Success itself creates its own dilemmas. As one motivational driver is satisfied, others remain unmet. They surface from our unconscious to remind us of their continued existence at inconvenient moments.

So what's going on? And, why can't we have it all?

In my view, it all relates to the key elements of our Mind: our Values, Motivation and Goals. There are other things going on in there of course, but these are the elements that I observe as a coach being most significant in shaping how we live. Keeping these three elements in some sort of balance is what I think life is all about. We function best when our goals are routed in our values and are driven by our motivational needs. For instance, if a successful person has very high Achievement motive, they might value the continued striving. It is not just about winning, its the struggle itself that they enjoy. It is this value that keeps them going on to keep winning. The goal to be #1 can therefore be grounded in real psychological needs. We achieve success in some aspect of our life, be it sports, work or in our social networks, as a result of this alignment.

Yet, just when we think we have it sorted, other motivational needs start to surface, under-nurtured and unmet. The need for freedom, independence, control, can assert themselves. My guess, it that this did so in Tiger's life, with disastrous consequences. The freedom to "be like other guys", and do what they do. With a life and family, and billion dollar promotional contract, Tiger's downfall brings to sharp relief just how "irrational" and self-destructive we can become when our motivational and value system collide.

This is a sad story. I don't know the chronology, but it might well be Tiger lost his bearings after the loss of his Father, who seemed unusually prominent in his adult life. Perhaps the child in Tiger hung around for just that bit too long. The impact on his wife and two young children can only be imagined.

The only lesson we can draw from this is coaches is to be reminded that its never just about the golf, anymore than it is ever just about work. Successful leaders bring their whole self into what they do, and their success impacts every other aspect of their life.

The sad part in all this is that Tiger was not able to change a habit before it was too late. Habits can be changed. He he is a young man with a lot to offer the world. He is a leader, icon, husband and parent, and what he does now will influence directly and indirectly many people.

Today, the message is that Tiger needs a real coach now more than ever. This is a distinctively different role and relationship from father or golf instructor. He needs someone with sufficient insight to spot the patterns, detachment to ask the tough questions and relational skill to build his self awareness. He needs someone who could bridge his public/private worlds and ensure the two were in alignment with each other.

And, let's face it, we all want to be inspired by the gods because they make us feel that we too, can rise above our complex, imperfect humanity.

Awareness, Motivation and Action

2009-11-19T06:54:00.000-08:00

The Gestalt Cycle of Experience and the Law of Pragnanz are vital to our understanding of how we become aware and move to action, sometimes in different ways and at different times from each other(1). If we want people “on the same page” as us, we need to attend to this. A confrontation in a care park highlighted this for me. And, a 1999 medical research study(2) points the way as to how leaders can create and maintain heightened awareness, motivation and action-orientation in their teams.

A short while ago, I was driving into a shopping mall in Warsaw. As I drove around the upper stories looking for one of the very few places left, I saw the car in front of me stop in the roadway. To my disbelief, he got out, locked his car and began to walk into the mall itself. With oncoming traffic coming the other way, he blocked the road in front of me. I wound down my window, and in language a little unbecoming for a coach, I said, "Hey X$C%!, move your car!!!". What he said astonished me. I was expecting either compliant action, or an alpha male riposte, but instead he simply said "spokojne, Pan. Nie problemu." (Be calm, Sir, there's no problem). He then proceeded with his nonchalant walk into the mall. The oncoming traffic had cleared and I was able to maneuver around his parked car. Still mumbling "What an X$C%!", I parked nearby. Soon however, I was thinking about something else (food probably).

To put it mildly, he and I had experienced different "Gestalts", the figures or images that form in our mind. I saw his car as an obstacle, he saw an opportunity to fix to his parking problem. But I also saw someone breaking the rules. We are meant to park our car inside the white lines. It's obvious. Society deems it so. But...in actual fact I had lost perhaps one minute at most. I was able to maneuver around "the obstacle". Other drivers would probably have been able to as well. Weren't we both right? When he said there was no problem, he probably had a point. Perhaps we can tolerate a bit of flexibility in society. After all, Britain, where I come from, is one of the most heavily policed societies in the world and this has its costs, too.

But more important to the point of this article, my attempt to achieve a resolution to this affair was wholly a failure. Why was this. Let's deconstruct this event:

> I had sensed the presence of an obstacle,

> I become aware that I was stuck and I saw a "rule breaker" ahead of me

> I became charged, and mobilized sufficient energy to deal with the crisis at hand

> and, I moved to action by winding my winding down and delivering my verbal assault.

> I had arrived at the action stage with a need-for-closure attitude

He on the other hand, had not even sensed the same things that I had. He saw that there was plenty of space to move round his car, once the traffic had cleared. And, he saw someone yelling at him. His lunch date was probably more figural to him at this stage(3).

I had moved from awareness, through motivation, to the action phase without ensuring my counter-part had any idea of what I was experiencing. Had I got out of my car, used some EQ to engage him in a conversation and said respectfully but firmly that I felt it was important that we all abide by the rules (and asserted my values), he might perhaps have been more accommodating. We might even have engaged in some joint problem solving, scanning our eyes for alternative spaces.

I wish I had my Wife next to me at this point. A third party perspective often helps.

But, isn't this just what happens all the time in leadership situations. In the moment, leaders see actions, results and behaviors which do not fall into the "white lines" they expect. Right/wrong imagery comes to their mind. Different levels of energy and motivation come to the fore. They're energized and excited by things, but it's hard to get peoples attention or energy focused on the same place. Often, leaders have to put up with grudging compliance rather than active energy behind shared goals.

The Gestalt Cycle of Experience (Figure 1) is therefore not just a personal process, but is a shared experience(4). It is our interaction with the outer world, and often with people that forms our experience. The more a leader can help people move through this cycle together, the more likely it will be that everyone will be "on the same page" and "pulling in the same direction".

Closely associated with the Cycle of Experience, is the Law of Pragnanz, the drive to complete the cycle and return to a point of equilibrium. In other words, we need closure. And, once we achieve closure we are often reluctant to re-open the cycle of experience, which is one reason we are resistant to feedback.

We can therefore look at the Gestalt Cycle as a linear pattern which is shared by different members of a team, with attention and engagement fluctuating over time and resulting in closure. Figure 2 shows the ideal situation, where the Cycle of Experience of each team member flows in a similar way. This tends to occur when a leader has allowed each team member to see, hear and experiment with an object or idea; and, through questioning and interaction, come to form a shared view about it. Big picture, coaching, affiliative or democratic styles can all do this well. They encourage people to be more open to feedback, to accept other peoples "Gestalts", and to listen to contrary views. Closure is achieved in business terms in various ways, such as problem resolution, decision, clear accountabilities, supporting processes, technical competence, and so on, all enabling the leader to psychologically "move on" and address other burning issues.

Figure 3, shows us a situation that often occurs, where the leader is exercising higher awareness and energy (usually negative) than others around them. Rather like myself in the Shopping Mall parking lot, leaders stuck in this place tend to use either the directive, "tell" , or pace setting "show" styles which results in compliance or replication, but which does not generate the same level of awareness or energy. One reason for this effect is that a "telling" style can more often lead to D3, denial, deflection and diminishing responses to feedback (See Feedback Coaching). When we are resistant to feedback, we have achieved a premature closure and withdrawal on an issue. Our mind is literally "set". New information contained in feedback is treated as inaccurate, irrelevant or malevolent. We stop listening and hold on to out-of-date images of ourselves and the situation around us.

How else can we explain failures of banks and other financial institutions, led by apparently successful and intelligent people who clung for too long to images of themselves "turning things around".

And, also in Figure 3, we see the real danger in "stuckness": A failure to reach completion or closure on an issue. The matter continues to bug you; cause arguments; distractions; procrastination takes hold; ineffective repetitive strategies are formed; failed execution results. People feel drained and fatigued. Without a shared awareness and common understanding, team members will interpret ambiguities in different ways.

A life and death situation illustrates the Gestalt Cycle of Experience in action. In 1999 a medical research study in Boston, USA, looked into the wide variation in the effectiveness with which sixteen public hospitals had introduced radically new ultrasound technologies for cardiac surgery. The key measure was time, as the duration the patience was under operation had a large effect on survival rates and post-operation recovery. Yet, the average time taken to complete the new procedures varied significantly. A wide number of variables were looked into. One of the most obvious was the knowledge and experience of the surgeon. Naturally, we'd expect that the more qualified and experienced the surgeon, the more effective and expert was the implementation of the new procedure. Well, not so. The study showed a negative correlation between "world class" surgeons and the time efficiency in adopting new procedures. "Average" surgeons performed the new procedures better.

How could this be. Well, direct quotes from the authors illuminate the reason:

"The ability of the surgeon to allow himself to become a partner, not a dictator, is critical."

The procedure was introduced more effectively when there was " a free and open environment with input from everybody"; and,

"An atmosphere of information sharing" was key to the more rapid adoption of the procedure.

World class surgeons, grown up in the older methods, had used a dictating style in the operating theatre. They saw that the success of the new procedure depended on their judgment. What was most figural to them was their own expertise. They were therefore reluctant to take on board the ideas of others. The support staff were not made to feel that they had anything to contribute, and therefore they simply saw this procedure like any other. They were professional, but detached.

"Average" surgeons, perhaps because they were not invited to give speeches at international conferences, were less prone to see themselves alone as the instrument of success. They saw the new procedure as a an "organizational issue" and not merely a technical challenge. They therefore actively sought after the opinions of assistants. And, these surgeons saw the value in building up a dedicated team so that knowledge could be built up and shared. Team members felt part of something. They invested energy. It was this team specialization that accounted for the biggest variation in operational effectiveness of the new procedure.

World class surgeons merely retained the existing nursing rotational system. They were not open to new experience. Their Gestalt Cycle was closed. They had equilibrium, confident in their image of themselves as truly world class. Although perhaps a read down of their effectiveness rankings might have prompted a sudden re-opening.

The case study points to the uncomfortable fact that it can be our very success that can stop us sensing and becoming aware of the value of those around us. If business leaders sit in a room and see others as rivals, threats, juniors, women, ethnically or nationally different, less smart, rather than as people they will miss vital sensory information that can lead to disconnection, dissonance and "stuckness" later on.

Taking more time early on to prompt dialogue, exchange and reflection is the surest way of achieving a common Gestalt Cycle and a common sense of closure and equilibrium. Carefully listening for meaning; deep questioning, resolving differences and being transparent in ones own thought and feelings might take more time initially, but will produce higher levels of awareness, greater motivation and more effective action.

1.Organizational Consulting, A Gestalt Approach. Edwin C. Nevis

2.Use of Ultrasound Technology in Cardiac Surgery in 16 public hospitals in the Boston, Mass area, 1999. A Edmondson; R Bohmer; G Pisano: HBR

3.Skills in Counselling & Psychotherapy. Phil Joyce & Charlotte Sills.

4.Organizations Get Stuck Too. Bill Critchley & David Casey (Leadership & Organizational Development Journal)