Why smart companies do dumb things

by admin on September 13, 2006

I occasionally read Guy Kawasaki though I’m not a huge fan. Largely because I’m not keen on ‘evangelists.’ It’s a thing I have. I’ll get over it. But today, Guy helped crystallise a set of problems I’ve been trying to solve. They boil down to this:

How do you get management that’s been brought up, nurtured and maybe even has DNA that works on the command and control principle to recognise the value of change? Seems like an impossible task. Usually these people are in powerful positions, commanding sizeable budgets. They’ve been inculcated with IBM/Gartner/IDC/ICAEW/SAP/MBA thinking that says: My way or no way. They’ve got control over the business and it’s going to stay that way. Trouble is that produces intellectual sclerosis and eventual decline. So how did Guy help?

The biggest hurdles are group think, ethics and greed. On group think, Guy offers:

Say, believe, and act in a way that convinces employees that differences of opinion and diversity of thoughts are good things. Frankly, a couple of curmudgeons is a good thing for a company.

Don’t be in a rush to meet consensus. In particular CEOs should not rush into a decision even though the image of decisiveness is so too seductive.

JP Rangaswami might disagree on this but I think Guy’s thinking is ahead. It allows for the need to make decisions but within the context of understood dissent. Which could be the majority view.

On ethics, guy says:

Spell things out. It’s not enough to say, “Plug this leak in our company” and assume that it will be done legally. You should say, “Plug this leak in our company by using only legal, ethical, and reasonable methods.” That’s when you’re done.

What Guy doesn’t say is that in doing so, you need to have very clear ethical guidelines with teeth. I’ve said many times that exotic tax planning is no longer acceptable. Get over it and move on. It’s why I admire and respect Richard Murphy’s position. It just makes sense.

On greed, which gets most of us one way or another if we’re honest:

Squash arrogance and greed. I’ll be honest: I don’t know how to do this. If I figure it out, it will be the topic of an upcoming blog.

Arrogance is easy – ignore it. It’s attention seeking by another name and if this medium has taught me anything, it is ignore the Assholes. Arrogance always ends up exposed for the morally bankrupt reality it is. Greed? The antithesis of acting ethically. The days of operating out of a winner takes all mentality are over. Larry Ellison doesn’t get this yet. He will. Around the time he has his first heart attack and realises there’s more to life than a few extra $$$. That I stress is not something I wish on one of the most successful business people on the planet. But sooner or later, we all have to learn there are important values beyond personal wealth.

Some will argue that I’m taking a wimpish stance guaranteed to foster failure. Look at Coop Bank and tell me the same thing. Note – I’m not advocating the end of competition or the pursuit of excellence. It’s the opposite.

Where Guy has really helped is in my figuring out the power dynamics problem yet he doesn’t touch the subject. If you start by fostering a culture of responsibility rather than blame and reinforce that with a strong ethical dimension supported by a zero tolerance for arrogant Assholes balanced by fair reward then there is no need for power brokers.

It fits my definition of innovation but I wonder whether it fits that of others.

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  • http://teblog.typepad.com/ David Tebbutt

    “On ethics, guy says:

    Spell things out. It’s not enough to say, “Plug this leak in our company” and assume that it will be done legally. You should say, “Plug this leak in our company by using only legal, ethical, and reasonable methods.” That’s when you’re done. ”

    Shame he wrote it *after* the HP debacle. I was prepared to be impressed.

  • http://www.accmanpro.com Dennis Howlett

    Depends on your point of view. Josh Greenbaum did a neat comparison with Oracle raiding M$ rubbish bins…seeemed right to me but then Larry E is a ‘kill everyone’ kind of guy. Maybe his time has passed?

  • http://teblog.typepad.com/ David Tebbutt

    Seems to me that poking around rubbish that’s been left out and passing off (or identity theft) are actually quite different things.

  • http://susanitsa.wordpress.com Susan Scrupski

    I tell my kids there are two types of arrogance: deserved arrogance and undeserved arrogance. I’m okay with deserved arrogance. I’ve met many CEOs and leading partners of Consulting firms who fit this bill. They’re central-casting arrogant, but they’ve earned their shoulder chip. I respect them. There are some Ajax developer 20-year olds that humble me who are arrogant; I respect them too. I’ve learned to absorb their arrogance and still communicate with them on a human level.

    Then there is the guy or gal who is arrogant out of insecurity. This could be a really intelligent individual, but hasn’t really contributed to, let’s say, “the greater good.” Or, the radio call-in arrogant guy or arrogant blogger. They actually have no real point. I try just to be polite to them.

    As a child, it’s hard to tell the difference between deserved arrogance and undeserved arrogance. But it gets easier when you get older, I tell them.

    Greed? Where would capitalism be without it? Just an observation. (!)

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