pdf Y3.1.1 - The New 21C Org Eng web v

© Banks International LLC 2004-2014. Some concepts anchored on the works of Henning-Showkeir & Associates. Web Version 4.4

NOTE: The following information is excerpts from the Presentation by the same name. For more information or for the complete document please contact us.

Please be advised that the complete document is controlled and requires positive identity to obtain.

The New 21st Century Organization is an organization that functions with Adaptability, Efficiency, and Flexibility, has adopted The New Contract, has a predominantly Adult-Adult culture, and

concentrates on creativity and innovation.

The demonstrated best way to develop an organization to be Efficient, Flexible, and Adaptable requires an effective, repeatable and reproducible Creative Problem Solving process, an Adult-Adult Culture, a 21st Century style of Leadership, and a modern Functional Culture with modern processes and controls, such as 6δ, 5S, S&OP, MOS, Lean, etc.

Flexibility

Efficiency

Adaptability

(Organizing to cope with unexpected turns of events)

Quick handling of emergencies and sudden crises

Quick response to sudden overloads and unusual demands

(Organizing for routine production)

High quantity and quality of product High Output/Input ratio

Continuously improving current routines

(Organizing to change routines)

Breaking old routines Anticipating problems and developing timely solutions

Staying abreast of new methods applicable to the organization’ activities Prompt acceptance of solutions

Widespread acceptance of solutions © BANKSinternational, LLC 2005. Based on the published Works of Dr. Min Basadur. © Basadur Centre for Applied Creativity.

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The 160+ year old Traditional Contract suggests that there be a paternalistic relationship between bosses (who unknowingly and unwittingly act as “parents”) and employees (who may also unknowingly and unwittingly act as dependents of the “parents”). This leads employees to wait for bosses to make all decisions, give orders, break new ground, steer them, protect them, and take care of them. The success or failure of the enterprise lies in the hands of these “parents.” This, in turn, strips the individual employee of their own responsibility in producing success. He/she then mostly worries about following orders, executing to expectations, and hopefully continuing to consistently gain the favor of the “parents.” Here we lose the intellectual capital of people, and the knowledge and experience gained through time does not necessarily contribute to or advances the organization’s Mission. The weight of responsibility for results is placed on the bosses’ shoulders (which isn’t entirely fair), and unconsciously provokes them to treat people with a high degree of control over them.

Mature

Participate

Take Ownership

Let Go

Involve Others

Inspire & Lead

3 DISTINCT EVENTS MUST TRANSPIRE FROM BOTH SIDES OF THE INFLUENCES OF CULTURE

Mature Evolve from “dependent” role and make choices Let Go Evolve from “parent” role and

become coach

Participate Get involved with the whole business, not just your job Involve Involve others in the business;

coach, delegate, empower

Ownership Own the end results – see your complete role

Inspire & Lead

Think possibilities, think big, think can do, enable everyone

To develop a 21st Century New Organization with its associated better results, the functional culture (how things are done) and the social culture (how people interact) must evolve. Currently, the dominant corporate culture today is the Traditional culture, also known as a Paternalistic Culture and/or the Old Contract. Evidence suggests that these types of organizations will not easily, swiftly, or cost-effectively take an organization to the levels of performance or the results sought or needed in our economy or the global market. Shedding a traditional paternalistic culture and evolving towards an Adult-Adult environment requires deliberate work on the two domains that influence culture. Employees cannot and will not evolve until the leadership uses its patriarchic influence to systematically help them evolve into “adults,” independent and co-accountable for execution, performance, results, and their own well being. Likewise, employees must want and pursue that state. Research by well regarded and prestigious academic institutions, as well as by reputable private interests, suggest that the most transformational commercial strategy that will lead an organization to a better economic performance in the 21st Century is the progression of a paternalistic-style culture into an adult to adult type culture (what we refer to as The New Organization, The New Contract, or The Partnership Strategy).

CULTURE

© BANKSinternational, LLC 2004

Core Workers Leadership


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Dominant Cultural Styles

Paternalistic Cultures (a.k.a. Parent-Child

Cultures)

Leaders tend to: Act like parents in relationships with subordinates Demand compliance and conformance Control activities, resources, use of time, and information Make most decisions, including those that belong in lower levels of the

organization Provide physical and emotional safety Face challenges (too often by themselves) Solve problems and provide solutions (too often by themselves) Answer most questions Continuously assert their authority and control Centralize control at the top Hold people accountable for their responsibilities React unfavorably and oftentimes aggressively to

o Questioning o Disagreement o Resistance o Opposition o Dissention o Push-back o Challenges to status-quo o Non-compliance o Non-conformance

Core Workers tend to: Act like “dependents” in relationships with superiors Look to be taken care of (their safety, job security, employment viability,

etc.) by those in authority Place responsibility for their individual success and the success of the

enterprise on leaders Avoid self-expression and choose the comfort of stability over ownership Put their future in the hands of leaders React to disappointment in leaders with

o Blame o Victim/villain thinking o Apathy o Malcontent o Fear o Resignation o Helplessness

React to pressures with o Confusion o Denial o Resentment o Self-induced stress o And/or by hiding or distorting information and “bad news”


Dominant Cultural Styles

Leaders tend to: Recognize and accept that people have and make choices Freely share information about the state of the business Impart business literacy to everyone Encourage and consider all perspectives and points of view Engage everyone in the running of the business Enable innovation and unique solutions Encourage and enable self-accountability Promote empowerment and self-reliance React unfavorably to people’s

o Lack of individual accountability o Externalization of individual accountability o Political deference to authority o Dependency on external low-risk decision-making o Lack of ownership (of the whole)

Core Workers Have the right and responsibility to embrace the risk in the marketplace

and take responsibility for the whole. They tend to: Master their own business literacy Deal with their own emotional welfare Manage and do the work of the organization Have a point of view about the business Contribute to the success of others Make choices that benefit the whole enterprise Feel safe responding assertively or reacting to

o Excessive or unneeded control o Demeaning or disrespectful treatment o Rejection or negation of feedback o Lack of consultation on decisions that affect them o Negation of participation in many tactical elements of the business

Mature

Participate

Take Ownership

Let Go

Involve Others

Inspire & Lead

Strategic Approach:

Change Culture from “Parent-Child” type Interactions to “Adult-Adult” type interactions

Develop trust and mutuality of purpose amongst and between all levels

Change leadership style from paternal to Transformational (21CL)

Advance leadership style from all tactical to include a solid strategic orientation

Core Workers

CULTURE


Adult-Adult Cultures

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Leadership

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Many efforts to evolve to 21st Century Organizations have fallen short of doing so and/or fallen short of delivering expectations typically identifiable with The New Organization. Research suggests that in nearly all instances, the root cause of the failed efforts was that the culture never evolved out of the Traditional Culture/Old Contract. In these organizations where the efforts failed, work groups were formed, people were trained, much empowerment was delegated, many responsibilities were transferred, boundaries were reestablished, decisions were moved to lower levels, and much more was done. The problem was that leaders continued to act like “parents” and core workers continued to act like “dependents.” Although core workers took ownership of their work, they never took ownership of the whole and never brought forth many of the improvements or ideas they had to contribute to the success of others. Organizations will always have a much needed hierarchy of control, just like societies cannot exist without some sort of leadership. We’re not talking here about democratic enterprises. There’s plenty of evidence that they don’t work well and eventually fail as a business. We’re talking here about businesses where everyone shares in the risks of the market, as well as the rewards. We’re talking about environments where everyone is interdependent, but not reliant on others for their personal satisfaction of participating in the enterprise. We’re talking about an environment where everyone sees and interacts with everyone else in an adult way – telling the unconditional truth, extending good will to others, trusting the intentions of colleagues and coworkers to be noble, knowing everyone else has your back, as you have theirs, recognizing the shared mutuality . . .

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