Inside Business Ethics

David Batstone with Worthwhile Magazine posted this essay on the evolution of business ethics. His closing paragraph says:

Compliance, transparency, sustainability, and customer engagement. It is clear to see that business ethics is no longer a trivial matter that senior managers can philosophize over at the odd moment of retreat. Business ethics is a strategic concern at the core of the business operation.

I agree whole-heartedly with his ideas, I just want to add one point. Where he has focused on external stakeholders, investors and customers, pretty much everything he says has application to internal stakeholders (employees, contractors, suppliers) as well.

Whatever it takes for organizations to get to a better place needs to account for and be accountable to all stakeholders.

(Disclaimer: I am an employee of GlaxoSmithKline.)

Infrastructure & Intent

For a while now I have been thinking about what a friend of mine calls the "the unified field theory of organizations". A couple of years ago I felt like I had taken another step toward gaining a better personal understanding of how organizations operate when it finally clicked that networks were a key ingredient. Interpersonal networks, technical networks, whatever, the key was fast information sharing and fast feedback. But still something was missing. During the same time-frame, I was immersed in training, books, discussions, etc. about leadership and vision. These words are so ubiquitous in organizations these days they tend to become invisible.

The events of the past week, Hurricane Katrina and its aftermath, have pushed me once again into deeper thoughts about trying to understand the underlying issues about what happened with the relief effort. I started to put the thoughts of networks and vision together into the same thought process. This lead me to the conclusion that Infrastructure (networks, et.al.) and Intent (vision) must both be considered as necessary but not sufficient conditions, when considered independently, to yield successful outcomes.

If you have a great and powerful vision but no mechanism to do anything with it, … no go.

If you have a perfect infrastructure, but a poorly guides direction, you can produce bad outcomes very well.

Only the combination of great infrastructure and great intent can provide great outcomes.

The Hurricane

I am at a loss for words to describe my thoughts as I watch the news. I am watching what happens to people as they are put into unthinkable situations. I wonder what I would do if my home dissappeared, I had no food or water no job… would I be looting too? What I find interesting, is that as people become more focused on their own survival needs and their sphere of concern becomes smaller, their decisions seem to become more counter-productive. As they were trying to evacuate the Superdome, fights are breaking out and someone fired a gun. This of course slowed down the process and made the situation worse for all including the perpatrator. Though the circumstances are extreme, observing and understanding what is happening along the Gulf Coast this week  should provide  invaluable insight into ourselves and our organizations. I see the best lesson is that by thinking of and helping   others first, we best help ourselves. Think about that the next time you are fighting for your bit of corporate turf.

Project Management

I believe that the most important  part of project management is the process of creating the plan, i.e. the conversation that happens between team members, rather than the artifact (deliverable) of the finished plan itself.

Seth Godin just eliminated the need for all of those project management courses and certifications. He has captured the essense of the conversation that is necessary to do project management.

Managing the vague

Marketing projects are almost always vague.
They almost always involve people who aren’t your direct reports.
And they almost always use people who have other stuff on their plate.

(this, btw, is very different than running a factory, where all three things above are never true).

So, here are three questions I’d challenge every person working on any marketing project to ask. Ask them whenever someone gives you a task.

–when is this due?
–what does it look like when it’s done?
–how important is it compared to everything else on my plate?

Rigor isn’t pretty, but sometimes it enables communication.

Thanks Seth. I am sure the Project Management Institute won’t be happy.

Transparancy

Paul Graham just posted an essay on "Inequality and Risk". His primary theme is that all the talk about eliminating economic inequality may sound moral and righteous, but it is not supportive of a healthy economic system. It is a fairly long, well-developed essay, but the interesting part to me is an argument near the end:

  Demand    transparency.  Watch closely how power is exercised, and demand an account of how decisions are made.

This is very much in line with my thinking about how a well-run organization should operate, with full transparancy, which can be best achieved through conversation.

Inside Conversations?

I am a self-styled student of how groups of people work together. I bring to this endeavor over 20 years as a wage-earner, a business degree, and about 8 years of reading literature on organizational dynamics, systems, chaos theory, and anything else that struck my fancy. Most of this reading has been business management books, but more recently web sites and blogs.

In this time I have achieved a few insights. Unfortunately most of these insights are somewhat disjointed and eclectic. One objective of this blog is to help me put those thoughts down in some sort of a permanent record so that I can revisit them every so often to see where the linkages exist (this has much to do with being over 40, the memory thing…). Secondly, I hope this blog allows me to share my thoughts, to the end of generating an authentic conversation with anyone who cares to engage in a dialogue.

As this forum moves forward, I intend to find others that have ideas and/or philosophies that align with my own.

What do I mean by "Inside Conversation"? First, I find the concept of conversations to be a compelling metaphor for the most effective form of communication that can exist within an organization. Most people are probably familiar with the typical "corporate communications" efforts: Powerpoint decks, town hall meetings, broadcast voicemail, … the list goes on. Unfortunately almost all of this is about pushing information out to the masses, trying to control the message, believing that each employee (member, whatever) is just waiting for any crumb of information from the powers on high. …clueless… There needs to be a true exchange of information, true authenticity for corporate communication to have any real relavence. Both sides must listen! This to me is what a conversation is all about, listening. I have therefore chosen "conversation" to be the driving theme of this blog.

The "inside" part means that I want to focus on how this conversation should happen within a specific community as opposed to the public in general. Many others are out there talking about engagement between companies and customers. No need to go there, at least not yet. I want to be a little more focused, dealing with what happens within the boundries of a system.

This is the start, let’s see if I can make this fun and interesting (for me at least!).

Later…

Do the Right Thing: Listen

It has been my experience that most people operate from a position of positive intent. “No mother’s child was ever born evil.” I don’t remember exactly where I heard that, but it says a lot. Everyone hopes to improve their situation, but everyone sees a different road to that end because everyone has lived a different set of experiences. You may see another’s actions and behaviors and determine that that person bad/wrong/evil/stupid/etc., but the problem is that you are viewing their actions through the lens of your experience. By labeling that person as an adversary, you block the ability to effectively exchange information that may lead to understanding on both parts. The whole Red/Blue Left/Right thing is driving me crazy…everyone is talking and no one is listening…both sides are guilty. The only way we as a society are going to reach a better outcome is for everyone to start listening. Listening leads to understanding, which hopefully leads to better outcomes for all.

Why the rant? I am trying to get my hands around blogs and why they are so compelling. I think it is because good blogs are a conversation and a conversation is based on listening not talking. This goes to my point that we are all looking for better outcomes for ourselves, and blogs have emerged as a way to meet that end.

Borders

Borders and trust are inversly proportional. Borders are the points on a network (think system) where feedback is restricted or controlled. When feedback (information flow) is limited, trust is limited. Therefore as the feedback within a system is increased, borders are eliminated and trust is increased. As trust increases, productivity increases.

(…not particularly coherent, just wanted to capture the idea for future use.)

2 Statements

A boundry exists between a system and it’s external environment. How we behave at the boundry is significant.

1. When the boundry condition is fear it leads to building fences typified by confrontation, driven by a short-term view, focusing on existing patterns, resulting in conservative agendas. Process improvement is seen as the best way to move forward. There is a belief that competition is the underlying paradigm. Rules and plan are relied on to promote growth.

2. When the boundry condition is wonder it leads to building bridges typified by conversation, driven by a long-term view, focusing on new patterns, resulting in progressive agendas. Disruptive change is seen as the best way to move forward. There is a belief that cooperation is the underlying paradigm. Emergence is relied on to promote development.

Which system would you want to be a part of? It all begins with how you approach the boundry (the unknown), with fear or wonder!

-Lee

Boundry Conditions

Boundries define systems and sub-systems. The boundry is the interface between what is part of the system and what is part of the environment. Events that occur at the boundry are significant in defining the nature of the system. One could say that since everything is part of one greater system, what is the point of looking at sub-systems? I contend that it is critical to consider sub-systems because the manner in which system components (individual, organizations, etc.) view themselves influences how they make decisions. Decisions are “always” made to maximize the benefit accrued to the system. If I see myself as the system and everything and everyone else as part of the outside environment, I will make decisions that maximize my benefit only, without concern for the outside environment.
If I see my family as the systemand everything and everyone else as part of the outside environment, …
If I see my organization as the system…
If I see my country as the system…
If I see the world as the system…
Of course most people do not consciously go through the process of thinking about systems, but if you look at their decisions, it is a proxy for how they see their world. If you logically look at this you might ask why wouldn’t everyone want to maxmize the benefit for the most people? The answer is in timing: the smaller the system, the faster the feedback loop, thus the quicker the gratification. Unfortunately the quick gratification does not always lead the the best long term ooutcome.

Now as systems practitioners, how do we get people to look past short term gratification and embrace the longer term benefit? The answer is increased human interaction. Build the network. By increasing the connection between people we come to better empathize with their situation and make their needs our own. We internalize externalities. In doing this we see ourselves as part of the larger system and are therefore willing to wait for the greater benefit that accrues to the larger system. The simplest way to do this is through dialogue, simple conversation. Our jobs as practitioners is to facilitate the conversation. The rest will emerge.