The Several Habits of Highly Effective Organizations

Constancy of purpose, to take a leaf from Dr Edward Deming, is one of the prime contributory factors to business success. It is a commitment to the long-term and connected with a continual improvement ethos. In order for any organization to become highly effective at sustaining its constancy of purpose it has to develop several habits.

The first of these habits is Strategy. Strategic planning and on-going reference to strategy is central to mobilizing people, empowering them and maintaining a greater level of control over results. Strategy as a habit is akin to taking regular compass bearings to ensure the venture is heading in the right direction. Companies should strive to become accomplished at strategic thinking as far down their organization as possible. The greater strategic awareness, the more attention to detail is paid. Detail is competitive edge.

In order for Strategy to be effectively put into action, a second critical habit needs to be developed. Culture. The way people think, communicate and act will also determine effectiveness. If Culture is a conscious habit, then there will be a consistency of approach throughout a business that reflects a common set of values and beliefs. It makes for the possibility of an environment in which people can excel. A great Culture is the product of great leadership.

If ‘Change is the only constant’ (Heraclitus), then it should be embraced. Change is another habit of highly effective organizations. They decide for Change rather than having to always react to it. It becomes a habit coupled with regular reference to strategy and the ability to move quickly because of a strong culture. Change, if it is a habit, is seen as positive and quickly adopted. Standing still in business is the same as dying.

Highly effective organizations are in the habit of referencing Principles. A business that is guided by Principles is able to make quicker, more confident decisions. A decision is a pivot between the past and the future. Strong, confident decision making is a reflection of clear strategic focus and translates into more committed action. Recognized Principles communicate integrity and unite teams. A Principle is only a Principle until it costs you something.

When things go wrong highly effective organizations listen. Real listening is linked to Openness. When a company sees success and failure as two ends of

the same stick, everything is simply information. Not only does openness allow focus to quickly move to solutions, it reflects confidence and security in its ability to cope with a setback. A blame culture cannot exist when the habit is to seek to understand, make a new decision and Govern Change. An organization is able to learn. Openness is the gateway to creativity and innovation.

Future Orientation is at the core of any effective enterprise. Habitually focusing on the future prompts the question ‘How do we move forward?’ and is action oriented. Future orientation is a reflection of a strategic organization with a culture and principles that propel it forwards. When a business is Future Oriented it will use time better and achieve more. Turn hope into expectation.

All organizational habits are characterized, exemplified and adopted by people. One more habit is finding, developing and retaining the Right People. Highly effective organizations are uncompromising in their recruitment. It is more about cultural fit than technical fit. They create a learning environment and encourage involvement. Training is a commitment to the people and appraisal is looked forward to. Management is rewarded and feedback is on a regular basis. People work without fear. It is people who deliver an organization’s results.


It is possible to build these habits deliberately, quickly and easily into any organization. Mitchell Phoenix has been transforming businesses with core business strengths for over twenty years.

Earth Hour 28th March 8.30-9.30pm

It is 'Earth Hour' this Saturday 28 March. The whole world is being encouraged to switch off all its lights from 8.30 to 9.30pm in an effort to encourage awareness over Global Warming. 2,848 cities, towns and municipalities in 84 countries have signed up so far.

When you create common goals for good its easy for people to sign up to them. Business take note.

Will you be switching off this Saturday?

Visions Are a Load of Nonsense

We are in an unprecedented period in world economic history. Banks have failed, companies have failed, the system has failed. It is being propped up with a $900 billion finger in the dyke and a prayer that it will hold. We've moved from Worldcom and Enron, who illegally pillaged the system, to the legal marauders who have now brought us to our knees.

Where did it all go wrong? Here is an example of why we are in the pickle we are in.

"General Motor’s vision is to be the world leader in transportation products and related services. We will earn our customers’ enthusiasm through continuous improvement driven by the integrity, teamwork, and innovation
of GM people."

Vision. What a crock that is! It is supposed to be the basis of strategy and here we have an example from one of the great businesses of the age demonstrating that vision in business is not understood.

The statement is mostly about them. What do we, the customer, get out of it? Enthusiasm! Look at where the vision has taken them...to the brink. You could also argue that not many people in GM were aware of the vision judging by their track record.

A vision like GMs is as good as useless to a business. Their vision is a goal with a bit of 'mission' thrown in. There is nothing in the statement to show what their contribution is going to be. A vision is not what can the world do for you, it is what can you do for the world.

Interestingly, as a result of the economic crisis and the car industries' begging bowl being held out that a truer vision is emerging in relation to greener policies. A vision should help business get what it wants, only make sure that there is also a contribution in return.

AIG Not To Blame

The furore snowballs as the insurance giant AIG pays out $165 million in bonuses to senior executives. Even President Obama has stepped in. So what's all the fuss about? AIG is only continuing in the way that it and many other financial organizations have been used to. They haven't had to take any responsibility for failure and the bailout money simply stakes them to have another go.

If AIG are not to blame for acting as they have, where does it lie? The fault lies with poor regulation and a lack of legislation that is connected with the overall purpose of management which is "To Secure the Future". The idea of a 'going concern' has been lost in pursuit of self enrichment and the pressure of short-termism.

An economic failure of this magnitude is a direct result of no strategic alignment of business with society. Who is to blame. We all are. We allowed it to happen and were happy as gambler on a hot streak at the casino while we were winning. Trouble is we refused to believe that we could lose.

Lack of Strategy not Leadership to Blame

Kwai Yu, founder of Leaders Cafe Foundation posted this on our Linkedin Group today....

"The $900 billion leadership training crisis - who's problem is it?

$900 billion is the conservatively estimated global spend on leadership training/education since the start of the millenium - i.e. 2000 - 2008. Today, the cries of "lack of leadership" is louder than ever and occupy more column inches in newspapers and business publications.

If a student leaves their education without learning anything ... you can blame it on the student, the teacher or the curriculum. When you have isolated cases of students leaving without learning - okay, you can blame it on the student. But, when you have spent $900 billion .... isn't it time we question the teachers and the curriculum?"

This was our reply....

That is a staggering figure and when I searched for more data all I came up with was the $900 billion bailout. Let’s hope it is more successful.

Measuring the impact of ‘leadership’ has always been a challenge, especially when soft skills are taken into account. It’s a bit like the old saying about advertising, “ only 50% of it works…trouble is I don’t know which 50%”. The Kirkpatrick Model of Training Evaluation is the best method I’ve come across, http://www.mitchellphoenix.com/readandlisten/Kirkpatrick_and_Mitchell_Phoenix.pdf

Evaluating leadership and management training requires effort and needs to feed into business planning, appraisal processes and recruitment. There is also the tendency to lump all sorts of soft skills training under the banner of Leadership, making true judgments over efficacy difficult. There is also a distinct link between leadership and management that needs to be addressed. Perhaps the $900 billion was well spent with not enough emphasis on management skills. I strongly sense that it is lack of strategy rather than lack of leadership that is the problem. There are plenty of dynamic, committed leaders out there who come unstuck by strategy, which is another skill that needs learning.

We also need to consider at what levels the budget is being spent. Most of it will be going to the junior/middle ranks who are then perceived to have been ‘trained’ as leaders. They receive no more input on their way to the top where they then divert budget back down the organization “because they need it more than I do”. Senior executives also have the “I’ve done that” attitude and the experience colors whether they value leadership training or not. What they fail to realize is that they were trained for then and not for now. The different demands on leaders at the top of the organization need to be emphasized and learned.

Leadership is seen as separate from strategy when in fact it should be part of strategy. If “lack of leadership’” is so often the cry why is leadership not a strategic imperative? My view is that most leadership training is not directly connected with the overall success of the business and that its power to deliver secure results is not truly understood.

When organizations understand the power of visible leadership day to day at all levels, sharing common values, principles and language they will reap the rewards. This means working on the culture of the business. The culture of an organization is a reflection of the strength of leadership.

It is not “lack of leadership”, it is lack of strategy.

Management Fads Fade Fast

How is it that management fads come and go so quickly? See what Mitchell Phoenix have to say in their latest press release. Click here

Computer says "No"

Mitchell Phoenix's latest press release draws attention to the growing need to control your business processes rather than let them control you. Read more here http://www.journalism.co.uk/66/articles/533774.php

Confidence Tricks - Boosting your Confidence in Presentations

How is it that normally secure, confident, outgoing people can feel so nervous about giving a presentation? A recent survey of the top 10 things people most dreaded showed Public Speaking as top of the list closely followed by Death! Presumably if you were asked to give a eulogy at a funeral you would prefer to be in the ‘box’.

It is likely, as a manager, that you will be asked to present in some form or other to an audience. It may be something informal such as a “Good Luck and Thank-you” speech to a departing employee or a full-on presentation to the board. So what is it that prevents people from being themselves when it comes to public speaking?

The main factor is ‘stage-fright’, when you move centre stage and all the attention is on you, and you freeze. You are like a rabbit caught in the headlights of an oncoming vehicle at night. You are powerless; your legs feel like rubber; the room starts to spin, your throat constricts and your mouth is drier than the Gobi Desert. Don’t worry, it’s easily fixed. How? I hear you shout.

The simple answer is do lots of presentations since each time we survive the experience we know that we can do it and we know more and more what to expect. One of the biggest causes of feeling nervous is that we are unfamiliar with something that demands a level of accomplishment. We also tend to get nervous in new surroundings. This is completely natural. If the thought of giving lots of presentations to overcome our fear of public speaking isn’t practical or just stupid, then here are a few exercises to try out before and during a presentation.

Dress the Part

This is easy advice to follow. Really put the effort in to look good. If you know you look good, you will feel good. It is part of getting ready for something and showing commitment to it. “I’m doing this and I’m going to look great!”

Raise your Posture

Another simple tip to put into practice. Try sitting up straighter right now. You will feel yourself taking in a breath and sense that you are in a stronger position. When presenting feel yourself stretching to your full height (not on tiptoes!) and keep that posture throughout. You will feel stronger and more powerful as you speak.

Create an Anchor

An anchor is an association that you create between a time that you felt completely confident, completely comfortable and in control and a physical gesture. Cast your mind back to one of those times until the memory starts to bring back the confidence you felt and link it immediately to a gesture such as squeezing your thumb and forefinger together or gently pinching the skin on the back of your hand. Then, when you want to bring back that feeling of confidence, simply make the gesture.

Don’t Give a Hoot

When we care too much about something, raise its level of importance and weigh ourselves down with the expectations of others, then our ability to ‘perform’ can be severely effected. The trick here is to not care. That doesn’t mean to say that we will do a bad job, it means if something goes wrong treat it as nothing, shrug it off. “I can’t remember my next line”, so what? “My hands are shaking” so what? “The audience looks bored”, so what? Care less, perform better.

Become like Walter Mitty

“The Secret Life of Walter Mitty” was a short story written by James Thurber. Walter Mitty was a meek and mild-mannered man who as he day-dreamed could suddenly become anything he wanted to be; a fearless Naval commander steering his ship through a storm; a brilliant surgeon saving a life; a hero foregoing a blindfold in front of a firing squad. We can do the same. Pretend to be someone you admire and act like them.


Prepare your Opening

If you are going to freeze, it will probably be right at the start. Preparation is our biggest ally in presenting. If you do nothing else, prepare, prepare, prepare. By preparing especially well for your introduction you create momentum for the rest of your presentation. If you forget lines later on, don’t worry; the audience doesn’t know what you are going to say so they won’t notice!

Inspire by iPod

Listening to music that inspires you on the way to giving a presentation can also strengthen resolve. A lot of sports teams use this idea to send them out on the field full of confidence, ready for action. ‘I will Survive” by Gloria Gaynor; ‘We are the Champions’ by Queen; ‘The Theme from the Magnificent Seven’ and the ‘Theme from Rocky’; ‘Ace of Spades’ by Motorhead and ‘My Way’ by Ol’ Blue Eyes are some suggestions!

You can find breathing exercises to do; you can imagine the audience in their underwear as well as a host of other ideas to help your confidence. Ultimately it will be your belief, passion and purpose that win the day. Just standing up front shows the courage you have and be sure that the audience is on your side. They much prefer to be where they are than where you are.

Mitchell Phoenix inspires leaders, managers and businesses with the confidence and ideas to make a difference. We equip people with the thinking and the tools to measurably improve personal and corporate performance. We help turn strategy into action, objectives into results.

Click HERE to visit our website

The Emporor’s New Clothes and Management Theory

Andrew Billen of the Times said in this article yesterday http://women.timesonline.co.uk/tol/life_and_style/women/the_way_we_live/article5860232.ece
that management theory has been shown up as modern day snake oil. In fact, he has taken a sawn off shotgun to it, citing various examples of how theory strips people and organizations of good old common sense. He has a point.

When you impose systems on people that are a substitute for management or even a compensation for lack of management, eventually there will be a collision between man and 'machine'. Systems and theories remove the decision-making from organizations since a process has already been decided. All that's needed is for the guidelines to be followed. When the system fails it is because people have let it fail either consciously or sub-consciously.

Billen is essentially pointing at management theory and calling it 'naked' concluding that there is nothing to it. About 15 years ago I was invited to a round table discussion at the London School of Economics between business leaders and academics. The question under discussion was "What does business need from academia to help it evolve.?" You won't be surprised to hear that nothing new emerged. In fact if you really examine the evolution of management theory you will see that the same ideas have been introduced repeatedly, only renamed.

Ultimately, there is no substitute for people and timeless principles of management that are as relevant now as they will be in the future. When you have a real strategy you will see immediately the reason for poor outcomes and systems are designed to support people rather compensate for them. People make theories and systems work not the other way around.

Mitchell Phoenix Newsletter February '09

Mitchell Phoenix Newsletter 02/09

Publish at Scribd or explore others: Newsletters Periodicals & Report coaching creativity

Mitchell Phoenix Newsletter December '08

Publish at Scribd or explore others: Periodicals & Report coaching creativity

Do Managers Need Training?

It strikes me that the answer is no, judging by the amount of management training that is actually undertaken. £38 billion was spent on training in the UK in 2007, the majority of it in technical skills areas. You need people who can drive a forklift truck; you need someone who can put a spreadsheet together; you need an individual who can write a computer program.

It seems that management ability is a natural resource that springs to the fore with a promotion. There is rank, power and responsibility. What more do you need? It's common sense!

You know what's got to be done, by when and by whom. Easy.

Management training is not valued highly enough to figure in the budget. For one thing, it's hard to measure return on investment. Most of it doesn't work and the people running the courses just get you to do group exercises, put on DVDs to watch and read somebody else's powerpoint presentation. Another big risk is that people leave if you train them.

To think in the way described above is, of course, mistaken. It is false economy to have managers who do not have sufficient skills to plan, communicate and motivate others. Poor management is linked to high staff turnover and absenteeism. It can be a factor in long-term sickness and company morale. Managers have a huge influence over an organization's reputation in the marketplace.

Let us me know your views on whether or not managers are sufficiently well trained and whether quality of management effects the bottom line.

Welcome to Mitchell Phoenix 'Live'

I have finally been dragged into the 21st century - I have a blog! Well, to be precise Mitchell Phoenix have a blog. You can look forward to hearing views, ideas and opionions on all matters related to leadership and management in business. We welcome comments and discussion on the posts presented.