Monday, December 17, 2012
Shooting the messenger
Monday, December 10, 2012
Too big to fail
Monday, November 12, 2012
Travails of my Aunt
Thursday, November 8, 2012
Who CARES wins?
Tuesday, October 2, 2012
Left, right, left, right
Monday, September 24, 2012
Sorry is the easiest word to say
Monday, July 2, 2012
Time to hit pause
Wednesday, June 20, 2012
Time to rethink communications
Tuesday, May 29, 2012
Working from home
Thursday, April 19, 2012
The entrepreneurial employee
Gore Vidal once famously said that each time one of his friends succeeds a little part of him dies. Recently I saw an article in the Times about a business run by an old friend of mine which gave me the opposite feeling. In ten years he has built a hugely successful business that not only employs a couple of handfuls of bright and brilliant people but also that wins awards for being amongst the best places to work in the UK. Not bad for someone who was forced into starting out on his own and without, as he said at the time, a single entrepreneurial gene in his body. But he’s done it by dint of hard work, luck (both good and bad) and many ups and downs. The whole thing made me think: why do some people become entrepreneurs when others don’t?
I once heard a very senior board director telling a journalist that it was “impossible to be entrepreneurial in a regulated company.” I remember thinking at the time what a load of tosh that statement was (something borne out by legions of subsequent leaders of that same company proving him to be spectacularly wrong.) However, even in unregulated companies it can often prove difficult to engender a free-spirited environment. I think that there are two reasons why that is the case:
The first is the way that organisations tend to be run. Hierarchy, not-invented-here syndrome, silo mentalities and a process-driven way of working can all lead to a repetitious and, potentially, stultifying environment. Innovation, a key part of entrepreneurial behaviour, is often strangled at birth by endless procurement processes or death by committee. Those people who do exhibit entrepreneurial attributes tend to be iconoclastic mould-breakers who spend their time fighting against the system. Often they don’t last long, either upping sticks to greener pastures or ending up tired and broken-spirited.
The second reason is the prevailing view that entrepreneurs, like leaders, are born. Plenty of books have been written by and about the Bransons and Sugars of the world. Common mythology seems to indicate that true entrepreneurs started early, usually involving some dubious playground activity, and shunned university in favour of an early start in the market. But it is plainly not the whole story. Thousands of shopkeepers and small businesses up and down the country are testiment to the fact that it is a mixture of opportunity and necessity that creates entrepreneurs. For sure, some people are temporarily less suited to the rigidity of working in structured organisations but there are plenty of career options for them that don’t require them to start their own business.
Many organisations suffer from having employees who, despite elements of variable pay, churn out the same sort of work year in year out. Institutional capture and a financially secure environment combine to create workforces where risk-taking is rare. So the real question is how can more people be encouraged to take more control of their working lives and demonstrate a more entrepreneurial attitude within organisations. The answer for me lies in fundamentally changing the way that businesses are run, ditching the outdated command and control attitudes and introducing flatter, looser, and non-hierarchical approaches. Encouraging three-way communications and engaging people in changing the way they work will lead to the creation of an entrepreneurial mindset that will challenge legacy systems and attitudes. And all this needs to be supported with a pay and benefits package that rewards risk-taking and has a more equitable approach to sharing in success.
It is curious how so many organisations that were founded by spirited entrepreneurs have found themselves stuck in the rut of big company syndrome. So perhaps the solution is to recognise that whilst entrepreneurs aren’t born, they do require a less staid environment in order to flourish. After all, it’s neither nature nor nurture. It’s a combination of both.
Tuesday, March 13, 2012
Dedicated followers of fashion
The other day I was talking to someone going through the process of moving into an open plan office. He worked for a very traditional organisation (he is a lawyer) and the transition for him and his team was clearly proving difficult. It made me wonder whether open-plan offices, like outsourcing, was a business idea that will soon start to become unfashionable.
Outsourcing is a classic case of the law of unintended consequences. The idea is that moving transactional and commoditised services to people who specialise in those things will reduce costs and increase productivity. Nice idea, but in practice it often takes far more effort to manage the interface than it saves. There are also other issues: the more you dilute the business operations the more you dilute the corporate culture. And, of course, if everyone is trying to be strategic then who is left minding the shop.
The “fad” of open-plan is another example of starting in the right place for the right reasons but coming to the wrong answer. Offices were seen as a symbol of the old way of working. They represented a sense of status and hierarchy (I can remember the days when offices were carefully measured to ensure they reflected the relevant grade). They were also seen as encouraging a silo mentality and of perpetuating inefficiencies. After all, how much work actually went on behind closed doors, especially in those post prandial hours?
Open-plan offices are seen as being inclusive and meritocratic, and of providing a more creative and transparent environment that allows the whole team to be together. But do they actually work? Open-plan offices can also be a pretty difficult place to work. Often they are incredibly noisy and distracting. Noise control legislation was originally introduced to protect factory workers. Current regulations set the bar at 85 decibels and it would be interesting to know how many open-plan offices get close to that. There is the constant whirring of photocopiers and printers, and “bing-bong, lift going up” every few minutes. The constant ringing of phones (and the unanswered mobile left on a desk). There are noisy co-workers: the ones with piercing voices that can be heard across a whole room. And what about the “informal meeting” when someone starts chatting to the person next to you. All very noisy, very distracting and, probably, not particularly efficient.
Recently some people have started to focus on the importance of introverts in business. It probably comes as no surprise that whereas extroverts love brainstorming, introverts hate them. Whatever technique is applied, the end result merely forces introverts further into their shell. Which is a shame, for introverts tend to make up a majority of the gifted population. They tend to have the best thought-through and most practical ideas. And where do they have their best ideas? Not in a public brainstorm but on their own at their desk. In fact, at their desk with a bit of peace and quiet. Making a bunch of detail-focused introverts leave their offices and placing them in a bear-pit, extrovert-friendly, open-plan office tends to make them feel uncomfortable, increasing stress and decreasing productivity.
So why are these lawyers only now getting around to the idea of open plan? This is where the diffusion model comes in. New things start with innovators, the people who have the original idea. They are quickly followed by the early adopters. After them come the mass market early majority. At this stage it’s less important whether the new idea works but more that everyone else is doing it. This “safety in numbers” approach drives the next group, the late adopters, followed finally by the skeptics. However, what this bell curve model also tells us is that once the critical mass has moved in the early adopters move out and on to the next big thing.
I wonder how long it will be before once again someone starts to extoll the virtues of the office. In fact, I might just close my door, forward my phone calls, put my feet on the desk and take a few moments to ponder that very issue.