Once upon a time, an engineering consulting company hit a speed bump. Revenue was falling so fast that staff attrition couldn't keep up with the contraction. So management leapt into action, declaring a salary freeze.
But there was a carrot — if the company met its revenue target, everyone would get a bonus. In consulting, revenue equates roughly to billable hours, so the engineers did their best to help Marketing find business. Trouble was, there wasn't enough business.
With less than a month to go before the CEO's annual state-of-the-company address, Management announced a buy-out for people close to retirement. After his address, in Q&A, a bright engineer asked him, "Since so many are taking the buy-out, we won't have enough billable hours left to meet the bonus target. Does this mean there's no bonus?"
Jacques, the CEO, was blind-sided, but he was no dummy. He knew that if he said yes, he could expect an exodus of his best engineers. So he replied, "I'll have to get back to you on that." Back in the calm of his office, Jacques and his team worked out the right answer: "We'll lower the bonus target proportionately."
So they issued a memo, and everyone relaxed some. But Jacques had been embarrassed at a time when he needed to show strong leadership. He probably wasn't ready for that question because it involved an intersection of two unrelated policies. Since there are so many policies in any company of even moderate size, the number of such intersections is large, and it's difficult to anticipate which intersections cause problems.
The executive team goofed, as most do now and then. Yet, even though we test our products thoroughly, we rarely test organizational changes before we "roll them out." It's a high-risk practice, because we end up testing our change plans using the company itself. To limit that risk, we must discover defects in change efforts before we execute them, and one approach that works well is the simulation.
Even though we test
our products thoroughly,
we rarely test organizational
changes before we
"roll them out"Simulations — sometimes called "games" — parallel reality. They're especially valuable when the event being simulated is high-risk. That's why the military runs war games, and why US presidential candidates run mock debates.
Simulations do require planning to ensure that they're faithful to reality, and you do need a skilled facilitator. But you can use simulations to test almost any organizational effort — process designs, project plans, test plans, reorganizations, mergers and acquisitions, marriage proposals — anything. Simulations can be off-site and small-scale, and you can use stand-ins for the actual players if security is an issue.
Is your organization embroiled in Change? Are you managing a change effort that faces rampant cynicism, passive non-cooperation, or maybe even outright revolt? Read 101 Tips for Managing Change to learn how to survive, how to plan and how to execute change efforts to inspire real, passionate support. Order Now!
Your comments are welcomeWould you like to see your comments posted here? rbrenFlVFdrXNmsdCpBUKner@ChacJyYeJiKlBhMNTuMzoCanyon.comSend me your comments by email, or by Web form.
About Point Lookout
Thank you for reading this article. I hope you enjoyed it and found it useful, and that you'll consider recommending it to a friend.
Support Point Lookout by joining the Friends of Point Lookout, as an individual or as an organization.
Do you face a complex interpersonal situation? Send it in, anonymously if you like, and I'll give you my two cents.
More articles on Organizational Change:
- Don't Rebuild the Chrysler Building
- When we undertake change, we're usually surprised at the effort and cost required. Much of this effort
and cost is necessary because of the nature of the processes we're changing. What can we do differently
to make change easier in the future?
- Change How You Change
- In the past two years, your life has probably changed. Do you commute over the same route you did two
years ago? Same transportation? Same job? Same company? Same industry? Change is all around, and you're
probably pretty skilled at it. You can become even more skilled if you change how you change.
- Patching Up the Cracks
- When things repeatedly "fall through the cracks," we're not doing the best we can. How can
we deal with the problem of repeatedly failing to do what we need to do? How can we patch up the cracks?
- The Restructuring-Fear Cycle: II
- When enterprises restructure, reorganize, downsize, outsource, lay off, or make other organizational
adjustments, they usually focus on financial health. Here's Part II of an exploration of how the fear
induced by these changes can lead to the need for further restructuring.
- The Passion-Professionalism Paradox
- Changing the direction of a group or a company requires passion and professionalism, two attributes
often in tension. Here's one possible way to resolve that tension.
See also Organizational Change for more related articles.
Forthcoming issues of Point Lookout
- Coming July 26: Strategic Waiting
- Time can be a tool. Letting time pass can be a strategy for resolving problems or getting out of tight places. Waiting is an often-overlooked strategic option. Available here and by RSS on July 26.
- And on August 2: Linear Thinking Bias
- When assessing the validity of problem solutions, we regard them as more valid if their discovery stories are logical, than we would if they're less than logical. This can lead to erroneous assessments, because the discovery story is not the solution. Available here and by RSS on August 2.
I offer email and telephone coaching at both corporate and individual rates. Contact Rick for details at rbrenpBfzHEaaIJyZtjjYner@ChacOWtrvpYuEHXaTmfgoCanyon.com or (617) 491-6289, or toll-free in the continental US at (866) 378-5470.
Get the ebook!
Past issues of Point Lookout are available in six ebooks:
- Get 2001-2 in Geese Don't Land on Twigs (PDF, USD 11.95)
- Get 2003-4 in Why Dogs Wag (PDF, USD 11.95)
- Get 2005-6 in Loopy Things We Do (PDF, USD 11.95)
- Get 2007-8 in Things We Believe That Maybe Aren't So True (PDF, USD 11.95)
- Get 2009-10 in The Questions Not Asked (PDF, USD 11.95)
- Get all of the first twelve years (2001-2012) in The Collected Issues of Point Lookout (PDF, USD 28.99)
Are you a writer, editor or publisher on deadline? Are you looking for an article that will get people talking and get compliments flying your way? You can have 500 words in your inbox in one hour. License any article from this Web site. More info
- Creating High Performance Virtual Teams
- Many people experience virtual teams as awkward, slow, and sometimes
frustrating. Even when most team members hail from the same nation or culture, and even when they all
speak the same language, geographic dispersion or the presence of employees from multiple enterprises
is often enough to exclude all possibility of high performance. The problem is that we lead, manage,
and support virtual teams in ways that are too much like the way we lead, manage, and support co-located
teams. In this program, Rick Brenner shows you how to change your approach to leading, managing, and
supporting virtual teams to achieve high performance using Simons' Four Spans model of high performance.
Read more about this program. Here's a date for this
- Baci Grill, 134 Berlin
Road, Berlin, CT 06416: September 19,
Monthly Meeting, Southern New England Chapter of the Project Management Institute. Register now.
- Baci Grill, 134 Berlin Road, Berlin, CT 06416: September 19, Monthly Meeting, Southern New England Chapter of the Project Management Institute. Register now.
- The Race to the South Pole: Ten Lessons for Project Managers
- On 14 December 1911, four men led by Roald
Amundsen reached the South Pole. Thirty-five days later, Robert F. Scott and four others followed. Amundsen
had won the race to the pole. Amundsen's party returned to base on 26 January 1912. Scott's party perished.
As historical drama, why this happened is interesting enough, but to organizational leaders, business
analysts, project sponsors, and project managers, the story is fascinating. Lessons abound. Read
more about this program. Here's a date for this program:
- CTCPA, 716 Brook Street,
Rocky Hill, CT 06067: September 20,
Full-day Workshop, Southern New England Chapter of the Project Management Institute. Register now.
- CTCPA, 716 Brook Street, Rocky Hill, CT 06067: September 20, Full-day Workshop, Southern New England Chapter of the Project Management Institute. Register now.
- The Power Affect: How We Express Our Personal Power
- Many people who possess real organizational power have a characteristic demeanor. It's the way they project their presence. I call this the power affect. Some people — call them power pretenders — adopt the power affect well before they attain significant organizational power. Unfortunately for their colleagues, and for their organizations, power pretenders can attain organizational power out of proportion to their merit or abilities. Understanding the power affect is therefore important for anyone who aims to attain power, or anyone who works with power pretenders. Read more about this program.
- Your stuff is brilliant! Thank you!
- You and Scott Adams both secretly work here, right?
- I really enjoy my weekly newsletters. I appreciate the quick read.
- A sort of Dr. Phil for Management!
- …extremely accurate, inspiring and applicable to day-to-day … invaluable.