Robert Kaplan & David Norton: Balanced Scorecard

Take two electrical engineers. Put one into a management consulting role and the other into academia. Mix them up, and what do you get?

Yes, it is a trick question. Robert Kaplan and David Norton developed a powerful business strategy and performance measurement tool. Indeed, it’s a tool all managers should be aware of and understand: The Balanced Scorecard.

Robert Kaplan & David Norton - Balanced Scorecard

Robert Kaplan & David Norton – Balanced Scorecard

Robert Kaplan

Robert Kaplan was born in 1940 and studied Electrical Engineering at MIT, gaining a BS and then an MS, before moving to Cornell, to take a PhD in Operations research.

He started his academic career directly afterwards, moving to Carnegie Mellon’s Tepper School of Business in 1968. He remained there until 1983, serving as Dean of the school from 1977.

In 1984, Kaplan moved to the Harvard Business School, to take up the chair as Marvin Bower Professor of Leadership Development, which he now holds emeritus.

In 1987, Kaplan, along with William Bruns, first defined Activity Based Costing. It was to become a widely used methodology for gaining control of strategic revenue expenditure in industry. Ironically, it only started to lose ground when a new, more broadly-based approach started to gain popularity.

That approach was the Balanced Scorecard. And this was developed by Kaplan, along with David Norton. They first published their idea in a seminal paper in the Harvard Business Review, in 1992: ‘The Balanced Scorecard—Measures that Drive Performance‘.

David Norton

David Norton was born in 1941. He too studied Electrical Engineering, at Worcester Polytechnic Institute. He moved to the Florida Institute of Technology for an MS in Operations Research, and then to Florida State University for an MBA. He also gained a PhD from Harvard Business School.

Norton’s career was in consultancy, cofounding Nolan Norton & Co in 1975, and serving as president until it was acquired in 1987 by KPMG Peat Marwick. He became a partner, but shortly after the publication of Balanced Scorecard—Measures that Drive Performance‘ in 1992, he founded a new business to promote consulting with the Balanced Scorecard at its heart.

The Balanced Scorecard

We’ve covered the Balanced Scorecard before. But let’s revisit it in some more detail.The idea supposedly came from a conversation David Norton had on a golf course with IBM Executive, John Thompson. Thompson reportedly observed that he needed a scorecard, like the one they used in golf, for running his company.

In a variant metaphor, Kaplan and Norton suggest that it would be an unsafe airplane that had just one gauge in its cockpit. So the idea was born for a scorecard that looks at the business from multiple perspectives. Initially, it is four:

  1. Financial Perspective
  2. Customer Perspective
  3. Internal Business Perspective
  4. Organisational capacity and learning Perspective

Together, the key measures (or KPIs – Key Performance Indicators) under the headings articulate the organisation’s strategic priorities.

Kaplan & Norton - The Balanced Scorecard

Kaplan & Norton – The Balanced Scorecard

The Origins of the Balanced Scorecard

The original idea, however, tracks back to Art Schneiderman in 1987. He went on to work on a research project with Kaplan, and Norton’s firm Nolan Norton. This collaboration led to the publication by Kaplan and Norton in 1992, and their subsequent 1996 book, The Balanced Scorecard: Translating Strategy into Action. It’s now out of print and available only second hand or in digital editions.

One can’t help wondering what happened to Schneiderman – the Pete Best (5th Beetle) of the corporate strategy world. Well, it turns out he’s an independent consultant, and he gives his own history of the first balanced scorecard.

Implementing the Balanced Scorecard

The broad approach to implementing a balanced scorecard is:

  1. Make sure you have a clear vision and strategy
  2. Find the performance categories that best link your vision and strategy to success (Here are some different examples: service standards, thought leadership, marketing activity, performance management, internal morale)
  3. For each perspective, define a small number of objectives that support your vision and strategy
  4. Develop standards or ways to measure progress and build simple systems to monitor and communicate performance against each perspective
  5. Spread the word throughout your organisation that these measures will drive your reward and promotion mechanisms
  6. Monitor performance and compare it with your objectives
  7. Take action to bring performance in line with your objectives

The Legacy of the Balanced Scorecard

As a tool for controlling a business, the balanced scorecard tracks back to Taylorist Scientific Management. However, its flexibility allows managers to monitor and therefore control the measures they choose.

As a result, one of its most interesting descendants is John Elkington’s Triple Bottom Line.

Spencer Johnson: Cheesy Parables

The One Minute Manager series is a landmark in book publishing and popular management education. We’ve covered it already in our assessment of one of its two authors, Ken Blanchard.

But the series began with a book co-authored by two equally prolific thinkers and writers, and it’s time to redress the balance. This article started life with the title Ken Blanchard and Spencer Johnson: One Minute Manager.

Ken Blanchard & Spencer Johnson

Ken Blanchard & Spencer Johnson

But that just won’t do.

As author of books with sales claimed at over 50 million copies, Spencer Johnson deserves his own article in full, so here it is.

Spencer Johnson

Spencer Johnson

Spencer Johnson

Spencer Johnson was born in 1940, in South Dakota. His undergraduate degree was at the University of Southern California, where he got his BA degree in Psychology in1963 (avgy). He then went on to study medicine in Dublin, at the Royal College of Surgeons in Ireland.

From there, he worked at the Mayo Clinic and Harvard Medical School, before joining Medtronic as their Director of Communications.

Through the 1970s, Johnson was writing a series of books called ‘Value Tales’. These drew lessons from famous lives, like Elizabeth Fry, Louis Pasteur, and the Mayo brothers, who founded the Mayo Clinic, where Johnson had worked.

Johnson and Blanchard began their collaboration with The One Minute Manager, published in1982. This was to lead to both of them writing a clutch of other titles, sometimes with other co-authors.

However, Johnson’s other biggest sellers were not One Minute books, but:

For managers, it is Who Moved My Cheese that you will want to be aware of.

Who Moved My Cheese?

Like many of Johnson’s books, Who Moved My Cheese is written as a parable: a simple tale that encapsulates the message Johnson wants to communicate.

In this case, it is about the choice to fight or embrace change. And the tale concerns four characters, who respond differently to finding their cheese has been moved.

In Johnson’s parable, cheese represents what we want in life – or perhaps what we think we want. Because two characters, ‘littlepeople’ called Hem and Haw, turn up at the cheese station every morning, much as many bigpeople turn up to work.

Hem and Haw are resistant to change, fearing its impacts, and only learn how to adapt when the benefits are proven.

Their counterparts are two mice called Sniff and Scurry, who sniff out opportunities and scurry into action when they find them.

It’s a short book that you can read quickly, or absorb slowly.

Yes, to some readers it is ‘cheesy’ in the sense of corny, homey, and lacking in sophistication. But my opinion is that it is well worth the time to read and absorb it. Like all parables, the wrapper is far less important than the message.

The messages in Who Moved My Cheese

Who Moved My Cheese has simple but relevant messages for organisational life:

  • Change happens – all the time. Tomorrow, your cheese won’t be where it was yesterday.
  • You can either anticipate and engage with this, or you can fight it. But the faster you adapt to the change, the sooner you’ll feel comfortable.
  • Embracing and enjoying change will be the best way to thrive

Summing Up

The simplicity of style coupled with the precision of its message has led to many abuses. Because in organisations where change occurs, there is often resistance. Managers promoting the change see that resistance as hem and haw behaviours. Who Moved My Cheese is too often seen as a simple antidote to a complex problem of resistance.

At its worst, a client once told me of a manager who, exasperated by the resistant behaviour of a team member, simply left a copy of Cheese on their desk. I don’t know how well that worked.

The best time to read and understand Cheese is not in the throes of change. Read it when you are comfortable, or on the edge of change. And take the time to think about it carefully. It is worth the effort.

James Kouzes and Barry Posner: Leadership Challenge

What is it that makes an exceptional leader?

This question has been asked time and again through the centuries. And it has been an enduring staple of managerial and business school education through the twentieth and early twenty first centuries.

So is it a surprise when a simple model, articulately expressed, leads to a 2 million-copy best-seller?

Perhaps not. But what makes James Kouzes’ and Barry Posner’s Leadership Challenge remarkable, is its longevity. In the light of the constant flow of new leadership ideas, a model that sells as well after thirty years, must have something valuable to offer.

James Kouzes and Barry Posner - Leadership Challenge

James Kouzes and Barry Posner – Leadership Challenge

James Kouzes

James (Jim) Kouzes was born. We know that. But there’s little biographical detail available to the casual researcher. He attended John F Kennedy’s inauguration as part of an Eagle Scout honour guard and was inspired by Kennedy’s ‘ask not what your country can do for you…’ sentiment.

So, following his graduation in 1967, with a BA in Political Science from Michigan State University, Kouzes joined the Peace Corps. He served for two years. On his return, he started a career in training and development, giving seminars for Community Action Agency staff and volunteers.

In 1972, Kouzes founded the Joint Center for Human Services Development at San Jose State University. He served there and at the School of Social Work, University of Texas, until 1980.

In 1981, he became Director of the Executive Development Centre at Santa Clara University, where he met Barry Posner. In 1988, he left, to become a Director at TPG/Learning Systems for 10 years, moving to become CEO and Chairman of the Tom Peters Company from 1998 to 2000.

Barry Posner

Barry Posner was born in 1949, and graduated with a BA in Political Science from the University of California, Santa Barbara in 1970. He gained an MA in public Administration in 1972, from Ohio State University, and a PhD in Organisational Behaviour and Administrative Theory from The university of Massachusetts, Amherst in 1976.

From there, Posner joined the faculty of Santa Clara University, where he remains today, as Accolti Endowed Professor of Leadership, at the Leavey School of Business.

The Leadership Challenge

Working together to develop a talk on leadership, Kouzes and Posner developed their first surveys in 1983. These asked leaders what they were doing when they were at their best. In documenting the practices of exemplary leadership, they have to date surveyed over 75,000 respondents.

The burden of their work is the Leadership Challenges model, which articulates five practices. This has been documented in books, articles, and development tools like card-sets and 360-degree feedback surveys.

The original Leadership Challenge book was published in 1987, and the current sixth edition continues to be a big seller.

The Five Practices of Exemplary Leaders

Model the Way

Model the Way Leaders establish and work to a set of principles for how people should be treated. They create standards for how to do things, and set an example for others to follow. They recognise how bureaucracy can impede action, and so act to reduce unnecessary impediments to meaningful progress. They show people what they expect of them, and create opportunities for success.

Inspire a Shared Vision

Leaders are confident in their capacity to make a difference. They create a vision for the future of their organisation, which they use to inspire their followers. At their best, they influence through charisma, gravitas, and quiet persuasion.  But they also are aware of the need for practical efforts and so incite action too.

Challenge the Process

Leaders are never satisfied with the status quo. They look out for new ways to improve their organisation. This means experimentation and risk-taking. And because leaders know the nature of risk-taking, they are tolerant of failures and mistakes, treating them as learning opportunities.

Enable Others to Act

Leaders actively involve others to encourage collaboration and build effective teams. They know that mutual respect is crucial if they are to foster extraordinary efforts. So they build an atmosphere of trust and confidence. They empower and develop their team members, to make each person feel capable and trusted.

Encourage the Heart

The kind of changes extraordinary leaders try to make, are hard to accomplish and often risky. They therefore deploy high levels of emotional intelligence to keep motivation going and maintain resilience and determination. They recognise effort and celebrate achievements.

We also covered the Leadership Challenge in our Pocket Correspondence Course series, with three exercises to develop your understanding of leadership models by comparing this with others.

The Leadership Challenge: Interview with Barry Posner and Jim Kouzes

John Grinder and Richard Bandler: NLP (Neuro-Linguistic Programming)

John Grinder and Richard Bandler are credited as the co-founders of NLP. This is a basket of behavioural, therapeutic, and influencing techniques that comes in and out of fashion in the organisational world.

However, in the self-help world, its ups and downs are less pronounced – it has continually received accolades and steadily grown its influence.

So here then is the central dilemma of NLP for managers and professionals: how important is it? And therefore, how seriously do we need to take Bandler, Grinder, and their ideas of NLP?

John Grinder and Richard Bandler: NLP

John Grinder and Richard Bandler: NLP

John Grinder

John Grinder was born in 1940, and studied psychology at the University of San Francisco. After graduating with a BA, he joined the US Army as a Captain in a special forces unit. He then joined a US intelligence agency, before studying for a PhD in linguistics at The University of California, San Diego.

Grinder completed his PhD in 1971, and after a short time in George Miller’s lab at Rockefeller University, he joined UC Santa Cruz as an Assistant Professor in Linguistics. His research interest was the then very new and fashionable transformational grammar pioneered by Noam Chomsky.

In 1972, a psychology student called Richard Bandler came knocking, looking for help with a research project in which he was transcribing hours of Gestalt Therapy sessions. Bandler wanted help in analysing Fritz Perls’ language.

This was the start of a collaboration that led to the founding of Neuro-Linguistic Programming. The story of their collaboration, and of the other people involved – it was far from a two-person endeavour – is well documented elsewhere. So too is the acrimonious breakdown of their working relationship, and the court actions over ownership of the NLP name and ‘brand’.

The upshot of this, by the way, is the court’s decision that NLP is a generic term and no one can own it. This meant that, after the split, Grinder could continue to develop his own new ideas, which he came to call ‘New Code’ NLP in contrast to the earlier work he did with Bandler, which he refers to as ‘Old Code’.

Grinder has authored many books with Bandler and others, and continues to teach NLP, through his own business (Quantum Leap) with his wife, and for other NLP schools.

Richard Bandler

Richard Bandler was born in 1950. His first few years were spent in New Jersey, before moving to California. He studied Philosophy and Psychology at US Santa Cruz, where he graduated in 1973.

There, Bandler met John Grinder and other early collaborators in developing what became NLP.

Bandler and Grinder became close colleagues studying and teaching the communication patterns of a number of therapists, like Fritz Perls, Virginia Satir, and Milton Erikson. They gathered a number of other interested researchers and teachers around them.

Inevitably, as what they were teaching became more popular – and therefore more commercial – tensions arose. Like Grinder, Bandler formed his own business and continued to teach and develop new ideas. He too still teaches NLP, along with hypnotherapy, around the world.

Co-authors

Bandler and Grinder were co-authors of a number of the seminal books in the emerging subject of NLP. None are aimed at ‘lay’ readers. They are written for aspiring and experienced practitioners and, even having studied NLP and received Practitioner and Master Practitioner certificates, I find them barely readable.

There are many more modern books aimed at introducing NLP to interested readers. Browse your favourite book site and take your pick.

Neuro-Linguistic Programming: NLP

So, what is NLP? It stands for Neuro-linguistic Programming (yeah, I know), and it is fundamentally an assorted bag of methods and models designed to help understand communication and behaviours and elicit behavioural change.

An earlier Pocketblog gave a Brief Introduction to NLP Skills.

At the root – and this is something Grinder constantly emphasises – is the idea of modelling. Whatever you want to be able to do, find an example of someone who does it to a level of excellence. Document everything they do, say, and think when they are doing it. Then try out being exactly like they are. Start to strip away elements, to find out what parts make no difference and which parts, when lost, become significant.

You’ll end up with a core of beliefs, behaviours, and communication patterns that materially affect your outcomes. Fritz Perls, Virginia Satir, and Milton Erikson were the first people extensively studied in that way.

From them, Bandler and Grinder extracted two of the biggest and most influential models within the NLP corpus: The Meta Model (from Satir and Perls) and The Milton Model (from Erikson).

The Meta Model

The Meta Model documents language patterns that allow the therapist, coach, salesperson (choose your role) to spot patterns of thinking in the other person. A long list of linguistic patters betray distorted perceptions, generalisations, and subconscious deletions of possibly relevant information. By challenging these, coaches and therapists can open up new possibilities to the person they are helping, and salespeople can breakdown objections to buying.

Bandler and Grinder’s primary books that originally documented this were The Structure of Magic, volumes 1 and 2.

The Milton Model

Milton Erikson was a masterful user of hypnosis in his therapy. Indeed, his style is sometimes called Eriksonian Hypnosis. Once again, Bandler and Grinder documented his language patterns. They found a similarity to the meta model, but that Erikson was being deliberately vague, to elicit gaps in thinking, through which he could insert therapeutic suggestions. The Milton model can help move a listener into a more receptive state. Again, this is useful to therapists, coaches and salespeople.

Bandler and Grinder’s primary books that originally documented this were Patterns of the Hypnotic Techniques of Milton H. Erickson, M.D. volumes 1 and 2.

Evaluation of NLP

NLP is like Marmite: it evokes love and hate reactions in broadly equal measure. And its popularity goes through peaks and troughs – big ones for business, smaller troughs for the self-help industry.  It is currently a multi-million dollar industry world-wide.

Three factors are perhaps responsible for the extreme views:

  1. NLP is presented with a lot of complex and intimidating jargon. Indeed, the name Neuro Linguistic Programming suggests a level of mind-control which can intimidate or seduce. Some wonder if the jargon is merely designed to create a quasi-academic glamour the discipline does not deserve.
  2. Some practitioners make extravagant claims for what NLP can achieve. Everything from magical sales efficacy to curing phobias, to curing serious mental and physical illnesses.
  3. There is a limited research base. A lot of the evidence for the efficacy of NLP techniques is anecdotal, and many serous academic therapists have offered detailed critiques.

On the other hand, there are also three good reasons to learn more about NLP:

  1. Many people find that much of it really does work. The ideas are taken from observations of effective behaviour.  You can apply the modelling process to find out how to replicate the results of your best performers
  2. NLP is respectful of our potential. It encourages personal responsibility and asserts that we can all access the resources we need to make the changes we want
  3. The criticism that much of NLP is ‘just common sense’ can also be seen as a strength. By codifying common sense, we make it more accessible.

You can find much in NLP that is of value to you; and much that is not.  If you are prepared to be selective and evaluate each tool on its merits, NLP is a powerful resource.

Here’s a video I did for another business that will echo much of what’s here.

 

 

William Gordon and George Prince: Synectics

Creativity is all about having brilliant new ideas.

Go on… Have one now.

Creative ideas don’t just come to us when we want them. The whole process is mysterious, and cannot be called up on demand. Or can it?

Yes, it can. Or so said William Gordon and George Prince. If you know how to, you can find creative solutions when you need them. And their research into the creative process led them to a methodology still used today: Synectics.

George Prince & William Gordon: Synectics

George Prince & William Gordon

William Gordon

William (Bill) Gordon was born in 1919.He attended the University of Pennsylvania, but it is not clear whether he graduated. Between 1950 and 1960, Gordon led the Invention Design Group at consulting firm Arthur D Little & Co. He was, himself, a prolific inventor, with numerous patents to his name.

Synectics had its origins just after the Second World War. Gordon started studying how individuals and groups act creatively. This became more intensive and systematic, leading to him forming the Invention Design Group within Arthur D Little. There, he helped set up synectics groups within several client companies.

It was while leading this team, that Gordon met future Synectics co-founder, George Prince. With two further colleagues, they left Arthur D Little in 1960 to found Synectics Inc. There they pursued further research, developing and selling their model for how to run a creative process.

Also in that year, Gordon wrote ‘Synectics: The Development of Creative Capacity‘.

However, Gordon did not remain at Synectics Inc for long. He left to found Synectics Education Systems, to promote problem‑solving and education based on the use of metaphor.

Gordon died in 2003.

George Prince

George Prince was born in 1918 and grew up in New York State. He attended college at Phillips Exeter Academy and Williams College, graduating in Geology. The second World War saw him serving as a junior officer in the US Navy, in the North Atlantic.

Upon his return, Prince joined an advertising company in Rochester, where he rose to VP. He then learned of the work of Arthur D Little’s Invention Design Group, led by William Gordon. He joined the Arthur D Little company in the 1950s to be a part of that group.

In 1960, he, Gordon and two other colleagues left Arthur D Little to found Synectics Inc (now Synecticsworld). This company researched, developed and promoted their creative problem-solving methodology, Synectics.

Prince remained with the company for most of his, life, as Chairman. In 1970, he wrote ‘The Practice of Creativity‘, which remains in print. He died in 2009.

Synectics

Synectics is a rich methodology for solving problems creatively. However, the principles are easy to grasp:

  • look for alien concepts and things that seem irrelevant, and join them together.
  • Embrace emotions over intellect, and the irrational over the rational.

In applying these principles, Gordon and Prince assumed that the creative process can be described and then taught to others. They also believed that their process, Synectics, will apply widely to different domains of endeavour and can be used by groups and individuals.

They start with a cycling between the ‘operational world’ of routines and procedures, and the ‘innovation world’ of speculation and experimentation. New solutions become more available as we move out of the reality of the operational world, and increasingly embrace fantasy, metaphor, and absurdity.

The process they articulate is at its simplest:

  1. Articulate the task.
  2. Explore options, generating radical ideas that they called ‘Springboards’.
  3. Select the best idea.  Synectics presumes a preference for newness over feasibility at this stage.
  4. Develop that idea, and how it might work in practice.
  5. Put forward your possible solution.

There is a fuller description of the Synectics Problem Solving Process in an earlier article.

Two ideas stick with me from my learning about Synectics many years ago

The first one is the use of ‘How to…’

I love the way Synectics reframes every problem as ‘how to…’ I like it because it presupposes a solution exists and therefor the problem becomes finding it.

And once a selected idea emerges, the emphasis becomes intensely practical. We work on ‘how to make it work’. We constantly articulate the challenges and problems of implementation as ‘how to…’ Each time we solve this, we can modify the trial solution until, with no further issues, we have a possible solution, worthy of putting to the test in the real world.

The second is ‘In and Out Thinking’

Often, when we are in a meeting  particularly a long one that is trying to solve a problem, our minds wander. We have ideas and thoughts that come from ‘inside’, as well as from the meeting: ‘outside’.

We can make best use of these by dividing our notebook page in two – I like to draw a vertical line. On one side, make notes about what you hear or see in the meeting – the Outside thinking. On the other, note down ideas that come from your own thoughts – the Inside thinking. Often these will be connections or distinctions, but sometimes they are seemingly random thoughts. Seemingly, because they are almost certainly triggered by something, but to you, they seem irrelevant, because you are not aware of the link.

Often, these are your Eureka moments.

Charles Margerison & Dick McCann: Team Management

Charles Margerison and Dick McCann developed one of the leading tools to help managers with team performance.

When you want your team to perform well, there are two approaches you can take:

  1. Manage them well
  2. Select them for a good balance

There are tools available for each, though there are fewer to help with selecting a balanced team. Of those there are, without a doubt, Meredith Belbin‘s Team Roles is the best known by far.

But it is not the only game in town. You might choose it for its simplicity. But for sophistication, let’s look at the work of Charles Margerison and Dick McCann.

Charles Margerison and Dick McCann

Charles Margerison and Dick McCann

Charles Margerison

Charles Margerison grew up in the 1940s in the UK. He studied economics at the University of London School of Economics, securing a BSc. He remained to research a PhD in educational psychology. In 1967, he moved to Bradford University, and in 1971 was awarded his second PhD, in social science.

Some time after this, he moved to Australia, and joined the staff of University of Queensland. He was Professor of Management from 1982 to 1989.

From 1982, he worked with Dick McCann to research team management. And, in 1985, they co-founded Team Management Systems. He remains a part of the business, as well as being a director and President of Amazing People Worldwide.

Charles Margerison has written many books, including one with Dick McCann.

Dick McCann

Dick McCann also grew up in the 1940s, but in Australia. From 1961-5, he studied for a bachelor’s degree in Chemical Engineering, at the University of Queensland. He followed this with a PhD. In 1969, he moved to England, to work for BP Chemicals. There, he worked as a research engineer, and also trained as a certified accountant.

In 1974, he returned to Australia, to become a research fellow at the University of Sydney. In 1982, he started his collaboration with Charles Margerison.

In 1985, Dick McCann became the Managing Director of Team Management Systems in Australia. At the same time, his co-founder focused on European and US expansion.

Dick McCann stepped down from his director role in 2015, but remains involved in research. He is author of four books. They include Team Management: Practical New Approaches, which he co-wrote with Margerison.

Margerison and McCann’s Contribution

Margerison and McCann have developed a fair number of interconnecting models. There is too much to attempt to describe them here. They include work on:

  • Workplace values
  • Influencing skills
  • Opportunities and Obstacles

We’ll focus on their most widely used model, the Margerison-McCann Team Management Wheel. But before we can get to it, we must first understand the work that underpins it: the Margerison-McCann Types of Work Wheel.

Types of Work

Margerison and McCann interviewed with over 300 managers. They wanted to find what made a difference between good and poor performance.

When they assessed the team members’ activities, their data fell into eight work functions. They describe them as:

Advising
Gathering and reporting information

Innovating
Creating and experimenting with ideas

Promoting
Exploring and presenting opportunities

Developing
Assessing and testing the applicability of new approaches

Organising
Establishing and implementing ways of making things work

Producing
Concluding and delivering outputs

Inspecting
Controlling and auditing the working of systems

Maintaining
Upholding and safeguarding standards and processes

From their work, they suggest that different jobs have different critical functions. These need people with the right skills and competencies, to perform them well.

Margerison and McCann present these types of work in a trade-marked Types of Work Wheel, which we present here with a link back to the TMS website.

Margerison-McCann Types of Work Wheel

Margerison-McCann Types of Work Wheel http://www.tmsdi.com

Critical Work Functions

Let’s compare two examples that they offer. For each, they give three ‘critical work functions’. These make the difference between good and poor job performance.

Finance and Accounting
The critical work work functions are: Organizing, Producing and Inspecting.

Design/R&D jobs
The critical work functions are Advising, Innovating and Developing.

Team Management

From here, it isn’t hard to see how Margerison and McCann relate their work functions to individuals’ work preferences.

This creates their concept of ‘role preferences’. These are the roles in a team that people are most likely to enjoy. When people’s critical work functions match their work preferences, they are likely to:

  • be happier in their job
  • perform better

Team Role Preferences

The role preferences are:

Reporter-Adviser
Supportive. Enjoys collecting and sharing information. Knowledgeable and flexible.

Creator-Innovator
Imaginative, creative, and able to embrace complexity and uncertainty. Enjoys researching new ideas.

Explorer-Promoter
Enjoys exploring possibilities, looking for new opportunities, and then selling them to colleagues. Persuasive, fast thinking, and easily bored.

Assessor-Developer
Analytical and objective. Enjoys ideas, developing and testing new opportunities, and making them work.

Thruster-Organizer
Highly results-focused, Likes to set up systems, push forward and see results. Analytical, but quick to make decisions.

Concluder-Producer
Highly practical. Enjoys systematic planning and work processes. Takes pride in efficiency, effectiveness, and quality of outputs.

Controller-Inspector
Enjoys focusing on and controlling the detailed aspects of their work. Good at checking and enforcing standards, but less skilled with informal influencing.

Upholder-Maintainer
Likes to uphold standards and values. Can be conservative in the face of change, but has a strong sense of purpose.

How Margerison and McCan Identified their Role Preferences

Margerison and McCann worked with four measures related to how people approached work. They were strongly influenced in the choices by Carl Jung’s psychological types. So you’ll see a strong relationship to the work of Isabel Briggs-Myers and Katharine Briggs.

Margerison and McCann’s measures are:

  • How people prefer to relate with others
  • How people prefer to gather and use information
  • How people prefer to make decisions
  • How people prefer to organize themselves and others

These measures lead to RIDO scales (Relationships, Information, Decisions, Organization). And the scales showed a strong relationship to the Types of Work.

Like the Types of Work Wheel, they present their team role preferences as a Team Management Wheel. Again, we present this trademarked model with a link to the TMS website.

Margerison-McCann Team Management Wheel

Margerison-McCann Team Management Wheel – http://www.tmsdi.com

The Linker Role

At the centre of the wheel is the ‘Linker’ role. Every jobholder needs this role to be successful in their job. It involves integrating and co-ordinating other people’s work. This is both within the team, and with external players.

This role is particularly important for the team leader, as you’d expect.

Linking comprises thirteen skills:

  • six people skills
  • five task skills
  • for the team leader, two leadership skills

These, however, are the subject of a whole other model, the Linking Leader Model.

Richard Thaler & Cass Sunstein: Behavioural Economics

Arguably, behavioural economics is Richard Thaler’s baby. And an important baby it is too, being part of an essential late twentieth century trend. At last, economists – spurred on by psychologists and social scientists, stopped seeing people as ‘rational units of intelligent decision making’ and started seeing us as part rational and part irrational bundles of ideas, knowledge, feelings, desires and biases.

It is with these filters, rather than pure rationality, that we make decisions. And that insight was an essential correction to classical economics. It won the psychologist, Daniel Kahneman, a Nobel Prize in economics. His collaborator and mentee, economist Richard Thaler, then led the development of the ideas.

Writing with University of Chicago colleague, Cass Sunstein, they together produced the massive selling book, Nudge. But why is co-authorship enough to justify Sunstein’s place in a management thinker pair, when Thaler led the charge on behavioural economics? The answer lies in Sunstein’s contribution: he’s a constitutional and administrative lawyer with a strong interest in social policy. His thinking helped bring behavioural insights out of the classroom, ad agency, and boardroom, and into public policy.

It’s not just in the supermarket that we get nudged to buy stuff, but when we interact with Government too. And between them, Thaler and Sunstein’s conception of liberal paternalism inspired a number of benign behaviour changes, with no whiff of compulsion. Their ideas were picked up by governments all over the world, including the US, where Sunstein (a former colleague) served in Barack Obama’s administration, and here in the UK, where Prime Minister David Cameron established a Nudge Unit within Government.

Richard Thaler & Cass Sunstein

Richard Thaler & Cass Sunstein

Richard Thaler

Richard Thaler was born in 1945 in New Jersey. He studied at Case Western Reserve University, gaining his BA in 1967. From there, he went to the University of Rochester, for his MA (1970) and PhD (1974).

In his PhD, Thaler started the work that still occupies him today, investigating the economic value of a life. What he found was a huge disparity in people’s evaluation of the worth of one week of their life. When asked to put a value on a week lost, or on a week gained, people needed a high payment to be prepared to give up a week of life. Yet they would be prepared to pay far less to gain an extra week.

This imbalance is, of course, irrational. And that interested psychologists Daniel Kahneman and Amos Tversky. They researched all sorts of biases and shortcuts in our thinking. Thaler became a long term collaborator with the pair.

Thaler stayed in the academic world, holding teaching and research positions at many institutions. His permanent academic homes were the Universities of Rochester (1974-8), Cornell (1978-95) and then Chicago, from 1995 to the present day. It was at Chicago that Thaler met Cass Sunstein.

Cass Sunstein

Cass Sunstein was born in Massachusetts, in 1954. He gained his BA at Harvard College in 1975 and his JD from Harvard law School in 1978. Before returning to academia, Sunstein clerked for justices in the Massachusetts and US Supreme Courts, and served in the Justice department from 1980-1981.

In 1981, he became an Assistant Professor at the University of Chicago, becoming a full Professor in 1985. He remained at Chicago until 2008, when he formally moved to a post at Harvard Law School. However, having become friends with another Chicago Law School professor, Barack Obama, he headed up the Whitehouse Office of Information and Regulatory Affairs from 2009 to 2012.

Behavioural Economics

In 2008, after working together on the ideas in the book for five years, and having known each other for ten, Thaler and Sunstein published a best-selling book, Nudge: Improving Decisions About Health, Wealth and Happiness. This brought the ideas of behavioural economics to a wide audience, and introduced many of us to the term ‘choice architecture’.

Choice Architecture

Choice architecture is a beautifully simple idea. By framing choices in a certain way, we can make it easier – physically, cognitively, psychologically – for people to make one choice rather than another. It’s how supermarkets channel customers and how governments secure compliance.

Choice architects study the heuristics people use to make decisions. These are the mental shortcuts we apply, that save us from having to think too carefully, expend too much effort, and take time over mundane choices. Except these heuristics effectively hard-wire biases into the way we make decisions. These are the biases that choice architects can exploit.

Nudges

A ‘Nudge’ is simply a selection of how to frame (or architect) a choice, so that people can more easily make a choice that will satisfy them. Setting up nudges that satisfy you, at the cost of the chooser is manipulation. If you can avoid forcing your outcomes upon anyone, but make it easy for them to make a choice that suits them, Thaler and Sunstein refer to this as ‘libertarian paternalism’.

The tools that choice architects use are:

  • Setting the right defaults, so the easy choice is the best one
  • Anticipating errors, and therefore making correct behaviour easier
  • Setting up complex choices to highlight the right ones
  • Creating positive incentives for beneficial behaviour

The Behavioural Economics Context

Choice architecture is a subset of behavioural economics. This is the study of how real humans (not the artificial idealised, wholly-rational ‘econs’ of earlier economic theory) behave. Given economic choices, we are not wholly rational. This distorts markets and creates dynamics that do not conform to rational economic theory. This may seem like an obvious observation, but to economists through most of the twentieth century, it was not obvious at all. Year after year, new models and theories worn prestigious prizes. All were based on the myth of the ‘rational actor’.

Now, we know for sure that  this rational actor is an ideal at best and a mythical creature at worst, we can start to do messier, but more realistic economics. That’s behavioural economics or, as Richard Thaler points out, Behavioral Economics: ‘why do the British need a superfluous u?‘, he asks. Because we are not rational, I suppose.

Richard Thaler on Nudge

A lot of great content, though edited with some disconcerting cuts.