Do you choose uncertainty over clarity?

The Leadership Advisor

"Optimizing the individual & organizational effectiveness of leaders."

April 2012

Volume 7, Issue 4

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Leadership Changes Culture

Setting a Direction in the Place of Uncertainty

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Leadership Changes Culture

By Phil Eastman

Over the past few months, the subject of organizational culture change keeps coming up in my interaction with our clients. It is such a big subject and one that seems overwhelming. However, the driver of culture change is readily available: it is leadership.

Culture, as defined by Webster's, is the "the set of shared attitudes, values, goals, and practices that characterizes an institution or organization."

Examples of organizational culture abound. All of us have encountered organizational culture, whether overtly in overstepping on some issue only to find that subject was loaded with cultural implications, or having stepped into your favorite store and been greeted and appreciated in ways that make you feel good about yourself. The first example is overt (how we treat our customers), while the other is covert (it's just the way it is). In either case, the culture of an organization is the responsibility of its leaders, to cultivate and caress because the culture represents the way we want the organization to be experienced, or to change it because the culture represents barriers to a successful future.

Lately I have been hearing leaders state that their culture is not what they want it to be. They say this with regret and resignation, as though they have no control. Leaders don't control the culture, but they have the authority and the influence to shape it.

Shaping the culture begins with a clear articulation of why a culture change is needed and what needs to change as a result. The benefits of changing culture must be clear, compelling and actively led to be successful. The attitudes and actions of the leaders will signal how serious they are about the new culture to be built.

One of the best examples of the disconnect between leaders' words and people's actions in culture change happens every Monday morning when I board my United Airlines flight for somewhere. The perfunctory (sometimes professional) attitude and actions of the gate agents, flight attendants and flight crew do not match the message from Jeff Smisek, the CEO. After I have been told step in, sit down, buckle up and quiet down, the video from Jeff says "that if he could greet every passenger, he would thank them for flying with United." When I hear that message and then match it with the treatment I received there is a substantial disconnect. I think he should show up in Boise and greet me some morning and show his people in real terms what he expects them to do to make customers feel welcome and appreciated. It would be a great way to lead the change in culture his video advocates.

Culture is a function of leadership. As such, if you don't like the culture of your organization or believe it is not sufficient for the challenges and opportunities of the future, then lead it in a different direction.

You will see this type of leadership in Jean DeLuca's article. Jean is leading the culture she wants at Delta Dental of Idaho. You will enjoy her perspective, and I encourage you to mirror her approach.

Leaders don't control the culture, but they

have the authority and the influence to shape it.

Phil Eastman is the founder and president of Leadership Advisors Group, a Boise-based consulting firm. Phil combines more than 25-years of leadership experience with his passion for consulting, coaching, and teaching to develop leaders, build teams, and improve performance. It is his desire to enhance leadership effectiveness for all of his clientele.

Phil earned his Bachelor of Business Administration in Management and Organization from Idaho State University. He is a graduate of the Pacific Coast Banking School at the University of Washington, where he is also an instructor. Phil also holds a Master of Arts degree in Theological Studies from Bethel Seminary.

Setting a Direction in the Place of Uncertainty

By Jean De Luca, President and CEO, Delta Dental of Idaho

The strangest advice I read about in the Five Temptations of a CEO by Patrick Lencioni was to "choose uncertainty over clarity." After all, isn't the job of a leader to provide clarity and direction to the team?

After considerable reflection, I realized that Lencioni's advice encourages us to take a leap and make a

Delta Dental of Idaho

decision - to set a direction - even when we may be wrong or don't have enough information to be entirely certain.

The health benefits and insurance industry has historically experienced only incremental changes over the last 25 years. In today's market, we find greater uncertainty due to the continued increase

in health care costs and the complexities of national health care reform which will bend the cost curve and reduce the number of uninsured.

Although trends point toward probable future scenarios, health reform and the roles of players in the delivery of healthcare continues to change and evolve with tremendous frequency.

As the CEO of Delta Dental of Idaho, a long-standing dental benefits carrier in the state, I have concluded that it is not possible to be certain regarding the future direction of the company. While some on our team may crave more directional certainty, most understand that identifying a course of action and being open to asking tough questions to improve that "certainty" are more important.

As a team, we invested time determining what "is known" to lay a strong foundation for the best decision-making possible. An important step in this process was the ability to probe and challenge one another's thoughts and ideas. Not only did this improve the decision-making process, it also helped increase buy-in and accountability...all essential factors in achieving successful results.

Creating a culture that openly talks about conflict and demonstrates a comfort with conflict is not easy. Defensiveness will occur and trust will be challenged - anticipate it. Team members who risk vulnerability to raise questions and benefit from a supportive environment for constructive conflict will increase their trust in one another.

It's important to seek "the stories at the water cooler" that reveal on-the-job realities to determine how an increased acceptance and support for conflict impacts the organization. While maintaining a positive and supportive team environment is always desirable, we must challenge ourselves to address those issues that are not always pleasant to discuss with openness and courage.

It is difficult for almost everyone to experience the fear of being wrong. The tendency to hesitate before setting a direction until certainty or unanimous agreement have been achieved can cause the decision to be made too late to be successful.

As leaders, we need to take a position and seek feedback, both internally and externally from our customers, stakeholders and board, before moving forward with a plan. Next, we must move fearlessly into action, then measure results and improve future direction after giving the plan an opportunity to succeed.

After several months of reading and developing a new strategic planning process, here are the steps that I plan to use in moving forward "in the face of much uncertainty:"

Identify strengths of our management team and improve the way we work together in using these strengths.
Mine for conflict and allow time for discussion when developing a strategic plan.
Set timelines for developing strategies and tactics that have definable goals and measures.
Manage to these timelines and create accountability for the results.
Revisit the goals and results quarterly (if not more often) and adjust the goals as needed.

As uncertainty moves onward towards certainty, it's important to have the courage to evaluate past goals, perhaps determine that the old goals are no longer working, and engage your team to work together thinking out of the box, to innovate, and improve your collective results.

Does your business face uncertainty? How comfortable are you and your team with conflict? And, finally, do you have the personal courage to ask the tough questions that might indicate your direction could be wrong?

Creating a culture that openly talks about conflict

and demonstrates a comfort with conflict is not easy.

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Sincerely,

Phil Eastman
Leadership Advisors Group

Leadership Advisors Group helps clients achieve success through competency based and character driven leadership development. Comprehensive, flexible, and focused strategic planning. Results oriented change.