The Passing of an Era

When breakthroughs are made, change comes quickly. Case in point: the suitcase. Putting wheels on a suitcase is such an obvious innovation, one wonders how it could have been overlooked for so long. This improvement required no complex engineering and no leading-edge materials, yet everyone missed it. Quite simply, we were trained to accept suitcases and trunks without wheels, so everyone did—for hundreds of years! But once a better alternative appeared, suitcases without wheels disappeared quickly.

Now for something equally obvious that leaders in corporate America do not yet see: the well-documented human factors of mind and emotion. These offer far more productivity potential than the practices we currently embrace. Once this breakthrough is understood, work will change very quickly. We just have to reach the tipping point.

You see, while every era is built on an explosion of understanding, every era gives something while it takes something else away. In the industrial era, we learned to mass-produce goods and held in awe the great machines that turned raw materials into finished products. Unfortunately, craftsmen, the “machines” of the prior era, were dehumanized, becoming nothing more than good hands, mere interchangeable parts, spawning a union movement that won back a measure of self-esteem and control.

Today we have transitioned into the information economy, and a new type of craftsperson has appeared: the knowledge worker. Almost unnoticed, craftspeople have returned, toiling in modern information factories, where they utilize the raw materials of a new era: concepts. By applying networks of minds and emotions, concepts are turned into reality; here deep institutional experience and advanced technical knowledge are a competitive advantage; here human understanding is a lever of productivity; here management remains largely blind to this unfolding reality.

In a stark departure with the past, a socially intelligent and unselfish leadership paradigm will fill the cold vacuum of insensitivity that is part of our industrial heritage. Our factories will buzz with the notion of socially derived productivity, and managers will focus on designing social environments that unlock human output—in addition to managing and controlling the workers. We will learn new forms of measurement that combine both art and science, so that we can peer inside these social systems and see if they are operating effectively.

Refreshingly, we have entered a time that relies on networks of people as the means of production, not machines and process (not to say they won’t be very important). As this era evolves, harmony and happiness will increase, and the economic environment will become inhospitable to the cold and socially insensitive giants of the passing era. They will transform themselves or migrate to foreign environs, where an unchanged economic environment can supply their commodity labor.

Clearly, large shifts such as this happen slowly. The industrial revolution that began in the early 1700s is bleeding into the information economy that began in 1945. Like a ship traveling from the ocean to an inland waterway, we are now passing through the brackish delta, where the water transitions from cold, to cool, and then gradually becomes warm and fresh. We eagerly journey toward the warm water, where we will stop, revitalize ourselves, and relax within the security of a caring social environment that is safe and highly productive.

The U.S. economy is already far into this delta, where our past and future are bleeding together. Research-based human understanding has been building during our journey, and it is this knowledge that will propel us along the remainder of this journey. By embracing and applying what is already known, we will finally recognize the insensitive management practices of the industrial era for what they are—a human social pathology embedded within our management culture that is a legacy of the past. Patterns of behavioral transmission like this are technically classified as memes: “a cultural unit (an idea or value or pattern of behavior) that is passed from one generation to another by non-genetic means (as by imitation); memes are the cultural counterpart of genes.”¹ Passively, as managers train their successors, they add a new link to corporate America’s pathological chain of inheritance.

With this insight as a backdrop, we can clearly see that the root cause of our repeated failure on large, collaborative IT projects is our ignorance of the human factors of productivity. Figure I.1 juxtaposes our unemotional, cold industrial past and our future, warmed by human understanding.

A New Era Brings a New Focus

In this new era, it is clear that social intelligence, trust, and unselfishness are indispensable management tools that enable a leader to energize a human web and make it highly productive. Executives who can do this will rise in importance as corporate America realizes that each web is a social system—and the social system is the factory. Science has brought an explosion of human understanding. This era will provide the insights necessary to build highly collaborative and productive social systems. As understanding grows, the inhumanity of the prior era will fade away. It is a win-win model, unlocking potential by blending the findings of modern science with age-old wisdom:

Even in such technical lines as engineering, about 15% of one’s financial success is due to one’s technical knowledge, and about 85% is due to skill in human engineering, to personality and the ability to lead people. (emphasis added)

—Dale Carnegie

Fortunately, we have been putting many building blocks in place. Diversity was a training ground that increased our awareness and sensitivity to others. Now we must add a new dimension to our interpersonal understanding by becoming aware of the social, cognitive, and emotional aspects of human collaboration. This growth in our human understanding will become a competitive advantage, as we leverage social intelligence to unleash strengths in others. Although the transition will be difficult, it will be far more difficult for countries deeply tied to the industrial mind-set where workers are just another type of machine—keep it running, and if it breaks down, discard it and get a new one. We are many steps ahead on the pathway to human-centric practices.

As in all changes, this transformation will require understanding, trust, and conviction. We must, therefore, move forward with confidence, recognizing that the emerging environment is hospitable and will sustain us until we reach a much better place. As Buckminster Fuller once said, “You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete.” That is where we are today, in the transition zone: a place where a socially intelligent, servant leadership paradigm will finally begin to reproduce itself. We must work collectively to make sure the new model is seen, understood, and embraced—a set of memes that inaugurates a new enlightenment.

As is well known, cultural change is a complex, time-consuming undertaking. But here there is good news: Changing the focus from self to others is very powerful indeed.

Self-absorption in all its forms kills empathy, let alone compassion. When we focus on ourselves, our world contracts as our problems and preoccupations loom large. But when we focus on others, our world expands. Our own problems drift to the periphery of the mind and so seem smaller, and we increase our capacity for connection—or compassionate action.

—Daniel Goleman

Leading companies like Google understand that the only shortcut is talent, and they have therefore embraced and nurtured a creative and motivated workforce. Clearly, the winners of this unfolding era will be led by servants who understand how to unlock human potential. Satisfyingly, this understanding will rehumanize the workforce, launching productivity revolutions within corporations that shun selfishness and short-term thinking; those that refuse to embrace their professionals will compete in a race to the bottom.

To fuel this revolution, an explosion of human understanding has arrived on cue. Brain science has revealed how the human mind works, and decades of scientific research has shown how we think and feel. Winning companies will design collaborative cultures where prosocial and caring behaviors give way to positive social chemistry. Here the minds and emotions of the workers will literally flourish, unlocking desperately needed innovation. The hands no longer matter; instead, we will learn to cultivate work environments where the collective state of mind is productive. Nothing is more important.

A Quick Book Tour

Chapter 1, “A Shining Light: The Blind Spot Revealed,” shows that an inflection point has truly arrived. Peter Drucker said the management challenge of the twenty-first century would be to increase the productivity of knowledge work and knowledge workers. In my years of leading turnaround transformations of failed and/or failing information technology (IT) organizations, the author saw how they shared frightful, dark climates where the energy was consumed by protective behaviors, not productive work. We have so much to learn. Using the analogy of robots in a factory, the chapter shows how dysfunctional our management practices are, with our in-depth knowledge of technology and so little knowledge of our most expensive and important tools: our people. It introduces the need for servant leadership practices, unselfishness, and prosocial behaviors focused on the needs of others, and the importance of relegating toxic leadership practices to the past because they destroy the return on human capital.

Chapter 2, “Corporate America’s IT Organization: Failure Is All Too Common,” examines the history of corporate IT failure. Decades of IT project failure and underperformance are reviewed to underscore the fact that this is a long-standing problem. In fact, when compared to how much the performance of our technology (computers, storage, etc.) has increased during this same time period, we are left to wonder: How did one improve so much, while the other so little? Sixty years into the information era, IT remains a marriage of necessity, not love, in traditional corporate America. Failures are worse than publicly admitted, and, when one looks closely, we see these failures are a failure of management, not the IT organizations. If management would just embrace its people, instead of external experts and silver bullets, IT would perform well. Management can turn around troubled organizations by acquiring, growing, and retaining talent, and relying on human factors like, trust, meaningful teamwork, and real cross-functional collaboration to create reliable execution and project delivery. A quick review of the silver bullets shows that the solution to IT failure will be found by applying human-centric practices and understanding within the corporation.

Chapter 3, “Man as Machine: A Social Pathology,” examines the root cause of persistent IT failure. A trip back to the industrial era reveals a mind-set that turned craftsmen into machines, where organizations became devoid of emotion, corporate Easter Islands whose workers stare blankly into space. The management ethos that created these cold, industrial settings flowed into our present era, so the blank stares remain, and through the blank stares we find a root cause: antisocial, selfish behaviors create environments that are toxic to cognitive productivity, where the human infrastructure literally shuts down, causing labor burn rates and costs to explode as productivity plummets. It is a paradox, but it is real. Our human resource practices remain primitive but, as clearly shown, they perpetuate themselves, awaiting a movement outside the corporation to ignite the flames of productive change.

In Chapter 4, “The Unseen Art and Emotion of IT: The Acme Inc. Philharmonic Orchestra: Knowledge as Notes, Leaders as Conductors, Programmers as Composers,” we take a detailed look at the hidden inner world of IT projects, where mind and emotion are the tools of a conceptual and emotional reality shared by artistic co-creators who have to deeply collaborate to turn concepts into reality. It is within this inner realm of the mind where alignment—conceptual unity—is found, but only if there is a high degree of social cohesion to facilitate the unfettered exchange of information. Here we examine how the process-based models and controls of the industrial factory are inadequate, because people-based potential can be unlocked only by leveraging the human factors to animate the workers. Using music as a metaphor, we see how composers (programmers) use a variety of instruments (programming and design tools) to create unique works (solutions); here we begin to look at the challenges of leading the IT orchestra, where the business cannot see the hidden inner reality, where the instruments keep changing, where hyperspecialization is the norm, and where human-centric practices are the unused levers of an unfolding era. When professionals are treated as mere parts, the financial impact is dramatic.

This is clearly shown in Chapter 5, “Case Study: An Unproductive State of Mind: Toxic Leadership and Its Aftermath.” Because every software development project creates unique output, we have not been able to measure the productivity impact of different management practices. Finding a case study that looks at toxic leadership and its aftermath was a challenge, but the author did uncover one. IT is all about working social, so here we see how socially corrosive behaviors impede the complex human collaboration required to build a solution and the bottom-line impact such toxicity creates. Failure is a distinctly human drama, and in this case study, an unsuspecting group of professionals quickly go from celebrating success to sharing an unfolding disaster. The casualties are real; the names have been changed to protect the guilty.

Chapter 6, “What Are We Waiting For? Applied Science at Work,” provides an academic research window through which the human factors of productivity are visible. Beginning with the Hawthorne experiments and culminating with research into neuroscience, we take a tour that shows how a leader can employ the human factors to unlock the productivity of any organization and how an individual contributor can positively impact the team he or she is on. Find out how your expectations drive results both up and down; see how empathy and compassion evolved as tools that you can use with great effect today; understand why organizational citizenship behavior should be embraced to drive higher performance; find out how the limbic system shuts down the human infrastructure if threats exist in the workplace; see how shared emotional needs drive productivity; find out how mirror neurons form a physiological connection between every member of a team; and, last, learn how the human infrastructure has physical limitations based on how it evolved. All of this matters immensely when your factory floor is powered by minds and emotions.

Leaders must develop expertise in how to operate the “human equipment,” just like any costly tool provided to them. In Chapter 7, “Empathy and Compassion: The Socially Cohesive and Resilient Organization,” we explore how both these emotions are powerful drivers of productivity. The chapter recommends using the overarching term caring to describe them, as it is more acceptable in corporate environments that are still hostile toward feeling. We discover how empathy and compassion are extroverted social emotions that help reduce stress through a process of noticing and responding. We also explore the role of toxic handlers, individuals who quietly raise the productive capacity of the organization by deeply caring about others, thereby elevating organizational mood. Workers touched in this way become both present and productive. With employee engagement at all-time lows, and stress causing an enormous drop in group productivity, showing concern for others is more important than ever. This chapter explains how and why, enabling you to improve your effectiveness and that of your organization.

Since great IT is all about productive thought and meaningful social interaction, Chapter 8 is titled “Designing a Collaborative Social System: Working Social: How the Right Culture Unlocks Productivity.” Here you learn how culture unlocks productivity and how the collective thoughts and emotions of hyperspecialized professionals can be choreographed to produce a great solution. Both the social environment and social interaction are integral to IT, but productive harmony is unleashed only when the silos, walls, and cubicles that workers hide behind are taken down. As the saying goes, in unity, there is strength; effective collaboration frees creative solutions to nagging issues that block the path forward, lightening a heavy workload. You can increase both the speed and quality of thousands of individual interactions by applying what is recommended here.

In Chapter 9, “The Social Compact: Organizational Citizenship Behavior,” we look at how organizational citizenship behavior is an essential tool. Corporations shape how their customer service representatives interact with clients, constantly reinforcing the importance of being sensitive to each client’s needs so that levels of customer intimacy rise. Why not teach professional intimacy, so employees understand how to productively collaborate with their fellow workers? Here we take a look at a set of guidelines you can employ to create productive social interaction. None of them is revolutionary, yet all are highly productive because toxic, antisocial, and even neutral behavior is the norm. Your upside is significant, and it costs very little to magnify teamwork and collaboration. From my experience, when employees reflexively help one another, organizational effectiveness quickly improves due to stronger working relationships and shared institutional knowledge. Read this chapter to understand how you can give your organization a boost.

By the time you have gotten this far, you will have gained valuable understanding about how to build a high-performing organization. But great leadership that is prosocial and authentic is essential, and when it comes to IT, nothing is more important than the topic of Chapter 10, titled “The Servant Leader: Prosocial and Authentic.” Unselfishness is an especially productive leadership skill because it enables you to focus on the needs of others, thus unlocking their potential. As you read through this chapter, you discover the leadership behaviors that draw teams together, enliven an organization, and animate a great performance. Certainly the desires of individuals matter, but IT leadership is ultimately about making teams great and leaving individual desires subservient to the needs of the group. As noted in this chapter, there are many successful leadership styles; yet the research shows that a caring culture led by someone in the service of his or her people is highly productive. Perhaps nothing has broader productivity implications. Tone at the top is a real force.

Chapter 11 digs into an area that underpins successful teamwork and collaboration: “Social and Emotional Intelligence: Organizational Canvas Meets the Social Paintbrush.” After a brief review of what the academic research shows, this chapter covers these skills and how they can be applied. Ultimately, reading the emotional state of individuals and the collective organization provides a window into how productive the social climate is and invites you to make it better. Pulling the right emotional levers creates a more productive atmosphere, stronger social cohesion, and improved collaboration. The chapter contains a list of suggested actions to employ to improve social sentiment, thus energizing the performance of your coworkers, team, or division. People are hired for their IQ but then fired most often for lack of emotional intelligence. Honing your skills in this area will pay both a personal and an organizational dividend.

If you have built an environment where projects are done on time, the next milestone is leveraging the talent to create competitive advantage. There is never enough top-line growth, so unleashing innovation is imperative. The best way to accomplish this is to employ the proven techniques outlined in Chapter 12, “Designing an Innovative Culture.” Great outcomes are not the result of chance but of a series of wise decisions that deliver desired results. Much research has been done on innovation, yet it remains elusive for most companies. Yours does not have to be one of them. If you employ the practices outlined here and are sensitive to the role of culture, you can improve your outcomes. Certainly, making innovation an organizational imperative is important, but that is only the beginning. Approaching the problem in a practical, holistic manner, as explained in this chapter, will continuously move the needle.

With innovation cooking and a wellspring of productivity flowing because you have successfully stirred the dormant potential of both individuals and teams, you must now relentlessly invigorate your talent base. Nothing is more productive than a small, tightly knit group of high-aptitude professionals with deep institutional knowledge. These are assets, not expenses, and, as assets, they must be nurtured and developed. This is where Chapter 13, “Workforce Planning: Maximizing the Productivity of Your Talent—Today and Tomorrow,” enters the equation. Building a high-performing organization is critical; refining it, growing it, and ensuring you maximize the productivity of your talent, today and tomorrow, is an overarching responsibility. Here you find a high-level methodology that is both strategic and tactical; see how it encompasses a cycle of activities; and understand that workforce planning is an ongoing process, no different from managing expenses, contracts, and system availability. Talent remains the only shortcut. It is time to embrace it.

Our journey together so far has been productive, and we have seen many things. Chapter 14, “How to Successfully Transform Your Organization: Putting It All Together,” pulls everything together so you can apply the insights and techniques shared in this book in your own organization. This chapter lays out a holistic approach, including practices beyond the scope of this book, so you can see the big picture. Great IT has many variables that extend beyond culture, talent, and leadership, but the human factors intertwine around everything. This chapter contains a simple recipe that the author has used with great success, covering organizational design, strategy, tone at the top, governance, culture, talent, the importance of growing experience, and IT best practices in context of the human factors covered in this book. It is a handy reference that simplifies an inherently complex process so that you can thoughtfully transform your area and win.

As you travel on from here, you will find that the journey itself is the reward. Nothing is more gratifying than unlocking greatness in others. As you will experience, the greatest journey lies within.