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Chipotle Leadership Looks Within, Using Generation Flux's Secret Weapon

Chipotle Leadership Looks Within, Using Generation Flux's Secret Weapon | Change Leadership Watch | Scoop.it

Chipotle has distinguished itself from the Burger Kings and McDonald's of this world by relying on "naturally raised" meat that is antibiotic- and hormone-free, by dropping trans fats from its cooking before doing so was in vogue, and by offering organically certified beans and avocados. ...Other chains reheat frozen items in a mechanized system. At Chipotle, Ells points out, "we're actually cooking. If you walk into the refrigerator, you'll see fresh onions and peppers and raw meat that isn't tenderized or treated in any way."

Excerpted:   That mission drives Chipotle's sales and marketing..  When Chipotle's ad agencies couldn't find a way to make "food with integrity" a compelling sales proposition, Ells dumped them and brought marketing in-house. Now the company is winning industry awards, and building valuable customer loyalty, through campaigns such as The Scarecrow. The online video and game about farmers and fresh food has become a best seller on the App Store, downloaded nearly 700,000 times [and]  has fueled Chipotle's growth. The company now has some 1,700 stores, up from 1,350 two years ago; revenue is $3.6 billion, up more than $1 billion over the same time; and Chipotle's market cap doubled to a whopping $21 billion.

   

Steve Ells and Chipotle are hardly alone in embracing what Ells calls a "loftier" vision for the enterprise. "...another renegade CEO declared... his frame for decision making was moral: "We do things because they're just and right." This emphasis on social goals over financial performance seems almost revolutionary—and yet the renegade is none other than Tim Cook of Apple, CEO of the most valuable company in the world.
 

[As for]... Generation Flux, [they are the] people best positioned to thrive in today's era of high-velocity change. Fluxers are defined not by their chronological age but by their willingness and ability to adapt, ...defining where business and culture are moving. ...Purpose is at the heart of their actions... [not] social service. ...Mission..allows them to filter the modern barrage of stimuli, to motivate and engage those around them, and to find new and innovative ways to solve the world's problems. ….Businesses that find and then live by their mission often discover that it becomes their greatest competitive advantage.

Deb Nystrom, REVELN's insight:

Purpose and Generation Flux are central concepts to values centered, purpose driven and highly successful companies and more companies, who have this at their core as they grow, are finding success.  Those who do not will not be able to change or adapt to it later.    ~  D

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The End of "Results Only" at Best Buy, Theory X Returns?

The End of "Results Only" at Best Buy, Theory X Returns? | Change Leadership Watch | Scoop.it

"Best Buy CEO Hubert Joly axes flexible work. the original "Results-Only Work Environment" and why it is worse news than Yahoo's remote-worker roundup."  

That is, if this Theory X style change ends up being  judged as short-sighted leadership decision.


Excerpts via Professor Monique Valcour's post :


Best Buy's flexible work program is ...the groundbreaking Results Only Work Environment (ROWE), one of the most innovative and celebrated examples of a company redesigning work to focus on results and boost performance through motivation-enhancing trust and autonomy.

_______________________

     
"In a turnaround transformation, you need to feel disposable as opposed to indispensable."


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The ROWE method has since been implemented in more than 40 companies.


The culture of work-life support in a company is the most powerful predictor of employee work-life balance as well as a key element in job performance, organizational commitment, and intention to remain with the company.

But top management exerts the strongest influence on culture...



CEO Joly made a very revealing comment following an investors' meeting in November.


  • "In a turnaround transformation, you need to feel disposable as opposed to indispensable." 

  • He is far from the only "Theory X" leader who believes that stressing employees makes them perform better. 

  • This underlying belief persists despite enormous research evidence to the contrary ...

Related posts by Deb:
   
Deb Nystrom, REVELN's insight:
  • This provocative piece on ending flex work arrangements provides YIN to the YANG of change leadership watch.  We can watch to see what happens next at Best Buy on how effective this is in turning things around or, perhaps putting an end to things.  ~  D
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Deb Nystrom, REVELN's comment, March 9, 2013 11:19 PM
Indeed, Robin. Science is not on their side, CEOs Joly & Mayer.
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Denmark's New Female Billionaire Goes with the Success of ECCO Shoes

Denmark's New Female Billionaire Goes with the Success of ECCO Shoes | Change Leadership Watch | Scoop.it
Hanni Toosbuy Kasprzak makes her debut among the world's richest, nearly 50 years after her father first started making shoes.


The story began nearly a half century ago. That’s when Hanni's father, Karl Toosbuy, gave up his secure job managing a shoe factory in Copenhagen to strike out on his own.


He had a clear vision, namely to make functional, comfortable shoes designed to fit the foot.


Toosbuy turned that simple idea into global shoe brand Ecco. He died in 2004 but his legend lives on in his company, thanks largely to his daughter, who is chairman and owner of Ecco

Deb Nystrom, REVELN's insight:

I was at one of the Ecco stores at the Venetian in Las Vegas this April.  It's easy to see why the Ecco brand has enjoyed such solid growth despite the economic downturn.  ~  D

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Toyota's Relational Contracts and the Decline of General Motors — HBS Working Knowledge

Toyota's Relational Contracts and the Decline of General Motors — HBS Working Knowledge | Change Leadership Watch | Scoop.it
What led to General Motors' decline? Long regarded as one of the best managed and most successful firms in the world, its share of the US market fell from 62.6 to 19.8 percent between 1980 and 2009, and in 2009 the firm went bankrupt.


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Toyota's practices were rooted in ...effective relational contracts-- ...based on subjective measures of performance ...enforced by the shadow of the future. 

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The authors argue that the conventional explanations for GM's decline are seriously incomplete...and make the case that one of the reasons that GM began to struggle was because rival Toyota's practices were rooted in the widespread deployment of effective relational contracts-- agreements based on subjective measures of performance that could neither be fully specified beforehand nor verified after the fact and that were thus enforced by the shadow of the future.

GM's history, organizational structure, and managerial practices made it very difficult to maintain these kinds of agreements either within the firm or between the firm and its suppliers.

...Two aspects of GM's experience seem common to a wide range of firms.

First, past success often led to extended periods of denial: Indeed a pattern of denial following extended success appears to be a worldwide phenomenon.

Second, many large American manufacturers had difficulty adopting the bundle of practices pioneered by firms like Toyota. 
   
See a companion piece, also referencing GM in Deb's comments in Change Management Resources ScoopIt newsletter:  

Moving Beyond Hierarchy - What is Working Now to Lead Through Change?

 

Deb Nystrom, REVELN's insight:

Denial of change after a long success, and failure to adapt to the new?  The cited Harvard working paper by Susan Helper and Rebecca Henderson gives implications of GM's history in looking at efforts to revive American manufacturing.   

It may not be news, yet it may be a good reminder to anyone under 50 employed by a legacy company like GM based on years of success, followed by decline.  


By the way, I'll be presenting with Ron Koller at the Michigan Labor Management Association conference on April 10, 2014 

Michigan: What’s in it for Me? “Why WE Makes Sense”
The Michigan Labor Management Association (MLMA) Partners in Progress Conference
Kellogg Conference Center

More information is here on my speaking events page.  


~  Deb    
 

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Yahoo's Marissa Mayer Is No Fool

Yahoo's Marissa Mayer Is No Fool | Change Leadership Watch | Scoop.it

"Like any good leader, she knows who creates real value, and how, in her company." She's seen and is acting on the performance results.

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...she was predisposed to consider physical (co)presence as essential to digital innovation success...

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Blog author Michael Schrage says,


"Mayer's Google background (and impact) suggested that she was predisposed to consider physical (co)presence as essential to digital innovation success as computational/design brilliance.


…the Googleplex for its employees wasn't health food benevolence, it was to keep people on campus working together."

Deb Nystrom, REVELN's insight:

This is an opposing view to the last ScoopIt post.    Seven (7) months is still a short term view in light of this HBR blogger's view that Ms. Mayer is on the right track.


Previous culture can also be a blind spot.  One culture's success does not always paste onto another's key needs.

Change colleague Liz Guthridge, who specializes in change communication, suggests that leaders Avoid “taser” asks to get others to act, referencing Mayer's style of communicating the change.  I tend to agree with Liz.  Yet, there are bigger issues than communication mistakes.    


Time will tell.  ~ Deb

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Intuit's Scott Cook on Failed Global Expansion: 'We Should've Known Better' [VIDEO]

Intuit's Scott Cook on Failed Global Expansion: 'We Should've Known Better' [VIDEO] | Change Leadership Watch | Scoop.it

Intuit founder Scott Cook and what went wrong the first time they rolled out the company's Quicken tax prep software worldwide.


It would see cultural due diligence was the lesson learned here.  

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We can launch,  ....but then the sales slowed way down.  

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Yes, it seems it was a ethnocentric blind spot.  Paraphrased:  ONLY in the US did we studying the customer & give them exactly what they wanted.  We didn't do that overseas.  

    

Excerpted:

   

We'd get meetings of our global teams together…  We could launch, could get the press, we could fill the channel, we'd get initial evidence.

   

But then the sales slowed way down.   

   

Visiting the Japanese:  150 people crammed into the biggest room we had.   Strategy, plan, dream.  He asked for questions.  In Japan, they don't ask questions of the big guy.  Silence.

   

One engineer, finally, cautiously raised his hand:  Why does our product for Japan look just like an American product?  It was built for Americans, not Japanese.   …And he was right.  Ultimately the root cause problem was too hard to overcome.

   

The root cause was baked into our early decision.   …We build them based on what we knew in the U.S.

   

See the full video here.

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