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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."


_______________________


     

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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Robin Martin's curator insight, March 9, 2013 5:31 PM

Bad move. We shall see!

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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It’s a beautiful time to be alive, educated and entrepreneurial

It’s a beautiful time to be alive, educated and entrepreneurial | Change Leadership Watch | Scoop.it

I grew up watching Star Trek, ...believing t...we would all be using communicators, replicators, tricorders, and transporters. I was optimistic...

    

...I was disappointed. I grew up into a world filled with hunger, poverty, and disease—....a world .... in which people obsess over maximizing their share of the pie. There is a greater focus on building wealth than on bettering the world.

      

_____________________
   
...
This period in human history is unique, because now entrepreneurs can do what only governments and big corporations could do before. 

   

_____________________
    

No wonder so many MBA students want to join investment banks: it is the best way to reap big financial rewards and to get ahead.   ...I’m an MBA myself, so I can be critical about MBAs. I too worked at an investment bank, ...I too used to obsess over building wealth, and didn’t believe I could really make a difference in the world. 

         

...I am here to tell you that you have opportunities that I could not even have imagined when I was young. You can build the Star Trek future that we have dreamed about. 

      

...This period in human history is unique, because now entrepreneurs can do what only governments and big corporations could do before. You are the space cadets with the opportunities to make amazing things happen.



_____________________

    
We need people who care about enriching humanity rather than just themselves. 

_____________________

    


....Whatever you do, don’t take a mindless, meaningless job with a big company just because they offer you a big salary. Try to be somewhere where you can constantly redefine yourself and keep learning. That is what it is going to be about: constant learning and reinvention.

      

The future is going to be what we make it. It can be the Star Trek utopia or a Mad Max wreck, a creative playground or an Orwellian nightmare. That is why we need people with good values and ethics leading the way.  We need people who care about enriching humanity rather than just themselves. 

Deb Nystrom, REVELN's insight:

This gem of a commencement address is well worth a slow, careful reading.  Vivek Wadhwa delivered this address this year at Hult International Business School. It is informative to us all, not just his audience this past summer at the school formerly known as  the Arthur D. Little School of Management.  Click on the photo or title to review the well-researched, technology savvy, compassionate and practical view of what's coming, affecting our families, including changes in livelihood.   I like how the author encourages us to choose other options than just corporate jobs for the big bucks. 


Who is he?

 His bio, from his website is as follows:

Vivek Wadhwa is a Fellow at Arthur & Toni Rembe Rock Center for Corporate Governance, Stanford University; Director of Research at the Center for Entrepreneurship and Research Commercialization at the Pratt School of Engineering,  Duke University; and Distinguished Fellow at Singularity University. He is author of  “The Immigrant Exodus: Why America Is Losing the Global Race to Capture Entrepreneurial Talent”—which was named by The Economist as a Book of the Year of 2012, and ” Innovating Women: The Changing Face of Technology”—which documents the struggles and triumphs of women.  He was named by Foreign Policy Magazine as Top 100 Global Thinker in 2012. In 2013, TIME Magazine listed him as one of The 40 Most Influential Minds in Tech.  

    

 ~  Deb

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Deb Nystrom, REVELN's curator insight, October 17, 9:46 PM

I've shared this gem of a commencement address by Vivek Wadhwa on Change Leadership Watch as well as here.  He delivered this address at Hult International Business School. It is informative to us all, not just his audience this past summer at the school formerly known as  the Arthur D. Little School of Management.  Click on the photo or title to review the well-researched, technology savvy, compassionate and practical view of what's coming, affecting our families, including changes in livelihood.   I like how the author encourages us to choose other options than just corporate jobs for the big bucks. 

    

Who is he?    His bio, from his website is as follows:
    
Vivek Wadhwa is a Fellow at Arthur & Toni Rembe Rock Center for Corporate Governance, Stanford University; Director of Research at the Center for Entrepreneurship and Research Commercialization at the Pratt School of Engineering,  Duke University; and Distinguished Fellow at Singularity University. He is author of  “The Immigrant Exodus: Why America Is Losing the Global Race to Capture Entrepreneurial Talent”—which was named by The Economist as a Book of the Year of 2012, and ” Innovating Women: The Changing Face of Technology”—which documents the struggles and triumphs of women.  He was named by Foreign Policy Magazine as Top 100 Global Thinker in 2012. In 2013, TIME Magazine listed him as one of The 40 Most Influential Minds in Tech. 

     

 ~  Deb

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Germany Extends Free College Education To All Students In The U.S.

Germany Extends Free College Education To All Students In The U.S. | Change Leadership Watch | Scoop.it

“[Tuition fees] discourage young people who do not have a traditional academic family background from taking up study."

....[I]t was decided that from this year on, college education in the country will be free for all students. This week, as the last German state to abolish tuition fees makes its transition to free education, Germany announces that it is extending its gift of knowledge to students from the U.S. and around the world.

German universities do have a request for foreign students....a conversational fluency of German is a prerequisite for applicants coming from outside the country...[and it is] difficult...to learn the language. Fortunately, there are plenty of programs both in Germany and in the U.S. that offer courses on basic and advanced German.

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  • Stay in touch with Best of the Best ScoopIt news, taken from Deb's  NINE multi-gold award winning curation streams  Preview it here, via REVELN Tools.

 

Deb Nystrom, REVELN's insight:

Germany had free tuition before.  They experimented with allowing regions to charge tuition, and many opted to go back to the tuition free model. There are lessons to be explored here, perhaps from Americans who may choose learning German and study abroad.  

An alternative view has been published in Forbes:  ~  There is No Such Thing as a Free College Education, mentioning German culture and the taxes difference in Germany..  ~  Deb

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The Ways Big Cities Think and Successfully DO Large-Scale Change

The Ways Big Cities Think and Successfully DO Large-Scale Change | Change Leadership Watch | Scoop.it

"Change on a grand scale ... is hard, but it’s not impossible."   Living Cities, a long-standing collaborative of 22 of the world’s leading foundations and financial institutions, created the Integration Initiative to accelerate the pace of change in U.S. cities.

     

We worked with five cities tackling seemingly intractable challenges such as urban revitalization in Detroit and education and health in Newark.
       

Get the right players to the table.    ...We asked cities to start from the results that they wanted to achieve, and then to determine who needed to be at the table in order to achieve them. Often, this meant bringing people together who were not used to working together.

     

We saw the greatest success when ….strong chairs who had credibility in multiple sectors, were willing to push the group to prioritize, and were committed to changing how their own institutions worked in order to push others to do the same. …achieving their goals required significant behavior change from multiple players who didn’t necessarily see themselves as part of the same systems even though they served largely the same families and neighborhoods. 

       

For example, …a school superintendent and the head of a community development bank …both play an important role in connecting underserved communities to jobs and essential services such as education, training, child care, health care and housing, and ensuring that those opportunities exist in the first place.

      

Also:    Reimagine roles.    …challenge long-held orthodoxies that can limit progress….

         

Build, measure, learn, and declare.     …The most successful cities have adopted a lean “build, measure, learn” approach. They use data to measure, in real time, whether their indicators are trending up, learn whether their approaches are working and then stay or change course as needed.


Deb Nystrom, REVELN's insight:

From the article, "Large scale change takes on new meaning when it involves large cities and "bringing people together who were not used to working together."   Yep.  The article highlights new  perspectives by those who find they are serving "largely the same families and neighborhoods."  
          
Via  these two cities, there are some additional lessons learned:

       

Detroit & Vegas – A Tale of Two Cities as Our Comeback Kids


~  Deb   

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Content Curation at Work: Startupery - A Library of Startup Best-Practices Curated by True Subject Matter Experts

Content Curation at Work: Startupery - A Library of Startup Best-Practices Curated by True Subject Matter Experts | Change Leadership Watch | Scoop.it

Via Robin Good
Deb Nystrom, REVELN's insight:

Take start-ups & entrepreneurs, add content curation by SMEs, subject matter experts, viola!  It's a handy resource worth a good look to support entrepreneurs and the growth of their companies.  ~  D

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Robin Good's curator insight, July 12, 9:34 AM



Startupery is a new online resource which organizes and curates best-practices, strategy advice, tips and methods for business startups.


The present library currently comprises over 500 hundred resources organized under 372 topics by 12 selected "experts", which include, among others, Fred Wilson (Vevnture Capitalist), Eric Ries (The Lean Startup), Chris Dixon (Investor) and Brad Feld (Early Stage Investor / Entrepreneur). 


For each expert you will find a page outlining his profile and presenting, in a categorized fashion, a selected number of sources suggested by him.


"For years, and now more than ever, startup founders, investors and operators have been sharing advice on how to succeed in business. From personal blogs to up-and-coming publications, this advice has been scattered and often hard to find when you need it mostStartup{ery is a library for this advice, giving each resource and the important topics that they cover a home on the internet."


An excellent and well-organized resource hub for startups, Simple, easy to navigate and staffed by a highly reputable set of subject-matter-experts / curators.

A great example of the value that content curation can bring to just about any field, where there is lot of precious information scattered around and which can greatly benefit from competent and trusted "organizers". 


Free to use.



Startupery: http://startupery.com/ 


Added to Content Curation Examples board.





Pierre Dejean's curator insight, July 12, 10:16 AM

Great content about Start-up ! 

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Workers fight for culture, wages and win: Demoulas, reinstated as CEO, Market Basket

Workers fight for culture, wages and win: Demoulas, reinstated as CEO, Market Basket | Change Leadership Watch | Scoop.it

Boston Herald: TEWKSBURY, MA — Arthur T. Demoulas was reinstated as CEO late last night after a two-month standoff over his firing that saw rank-and-file workers walk off their jobs and customers jump to competitors in protest — thanked his workers this morning, hours after his historic purchase of the company.

   

______________

  

“You taught everybody that Market Basket is a place where respect, honor and dignity is a way of life.” ~ Arthur T. Demoulas, reinstated CEO, Market Basket

______________

      


"You are simply the best,” Demoulas said …There is very little I can ever add to your brilliant work…and the power of your enduring human spirit over the past six weeks.”

    

Early this morning, a massive fleet of delivery trucks lined up ready to roll and hundreds of ecstatic employees reported to work for the first time in weeks....heralding the return of a boss they said had provided generous pay and benefits and a culture of respect for workers.


“You taught everybody that Market Basket is a place where respect, honor and dignity is a way of life,” Demoulas told his workers. “You displayed your unwavering dedication and desire to protect the culture of your company...You have demonstrated that everyone has a purpose....that no one person holds a position of privilege.”

   

The chain employs 25,000 workers in Massachusetts, Maine and New Hampshire.  [It was worth] $4 billion before Arthur T.’s June 18 firing touched off a customer boycott and employee walkouts.  [It] racked up millions in losses and shelves were left empty due to a halted supply chain.

   

Demoulas said he hopes to take less than two weeks getting shelves restocked and stores back to some semblance of normalcy.


Click the title or photo to see the full story.

    

Related posts by Deb:

    

Revelation, Leadership Integrity at All Levels

    

Company Priorities Reveal People Values and Forecast Long Term Profitability

      

6 Steps Beyond Industrial Age Performance Appraisals

    

Think like an Entrepreneur: Be Anti-Fragile No Matter Where You Work

   

  • Stay in touch with the monthly Best of the Best news, taken from Deb's  multi-gold award winning curation streams.  Preview it here, via REVELN Tools.

        

  • Are you local to SE Michigan?  Find out more about horse-guided leadership development sessions (no fee demos) for individuals by contacting Deb, after reviewing her coaching page here.  
Deb Nystrom, REVELN's insight:

I haven't heard of a worker celebration like this since Henry Ford doubled wages and in effect, created middle class prosperity. Maybe more companies will take notice of employee ownership successes like these, also like Costco and Zingerman's in Ann Arbor.

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Deb Nystrom, REVELN's curator insight, August 28, 12:49 PM

I haven't heard of a worker celebration like this since Henry Ford doubled wages and in effect, created middle class prosperity. Maybe more companies will take notice of employee ownership successes like these, also like Costco and Zingerman's in Ann Arbor.

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It's the People First, Then the Results: Zappo's 3-Day Culture Camp

It's the People First, Then the Results:  Zappo's 3-Day Culture Camp | Change Leadership Watch | Scoop.it

Zappos offers a 3 Day -  WOW customer service philosophy immersive experience.   Their video of CEO leaders who've adapted to customer centric and people-oriented culture explains a lot.

What Our Customers Say.
 

Deb Nystrom, REVELN's insight:

Keep in mind that what works for Zappos, may not what will work for your organization.  That said, Zappos has made the complete leap from the inspection oriented, command and control culture of the 20th century to the 21st century of trusting the people you have so carefully hired, and supporting them continuously in doing their best work.   ~  Deb

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Waigaya Is the Way, Beyond the Hierarchy at Honda, On the Shop Floor

Waigaya Is the Way, Beyond the Hierarchy at Honda, On the Shop Floor | Change Leadership Watch | Scoop.it

At the Japanese auto giant, unplanned, agenda-free meetings are ubiquitous and indispensable.


None of the conference rooms were available, so the meeting was held in a maintenance closet...


Shoehorned into the room were factory floor managers, assembly line associates ...and quality control experts at the Anna, Ohio, engine plant, where Honda has been making motors and drivetrain components since 1985. 


...All points of view or suggestions are equal.  A serious crisis on the plant floor spurred [a} spontaneous meeting. 


Such unplanned, shapeless gatherings are the hallmark of the Honda Way. They are called waigaya, ...a name given them by Takeo Fujisawa, the business partner of company founder Soichiro Honda...


On that day…, away from the thrum of the factory, …a Honda manager said to the others, “Look, I’d prefer not to belabor this issue because we’ve got a lot of work to do to get this process moving. And since the fix will be such a time sink, let’s not make it worse by losing more time discussing it.”

    

Although most in the room concurred with the manager, one of the associates noted… “We’re doing something very wrong if a slight problem in the engine isn’t addressed until the end of the vehicle’s assembly line…   We should have discovered this problem before.”


Deb Nystrom, REVELN's insight:

Equality of viewpoints, perspective, fixing problems in real time, this is the modern company.    Honda's brand is focused on

their Fundamental Beliefs of:

  • Respect for the Individual
  • The Three Joys:   The Joy of Buying, Selling, and Creating
    

Management Policy includes:

  • Proceed always with ambition and youthfulness.
  • Enjoy your work and encourage open communication.
  • Strive constantly for a harmonious flow of work.


The example of the meeting in a broom closet illustrates a less hierarchical approach. Hierarchy has advantages, but is also not as necessarily in Honda's fluid approach.  What do you find useful in the Honda example?  `  Deb

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What Works in the New Metropolis: The New Urban Pioneers

What Works in the New Metropolis: The New Urban Pioneers | Change Leadership Watch | Scoop.it

Meet the official in Chattanooga who built the fastest internet in the western hemisphere, the technocrat who revolutionized public transportation in Helsinki, the Berkeley professor who’s creating 3-D data maps of how cities work and more.

___________________

Singapore, ...first drafted its plan in the 1960s...followed so closely and creat[ing] such an economic powerhouse that the city-state now exports its urban know-how...created an economy unto itself.
_______________________



As Adie Tomer and Robert Puentes, fellows at the Brookings Metropolitan Infrastructure Initiative, put it: “It all starts with cities making a concerted effort to understand who they are and where they want to go.” Singapore, for example, first drafted its plan in the 1960s, and it has been followed so closely and created such an economic powerhouse that the city-state now exports its urban know-how, hosts conferences about planning, and assists cities around the world with their infrastructure issues—for a price. The plan, in other words, has created an economy unto itself.


_______________________


… in smaller urban areas, businesses often grow even faster than ….than in a vast metropolitan region, where they are one among many.

_______________________


 

For another approach...visit Edmonton, Alberta. Its City Vision 2040 program breaks down city planning into six categories (finance, green, grow, live, move, and prosper), and then looks at what works and doesn’t work. ....it considers all aspects of expansion, from the impact on Edmonton’s neighboring municipalities to current patterns of development, transportation, and land use. The Municipal Development Plan is debated publicly...different views and more ideas are brought to the table. .... transparency makes it easier for the public to buy into a plan for their city’s future.
 

The builders of smart cities have also learned....a single building or neighborhood might serve as the best test bed for trying out ideas. Boston’s Innovation District is one such example. There, 1,000 acres of South Boston waterfront has become its own talent draw, providing affordable office space, services such as Internet and office supplies and networking events.


... these special districts is that they can exist and thrive in cities large and small. In fact, in smaller urban areas, businesses often grow even faster than they would in a vast metropolitan region, where they are one among many.

 

Related tools & posts by Deb:

    Stay in touch with Best of the Best news, taken from Deb's  NINE multi-gold award winning curation streams from @Deb Nystrom, REVELN delivered once a month via email, available for free here,via REVELN Tools.

         

     

                   

     
Deb Nystrom, REVELN's insight:

Yes, planning can work, and the idea of small implementation pilots has long been a good one in these case study examples. Note that one city's plan, does not a template make, but can serve as useful lessons noting that culture, beliefs and behaviors could vary significantly from one area to another.  ~  D

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Doing Well by Doing Good: Michigan's Fave Food Brand Converts $50 Mil Business Into Worker-Owned Co-Op

Doing Well by Doing Good: Michigan's Fave Food Brand Converts $50 Mil Business Into Worker-Owned Co-Op | Change Leadership Watch | Scoop.it
Zingerman's Community of Businesses is a staple of Ann Arbor, and it's achieved great success through highly unorthodox practices.


The flagship deli, founded in 1982, is now just one of nine businesses in the Zingerman's Community of Businesses, which also includes a bakery, creamery, candy company, and restaurant.


These businesses are founded on a unique philosophy without traditional business hierarchy.  Zingerman's emphasize collective decision-making.  [Now] ...the company is on track to make $50 million this fiscal year.


A worker co-op is an old business model that has seen renewed interest post-recession due to a lack of investors creating jobs in communities.


Zingerman's has been focused on getting its employees to think like owners long before hard economic times.

Deb Nystrom, REVELN's insight:

Employees who think as owners?   What a concept - that's been around for ages, just not implemented widely.  Here's why it is working, from the article:

   

  • Open-book management:  even the lowest-level employee will work better if they know how the company is doing financially and should have a stake in its success.
        
  • Weinzweig and the 17 other partners, who act as managers, want to find a way to get employees involved in the consensus, rather than just sitting in to ask questions and offer insight. ....Essentially, that could give someone like [a] new part-time employee as much voting power as the CEO.
        
  • Weinzweig thinks that traditionally managed organizations, in which executives operate in a different sphere from their employees, "are operating with about 5% of their intellectual and creative capital, which really doesn't make sense."
    
It's a competitive, global world now, and traditional management, born out of the wide open markets of the industrial age, are no longer as competitive without the insights of all stakeholders, especially staff / employees.
    
~  Deb
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Deb Nystrom, REVELN's curator insight, June 20, 7:33 PM

As I commented originally on Change Leadership Watch:  Employees who think as owners?   What a concept - that's been around for ages, just not implemented widely.  Here's why it is working, from the article:

   

  • Open-book management:  even the lowest-level employee will work better if they know how the company is doing financially and should have a stake in its success.
        
  • Weinzweig and the 17 other partners, who act as managers, want to find a way to get employees involved in the consensus, rather than just sitting in to ask questions and offer insight. ....Essentially, that could give someone like [a] new part-time employee as much voting power as the CEO.
        
  • Weinzweig thinks that traditionally managed organizations, in which executives operate in a different sphere from their employees, "are operating with about 5% of their intellectual and creative capital, which really doesn't make sense."
    
It's a competitive, global world now, and traditional management, born out of the wide open markets of the industrial age, are no longer competitive without the insights of all stakeholders, especially staff / employees.
    
~  Deb
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Not the biggest, or the last recall: U.S. Fines General Motors $35 Million for Lapses on Ignition-Switch Defect

Not the biggest, or the last recall: U.S. Fines General Motors $35 Million for Lapses on Ignition-Switch Defect | Change Leadership Watch | Scoop.it

Federal regulators report GM has agreed to change its internal review process after a flaw linked to 13 deaths and a vast recall.

   

Excerpts:

G.M. agreed to make “significant and wide-ranging internal changes to its review of safety-related issues in the United States, and to improve its ability to take into account the possible consequences of potential safety-related defects.”

      

The faulty ignition switch, in Chevrolet Cobalts, Saturn Ions and other cars, was prone to turn off if it was jostled or weighed down, shutting the engine, and disabling the air bags and power-assisted systems like steering and brakes. G.M. has linked the defect to 13 deaths and 32 crashes.

   


“...Today’s announcement puts all manufacturers on notice that they will be held accountable if they fail to quickly report and address safety-related defects,” Transportation Secretary Anthony Foxx said.


Also, three (3) trust-related posts by Deb on REVELN:


Teamwork can also be the “secret sauce” that defines successful organizations.  Our systems for supporting high performance and leadership in teams and in entire organizations have not kept up with the times. 

     

Change Leaders: Why Should Anyone Trust Your Vision? John Kotter & Harvard Business Review

     

John Kotter’s highlights of some common assumptions about how leaders approach change.
    
Change, Ethics, Trust & Timing for your Talent Management Decisions

    

Hewitt's report features how plans on paper don’t translate to reality in the workplace when it comes to recruiting, developing and retaining talent.
Deb Nystrom, REVELN's insight:

From the article and New York Times video:  There are 30,000 parts in the average car.  This GM problem was due to a 90 cent ignition switch.  The GM recall involved 2.6 million cars.   This recall doesn't even crack the top 10 in history.


_____________
    

The Ford Pinto was called, "the BBQ that seats 4."  

_____________


The Ford Pinto, a 1978 recall, is one of the best known, with a damaging brand impact lasting for years.  The Pinto was called, "the BBQ that seats 4."  Recently,Toyota, was lambasted for covering up a sticking accelerator pedal problem, featuring evidence of how they mislead the public and failed to report the problem in a timely way.


From the Times, "...As bad as they [the recalls] sound" and from me, the mistakes are varied and useful for understanding the complexities of big organizations.  That deaths occur is tragic, very tragic.  For this reason alone, it is yet another important cautionary tale about complex systems, yet simpler fixes:


1) clear the way to communicate with your customers and regulators,


and


2) don't mess around with anything that can damage public trust in your big business.   ~  Deb

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Compensation Bloat? University of Michigan faculty question administrator pay in open letter

Compensation Bloat?  University of Michigan faculty question administrator pay in open letter | Change Leadership Watch | Scoop.it

An open letter to University of Michigan's Board of Regents from about a dozen of the school's faculty criticizes the school's administrative pay and bonus system. "The University is in desperate and urgent need of fiscal reform." 


____________________
   
The authors argue that U-M is not transparent about its pay supplements...some administrators received...in excess of $50,000.

     

____________________


The authors argue that U-M is not transparent about its pay supplements, and that they are an unwise use of money from the general fund. Data obtained by the professors show that some administrators received salary supplements in excess of $50,000.

  

...Anthony Mora, a history professor who helped author the letter, said that while it's reasonable executive officers have higher compensation that most staff, U-M's compensation rates for those officers are between 27 and 41 percent higher than the rates' of administrators at peer institutions such as Berkeley, Texas and Virginia, according to a review done by the faculty.
 

"We want to have an open and candid discussion about the university's resources," Mora said. "I don't see this as an effort to be adversarial with the administration. I think people in the administration are genuine when they say they care about the university. But I do think there's an opportunity here for the faculty and the administration to work together."

Related tools & posts by Deb:

         

  • Stay in touch with Best of the Best news, taken from Deb's  NINE multi-gold award winning curation streams from @Deb Nystrom, REVELN delivered once a month via email, available for free here, via REVELN Tools.

       

              

  

 

Deb Nystrom, REVELN's insight:

Several faculty have taken up the gauntlet to question escalating costs - starting with higher education administrative bonuses.  Executive bonuses may no longer be taken for granted with such moves as these, perhaps prompted by the poorly planned, cost cutting administrative shared services initiative (labeled AST, Administrative Services Transformation)  which, incidentally, did NOT include the faculty voice in its cost cutting planning.


It also involved the use of several consulting firms with expenses totalling over 11 million for consulting services.  As as consultant myself, I know consultant have reasons to charge a high rate, but leaving the faculty voice out of a change initiative mystifies me.


I look forward to hearing where this letter leads in dealing with, perhaps, some unquestioned compensation practices, and perhaps stepping higher education back to a bigger picture of where the value generation resides and how it needs to be valued today.   ~  Deb

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Deb Nystrom, REVELN's curator insight, April 25, 3:59 PM

The escalating costs of higher education may no longer be taken for granted with such moves as these from the core of  the university system, the faculty.

The article also referenced the initially poorly implemented, cost cutting administrative shared services initiative (labeled AST, Administrative Services Transformation)  that did not include the faculty voice in its cost cutting planning and involved the use of several consulting firms with expenses totalling over 11 million for consulting services.  As as consultant myself, I know consultant have reasons to charge a high rate, but leaving the faculty voice out of a change initiative mystifies me.


I look forward to hearing where this letter leads in dealing with, perhaps, some unquestioned compensation practices.   ~  Deb


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Revealed: Apple and Google's wage-fixing cartel involved dozens more companies, over one million employees

Revealed: Apple and Google's wage-fixing cartel involved dozens more companies, over one million employees | Change Leadership Watch | Scoop.it

 “‘Masters are forbidden to poach workers from other members of the craft.' - British medieval ordinances of Bristol cobblers in 1364’” — 
    

This week, as the final summary judgement for the resulting class action suit looms, and companies mentioned (Intuit, Pixar and Lucasfilm) scramble to settle out of court....court documents show shocking evidence of a much larger conspiracy, reaching far beyond Silicon Valley.

    

Confidential internal Google and Apple memos...clearly show that what began as a secret cartel agreement between Apple’s Steve Jobs and Google’s Eric Schmidt to illegally fix the labor market for hi-tech workers, expanded within a few years to include companies ranging from Dell, IBM, eBay and Microsoft, to Comcast, Clear Channel, Dreamworks, and London-based public relations behemoth WPP.

All told, the combined workforces of the companies involved totals well over a million employees.


Read the full article here.

According to multiple so

Deb Nystrom, REVELN's insight:

This is sobering, especially with Google's "Don't be evil" informal corporate motto.  What nefarious dealings ARE THESE to keep the IT folks down, while large profits are enjoyed by executives?    

If this all pans out as it reads in the media, it's not good, tech companies, not good at all.  ~  D 

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Sad but true..  And people wonder why so many leave the high tech corporate world to do start-ups and go it alone rather than be a slave.  This article convinced me that Steve Jobs  was never a good manager, while I could over look some of idiosyncrasies, and still other failings to emotional immaturity Steve in effect became the very thing he hated in other's, a corporate slaver.  

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A new Structure, a new Culture at Microsoft. Why They May get Things Really Right

A new Structure, a new Culture at Microsoft. Why They May get Things Really Right | Change Leadership Watch | Scoop.it

"One Microsoft" is a good example of a strategy that meets today's challenges. Success will come from a HR innovation and cultural transformation, (DN) if they can make it work.


__________________________
     
What is a system favoring careerism worth if it’s to the detriment of the rest of the company, of customers, of stakeholders ? Nothing. 

__________________________

       

“One strategy, One Microsoft” : that’s how Steve Ballmer explained the urgency to move to a product based organization to a function based one involving all product lines in a cross-organization approach.


...The move from a divisional organization to a functional one is everything but easy. 

   

What is a system favoring careerism worth if it’s to the detriment of the rest of the company, of customers, of stakeholders ? Nothing. On the other hand a functional organization is customer and solution driven rather than product driven.


...there’s no better way to kill collaboration, cross-silos work and even innovation than strictly allocating resources on a silo-based fashion.

In short a divisional organization measures its own success, even to the detriment of customers and stakeholders, a functional one measures its success to the value and benefits it creates for others.


The full post is here.



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Deb Nystrom, REVELN's insight:

If they can make it work, it will be one of the biggest change and culture success stories of the decade.  The careerism quote above is a gem.  Time and customers will tell.  ~  D

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Crowdfunding Phenom: Kickstarter CEO Yancey Strickler on Success, Copycats, and 'Broken Promises'

Crowdfunding Phenom:  Kickstarter CEO Yancey Strickler on Success, Copycats, and 'Broken Promises' | Change Leadership Watch | Scoop.it

The crowdfunding model is now a mini-cottage industry, thanks to Kickstarter, and yes, he's been spoofed by 'South Park.'

Excerpts:

...When did the concept of crowdfunding first click for you?

In 2005. I had these artist and musician friends with day jobs that they hated, but they couldn’t afford to just do art or music. There’s a widespread assumption that creative things just magically happen, and they don’t. Creation requires funding.

    

....(order changed)  Today, millions of people use the site each day, adding up to a daily average of $1 million in pledges (some 70,000 campaigns have launched on the site). 

      

...Are there plans to grow the staff?

Actually, no. I think we’ll get to 100 people, but not much beyond that in the near future. Being a small company [means we are] light on costs, and I like the scrappiness of trying to accomplish a lot with a little. There’s far more shared ownership with a small team.
     
...Are you threatened by ...copycat competitors?

I’ve always known others would copy our idea, but to be honest, we’ve always been the strongest product. ....and for most of our measurements -- dollars pledged, site visitors, project supporters -- there’s a huge gulf between us and the rest of the field.

 

Deb Nystrom, REVELN's insight:

FOR THE WIN:  Spot on great ideas, carried to full implementation and sustained in good faith, with some bumps in the road. Overall good ideas, good will and smart business practices will win the day, says I.   As an consultant, there's a lot to like about Kickstarter, including my favorite value in the work world, "choice."  We have a lot that is industrial age about our still new, burgeoning information age.  Fortunately, Kickstarter the concept, and the reality, is not one of them.

I've also included crowdfunding and crowdsourcing as a community building, ownership trend that field of Organization Development (OD), among others, is ignoring in a digital chapter on its way to publication for Wiley for Practicing OD, 2015 edition.

 

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KSU prez gives up $90K of his own salary to give lowest-paid employees a raise

KSU prez gives up $90K of his own salary to give lowest-paid employees a raise | Change Leadership Watch | Scoop.it
"This is not a publicity stunt," he said. "You don't give up $90,000 for publicity. I did this for the people. This is something I've been thinking about from the very beginning."


The raise in pay for those employees will stay in place even after a new president is selected, he said. It will be the rate for all new hires as well. The change is immediate.


His salary, originally $349,869, is now $259,745.

Deb Nystrom, REVELN's insight:

The lead line for the article is, "Now this is leadership."  Perhaps the difference in his before and after salary, and his prior role with GE have inspired him to make an example that may inspire others.


When is a certain level of salary, house, home and possessions enough - so that those with wealth share it with those who struggle to make ends meet?


It reminds me of the video circulating about the homeless sharing their food and money that has been given to them recently, while the average American does not share when asked by someone for food or money.  ~  D

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Tech experts offer to replace Detroit firefighters pop can alert system

Tech experts offer to replace Detroit firefighters pop can alert system | Change Leadership Watch | Scoop.it

Bye bye pop can. That's what the Detroit Fire Department might soon be saying soon to its rigged-up emergency alert system, which could get replaced — for free — by one of several philanthropic software companies who recently learned just how bad things are in Detroit.
   

For Deputy Fire Commissioner John Berlin, the offers to help have been humbling. Calls have come in from as far away as California and Oregon.

     

“It overwhelmed me,” Berlin said of the outpouring of support. “We need so much. ... What I was humbled by was that there was nothing negative said about the city of Detroit, or the bankruptcy. It was simply that they wanted to help. And that set me back a little bit. It humbled me.”

    

.....Detroit firefighter Paul Fillmore said technological upgrades are long overdue. He noted that the department once had a code red system that automatically rang the fire bell at the stations, but it’s been decades since that’s been in place. Instead, firefighters are improvising with pop cans.

       

.....Berlin said for now, fire officials are still gathering information from the interested parties who want to help. He said he wants to make sure that a company’s donation is used to its fullest potential.



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Deb Nystrom, REVELN's insight:

Great for Detroit!  One of several companies that are doing well financially offers to helps Detroit get back on its feet by updating Detroit's decrepit firefighter's internal emergency alert system.
    

It's good they found a low-cost solution initially with a non-existent Detroit tech-upgrade budget.  It's also good to know more are reaching out to help, as well as helping their own visibility for the work they do.  ~  Deb

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Proprane-producing E. Coli Provides Biosynthetic Alternative to Fossil Fuels

Proprane-producing E. Coli Provides Biosynthetic Alternative to Fossil Fuels | Change Leadership Watch | Scoop.it

Propane is an appealing fuel, easily stored and already used worldwide, but it’s extracted from the finite supply of fossil fuels – or is it? Researchers at Imperial College London and the University of Turku have engineered E. coli bacteria that create engine-ready propane out of fatty acids, and in the future, maybe even sunlight.


 _______________________________
   
"Although we have only produced tiny amounts so far, the fuel we have produced is ready to be used in an engine straight away. This opens up possibilities...to replace fossil fuels..."


_______________________________
     


...Propane is cheaper and easier to condense into liquid than other available gaseous fuels, such as hydrogen. And it’s arguably a better synthetic candidate than liquid fuels which can be detrimental to their living bacterial factories and require purification from the host once produced.


With the premise of producing a fuel that’s more sustainable in a biological host and easier to bring to market, the research team engineered a pathway in E. coli that interrupts the conversion of fatty acids into cell membranes and instead couples naturally unlinked enzymatic processes to manufacture propane.


..."Although this research is at a very early stage, our proof of concept study provides a method for renewable production of a fuel that previously was only accessible from fossil reserves," said Dr Patrik Jones, from the Department of Life Sciences at Imperial College London. "Although we have only produced tiny amounts so far, the fuel we have produced is ready to be used in an engine straight away. This opens up possibilities for future sustainable production of renewable fuels that at first could complement, and thereafter replace fossil fuels like diesel, petrol, natural gas and jet fuel."


Via Dr. Stefan Gruenwald
Deb Nystrom, REVELN's insight:

The tiniest amount of a new discovery can end up fueling, literally, a whole new world.  A new industry was started by Andrew Carnegie based on what was then extraordinarily expensive steel to build the 1874  Eads Bridge, the longest arch bridge in the world.  ~  D

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Classic: What is success? Do You Have the Will to Lead and Answer the Toughest Questions? - Peter Koestenbaum

Classic:  What is success?  Do You Have the Will to Lead and Answer the Toughest Questions? - Peter Koestenbaum | Change Leadership Watch | Scoop.it

Philosopher Peter Koestenbaum poses the truly big questions: How do we act when risks seem overwhelming? What does it mean to be a successful human being?

___________________

   

How can we muster the guts to burn our bridges and to create a condition of no return?

___________________

       

{Have you asked yourself:]  How in the world did I get here? Or wrestled with ...strategic choices -- all of which seem hard and unpleasant -- and said, What happened to the fun part of being in business? According to Peter Koestenbaum, those uncomfortable questions -- those existential quandaries -- are at the root of issues that great leaders deal with all the time, and they influence every decision that must be made.
  
More than 25 years ago, Koestenbaum traded the cloistered halls of academia for the front lines of the global economy. It's not unheard-of for this philosopher, a tireless 71-year-old with thick glasses and a flowing beard, to visit clients across three continents in a single week. His agenda: to apply the power of philosophy to the big question of the day -- how to reconcile the often-brutal realities of business with basic human values -- and to create a new language of effective leadership. ...The more you understand the human condition, the more effective you are as a businessperson. Human depth makes business sense."

     

___________________

   


Change -- true, lasting, deep-seated change -- is the business world's biggest and most persistent challenge. 

___________________

   

Koestenbaum's wisdom makes sense to leaders at such giant organizations as Ford, EDS, Citibank, Xerox, Ericsson, and even one of Korea's chaebols. ... At Ford, Koestenbaum contributed to the company's 2,000-person Senior Executive Program throughout the 1980s. In more than a decade at EDS, he led seminars and coached hundreds of top executives, including then-chairman Les Alberthal. 


"Everything I do," says Koestenbaum, "is about using themes from the history of thought to rescue people who are stuck." His logic: Change -- true, lasting, deep-seated change -- is the business world's biggest and most persistent challenge. But too many people and too many companies approach change by treating it as a technical challenge rather than by developing authentic answers to basic questions about business life. 


WHY DOES BEING A LEADER FEEL SO HARD TODAY?

Because reckoning with freedom is always hard ...We're living in a peculiar time: It's marked by a soaring stock market, the creation of tremendous wealth, an explosion in innovation, and the acute alienation that occurs when the global economy hits the average individual. 

The message is, You're living in the best country in the world at the best time in history; you have an amazing degree of freedom to do what you want, along with an unprecedented opportunity to build immense wealth and success -- and to do it more quickly than ever before. Of course, the average individual has as much of a chance of launching a skyrocketing IPO as he or she has of becoming a movie star. 

       
________________________________
     
There's a terrible defect at the core of how we think about people and organizations today. ...There is little or no tolerance for the kinds of character-building conversations that pave the way for meaningful change.

________________________________

       

What's even more disturbing is that the ascendancy of shareholder value as the dominant driving force in business has resulted in a terrible insensitivity to basic human values. 

THAT'S A HEAVY BURDEN TO PLACE ON LEADERS. THEY MUST NOT ONLY GUIDE ORGANIZATIONS BUT ALSO WRESTLE WITH BASIC PHILOSOPHICAL QUESTIONS.


There's a terrible defect at the core of how we think about people and organizations today. There is little or no tolerance for the kinds of character-building conversations that pave the way for meaningful change. The average person is...riveted by the objective domain...where our metrics are; that's where we look for solutions. ...That's why books and magazines that have numbers in their titles sell so well.


We'll do anything to avoid facing the basic, underlying questions: How do we make truly difficult choices? How do we act when the risks seem overwhelming? How can we muster the guts to burn our bridges and to create a condition of no return?

     

___________________

   

...Managing polarity teaches us that there are no solutions -- there are only changes of attitude. 
___________________


There's nothing wrong with all of those technical solutions. They're excellent; they're creative; they're even necessary. But they shield us from the real issues: What kind of life do I want to lead? What is my destiny? How much evil am I willing to tolerate?

      

...Managing polarity teaches us that there are no solutions -- there are only changes of attitude. When you grapple with polarities in your life, you lose your arrogant, self-indulgent illusions, and you realize that the joke is on you. To get that message makes you a more credible human being -- instantly. 

===
As always in our ScoopIt news, click on the photo, video or title to see the full version of the Scooped post.

    

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  • Are you local to SE Michigan?  Find out more about horse-guided leadership development sessions (no fee demos) for individuals by contacting Deb, after reviewing her coaching page here.  

 

Deb Nystrom, REVELN's insight:

I've recently learned that this classic article is the most downloaded article from Fast Company.  If you read it, you'll see why.  It asks the beautiful, and extraordinarily difficult questions about business and life. Changing perspective, and ultimately changing attitudes, is the big challenge in making lasting change fully sustainable.~  D

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Transform from Industrial Age Design: BetaCodex - Turn Your Company Outside-In!

How to build a devolved cell structured organization and leave the old, slow and bureaucratic structures behind.

As always in our ScoopIt news, click on the photo, video or title to see the full Scooped post.

       

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Deb Nystrom, REVELN's insight:

The Beta Codex network has the thinking and design that will help us finally leave old command and control structures, individualistic thinking behind.  Scientific management had its day, back in the 1950's in wide open economic markets.  In competitive, global, digitally powered, high speed markets, hierarchy is so last century.   It's time to change to agile, cellular design that is as adaptable as the next mobile phone operating system.  ~  Deb 

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5 Brain Myths That Won't Go Away, Getting Facts in 2014

5 Brain Myths That Won't Go Away, Getting Facts in 2014 | Change Leadership Watch | Scoop.it

Scientists are not only far from a comprehensive explanation of how the brain works, they can't even agree on the best way to study it. So it's not surprising that myths and misinformation continue to persist —spurred on, in part, by pop culture. But why do we continue to buy into these falsehoods?.

Myth: You are either right- or left-brained dominant.

    

"In reality, we are all whole-brain users." said Shelton. "But this myth helps people define their differences, similar to calling someone male or female. So if you define yourself as right-brained, it immediately connects you with a set of predetermined qualities."

     

Other debunked myths in this useful piece:

   

Myth: You only use 10 percent of your brain.

Myth: Alcohol kills brain cells.

Myth: Brain damage is permanent.

Myth: Your IQ is a fixed number.

      

As always in our ScoopIt news, click on the photo or title to see the full Scooped post.

       

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Deb Nystrom, REVELN's insight:

Brain sapping beliefs persist and drain productivity and performance in business and in overall learning.  Check the job descriptions in your business for words like "must be able to multi-task."  

Check manufacturing employee schedules for overloaded work-days such 12 hour days 7 days a week.  It's happening in businesses making record profits and NOT hiring temp staff to even out the work load.

At least this good article brings us up to date on brain science.  There is a long way to go.   ~  Deb 

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Manish Puranik's curator insight, August 4, 1:31 AM
"In reality, we are all whole-brain users..."
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Entreprenuers Can Be Anyone, Take Action, Deal with Failure, Push: Professor Saras Sarasvathy > Big Think

Entreprenuers Can Be Anyone, Take Action, Deal with Failure, Push:  Professor Saras Sarasvathy > Big Think | Change Leadership Watch | Scoop.it

Listen to a video of Associate Professor, Darden School of Business, at University of Virginia discussing entrepreneurial  and "effectuation", principles.


She also covers:

  • How Good Business Goes Bad
  • Innovation
  • A Little Recession  (the place of failure)
  • Business Success
  • Effectuation, the Entrepreneurial Method 
  • Seeing the World through Entrepreneurial  Glasses
  • The Entrepreneur in Us All


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Deb Nystrom, REVELN's insight:

You can find articles on professor Saras Sarasvathy work, but the best wasy to understand her is to listen to her live.  She shares a passion for entrepreneurship in her voice and expression that is helpful to experience and from which to learn.  

I listed her as the key resource in my recent SlideShare presentation:  

Think like an Entrepreneur: Be Anti-Fragile No Matter Where You Work . ~  Deb

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Deb Nystrom, REVELN's curator insight, June 25, 9:31 AM
You can find articles on professor Saras Sarasvathy work, but the best was to understand her gems on thinking as an entrepreneur is to listen to her live.  She shares a passion for entrepreneurship in her voice and expression that is helpful that brings "effectuation" principles of business to life.


I listed her as the key resource in my recent presentation to the American Business Women's Association, the Maia Chapter, here:

Think like an Entrepreneur: Be Anti-Fragile No Matter Where You Work


~  Deb

Marie Jeffery's curator insight, June 26, 8:24 AM

Great presentation on thinking like an entrepreneur, shared by Deb Nystrom.

 

www.kminstitute.org

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Jamie Dimon Comments on $100M investment in Detroit JPMorgan Chase

Jamie Dimon Comments on $100M investment in Detroit JPMorgan Chase | Change Leadership Watch | Scoop.it

Good news for Detroit.   What's the motivation?   Jamie Dimon, the CEO of JPMorgan Chase, tells TODAY's Matt Lauer in an exclusive interview that his company's $100 Good investment in the city of Detroit isn't about public relations. 


"The cynic would be wrong," Dimon told Lauer when asked if the investment was in response to a $13 billion fine levied against the company in an exclusive interview.


_________________

"I think we can make this our finest moment...if we can come together and help rebirth here." ~ Jamie Dimon, CEO

_________________

"We invest and develop communities around the world. And we've been doing this since our heritage started 200 years ago," said Dimon. "So that's what banks do. They do it commercially. They do community development."


"I think we can make this our finest moment,'' he said. "Can Americans come together, business, labor, civics...government come together and build something and fix the city? You've seen rebirth of cities all over America. I think it would be an unbelievable thing if we can come together and help rebirth here."


...Lauer asked Dimon what he expects at the end of the investment's five-year period.     "Jobs and population,'' Dimon said. "If it works, you'll have a healthy and vibrant economy, jobs and population, businesses will beget home ownership, better schools, and a completely revived city." 


Read the full interview here.


More about investing in cities by Deb here:  

     

Detroit & Vegas – A Tale of Two Cities as Our Comeback Kids 

      

Future Midwest in Detroit, A Retrospective – Photo, Video Set

      

In Detroit, Entrepreneurs Meet Success in Hard Times

     

Stay in touch with Best of the Best news, taken from Deb's  NINE multi-gold award winning curation streams from @Deb Nystrom, REVELN delivered once a month via email, available for free here via REVELN Tools.

Deb Nystrom, REVELN's insight:

All breaths of fresh air are welcome, as, indeed, it could be great hope for the city to rise up to be a  "shining example, of what can be done," if it stimulates more investment, creates jobs and revival, once again.   

The cities are the heartbeat of our nation.  This is great news for Detroit.  ~  Deb

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Women CEOs and the Glass Precipice: New Research on Why

Women CEOs and the Glass Precipice:  New Research on Why | Change Leadership Watch | Scoop.it

Carly Fiorina, forced out. A MERE 5% of the chief executives of the world’s biggest companies are women. And they are more likely to be sacked than their more numerous male colleagues: 38% of the female CEOs who left their jobs over the past ten years were forced to go, compared with 27% of the men. 
     
In the Strategy& study, the clumsy new name for Booz & Company, 35% of female CEOs are hired from outside the company, compared with just 22% of male ones.

  • Outsiders generally have a higher chance of being kicked out, 
  • Generate lower returns to shareholders
  • Outsiders are less likely to have a support network of friends who can rally around when times get tough. 
         

Carly Fiorina, dropped as HP’s boss in 2005, made things worse by inviting such publicity. But the same is not true of, say, Ginni Rometty, the lower-profile boss of IBM (promoted from within the company in 2012), who is under fire over the firm’s performance.


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Deb Nystrom, REVELN's insight:

The change leader implication, as described in the article, is the call to action on 1) developing the leadership pipeline for female future CEOs,  2) helping diminish raiding due to scarce supply, which tends to be counterproductive for women's careers anyway, and 3) increasing success by having more women available to promote from within.  ~ Deb


Also posted to Careers and Self-Aware Strength.

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Deb Nystrom, REVELN's curator insight, May 6, 9:11 AM

This is a useful gender perspective on leadership development and, as the article concludes, a call to action on 1) developing the leadership pipeline for female future CEOs,  2) helping to prevent raiding because of scarce supply, (and it's counterproductive anyway, the research suggests) and 3) increasing success by having more women to promote from within.  ~  Deb

Tamkin Amin's curator insight, May 15, 5:03 PM

hmmm... I find this interesting.

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7 Secrets of Union Management Success with Teams, Michigan News

7 Secrets of Union Management Success with Teams, Michigan News | Change Leadership Watch | Scoop.it

What are the 7 secrets to sustainability with teams, management and unions? We presented our lessons learned at the recent Partnerships in Progress Michigan Labor and Management Association (MLMA) Conference in East Lansing, Michigan."


Overview:  Once what I want differs from what you want, we are in conflict. Conflict will naturally increase when shifting from a supervisor-to-employee model to a team model. This presentation describes a whole system, top to bottom and side to side process to implement teams in a union environment.


The “from me to we” shift is continuous process that requires a different type of renewal annually. With commitment to this approach, everyone from top management and union officials down to frontline supervisors and employees can mutually benefit.


The full slideshare and photo set is here or go to:

http://reveln.com/7-secrets-of-union-management-success-with-teams-mlma/



Deb Nystrom, REVELN's insight:

Sustainability means "Never check the box" (the work never finishes) along with elevating the importance of growing relationships within and among union and management leaders and the work community.

This was one of my own recent presentations with Fenwick Koller Associates, who have made great progress in helping teamwork happen and sustain itself within very tradition-bound settings.  Let us know if you agree. 

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Deb Nystrom, REVELN's comment, April 25, 10:31 AM
GABY, you are welcome!
Deb Nystrom, REVELN's curator insight, May 6, 3:57 PM

The full slideshare and photo set is here or go to:

http://reveln.com/7-secrets-of-union-management-success-with-teams-mlma/

Scooped by Deb Nystrom, REVELN
Scoop.it!

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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