Transforming the Clunky Organization: Pragmatic Leadership Skills for Breaking Inertia

TRANSFORMING THE CLUNKY ORGANIZATION

Pragmatic Leadership Skills for Breaking Inertia

SAMUEL B. BACHARACH

Published in Association with Cornell University Press

ITHACA AND LONDON

To my ILR students who have accompanied me on this journey. Thank you!

(1974–2016)

Contents

PREFACE: THE PRAGMATIC LEADER AND ORGANIZATIONAL INERTIA

ACKNOWLEDGMENTS

1. THE CHALLENGE OF INERTIA

Sluggish Organizations: Clunky and Myopic

The Inertia of the Clunky Tendency

Sprawling Expansion

The Inertia of the Myopic Tendency

The Blinder Traps

Reaching Potential: Leading for Discovery and Delivery

Robust Discovery

Contextual Competence: Leaders as Explorers

Ideational Competence: Leaders as Innovators

Focused Delivery

Political Competence: Leaders as Campaigners

Managerial Competence: Leaders as Sustainers

2. LEADING FOR ROBUST DISCOVERY

Explore the Context

Scan for Information

Read Weak and Strong Signals

Partner for Direction and Execution

Facilitate Ideation

Structure Information Flow

Frame the Challenge

Lead for Ideation

Maintain Hot Group Culture

3. LEADING FOR FOCUSED DELIVERY

Campaign for Support

Create a Coalition Mind-Set

Anticipate Where Stakeholders Are Coming From

Overcome Resistance

Sustain Momentum

Monitor for Tight and Loose Execution

Maintain Commitment and Direction

CONCLUSION: PRAGMATIC LEADERSHIP AND THE COUCH-POTATO ORGANIZATION

NOTES

INDEX

Preface

THE PRAGMATIC LEADER AND ORGANIZATIONAL INERTIA

Organizational leadership is not an end. It’s a pragmatic means to solve a problem!

To appreciate why organizational leadership is important, there needs to be a recognition of the core problems that organizational leaders try to solve. The premise of this book is that the primary organizational challenge for leaders is overcoming inertia.

Have you ever noticed that many organizations are doing fine but just miss the mark? While there is a sense that they are doing fine—and sometimes very fine—they do not quite reach their potential. They are not as agile as they’d like to be, not as responsive to the markets as they used to be, new ideas are no longer incorporated easily, opportunities fall between the cracks, and execution is a bit clumsy. They aren’t going to go out of business tomorrow, but they are showing symptoms of inertia. Indeed, these organizations are not necessarily failing or even on the brink of failure. Some the greatest and best-known organizations go through periods of sluggishness. What makes them vulnerable to inertia? How can inertia be avoided? Pragmatic leaders have the skills to break inertia.

There are two sources of organizational inertia: the clunky tendency and the myopic tendency. The clunky tendency emerges when the organization has unintegrated structures, diffuse authority, overlapping goals, and a general sense of organized anarchy. The myopic tendency is reinforced by outdated practices and old business models. The challenge for pragmatic leaders is to overcome these sources of inertia to make sure that their organizations thrive and reach their potential. They overcome the inertia perpetuated by either clunky or myopic tendencies by making sure that their organizations engage in discovery and delivery.

To break inertia, pragmatic leaders engage in robust discovery by constantly reading the environment, picking up new ideas, and translating those ideas into concrete innovations, changes, and agendas. They then focus on delivery, making sure that these new ideas gain support in their organization, are implemented, and become an integral part of the organization’s agenda rather than fall into the abyss of unfulfilled aspiration.

Using examples drawn from various organizations, leaders, and contexts, section 1 examines the sources of inertia and the organizational challenges inertia presents. Sections 2 and 3 introduce the specific, executable skills pragmatic leaders need to break inertia: robust discovery and focused delivery. Section 2 specifically delves into robust discovery, examining the pragmatic leadership capacity to explore and ideate. Pragmatic leaders need to be contextually competent and explore their environment to understand external challenges and opportunities. They also must be ideationally competent to make sure that ideas gain traction and result in concrete innovation. Section 3 examines the facets of focused delivery, the pragmatic leadership capacity to be politically competent to gain support for ideas, innovations, and projects while being managerially competent, capable of sustaining positive momentum to make sure the ball is not dropped.

If the core challenge of leadership is to make sure that organizations do not become sluggish but thrive and reach their potential, then the simple leadership clichés of inspiration, charisma, great ideas, and interpersonal charm will not suffice. Nor is it enough to talk about execution in the abstract. To break inertia, leaders must concern themselves with pragmatic action directed at five core questions:

Why is the organization sluggish?

What’s out there?

What can be done about it?

What support is needed?

How to implement?

This volume is predicated on the assumption that leaders who have the capacity, not simply to ask these questions, but to do something about the challenges embedded in them, will assure discovery and delivery, thus moving their organization ahead.

Acknowledgments

At any stage in one’s career, writing a book is an accomplishment. But at this later point in my career, I very well know that while accomplishments should be recognized, it is the journey that should be celebrated. There is an old expression in Yiddish that life depends more on luck than on brains. Certainly, that is true of my academic career. Two people made my academic career possible. First, Koya Azumi, who as a young instructor at New York University, on his way to the University of Wisconsin, suggested that I may want to follow his trek out west and consider doing my PhD there. And then there is Michael Aiken, who in 1972 took a chance on a first-generation college graduate from Brooklyn and invited me to join him in Belgium to study the structure of local governments. With that gesture, and with his tutoring through my dissertation, Michael single-handedly opened up a door to a forty-year career. These two are the pillars on which everything else rests.

Ed Lawler, my friend for almost fifty years. Along the way we wrote some books and articles. But who cares? What is important is that for fifty years we have spoken at least twice a week. David Lipsky, who befriended me and guided my early years at Cornell University, and tends to give me more credit than I deserve. Bill Sonnenstuhl, a continuous presence in my family’s life, and an uncle to my son. And the ever-present Peter Bamberger, with whom I’ve shared many a project. While Peter was my premier graduate student and has well exceeded my academic record—and in that, I take great pride—what I truly take great pride in is that the Bacharach and Bamberger families are so enmeshed in friendship.

My Cornell University career has been enriched by an amazing cohort. To name a few: Nick Salvatore, the consummate Brooklyn truck driver, a great historian, has always served as an academic role model. Esta Bigler, a person with whom on any day I could have a real-world conversation, has been an upward mobility partner. Harry Katz, a low-key leader, has modeled for many of us what authentic leadership is about. Bob Smith, the reasonable yet deeply giving associate dean who kept the ILR School going, is proof that leadership is indeed about execution. Tove Hammer and I came to Cornell together as very, very young people. She with her sports car, and I with my attitude. Over the years I appreciated more and more her values, her commitment, and her sense of continuity.

You never write a book alone. I would like to acknowledge the many undergraduates who have shared ideas with me over the years. From my introductory 120 courses in my early years to my weekly internship class in New York City, ILR undergraduates have taught me much.

I am also grateful to the unique graduate students who were part of the New York City–based Master of Professional Studies program, which I was involved with since its inception. These were the best of adult learners, who freely shared their experience and their ideas. Sara Edwards made my life easier by sustaining this program, a remarkable accomplishment.

Just as my students have been of great assistance, I have learned much from a cadre of practitioners from such organizations as Cisco and SunGard. In particular, I would like to mention Jonathan Rosenberg of the collaborative technology group at Cisco, with whom I had two critical conversations that impacted some of the key concepts of this volume. Brian Hull of UBS was also an important early reader of the manuscript, who shared many insights about leadership. Kathleen Weslock, executive vice president and chief people officer at Frontier Communications, has been supremely supportive of my efforts to bridge academia with the real world. My close colleague Gianpaolo Barozzi spent many hours in discussion with me in Milan, New York City, and around the world, sharing his unique insights and friendship. Rob Rothman grasped the essence of this book early and understood the importance of the transformation of the clunky organization, suggesting the initial title. Andy Doyle, executive vice president and chief human resources officer at OppenheimerFunds, is a superb academic and practitioner partner who allows me to steal his toast at our monthly omelet breakfasts at the diner on Fourteenth Street. Ken DiPietro took the time and the patience to thoroughly read the manuscript and make important critiques, for which I am immensely grateful.

Johnson Jose of Cisco, Sara Sepehr of FIS Global, Oliver Muhr of Seerene, and Joseph Drago have been incredibly supportive of my efforts. Chris Proulx has been a tremendous colleague for more than ten years. He is a person who hung in there with me and continuously served as an amazing sounding board. I would also like to thank Dan Silvershein, one of the most remarkable critics and readers it has been my good fortune to have on my side.

Paul Salvatore, with whom I had numerous discussions about leaders and with whom I occasionally cotaught, has always been available. The quiet, occasional lunches with Doug Braunstein, whom I’ve known since he was an undergraduate, give me a sense of continuity. Rob Manfred, who gives me too much credit, has been a source of affirmation. Winston Feng, the youngest of the lot, is a perpetual reinvigorating force. Fran Bonsignore has been a mentor and a guide. Marty Schmelkin continuously brings me back to roots.

When I was struggling with a core theme, Kaushik Basu brought his light touch to the subject and led me to focus on inertia. Kimberly Weisul, a talented writer, is a person who understands the state of contemporary organizations. She, too, was a sounding board at numerous stages along the way. I also thank my collegues at Inc. magazine who gave me an outlet for my academic and nonacademic ideas: Eric Shurenberg, Laura Lorber, and Janice Lombardo.

The initial support I received from James Briggs, who saw the importance and value of writing an integrative leadership volume, was critical. His patience and persistence were crucial at a difficult start for these ideas. Ariel Avgar, my newest colleague at Cornell, has been a wonderful critic and a delightful addition to my journey. Jack Goncalo, with his often very clever insights and sharp humor, keeps on giving me good ideas and helps me keep things in context. The political wit and quick insights of Dan McCray have always kept me on my toes for the last number of years. My friend and colleague Joe Grasso, the man with the eye for detail, has taught me the importance of making sure that everything is approved by the watchdogs. And Kevin Hallock, the next generation of academic leaders, is a person who will have to deal with the challenges I write about, and has the capacity to do so.

There are three Cornell University leaders from whom I’ve learned a great deal and who have been superb partners: Mary Opperman, vice president of human resources, is the superb master of people skills, organizational processes, and organizational values. Elmira Mangum, who was vice president for planning and budget, understands how to balance politics and reality. Ted Dodds, who was vice president for information technologies and chief information officer, taught me much about how difficult it is to move good ideas in the world of turf and tradition. All three are masters at surviving in a clunky organization.

In the last fifteen years I’ve delved into the world of training. And there I had some major mentors and partners, people who taught me how to get my message across. Dana Vashdi, Yael Bacharach, Kathryn Burkgren, and Chris Halladay have taught me the art of taking my time, listening to others, shutting my mouth, and putting participants first.

I appreciate my colleagues at Cornell University Press. My books are a new venture for them and it took a courageous editor, Dean Smith, head of Cornell University Press, to take a chance on moving into a new market. I appreciate his partnership. Martyn Beeny, whom I’ve often frustrated, continues to support and push these efforts. Ange Romeo-Hall, whose editorial talents tolerated my ramblings. And Scott Levine, the minimalist artist, with a wonderful, light touch. Fran Benson, one of the great developmental editors, whose career is reflected in the masterful work she’s produced. Having Fran believe in my capacity is more than gratifying.

When the rubber hit the road, I had the good fortune of working with a remarkable group of research assistants, who have subsequently become colleagues and friends. Saaylee Potnis came to this project at such a critical point that I cannot thank her enough for her initial support and detailed work. Through her, I met Neha Arun Joshi and Megha Saraf, who built on Saaylee’s insights and allowed me to delve into better examples. Peter Baek came in at the late stages of this work, but researched some of the most difficult examples and really got me through a lurch. Thank you to the very bright Trevor Smith, who was the best undergraduate editor I ever worked with, and for the focus of Meher Kanigiri. Each of these individuals gave generously of their time, intellect, and perspiration. I am deeply, deeply grateful to them.

As with any project, it comes down to the core team. Napoleon Zapata, whom I met during his junior year at Cornell University, not only interned with me but also completed his master’s degree with me. I take great pride in our accomplishments and in our friendship. He has been a superior critic, a thorough researcher, and a truly supportive young friend. At moments when I was most disillusioned, he saw the light at the end of the tunnel. If any person served as a key researcher on this volume, it’s Napoleon. His thoroughness, his diligence, his talent have enriched these efforts.

One of the high points of my career is working with Katie Briggs. She has been coordinator of a number of major grants, the manager of the Smithers Institute, and the best critic and academic editor I know. The sixteen years we’ve worked together, at least for me, have been a remarkable joy. None of my career accomplishments during this period would have occurred without her. Sometimes we see things differently, and see the world wearing different glasses, and indeed, we have different backgrounds. But as in any working relationship, its strength comes from sharing common core values. My gratitude to her as a colleague and a friend for her generosity is unbounded.

Finally, I would like to thank my wife, Yael Bacharach, who continues to give me perspective and constantly reminds me that our cup is more than half full. Then there is my son, Ben, who this year will graduate from Cornell University, and who has been and will be the presence that helps me define what is human.

Thank you all.

1

THE CHALLENGE OF INERTIA

SLUGGISH ORGANIZATIONS: CLUNKY AND MYOPIC

Organizations, like people, sometimes get stuck. They get ensnared in routines and processes, and they fall back into old habits. Sometimes fatigue dominates, complexity overwhelms, and organizational energy is drained. In these instances, the capacity to innovate, move agendas, and push things forward is constrained by the security of routine and the comfort of the mundane. Leaders become risk averse, repeating what was successful yesterday or last year as the safest course of action. They have trouble recapturing the same zest, agility, and dynamic energy that were essential in the past. They become sluggish—they get trapped by inertia. Business theorist Jeffrey Pfeffer defines inertia as an inability for an organization to change as rapidly as the environment.¹ Inertia connotes a