May 18, 2004

Unjobbing

Robert Paterson is in the toppest-of-top form today in his entry Unjobbing. A few snippets:

All the rules of the old culture are based on the assumptions that the most important activity is control. The extension of this assumption is that if only we tried hard enough, we could control everything. This illusion seemed to work when we did not operate in a global society. But when we began to operate in a global economy, the complexity of controlling everything has overwhelmed us. As we talk about being more responsive, more customer-focused and more flexible, let’s look at the real rules that govern most of our organizations. They work against these objectives.

The budget process is the most important process in the traditional organization. Budgets, not value, determine who has the power. Controlling large budgets, large numbers of people and large physical plant is what gives you power. At a time when the jargon is all about being close to the customer, the traditional reward system values being a bureaucrat. The further you are away from the customer, the more powerful you become. Career success is determined by obtaining and using good bureaucratic skills. The result is a managerial emphasis and a bias against creativity....

The external stakeholders, be they investors, bankers or governments, view the enterprise through only one aspect of a balance sheet, financial capital. As the bigger is better approach has taken hold, the financial balance sheet has grown geometrically thus driving up the hurdle rate for earning an economic return. The purpose of the organization tends to become obscured as the pressure to meet the investment hurdle increases. So schools and hospitals are increasingly evaluated in terms of their budgetary impact rather than on any criteria of whether they are educating our children well or not. Businesses cannot afford to miss an operational beat because they have to run their system at full tilt all the time to meet the returns on a large capital structure. Executives are being measured quarter by quarter rather than being given a more appropriate time horizon.

When Rob talks about the relentless drive for efficiency, I think about the City's panic when Marks and Spencer dared post less than sparkling returns in one set of figures. A snapshot provokes demands for resignations. Crazy.

Rob is arguing for a paradigm shift and says the old-style organisations will be highly resistant. I love this kind of full-on, radical thinking.

I believe that the power of the old culture makes it almost impossible to change our organizations from within. The reasons for this failure are not lack of effort or lack of vision but the nature of the cultural reaction to the new. The rules of the old culture operate like an immune system seeking out new and dangerous ideas that threaten the old way of doing things.
I'd like to cheer the almost word that Rob included. Because I think organisations are not as rigidly bound as they think they are. They may attempt to run themselves in the control-freak way Rob describes, but the non-rational and the kind periodically cut-through. More often in some organisations than others, I grant you.

Individuals within systems can find ways to create good relationships despite constraints, and I'd like to believe that the cumulative effect of us each, individually, speaking authentically helps undermine the old paradigm Rob sets out.

They don't create these brands, we do

Ultimately, organisations and brands are not real things, they are figments of our collective imagination. We can imagine them differently.

For instance, my default setting is to loathe the Tesco Metro store at the end of my road. Shopping there is a good sign that my self-esteem is particularly low. The Tesco brand mantra is not very convincing in this cramped shop. If I go with this, I can shop sulkily and resentfully and ignore the human beings working there.

Alternatively I can make the effort to chat to them and engage, and create the outside chance of us both having a more human encounter. In that fleeting moment, they and I both collude to create a different brand of Tesco. And, boy, do I prefer this one to the default. Not least because I am the conscious co-author of it, not Mr Tesco.

Posted by Johnnie Moore at 15:33 in Branding
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Tim says

This discursive/deconstructive approach to an organisation needs a balance. An organisation is a real thing. A brand is a real thing. They are not just narratives. Ok, you'll say that narratives construct reality but walk around Tesco. It exists. Feel the shopping trolley, it either runs straight or not. You simply can't say that a bad trolley is a good one. It isn't.

but I do understand the shaping of the brand and my experience of it is shaped by my attitude. I think branding is something that we give to a product/service/experience - not only what the company creates. So yes, we do co-create brands.

Maybe that is why some people are never satisfied. They never will be.

Interesting thoughts Johnnie. My critical psychology is coming back to me....But organisations and brands are real things. We play a part but not the whole part.

Tim, yes I was probably a bit carried away when I said they are not real things. Perhaps it would have been better to say they are not fixed objects independent of our own thinking.

But they are not like the shopping trolley. That's a physical object, whereas organisations are webs of relationships and not independent of our consciousness as the shopping trolley is. (Unless you want to get deep into quantum physics anyway).

This is probably all a bit of tangent to Robert's central point, which is that the system companies operate boils down to promising one thing to customers, another to shareholders, and not really reconciling that conflict.

Tim says

And that's the wonderful thing about market forces. Such things reduce that gap. Increase competition and companies will reform their practices faster than consultants can write the invoice.

Tim, thanks for coming in and prodding my thinking.

And for opening another can of worms... I'm not convinced that an atmosphere of intense competition is always conducive to greater honesty. It may reduce the credibility gap or it may just force organisations into more desperate storytelling. Human beings sometimes think the best thing to do under stress is to do more of what is already not working.

I don't know about you, but I'm not personally experiencing a massive outbreak of grounded, honest communication from corporations at the moment! Nor am I hearing about CEOs who are bravely questionning the short-termism of their City overseers...

Also, there are interesting questions about the sustainability the form of intense competition if based on noisy advertising and trivial innovation. Tragedy of the commons blah blah. But I'll save that for another post (unless you continue to provoke me, which would be fun also)

Morning Johnnie
Just picking up on the ethics issue as well. I am alone in sensing that nearly all bureaucracies, governments on Iraq, Enrons etc just can't tell the truth. Why?

I think they are caught in a logic trap. Their public voice is that it is all done for us the consumer/voter. The rubric of marketing. The reality is that it is done for the few at the top. I don't even think that the lie is conscious. This is why it is all so confusing. The lie is deeply embedded as I think it was in the pre reformation church.

Is part of the life cycle of all organizations that in decline they become self serving?

As an old marketer, I fear that the biggest lie of all is how we look at clients. You have posted a lot about this Johnnie and I love your views

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