Why change is so hard

Upton Sinclair was an American poet and political activist, who ran for the Governorship of California in 1934, at the height of the Great Depression.

His campaign slogan was ‘End poverty in California’ – EPIC, for short. His policies were radical, socialist solutions, based on collective work and shared food resources.

At the time, California was full of extremely poor people, with no jobs, no money and very little food – so Sinclair’s ideas generated plenty of interest and support.

But, when it came to the crunch, voters rejected him in favour of a more mainstream candidate with more familiar policies. They just couldn’t get their heads around the idea of such radical change.

As Sinclair himself put it, ‘it’s difficult to get a man to understand something when his salary depends upon his not understanding it.’

I thought about that this morning, as I was picking my way through the tent village erected by Extinction Rebellion activists at the bottom of Trafalgar Square.

The ‘rebels’ I encountered were, broadly, likeable and articulate people.

Their demands seem reasonable: tell the truth about climate change and set up a citizens’ assembly to take the lead on what we should do about it.

It’s hard not to feel sympathy with their cause. The science is compelling and the clock is ticking. Nobody really wants the planet to be irretrievably damaged, or their grandchildren to have to travel to Mars to create a habitable environment.

So why are we not all pitching tents alongside them?

I don’t have a good answer for that. But I suspect it’s a combination of self-interest (my salary depends on the status quo), fear of radical change (I don’t trust well-meaning hippies to come up with a better social system) and the nagging suspicion that none of it will make any difference until the people at the top of the world’s big economies adopt these ideas as their own.

Which is, of course, what stops change working in most businesses.

Even when confronted with the burningest of burning platforms, most of us will still wait for a signal from the people in charge before we jump.

In other words, the single most important factor in making change happen is credible leadership.

The voters of California decided that Upton Sinclair didn’t have it.

But, when Franklin Roosevelt adopted a lot of Sinclair’s ideas into his New Deal, he had the power and credibility of the Presidential office (as well as a Congressional majority) to back him up.

The question for Extinction Rebellion – and all of us – is: where will that credible leadership come from today?

Matt is the author of tribe: 66 ideas for building a winning culture, which explores the characteristics that contribute to a winning workplace culture. He’s also written inside: the 10 communication secrets that will transform your business.

If you’d like a free copy of either book, pop in to The Forge (we might even make you a coffee…)

What’s your bottom line?

Two weeks ago, something quite interesting happened in corporate America.

B Corp, a group of around 30 CEOs from leading US and international corporations (including Ben & Jerry’s, Danone and Patagonia) took out a full page ad in the New York Times, urging their peers to commit to a more ethical way of doing business.

The ad was in the form of an open letter from the group to members of the influential Business Round Table, which is made up of 181 of the most prominent CEOs in America, including Amazon’s Jeff Bezos and Apple’s Tim Cook.

B Corp describes itself as ‘a fair trade label for companies – a global movement of people using business as a force for good’.

Their underlying idea is to shift from a culture that prioritises shareholder profits above everything else, to one where employees and the environment get equal billing: a ‘triple bottom line’.

B Corp argues that this encourages longer term thinking. Which, as well as making for fairer and more socially-useful businesses, ultimately delivers more sustainable long-term value to shareholders.

It’s hardly a new idea. In fact, just a week earlier, the Round Table had issued its own statement, re-defining the ‘purpose of a corporation’ to give equal weight to social and environmental interests. In other words, the same triple bottom line.

Jamie Dimon, the CEO of JP Morgan and the Round Table’s Chairman, said he hoped the statement would ‘help to set a new standard for corporate leadership.’

So why did B Corp feel the need to press for a firmer commitment?

Perhaps because the Round Table hasn’t always been consistent in its thinking.

Through the 1980s and early 1990s, when the US economy was booming, they promoted a similarly inclusive definition of a corporation’s purpose.

But, in 1997, when the global economy started to look a little more challenging, they rowed back on this progressive thinking and defined corporate purpose in much narrower, shareholder-first terms – and that’s where they’ve stayed ever since, until last month’s statement.

Which is why the B Corp open letter is so interesting.

They’re essentially challenging America’s biggest businesses to put their money where their mouth is.

Don’t just talk about a better model of business, they’re saying.

Commit to it.

Sign up.

Become a B Corp member.

It’s an interesting challenge because, if you do sign up, you’re changing the way decisions are made in your business.

For instance, using tricky loopholes to get round inconvenient tax rules (good for shareholder returns) would no longer be something you could justify (bad for the wider community).

And what happens when the global economy goes through another downturn – as economic indicators seem to suggest may happen soon?

Will your shareholders accept lower profits and smaller dividends, while you reinvest to protect your workforce and make your business more sustainable in the long term?

Or will they fire you?

As Bill Bernbach used to say, a principle isn’t a principle until it costs you money.

Let’s see if the Business Round Table are really willing to live up to the bold words in their statement.

Matt is the author of tribe: 66 ideas for building a winning culture, which explores the characteristics that contribute to a winning workplace culture. He’s also written inside: the 10 communication secrets that will transform your business.

If you’d like a free copy of either book, pop in to The Forge (we might even make you a coffee…)

 

 

How to sabotage your own reputation

When you buy a ticket for an airline flight, what do you think you’re buying?

The ability to travel from A to B at the date and time on your ticket?

Not according to British Airways.

(Regular readers of this blog may sigh to hear me bring up that name again – but bear with me. I promise there’s a point…)

When I complained to BA recently about bumping me off a flight back from Texas, they handled it every bit as badly as the original incident (which is to say, they ignored it completely, until I sent a second stroppy letter to their CEO – at which point, they offered a grudging apology and a few quid off another flight).

The most interesting part was that they denied liability for any losses caused by the delay, because they said they weren’t contractually obliged to carry me on the flight they’d sold me the ticket for.

This didn’t seem to make sense, so I checked twice, to make sure I hadn’t misunderstood. I hadn’t. They said: ‘BA reserves the right not to let you on the flight if we’ve oversold it.’

In other words, when you buy a ticket from BA, what you’re actually buying is the ability to travel from A to B at a time that suits the airline, even if it totally disrupts your own plans.

Or, to put it another way, if you’re counting on BA to get you to a meeting, or a concert, or a family wedding on time, you’d better hope you’re one of the lucky ones that doesn’t get bumped off when they sell more tickets than they have seats on the plane.

You might think this is a rather odd policy for an airline that claims to pride itself on customer experience.

Until you remember it’s the same airline that, this week, got hit with a £183m fine for letting hackers access its customers’ confidential data.

‘This fine isn’t fair’, whined BA’s management. ‘We’re all about customers – we’ve just spent loads on some new bag drops at Heathrow. How can we be the bad guys here?’

And that’s the point. BA just don’t get it.

You can have the best bag-drops in the world. The fanciest menus. The softest cushions.

And none of that matters if you can’t get the basic elements of customer experience right. Such as taking people where they want to go when you said you would. And not exposing their personal and financial data to criminals.

If your customers can’t trust you, nothing else matters – and, if BA really cared about their customers’ experience, they’d know that.

But they don’t. And that’s why they’re now £183m worse off.

Never trust anyone without a sense of humour

There’s nothing wrong with being professional, but it’s a good rule to be wary of people who take themselves too seriously.

A sense of humour is just common sense with the volume turned up. That’s why comedians are so good at capturing and expressing simple, timeless, human truths.

Dull, serious people, by contrast, tend to see the world in black-and-white terms. They’re not usually good at grasping alternative viewpoints or engaging with new ideas. You should be especially wary of any leader who won’t poke fun at themselves, because it’s a sign either of insecurity or of a narcissistic personality disorder.

As Eric Sykes put it: ’We are all idiots. The ones who don’t think they’re idiots – they’re the ones who are dangerous.’

This blog is an excerpt from Matt’s new book; tribe: 66 ideas for building a winning culture. The book explores the characteristics that contribute to a winning workplace culture. If you fancy some bedtime reading, you can buy a copy here. Or pop into The Forge and pick one up for free (we might even make you a coffee…)

Nice guys finish first

A positive culture leads to business success. Not the other way around.

This is confusing for some people, who remember a time when it didn’t matter how you won, as long as you won.

When it used to be cool to have signs above your desk saying things like ‘nice guys finish last’ and ‘lunch is for wimps’.

That kind of gung-ho machismo doesn’t work anymore, because the world we live in has become much more transparent.

If you’re only in it for the money, if you cut corners, if you try to con people, they’ll find out sooner or later – and they’ll let the world know.

The only way to be sure of winning is to create an environment where the people who work for you feel happy enough to want to make your customers happy, too.

The future belongs to businesses that behave like humans.

Nice guys finish first now.

This blog is an excerpt from Matt’s new book; tribe: 66 ideas for building a winning culture. The book explores the characteristics that contribute to a winning workplace culture. If you fancy some bedtime reading, you can buy a copy here. Or pop into The Forge and pick one up for free (we might even make you a coffee…)

Why we should all be feminists

It’s official.

Men are, on average, more systems-oriented than women.

Women, on average, have higher empathy levels than men.

These were the not-very-startling conclusions to emerge, last week, from a Cambridge University report into gender differences, based on a study of over 700,000 people.

The report’s author, Simon Baron-Cohen, is a professor of developmental psychopathology and fellow of Trinity College, Cambridge.

He is also, more intriguingly, the cousin of comedian Sacha Baron Cohen, whose best-known creation, Borat, was funny because of his unreconstructed attitudes to gender, race and sexual orientation.

In Borat’s world view, a woman was for cooking and children and ‘sexy time’ –  and quite specifically not for any position of responsibility, such as presenting a television programme or running a corporation.

The odd thing is that, if you peek inside the boardroom of almost any FTSE 100 business today, you might be forgiven for thinking Borat’s world view isn’t quite so comical after all.

Of the hundred Chief Executives in those companies, only six are women.

Yet, when you look at the trajectory of the businesses, most of them are having to adapt their model rapidly, to survive in a world where customer experience and reputation are becoming the only measures that count.

It’s a world where empathy is an increasingly important skill. Where humanity trumps efficiency. And where agility trumps process.

And yet it’s also a world where the people setting the cultural agenda are men.

Now, I’m not naïve enough to suggest the only way to make a process-driven business more human is to hire a female chief executive. It’s obviously not that binary. There are plenty of male executives whose empathy levels are well above average (and plenty of female executives who are more at home with a spreadsheet than a friendly chat).

I’m also aware that this may sound like virtue-signalling from a middle-aged white man.

So let me get to the point.

The pace of technological change is getting faster and faster. The life-span of businesses is getting shorter and shorter. Customer relationships are getting more and more important. The only way to succeed in the long-term is to have a business that connects with people in a meaningful way. The only way to do that is by building a culture based on empathy. And women are, on average, more empathetic than men.

So you don’t need to be a feminist to think there should be more women setting the agenda at our biggest companies.

You just need to do the maths.

Matt is the author of tribe: 66 ideas for building a winning culture, which explores the characteristics that contribute to a winning workplace culture. He’s also written inside: the 10 communication secrets that will transform your business.

If you’d like a free copy of either book, pop in to The Forge (we might even make you a coffee…)

 

Don’t just do it. Mean it.

It’s been quite a week for Nike.

On Monday, they launched a bold new advertising campaign, fronted by Colin Kaepernick (the star San Francisco quarterback who caused a furore by kneeling, rather than standing, during the national anthem, to protest in support of the ‘black lives matter’ movement).

Clearly, this was always going to be controversial. Conservative Americans, led vocally by their President, have railed against the protest on the grounds that it disrespects the anthem and the country.

By Tuesday lunchtime, the backlash was in full swing, with indignant mid-westerners sharing videos of mutilated Nike products on social media, accompanied by the hashtag #JustBurnIt.

All of which must have had Nike’s brand folks rubbing their hands in glee. After all, what better way to make your product relevant to teenagers than by having chubby, middle-aged rednecks get angry about it? (Not to mention the billions of dollars of free global publicity – they probably only had to run the ad once).

But let’s hope that, before they started all this hoopla, they took a deep breath and re-read the second line of the advert: ‘even if it means sacrificing everything’.

Because it’s easy to believe in something. But it’s a lot less easy to keep believing in it when the consequences escalate.

I’m not talking about a few good ol’ boys cutting Nike swooshes out of their socks. I’m talking about shop windows being smashed. About people being attacked because they work for Nike. About retailers being too scared to sell Nike products – and shoppers being too scared to buy them. About sales falling off a cliff because they misjudged the reaction.

What happens then? Do Nike’s senior leaders apologise and backtrack, in a bid to stop haemorrhaging money? If they do, the brand’s credibility will be shredded for a generation.

I hope that doesn’t happen. I admire Kaepernick – and Nike for having the guts to celebrate him. And I’m confident the backlash will be much less extreme than I’ve suggested above. But, if it isn’t, I hope they hold their nerve and tough it out.

As the advertising guru Bill Bernbach once put it, ‘a principle isn’t a principle until it costs you money.’

We may all be about to find out how authentic Nike’s principles are.

 

Do no evil (no, really)

The week’s big news – how Cambridge Analytica allegedly bought profile data from Facebook and used it to influence the outcome of the US election – has offered a fascinating (if terrifying) glimpse into the world of online data analysis.

Among the many jaw-dropping revelations and tone-deaf Twitter responses, the standout moment was the interview with Alexander Nix, Cambridge Analytica’s (now suspended) CEO.

When it was put to Nix that he had been caught on camera boasting about how his business had used data to influence the election outcome, his dismissive explanation was that he had been pitching for new business, so was obviously saying whatever the client wanted to hear.

What I found interesting was that he clearly imagined this made it okay. Which got me wondering: how messed up must your organisation’s moral compass be if ‘We routinely lie to prospective clients in order to get their money’ feels like a brand positioning you’re happy with?

Perhaps I’m naïve. Nix certainly seemed to feel he was being unfairly singled out for a practice that was routine in his industry. The board of Cambridge Analytica disagreed and threw him under the bus.

No doubt, this will shortly be followed by the disappearance of what has now become a toxic brand – and the business will quietly re-emerge with a new name, a new set of corporate values and (for at least a little while) a loud determination to act in a purely ethical manner.

Will this fix the problem? Or will it just be a temporary diversion, until the new leaders realise they’re losing market share to competitors who are still being less scrupulous about the way they manage data?

That’s the problem with ethics. As soon as you start finding ‘grey areas’, where you can make compromises that boost your profits without actually breaking the law, it’s tempting for under-pressure leaders to embrace them.

Which is exactly where ‘good’ businesses go bad. If your engineers get rewarded for finding ways to mysteriously improve your emissions test performance, that’s bad (Volkswagen). If your sales people get a bonus for selling people financial insurance they don’t need, that’s bad (any bank that mis-sold PPI).

But is either of those ethically worse than avoiding tax? Or deliberately paying your suppliers 60 days later than your commercial terms said you would? (Almost every large business I’ve ever dealt with).

Very few companies are actually ‘bad’. But don’t kid yourself that having a page of values that say things like ‘integrity’ and ‘transparency’ and ‘fairness’ is going to save you from public scrutiny when you’re caught crossing an ethical line.

Culture is about every single thing you do as a business. As soon as you start turning a blind eye to (or worse, rewarding) bad behaviour, you’re in the same boat as Alexander Nix.

Matt is the author of tribe: 66 ideas for building a winning culture, which explores the characteristics that contribute to a winning workplace culture. He’s also written inside: the 10 communication secrets that will transform your business.

If you’d like a free copy of either book, pop in to The Forge (we might even make you a coffee…)