Why horizontal and vertical development are the keys to future success

Vertical development is about expanding your mindset. Here are 3 aspects in your interventions for prime conditions in vertical development.
May 16, 2023
5
min read

For CEOs and business leaders today, their role extends beyond the typical challenges of ensuring profitability and executing the business strategy. They are also responsible for managing tensions between customers who want climate-conscious products and business operations, employee physical and mental health care, and the transition to a hybrid work environment. Furthermore, CEOs need to consider exponential rates of change in technology (including AI and robotics), digital currency disruptions, the impacts of globalization and geopolitics (such as shifts in power), as well as social media.

Today, leaders, organizations, and societies face ever accelerating rates of change and disruption. However, the individual and collective capacity to keep up with change is not growing at the same rate. The rate of change is greater than peoples’ capacity to learn and adapt along with it.

Research by Lectica[1] shows a significant gap between leadership capability and the complexity leaders face, referred to as the “complexity crisis.” The type of development needed to prepare for this reality is not just for senior leaders, and it’s not just about learning new knowledge, skills, and information.

This new approach is called vertical development. Many leaders are now becoming aware that this type of development is important. However, we have yet to see an organization that has unlocked the full power of vertical development interventions.

What is vertical development?

We define vertical development as the development of a leader’s worldview — deepening, expanding, broadening, and transforming their mindsets. This impacts leaders’ behavior and, therefore, results. Put simply, horizontal development is more about competency, and vertical development is more about capacity. Think about expanding development as if it were a glass of water. Adding water to a glass is horizontal expansion, but increasing the size of the glass is vertical expansion. Or, take cell phone operating systems: horizontal growth is about adding more apps; vertical development is about upgrading the operating system. Vertical development means that you can add apps with the ability to do more complex tasks than the previous operating system could handle.

Einstein is known to have said, “We can't solve problems by using the same kind of thinking we used when we created them." You can’t solve the problems leaders face today by adding new apps – you need to upgrade your operating system. Leaders today face more and more complex challenges. Adding new competencies, skills, and knowledge is not enough. Leaders’ development also needs to include the vertical dimension of growth so that they can see from a different perspective, find new and creative solutions, act with greater wisdom and capacity, and have a transformative impact within and beyond your organization. This is the type of learning that leaders need in order to meet the exponential rate of change.

In Harvard Business Review, Torbert (2005) found that five out of ten CEOs from various companies were measured at the Strategist level (an advanced level of vertical development), while the other five were measured at lower stages of vertical development. Of the five Strategists, all had successfully implemented organizational transformations in a period of four years, which improved the company’s profitability, market share, and reputation. For the other CEOs, only two succeeded in doing the same.

How do you facilitate vertical development in your organization?

Leaders cannot be forced to grow vertically. It is not the same as horizontal development, where knowledge sharing, training, skill development, or practicing a new behavior are enough. Growth occurs differently in vertical development.Vertical development is about expanding your mindset — changing how you think and behave. Mindset refers to the mental models you engage when you are thinking, as well as your sense of identity.

Vertical development isn’t about training a leader in skills. It’s about transforming the ways a leader thinks, which will impact what they do and how they behave. In vertical development, you become more adaptable, self-aware, and collaborative, with the ability to span boundaries and networks.[2]

We know from research at the Centre for Creative Leadership (CCL 2020) that three aspects facilitate vertical development growth:

  1. Heat experiences – experiences where you face a complex situation that disrupts your habitual way of thinking.
  2. Colliding perspectives – when you are exposed to others who have different worldviews, opinions, and backgrounds, your own mental model of the world is challenged through these experiences.
  3. Elevated sense-making – as you reflect and make sense of the changes in worldview and experiences, you have the opportunity to enlarge your worldview.

By including all three of these aspects in your interventions, you will create prime conditions for vertical development.

Here is one example, which is designed in the context of executing a new business strategy through people:

  1. Heat experiences: Leveraging business simulations, participants (dozens or thousands) form groups with other leaders to practice running a modeled version of their business environment. This allows them to align and live the new business strategy or transformation. Leaders are removed from their comfort zones and placed into complex situations, which enables them to grow. Sometimes leaders’ behaviors are observed to offer insights and additional challenges, which turns up the “heat.”
  1. Colliding perspectives: Leaders meet others from different functions and levels to grapple with the simulated challenges in small groups to execute the new strategy. Here, leaders’ mental models are challenged through interactions with their peers. Each individual brings a different perspective or worldview and represents a different part of the business. Doing so reduces the polarity of views between groups, such as sales and operations, which can be a powerful tool in preparing leaders to execute a new strategy successfully. Without an intervention like this, these business siloes typically lead to stagnation or slow progress.
  2. Elevated sense-making: Through mindset coaching, leaders get the opportunity to step back, make sense of things, and apply their learnings and shifts in worldview. Using a coaching approach that specifically focuses on mindsets or changing worldview is critical to enable this change as it provides critical support for individuals to make the necessary shift.It is also important to note here: not everyone will develop vertically. Some leaders will be a driving force for integrating a vertical change, but others may not be ready for such a shift. It is important to facilitate both vertical and horizontal development, and given the current climate, ensure vertical development is included.

Heat experiences, colliding perspectives, and elevated sense-making should be integrated into all of your interventions, enabling you to build the vertical development foundation your leaders need to have the greatest possible impact. When leaders’ worldviews are narrow, their range of choice and creativity is also narrow. As they expand, they will see more, experience more and be able to lead with more. When your leadership development interventions deliberately invite leaders to shift their perspectives and worldview, while also providing new knowledge, skills, and competencies, you empower and unleash your leaders to lead in our complex, globally interconnected world.

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Blog Posts
February 1, 2013
5
min read
Leadership development eliminating the obstacles
Inspired by Irvin Yalom, this blog shows that growth happens when we remove the obstacles holding leaders back, one step at a time.

Last night I started reading a book by Irvin Yalom, a psychiatrist who has written several novels that I’ve loved. But right now I’m reading something different—a book of short lessons he’s learned from many years of working with patients.

Early in his career, Yalom was inspired by something he read. The gist of it was that all people have a natural tendency to want to grow and become fulfilled—just an acorn will grow up to become an oak—as long as there are no obstacles in the way. So the job of the psychotherapist was to eliminate the obstacles to growth.

This was a eureka moment for Yalom. At the time, he was treating a young widow. Suffering through grief for a long while, she wanted help because she had a “failed heart”—an inability ever to love again.

Yalom had felt overwhelmed.  How could he possibly change someone’s inability to love?  But now he looked at it differently.  He could dedicate himself to identifying and eliminating the obstacles that kept her from loving.

So they worked on that—her feelings of disloyalty to her late husband, her sense that she was somehow responsible for his death, and the fear of loss that falling in love again would mean. Eventually they eliminated all of the obstacles. Then her natural ability to love—and grow—returned. She remarried.

Reading this story made me think of the responsibility of leaders toward the people they need to develop—and for the growth and learning that leaders themselves require to be the best that they can be.

Many leadership development challenges seem overwhelming—even impossible. The leaders that we coach usually have a list of areas where they want to get better, but how?  How do you “build better relationships with your peers and direct reports”?  How are you supposed to “get out of the weeds and demonstrate enterprise-wide thinking” or “build executive presence”?  All of these goals are as abstract as they are huge.

So the best approach is to not focus on the huge and fuzzy goal.  What we try to do is to break these goals down into concrete actions through working on real-time business problems. To put it simply, though, we do just as Yalom does: We identify the obstacles and work toward knocking them off, one at a time.

Leadership development is not usually a quick fix. You’re not going to develop executive presence through a half-day workshop or a one-time meeting.  If you’re interested in meaningful, lasting growth—whether for yourself or for those who work for you—it’s a commitment.

But don’t ever forget that we’re all capable of growth throughout life and our careers. The trick is to find the right coach or mentor who will guide you through that obstacle course.

Blog Posts
December 9, 2012
5
min read
Executive presence: what’s your “talk track”?
How your executive presence is affecting your professional brand.

In my work as an executive coach, I meet at least once a month with each of my coaching clients.

I often talk to them on the phone and exchange emails with them as we work on their real-time business challenges. So, what happens in those conversations? Recurring themes start to come up. I find that many leaders  have a “talk track” of words and phrases that they use all the time—without always being aware of the impact. For better or worse, this talk track ends up becoming part of their executive presence and their brand as a leader.

One of my clients had a talk track for many years that led to a reputation for negativity. In one meeting alone, I noticed that he had described about ten different work experiences as “nightmares.” Strong word! So we talked about this talk track. And the next time I heard him lapse into that way of talking, I decided to delve into it. “What I just heard from you was an example of that ‘talk track’ we’ve talked about,” I said. “So let’s talk about this. You say it was a ‘nightmare.’  Okay—why do you call it a nightmare?”

The upshot was that he had made a sales presentation but didn’t get the deal. I said, “Let’s use accurate language to describe the situation.” Was it a nightmare? No. Maybe it was a disappointment. Maybe he could have said, “Unfortunately, we didn’t get the deal” or “They decided to go with another vendor” and state why, objectively. My goal was to get him to stop “catastrophizing” when something didn’t work out.

This leader didn’t want to be defined by that negative “talk track” anymore. So I told him that the only way to do that is to turn up the volume on a very different talk track—one that captures the brand and presence that you want to project.

I’ve had clients who always talked about how difficult or challenging or complex things seemed to them.  You’ve probably had a boss or colleague with any number of talk-track themes:

  • “I’m so exhausted/overwhelmed/unhappy/unappreciated….”
  • “Everyone here is useless/stupid/incompetent….”
  • “It’s such a difficult environment/project/client/travel schedule…”
  • “That will never work/We won’t get that deal/It’s a dumb idea/What were they thinking?”

Often people aren’t even aware of how much they harp on a conversational theme and how negatively this lack of executive presence is affecting their professional brand. So what can you do to make sure your talk track is working for you and not against you as a leader? Take these four steps:

1. Identify your talk-track themes.

What are the words and phrases that you find yourself constantly using in conversations at work? Write down the things you seem to say almost every day—or think about what themes come up all the time for you in conversation at work or elsewhere.

2. Consider the impact of your talk track.

As a leader, your words carry more weight than others.  You’re setting the tone for your team or division or organization.  Whether that tone is absurdly optimistic, cynical, critical, upbeat, energized, or overly emotional, it’s going to be the model for others. Make sure that your talk track is consistent with the values and behaviors you want to drive.

3. Challenge the reality of your talk track.

How accurate is your talk track?  Do you have a natural tendency to see the part of the glass that’s empty?  How do you respond to setbacks?  Do you gloss over the pain?  Do you make a mountain out of a molehill?  It’s crucial for leaders to be balanced, objective, and real about what’s happening.  Your language choices need to reflect that.

4. Consider what you could say differently.

It’s easy to lapse into your talk track.  When you catch yourself saying the same old things, try to catch yourself as if an alarm was going off.  Can you find another way to say it—something that’s consistent with the brand and presence you want to project.

Don’t get me wrong.  Leaders do need to be “real” about challenges and setbacks, and a somber tone may be appropriate and even helpful at times.  The goal is to become more aware of your talk track and what it’s doing for you and others.  As a leader, people take their cues from you.  Before you know it, your talk track can dominate or drive the culture.

Changing your talk track is a challenge. Our ways of talking and viewing the world are pretty ingrained through several decades of life experiences. But change is also very possible. Pump up the volume on a more positive talk track for the holidays, and your presence will be viewed as a gift.

Blog Posts
September 8, 2012
5
min read
Leadership communication. Unlike riding a bike
This blog explains why leadership communication skills, like public speaking, selling, and inspiring teams, aren’t “like riding a bike,” but instead require continuous practice and learning to sustain true mastery.

A while back I heard a few people talking about public speaking. Person A was talking about their anxiety about making presentations. Trying to make him feel better, Person B said, “Public speaking is just like riding a bike!”

That got my attention.  It seemed to be a comforting little sound bite. The only problem was that it was wrong.  Public speaking is not like riding a bike. But it got me thinking about leadership communication and learning in general.

What does it mean if we say that something is like learning to ride a bike?  We’re saying that it’s a skill that initially may seem pretty difficult to learn… but once we figure it out, we can do it successfully without thinking—even if we don’t do it at all for years at a time. It’s the reassuring idea that you’ve acquired a skill that you will never lose.

There’s no question that we all learn many skills that are like riding a bike. Driving is a good example. Most of us were white-knuckle drivers when we first got behind the wheel, but what about now? On long highway drives, I sometimes snap out of a daydream and realize I have no memory of anything that happened on the road in the last 15 minutes. That’s because I don’t have to think about driving when I do it—not unless there is intense traffic or some other unusual circumstance.

Many other skills are the same—reading, typing, doing simple math in your head, and so on.   But quite a few sophisticated skills are quite unlike riding a bike.  In other words, there are skills that are definitely learnable and where your level of mastery can improve substantially. However, you’ll probably never be really great at these skills without vigilant, ongoing practice, preparation, reflection, and reinforcement.

Some examples that come to mind with leadership communication: Selling, managing change, inspiring your teams, and, yes, public speaking. What’s so different about these areas?  A few things:

  • They involve an audience. If you were making your first speech in several months or years, would you find that you could do it almost unconsciously? I couldn’t. You can never be on auto-pilot when you’re delivering any sort of message to an audience. Just as the saying goes that you can never step in the same river twice, no two audiences are ever the same—even if you’re speaking to your internal teams each quarter. All sorts of circumstances change regularly, and you have to consciously adjust your message to address the ever-evolving needs of your audience.
  • To maintain performance at a high level, sophisticated skills require ongoing practice. Yo-Yo Ma may be the world’s best cellist, but he estimates that he still puts in roughly 2,000 hours of practice each year. That’s an average of 5.5 hours daily.  If he stopped practicing altogether, he obviously could still play the cello.  But he wouldn’t be the best cellist for much longer.
  • Skill mastery typically requires continual learning and reinforcement over time. Practice is critical, but it’s not sufficient. When you think about areas such as selling, motivating, and public speaking, there is always more to learn. There is evidence now that 90% of what we learn at a workshop, for example, dissipates within one year. To ensure the needle keeps moving in the right direction, you need to be a perpetual student. That may involve reading about the subject, hearing about it, going to a workshop, and getting expert advice. Whether you’re a tennis pro, a psychiatrist, or a VP of Sales, having a coach to help you with your real-time challenges can have an enormous impact to give you that reinforcement over time.

As a leader, you’ll no doubt hear from companies that want to offer you “quick-fix” solutions for perpetual leadership development challenges—areas such as executive presence, employee engagement, and public speaking.

But lasting, meaningful mastery is not a quick fix.  Sophisticated skills need reinforcement: A better motto for these skills would be “use it or lose it.” Because some things are quite unlike riding a bike,

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Insights
November 10, 2018
5
min read
Is the pursuit of purpose the latest management fad? Nope. But it is getting more personal…
Jessica Skon, Madeline Renov, and Lee Sears write about the enduring discussion surrounding the pursuit of purpose at work.

Leading with Purpose, Part 1

Most CEOs I speak with are not 100% at peace with their company’s purpose. As the market, their people and their business evolve, so will their purpose. As some of the best companies of past and present show us, there is strength, and even magic, in a great company purpose. What is also clear, however, is that this magic does not come from just having a “purpose” or “vision,” but rather from how well a company is executing against their purpose.

When Southwest Airlines (which has been profitable for 45 consecutive years, and on FORTUNE’s list of World’s Most Admired Companies for 24 straight years) was first starting out, their mission was to make flying affordable.1 They rallied their people on the idea that a grandmother should be able to affordably buy a ticket, at the drop of a hat, to get on a flight to see her new grandchild. This simple mission led to the “Southwest Effect,” which transformed the airline industry, and continued to be a lens with which the Southwest leadership team made key decisions.

Today, Southwest’s vision has evolved: “To become the world’s most loved, most flown, and most profitable airline.” And they are executing on this vision. They continue to drive superior shareholder returns against all industries on the S&P 500 (as they have for the past 44 years), and in 2018 were named the top low-cost airline in JD Powers customer survey reports for the second year in a row.

As the Southwest example highlights, great company purpose combined with a leadership team who will build the work-flows, culture, processes and metrics to live up to it can be an enormous employee motivator. But we have also experienced, both at BTS and with our global clients, that a good company vision and purpose on their own are not sufficient – employees need them to be even more personal to them as an individual. I remember a lunch I had twelve years ago with a 24-year old new hire who was my direct report. After some small talk he looked at me and said, “Why are you here? Why have you spent seven years with the same company?”

I’ll never forget that lunch. It was the first time I had been asked the question, and it was the beginning of a new decade where our employees were much louder and more active about wanting to reflect and spend time on our mission and purpose, linking it to their personal values and the impact they strived to have in the world. Luke, that 24-year old new hire, has made me and our company better as a result of his question.

In the last decade, there has been a growing emphasis in the business world on finding a deeper motivation to unlock greater meaning at work. For some this may sound ‘fluffy,’ or as one executive we spoke to commented, “Is this just the next version of the pursuit of vision and values? It sounds great on paper but too often makes little real difference as it tends to stay on the wall, rather than live in your heart.”

Yet your people spend the majority of their life at work and with colleagues. At its best, a sense of purpose is a way of bringing meaning to their work and understanding the contributions they are making to the company, as well as greater society. It makes sense, then, that employees who are clear on their personal and professional purpose end their work day invigorated and proud of what they’re doing instead of exhausted by mindless work that is bereft of real meaning.

According to a recent PWC study, 79% of business leaders believe that purpose is central to business success – but only 34% use their organization’s purpose as a guidepost for their leadership team’s decision-making. Signs that your workplace may be lacking organizational purpose are distracted employees and a lack of comradery. These are significant factors – so why don’t more organizations devote time to developing clear purpose and values? Well, developing organizational purpose is no easy task, and much of it starts with your own personal purpose. If you’re unsure of what exactly your own personal purpose is, have no fear – in the next two installments of this blog series, we will offer simple steps to help you uncover your personal and organizational purposes and get closer to leading through the lens of purpose.

Insights
January 1, 2017
5
min read
A data-driven & mindset approach to increasing diversity
Learn from Jessica Skon about the importance of having leaders who embrace different skills and backgrounds as part of an effective workforce.

Throughout her more than 15-year career at BTS, Jessica has pioneered turning strategy into action through the use of customized experiences & simulations for leading Fortune 500 clients and many large and start-up software companies in Silicon Valley. Jessica leads BTS USA with P&L responsibility for offices in San Francisco, Philadelphia, New York, Chicago, Phoenix, and Austin.

Although one of the most-discussed topics in business today, meaningful diversity seems to be elusive for most companies. We sat down for a casual and candid conversation with Jessica and uncovered some surprising insights about our clients’ challenges in creating a more diverse and inclusive workplace, and what companies can do about it.

We are lucky to have snagged a few moments of Jessica’s time — squeezed between a flight to New York for a client meeting and her morning school drop-off duties — to hear her perspective.

JENNY JONSSON: We have a lot to cover today, so if it’s ok with you, we’re going to jump right in! First, we would love to hear a little about your journey to becoming a Global Partner (GP) – and of course, it’s hard to conduct research for a paper on diversity and ignore that there’s a gender imbalance at our GP level.

JESSICA SKON: Well first of all, while I may be the only female Global Partner, I don’t want to lose sight of the fact that we do have a lot of women leaders at BTS: 35% of our Heads of Office are women. With that said, what I can say about my experience is that it has been fair. I don’t think I would still be here if I didn’t feel the expectations and the performance processes over the last 17 years were fair, and I have never felt like gender has been a factor in performance conversations. When I reflect on that after talking to other female leaders, that’s a pretty big deal.

MJ DOCTORS: Why do you think your experience has been so different from what many other working women encounter?

JS: Before my first Global Partner meeting, where we were looking at candidates for Principal and above, I was told, “This is always the best meeting of the year.” I wondered how it could be so drastically different than any other meeting, but they were right — it is an entirely data-driven, unemotional, and fair process.

It was a simple process and there were no biases. There are three parts to how we evaluate partners up for promotion:

  1. The background information on each candidate includes all of the specific promotion criteria and supporting data.
  2. The leader recommending the promotion gives a 5-minute summary emphasizing their view of the candidate’s weaknesses and areas for growth in the coming years.
  3. A fellow partner who has done due diligence against the facts acts as the “inquisitor” and shares findings.

This approach ensures it isn’t just a pitchfest. And this process is also something that has trickled down to other areas of the business, reducing a lot of the biases in our hiring and promoting.

JJ: Have you been approached by clients asking for guidance on a similar data-driven approach?

JP: Absolutely, clients realize they need to make this shift. I think it’s going to happen really quickly: we already have one client whose CEO has asked us to rebuild their entire performance system so that it’s more data-driven, more accurate, and more fair. In many companies, the way things are now, it’s often gray and you can’t help but rely on relationships and favoritism to guide promotion decisions.

MD: As part of our research, Jenny and I took a look at how BTS USA is performing on diversity metrics. While most publications and companies measure diversity by simply looking at gender and race (such as Fortune’s 50 Most Diverse Companies), we believe diversity is much more than that. Our definition encompasses gender and race, but also age, socioeconomics, gender identity, sexual orientation, education, life experiences, disability status, and personality traits — and the list could go on. However, as we currently only have results across race and gender, that’s what we’ll share here. How do you feel when you look at these charts?

JS: You’re bringing me back to 5 years ago when we had the same color chart for gender as we do now for ethnicity — which was horrifying. I think we all knew it was a problem but we weren’t mature enough in our thinking to solve it. Once we all woke up and clearly defined that we had a gender parity problem across the company, we were persistent and fixed it, and now I am proud of our gender pie chart. That is something I love about BTS: if we can clearly articulate a problem, we tend to be able to solve it. That’s actually the key for leaders across most industries: the art is being able to clearly define the problem.

But I think that we’re at ground zero again for the next phase.  I would love for us to apply the same rigor we used to address gender disparities to other forms of diversity so that in 3 or 4 years we have a better mix, and why wouldn’t we?

JJ: Can you outline specifically how we made progress on our lack of gender diversity?

JS: We took a few major steps:

  1. Our Heads of Office decided it was a top priority. Without top leadership’s buy-in, you can’t really make progress.
  2. Then we identified the key pain point: for us, it was the entry to the funnel. Then we brainstormed the best ways to attract more female candidates.
  3. This led to some “ahas” about the root cause of that pain point. Many people think that consulting is inflexible and it’s difficult for employees with children to succeed. But there’s nothing further from the truth at BTS. Our Global CEO is quite progressive and incredibly flexible and open-minded when it comes to letting employees do what they need for their lives.
  4. So then our leaders got on the megaphone: our (now retired) US CEO began flying to each of our offices to talk about it, and I got on the phone with candidates to tell them my story of being a young working mother. A lot changed once we started to focus on it.
  5. In reviewing our hiring interview process, we also realized we could be more clear in our criteria, with observable behaviors and a more robust scoring rubric. This change eliminated any unconscious bias and we found that woman were scoring as high as our male candidates. When we looked in the past, they were (on average) scoring lower.

MD: Besides clearly defining the problem, what other factors pushed forward this change?

JS: Clients started noticing and asking for more women consultants, so it became an easy sell to our leadership. Our demographics should match – or even be ahead of – our clients’ demographics. We shouldn’t have to be scrambling every time a client says, “Um… there’s a lot of men here.” Sure, some traditional clients may not have said anything, so for some folks internally it was more difficult to understand the impetus behind the huge investment we were making in changing our recruitment process. But we also had enough examples of women starting at BTS who didn’t have many female role models. And we realized, we have to change this or some of our best people are going to leave.

JJ: So what about our clients? You have spent significant time over the past 20 years with CEOs and senior leaders of some of the world’s top companies. What aspects of diversity are they discussing the most?

JS: In the last couple of months, I have heard many top executives discussing how to change the paradigm of their leaders to promote and move people around who don’t necessarily fit the makeup of the candidates from the past. So for example, one client said that they have been really good at keeping people for life, but realize that they might not be able to maintain that with millennials, unless they can keep having great careers for them.

Also, companies still tend to focus on “the résumé”: did the applicant go to an Ivy League school, did she have a fancy job, how long did he work in this department, etc. All of this has been the formula for success over the last 50 years. But if we don’t crack that mindset, there will be amazing people who don’t get put in the right positions, because unconsciously our leaders are not seeing them or they are not open-minded enough to realize that this candidate might be better suited than that more traditional-looking candidate.

MD: What is some advice you would give clients to change that mindset?

JS: You and all your leaders have to first recognize your beliefs and own them before any mindset change can happen. That may be kind of obvious, but getting yourself and your senior leaders to fully own their beliefs is hard. You have to be both very self-aware and constantly striving to improve. It’s a battle every single day.

So when an executive comes to me and says, “This is weighing on my mind at the company-wide level,” I don’t say, “Well there’s a diversity training that we can do.” I do say, “You’re talking about changing deeply rooted mindsets: this requires getting leaders to articulate, own, and put those issues on the table, and commit to changing their beliefs moving forward.”

This is crucial to making sure you have the right people in the right jobs and you’re retaining the people that you want, which ultimately enables you to make the company successful. That is an immense amount of work, including interventions, working sessions, and sometimes coaching. It’s sometimes getting the most skeptical leaders to become the owners of this and driving these change management efforts. It’s deeper than just a training class.

JJ: If it’s not just a training class, what do you see as the platform?

JS: Any time you’re trying to drive large scale transformation, it’s a good idea to run experiments. And once they get some momentum and prove to be successful, you should shine a really big light on them to get broad adoption and then begin the comprehensive change management process.

So even though it’s out of our core services, I try to give clients ideas on small stuff they can do that is totally different than anything they have done before, to shake up people’s way of thinking about how they recruit, hire, train, promote, and think about people. I think a strong example of an initiative a company has experimented with is a leading software company and their strategic partnerships with nonprofits who help them access more and different talent pools.

So – once those initiatives have gained that momentum, it would be fun for us to do some consulting with their executives first around owning the beliefs, the history (it’s important to honor the history and not just break it), what worked in the past, what beliefs do you now hold as a result, and what are you going to do moving forward. All of this can be built around an experience that shifts people’s mindsets. It’s not so much diversity training… it’s a mindset shift process that starts at top leadership.

MD: Are there any companies that are beginning to successfully make this mindset shift and use more data-driven approaches to evaluation?

JS: Not really… that’s what’s tough about this. It’s bizarrely new. The more BTS is asked to provide broader talent services, the more surprised I am. We’re basically back in the Stone Age. It’s not pretty.

But we’re starting to work on something internally to track an individual’s acquisition of skills in a moment-based approach. At the beginning of a project the individual comes up with specific skills that she wants to work on. Then, during critical milestones and at the completion of the project, the rest of the team gives feedback on those specific areas. That’s real curation of a skillset, where the individual can own her career progress, people can validate it, and the company can say, “oh, she’s telling us she’s ready for a promotion, look, she’s actually done all of these things and demonstrated she can be successful.”

JJ: So really it’s democratizing the job application and promotion process.

JS: Yes! That’s exactly why many of our clients have turned to selection and assessment solutions. Assessments enable our clients to reduce unconscious bias in the hiring and promotion processes and ensure that a candidate has the actual skills necessary for the role, as opposed to a particular degree from a particular university, which is, at best, only a moderate proxy for job fit. Through these solutions, our clients effectively expand their talent pool and improve the likelihood that the candidates they hire have both skill and culture fit, which can lead to increased cognitive diversity – that is, team members who have different backgrounds and thus approach problems in different ways – improved retention, and reduced recruiting costs.

MD: We are seeing some progress from expanded talent pools, but the critical question is, once a female or a non-white employee has joined a company, why aren’t they moving up as fast as white men?

JS: I think maybe it goes back to the issue that I heard from one of our clients: there’s a history of certain roles looking and acting a certain way. It’s hard to overcome the unconscious bias of hiring and promoting people who fit that perception.

It could also be that people aren’t putting their hat in the ring for those promotions. Women and people from certain cultures aren’t oriented toward self-promotion and won’t put their hat in the ring if they are only 10% confident they’ll be successful. So in that case, you really have to focus on the current leaders: it’s so important that they understand this dynamic. Even at BTS, there are so many outstanding individuals who don’t self-promote, and you have to be the megaphone for them.

JJ: When running our leadership development simulation experiences, BTS has always encouraged participants to form the most diverse teams possible (gender, culture, geography, role, tenure, etc.). What’s the origin behind why we ask our clients to create diverse simulation teams?

JS: Initially, this was primarily because our clients value enabling leaders to create networks across the company, more so than because of any inherent desire for cognitive diversity. Clients often come to us when they need a push toward a “one company” mindset, so simulation teams are built to bring people out of their silos and align around a single company goal.

But, nowadays, people recognize that cognitive diversity is a good thing. That being said, at BTS, we are very protective of our culture and team environment, and sometimes we’re guilty of mistaking like-minded people as a proxy for “I think I’ll get along with you”. So you have to have two heads when hiring: we want someone different who will shake us up, but we also want to be at peace and have fun and a strong culture fit.

MD: If you could leave one piece of advice for leaders hoping to create a more diverse and inclusive workplace, what would it be?

JS: In alignment with Liz Wiseman‘s book, “Rookie Smarts,” I’m trying to get leaders to crave being rookies again. If you’re going to learn as fast as the pace of change, and be able to transform yourself, you have to be a bit of an adrenaline junkie with a “rookie mindset”. I want people to realize that it’s not scary to do something different and new – it’s exciting. And, if you put yourself in an uncomfortable role, you get humbled, become curious, and seek advice from the best around you. As a result, you will most likely do the best work of your life.

There is a correlation between the “rookie mindset” and shifting beliefs in support of a more diverse team: we need leaders who crave differences. That has to be the overarching mindset when you’re recruiting and looking to add members to your team. If you crave differences in skills and personal history and combine that with culture-fit, then innovative ideas, high performance, and fun should follow. Others will notice the benefits of the diverse team and follow, assuming the appropriate recruitment and performance systems are in place. That’s how you start to shift mindsets at the top and eventually throughout the company.

About the Authors

Diversity has been a passion area for both MJ Doctors and Jenny Jonsson, both of whom have spent significant time – prior to and while at BTS – working to improve economic opportunities for women, immigrants, and individuals of varying socioeconomic backgrounds.

Insights
November 2, 2018
5
min read
Finding your personal purpose
Jessica Skon, Madeline Renov, and Lee Sears discuss defining personal — and better yet, and organizational — purpose.

Leading with Purpose, Part 2

As we discussed in the first post of this blog series, purpose is an essential ingredient for business success and employee engagement today. Yet purpose is a nebulous concept, and often difficult to pinpoint. I know this firsthand. Around twelve years ago, a consultant in his early 20s joined the BTS San Francisco office where I was working, and I took him out to lunch. Within ten minutes of sitting down to lunch, he asked me, “So what’s your purpose? Why have you been at the firm for so long?” I’ll never forget it. I’d been at the company over six years, and that was the first time somebody asked me that. I felt it was a fair question, and yet I didn’t have an eloquent answer at the ready.

Coming up with a response, I started to talk about some of my guiding principles, things like learning and having fun, how I’m proud of the impact our work has on clients, and how I love building a team of leaders (or a business) that grows every year. The question from this new hire, though, who was probably ten years younger than me, put me on the spot and made me feel a bit inadequate as a leader. At first I did not have a crisp, compelling answer.

Since then I’ve been in many dinners with other executives from Fortune 500 companies to tech startups, who more and more frequently are being expected to lead their organizations with a clear purpose… and at the same time understand that each employee’s purpose and what motivates them is going to be slightly different than theirs, the firm’s and their peers’, and that’s okay. Once a leader or a firm has clarity of purpose it can be a beautiful energy and driving force, and should be the first lens with which leaders run their business.

So, how does one find a sense of purpose?

In truth, many people assume that only those who follow a vocation like medicine, teaching or work in the charitable sectors can have a true sense of purpose at work. Our experience, as well as much current research and writing, would suggest otherwise.

One simple way of looking at this is captured elegantly by the Japanese concept of Ikigai, or ‘The reason for being.’ The idea of Ikigai is that one’s sense of purpose lies at the intersection of the answer to four questions:

  1. What do I love?
  2. What am I good at?
  3. What can I get paid for?
  4. What does the world need?

Balance

Image from Forbes.com

Take these four questions and look at the organization you are already a part of. Use them to see if you are in touching distance of doing more purposeful work, whether it be at the core of what you do or as a part of work that sits slightly outside the current definition of your job. Whilst we may not get the ultimate answer to the purpose question from our current work, once we have identified our own Ikigai we can go in search of the more meaningful elements of our jobs and start shaping the agenda at work in a new way. In the next installment in this blog series, we will discuss how to use your personal purpose to shape your organizational purpose and lead with meaning.