Leadership Insights
from the Untangle Doctor®
Blog Post Archive
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More Crooked Tangles—Who Can We Trust?
In the past week, I have been repulsed by news of one of the biggest scams of all time. Bernard Madoff, head of Bernard L. Madoff Securities, allegedly conned scores of wealthy investors, lulled by promises of higher-than-average yearly returns. Madoff was the CEO of a company with over 200 employees. We don't yet have all of the facts. However, what is remarkable to me is that so many, including Madoff employees, did not question consistent financial returns that defy explanation. How could so many allegedly smart people believe that there are special algorithms that are immune from market forces? And how could so many ignore the red flags of a leader who became gruff and angry when questioned about his strategies?
The Crooked Tangle—How Personal Greed Can Strangle Organizations
Today's Wall Street Journal headline story outlines the case of Illinois Governor Rod. R. Blagojevich. The chief executive of the state of Illinois was arrested today for attempting to sell President-elect Obama's Illinois Senate seat. He was also charged with conspiring to bribe others and committing mail and wire fraud. Federal authorities also allege that the governor attempted to bribe the head of Children's Memorial Hospital in exchange for state funding. Further, the FBI alleges that the governor wanted Chicago Tribune reporters who were critical of him to be removed in exchange for a speedier sale of Wrigley Field.
Building Trust During Merger Integrations
According to a November 2008 McKinsey study, 22% of over 1400 executives from a cross-section of industries, geographies, and functional areas anticipate that they will be seeking merger and acquisition opportunities. That is, those companies that are still in fairly good financial shape will take advantage of opportunities to purchase complimentary companies at a lower price than usual.
When times are tough, it is human nature to batten down the hatches. However, when business is reduced to just a set of metrics and numbers without consideration to the human side of business, growth and productivity are unintentionally squelched. Several years ago some colleagues and I were making a sales pitch to the CEO of a large chemical manufacturing company set to make major large-scale change. We argued that there was a need to manage the human side of the change in order to get the desired return on investment. The CEO remarked that his employees would just have to "get over it." Fortunately, we were able to persuade the CEO and CFO that they could not afford to be distracted by employees who were not on board and aligned with the desired changes.
Avoiding Tangles during Merger Integration
I have consulted with a number of companies struggling with merger integrations. Merger integration processes are ripe with opportunities for tangles. I have coined the term Organizational Tangles™ to cover a broad spectrum of human dynamics challenges that block productivity and results. Based on my years of experience as a consultant to leaders, as well as my research, I have created a taxonomy of tangles. A tangle is characterized by strong egos, protected turf, and a propensity to blame others. A common hallmark of tangles is "us vs. them" thinking and behavior.