Mind-sets ingrained by past management practices remain ingrained far beyond the existence of the practices that formed them, even when new management practices have been put in place.
Here are three business examples that underscore the perils of ignoring this lesson. Example one: a bank that identified how its high performers succeeded in cross-selling decided to roll out a change program with support scripts and good profiling questions for the other bankers to use—and was dismayed to find that these moves had a negligible impact on sales. A second example: a telco introduced a dramatically simplified process and rating system for performance reviews only to find that its leaders still avoided delivering tough messages. Finally: a manufacturer invested hundreds of millions in a knowledge-management technology platform meant to discourage hoarding and encourage collaboration—only to declare, several months later, that the system had been a complete failure.
In all these examples, the companies did a good job of recognizing the behavioral change needed to achieve the desired goals. Yet they didn’t take the time, or use the tools available, to understand why smart, hard-working, and well-intentioned employees continued to behave as before.
At the bank, for instance, two seemingly good but ultimately performance-limiting mind-sets accounted for the failure of the new sales-stimulation tools and training. The first was “my job is to give the customers what they want”; the second, “I should follow the Golden Rule and treat my customers as I would like to be treated.” At the telco, employees had a deep-seated, reasonable-sounding belief that “criticism damages relationships.” At the manufacturing company, people had an underlying conviction that “around here, information is power, and good leaders are powerful leaders.”
The upshot? By looking at—and acting on—only observable behavior, company leaders overlooked its underlying root causes. Consequently, the change efforts of all three organizations led to disappointment.
Once the root-cause mind-sets are identified, the next step is to reframe those beliefs and thereby expand the range of reasonable behavioral choices employees make, day in and day out. That creates the caterpillar-to-butterfly effect described earlier. Would different beliefs, for example, have inspired expanded and better-informed behavioral choices for average-performing bankers? If so, which beliefs? Suppose they believed that their job—indeed, the way they add value for others—was to “help customers fully understand their needs” rather than “giving customers what they want.” Also, what if instead of applying the “Golden Rule,” bankers applied the “Platinum Rule”: treating others as they (rather than bankers) want to be treated.
And what if the telco executives, in their performance-management discussions, had believed that “honesty—combined with respect—doesn’t damage relationships; in fact, it is essential to building strong ones”? And what if the manufacturing managers had thought that “sharing information rather than hoarding is the best way to magnify power”? Had they believed that, the company very likely wouldn’t have needed an expensive (and ultimately futile) knowledge-management system to help employees reach out to one another and share best practices.
Beneath each of the reframes described above, it’s important to note, lies a deeper shift in worldview. For example, moving from the giving-customers-what-they-want mind-set to helping them fully understand what they really need reflects a move from subordinate to peer. Recognizing that honesty builds rather than destroys relationships reflects a shift from victimhood to mastery. And choosing to believe that power is expanded by sharing information, not that hoarding information is power, focuses on abundance, not scarcity.
"Getting personal about change," by Scott Keller and Bill Schaninger. McKinsey Quarterly. August 21, 2019.
