Tuesday, January 10, 2012

Success: A Breeding Ground for Complacency?


Here's another exclusive guest post from John Kotter. Great advice on how to battle "complacency cancer":

Success: A Breeding Ground for Complacency?
John P. Kotter

“Success is a lousy teacher. It seduces smart people into thinking they can't lose.”
 
Bill Gates said that, and he’s exactly right. More often than not, great accomplishments cause individuals and organizations to become comfortable with their way of doing things. Businesses turn static. Workers turn their focus inward. Even the most dynamic of organizations can turn complacent, thinking that what they are doing is right, that there is no need to change, regardless of what’s happening outside.

Here’s one example: This summer, the Washington Post asked me to comment on the debt ceiling debate. At the time, congressmen were busy deflecting blame for the dire economic circumstances gripping the country. Negotiations were gridlocked. A deal to stave off economic calamity seemed out of reach. I wrote that Washington suffered from a “complacency cancer,” that after 250 years as the nerve center of the most prosperous, innovative, militarily and economically advanced nation in modern history, success had gone to our political leaders’ heads. They were resting on their laurels, refusing to change, confident that the old way of doing business would suffice. The same behavior was on display just a few weeks ago, as the congressional “super committee” failed to reach a deficit-reduction deal.

The complacency cancer plagues the private sector as well. I recently read about a study that found successful companies to be far less likely than their weaker counterparts to pursue large-scale change. My own research over more than three decades has shown the same results: despite being better prepared to take bold action, companies with a high level of achievement tend to feel content with the status quo. They sit tight. They focus on themselves. And they ignore the rapidly changing world around them, even in the face of cold, hard facts that clearly show the need to move in a new direction.

It’s plain to see how foolish this thinking is, but no one is immune—not you, not I, not even the most intelligent, experienced leaders. Yet, in today’s constantly changing world, complacency is a recipe for disaster. As a leader, you must do everything in their power to identify it and root it out.

Here are some questions you can ask to determine whether complacency has set in among your employees:

• Are team conversations inwardly focused, and not about new markets, emerging technologies or potential competitors?

• Are past failures discussed only to stall new initiatives, rather than as learning experiences?

• Do important meetings end with no decisions about what needs to happen immediately?

• Do workers regularly blame others for problems, as opposed to taking responsibility and changing behavior?

• Are highly selective facts used to shoot down data that suggests there is a major challenge or opportunity knocking at the door?

If the answer to most of these questions is “yes,” then complacency has taken root. Before it continues to spread, you must take action to instill a sense of urgency in your employees.

Determine what challenges and opportunities are out there. Discuss them with other senior leaders so those at the top have real clarity about where the organization is headed. Then, communicate that opportunity to your workers, keeping each of the following tips in mind:

• Appeal to the head and the heart. Sales figures and spreadsheets can help people start thinking differently, but they’re not going to convince them to change their behavior and take the kind of action needed to move an organization in a new direction. That takes an appeal to the heart. Make a rational case, but do it in a compelling way to win over hearts and minds.

• Bring the outside in. If inward focus is the problem, attention to outward reality is the answer. Share outside perspectives. Shed light on troubling data. Listen to customer-facing employees. Each of these tools can be persuasive in helping people see that the outside world is changing—and so, too, must their organization.

• Behave with true urgency. Lead by example. If you’re expecting your employees to change, you must change first. Demonstrate your own sense of urgency—in meetings, in emails, during speeches and in one-on-one interactions—and never let up.

• Find opportunity in crises. Always look for the upside possibilities. Crises are threats, to be sure. But destabilizing experiences, if navigated carefully and harnessed effectively, can be powerful drivers of change.

• Deal with the naysayers. There will always be skeptics. But then there are people who, for whatever reason, simply do not want change. These people, especially if powerful, can be dangerous. The key is to confront them head-on. Do not try to co-opt them or ignore them. It won’t work. Instead, distract them by sending them on special assignments, expose the fallacies in their behavior for all to see, or, if all else fails, push them out of the organization. That bitter pill is sometimes necessary to fight the complacency cancer.

As urgency takes hold, complacency vanishes. Now, your organization is on the path to true success: able to adapt, to change, and to continually seize big opportunities.

John P. Kotter is the chief innovation officer of Kotter International, a firm that helps leaders accelerate strategy implementation in their organizations. He is also the Konosuke Matsushita Professor of Leadership, Emeritus at the Harvard Business School. His is the premier voice on how the best organizations actually achieve successful transformations. His international bestseller Leading Change—which outlines an actionable eight-step process for implementing successful transformations—has been used by leaders around the world who want to achieve great results. John and his colleagues at Kotter International write the Change Leadership blog on Forbes.com.

5 comments:

John Spence said...

John, I could not possibly agree more with your assessment. Several years ago I attended a convention of bankruptcy lawyers (happy people, fun, fun happy people) and during a roundtable discussion of some of the senior attendees I asked them what caused most companies to go into bankruptcy?
A distinguished gentleman who had been bankruptcy lawyer for more than 30 years replied "that is very simple John – it is the 4 I’s:

Ignorance; not paying attention to the marketplace, to your competitors, to major business trends. Indifference; thinking that your company is so successful that you become complacent. Inflexibility; understanding that change is necessary, but being unable to get the culture of your organization to make real change. And lastly, inconsistency; changing so much (flavor of the month club) that you never gain any traction in the marketplace. To me, the antidote to the 4 I’s is:

Aggressive external market focus.

Ridiculously high level of customer focus.

Keep the “Main Things” the main things.

Bullish on knowledge sharing and learning.

Teamwork is mandatory – not optional.

Passion and commitment at all levels.

Foster a healthy paranoia.

Revel in change.


I hope these comments have added value to this discussion. Thanks so much for all the wonderful work you have done Mr. Kotter; your ideas have made a huge that impact on businesses large and on me as an individual businessperson. Best regards, John Spence

Sarah T said...

I wonder how we distinguish from a organization that is fighting complacency vs. an organization in which people are in survival mode - over worked, fire fighting, doing more with less, dealing with chronic stress. I still agree with many tenants of the post, but was reflecting that many of the "symptoms" could also show up in an organization where people are just dog tired, which emotionally is very different from complacency.

Anonymous said...

Sarah, could this be the result of management's inability to prioritize for its department, function or corporation, or having people in the wrong seats on the bus, or on the wrong bus?

Parag Pandey said...

success does breed complacency. not only among the successful but also among those who view and judge the successful. for the latter category, it's 'why fix what ain't broken', and hence about continuing to accept/pardon/ignore what the successfuls think,say, and do.
If you want to, you could read about this in my blogpost titled 'seen that cook lately?' http://eyeseework.blogspot.com/2011/12/cook-in-kitchen.html

Mimi Bacilek said...

I had read this article off a Tweet and found it very interesting. Timely to come across it again today - the day Eastman Kodak company officially declared bankruptcy. A very sad, tho hardly unexpected, day in Rochester.