A Complex Model with Many Moving Parts

When Joe Whittinghill came into his role as general manager for talent, learning, and insight at Microsoft, the tech giant’s leadership model was characteristically thorough. There were eight competencies leaders needed to succeed, 10 behaviors that marked inclusive diversity, five things employees had to do in order to flourish, and over 100 skills you needed to train on, depending on your profession.

A Model that Felt Exhaustive

“These components were not memorable,” Whittinghill said. “They were exhaustive.” The sheer volume of information was overwhelming, and it was difficult for leaders to know where to start. The model was so complex that it was hard to see the forest for the trees.

A More Human-Centered Approach

Whittinghill decided to take a step back and re-evaluate the company’s approach to leadership development. He wanted to create a model that was more human-centered, more flexible, and more effective. He believed that leaders needed to be able to adapt to changing circumstances, to be resilient in the face of uncertainty, and to be able to communicate effectively with their teams.

A New Focus on Human Skills

Whittinghill’s team developed a new set of leadership competencies that focused on human skills, such as empathy, communication, and problem-solving. They also created a framework for inclusive leadership that emphasized the importance of diversity, equity, and inclusion. The new model was designed to be more flexible and adaptable, allowing leaders to develop the skills they needed to succeed in a rapidly changing world.

A More Sustainable Approach to Leadership Development

The new approach to leadership development at Microsoft has been met with widespread praise. It has been praised for its focus on human skills, its emphasis on diversity and inclusion, and its commitment to creating a more sustainable and effective leadership model. The approach has been recognized as a best practice in the field of leadership development, and it has been adopted by other organizations around the world.

FAQs

What was the old leadership model at Microsoft like?

The old leadership model at Microsoft was complex and exhaustive, with eight competencies, 10 behaviors, five things employees had to do to flourish, and over 100 skills to train on, depending on one’s profession.

What was the main problem with the old model?

The main problem with the old model was that it was overwhelming, making it difficult for leaders to know where to start and to focus on what was most important.

What is the new leadership model like?

The new leadership model at Microsoft is more human-centered, flexible, and effective. It focuses on human skills, diversity, equity, and inclusion, and is designed to be more adaptable and sustainable.

How has the new model been received?

The new model has been praised for its focus on human skills, its emphasis on diversity and inclusion, and its commitment to creating a more sustainable and effective leadership model. It has been recognized as a best practice in the field of leadership development and has been adopted by other organizations around the world.

Can a Strong Culture Be Too Strong?

The Benefits of a Strong Culture

A strong company culture can have a profound impact on employee engagement, productivity, and overall success. It can foster a sense of belonging, provide a clear sense of direction, and create a positive and inclusive work environment. A strong culture can also lead to increased employee retention, improved communication, and better decision-making.

The Dangers of a Strong Culture

However, having a culture that is too strong can have negative consequences. It can lead to groupthink, where employees are so focused on the company culture that they are unable to think critically or challenge the status quo. This can result in poor decision-making and a lack of innovation. Additionally, a strong culture can also lead to an “us versus them” mentality, where employees feel that they are part of an exclusive group, and outsiders are excluded.

A Case Study: Netflix’s Culture

Netflix is a company that is often cited as having a strong company culture. Its “Freedom & Responsibility” manifesto outlines the company’s values and expectations, and is widely shared with employees. Netflix also has a flat organizational structure, with no traditional management hierarchy. This allows for more autonomy and flexibility, but can also lead to a lack of clear direction and accountability.

Challenges and Consequences

In recent years, Netflix has faced challenges and consequences related to its strong culture. The company has faced criticism for its lack of diversity and inclusion, and has struggled to balance its focus on innovation with the need for clear direction and accountability. Additionally, the lack of a traditional management structure has led to confusion and power struggles within the organization.

Conclusion

While a strong company culture can have many benefits, it is clear that it can also have negative consequences. It is essential for leaders to be aware of the potential pitfalls and take steps to mitigate them. This can include creating a culture that is inclusive and diverse, and encouraging open communication and constructive feedback. By striking a balance between the benefits of a strong culture and the potential drawbacks, leaders can create an environment that is positive, productive, and successful.

FAQs

What is a strong company culture?

A strong company culture is one that is well-defined, shared, and consistently embodied by employees. It is the set of values, norms, and expectations that guide behavior and decision-making within an organization.

What are the benefits of a strong company culture?

The benefits of a strong company culture include increased employee engagement, improved communication, and better decision-making. It can also lead to increased employee retention, improved morale, and a positive work environment.

What are the potential drawbacks of a strong company culture?

The potential drawbacks of a strong company culture include groupthink, decreased diversity and inclusion, and a lack of clear direction and accountability. It can also lead to an “us versus them” mentality, where employees feel that they are part of an exclusive group, and outsiders are excluded.

Challenges in Family Business Governance: A Look at High-Profile Examples

### Struggling with Governance, Leadership Transitions, and Survival

It’s no secret that family businesses can struggle with governance, leadership transitions, and even survival. Consider a few high-profile examples:

Banco Espírito Santo was rescued by the Portuguese government last year following the resignation of its CEO, the great-grandson of the bank’s founder, amid allegations of financial improprieties. The Doosan Group, a South Korean conglomerate, was thrown into turmoil when the clan that runs it replaced one brother with another in the chief executive role. Fiat, the Italian auto group run by the heirs of Gianni Agnelli, went through five CEOs and three chairmen in two years before bringing in an outsider to lead it. And in the United States the New England grocery chain Market Basket faced employee protests and lost $583 million in sales as two cousins—one a board member, the other the chief executive, both grandsons of the founder—publicly vied for control of the company.

### The Challenges of Family Business Governance

Family businesses often face unique challenges that can impact their overall success. One of the most significant challenges is the difficulty of separating personal and professional relationships. When family members are also business partners, it can be hard to make tough decisions and maintain a level of objectivity. Additionally, family dynamics can lead to power struggles and conflicts, which can ultimately affect the business.

### The Importance of Effective Leadership Transitions

Another challenge that family businesses often face is the transition from one generation to the next. This can be a difficult and complex process, especially when multiple family members are involved. A successful transition requires careful planning, clear communication, and a strong leadership structure. Without it, family businesses can struggle to adapt to changing market conditions and ultimately face decline.

### Conclusion

In conclusion, family businesses face a range of challenges, from governance and leadership transitions to survival. By understanding these challenges and putting in place effective strategies to overcome them, family businesses can thrive and achieve long-term success. By learning from the examples of high-profile family businesses that have struggled, we can gain valuable insights into the importance of effective governance, leadership transitions, and family dynamics.

### FAQs

* What are some common challenges that family businesses face?
+ Governance, leadership transitions, and survival
* What are some examples of high-profile family businesses that have struggled?
+ Banco Espírito Santo, Doosan Group, Fiat, and Market Basket
* What is the key to a successful leadership transition in a family business?
+ Careful planning, clear communication, and a strong leadership structure