Tag: Organizational Change

Living the DaVita Way

Posted on | by Sam | 3 Comments on Living the DaVita Way

On a chartered bus in Nashville, surrounded by colorfully-clad nurses and office administrators, I knew I was in for a different sort of experience when the woman next to me found out I was a newbie, leaned closer and assured me: “Everyone remembers their first.”

It’s not what you think.

In fact, it was the annual conference for the 41,000 employees of DaVita, a Fortune 500 company that specializes in renal care – and, as it turns out, in creating a transformational organizational culture.

The bus was part of an elaborate plan to ensure that every arrival to the conference felt welcomed and valued. Volunteers were scattered throughout the airport with signs leading us slowly to the bus, where we boarded amidst an expectant, cheerful din. An orientation video provided further clarity of what to expect, although nothing can really prepare you for arriving at a hotel and being greeted by hundreds of red-shirted DaVita employees, a house band playing Jumpin’ Jack Flash, and the company’s CEO, Kent Thiry, personally greeting – and hugging – each new arrival.

Veteran staffers refer to it as “the DaVita way”, and it was on display for the next three days. Yet DaVita’s story is not just remarkable for what it is, but what it was, and how it remade itself.

Headquartered in Denver, DaVita was, as recently as 1999, nearly bankrupt. That’s when Thiry took the top post and chose to embark on an organization-wide effort to craft a new set of core values and sense of mission, and a work culture of shared responsibility, democratic decision-making, and continuous learning and growth.

“About a third of the staff said, ‘OK, that’s the fad of the month,’ Thiry recalled for the Stanford Business Review. “A third of the room was literally insulted that I would be demeaning them by thinking that they’d fall for that sort of rhetorical flourish. And maybe a third were interested.”

But Thiry persisted, so certain was he that a healthy culture helps people “feel an emotional level of trust and mutual commitment” and frees them from the feelings of fear, confusion and mistrust that plague unhealthy work environments.

After years of working at it, DaVita now describes itself as a global village with a Trilogy of Care: “for our patients, our teammates and our world.” As DaVita Chief Wisdom Officer Steve Priest explains, “When we choose to become citizens of the DaVita community, we make a decision to engage our head, heart and hands for the greater good of those around us.”

That means employees are expected to watch out for each other and work toward the good of the community. It means DaVita’s business objectives are always designed to support the village first, and the bottom line second. And it means that what drives each employee has more to do with who they are than what they do. “We say we are a community first and a company second,” Thiry said. “That doesn’t mean we don’t care about profit, but it’s a means, not the end.”

The clarity of this vision is on ubiquitous display at a DaVita conference. Giant banners list the company’s mission and core values, alongside personal testimonials from staff, clients and patients that testify to the power of the DaVita way. Thiry also models the values by publicly sharing the results of his own 360-degree performance review – and publicly reflecting on the areas where he sees himself in need of the most improvement.

As one attendee told me, “What makes us special is that our goal is not just to create better workers. We value all aspects of a person – head, heart and hands – and we evaluate people that way as well. That’s why our culture is so strong – we share a mission to cultivate healthy, happy people – our patients, our clients, and ourselves – and that is the standard against which we measure our work each year.”

Thanks to this clarity of purpose, the dark days of 1999 have given way to annual revenue in excess of $6 billion, alongside a strong commitment to organizational democracy. “A company produces most what it honors most,” says Thiry. “And we want a community of citizens, not just employees. You can’t create citizens unless you ensure that everyone has a voice and an understanding of how to use it effectively. It really is that simple – and that difficult.”

My neighbor was right. Everyone really does remember their first.

Occupy Third Grade?

Posted on | by Sam | 5 Comments on Occupy Third Grade?

On a crisp fall morning in the nation’s capital, 3rd grade teacher Rebecca Lebowitz gathered her 29 public school students on their familiar giant multicolored carpet, and reminded them how to make sense of the characters whose worlds they would soon enter during independent reading time.

“What are the four things we want to look for when we meet a new character?” Ms. Lebowitz asked from her chair at the foot of the rug. Several hands shot up before nine-year-old Monica spoke confidently over the steady hum of the classroom’s antiquated radiator. “We want to pay attention to what they do, what they say, how they feel, and what their body language tells us.” “That’s right,” her teacher said cheerily. “When we look for those four things, we have a much better sense of who a person really is.”

As the calendar shifts to the eleventh month of 2011 – a year of near-constant revolution and upheaval, from the Arab Spring to the Wisconsin statehouse to the global effort to Occupy Wall Street – what might the rest of us learn from students like Monica? If, in short, we were as smart as a third-grader, what would we observe about the character of this year’s global protests, and what might we decide to do next?

1. It is not about “democracy” – As much as we glorify and value the principles and practices of our democratic system of government, it’s not democracy per se that is at the root of this unleashed global yearning. As New York Times columnist Tom Friedman recently pointed out, what motivated the protesters in Tahrir Square – and what most animates those who continue to brave the wintry weather in public squares around the world – is a deeper quest for what lies at the root of a genuinely democratic society: justice.

The people protesting around the world are not just looking to be seen; they’re demanding to be heard. And what they’re saying is that from Egypt to the United States, essential social contracts have been broken – contracts that require at least a modicum of fairness and balance. If anything, therefore, these movements are about highlighting an uncomfortable truth: merely having a democracy does not guarantee a just society, and the tendencies of democracy and capitalism, left untended, tend to flow in different directions.

2. It is about unsustainable social orders – Across the Middle East, citizens have been risking their lives for months to protest the injustice of their daily lives. And yet the absence of social justice is a cancer that has already spread well beyond the borders of the Arab world. According to a recent analysis of the 31 countries that make up the Organization for Economic Cooperation and Development (OECD), nearly 11% of all people in OECD countries live in poverty. Worse still, 22% of American children are affected by poverty, yet the United States spends only 0.33% of its GDP on pre-primary education.

When these data are combined with other indicators like income inequality, access to health care, and the percentage of elderly citizens living in poverty, the United States gets a social justice rating that trails all but four of the OECD’s 31 countries. Add to that the now-well-known fact that the top 1% of Americans now control 40% of the total wealth, and you have an unsustainable social system, plain and simple. Clearly, people are angry, and they’re not going to take it anymore.

3. It does require a reboot of public education – History has shown us that to sustain a movement for transformational social change, anger is both necessary and insufficient. To sustain our energy, we are best fueled by an empathetic regard for the needs of others, not just our own. As Gandhi put it, “I discovered in the earliest stages that pursuit of truth did not admit of violence being inflicted on one’s opponent but that he must be weaned from error by patience and compassion.”

If what we seek, then, is a more sustainable and just social order, how should we recalibrate our public schools – the institutions most responsible for equipping children with the skills and self-confidence they need to become effective and justice-oriented change agents as adults?

We might start by evaluating each other the same way Ms. Lebowitz’s students evaluate new characters in a book. To fulfill the egalitarian vision of 2011, children must grow up in learning environments that are sensitive not just to what they do and say, but also to how they feel and what their body language tells us about the larger world they inhabit. This, too, is a central insight of those who study systemic change. “We need to learn to attend to both dimensions simultaneously,” says M.I.T management professor Otto Scharmer. “What we say, see, and do (our visible realm), and the inner place from which we operate (the invisible realm, in which our sources of attention reside and from which they operate).”

Recent events have underscored just how essential it is to acknowledge our global interdependence; after all, it was the financial subterfuge of the few that affected the personal wellbeing of the many. That’s why a healthy democracy is more than just policies and practices – and a healthy school is more than just test scores and teacher policies. That’s why the American activists of tomorrow need more than just the occasional lesson about Gandhi or King; they need consistent opportunities to actively apply their own developing compassion for others in the service of creating a better world. And that’s why students like Monica need to grow up in a society willing to heed the rising voices of the protesters and recommit to our nation’s founding promise:  “We the people, in order to form a more perfect union, establish justice.”

(This article also appeared in the Huffington Post.)

Why Adrian Fenty Lost The City – and How Vincent Gray Can Win It Back

Posted on | by Sam

Now that the dust is beginning to settle from the DC mayoral race, it’s worth examining what outgoing mayor Adrian Fenty failed to understand about leadership and systems change, and what Vincent Gray will need to understand – and do – if he wants a different result.

This is an issue I explore in my most recent book, in which I argue that any organizational leader, whether s/he is an elementary school principal, a Fortune 500 executive, or the mayor of an urban city, needs to develop three foundational skills: self-awareness, systems thinking, and strategically-deployed collaborative decision-making. I also explain, in greater detail than I can here, how each skill is necessary and insufficient by itself, and how, in an organizational context, each functions in a nonlinear fashion. It is only through the combination of these abilities that leaders become more effective, and there is no strict and surefire order one should follow in order to cultivate these skills in himself and in others. As with everything else, human beings refuse to behave so predictably.

There is, however, a general continuum of which we should be aware. At the personal level, we begin by reflecting on who we are, what we value and where we are most likely to thrive and struggle as leaders. At the relational level, we start to become more aware of how our behaviors contribute to the culture around us; gradually we develop the capacity, with the help of others, to “see the whole (chess) board.” And at the organizational (or city-wide) level, we resist the urge to sell “our” ideas, opting instead to consistently invite others to co-construct the ideas – and the responsibilities – we will share.

When these three skills start to take root in individuals and the organizational culture of which they’re a part, a palpable shift takes place. Transformational change, and the collective will and clarity needed to achieve it, becomes possible. This doesn’t mean transformational change will necessarily occur, only that the proper conditions will have been created. At this point, we need a fourth leadership skill: ensuring that people have the understanding, motivation and skills they need to continually work with the forces of change.

Working with the natural forces of change is very different from “managing change,” just as co-creating a common vision is distinct from getting people to “buy in.” In one approach, organizational systems and the individuals who inhabit them are managed like machines, and people are given pre-packaged “solutions” that supersede community input; in the other, people and organizations are seen as complex, living systems, and the inherent creativity and commitment of the people being asked to change is what drives all decisions.

The fact that so many initiatives struggle to change core behaviors or processes is particularly troubling when one considers that, in essence, learning itself is change. But the greater truth is less that people resist change (though they do), and more that they resist being changed.

Knowing what will be easy and what will be difficult when it comes to systems renewal is essential for working with the natural forces of systemic change. And although there is no single way to be successful, there are different stages of the change process that can guide Mr. Gray in his work with us.

The Three Stages of Change – Mind, Heart & Voice

In everything the new mayor does, he should be mindful of how his constituents will experience the changes in three areas – their minds, their hearts and their voices.

Here’s what I mean by that: Before we are willing to change anything about our work or our behavior, we must first understand why the change is necessary and what it will require of us (mind). To actively participate in a major change initiative, we must feel intrinsically motivated in some way to contribute (heart). And to follow through on our individual and shared visions of our future community, we must have the skills and capabilities to not only demonstrate new behaviors, but also ensure greater alignment between our internal passions and our external actions (voice).

Often, what happens in massive change initiatives is we pay attention to some, but not all, of these stages. Teachers are asked to adopt a new teaching style before they fully understand why they should do so. Schools in search of more parent participation fail to explicitly consider what it will take to motivate greater numbers of adults to get involved. And students are invited to play a more active role in school governance before they’ve been equipped with the skills they need to do so effectively and responsibly.

Implicit in all of these scenarios is the recognition that implementing systems-wide change requires an approach that encompasses individual, group, and organizational learning needs. Some of these needs will be simple, visible and straightforward, such as providing basic information; others will be intangible, invisible and elusive, such as addressing basic human emotions.

To me, the most accurate (and damning) criticism of Adrian Fenty and Michelle Rhee was that they failed to understand, or even value, the importance of addressing the human elements of change. Some might say that such a statement is too soft-hearted, old-school and quixotically progressive to have any currency in the modern world. Yet this is what I learned in business school, not education school. For example, in Big Change at Best Buy, their book chronicling a major restructuring initiative at the consumer electronic retailer, authors Elizabeth Gibson and Andy Billings underscore the universality of these distinctly human elements of change. “Getting merchandise out on the shelves at the right time, staffing the service counter with the right number of people and within the labor budgets – these are the ‘hard’ or concrete issues,” they write, “and they are the easiest to assess and change.

“By contrast, the ‘soft’ issues are more difficult  . . . and they are the heart of transformational change. The tangible features may represent the face of change, but the human factors – dealing with uncertainty, motivating and energizing people, and creating behavioral change – are critical to success. When soft issues are not addressed, the organization and its people appear resistant to change. As with any large system, organizations have their own inertia. Resistance, though an inevitable feature of change, becomes the convenient term for failure to address the soft side of change.”

Understanding the forces of change in this way places a unique set of challenges on a mayor, or a schools chancellor, or an organizational leader, because it means they must balance the community’s attention to both hard (visible) and soft (invisible) issues.

Other insights from the private sector underscore this point, and help clarify the optimal role for leaders to play in systemic improvement work. Harvard Business School professors Michael Beer and Russell Eisenstat explain: “The most effective managers [in a multiyear study] recognized their limited power to mandate corporate renewal from the top. Instead, they defined their roles as creating a climate for change, then spreading the lessons of both successes and failures.” Management consultant Jim Collins puts it another way: “True leadership only exists if people follow when they have the freedom not to.”

Because systems change is such a nonlinear experience, and because it requires leaders both to engender a sense of order (as opposed to control) and give people the freedom to co-author the process, it’s easy to imagine Mr. Gray feeling overwhelmed about what to do. I believe the three-stage framework of mind, heart and voice can help him for two reasons: first, it will provide a guide for him and his staff that helps explain human, group and organizational behavior in any major change initiative; and second, it can be used as a framework for outlining a specific set of knowledge, skills and dispositions that our schools and community agencies should strive to cultivate throughout their student, faculty and parent communities.