Tuesday, February 13, 2007

Knowledge Leadership Journal Interview

This post is from an interview with the "Knowledge Leadership Journal."
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Michael Beitler began his career with KPMG, one of the world's largest consulting firms. While at KPMG, he had the opportunity to work with a client list that included the world's best companies, both domestic and international. He left the firm eventually to establish his own consulting practice in Washington, DC. After three years, he was offered an executive position at a southeastern bank (one of his clients). Mike was soon promoted to Senior Vice President & Chief Financial Officer. In this position, he was responsible for strategic planning, investments, accounting, management development, and organizational development. After ten years in banking, Mike returned to consulting and training.

In the years that followed, Mike built a successful practice specializing in organizational effectiveness. He has worked with clients in North America, Europe, and Asia. Mike’s clients have included General Motors, Coca-Cola, Wachovia, BASF, Daimler Chrysler, IBM, BB&T, and John Deere. Mike’s areas of expertise are strategic change, overcoming resistance to change, strategic learning & knowledge management, and succession planning. His most recently published books are Strategic Organizational Change and Strategic Organizational Learning.

Knowledge Leadership: Two separate but related questions. In your opinion, what is the most effective process by which to formulate an appropriate strategy? Also, who must be centrally involved in that process?

Beitler: The most effective approach to formulating an appropriate strategy is outside-in. While most strategic planning approaches include some form of SWOT (strengths, weaknesses, opportunities, threats) analysis, the starting point is critical. The process must begin with an external analysis (opportunities and threats). The internal factors (strengths and weaknesses) are only relevant in relation to the externals (opportunities and threats).
In my book, “Strategic Organizational Change,” I describe several strategic planning approaches, including a few of the “new” non-traditional approaches. The problem with the non-traditional approaches is their attempt to diffuse responsibility for the process throughout the organization. Senior management is responsible for formulating an appropriate strategy. Senior management must be involved and committed to the process.

Knowledge Leadership: In your most recent books, you assert that both learning and change must be “strategic.” Sounds like you are an advocate of action learning. Is that true?

Beitler: Yes, I am an advocate of action learning. And yes, I believe both learning and change must be strategic. Organizations have limited resources (time, energy, and money). These limited resources must be invested in the most effective ways possible to implement the strategic plan. Action learning provides the mental model for formulating and implementing the strategic plan.

Knowledge Leadership: One subject to which you have devoted a great deal of attention is resistance to change. For example, what Jim O’Toole characterizes as "the ideology of comfort and the tyranny of custom." How to overcome such barriers?

Beitler: In a recent television interview, I was asked, “Why is there so much resistance to change in organizations today?” I responded, “People are busy. They have to see how the proposed change is relevant.” In my keynote speeches on overcoming resistance to change, I exhort leaders to identify the perceived fear of loss. Proposed changes always bring a perceived loss of some sort. Perceived irrelevancy and/or perceived fear of loss are the causes of resistance to change. O’Toole speaks of the “tyranny of custom.” He is right, but don’t forget that custom also offers a sense of security.

Knowledge Leadership: What are the most important responsibilities of a consultant?

Beitler: The most important responsibility of the consultant is to bring value to the table. On my website (www.YourConsultingSuccess.com) every special report and article says something about the importance of adding value. The consultant adds value (and is paid more) when he/she fulfills the role of a strategic partner. The consultant must ask the right questions, the timely questions, and the tough questions. Every consultant should learn process consulting and performance consulting skills.

Knowledge Leadership: Given your response to the previous question, to what extent can – and should – senior managers share those responsibilities? That is, think and function as a consultant?

Beitler: That’s a great question. I wish I were asked that question more often. Senior managers are frequently in a consultative role. Senior management development should include training in process consulting and performance consulting skills.

Knowledge Leadership: Many of the most valuable business books are written in response to an especially important question. Is that true of Strategic Organizational Change?

Beitler: “Strategic Organizational Change” was written in response to the question: How can organizations systematically formulate and implement effective change? The answer is to propose, formulate, and implement only those change efforts that will help fulfill the mission and strategic plan of the organization. All other changes are irrelevant and a waste of limited resources (time, energy, and money).

Knowledge Leadership: To what extent is Strategic Organizational Learning a sequel to your earlier book? How does it differ from Strategic Organizational Change?

Beitler: Rather than as a sequel to “Strategic Organizational Change,” I wrote “Strategic Organizational Learning” to provide detailed guidance on how to implement organizational learning interventions. Since the scope of “Strategic Organizational Change” was so broad, only one chapter could be devoted to organizational learning interventions. In the twenty-first century, many organizations are described as knowledge-driven. Effective organizational learning is now a critical core competency for most leading organizations. Keep in mind, organizational change always requires new learning.

Knowledge Leadership: In an article, which appeared in the Harvard Business Review in 1963, Peter Drucker observes, "There is surely nothing quite so useless as doing with great efficiency what should not be done at all." Presumably you agree.

Beitler: I am a big fan of Peter Drucker, and this is perhaps my favorite Drucker quote. Drucker is emphasizing the importance of the “why” question. I have seen countless organizations prematurely working on the “how.” Until the organizational members know why they are doing something, it is a waste of limited resources to focus on how to do that something with great efficiency. “Why” should be answered before “how.”

Knowledge Leadership: Assume that an organization has an appropriate strategy. From your perspective, how to establish and then sustain proper alignment of action and learning with each other as well as with that strategy?

Beitler: I am glad you used the word “alignment.” Once an appropriate strategic plan has been adopted, all other organizational activities should be aligned with it. All action, learning, and change should have a strategic purpose. This is the only effective way to invest limited resources.

Knowledge Leadership: You began your business career about 30 years ago. What do you wish you knew then that you know now? Why?

Beitler: When I went through business school 30 years ago, I wish I had been told about the importance of bringing value to the table. All of us business students wanted to be successful, but we didn’t understand how to earn the big bucks. We didn’t understand that employers and clients wanted value for the money they spent. I now tell my students, “If you want to make more money, bring more value to the table. Think creatively. Solve problems. Add value!”

Knowledge Leadership: Looking ahead 3-5 years, what do you expect to be the greatest single challenge facing senior-level managers? What must they do to respond effectively to that challenge?

Beitler: Over the next three to five years, the greatest single challenge facing senior managers will be attracting, developing, and retaining talented workers. Senior management must learn how to assess and develop talented individuals. Unfortunately, most MBA programs do not provide these critical skills. Acquiring these skills will be the topic of my next book.

For more information about Mike's books, speaking, and workshops please visit his website at www.MikeBeitler.com