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Working Paper Series 2017/64/EFE Working Paper Series 2017/64/EFE A Tale of Two Organizations: Creating the Authentizotic Organization Manfred F. R. Kets de Vries INSEAD, [email protected] Starting with an example of organizational “hell” and “heaven”, this article describes the authentizotic organization, the kind where people find meaning in, and are captivated by, their work. These organizations have C4 in their DNA: its participants engage in courageous conversations embedded within a coaching culture. The foundation for developing authentizotic organizations is trust. Trusted executives make a great effort to establish an organizational culture in which people feel safe and are comfortable in having voice and using it. I introduce an intervention methodology that incorporates the clinical paradigm, the psychodynamic- systemic lens that provides insight into people’s inner theater and underlying motivations. By incorporating these psychodynamic processes, key developmental areas can be identified that may block the creation of authentizotic organizations. Multi-party feedback instruments can be used to illuminate the gap between self-perception and the perceptions of others. I suggest that a safe transitional space needs to be created that enables people “to play” and discuss the organization’s “undiscussables.” Another helpful intervention is to have the organization’s key players engage in illuminative cathartic experiences through narrative. This can help create a mutually supportive organizational community and an organizational culture in which people give their best. Key words: Authentizotic organization; best place to work; clinical paradigm; trust; multi-party feedback systems; transitional space; narrative. Electronic copy available at: http://ssrn.com/abstract=3045179 A Working Paper is the author’s intellectual property. It is intended as a means to promote research to interested readers. Its content should not be copied or hosted on any server without written permission from [email protected] Find more INSEAD papers at https://www.insead.edu/faculty-research/research If you want to build a high performance organization, you’ve got to play chess, not checkers.—Mark Miller There’s no magic formula for a great company culture. The key is just to treat your staff how you would like to be treated.—Richard Branson Introduction The CEO of XYZ Corporation was known as a suspicious control freak. He had placed a number of so-called “internal consultants” on his payroll to keep him informed of the goings-on in the organization. Some people described the work environment as a Darwinian “soup” in which everyone was out for themselves. Information was power, secrecy was the norm, transparency was absent, and teamwork was non-existent. The company’s paranoid culture was perhaps best illustrated by the fact that the CEO had forced all of his top managers to pre-sign resignation letters. Executives could be fired on the spot for the slightest transgression. Many of the people who worked there knew of colleagues who had been fired by email. The CEO underpaid everyone who worked for him, except himself. Furthermore, he expected all of them to be on call, any time, any day of the week, weekends included. At meetings, he frequently subjected his executives to abusive, even profane tirades. During these public humiliation sessions, he made it quite clear that all the successes in the organization were entirely due to his efforts. If all that wasn’t enough, he was also notorious for his numerous affairs with his assistants. Everyone knew that refusing his advances marked the end of that person’s career. 1 This toxic work environment was eventually ended by a legal challenge from one of the company’s major institutional investors, coupled with negative media coverage. Following investigation by the authorities, the CEO served time in prison for draining money out of the company for personal use, behavior that brought the company to the brink of bankruptcy. The ZYX Corporation was a complete contrast. Here, great efforts were made to ensure that everyone in the organization was aligned behind its values, mission, and vision, that they were all on the same page, and that they were committed to working toward common goals. The company was considered a great place to work, and most hiring was done by word-of-mouth. Employee turnover was very low. Because of the attention paid to selection and people development, dismissal from the company was seen as a last resort. The company’s employees were proud of its culture, which offered mutual support, promoted trust, and provided them with meaning. Fair process was a given in all the company’s dealings. Not only were people paid decently, but they were also given excellent benefits. Furthermore, top management emphasized the importance of a team-working, coaching-oriented, people-centric culture. Collaboration, transparency, feedback, and information sharing were essential elements of the organization’s values. The company’s leadership encouraged everyone to have voice and to feel safe to speak up at meetings. They encouraged people to come up with new ideas and to fail forward by taking risks. The company’s pledge to enable organizational members to establish a good work-life 2 balance was not merely lip service; a good work-life balance was viewed as a critical factor in maintaining a committed and productive workforce. Finally, the company acted as a responsible corporate citizen to the community and the world at large. The Authentizotic Organization These two organizational profiles juxtapose the potential heaven and hell of organizational life, work environments that can range from awful to awesome. Much has been written on this subject but not much on how to get there. For many executives the million-dollar question is still how to create high-performing organizations that are also considered best places to work? Although a slew of management books offer various formulas for achieving this, the fact that these books continue to be published suggests that their miraculous “cures” are not working out too well (Beer, 2009; De Waal, 2012; Hesselbein and Johnston, 2002; Holbech, 2005; Kotter, 2012; Lawler and Worley, 2006; Martin, 2012; Tomlinson and Kierson, 2016; Ulrich, Huselid and Becker, 2001). Thus, at the risk of joining their number, I would like to make a few suggestions about how to create high- performing organizations that can be counted among best places to work. I call these organizations “authentizotic,” a term I coined from two Greek words, authentikos and zootikos, to identify the essential quality that makes them succeed. Applied to the workplace, authentikos implies that the organization has a compelling, genuine, authentic quality. It means that the organization’s leadership has communicated clearly and convincingly not only the hows but also the whys of why people work, 3 embedding meaning in all its employees’ tasks and activities. It also refers to self- assertion in the workplace, creating a sense of effectiveness, competency, autonomy, initiative, and creativity. The term zootikos means “vital to life.” In an organizational context, it describes the way in which people are invigorated by their work and experience a sense of balance, commitment and completeness. In such organizations, the human need for exploration—closely associated with cognition and learning—is met (Kets de Vries, 2001; Kets de Vries and Balazs, 1999). Authentizotic organizations also create the space for what I call C4. The four Cs describe work environments where people are encouraged to engage in courageous conversations embedded within a coaching culture. This sounds neat but in fact creating the conditions for these authentizotic organizations to develop and thrive can be an uphill struggle, because it requires us to overcome deeply rooted psychological resistance (Hirschhorn, 1990; Kets de Vries and Miller, 1984). Regression leads to inauthenticity The first essential step to creating authentizotic organizations is for people to have the courage to speak their mind. This is easier said than done. From a group dynamics point of view, we have to fight our tendency to idealize our leaders and view people in positions of power and authority as very special. This propensity is deeply embedded in the human psyche and can be explained in terms of our evolutionary and developmental psychology (Kets de Vries, 2006). 4 From an evolutionary perspective, its origins may lie in the programming that ensured survival during the early days of Homo sapiens. Our Paleolithic forebears may have acquired an inbuilt tendency to submit themselves to the dominance of the leader of the tribe, particularly when faced with danger. Our disposition to regress into a dependency position surfaces rapidly in situations that evoke the kinds of experiences we had in infancy (Bion, 1998)—when we were small and relatively helpless, we were great believers in our parents’ all-powerfulness and omniscience. These reactions are understandable; in the process of becoming an individual we identify with those whose competence we admire. This is a psychological dynamic in normal human development that we should have outgrown in adulthood. However, in crisis situations—when we are stressed or threatened—very little is needed to make us regress to almost innate patterns of dependency on strong people to guide us. In organizational life, this tendency to regress makes us behave inauthentically. Dependency reactions are ever-present (Bion, 1998). The need to voice critical opinion is overruled by the need to please. Mitigating these regressive patterns necessitates a considerable amount of psychological homework. Developing trust The obvious formula for having people speak their mind is trust. Trust is the glue that holds all relationships together. Most good relationships are built on trust and mutual respect. It’s the basic ingredient if we want to create authentizotic organizations. But 5 it takes time to create trust. It develops one day, one interaction, at a time (Katzenbach and Smith, 2015; Kets de Vries, 2008; Kets de Vries et al., 2016).
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