Wharton Career Advisor
 Fighting the Pull of Bureaucracy and Politics

A chief investment officer who is responsible for investment strategies for institutional investors, wrote with the following challenge:

I have a large team of investment professionals reporting to me for the purpose of delivering high-quality investment strategies to the institutional investor community. My charge is to leverage my company's heritage of product innovation to change the market landscape and evolve it away from relying upon and applying traditional solutions to complex needs that demand unconventional portfolio constructs. In other words, through investment ingenuity and my influence with large pools of assets, I have the ability to change the financial fate of many institutions and, therefore, the lives of millions of Americans for the better in meeting their life goals. I love the subject and have a rich background in this area.

However, I am growing increasingly frustrated with the bureaucracy inherent in my company. As I have assumed a senior position in the company, I feel that my productivity has been drained and my focus has been increasingly drawn away from creating product and delivering value to the marketplace. Most of my time is spent trying to resolve political issues, appeasing internal constituents who feel that we may be compromising their space, and engaging in bureaucratic exercises. While I love what I do as well as the team I work with, I want to make a difference in the world and the industry and feel like I cannot institute change in my company to help achieve that goal. I want to continue to build a presence in the market and advance my career but feel constrained (political infighting, bureaucracy, etc.), and, as such, I hesitate to advance in the company if that means spending even more time on unproductive issues instead of making a meaningful contribution to our business and, most importantly, our clients.

What can I do?

Peter Cappelli
George W. Taylor Professor of Management
Director, Center for Human Resources

The place to begin is to put the problem in some perspective. Getting organizations to change and adapt, especially large ones, is hard work. But the payoff is huge: A small change implemented across a large organization can have enormous effects. It helps to focus not on the particular change you have in mind, which can often sound trivial, but to think instead about the benefits of the new arrangements. What you are trying to do likely is very important.

The second issue is to recognize why change is difficult. Your new idea may be better in lots of ways, typically for clients and customers, but there are always people inside the organization who have a stake in the old arrangements. And there are some people whose lives are actually made worse by the change, especially through the transition. Most new ideas also have unintended consequences that employees down the line — and closer to the action — can often see sooner than their bosses. So it is important to understand why there is resistance to the changes you are trying to introduce by seeing the situation from the perspective of those who are resisting. Ask them. Another simple principle is that people are much more committed to projects for which they feel responsible. How much more cooperation would you get if your people were working on something that they at least played a role in shaping or something for which they get credit?

Because change is difficult to achieve, it represents the most important work that senior managers can do. There is no shortage of good ideas. The hard part is getting any of them implemented. Many studies are now suggesting that effective implementation may be just as or more important than having the right strategies for organizational success. It is difficult to avoid having to manage change if one wants to be in the ranks of senior management.

The final point is to recognize that managing change is a skill like any other that is possible to learn. Several Wharton executive education programs offer an opportunity to explore these issues and build skills in these areas, including Leading in Times of Turbulence and Change and Implementing Strategy. When we don't truly understand what we're doing, any task can be frustrating. But when we understand the problem and know how to handle it, the same tasks can be rewarding and even fun.

Monica McGrath
Executive Coach and Wharton Adjunct Associate Professor of Management
Faculty Associate, Center for Leadership and Change Management

It sounds as if you have a compelling vision and a concomitant passion to see this vision through. But, as you have already discovered, you simply cannot do it alone.

Before you decide to move on, take the time to consider how you arrived at this impasse. At the very least, an action review will help you become aware of the lessons embedded in this experience. To increase the likelihood of learning from this frustrating experience, you should assess the current situation and your role in it, build an action strategy based on the insights you gain, ask for input from others and try another approach.

Start with an assessment of your actions, assumptions, behaviors, and results. If you do an honest evaluation and are willing to ask yourself some difficult questions, you will have a better sense of how effective you have been as an advocate for your mandate. Try answering questions like these: Am I really clear about the vision and the impact of this change on others? How am I communicating with those who will be affected by the change? Am I too invested in doing things my way? Do others feel they have had a fair hearing about this change effort? Steer clear of the blame game for the moment, and think only about your own role.

Once you have some insight, you should create a new plan to advocate for this change. Often corporate executives will spend all night preparing the numbers, the PowerPoint presentation, and the speech but will spend no time thinking about and planning for how the people might react to their ideas. Leaders need to motivate, listen, explain, understand concerns, address issues, and build a strong foundation and commitment for change; and they may need to do this over and over again. Eventually people begin to accept and trust the change.

After you have spent some time revisiting your stakeholder group, ask for feedback from a trusted coach or advisor. Don't rely solely on your own perspective, since many executives have a tendency to overrate their effectiveness. Find someone you trust, someone who understands what you are trying to accomplish and who would be honest and direct with you. Ask for his or her perspective on your people strategy, and do try to listen. You don't need to always agree with feedback, but you do need to listen.

The most important leadership lessons are learned in the heat of the moment when failure is an option. And, implementing a broad mandate for change is just such an assignment. Reflect on the past, create a new influence strategy, and evaluate your progress, and you might have a basis for overcoming your frustrations and resentments and a fresh perspective.

You will always need to navigate the politics of an organization to bring great ideas to implementation. And, although you may ultimately decide this particular organization is not for you, I hope you don't give in until you are sure you have completely integrated the learning and added new skills to your leadership approach.

I also suggest you look into taking some courses to increase emotional intelligence and advocacy skills: Advanced Management Program and Leadership Ventures.

Mike Norman
Principal, Sibson Consulting (HR specialists)

Welcome to senior management! You have quickly discovered that the game has changed significantly from your previous roles. This new position undoubtedly places a premium on leadership, (e.g., dealing with adversity, influencing an engrained bureaucracy, and building commitment for change). How a leader views a challenge will determine his/her actions going forward. If you see opportunity, it will become one. If you see an untenable problem, it will remain one. Your mindset is a key determinate of your overall leadership effectiveness. The lens you look through is a matter of personal choice.

Assuming you view the situation as an opportunity, one strategy is to attack the issues head-on. Some leaders do this by becoming a visible "champion" of change. Taking this route often requires an unyielding tenacity to continuously question/challenge the status quo. Having a clear picture of a better, more efficient future and continuously articulating it in terms of value to all stakeholders involved is key. Your mantra should be "anticipate, create, and renew." Unfortunately, this strategy can also be exhausting if you don't carefully pick your battles or prepare yourself for a long, unpopular, but necessary siege. You're no doubt familiar with the phrase: "It's lonely at the top?" Instead of trying to go it alone, look for other "like thinkers" with whom to form a broader coalition for change.

Another strategy is to set bonfires. This requires focusing just on those problems/issues over which you have direct control. Create a small beta site within your own organization populated with people who are capable of thinking outside the box. Give them free reign to come up with a creative solution, and implement it on a small scale. Measure its business impact in quantifiable terms. Once you have refined the solution, take it to the larger organization along with its business case. It will be very difficult for detractors to argue with a proven success. Let results do your talking!

 

    

This month's articles:

  • Advanced Management Program
    Successful leadership may be less about a set of characteristics than a capacity for relationship.

  • Custom Programs
    Leaders of Wharton's NASD Institute examine the complexities of insider trading regulations.

  • Wharton Fellows
    Top media executives examine shifts in technology and other innovations.

  • Wharton Career Advisor
    Expert advisors offer insights on dealing with politics and bureaucracy.

  • Education à la Carte
    To lead effectively, you have to see the big picture. Upcoming programs can offer fresh perspectives.